Consumers’ Research v. Federal Communications Commission
United States Court of Appeals for the Fifth Circuit
109 F.4th 743 (2024)
- Written by Jamie Milne, JD
Facts
The Telecommunications Act of 1996 (act) established the Universal Service Fund (USF) to promote the provision of universal telecommunications service across the nation. The USF was to be administered by the Federal Communications Commission (FCC) (defendant), an executive-branch agency, and funded by contributions from telecommunication-service providers. The act effectively delegated to the FCC the power to impose a tax. The FCC subdelegated that authority to the Universal Service Administrative Company (USAC), a private company managed by parties with an interest in universal service programs. The USAC determined the total USF contribution amount and each service provider’s proportional share. Although the FCC technically oversaw the USAC’s determinations, the FCC routinely accepted the determinations without any significant review. Between 1995 and 2021, the total USF contribution amount increased from approximately $1.37 billion to over $9 billion. The charges to consumers increased accordingly. Consumers’ Research and others (plaintiffs) sued the FCC, arguing that the USF tax was unconstitutional because the USF contribution system constituted an improper delegation of legislative taxation power.
Rule of Law
Issue
Holding and Reasoning (Oldham, J.)
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