11th Circuit Denies Consumers' Research USF Challenge

The FCC didn't violate the nondelegation doctrine through its use of the Universal Service Administrative Co. to calculate quarterly USF contribution factors and administer USF programs, a federal court ruled Thursday. In denying Consumers' Research's challenge of the FCC contribution factor (see 2306220062), the 11th Circuit U.S. Court of Appeals noted that "all USAC action is subordinate to the FCC, and the FCC retains ultimate decision-making power."

The court also said that Congress "laid out the principles the FCC must follow in bringing universal service to our nation" under Communications Act Section 254, which "provides an intelligible principle and therefore passes constitutional muster." Judge Charles Wilson wrote the opinion; Judges Kevin Newsom and Barbara Lagoa concurred. Consumers' Research and the FCC didn't immediately comment.