Remarks of FCC Commissioner O'Rielly at Federal Communications Bar Association

I am before you today to discuss the state of the Federal Communications Commission enforcement. My central premise is that the FCC's overall approach to enforcement has gone astray over the last many months. In fact, let me go a step further to report that it has entered a territory that can only be described as dangerously misguided...The Commission seems more intent on obtaining newspaper headlines trumpeting accusations and eye-popping fines. In other words, self-aggrandizing fanfare is a major objective and often appears to be more important than case foundation, correcting the violation or establishing a reasonable deterrent.

I recently heard from a couple of parties that were potentially subject to enforcement actions. Having the good sense to try to discuss their issues with the Enforcement Bureau, each was told that any potential settlement would generate a penalty in the multiple-hundreds of millions or billions and require an admission of guilt. To make the situation more outrageous, the Bureau indicated that there was little room to negotiate; it was a take it or leave it offer rather than the beginning of a process to come to a settlement position. Suffice it to say, no agreements were reached in these circumstances.