Consumers' Research Goes to Court on Q4 USF Factor
The USF Q4 contribution factor is “illegal and should be rejected,” said Consumers' Research as it asked the 6th U.S. Circuit Court of Appeals to vacate the FCC approval (see 2109100069), said a petition in its challenge (both in Pacer,…
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No. 21-3886). The approval “exceeds the FCC’s statutory authority,” the group said. Congress' "standardless delegation" to the FCC to raise and spend money for USF violated the Constitution because "the revenues raised ... are taxes," it said. The group said the Universal Service Administrative Co., which administers USF programs, is a private company and the appointment of its board directors by the FCC chair violates the Constitution's appointments clause if it's determined that USAC isn't a private entity. The group also said the FCC failed to comply with the Administrative Procedure Act's rulemaking and Federal Register Act's publication requirements. The agency didn’t comment.