## Facts

- The Federal Communications Commission (FCC), acting through its Enforcement Bureau, investigated SBC Communications, Inc. for possible discriminatory conduct under the Communications Act of 1934.
- The Enforcement Bureau issued SBC a letter of inquiry (LOI) seeking information relevant to the investigation.
- SBC submitted written responses to the LOI.
- The Bureau directed SBC to provide sworn verification attesting to the truth and accuracy of its LOI responses.
- SBC refused to provide the requested sworn verification.
- The Bureau issued a Notice of Apparent Liability for Forfeiture proposing a $100,000 forfeiture for SBC’s failure to comply with the verification demand.
- SBC sought Commission-level review challenging the forfeiture and the Bureau’s authority to require sworn verification.

## Issues

1. Whether the FCC may require a carrier to provide sworn verification of the truth and accuracy of responses submitted to an Enforcement Bureau LOI during an investigation under the Communications Act of 1934.
2. Whether SBC’s refusal to provide sworn verification constituted a willful or repeated violation warranting a $100,000 forfeiture.

## Decision

- The Commission concluded that the FCC has authority to require sworn verification of information provided in response to an LOI in a Communications Act investigation.
- The Commission determined that SBC’s refusal to provide the ordered verification constituted a violation subject to forfeiture.
- The Commission upheld the proposed $100,000 forfeiture.

## Legal Principles

- The FCC’s investigatory authority permits it to demand complete and reliable information from regulated carriers, including sworn verification of LOI responses when ordered.
- Regulated carriers have a duty to cooperate with FCC investigations by complying with lawful information demands; refusal to verify responses may be treated as noncompliance independent of the underlying suspected misconduct.
- The FCC may impose forfeitures for willful or repeated failure to comply with the Communications Act or Commission orders, including orders issued in connection with an investigation.

## Conclusion

The FCC held that carriers must comply with Enforcement Bureau LOIs and may be required to verify responses under oath; refusal to provide sworn verification supports a monetary forfeiture, which the Commission sustained at $100,000 for SBC’s noncompliance.


In re SBC Communications, Inc., 17 F.C.C.R. 7589 (2002)