Axon Enterprise, Inc. v. FTC

The Supreme Court decided that companies may bring constitutional challenges to the FTC's or SEC's structure or existence directly in federal district court. They do not have to wait until the agencies finish their administrative proceedings.

The Court ruled 9-0 in an opinion by Justice Elena Kagan. Justices Clarence Thomas and Neil Gorsuch each wrote concurrences; there were no dissents.

Majority

Kagan

Roberts

Thomas

Alito

Sotomayor

Kavanaugh

Barrett

Jackson

Gorsuch

“The review schemes do not displace district courts' federal-question jurisdiction over claims challenging the structure or existence of the SEC or FTC as unconstitutional.”

Businesses facing an FTC or SEC case can seek earlier court review of claims that an agency's structure is unconstitutional. For example, a company challenging FTC removal protections may file in district court while the agency case is pending.

The Ninth Circuit's judgment in Axon's case was reversed and remanded, and the lower courts must proceed consistently with the Supreme Court's decision. Parties facing FTC or SEC proceedings may pursue qualifying constitutional claims in district court.

The Court said district courts can hear constitutional challenges to the FTC's or SEC's structure or existence before agency proceedings are finished.

Companies and others facing FTC or SEC administrative cases may seek early federal-court review of qualifying constitutional claims.

The case returns to the lower courts for further proceedings consistent with the Supreme Court's decision. Axon's constitutional claims can proceed in district court.