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96 Cal. Daily Op. Serv. 671, 96 Daily Journal D.A.R. 1017 the People of the State of California Public Utilities Commission of the State of California Pennsylvania Public Utility Commission ("Papuc") Southern California Coalition on Battered Women Toward Utility Rate Normalization ("Turn") Consumer Federation of America Consumer Action the National Association of Social Workers ("Nasw") the California Alliance Against Domestic Violence the Family Violence Prevention Fund Petitioners-Intervenors v. Federal Communications Commission United States of America Us West Communications MCI Telecommunications Corporation Ad Hoc Telecommunications Users Committee ("Committee") at & T Corporation the National Association of Regulatory Utility Commissioners National Association of Consumer Advocates (Nasuca), Ameritech Operating Companies Southwestern Bell Telephone Company Pacific Bell United States Telephone Association (Usta) Bellsouth Corporation Respondents-Intervenors. The People of the State of California Public U

Citation: 75 F.3d 1350Docket: 95-70519

Court: Court of Appeals for the Ninth Circuit; January 30, 1996; Federal Appellate Court

Narrative Opinion Summary

The case involves multiple petitioners, including the State of California and the Public Utilities Commission of California (CPUC), challenging the Federal Communications Commission (FCC) over telecommunications regulations affecting vulnerable groups. The Ninth Circuit Court of Appeals reviewed the FCC's orders concerning Caller ID services and the free passage rule for Common Channel Signalling System 7 (SS7). The FCC's preemption of CPUC's regulations mandating per line blocking for nonpublished numbers was upheld, as it aligned with federal objectives to enhance interstate calling party number (CPN) services. The court found that the FCC's rule did not infringe on constitutional privacy rights or violate the First Amendment, as the disclosure of telephone numbers through Caller ID does not constitute a privacy invasion. Additionally, the FCC's free passage rule, which prohibits carriers from charging for CPN transmission over SS7, was supported by substantial evidence and found compliant with the Administrative Procedure Act. The FCC's actions were deemed a valid exercise of its rulemaking authority under sections 154(i) and (j) of the Communications Act. The court denied the petitions for review, affirming the FCC's regulatory approach to balancing consumer service availability with privacy interests.

Legal Issues Addressed

Administrative Procedure Act and Free Passage Rule

Application: The FCC's free passage rule was upheld as the FCC's decision was not arbitrary or capricious, having considered relevant factors and supported by substantial evidence.

Reasoning: Regarding the FCC's Free Passage Rule, AT&T and CompTel argue that it is arbitrary, capricious, and violates the Administrative Procedure Act (APA)...The FCC's findings indicate it did consider the potential revenue loss from unanswered calls and concluded that Caller ID could actually increase the number of answered calls.

Constitutional Privacy Rights and Caller ID

Application: The FCC's preemption does not infringe on the constitutional privacy rights of California citizens, as the disclosure of telephone numbers does not raise privacy concerns under the Fourth Amendment.

Reasoning: The FCC's preemption of the CPUC's per line blocking default does not infringe on the constitutional privacy rights of California citizens. The CPUC has failed to provide legal authority supporting the claim that a telephone number is constitutionally protected.

FCC's Rulemaking Authority under the Communications Act

Application: The FCC's use of rulemaking authority under sections 154(i) and (j) of the Communications Act is justified, as it aligns with federal policy objectives and does not constitute ratemaking under section 205.

Reasoning: The FCC counters that its actions were rulemaking under sections 154(i) and (j), not ratemaking under section 205. The FCC's interpretation of statutory provisions is granted considerable deference.

First Amendment Rights and Caller ID Disclosure

Application: The FCC's order does not violate First Amendment rights to anonymity, as it does not compel identity disclosure for free expression.

Reasoning: The Commission's preemption order does not infringe on the First Amendment right to speak anonymously.

Preemption of State Regulations under Communications Act

Application: The FCC's preemption of California's CPUC regulations regarding per line blocking is justified to uphold federal objectives for interstate CPN-based services.

Reasoning: The FCC justifies its decision to preempt the CPUC's default policy of per line blocking for intrastate calls, arguing that this policy obstructs federal objectives for interstate calling party number (CPN)-based services.