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24-3133; 24-3206; 24-3252•Texas Association of Business (24-3206) v. Federal Communications Commission; United States of America
24-3133; 24-3206; 24-3252Court of Appeals for the Sixth CircuitAug 13, 2025
RECOMMENDED FOR PUBLICATION
Pursuant to Sixth Circuit I.O.P. 32.1(b)
File Name: 25a0224p.06
UNITED STATES COURT OF APPEALS
FOR THE SIXTH CIRCUIT
OHIO TELECOM ASSOCIATION (24-3133); TEXAS
ASSOCIATION OF BUSINESS (24-3206); CTIA–THE
WIRELESS ASSOCIATION, NCTA–THE INTERNET &
TELEVISION ASSOCIATION, and USTELECOM–THE
BROADBAND ASSOCIATION (24-3252),
Petitioners,
HAMILTON RELAY, INC.,
Intervenor,
v.
FEDERAL COMMUNICATIONS COMMISSION; UNITED
STATES OF AMERICA,
Respondents.
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Nos. 24-3133/3206/3252
On Petition for Review from the Federal Communications Commission.
No. 23-111.
Argued: December 12, 2024
Decided and Filed: August 13, 2025
Before: GRIFFIN, STRANCH, and MATHIS, Circuit Judges.
_________________
COUNSEL
ARGUED: Roman Martinez, LATHAM & WATKINS, LLP, Washington, D.C., for
Petitioners. Adam Sorensen, FEDERAL COMMUNICATIONS COMMISSION, Washington,
D.C., for Respondents. ON BRIEF: Roman Martinez, Matthew A. Brill, Matthew T.
Murchison, Charles S. Dameron, Christina R. Gay, LATHAM & WATKINS, LLP, Washington,
D.C., for Petitioners. Adam Sorensen, Sarah E. Citrin, Jacob M. Lewis, FEDERAL
COMMUNICATIONS COMMISSION, Washington, D.C., for Respondents. Jennifer Tatel,
WILKINSON BARKER KNAUER, LLP, Washington, D.C., for Intervenor. John Anderson
>
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Jung, TECHFREEDOM, Washington, D.C., Trent McCotter, GEORGE MASON
UNIVERSITY, Arlington, Virginia, Craig E. Gilmore, WILKINSON BARKER KNAUER,
LLP, Washington, D.C., Alan Butler, ELECTRONIC PRIVACY INFORMATION CENTER,
Washington, D.C., for Amici Curiae.
STRANCH, J., delivered the opinion of the court in which MATHIS, J., concurred, and
GRIFFIN, J., concurred in part. GRIFFIN, J. (pp. 36–51), delivered a separate dissenting
opinion.
_________________
OPINION
_________________
JANE B. STRANCH, Circuit Judge. These consolidated petitions for review challenge a
rule of the Federal Communications Commission imposing reporting requirements on
telecommunications carriers in the event of data breaches involving customers’ personally
identifiable information. Petitioners contend that the reporting requirements exceed the
Commission’s statutory authority and violate the Congressional Review Act. For the reasons set
forth below, we DENY the petitions for review.
I. BACKGROUND
A. Statutory Background
In 1934, Congress passed the Communications Act, which granted the Federal
Communications Commission (FCC or the Commission) “broad authority to regulate interstate
telephone communications.” Glob. Crossing Telecomms., Inc. v. Metrophones Telecomms., Inc.,
550 U.S. 45, 48 (2007). “The Commission, during the first several decades of its history, used
this authority to develop a traditional regulatory system much like the systems other
commissions had applied when regulating railroads, public utilities, and other common carriers.”
Id.
Among the provisions of the 1934 Act was 47 U.S.C. § 201(b), which provides that “[a]ll
charges, practices, classifications, and regulations for and in connection with [a carrier’s]
communication service, shall be just and reasonable, and any such charge, practice,
classification, or regulation that is unjust or unreasonable is declared to be unlawful.” 47 U.S.C.
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§ 201(b). Section 201(b) also authorizes the Commission to “prescribe such rules and
regulations as may be necessary” to carry out that prohibition. Id.; see Glob. Crossing, 550 U.S.
at 53.
Decades later, the Americans with Disabilities Act of 1990 added a new provision to the
Communications Act—Section 225—which charged the FCC with ensuring the availability of
“telecommunications relay services” (TRS) for hearing-impaired and speech-impaired
individuals. Pub. L. No. 101-336, 104 Stat. 327, 366 (codified at 47 U.S.C. § 225). Section 225
defines TRS as:
telephone transmission services that provide the ability for an individual who is
deaf, hard of hearing, deaf-blind, or who has a speech disability to engage in
communication by wire or radio with one or more individuals, in a manner that is
functionally equivalent to the ability of a hearing individual who does not have a
speech disability to communicate using voice communication services by wire or
radio.
47 U.S.C. § 225(a)(3).
In 1996, Congress enacted extensive updates to the 1934 Act with the
Telecommunications Act, Pub. L. No. 104-104, 110 Stat. 56, which sought to “foster industry
competition in local markets, encourage the development of telecommunications technology, and
provide consumers with affordable access to telecommunications services.” Robbins v. New
Cingular Wireless PCS, LLC, 854 F.3d 315, 319 (6th Cir. 2017). The Telecommunications Act
created a new statutory provision, 47 U.S.C. § 222, titled “Privacy of customer information.”
110 Stat. at 148-49.
Section 222(a) sets forth a general duty requiring all telecommunications carriers to
“protect the confidentiality of proprietary information of, and relating to, other
telecommunication carriers, equipment manufacturers, and customers.” 47 U.S.C. § 222(a). The
statute goes on to enumerate various requirements (and exceptions to those requirements)
regarding specific categories of information. Among these categories of protected information is
“customer proprietary network information” (CPNI), defined as:
(A) information that relates to the quantity, technical configuration, type,
destination, location, and amount of use of a telecommunications service
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subscribed to by any customer of a telecommunications carrier, and that is made
available to the carrier by the customer solely by virtue of the carrier-customer
relationship; and
(B) information contained in the bills pertaining to telephone exchange service or
telephone toll service received by a customer of a carrier.
47 U.S.C. § 222(h)(1). Section 222(c) imposes specific privacy and disclosure requirements on
carriers regarding CPNI and aggregate customer information (defined as “collective data that
relates to a group or category of services or customers”), id. § 222(c), (h)(2), while Section
222(d) delineates various exceptions to these restrictions—permitting carriers to disclose CPNI,
for example, when billing for services and in emergency situations, id. § 222(d). Section 222(e)
requires carriers to disclose “subscriber list information”—defined as “listed names of
subscribers of a carrier and such subscribers’ telephone numbers, addresses, or primary
advertising classifications,” id. § 222(h)(3)—“upon request for the purpose of publishing
directories in any format.” Id. § 222(e). And Section 222(g) requires carriers to provide
subscriber list information to first responders in emergency situations. Id. § 222(g).
B. Regulatory Background
In 1998, the FCC issued its first rules implementing § 222 of the Telecommunications
Act. Implementation of the Telecomms. Act of 1996: Telecomms. Carriers’ Use of Customer
Proprietary Network Info. & Other Customer Info., 13 FCC Rcd. 8061 (1998) (1998 Order).
These rules extensively regulated carrier use and disclosure of CPNI, imposing, among other
things, recordkeeping obligations regarding CPNI and supervisory review processes to monitor
compliance with CPNI restrictions. Id. at 8198-99. The 1998 Order explained that “Section 222
establishes a new statutory framework governing carrier use and disclosure of customer
proprietary network information (CPNI) and other customer information obtained by carriers in
their provision of telecommunications services.” Id. at 8064. And it further noted that “Section
222 sets forth three categories of customer information to which different privacy protections
and carrier obligations apply -- individually identifiable CPNI, aggregate customer information,
and subscriber list information.” Id.
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In 2007, in response to the rising incidents of data brokers obtaining unauthorized access
to CPNI, the FCC promulgated a new rule “adopting additional safeguards to protect customers’
CPNI against unauthorized access and disclosure.” Implementation of the Telecomms. Act of
1996: Telecomms. Carriers’ Use of Customer Proprietary Network Info. & Other Customer
Info., 22 FCC Rcd. 6927, 6928 (2007) (2007 Order). Among other things, the 2007 Order
required carriers to notify law enforcement and customers in the event of a CPNI breach and
established specific protocols governing the notification process. Id. at 6929-30, 6943-45. The
FCC explained that its “general rulemaking authority under the [Communications] Act”
conferred by § 201(b), in conjunction with § 222(a)’s requirement that all telecommunications
carriers “protect the confidentiality of proprietary information,” gave it “ample authority . . . to
require carriers to report CPNI breaches.” Id. at 6943. And, in another portion of the Order, the
Commission explained that “[e]very telecommunications carrier has a general duty pursuant to
section 222(a) to protect the confidentiality of CPNI.” Id. at 6931.
The FCC built on its preexisting CPNI regulations in 2013. In response to rampant
“waste, fraud, and abuse” in the provision of video relay services, the Commission applied CPNI
protections—which mostly mirrored its CPNI protections in the carrier context—to relay service
providers. Structure & Pracs. of Video Relay Serv. Program, 28 FCC Rcd. 8618, 8620, 8684-85
(2013).
In 2014, the FCC made clear its view that it has the statutory authority to regulate a
carrier’s handling of personally identifiable information (“PII”). In an order penalizing two
companies for impermissibly disclosing individuals’ “names, addresses, Social Security
numbers, driver’s licenses, and other proprietary information,” the Commission opined that “the
term ‘proprietary information’ in Section 222(a) broadly encompasses such confidential
information as privileged information, trade secrets, and personally identifiable information
(PII).” Terracom, Inc. & YourTel Am., Inc., 29 FCC Rcd. 13325, 13325, 13331 (2014). The
Commission also charged the companies with violating § 201(b) for “failing to employ
reasonable data security practices” and “failing to notify all customers whose personal
information could have been breached by the Companies’ inadequate data security policies.” Id.
at 13329.
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The following year, the FCC reclassified broadband Internet access services as
“telecommunications service[s].” Protecting & Promoting the Open Internet, 30 FCC Rcd.
5601, 5734 (2015). In 2016, in the wake of that reclassification and in response to an
“increasingly Internet-based economy” creating new and evolving data privacy concerns, the
FCC issued an omnibus Broadband Privacy Order seeking to “apply the privacy requirements of
the Communications Act of 1934” to “broadband Internet access service[s].” Protecting Priv. of
Customers of Broadband & Other Telecomms. Servs., 31 FCC Rcd. 13911, 13911-13 (2016)
(2016 Order). As part of this regulatory overhaul, the Commission substantially revised its 2007
data breach reporting requirements, applying the requirements not only to breaches of CPNI, but
also to breaches of customers’ PII. Id. at 14080-81, 14085-86. The 2016 Order defined PII as
“any information that is linked or reasonably linkable to an individual or device,” such as an
individual’s name, email address, date of birth, or Social Security number. Id. at 13944-46,
14081.
The 2016 Order extensively addressed the FCC’s statutory authority to impose
requirements on carriers regarding PII. The FCC primarily relied on § 222(a)’s general duty to
protect customers’ information, finding that the plain meaning of the term “proprietary
information of, and relating to . . . customers” is broader than the term “CPNI” and is best read to
encompass PII. Id. at 14055-62 (quoting 47 U.S.C. § 222(a)). The Commission
“acknowledge[d] that prior Commission orders implementing Section 222 ha[d] focused largely
on CPNI rather than customer[s’] [personal information] more broadly,” but asserted that such
prior orders should not “constrain [its] efforts . . . to develop robust privacy protections for
consumers under Section 222(a).” Id. at 14062. The FCC also asserted that § 201(b)’s grant of
authority to regulate “unjust or unreasonable” practices lent independent support to its data
breach rules. Id. at 14067-68. Two Commissioners dissented from the 2016 Order. Id. at
14119, 14122. One of these dissenters, Commissioner O’Reilly, argued that the FCC lacked the
statutory authority to impose data breach reporting requirements pertaining to PII. Id. at 14122-
24 (O’Reilly, Comm’r, dissenting).
Pursuant to the Congressional Review Act (CRA), the FCC submitted the 2016 Order to
Congress for its review. The CRA, described in more detail below, prescribes an expedited
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procedure for Congress to strike down federal regulations of which it disapproves. It also
prohibits agencies from reissuing a new rule that is “substantially the same” as the rule that
Congress rejected. 5 U.S.C. §§ 801, 802. Shortly after receiving the Order, Congress passed a
joint disapproval resolution stating:
Congress disapproves the rule submitted by the Federal Communications
Commission relating to ‘Protecting the Privacy of Customers of Broadband and
Other Telecommunications Services’ (81 Fed. Reg. 87274 (December 2, 2016)),
and such rule shall have no force or effect.
Pub. L. No. 115-22, 131 Stat. 88, 88 (2017). The President signed the disapproval resolution on
April 3, 2017. Id. The FCC accordingly rescinded the 2016 Order, including the amended data
breach reporting rules, and reinstated the 2007 version of the rules. Protecting the Priv. of
Customers of Broadband & Other Telecomms. Servs., 82 Fed. Reg. 44118, 44118-23 (Sept. 21,
2017).
C. 2024 Data Breach Reporting Rule and Procedural History
In January 2023, the FCC issued a Notice of Proposed Rulemaking seeking public
comment on new amendments to the 2007 data breach rules. Data Breach Reporting
Requirements, 38 FCC Rcd. 566 (2023). Concerned with the “increasing number of security
breaches of customer information in recent years,” the Notice proposed a new rule “expand[ing]
the Commission’s definition of ‘breach’ to include inadvertent disclosures of customer
information.” Id. at 566-67, 572. To that end, the Notice sought comment on “the
Commission’s authority to establish breach-reporting obligations” for “proprietary information
other than CPNI that customers have an interest in protecting from public exposure, such as
Social Security Numbers and financial records.” Id. at 577. The Commission also requested
comment on “the impact of the Congressional disapproval of the 2016 Privacy Order on the
Commission’s legal authority to issue” its proposed rules. Id. at 573 (italics omitted).
On December 21, 2023, after the requisite notice-and-comment period, the FCC issued a
new rule revising its data breach requirements, which was then published in the Federal Register
as a final rule on February 12, 2024. Data Breach Reporting Requirements, 89 Fed. Reg. 9968
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(Feb. 12, 2024) (2024 Order). The 2024 Order provided that the FCC’s breach notification rules
cover both CPNI and PII, id. at 9969, defining the latter category as:
(i) An individual’s first name or first initial, and last name, in combination with
any government-issued identification numbers or information issued on a
government document used to verify the identity of a specific individual, or other
unique identification number used for authentication purposes;
(ii) An individual’s username or email address, in combination with a password or
security question and answer, or any other authentication method or information
necessary to permit access to an account; or
(iii) Unique biometric, genetic, or medical data.
Id. at 10003. Other changes contained within the new Order included adding a good faith
exception to the definition of the term “breach,” id. at 9981; adding the stipulation that carriers
need not notify customers of a breach if the carriers can reasonably determine that no harm is
likely to occur, id. at 9977; and eliminating mandatory waiting periods for carriers to notify
customers of data breaches, id. at 9979. In addition, the Commission adopted equivalent changes
to the data breach obligations of TRS providers. Id. at 9981-89.
The 2024 Order extensively discussed, and responded to comments on, the FCC’s
statutory authority to promulgate the revised data breach reporting rules. The FCC pointed to the
“breadth” of § 222(a), which, it asserted, “provides the additional clarity that the Commission’s
breach reporting rules can and must apply to all PII rather than just to CPNI.” Id. at 9989. The
Commission also cited § 201(b)’s prohibition of “unjust and unreasonable practices” as
“independent authority” allowing the Commission to apply data breach reporting requirements to
PII. Id. at 9991. And it explained that § 225 allowed it to extend these reporting requirements to
TRS providers. Id. at 9993. In addition, the Commission responded to comments regarding the
CRA, concluding that the 2024 Order was not “substantially the same” as the 2016 Order. Id. at
9993-96. Two Commissioners dissented, asserting, among other things, that the 2024 Order
exceeded the FCC’s statutory authority and contravened the CRA because it was “substantially
the same” as the congressionally disapproved 2016 Order. Data Breach Reporting
Requirements, 38 FCC Rcd. 12523, 12620 (2023) (Carr, Comm’r, dissenting); id. at 12624
(Simington, Comm’r, dissenting).
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Petitioners then sought judicial review of the 2024 Order under 28 U.S.C. § 2344 in
various circuit courts of appeals. On February 20, 2024, Ohio Telecom petitioned for review in
the Sixth Circuit, and the Texas Association of Business petitioned for review in the Fifth
Circuit. And on March 15, 2024, CTIA – The Wireless Association (CTIA), NCTA – The
Internet & Television Association (NCTA), and USTelecom – The Broadband Association
(USTelecom) petitioned for review in the D.C. Circuit.
On March 4, 2024, the United States Judicial Panel on Multidistrict Litigation issued a
consolidation order for the then-pending petitions for review in the Fifth and Sixth Circuits. The
panel randomly selected the Sixth Circuit in which to consolidate the petitions for review. The
D.C. Circuit later transferred CTIA’s petition for review to this circuit, and this court
consolidated the three cases for submission. On March 20, 2024, Hamilton Relay, Inc. filed a
motion to intervene, which this court granted.
II. ANALYSIS
A. Jurisdiction
Although no party contests our jurisdiction to review these petitions, we retain an
independent obligation to police our own jurisdiction.1 United States v. Certain Land Situated in
City of Detroit, 361 F.3d 305, 307 (6th Cir. 2004). Courts of appeals have exclusive jurisdiction
over certain final orders issued by the FCC. 28 U.S.C. § 2342(1). “Any party aggrieved by [a]
final order may, within 60 days after its entry, file a petition to review the order in the court of
appeals wherein venue lies.” Id. § 2344. This sixty-day window constitutes a “jurisdictional
limit.” Consumers’ Rsch. v. FCC, 67 F.4th 773, 784 (6th Cir. 2023).
The FCC released the 2024 Order on December 21, 2023. The Order was then published
in the Federal Register as a final rule on February 12, 2024. Data Breach Reporting
Requirements, 89 Fed. Reg. at 9968. Ohio Telecom and the Texas Association of Business both
petitioned for review of the Order on February 20, 2024. Because their petitions were filed
within sixty days of both the Order’s release and its publication in the Federal Register, we have
1We address the narrower question of whether we have jurisdiction to review Petitioners’ CRA claim
below. See infra Section II.D.2.
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jurisdiction regardless of which date constitutes the Order’s “entry.” But CTIA, NCTA, and
USTelecom petitioned for review on March 15, 2024, which is within sixty days of the Order’s
publication, not its release. Accordingly, our jurisdiction to review CTIA’s petition hinges on
when the Order’s “entry” occurred.
Congress has not statutorily defined the term “entry” as it is used in § 2344. But FCC
regulations provide that any agency action “shall be deemed final, for purposes of seeking
reconsideration at the Commission or judicial review,” on “the date of publication in the Federal
Register.” 47 C.F.R. §§ 1.103(b), 1.4(b). This regulatory limitation comports with the plain
meaning of “entry”—the “act of making or entering a record.” Entry, Merriam Webster,
https://perma.cc/5LCT-D474. No language in the statute cuts against the FCC’s regulatory
interpretation. And, while the Supreme Court and the Sixth Circuit have yet to address this
issue, other circuit courts have similarly adopted the FCC’s definition of “entry.” See, e.g.,
Council Tree Commc’ns, Inc. v. FCC, 503 F.3d 284, 289-91 (3d Cir. 2007); W. Union Tel. Co. v.
FCC, 773 F.2d 375, 378-80 (D.C. Cir. 1985).2 We join these circuits and hold that an order is
deemed entered, for purposes of assessing jurisdiction under § 2344, on the date of its
publication in the Federal Register.
Because all three petitions were filed within sixty days of the Order’s publication in the
Federal Register, we have jurisdiction to hear these consolidated petitions for review.
B. Standard of Review
Under the Administrative Procedure Act (APA), courts must “hold unlawful and set aside
agency action, findings, and conclusions found to be . . . arbitrary, capricious, an abuse of
discretion, or otherwise not in accordance with law . . . [or] in excess of statutory jurisdiction,
authority, or limitations, or short of statutory right.” 5 U.S.C. § 706(2)(A), (C). In so doing, “the
reviewing court shall decide all relevant questions of law, interpret constitutional and statutory
2The Third Circuit deemed the statute ambiguous and deferred to the FCC’s interpretation, Council Tree
Commc’ns, 503 F.3d at 289-91, which is no longer permissible following the Supreme Court’s abrogation of
Chevron deference, Loper Bright Enters. v. Raimondo, 603 U.S. 369, 412 (2024). Nonetheless, the Third Circuit’s
reasoning remains instructive. As the Third Circuit explained, there is no language in § 2344 suggesting that “entry”
occurs prior to an order’s publication in the Federal Register. Council Tree Commc’ns, 503 F.3d at 289.
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provisions, and determine the meaning or applicability of the terms of an agency action.” Id.
§ 706.
Applying the APA, we “must exercise [our own] independent judgment in deciding
whether an agency has acted within its statutory authority.” Loper Bright Enters. v. Raimondo,
603 U.S. 369, 412 (2024). Although “[c]areful attention to the judgment of the Executive
Branch may help inform that inquiry,” we “may not defer to an agency interpretation of the law
simply because a statute is ambiguous.” Id. at 412-13. Instead, we rely on our “traditional tools
of statutory construction” to determine a statute’s “single, best meaning.” Id. at 400-01.
Applying those tools, our inquiry begins with the “statutory text,” relying on “the language
itself” and “the specific context in which that language is used.” United States ex rel. Felten v.
William Beaumont Hosp., 993 F.3d 428, 431 (6th Cir. 2021) (quoting Robinson v. Shell Oil Co.,
519 U.S. 337, 340-41 (1997)). And we interpret that text in accordance with our binding judicial
precedent. Freeman v. Wainwright, 959 F.3d 226, 232 (6th Cir. 2020).
Petitioners contend that the 2024 Order exceeds the FCC’s statutory authority and
violates the CRA. We address each issue in turn.
C. Statutory Authority Under the Communications Act and its Amendments
The FCC points to two independent sources of statutory authority permitting it to impose
data breach reporting requirements regarding PII—47 U.S.C. § 201(b) and 47 U.S.C. § 222. And
it argues that 47 U.S.C. § 225 allows it to extend the reporting requirements to relay service
providers. We examine each statutory ground invoked by the FCC separately.
1. 47 U.S.C. § 222(a)
The FCC argues that § 222(a)’s mandate to protect proprietary customer information
gives it the authority to promulgate data breach reporting requirements regarding customer PII.
Section 222(a) imposes on all telecommunications carriers “a duty to protect the confidentiality
of proprietary information of, and relating to, other telecommunication carriers, equipment
manufacturers, and customers.” 47 U.S.C. § 222(a). According to the FCC, the plain meaning
of the phrase “proprietary information of, and relating to . . . customers” encompasses customer
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PII. Petitioners disagree and contend that the broader text of § 222 and other provisions within
the Communications Act make clear that customer PII is not within § 222(a)’s ambit.
i. Text
We first look to the operative text. See Felten, 993 F.3d at 431. The parties contest the
plain meaning of the term “proprietary,” as used in the phrase “proprietary information of, and
relating to . . . customers.” The term is defined as “of, relating to, or characteristic of an owner
or title holder,” or “used, made, or marketed by one having the exclusive legal right.”
Proprietary, Merriam Webster, https://perma.cc/2F5J-GXHP. Black’s Law Dictionary defines
the broader phrase “proprietary information” similarly—“[i]nformation in which the owner has a
protectable interest,” such as a “trade secret.” Proprietary Information, Black’s Law Dictionary
(11th ed. 2019).
As Petitioners see it, this plain meaning confirms that the term “proprietary information”
encompasses only the sort of information in which an owner has a protectable interest, which
would exclude PII like individual names or addresses. As they note, in ordinary parlance, it
“would be odd to refer to someone’s name and address as one’s ‘proprietary’ information,
insofar as customers routinely disclose such information to third parties.” Petitioners’ Br. 26.
The FCC contends that Petitioners’ construction is overly narrow, and that the term “proprietary”
should be construed to include any information that belongs or pertains to an owner or
proprietor, which necessarily encompasses information “obtained by [carriers] through [their]
service relationship with [their] customers.” Respondent’s Br. 34. As the FCC correctly notes,
adopting Petitioners’ narrower construction would exclude the types of customer information
that even Petitioners recognize falls within the ambit of § 222(a), because customers may not
always have a protectable interest in all CPNI. See 47 U.S.C. § 222(h)(1)(A) (defining CPNI to
include, among other things, “type, destination, location, and amount of use of a
telecommunications service subscribed to by any customer”). Although the FCC is right that
Petitioners’ construction does not fully comport with the statute, Petitioners are similarly correct
that the FCC’s construction stands in tension with the ordinary meaning of “proprietary
information.” In short, we cannot discern the precise contours of § 222(a), including whether it
encompasses customer PII, solely from the provision’s plain meaning.
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ii. Statutory Context and Structure
Because the operative language is unclear, we look to the statutory context and structure
for clarification. See Felten, 993 F.3d at 431. Whereas § 222(a) articulates a general duty to
protect proprietary information, subsequent subsections specify various requirements and
exceptions underlying this general duty. Section 222(b) requires carriers to protect the
proprietary information of other carriers. Section 222(c) requires carriers to adhere to certain
requirements for using, disclosing, and providing access to CPNI. Section 222(d), in turn, carves
out exceptions to § 222(c)’s CPNI restrictions. And Section 222(e) requires carriers to disclose
“subscriber list information” “upon request for the purpose of publishing directories in any
format,” while § 222(g) requires disclosure of subscriber list information to emergency
responders. Both § 222(e) and § 222(g) specify that such disclosure is authorized
“[n]otwithstanding subsections (b), (c), and (d).” Notably, § 222 contains no express reference
to customer PII.
The FCC’s reading of § 222(a) does not cohere with the remainder of the section. The
specific restrictions that § 222 imposes on carriers’ use of individual customer information focus
only on CPNI, without mention of customers’ PII, indicating a narrower scope than the language
of § 222(a) might suggest if read in isolation. See 47 U.S.C. § 222(c), (h)(1). The CPNI
exceptions in § 222(d) also undermine the FCC’s construction. Section 222(d) permits carriers
to disclose CPNI for certain purposes such as billing and assisting law enforcement and
emergency responders. It does not, however, extend these exceptions to customer information
other than CPNI, like customers’ names, email addresses, and Social Security numbers. The
FCC’s interpretation would thus result in an anomalous situation in which § 222(a) requires
carriers to protect both customer PII and CPNI but applies exceptions for billing and emergency
services only to CPNI. Seeking to avoid this anomaly, the FCC contends that the exceptions in
§ 222(d) need not be limited to CPNI and could, in fact, be read to apply to other types of
proprietary customer information. But that assertion is belied by the subsection’s text, which
applies the exceptions specifically to “customer proprietary network information [that a carrier]
obtain[s] from its customers.” Id. § 222(d).
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Sections 222(e) and 222(g) raise similar anomalies under the FCC’s interpretation.
Those sections permit disclosure of subscriber list information for the purposes of publishing
directories and assisting in the provision of emergency services, and both state that such
disclosure is authorized “[n]otwithstanding subsections (b), (c), and (d),” omitting any mention
of subsection (a). Had Congress intended § 222(a) to impose a separate, affirmative requirement
on carriers to protect customer PII, it presumably would have added subsection (a) to the list of
subsections that are trumped by the disclosure requirements regarding customer data in § 222(e)
and § 222(g).
In addition, as Petitioners note, Congress knows how to expressly reference PII when it
so desires—other portions of the Communications Act directly mention PII. See Cable
Communications Policy Act of 1984, Pub. L. No. 98-549, 98 Stat. 2779, 2794-95 (codified at 47
U.S.C. § 551) (imposing certain duties on cable operators to protect subscribers’ PII); Satellite
Home Viewer Extension and Reauthorization Act of 2004, Pub. L. No. 108-447, 118 Stat. 3393,
3425-27 (codified at 47 U.S.C. § 338) (requiring satellite operators to protect subscribers’ PII).
The lack of any express mention of PII in § 222, by contrast, is notable, given that the section
specifically identifies and enumerates other types of customer information—CPNI, aggregate
customer information, and subscriber list information—within its ambit.
In response, the FCC points to the canon that, “[i]n a given statute . . . different terms
usually have different meanings.” Pulsifer v. United States, 601 U.S. 124, 149 (2024). Because
§ 222(a)’s protection of “proprietary information of, and relating to . . . customers” is distinct
from § 222(c)’s protection of CPNI, the FCC contends, we should read § 222(a) to encompass a
broader array of information, including PII. Although the FCC is correct that the terms are
distinct, that does not suffice to show that § 222(a) includes PII. Interpreting § 222(a) to cover
PII, as discussed, creates anomalies across the remainder of the statute and ignores the clear
statutory focus on specific categories of customer information, none of which include PII. In
addition, the structure of § 222 further indicates that the FCC’s heavy reliance on variation in
meaning misses the mark. Section 222(a) articulates the FCC’s general “duty to protect the
confidentiality of proprietary information of, and relating to, other telecommunication carriers,
equipment manufacturers, and customers,” whereas the rest of the statute goes on to delineate
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more specific requirements and exceptions regarding this proprietary information. See 47 U.S.C.
§ 222(b)-(h). Read in context, then, it makes sense that Congress would have used broader
language in § 222(a), given that it sets forth the general duty carriers have to protect not only the
proprietary information of customers, but also the proprietary information of carriers and
equipment manufacturers.3 We thus find the FCC’s meaningful variation argument unavailing.
In sum, although the FCC advances a plausible reading of § 222(a) when viewed in
isolation, the broader text and structure of § 222 clarify that the phrase “proprietary information
of, and relating to . . . customers” does not encompass PII.4 Viewed as a whole, the statute
makes clear that its focus is on requiring carriers to adhere to particular statutory requirements—
and exceptions to those requirements—regarding a limited set of categories of customer
information. It does not encompass carriers’ practices regarding customer PII. We therefore
conclude that the FCC does not have the authority under § 222(a) to impose data breach
reporting requirements regarding customer PII.
2. 47 U.S.C. § 201(b)
But that is not the end of the matter. The FCC points to 47 U.S.C. § 201(b) as a separate,
independent source of statutory authority permitting it to impose data breach reporting
requirements regarding PII. Section 201(b) provides that any “charge, practice, classification, or
regulation” “in connection with [a] communication service” that is “unjust or unreasonable” shall
be “declared . . . unlawful,” and it confers the FCC with the authority to “prescribe such rules
and regulations as may be necessary” to carry out that prohibition. 47 U.S.C. § 201(b). The
parties agree that § 201(b) gives the FCC the discretion to decide what is “unjust or
unreasonable” with respect to particular “charges, practices, classifications, [or] regulations,”
3The FCC is correct that § 222(a) has independent significance and is not simply meant to introduce the
more specific provisions that follow. Otherwise, the section’s mandate on carriers to protect the “proprietary
information of, and relating to . . . equipment manufacturers” would be hollow, given that the rest of the section
makes no mention of equipment manufacturer data. We agree with the FCC, then, that § 222(a) includes more than
just CPNI. The question here, however, is whether the specific portion of § 222(a) protecting the proprietary
information of customers includes not only CPNI, but also PII. For the reasons already set forth, we conclude that it
does not.
4Because the statute’s text, context, and structure resolve our inquiry here, we need not address Petitioners’
argument regarding the FCC’s past practice in interpreting and implementing § 222. See Felten, 993 F.3d at 431.
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subject to APA constraints. Id. But they disagree on what can constitute a “practice[] . . . in
connection with [a] communication service.” Id. The Commission asserts that inadequate data
breach reporting is an unjust or unreasonable practice in connection with a communication
service, and that the prescription of notification rules aimed at addressing that harm falls within
the scope of its authority to regulate and prevent such practices. Petitioners disagree, advancing
a narrow interpretation of § 201(b). As they see it, the Commission’s regulatory authority under
§ 201(b) is confined to practices resembling rate setting and rate division, and any applicability
§ 201(b) might otherwise have to data privacy is superseded by § 222’s more specific
requirements regarding data privacy.
As a threshold matter, we must identify the regulated conduct at issue before we can
determine whether it constitutes a “practice[] . . . in connection with [a] communication service.”
47 U.S.C. § 201(b). As discussed, the 2024 Order imposes data breach reporting requirements
on carriers in the event of a breach of customer PII. It seeks to remedy “carrier[s’] practices
related to [their] failure to notify consumers [and governmental entities] of a data breach.” Data
Breach Reporting Requirements, 89 Fed. Reg. at 9991. In other words, the regulated conduct is
a carrier’s handling of data breaches, including the refusal or failure to notify customers and the
government in response to a data breach of customer PII. That is the asserted “practice” that we
must evaluate against the statute.
i. Text
We begin our statutory analysis with the text—namely, the term “practice,” which the
statute does not define. See Felten, 993 F.3d at 431. We interpret the term “consistent with [its]
‘ordinary meaning . . . at the time Congress enacted the statute.’” Wis. Cent. Ltd. v. United
States, 585 U.S. 274, 277 (2018) (quoting Perrin v. United States, 444 U.S. 37, 42 (1979)). In
1934, the year the Communications Act was enacted, the word “practice” was broadly defined as
“[a]ction; performance; operation; . . . deed; proceeding;” or “actual performance or application
of knowledge; such actual performance or application habitually engaged in; often, repeated or
customary action; usage; habit; custom; . . . the usual mode or method of doing something.”
Practice, Webster’s International Dictionary (2d ed. 1934). The term has a similarly broad
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definition today: “a repeated or customary action” or “the usual way of doing something.”
Practice, Merriam Webster, https://perma.cc/FM4L-TL4L.
The plain meaning of the term “practice,” as understood then and now, refers to a
carrier’s usual mode of operating, which can encompass both positive acts and the refusal to act.
This understanding is supported not only by the term’s plain meaning, but also by Supreme
Court precedent. In Global Crossing Telecommunications, Inc. v. Metrophones
Telecommunications, Inc., the Supreme Court held that a carrier’s “failure to pay compensation”
constituted a “practice” within the meaning of § 201(b). 550 U.S. at 53-55. As the Court
explained, “in ordinary English, one can call a refusal to pay Commission-ordered compensation
despite having received a benefit from the payphone operator a ‘practice.’”5 Id. at 55 (brackets
omitted). The Court’s logic applies with equal force here. Much like the refusal to compensate a
payphone operator, a carrier’s refusal or failure to notify customers in response to a breach of
customer PII can reasonably be deemed a “practice” of that carrier.
Section 201(b) further provides that such “practices” must be “in connection with [a]
communication service.” 47 U.S.C. § 201(b). The phrase “in connection with” is, on its face,
quite broad. The Supreme Court has thus cautioned that the scope of the term depends on the
statute in which it appears. Maracich v. Spears, 570 U.S. 48, 59-60 (2013). To discern the
scope of this phrase, we must look to the context and “structure of the statute and its other
provisions,” as well as applicable judicial precedent. Id. at 60; see Freeman, 959 F.3d at 232.
ii. Statutory Context and Structure
Section 201(a) establishes that “[i]t shall be the duty of every common carrier engaged in
interstate or foreign communication by wire or radio to furnish such communication service
upon reasonable request therefor.” 47 U.S.C. § 201(a). At the outset, the statute’s focus is
relatively broad, encompassing the full array of “interstate or foreign,” “wire or radio”
communication services “furnish[ed]” by carriers. Section 201(b), in turn, proscribes carriers
from engaging in “unjust or unreasonable” “charges, practices, classifications, and
5Global Crossing applied Chevron deference, which has since been abrogated. Loper Bright, 603 U.S. at
412. Nonetheless, its analysis—which relied on the ordinary meaning of the term “practice,” Glob. Crossing, 550
U.S. at 55—acts as helpful guidance in our own interpretation. See Loper Bright, 603 U.S. at 394.
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regulations . . . in connection with” the furnishing of such services. Id. § 201(b); see Glob.
Crossing, 550 U.S. at 55 (observing that § 201(b) prohibits unreasonable practices in connection
with a carrier’s “furnishing” of communication services). The statute’s clear focus on a carrier’s
provision of communication services indicates that for § 201(b) to apply to a given “practice,”
there must be a close, direct connection—and not merely a tangential, indirect connection—
between that “practice” and the furnishing of a communication service.
Again, Global Crossing provides helpful guidance. There, the Court explained why a
carrier’s refusal to compensate a payphone operator can constitute a practice “in connection
with” a carrier’s communication service. Payphone operators, the Court noted, play an integral
role in facilitating a carrier’s communication service—specifically, their services are part of the
“total long-distance service the payphone operator and the long-distance carrier together provide
to the caller, with respect to the carriage of his or her particular call.” Glob. Crossing, 550 U.S.
at 55. Consequently, a carrier’s “refusal to divide the revenues” incurred from that long-distance
service is a practice that directly relates to and implicates its provision of communication
services. Id. The Court also rejected the dissenting opinion’s narrower interpretation of the
statute, which would have held that the practice at issue must constitute an activity of a carrier
specifically undertaken “in [its] role as [a] provider[] of telecommunications services.” Id. at 74
(Thomas, J., dissenting). What mattered to the Court was whether the practice has a close and
clear connection to a carrier’s provision of services, not necessarily whether the practice is
undertaken in the course of a carrier’s provision of services to a customer.
The Global Crossing Court also cited multiple examples of other “practice[s] . . . in
connection with [furnishing a] communication service” that the FCC has historically regulated
pursuant to § 201(b). Id. at 53-55. Such practices included the failure to follow Commission-
ordered settlement practices, deceptive marketing, and the formation of exclusive contracts with
commercial building owners.6 Id. at 53-54.
6As the Petitioners and dissent note, the Global Crossing Court further stated that “the underlying regulated
activity at issue . . . resembles activity that . . . communications agencies have long regulated,” specifically, “rate
setting and rate divisions.” 550 U.S. at 55, 60. At no point, however, did the Court indicate that the regulated
activity at issue must always resemble rate setting or rate division for § 201(b) to apply. Instead, the Court cited
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Global Crossing reaffirms what is evident from § 201’s text, context, and structure: the
phrase “in connection with [a] communication service” encompasses the assortment of practices
that directly implicate a carrier’s furnishing of communication services. A carrier’s failure or
refusal to notify customers and government entities of a data breach involving customer PII is
among those practices. As the FCC found, carriers “often collect” and “hold” “large quantities
of sensitive customer data,” including PII, in the course of their provision of communication
services. Data Breach Reporting Requirements, 38 FCC Rcd. at 12524-25. Preventing and
mitigating improper disclosure of that data, in turn, helps ensure that “when [customers] use
communications services, their personal information is protected.” Id. at 12524. And the
requirement that carriers disclose breaches of customer PII is a method of ensuring that
protection. See id. at 12524-25. In short, there is a direct connection between a carrier’s failure
to disclose breaches of customer PII and its role in providing communication services.7
Resisting this conclusion, Petitioners (and the dissent) argue that the statute’s context and
structure require a narrower construction that forecloses § 201(b)’s application to data privacy
issues. First, they contend that the canon of noscitur a sociis—that a word is “known by the
company it keeps”—significantly narrows the phrase’s scope. Gustafson v. Alloyd Co., 513 U.S.
561, 575 (1995). As they see it, the word “practice” is accompanied by the narrower terms
“charges, . . . classifications, and regulations,” which collectively cabin the reach of § 201(b) to
“carrier conduct that is an inherent or necessary aspect of providing a communications service to
customers—e.g., setting rates and classifying services.” Petitioners’ Br. 37-38; see also
Dissenting Op. at 44 (adopting Petitioners’ formulation).
Each of these four terms, however, is sufficiently “distinct from the other,” and represent
different categories of carrier conduct related to a carrier’s provision of communication services.
multiple FCC rules, promulgated pursuant to § 201(b), that regulate activity that does not resemble rate setting or
rate division, such as deceptive marketing and exclusive contracting. Id. at 53-54.
7In their reply brief, Petitioners briefly gesture toward an additional argument regarding the language of the
2024 Order. Reply Br. 6. Petitioners never raised this issue in their principal brief, and it is therefore waived. See
United States v. Abboud, 438 F.3d 554, 589 (6th Cir. 2006) (“An argument first presented to the Court in a reply
brief is waived.”). Even if the principal brief had raised the issue, Petitioners offer only a cursory argument about
how the Order’s language “could be read,” Reply Br. 6, which is insufficient for this court’s review. Buetenmiller v.
Macomb Cnty. Jail, 53 F.4th 939, 946 (6th Cir. 2022) (holding that issues raised without developed argumentation
are deemed forfeited).
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Graham Cnty. Soil & Water Conservation Dist. v. U.S. ex rel. Wilson, 559 U.S. 280, 288 (2010).
Section 201 broadly focuses on a carrier’s “furnish[ing]” of “communication service[s],” and
that encompasses more than just “setting rates and classifying services.” Petitioners’ Br. 38. As
Global Crossing makes clear, there is a wide array of carrier conduct directly pertaining to the
provision of communication services that can fall within the scope of § 201(b). 550 U.S. at 53-
55. Under these circumstances, the canon of noscitur a sociis cannot be used to “rob” the plain
statutory text of its independent and ordinary significance.8 Graham Cnty. Soil & Water
Conservation Dist., 559 U.S. at 288.
Indeed, the position advanced by the Petitioners and dissent resembles a similar argument
made by the dissent in Global Crossing—that “the terms ‘charges,’ ‘classifications,’ and
‘regulations’” exclusively “involve either setting rules for the provision of service or setting rates
for that provision” and thus limit the term “practice” to encompass only activities undertaken by
a carrier in its role as a provider of communication services. 550 U.S. at 74-76 (Thomas, J.,
dissenting). The Court rejected this invocation of noscitur a sociis and instead looked to whether
the practice at issue bore a close relationship to the provision of communication services. Id. at
55 (majority opinion). Adhering to this same approach leads us to conclude that a carrier’s
refusal to report breaches of customer data, which has a direct connection to the provision of
communication services, indeed constitutes a “practice[] . . . in connection with [a]
communication service.”9 47 U.S.C. § 201(b).
Petitioners also point to caselaw from the D.C. Circuit, approvingly cited by the Supreme
Court, interpreting the term “practice,” as it is used in Section 206 of the Federal Power Act
(FPA), based on the surrounding statutory language. Cal. Indep. Sys. Operator Corp. v. FERC,
8Our conclusion is not altered by Petitioners’ assertion that their narrow view of the term “practice” is
necessary, lest § 201(b) adopt limitless breadth “regulating all carrier business activities, even those that fall entirely
outside the FCC’s bailiwick.” Reply Br. 10. As discussed, the term is limited by the phrase “in connection with [a]
communication service.” 47 U.S.C. § 201(b). That qualifier requires that the “practice” at issue have a direct
connection to a carrier’s provision of communication services and thereby cabins § 201(b)’s scope.
9The dissent critiques our determination that § 201(b) requires a direct connection between the relevant
practice and the provision of communication services as “a vague qualifier” that “merely rephrases the statute’s
ambiguous language.” Dissenting Op. at 45. We do not think requiring a direct connection is “vague” or
“ambiguous.” And we find perplexing the suggestion that our interpretation relies too heavily on § 201(b)’s “in
connection with” language. That is, after all, the specific language used by the statute. Conversely, it is Petitioners’
limitation of “inherent or necessary” that lacks support in the statute’s text.
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372 F.3d 395, 398-403 (D.C. Cir. 2004); see FERC v. Elec. Power Supply Ass’n, 577 U.S. 260,
278 (2016). But that case involved a statute with markedly different language and structure, as
well as an agency action that was substantively distinct from the one at issue here. The statute in
that case, Section 206 of the Federal Power Act, confers the Federal Energy Regulatory
Commission (FERC) with the authority to hold hearings and, based on such hearings, deem
“unjust, unreasonable, unduly discriminatory or preferential” any “rate, charge, or classification”
or any “rule, regulation, practice, or contract affecting such rate, charge, or classification.” 16
U.S.C. § 824e(a) (emphases added). FERC argued that this section gave it the authority to order
public utilities to replace their governing boards. Cal. Indep. Sys. Operator Corp., 372 F.3d at
398.
The D.C. Circuit rejected FERC’s interpretation. As the court noted, Section 206 “only
comes into play when the Commission has had a hearing and finds that a ‘rate, charge, or
classification’ employed by a regulated utility in its jurisdictional transactions is ‘unjust,
unreasonable, unduly discriminatory or preferential.’” Id. at 400. The statutory language thus
made clear at the outset Section 206’s narrow focus on rates, charges, and classifications. And it
expressly limited FERC’s authority to regulate “practice[s]” to “practice[s] . . . affecting [a] rate,
charge, or classification”—further evincing Congress’s intent to cabin Section 206’s reach to
rates, charges, classifications, and closely related matters. The statute’s narrow title, the court
reasoned, only bolstered this interpretation: “Power of Commission to fix rates and charges;
determination of cost of production or transmission.” 16 U.S.C. § 824e; see Cal. Indep. Sys.
Operator Corp., 372 F.3d at 399. Given this narrow statutory focus, the court found that it
would be “quite a leap” to conclude that Section 206 “empower[ed] the Commission to reform
completely the governing structure of [a public] utility,” a significant act of governmental power
with only an indirect effect on rates, charges or classifications. 372 F.3d at 400-03.
In the present matter, by contrast, § 201 deals with a carrier’s “furnish[ing]” of
“communication service[s].” 47 U.S.C. § 201(a). It confers to the FCC authority to regulate a
carrier’s “practices . . . in connection with [a] communication service.” Id. § 201(b). In doing
so, it limits the term “practice” by requiring that it be connected to a communication service, and
not necessarily to a rate, charge, or classification. That focus on the various aspects of a carrier’s
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provision of communication services—and not solely on rates, charges, and classifications—
significantly distinguishes Section 201 from Section 206 of the FPA.10 Section 201’s more
comprehensive title—“Service and charges”—only reinforces that conclusion. Id. And, unlike
the attenuated connection that existed in California Independent System Operator, the regulated
practice here has a close connection to communication services. We are therefore unpersuaded
by Petitioners’ reliance on Section 206 and the caselaw interpreting it.
Petitioners further contend that, under the general/specific canon of statutory
interpretation, we should read § 222 as superseding § 201(b). In Petitioners’ view, § 201(b)’s
general prohibition on unjust or unreasonable practices must give way to § 222’s more specific
requirements regarding the protection of certain types of customer data. The general/specific
canon provides that, where a specific statute conflicts or overlaps with a general statute, the
“specific governs the general.” RadLAX Gateway Hotel, LLC v. Amalgamated Bank, 566 U.S.
639, 645 (2012) (quoting Morales v. Trans World Airlines, Inc., 504 U.S. 374, 384 (1992)).
Although courts “most frequently” apply the canon to “statutes in which a general permission or
prohibition is contradicted by a specific prohibition or permission,” the canon also applies to
statutes “in which a general authorization and a more limited, specific authorization exist side-
by-side.” Id. “There the canon avoids not contradiction but the superfluity of a specific
provision that is swallowed by the general one, ‘violat[ing] the cardinal rule that, if possible,
effect shall be given to every clause and part of a statute.’”11 Id. (quoting D. Ginsberg & Sons,
Inc. v. Popkin, 285 U.S. 204, 208 (1932)). “When the conduct at issue falls within the scope of
both provisions, the specific presumptively governs . . . .” Id. at 648.
As discussed above, the specific requirements and exceptions in § 222 apply to only
certain categories of customer information—CPNI, aggregate customer information, and
subscriber list information. Under the specific/general canon, those specific requirements and
10Petitioners point to a nearby provision, 47 U.S.C. § 203, which, like Section 206 of the Federal Power
Act, refers to “practices . . . affecting [] charges.” 47 U.S.C. § 203. But, as its title evinces, that provision is
specifically focused on “Schedules of charges.” Id. We see no reason—and Petitioners offer none—why § 203’s
more specific focus on charges should be read to limit the plain language of § 201(b).
11As other courts have recognized, there is overlap between this application of the general/specific canon
and the canon against surplusage. See Adirondack Med. Ctr. v. Sebelius, 740 F.3d 692, 699 (D.C. Cir. 2014)
(suggesting that RadLAX’s application of the canon “is better characterized as one concerning superfluity”).
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exceptions “presumptively govern[]” over the general prohibition on unjust or unreasonable
practices in § 201(b). Id. Section 222 does not, however, reach or address privacy protections
regarding customer PII. Because disclosure of breaches of customer PII is not the type of
conduct within § 222’s ambit, “the conduct at issue” does not “fall[] within the scope of both”
§ 222 and § 201(b). Id. Interpreting § 201(b) to confer the FCC with the authority to impose
data breach reporting requirements regarding customer PII, therefore, does not result in “the
superfluity of a specific provision that is swallowed by the general one.” Id. at 645.
Petitioners contend that, because § 222 specifically deals with certain aspects of data
privacy, § 201(b)’s “more general command to prohibit ‘unjust or unreasonable’ practices” can
never apply to the data privacy context, including aspects of data privacy that § 222 does not
address. Petitioners’ Br. 35. The dissent likewise embraces this view, arguing that, because
§ 222 provides a “specific framework” for regulating certain types of customer information and
“does not mention PII, it follows that Congress did not intend for the FCC to regulate the privacy
of customer PII” in § 201(b). Dissenting Op. at 46. But that is not how the general/specific
canon works. As the Supreme Court has long explained:
It is an old and familiar rule that, where there is, in the same statute, a particular
enactment, and also a general one, which, in its most comprehensive sense, would
include what is embraced in the former, the particular enactment must be
operative, and the general enactment must be taken to affect only such cases
within its general language as are not within the provisions of the particular
enactment.
RadLAX, 566 U.S. at 646 (quoting United States v. Chase, 135 U.S. 255, 260 (1890)). Our
construction fully comports with this rule, interpreting § 201(b) to “affect only such cases within
its general language as are not within the provisions of” § 222. Id.
The Petitioners’ and dissent’s interpretation, by contrast, fails to accord with the statute
and stretches the general/specific canon well beyond its limits. While § 222 regulates carriers’
handling of specific sets of customer information, at no point does it prohibit the Commission
from regulating other aspects of customer data privacy that fall outside § 222’s scope. It is true
that § 201(b) and § 222 overlap in subject matter, but such overlap between statutes does not
automatically render them impermissibly superfluous. See Skilling v. United States, 561 U.S.
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358, 413 n.45 (2010) (concluding that overlap in federal bribery statutes, where different statutes
applied to different categories of officials, did not render those statutes superfluous). This
principle “is particularly true when agency authority is at stake.” Adirondack Med. Ctr. v.
Sebelius, 740 F.3d 692, 699 (D.C. Cir. 2014). As the D.C. Circuit has noted, “overlap
among . . . various enforcement provisions is not [a] surprising” phenomenon because “Congress
c[an] reasonably hand . . . agencies a palette sufficiently sophisticated to capture the full
spectrum of enforcement possibility.” DeNaples v. Off. of Comptroller of Currency, 706 F.3d
481, 487 (D.C. Cir. 2013).
Here, the plain text of § 201(b) allows for regulation of unjust or unreasonable practices
regarding customer PII. While § 222 imposes specific requirements and exceptions regarding
enumerated categories of customer information, it does not bar the FCC from regulating certain
carrier practices regarding other categories of customer data, including PII. Mere overlap in
subject matter cannot displace unambiguous statutory text. Skilling, 561 U.S. at 413 n.45. Our
directive to avoid surplusage requires that we give full operative effect to the specific
requirements and exceptions in § 222. See RadLAX, 566 U.S. at 645. It does not mandate that
we interpret § 222 as wholly displacing § 201(b)’s authority over all aspects of data privacy, in
contravention of § 201(b)’s text.
Finally, the Petitioners and dissent point to § 222’s lack of a savings clause and contrast
that omission with § 251, enacted alongside § 222, which provides that “[n]othing in this section
shall be construed to limit or otherwise affect the Commission’s authority under section 201 of
this title.” 47 U.S.C. § 251. Congress’s decision to include in § 251 a savings clause preserving
§ 201’s authority, Petitioners contend, “shows that its omission of a savings clause from Section
222 was deliberate,” and “confirms that Section 222 fully displaces Section 201 with respect to
consumer privacy.” Petitioners’ Br. 36. But, in passing the 1996 amendments to the
Communications Act, including § 222, Congress expressly provided that “the amendments made
by this Act shall not be construed to modify, impair, or supersede Federal, State, or local law
unless expressly so provided in such Act or amendments.” 110 Stat. at 143; accord Glob.
Crossing, 550 U.S. at 57 (noting that when Congress amended the Communications Act, “it
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nonetheless left § 201(b) in place”). At no point does § 222 state that it should be construed to
wholly displace § 201(b), or any other provision, with respect to consumer privacy.
As the FCC notes, moreover, there are other reasons why Congress may have opted to
add a specific savings clause to § 251 but not § 222. Section 251 assigns various responsibilities
in implementing the Act to the states; thus, it is logical that Congress might have thought it
necessary to clarify that § 251 should not be read to limit the federal Commission’s authority
under § 201(b). And, as explained, to the extent that § 222 may displace § 201(b), that
displacement only occurs insofar as “the conduct at issue falls within the scope of both
provisions”—there is no such overlap here. RadLAX, 566 U.S. at 648. In short, there is no legal
basis for Petitioners’ contention that, because § 222 lacks a savings clause, it must be read to
fully displace § 201(b) with respect to customer privacy.
We therefore conclude, based on the statutory text, context, and structure, that § 201(b)
gives the FCC the authority to impose reporting requirements in the event of a data breach of
customer PII.
iii. Broader Legal Context
Although the statutory text, context, and structure are dispositive of our inquiry, the
broader legal context in which § 201(b) exists provides additional support for our conclusion.
In Section 45 of the Federal Trade Commission Act (FTCA), Congress directed the
Federal Trade Commission (FTC) to prevent businesses from engaging in “unfair or deceptive
acts or practices in or affecting commerce.” 15 U.S.C. § 45(a)(2). Like § 201(b), § 45(a) gives
its implementing agency broad authority to proscribe a wide array of harmful practices. That
includes the authority to prohibit and regulate a company’s inadequate data privacy practices.
See, e.g., FTC v. Wyndham Worldwide Corp., 799 F.3d 236, 247-49 (3d Cir. 2015) (holding that
the FTC has the authority, under § 45(a), to regulate companies’ data security and privacy
practices). But § 45(a) exempts telecommunications carriers from this statutory obligation,
leaving their regulation to the FCC. 15 U.S.C. § 45(a)(2) (exempting from the FTC’s authority
“common carriers subject to the Acts to regulate commerce”); id. § 44 (defining “[a]cts to
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regulate commerce” to encompass “the Communications Act of 1934 and all Acts amendatory
thereof and supplementary thereto”).
This statutory regime speaks to the issue here. In enacting the FTCA, Congress gave the
FTC broad authority to prohibit harmful practices, including inadequate data privacy protections,
while opting to exempt carriers from the FTC’s authority and instead leave them within the
FCC’s regulatory authority. Congress chose to also enact, in § 201(b), a similarly broad
prohibition on “unjust or unreasonable” carrier “practices . . . in connection with [a]
communication service.” 47 U.S.C. § 201(b). Reading § 201(b) to regulate at least certain
aspects of carriers’ data privacy practices thus aligns with the FTCA’s corresponding regulation
of non-carrier businesses’ data privacy practices. And it prevents the anomalous result of
carriers falling into a regulatory gap in which there is little to no federal protection against
carriers’ mishandling of customer PII. To read the Communications Act as creating such a
regulatory void would stand at odds with the federal protection of customer data applicable to
virtually all other major businesses in the United States.
iv. Regulatory Interpretations
Finally, while not dispositive, we address Petitioners’ contention that the FCC’s reliance
on § 201(b) is undermined by its regulatory history. Petitioners argue that, because the FCC has
only recently concluded that § 201(b) can regulate data privacy, “the statute cannot plausibly be
read to stretch that far.” Petitioners’ Br. 36-37.
First, our determination that the text, context, and structure of § 201(b) gives the FCC the
authority to impose notification requirements for breaches of customer PII is dispositive of our
inquiry here. See Loper Bright, 603 U.S. at 412-13. Nonetheless, the FCC’s historical
interpretation and implementation of § 201(b) does not undermine our conclusion.
As part of its prerogative to regulate unjust or unreasonable practices, the FCC has long
applied § 201(b) to a diverse set of problems, from deceptive marketing to exclusive contracts
with commercial building owners. See Glob. Crossing, 550 U.S. at 53-55. Although the FCC
did not invoke § 201(b) as a source of authority to regulate aspects of customer data privacy until
2014, see Terracom, Inc. & YourTel Am., Inc., 29 FCC Rcd. at 13329, it has never disclaimed
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this authority. Indeed, well before 2014, the FCC relied in part on § 201(b) to regulate certain
carrier practices involving customer data, evincing a flexible, evolving approach to data
regulation. In 1970, for example, the Commission promulgated rules regarding the provision of
data processing services by carriers pursuant to its authority under § 201(b). Regul. & Pol’y
Probs. Presented by Interdependence of Comput. & Commc’n Servs. & Facilities, 28 F.C.C.2d
291, 296, 300 (1970). One decade later, in 1980, the Commission, noting the existence of “broad
consumer rights under Section 201(b),” required companies to disclose certain types of
information while prohibiting certain carriers from disclosing to other companies “any customer
proprietary information unless such information is available to any member of the public.”
Amend. of Section 64.702 of the Comm’n’s Rules and Reguls., 77 F.C.C.2d 384, 440, 499
(1980).12 Contrary to Petitioners’ assertions, this is not a situation in which an agency has
“claim[ed] to discover in a long-extant statute an unheralded power to regulate ‘a significant
portion of the American economy.’” Util. Air Regul. Grp. v. EPA, 573 U.S. 302, 324 (2014)
(quoting FDA v. Brown & Williamson Tobacco Corp., 529 U.S. 120, 159 (2000)). Rather, it is
part of the FCC’s longstanding, flexible, and incremental application of § 201(b) to data
regulation in the evolving environment of data collection and retention.
Petitioners also attempt to rehash their general/specific argument, asserting that “the FCC
itself previously recognized the exclusive and comprehensive nature of Section 222” regarding
customer data privacy. Petitioners’ Br. 36-37. That is incorrect. In support, Petitioners point to
only a single line from a 1999 Order stating that the FCC “conclude[s] that the specific consumer
privacy and consumer choice protections established in section 222 supersede the general
protections identified in sections 201(b) and 202(a).” Telecomms. Carriers’ Use of Customer
Proprietary Network Info. & Other Customer Info., 14 FCC Rcd. 14409, 14491 (1999). But
Petitioners ignore the context and purpose of that statement. There, the FCC concluded that the
“broad non-discrimination requirements” in § 201(b) and § 202(a) should not be construed and
applied in a manner that would override § 222’s protection of CPNI. Id. (noting that “requiring
12Although the FCC cites these regulations in support of its contention that the FCC used § 201(b) to
regulate customer data security, we agree with Petitioners that these regulations bear little relationship to the specific
issue of customer data privacy and security. As discussed, however, these regulations do show a practical, flexible
understanding of § 201(b), including its potential applicability to carrier practices regarding the evolving world of
customer data.
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the disclosure of CPNI to other companies to maintain competitive neutrality would defeat,
rather than protect, customers’ privacy expectations and control over their own CPNI”). In other
words, the Commission merely concluded that carriers could not use broad competition rules to
negate or defeat § 222’s specific privacy protections; it did not determine that § 222 displaced
§ 201(b) with respect to data privacy issues. Section 222’s more specific requirements,
moreover, would only displace § 201(b)’s general protections to the extent they overlap, which,
as discussed above, is not the case with the protection of customer PII.
The respect we afford to an agency’s interpretation of a statute is, of course, heightened
when the interpretation was “issued roughly contemporaneously with enactment of the statute
and [has] remained consistent over time.” Loper Bright, 603 U.S. at 386. But that concept does
not bind an interpreting agency to its earliest exercises of regulatory authority, particularly in the
context of a broad, decades-old statute like § 201(b) that has long been applied to a wide and
evolving range of issues. As the Supreme Court has recognized, § 201(b) “permits,” and
“Congress likely expected, the FCC to pour new substantive wine into its old regulatory bottles.”
Glob. Crossing, 550 U.S. at 57.
It has now been over a decade since the FCC invoked § 201(b) as part of its statutory
authority to protect customer data. That invocation is properly supported by the statute’s plain
text, context, and structure. We therefore uphold the Commission’s reliance on § 201(b) to
impose breach notification requirements concerning customer PII.
3. 47 U.S.C. § 225
Intervenor Hamilton Relay asserts that the FCC lacks the authority under § 225 to impose
the 2024 data breach reporting requirements on TRS providers. Under § 225, TRS providers
must provide telephone transmission services to hearing or speech-impaired individuals “in a
manner that is functionally equivalent to the ability of a hearing individual who does not have a
speech disability[.]” 47 U.S.C. § 225(a)(3). Section 225 also charges the FCC with
“establish[ing] functional requirements, guidelines, and operations procedures for
telecommunications relay services.” Id. § 225(d)(1)(A).
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Both the FCC and Hamilton Relay appear to agree that the FCC has the authority, under
§ 225’s “mandate” to ensure “functional equivalency,” to apply the same data privacy
regulations to TRS providers that it applies to telecommunications carriers. Structure & Pracs.
of Video Relay Serv. Program, 28 FCC Rcd. at 8685-86 (extending privacy requirements
regarding CPNI to TRS providers). Indeed, that reading is amply supported by the statute’s
mandate that the Commission must promulgate “functional requirements, guidelines, and
operations procedures” to ensure TRS providers are providing functionally equivalent services.
47 U.S.C. § 225(a)(3), (d)(1)(A).
We have determined that the FCC has the statutory authority to impose the 2024 data
breach reporting rule on telecommunications carriers.13 See Section II.C.2, supra. Section 225’s
functional equivalency requirement, in turn, gives the Commission authority to extend the same
data privacy protections to the TRS context. 47 U.S.C. § 225(a)(3), (d)(1)(A). Thus, the
Commission’s application of the 2024 data breach reporting rule to TRS providers was within its
authority under § 225.
D. Congressional Review Act
Petitioners further argue that the FCC’s promulgation of the 2024 Order impermissibly
sidesteps Congress’s 2017 disapproval resolution and violates the CRA. We describe the CRA
and address our jurisdiction to determine Petitioners’ CRA arguments before turning to the
merits.
13Before 2024, the only breach notification requirements that the FCC imposed on TRS providers pertained
to CPNI, and those regulations arose out of the FCC’s preexisting CPNI requirements on carriers and were
promulgated pursuant to § 222. Structure & Pracs. of Video Relay Serv. Program, 28 FCC Rcd. at 8680-86 (citing
Telecomms. Carriers’ Use of Customer Proprietary Network Info., 22 FCC Rcd. at 6928). That may be why
Hamilton Relay argues that the Commission lacks the authority to protect PII under § 222 but omits any mention of
§ 201(b). Regardless, our analysis of § 225 does not turn on whether the FCC’s authority to impose PII protections
specifically comes from § 201(b) or § 222. What matters is whether the FCC had the authority under either statute,
such that the requirements are legally valid. See Structure & Pracs. of Video Relay Serv. Program, 28 FCC Rcd. at
8685-86 (stating that, to ensure “functional equivalency,” the FCC must apply the same data privacy regulations to
TRS providers that it applies to carriers).
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1. Background
In 1996, Congress passed, and the President signed, the CRA. Pub. L. No. 104-121, 110
Stat. 847, 868-74 (codified at 5 U.S.C. §§ 801-08). “Enacted as part of the Contract with
America Advancement Act of 1996,” the CRA “was designed to give Congress an expedited
procedure to review and disapprove federal regulations.” Ctr. for Biological Diversity v.
Bernhardt, 946 F.3d 553, 556 (9th Cir. 2019).
Under the CRA, before a rule takes effect, the promulgating agency must provide both
the House and Senate with various items, including a copy of the rule, a short statement
regarding the rule, and a cost-benefit analysis of the rule (if any). 5 U.S.C. § 801(a)(1)(A)-(B).
The CRA incorporates the same definition of “rule” as the APA—“the whole or a part of an
agency statement of general or particular applicability and future effect designed to implement,
interpret, or prescribe law or policy or describing the organization, procedure, or practice
requirements of an agency,” with specific enumerated exceptions that are irrelevant to this case.
Id. §§ 551(4), 804(3).
After receiving the rule, Congress may, within sixty days, pass a resolution of
disapproval. Id. § 802(a). The CRA prescribes the exact form in which Congress must
disapprove of a rule:
“That Congress disapproves the rule submitted by the __________ relating to
__________, and such rule shall have no force or effect.” (The blank spaces
being appropriately filled in).
Id. If both houses of Congress pass a resolution, the joint resolution is presented to the President.
Should the President sign the joint resolution, the disapproved-of rule “shall not take effect (or
continue).” Id. § 801(b)(1).
The CRA also limits future agency action following the enactment of a disapproval
resolution. The Act provides that:
A rule that does not take effect (or does not continue) . . . may not be reissued in
substantially the same form, and a new rule that is substantially the same as such a
rule may not be issued, unless the reissued or new rule is specifically authorized
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by a law enacted after the date of the joint resolution disapproving the original
rule.
Id. § 801(b)(2). In addition, the Act contains a provision prohibiting judicial review of
“determination[s], finding[s], action[s], or omission[s] under” the Act. Id. § 805.
2. Jurisdiction
As noted, we have exclusive jurisdiction over certain final orders issued by the FCC.
28 U.S.C. § 2342. But the CRA contains the following provision: “No determination, finding,
action, or omission under this chapter shall be subject to judicial review.” 5 U.S.C. § 805. Thus,
to assure our jurisdiction to review Petitioners’ CRA claim, we must determine whether the CRA
challenge at issue falls within § 805’s scope. See Ass’n of Civilian Technicians v. FLRA, 283
F.3d 339, 341 (D.C. Cir. 2002) (assessing whether a statutory provision strips federal courts of
jurisdiction to review certain agency actions).
On this question, the CRA’s plain text is dispositive. Section 805 precludes judicial
review of any “determination, finding, action, or omission under this chapter.” 5 U.S.C. § 805
(emphases added). Petitioners challenge an agency action—namely, the FCC’s issuance of the
2024 Order. But the phrase “under this chapter” limits the provision’s preclusive effect to
actions taken “under” the CRA, which imposes various obligations and requirements on
Congress and federal agencies. Critically, the promulgation of the 2024 Order was not an action
taken as part of the FCC’s legal obligations and requirements under the CRA. Rather, the Order
was issued pursuant to the FCC’s rulemaking authority, and that “rulemaking authorit[y] [is] not
part of the CRA, i.e., ‘this chapter.’” Kan. Nat. Res. Coal. v. U.S. Dep’t of Interior, 971 F.3d
1222, 1236 (10th Cir. 2020). The Order therefore falls outside § 805’s limited preclusion of
judicial review.
Because the 2024 Order does not constitute an “action . . . under” the CRA, we have
jurisdiction over Petitioners’ CRA claim.
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3. Merits
The CRA provides that a “rule that does not take effect (or does not continue)” following
the enactment of a disapproval resolution “may not be reissued in substantially the same form,
and a new rule that is substantially the same as such a rule may not be issued, unless the reissued
or new rule is specifically authorized by a law enacted after” the resolution. 5 U.S.C.
§ 801(b)(2). Petitioners contend that the 2024 Order runs afoul of this provision because it
constitutes a new rule that is “substantially the same” as the rule rejected by Congress in 2017.14
Specifically, they argue that the disapproval of the 2016 Order precludes the FCC from
promulgating a new rule that is “substantially the same” as any of the component provisions
contained within the 2016 Order. The FCC disagrees, asserting that the disapproval resolution
bars only the issuance of a new rule that is “substantially the same” as the entire 2016 Order that
was rejected by Congress. To resolve this dispute, we evaluate the precise meaning and scope of
the term “rule” as it is used in the CRA.
To date, neither the Supreme Court nor the Sixth Circuit has meaningfully examined the
CRA, which has been infrequently utilized during its thirty-year existence. See Michael A.
Livermore & Daniel Richardson, Administrative Law in an Era of Partisan Volatility, 69 Emory
L.J. 1, 46-47 (2019). To discern the Act’s scope, we apply the traditional tools of statutory
interpretation. See Loper Bright, 603 U.S. at 400-01; Felten, 993 F.3d at 431.
The starting point is the text. See Felten, 993 F.3d at 431. The CRA, incorporating the
APA, defines the term “rule” as “the whole or a part of an agency statement of general or
particular applicability and future effect designed to implement, interpret, or prescribe law or
policy.” 5 U.S.C. §§ 551(4), 804(3). The definition makes clear that a rule can constitute either
the “whole” or “a part” of an agency statement, depending on the applicable context.
Section 801, in turn, provides that an agency may not issue “a new rule that is substantially the
14Petitioners also contend, in an undeveloped footnote, that the FCC failed to provide adequate notice of its
interpretation of the CRA in its Notice of Proposed Rulemaking. But Petitioners forfeited this argument by
confining it to a cursory footnote and failing to develop it. See United States v. Dairy Farmers of Am., 426 F.3d
850, 856 (6th Cir. 2005) (“An argument contained only in a footnote does not preserve an issue for our review.
Rather, an appellant's brief must include a statement of the issues presented for our review, and an argument with
respect to each issue.”); Buetenmiller, 53 F.4th at 946 (holding that issues addressed in a perfunctory manner
without developed argumentation are considered forfeited).
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same” as “[a] rule that does not take effect (or does not continue)” because of the enactment of
“a joint resolution of disapproval . . . of the rule.” Id. § 801(b). Thus, for purposes of
determining whether a new rule is substantially the same as a disapproved-of prior rule, the prior
rule is to be construed based on the language chosen by Congress for the applicable disapproval
resolution.
Using the CRA’s mandatory fill-in-the-blank format, id. § 802(a), Congress passed a
resolution stating: “Congress disapproves the rule submitted by the Federal Communications
Commission relating to ‘Protecting the Privacy of Customers of Broadband and Other
Telecommunications Services’ (81 Fed. Reg. 87274 (December 2, 2016)), and such rule shall
have no force or effect.” 131 Stat. at 88 (emphases added). By the resolution’s terms, “the rule”
that Congress rejected and rendered inoperable was the entire 2016 Order—Congress
disapproved of the 2016 Order as a “whole.” 5 U.S.C. § 551(4). Thus, the proper comparison is
between the 2024 Order and the entire 2016 Order.
Petitioners argue that the phrase “rule that does not take effect (or does not continue)”
refers not “to the rule specified in the joint resolution of disapproval,” but rather, to any
constituent part of the broader rule that has been nullified by the applicable disapproval
resolution. Petitioners’ Br. 48-51 (quotation omitted); see Dissenting Op. at 41 (agreeing with
Petitioners’ construction). That reading contravenes the text of the CRA. Section 801(b)(2)’s
reference to “a rule that does not take effect (or does not continue)” refers back to § 801(b)(1),
which provides that “[a] rule shall not take effect (or continue), if the Congress enacts a joint
resolution of disapproval, described under section 802, of the rule.” 5 U.S.C. § 801(b)(1)
(emphasis added). The “rule that does not take effect (or does not continue)” is, by the Act’s
express terms, the rule identified in the disapproval resolution pursuant to the procedures
delineated in § 802.
It is true that when Congress disapproved the 2016 Order, it nullified every constituent
rule contained therein. That conclusion is plainly required by the CRA’s mandate that “[a] rule
shall not take effect (or continue), if the Congress enacts a joint resolution of disapproval . . . of
the rule.” Id. It is also true that the disapproval resolution limited the FCC’s statutory authority
going forward by proscribing it from promulgating a new rule “substantially the same” as the
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rejected rule. But to determine whether a new rule is “substantially the same” as a prior rule, the
CRA makes clear that the prior rule should be construed as the rule identified in the disapproval
resolution. If Congress intended to prohibit an agency from issuing a new rule that is
substantially the same as any part of a prior rule nullified by a disapproval resolution, it could
have said so. That is not the language it chose.
Petitioners prognosticate that this construction would make a disapproval resolution
“easy to circumvent” by reissuance of “any of the individual parts of [a] disapproved rule.”
Petitioners’ Br. 54; see Dissenting Op. at 41-42 (similarly arguing that our construction would
allow agencies to “easily circumvent” congressional disapprovals). Such a prediction does not
overcome the Act’s plain text. Even if it were material to our disposition, it is unfounded.
Congress can resolve this concern by passing resolutions with specific language. The CRA gives
Congress ample opportunity to identify specific rules in its disapproval resolutions. See 5 U.S.C.
§ 802(a). As the FCC notes, moreover, Petitioners offer a far more anomalous construction of
the CRA. Under their view of the Act, the FCC would be prohibited from promulgating an
entire compendium of rules contained within the 2016 Order, or any other disapproved-of
omnibus order. Such a prohibition could encompass the narrowest, most anodyne “agency
statement[s] of general or particular applicability and future effect,” including functional
provisions such as definitions. Id. § 551(4). We cannot accept this atextual and anomalous
construction of the CRA.
Accordingly, under the CRA’s plain text, we must compare the 2024 Order to the entire
2016 Order and determine whether they are substantially the same. Id. § 801(b). The term
“substantially” means “[f]ully, amply; to a great extent or degree; considerably, significantly,
much.” Substantially, Oxford English Dictionary (2012 ed. Oxford Univ. Press). The 2024
Order is far from “fully,” “considerably,” or “significantly” the same as the 2016 Order. The
2016 Order was far more expansive, imposing a broad array of privacy rules on broadband
Internet access services. The data breach notification requirements were a mere subset of the
broader compendium of privacy rules in that Order. The 2024 Order, by contrast, addresses only
data breach reporting requirements. The two rules are not substantially the same.
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Finally, even if we were to adopt Petitioners’ construction and directly compare the 2016
reporting requirements with the 2024 reporting requirements, we still would conclude that the
two rules are not substantially the same. There are notable differences between the two sets of
reporting requirements. For example, unlike the 2016 Order, the 2024 Order extends its
reporting requirements to TRS providers. Data Breach Reporting Requirements, 89 Fed. Reg. at
9981-89. There are also small but meaningful differences between the substantive obligations
imposed by the two sets of requirements. As the FCC notes, the 2024 requirements are
materially less prescriptive regarding the content and manner of customer notice. Granting
leeway to effectively provide notice, the 2024 Order requires only “sufficient information so as
to make a reasonable customer aware that a breach occurred on a certain date, or within a certain
estimated timeframe, and that such a breach affected or may have affected that customer’s data.”
Id. at 9980.
The 2016 Order requirements, in contrast, included written or electronic notification of a
breach, a description of the data exposed and the date range of the breach, information the
customer could use to contact the telecommunications carrier to inquire about the breach, and
instructions for notifying federal authorities and law enforcement. Protecting Priv. of Customers
of Broadband, 31 FCC Rcd. at 14085. The two Orders also define the term “breach”
differently—only the 2024 Order includes an exception exempting “good-faith acquisition[s] of
covered data by an employee or agent of a carrier where such information is not used improperly
or further disclosed.” Data Breach Reporting Requirements, 89 Fed. Reg. at 9971. Even under
Petitioners’ conception of the CRA, the regulations are not “substantially the same.” See Safari
Club Int’l v. Haaland, 31 F.4th 1157, 1170 (9th Cir. 2022) (rejecting the contention that two
rules were substantially the same in part because the rules were not “substantively identical”).
We therefore conclude that the FCC’s issuance of the 2024 Order did not violate the
CRA.
III. CONCLUSION
For the foregoing reasons, we DENY the petitions for review.
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_________________
DISSENT
_________________
GRIFFIN, Circuit Judge, dissenting.
For two independent reasons, the FCC’s new data-breach-reporting rule is unlawful and
should be set aside. First, Congress and the President expressly disapproved a similar rule in
2017, foreclosing this new version under the Congressional Review Act. And second, neither
statute the FCC relies on authorizes the rule. Because the majority opinion upholds this doubly
unlawful rule, I respectfully dissent.
I concur in the majority’s rulings that we have jurisdiction to hear the consolidated
petitions for review and to review the claim under the Congressional Review Act. Further, I join
our court’s holding that 47 U.S.C. § 222 does not authorize the rule.
I.
Under the Administrative Procedure Act (APA), we must “hold unlawful and set aside
agency action” that is “in excess of statutory jurisdiction, authority, or limitations, or short of
statutory right.” 5 U.S.C. § 706(2)(C). Applying the APA, we “must exercise [our] independent
judgment in deciding whether an agency has acted within its statutory authority,” and we “may
not defer to an agency interpretation of the law simply because a statute is ambiguous.” Loper
Bright Enters. v. Raimondo, 603 U.S. 369, 412–13 (2024).
II.
Begin with Congress’s disapproval of a nearly identical rule related to data-breach
reporting. That disapproval bars the FCC’s new version of that rule.
A.
The Congressional Review Act (CRA) empowers Congress to oversee—and, with the
President’s assent, overturn—rules promulgated by federal agencies. See Pub. L. No. 104-121,
§ 251, 110 Stat. 868, 868–74 (1996) (codified at 5 U.S.C. §§ 801–08). Under the CRA, before
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an agency “rule” can take effect, the promulgating agency must submit to Congress a report with
the proposed rule and an analysis of the costs and benefits. 5 U.S.C. § 801(a)(1)(A)–(B). The
CRA uses the APA’s definition of “rule”: “the whole or a part of an agency statement of
general . . . applicability and future effect designed to implement, interpret, or prescribe law or
policy.” Id. § 551(4); see id. § 804(3) (providing that “[t]he term ‘rule’ has the meaning given
[to] such term in section 551”).
After receiving an agency’s report, Congress may enact a “joint resolution” of
disapproval within a defined timeframe. See id. § 802(a). The CRA specifies what that
resolution must look like with a fill-in-the-blank template, which provides: “‘That Congress
disapproves the rule submitted by the __________ relating to __________, and such rule shall
have no force or effect.’ (The blank spaces being appropriately filled in).” Id. If Congress
passes and the President signs a disapproval resolution, then the “rule shall not take effect (or
continue).” Id. § 801(b)(1). Going forward, the rule “may not be reissued in substantially the
same form, and a new rule that is substantially the same as such a rule may not be issued, unless”
Congress “specifically authorize[s]” it “by a law enacted after the date of the joint resolution
disapproving the original rule.” Id. § 801(b)(2).
Such a disapproval occurred here. Since 2007, the FCC has required telecommunications
carriers to report breaches of a statutorily defined type of data called “customer proprietary
network information” (CPNI)—technical information related to the customer’s “use of a
telecommunications service.” 47 U.S.C. § 222(h)(1); see also Implementation of the
Telecommunications Act of 1996, 22 FCC Rcd. 6927, 6929, 6943–45 (2007). But in 2016, the
FCC issued an order adopting new privacy regulations and rules to protect not only CPNI but
also “personally identifiable information” (PII). See Protecting the Privacy of Customers of
Broadband and Other Telecommunications Services, 31 FCC Rcd 13911, 13913–14 ¶¶ 1, 6
(2016). The 2016 order included many specific, discrete rules, such as requirements that
telecommunications providers inform customers “clearly and accurately . . . about what
confidential information the carriers collect” and how they use it, id. at 13914 ¶ 8; standards for
customer approval of a carrier’s use of sensitive customer information, id. at 13914–15, ¶ 9;
requirements for data security, id. at 13915, ¶ 10; and—most relevant here—data-breach-
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reporting rules requiring carriers to notify affected customers and federal authorities when there
is an unauthorized disclosure of PII, id. at 13915, ¶ 11; see also id. at 14080–81 (noting changes
to 47 C.F.R. § 64.2002(c), (f), (m)).
As required under the CRA, the FCC submitted its 2016 order to Congress. Both houses
of Congress then passed a joint disapproval resolution. See S.J. Res. 34, 115th Cong. (2017);
H.R.J. Res. 230, 115th Cong. (2017). The joint resolution provided that “Congress disapproves
the rule submitted by the Federal Communications Commission relating to ‘Protecting the
Privacy of Customers of Broadband and Other Telecommunications Services’ (81 Fed. Reg.
87274) (December 2, 2016), and such rule shall have no force or effect.” Pub. L. No. 115-22,
131 Stat. 88, 88 (2017). The President signed Congress’s disapproval resolution on April 3,
2017. See id. Consequently, the FCC rescinded the 2016 order, including the order’s version of
the data-breach-reporting rule. See Protecting the Privacy of Customers of Broadband and Other
Telecommunications Services, 82 Fed. Reg. 44118, 44122–23 (Sept. 21, 2017).
B.
At issue is whether the 2017 disapproval forecloses the 2024 data-breach-reporting rule.
All agree that, after the 2017 disapproval, Congress did not “specifically authorize[]” the 2024
rule by later-enacted legislation. 5 U.S.C. § 801(b)(2). Thus, the disapproval’s effect depends
on whether the 2024 rule is “substantially the same as” the earlier, disapproved one. Id.
Start with the many similarities between the 2016 and 2024 data-breach-reporting rules.
A table from petitioners’ brief (at 44) helps to visualize just how similar these rules are,
particularly when compared to the predecessor 2007 rule concerning breach reporting for CPNI.
2007 Rule 2016 Rule 2024 Rule
Scope
Imposes reporting
duties with respect to
CPNI
Imposes reporting duties
with respect to CPNI and
PII
Imposes reporting
duties with respect to
CPNI and PII
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Definition of
“breach”
“[W]hen a person,
without authorization or
exceeding authorization,
has intentionally gained
access to, used, or
disclosed CPNI.”
47 C.F.R. § 64.2011(e)
(2008) (emphasis
added).
“[A]ny instance in which a
person, without
authorization or exceeding
authorization, has gained
access to, used, or disclosed
customer proprietary
information.” 47 C.F.R.
§ 64.2002(c) (proposed
2016) (omits
“intentionally”).
“[W]hen a person,
without authorization
or exceeding
authorization, gains
access to, uses, or
discloses covered
data.” 47 C.F.R.
§ 64.2011(e)(1) (2024)
(omits
“intentionally”).
Definition of
protected
data
Limited to “CPNI”
only. 47 C.F.R.
§ 64.2011(e) (2008).
“Customer proprietary
information” includes
“CPNI” and “PII.”
47 C.F.R. § 64.2002(f)
(proposed 2016) (emphasis
added).
“Covered data”
includes “CPNI” and
“personally
identifiable
information.”
47 C.F.R.
§ 64.2011(e)(2) (2024)
(emphasis added).
State of mind
of the party
responsible
for the
breach
Applies only where a
person “intentionally”
accesses or discloses
covered data without
authorization.
47 C.F.R. § 64.2011(e)
(2008).
Omits the requirement of
“intentional[]” access or
disclosure. See 47 C.F.R.
§ 64.2002(c) (proposed
2016).
Omits the requirement
of “intentional[ ]”
access or disclosure.
See 47 C.F.R.
§ 64.2011(e)(1)
(2024).
Agencies to
be notified
FBI and Secret Service.
47 C.F.R. § 64.2011(b)
(2008).
FBI, Secret Service, and
FCC. 47 C.F.R.
§ 64.2006(b)–(c) (proposed
2016).
FBI, Secret Service,
and FCC.
47 C.F.R. § 64.2011(a)
(2024).
Timeline for
customer
notification
No timeline. 47 C.F.R.
§ 64.2011(c) (2008).
“30 calendar days after the
carrier reasonably
determines that a breach
has occurred.” 47 C.F.R.
§ 64.2006(a) (proposed
2016).
“30 days after
reasonable
determination of a
breach.” 47 C.F.R.
§ 64.2011(b) (2024).
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In response, the majority points to minor, technical differences between the 2016 and
2024 data-breach-reporting rules, such as differences in what information must be included in
breach notifications and how many customers must be affected to trigger reporting requirements.
But such differences are inconsequential: The rules, adopting nearly identical regimes for
reporting breaches of customer PII, are “substantially the same.” 5 U.S.C. § 801(b)(2). To hold
otherwise is to give administrative agencies an obvious way to circumvent the CRA—just make
minor, technical changes to a previously disapproved rule.
Because the 2024 data-breach-reporting rule is “substantially the same” as the one
Congress disapproved in 2017, the CRA blocks the new rule.
C.
But the majority directs our attention elsewhere. It asserts that, instead of focusing on the
similarities between the specific breach-reporting rules, we should instead compare the entirety
of the FCC’s 2016 and 2024 orders, which included the breach-reporting rules and many other
discrete rules.
That argument brings us to the heart of the CRA issue: When evaluating whether the
new rule is “substantially the same as” the earlier, disapproved one, id., do we focus on the “the
part” (the discrete breach-reporting rules) or “the whole” (the orders that included the breach-
reporting rules, as well as many others)? To put the question another way: At what level of
generality do we evaluate whether “the rule” is being “reissued in substantially the same form”?
Id.
As the majority notes, there is little precedent to guide our interpretation of the CRA.
CRA disapprovals, by their nature, are enacted in historically rare circumstances—“when there
has been a recent change in partisan control of the White House, the new President’s party has
majorities in both chambers of Congress, and there are rules from the previous administration for
which the sixty-legislative-day clock has not yet run out.” Jody Freeman & Matthew C.
Stephenson, The Untapped Potential of the Congressional Review Act, 59 Harv. J. on Legis. 279,
286 (2022). For this reason, there have been only a handful of CRA disapprovals since its 1996
enactment, id. at 286–87 & nn.32–34, and no on-point cases to guide our decision.
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Thus, this interpretative challenge begins with the text of the 2017 disapproval:
“Congress disapproves the rule submitted by the Federal Communications Commission relating
to ‘Protecting the Privacy of Customers of Broadband and Other Telecommunications Services’
(81 Fed. Reg. 87274) (December 2, 2016), and such rule shall have no force or effect.” 131 Stat.
at 88. By the resolution’s plain terms, it cited to the entire 2016 order (i.e., the whole). So, at
first blush, this text favors the majority’s view.
But by disapproving the whole 2016 order, Congress disapproved of each of its
constituent parts. After all, the CRA defines a “rule” as “[t]he whole or a part of an agency
statement of general . . . applicability and future effect designed to implement, interpret, or
prescribe law or policy.” 5 U.S.C. § 551(4) (emphasis added); see id. § 804(3). Therefore, the
effect of congressional disapproval of the rule is also disapproval of its parts. Although the
majority asserts that Congress could have made line-by-line disapprovals of the specific rules it
wished to reject, the CRA neither requires such specificity nor allows a line-item veto. There is
no reason to subject congressional disapprovals of agency action to a clear-statement rule.
Quite to the contrary, our interpretation of the CRA ought to elevate the will of Congress
over that of an administrative agency. It is our elected representatives, not unelected
commissioners, whom the Constitution vests with legislative power. See Consumers’ Rsch., 145
S. Ct. at 2496. True, Congress can “seek assistance” from agencies by making limited
delegations of rulemaking authority, id. at 2496–97 (citation modified), but as the CRA makes
clear, Congress can and does rein in that authority when it disagrees with what an agency has
done. We should ensure that legislative power remains where the Constitution put it—with
Congress. And thus we must “avoid rendering what Congress has plainly done”—here,
disapproving rules—“devoid of reason and effect.” Great-W. Life & Annuity Ins. Co. v.
Knudson, 534 U.S. 204, 217–18 (2002).
The majority’s exclusive focus on the entire order would allow administrative agencies to
easily circumvent Congress’s disapproval. For instance, if the FCC issued an order adopting
four discrete rules (Rules A, B, C, and D) and Congress disapproved it, then, under the
majority’s logic, the FCC could skirt the disapproval by readopting Rules A and B in one order
and Rules C and D in another. Neither of those new orders, under the majority’s interpretation
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of the CRA, would be “substantially the same” as the one that Congress disapproved. That
interpretation, rather than giving effect to congressional intent, merely encourages creative ways
to flaunt it.
The majority responds that it would be an “anomalous construction of the CRA” if a
disapproval prevented an agency from re-promulgating any “rule” in a disapproved order, which
could include “the narrowest, most anodyne” of agency statements like “definitions.” But that
argument has several flaws. First, depending on the circumstances, it is far from a clear that
something like a definition qualifies as a “rule”—a “statement of general . . . applicability and
future effect designed to implement, interpret, or prescribe law or policy.” 5 U.S.C. § 551(4);
see id. § 804(3). Second, the CRA includes an exception for inconsequential, procedural
language or rules—it excepts any “rule of agency organization, procedure, or practice that does
not substantially affect the rights or obligations of non-agency parties.” Id. § 804(3)(C). Third,
and most importantly, we ought not usurp legislative power from Congress and give it to an
administrative agency on grounds of a purportedly “anomalous” reading of a statute. If Congress
disapproved an order but later wants to restore the agency’s authority to enact rules within that
order, it is Congress’s prerogative to confer that power through later-enacted legislation. See id.
§ 801(b)(2). There is nothing “anomalous” about such a reading—it correctly assumes that the
legislative power, and the authority to delegate that legislative power, rests with Congress. See
U.S. Const. art. I, § 1.
D.
To hold that Congress’s 2017 disapproval does not bar this rule is to render that
disapproval meaningless and to shift legislative power from Congress to an administrative
agency. Cf. Loper Bright, 603 U.S. at 411–13 (correcting Chevron’s improper shift of judicial
power to administrative agencies). I interpret the CRA and the 2017 disapproval in a way that
preserves Congress’s ability to give agencies only those powers it wishes to confer. Thus, in my
view, Congress’s disapproval of the FCC’s 2016 rule bars the FCC’s 2024 data-breach-reporting
rule because the two rules are “substantially the same.”
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III.
There is another reason to set the rule aside. The FCC claims that two statutes authorize
the rule—47 U.S.C. §§ 201(b) and 222(a). However, neither does. Because the majority and I
agree that § 222(a) does not authorize it, I focus on where we disagree: § 201(b).
Section 201(b) provides in relevant part:
All charges, practices, classifications, and regulations for and in connection with
[a] communication service [by wire or radio], shall be just and reasonable, and
any such charge, practice, classification, or regulation that is unjust or
unreasonable is declared to be unlawful . . . .
Id. § 201(b) (emphases added). At issue is whether the regulated activity here—data-breach-
notification practices with respect to customers’ PII—is a “practice[] . . . in connection with [a]
communication service,” id.; see also Data Breach Reporting Requirements, 38 FCC Rcd.
12523, 12584 n.446 (2023).
When, as here, a statute does not “expressly confer[] discretion on the agency,”
Moctezuma-Reyes v. Garland, 124 F.4th 416, 420, 422 (6th Cir. 2024), we use our “traditional
tools of statutory construction” to determine the scope of an agency’s power,” Loper Bright,
603 U.S. at 401. “[S]tatutes, no matter how impenetrable, do—in fact, must—have a single, best
meaning.” Loper Bright, 603 U.S. at 400. Indeed, “[t]hat is the whole point of having written
statutes; ‘every statute’s meaning is fixed at the time of enactment.’” Id. (citation omitted); see
also In re MCP No. 185, 124 F.4th 993, 1001 (6th Cir. 2025). “So instead of declaring a
particular party’s reading ‘permissible’ in such a case, courts use every tool at their disposal to
determine the best reading of the statute and resolve the ambiguity.” Loper Bright, 603 U.S. at
400.
A.
Statutory interpretation begins with the text. I agree with the majority that the text,
“practice[] . . . in connection with,” is facially broad. In some sense, everything a
telecommunications carrier does—from laying fiber-optic cable to providing employees with
healthcare benefits—is an activity in furtherance of, and thus a “practice in connection with,” the
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communication service the carrier provides. But our reading of that ambiguous phrase cannot be
so literal as to be all-encompassing. Cf. Cal. Div. of Lab. Standards Enf’t v. Dillingham Constr.,
N.A., Inc., 519 U.S. 316, 335 (1997) (Scalia, J., concurring) (opining that broad statutory
language can provide “an illusory test” because, in some sense, “everything is related to
everything else”). All agree that the FCC may not invoke § 201(b) to regulate “all carrier
business activities.”
Instead of pretending that the plain text “in connection with” provides any meaningful
limitation on its own, we must employ tools of statutory construction to understand the statute’s
limits and determine whether it permits the FCC to dictate to carriers when, how, and to whom
they must report breaches of customer PII.
Consider first how the canon of noscitur a sociis—that a word is “known by the company
it keeps”—narrows the term “practices.” See Gustafson v. Alloyd Co., 513 U.S. 561, 575 (1995).
In the statute, the term “practices” appears in a group with “charges,” “classifications,” and
“regulations.” These terms all address conduct that is inherent in or necessary for a carrier’s
provision of communication services, e.g., setting rates or classifying services.
By comparison, reporting breaches of customer PII is an activity much farther afield from
providing communication services. True, carriers collect and store such data as part of their
provision of services, so perhaps those activities (PII collection and storage) are inherent in or
necessary for the provision of communication services. But the data-breach-reporting rule does
not purport to govern how carriers collect or store PII; rather, it regulates whether and how
carriers report to customers and the government when stored PII is compromised.
Terms like “charges,” “classifications,” and “regulations” come nowhere close to
encompassing data-breach reporting—an activity unnecessary for providing communication
services. To hold that one term in the statutory foursome reaches such a tangentially related
activity gives that term far more expansive meaning than the others and thus violates the canon
of noscitur a sociis. See id.
The majority opinion brushes this canon aside, asserting that noscitur a sociis “cannot be
used to ‘rob’ the plain statutory text of its independent and ordinary significance.”
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(Citing Graham Cnty. Soil & Water Conservation Dist. v. U.S. ex rel. Wilson, 559 U.S. 280, 288
(2010)). But what “independent and ordinary significance” does § 201(b) provide? The
majority offers no limiting principle other than the vague qualifier that the practice at issue must
“have a direct connection to a carrier’s provision of communication services.” That purported
qualifier merely rephrases the statute’s ambiguous language. In my view, reporting breaches of
customer PII has no “direct connection” to the provision of communications services—certainly
not in the same sense that setting rates or classifying services does.
Nor does the FCC offer a limiting principle on a broad construction of “practices.” Faced
with the argument that a broad construction would allow it to regulate virtually anything a carrier
does in its business, the FCC responds only that its “application of Section 201(b) has no such
far-reaching ambition.” But if a broad construction would grant the FCC authority to make such
“far-reaching” regulations when it has the “ambition” to do so, that construction is incorrect. It
is, after all, up to us to “fix the boundaries” of the rulemaking authority delegated by statute. In
re MCP No. 185, 124 F.4th at 1012 (quoting Loper Bright, 603 U.S. at 395); see also FCC v.
Consumers’ Rsch., 145 S. Ct. 2482, 2496–97 (2025) (explaining that a statute delegating
rulemaking authority must have an “intelligible principle” making clear the “boundaries” of the
agency’s authority (citation omitted)).
A second canon of construction, the general/specific canon, also supports a more limited
view of § 201(b) when considered alongside 47 U.S.C. § 222. That canon provides that where a
“limited, specific authorization” exists along with a more “general authorization,” we must avoid
a construction where the general provision “swallow[s]” the specific one. RadLAX Gateway
Hotel, LLC v. Amalgamated Bank, 566 U.S. 639, 645 (2012).
Construing § 201(b) to encompass authority regarding data privacy and disclosures
violates that canon because § 222 covers those topics in detail. As the majority explains,
§ 222—titled, “Privacy of customer information”—provides a duty to protect customer
information and specifies various requirements for and exceptions to that duty. See 47 U.S.C.
§ 222(a)–(g). It is primarily concerned with CPNI, a defined category of information that is
related to a customer’s “use of a telecommunications service” and that does not encompass PII.
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See id. § 222(h)(1). As the majority states, § 222 obligates carriers “to adhere to particular
statutory requirements—and exceptions to those requirements—regarding” CPNI.
When such a detailed statute lays out such a specific framework related to “Privacy of
customer information,” it is difficult to imagine that Congress intended § 201(b)’s general
language to open the floodgates to all kinds of other rules related to carriers’ “practices”
concerning the same. Indeed, construing § 201(b) to permit all manner of regulations related to
“Privacy of customer information” not only elevates the general authorization over the specific
one but also renders § 222’s meticulous framework “superflu[ous].” RadLAX Gateway Hotel,
566 U.S. at 645.
The majority opinion claims that this canon does not apply because § 222 does not
mention “disclosure of breaches of customer PII.” Yet § 222’s silence on that topic calls for
precisely the opposite conclusion. Because § 222 provides for a specific framework related to
“Privacy of customer information,” and because § 222 does not mention PII, it follows that
Congress did not intend for the FCC to regulate the privacy of customer PII—much less mandate
reporting when PII is compromised. After all, as the majority opinion explains, “Congress
knows how to expressly reference PII when it so desires,” as demonstrated by other portions of
the Communications Act that mention PII explicitly. See Cable Communications Policy Act of
1984, Pub. L. No. 98-549, 98 Stat. 2779, 2794–95 (codified at 47 U.S.C. § 551) (imposing
certain duties on cable operators to protect subscribers’ PII); Satellite Home Viewer Extension
and Reauthorization Act of 2004, Pub. L. No. 108-447, 118 Stat. 3393, 3425–27 (codified at 47
U.S.C. § 338) (requiring satellite operators to protect subscribers’ PII).
Congress made this general/specific point even clearer by omitting a key clause from
§ 222 that would have limited § 222’s effect on § 201(b). When Congress enacted the
neighboring provision of 47 U.S.C. § 251, which concerns how carriers link their networks, it
included a so-called “[s]avings provision.” 47 U.S.C. § 251(i). That savings clause provides that
“[n]othing in this section shall be construed to limit or otherwise affect the Commission’s
authority under section 201 of this title.” Id. By omitting that clause from § 222, Congress
communicated its intent: § 222’s specific framework is what governs “Privacy of customer
information,” and we should construe that specific framework to limit the FCC’s authority under
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§ 201(b). See Me. Cmty. Health Options v. United States, 590 U.S. 296, 314 (2020) (“[W]hen
Congress includes particular language in one section of a statute but omits it in another, Congress
intended a difference in meaning.” (citation modified)).
Thus, although § 201(b)’s facially broad text is ambiguous, the applicable canons of
construction and textual clues from neighboring provisions all point to a more limited view. We
ought not construe § 201(b) as a freestanding font of regulatory authority for information-
privacy-related matters when other terms in the statute suggest a narrower construction, when a
neighboring section provides a comprehensive framework on that topic, and when that
neighboring section omits a savings clause preserving § 201(b)’s authority.
B.
Looking beyond the text and canons of construction, we look to precedent. On that score,
I agree with the majority that Global Crossing Telecommunications, Inc. v. Metrophones
Telecommunications, Inc., 550 U.S. 45 (2007), is instructive, but I read it as pointing in the
opposite direction from the majority’s holding.
Global Crossing addressed whether § 201(b)’s “unreasonable practice” prohibition
authorized an FCC regulation and subsequent determination. Id. at 55. After Congress passed
special legislation addressing cost-sharing for payphone use, the FCC promulgated a regulation
requiring carriers to reimburse payphone operators for statutorily required “free” payphone calls
at a specified amount per call. Id. at 47. The FCC then determined that “a carrier’s refusal to
pay the compensation ordered amounts to an ‘unreasonable practice’ within the terms of
§ 201(b).” Id. at 51–52.
The Court held that such a refusal fits within § 201(b)’s prohibition on “unreasonable
practice[s].” Id. at 55. It first determined that, as a textual matter, a carrier’s refusal to
compensate payphone operators despite receiving a benefit from them constituted a
“practic[e] . . . in connection with [furnishing a] communication service.” Id. (alterations in
original). It next noted that “the underlying regulated activity . . . resembles activity
that . . . communications agencies have long regulated,” such as “determin[ing] costs of some
segments of a call while requiring providers of other segments to divide related revenues.” Id. at
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55–56. “[T]he traditional, historical subject matter of § 201(b),” the Court observed, is “rate
setting and rate divisions,” providing support for the notion that the FCC could regulate cost-
sharing among carriers and payphone operators. See id. at 60. The Court concluded that because
“there is an explicit statutory scheme, and compensation of payphone operators is necessary to
the proper implementation of that scheme,” the FCC’s determination “that the failure to follow
the order is an unreasonable practice is well within its authority.” Id. at 56.
The data-breach-reporting rule here differs from the regulation upheld in Global Crossing
in two important ways. First, unlike in Global Crossing, the FCC did not enact the data-breach-
reporting rule in response to specific legislation calling for such a rule. Quite the opposite: The
rule’s authority is based solely on the vacuous language of a nearly 100-year-old statute; no
recent action from Congress called for it. See Communications Act, 48 Stat. 1064 (1934)
(codified as amended at 47 U.S.C. § 151 et seq.). Indeed, recent congressional action cuts
against enacting this rule. (See § II above.) Second, the rule expands the scope of the term
“practic[e] . . . in connection with [furnishing a] communication service,” Glob. Crossing, 550
U.S. at 55 (alterations in original), far beyond § 201(b)’s “traditional, historical subject matter”
of “rate setting and rate divisions,” id. at 60. While a regulation concerning whether carriers
must compensate payphone operators at specified amounts per call falls within the heartland of
the FCC’s authority, the same cannot be said of a requirement of reporting disclosures of
customer PII. The latter activity does not “resemble[] activity that . . . communications agencies
have long regulated.” Id. at 55–56.
For support of its expansive reading of § 201(b), the majority homes in on Global
Crossing’s string citation to FCC decisions where the agency determined other “practices” to be
unreasonable under § 201(b), such as engaging in deceptive marketing and entering exclusive
contracts with commercial building owners. See id. at 53–54. But that citation is inapposite for
two reasons.
First, the Court mentioned those other practices only to show “that the FCC has long
implemented § 201(b) through the issuance of rules and regulations.” Id. at 53. Indeed, the
Court cited those determinations as mere background before “turn[ing]” to the question of
“whether the particular FCC regulation before us lawfully implements § 201(b)’s ‘unreasonable
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practice’ prohibition.” Id. at 55. The Court certainly did not hold that those cited regulations
were valid under § 201(b)’s “single, best meaning.” See Loper Bright, 603 U.S. at 400.
Second, even assuming the validity of those other regulations under § 201(b), they
regulate activities more closely “connect[ed] with” the furnishing of communication services
than the activity of reporting breaches of customer PII. See Glob. Crossing, 550 U.S. at 55. A
carrier must market its communication service to obtain customers, and a carrier must contract
with commercial building owners to furnish communication services to their buildings. Because
these activities are “necessary” to the furnishing of communication services, there is a stronger
argument that the FCC has authority to regulate them under § 201(b). See id. at 56. By contrast,
carriers need not take any action in response to breaches of customer PII to furnish a
communication service. Thus, unlike the practices mentioned in Global Crossing, reporting
breaches of customer PII does not fall within § 201(b)’s ambit.
As for other precedent, the majority discounts an instructive case from the D.C. Circuit,
California Independent System Operator Corp. v. FERC, 372 F.3d 395 (D.C. Cir. 2004), which
interpreted similar statutory language. There, the D.C. Circuit held that the term “practice” in 16
U.S.C. § 824e(a) did not authorize the Federal Energy Regulatory Commission (FERC) “to
replace the governing board of” a utility company. Id. at 396, 399. Like the language of
§ 201(b), that statute empowers FERC to determine whether “any rule, regulation, practice, or
contract affecting [a] rate, charge, or classification” by a public utility “is unjust” or
“unreasonable.” 16 U.S.C. § 824e(a) (emphasis added). The court reasoned that FERC’s
interpretation of the term “practice” was “quite a leap” from the “more traditional sense” of
actions frequently “taken by a utility in connection with a rate” to the all-encompassing sense
that the term empowers the Commission “to reform completely the governing structure of the
utility.” Id. at 400.
That reasoning applies forcefully here. The FCC’s and majority’s expansive view of the
term “practice” is indeed “quite a leap,” id., effectively giving the FCC the green light to regulate
all manner of carrier business activities and going well beyond anything “resembl[ing]” “the
traditional, historical subject matter of § 201(b),” Glob. Crossing, 550 U.S. at 55, 60.
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C.
Finally, the majority opinion’s policy-based reasoning is both inappropriate and
unpersuasive. The majority opines that a “regulatory void” will result if the FCC cannot enact
the 2024 data-breach-reporting rule because carriers are exempt from similar requirements under
the Federal Trade Commission Act. That argument has several flaws.
First, policy arguments alone cannot save a poor reading of a statute. If the “single, best
meaning” of a statute leads to regulatory gaps, then it is for Congress, not us, to correct it. See
Loper Bright, 603 U.S. at 400.
Second, the majority opinion’s policy argument ignores other federal agencies’
regulations, based on other statutory authority, requiring data-breach reporting from
telecommunications carriers. For instance, the Securities and Exchange Commission requires
publicly traded companies to disclose “material cybersecurity incidents” on publicly filed forms.
See Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure, 88 Fed.
Reg. 51896 (Aug. 4, 2023) (codified at 17 C.F.R. §§ 229.106). And the Department of
Homeland Security has proposed a rule requiring covered entities, including those in the
communications sector, to report cybersecurity incidents to the U.S. Cybersecurity and
Infrastructure Security Agency. See Cyber Incident Reporting for Critical Infrastructure Act of
2022 Reporting Requirements, Proposed Rule, 89 Fed. Reg. 23644, 23686 (April 4, 2024); see
also U.S. Government Accountability Office, Critical Infrastructure Protection: DHS Has
Efforts Underway to Implement Federal Incident Reporting Requirements (July 30, 2024),
available at: https://www.gao.gov/assets/gao-24-106917.pdf. Thus, other federal agencies may
require carriers to report breaches of PII, even if the FCC lacks the statutory authorization to do
so.
Finally, federal regulations aside, many states require data-breach reporting to
consumers. See Security Breach Notification Laws, Nat’l Conf. of State Legislatures (last
updated Jan. 17, 2022), available at: https://www.ncsl.org/technology-and-
communication/security-breach-notification-laws (collecting “laws requiring private
businesses . . . in most states . . . to notify individuals of security breaches of information
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Nos. 24-3133/3206/3252 Ohio Telecom Ass’n, et al. v. FCC, et al. Page 51
involving personally identifiable information.”). Thus, even considering the majority’s policy
arguments, the alleged “regulatory gap” that would result if petitioners prevailed here is much
narrower than the majority suggests.
D.
For these reasons, I would hold that § 201(b) does not authorize the FCC’s data-breach-
reporting rule.
IV.
Because this unlawful rule violates the disapproval resolution passed under the CRA and
lacks statutory authorization, I would grant the petitions for review and set aside the rule.
I respectfully dissent.
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