70 Ohio St. 3d 311 | Ohio | 1994
Lead Opinion
For the following reasons, we affirm the orders of the commission.
STANDING
As a threshold matter, we must consider whether, having been denied intervention in the 1992 and 1993 cases, appellants have standing to appeal the commission’s orders authorizing Ohio Bell to offer the CLASS services. R.C. 4903.13 requires a person to have been a party in commission proceedings to appeal a commission order. See Communications Workers of Am. v. Pub. Util. Comm. (1979), 57 Ohio St.2d 76, 11 O.O.3d 244, 387 N.E.2d 230, and Harrison v. Pub. Util. Comm. (1938), 134 Ohio St. 346, 12 O.O. 316, 16 N.E.2d 943.
Appellants argue that the commission was compelled to grant them intervention under R.C. 4903.221.
II
CONSTITUTIONAL CLAIMS
A
State Action
Appellants argue that the CLASS services violate privacy rights guaranteed by the First, Fourth, and Fourteenth Amendments to the United States Constitution. Because these constitutional provisions protect individuals against deprivation of rights by the state, we must first determine whether the commission’s approval of the services is sufficient to constitute “state action” under the Fourteenth Amendment, which incorporates and applies to the states the First and Fourth Amendments. Griswold v. Connecticut (1965), 381 U.S. 479, 85 S.Ct. 1678, 14 L.Ed.2d 510; Mapp v. Ohio (1961), 367 U.S. 643, 81 S.Ct. 1684, 6 L.Ed.2d 1081; Jackson v. Metro. Edison Co. (1974), 419 U.S. 345, 349-350, 95 S.Ct. 449, 453, 42 L.Ed.2d 477, 483. See, also, Moose Lodge No. 107 v. Irvis (1972), 407 U.S. 163, 177, 92 S.Ct. 1965, 1973, 32 L.Ed.2d 627, 639-640.
Appellants rely on Pub. Util. Comm. of D.C. v. Pollak (1952), 343 U.S. 451, 72 S.Ct. 813, 96 L.Ed. 1068, for the proposition that the commission’s election to hold a formal hearing on Ohio Bell’s applications and its subsequent approval of the CLASS offerings provides the requisite nexus for state action. We disagree.
In Jackson v. Metro. Edison Co., supra, the Supreme Court questioned the Poliak decision, stating that it was unclear whether state action had actually been found or merely assumed for purposes of the constitutional analysis. 419 U.S. at 356, 95 S.Ct. at 456, 42 L.Ed.2d at 487. Refusing to find state action where a utility had terminated service for nonpayment pursuant to a tariff approved by the Pennsylvania Public Utility Commission, the court stated:
“The nature of governmental regulation of private utilities is such that a utility may frequently be required by the state regulatory scheme to obtain approval for practices a business regulated in less detail would be free to institute without any approval from a regulatory body. Approval by a state utility commission of such
The Supreme Court and lower courts have since construed Jackson’s state action analysis as focusing upon whether the government could be held “responsible” for the private conduct; here, the offering of the CLASS services and the resulting alleged privacy intrusions. See Blum v. Yaretsky (1982), 457 U.S. 991, 102 S.Ct. 2777, 73 L.Ed.2d 534, for the proposition that the state action requirement “assure[s] that constitutional standards are invoked only when it can be said that the State is responsible for the specific conduct of which the plaintiff complains [emphasis sic ],” id. at 1004, 102 S.Ct. at 2786, 73 L.Ed.2d at 546, and citing Jackson for the proposition that “a State normally can be held responsible for a private decision only when it has exercised coercive power or has provided such significant encouragement, either overt or covert, that the choice must in law be deemed to be that of the State. * * * Mere approval of or acquiescence in the initiatives of a private party is not sufficient to justify holding the state responsible for those initiatives under the Fourteenth Amendment.” Id., 457 U.S. at 1004-1005, 102 S.Ct. at 2786, 73 L.Ed.2d at 546-547. Accord Rendell-Baker v. Kohn (1982), 457 U.S. 830, 102 S.Ct. 2764, 73 L.Ed.2d 418.
Citing Blum, lower courts have refused to find state action under statutes similar to R.C. 4909.18, considering the hearing as part of a standard regulatory approval process under which the state does not initiate and is not deemed responsible for the implementation of new tariff offerings. Carlin Communication, Inc. v. S. Bell Tel. & Tel. Co. (C.A.11, 1986), 802 F.2d 1352 (upholding tariff restrictions on “900” service offerings); S. Bell Tel. & Tel. Co. v. Hamm (1991), 306 S.C. 70, 409 S.E.2d 775 (upholding approval of Caller ID).
Similarly, we do not find that the commission’s approval of the CLASS services under the standard regulatory process provided by R.C. 4909.18 is sufficient to constitute state action. The commission did not order Ohio Bell to implement the CLASS offerings; that decision was initiated by and remained with the company throughout these lengthy proceedings. Indeed, our decision dismissing ODVN’s appeal of the 1990 case when it was unclear whether Ohio Bell would choose to institute the services under the commission’s restrictions emphasizes the private
B
Privacy Rights
Even assuming that the threshold state action requirement were met, appellants’ merit arguments would fare no better. In Smith v. Maryland (1979), 442 U.S. 735, 99 S.Ct. 2577, 61 L.Ed.2d 220, the Supreme Court held that individuals have no reasonable expectation of privacy in a telephone number, and that Fourth Amendment protections do not extend to the installation and use of a pen register to record numbers dialed from a telephone. The court reasoned:
“Telephone users, in sum, typically know that they must convey numerical information to the phone company; that the phone company has facilities for recording this information; and that the phone company does in fact record this information for a variety of legitimate business purposes. Although subjective expectations cannot be scientifically gauged, it is too much to believe that telephone subscribers harbor any general expectation that the numbers they dial will remain secret. * * * [E]ven if petitioner did harbor some subjective expectation that the phone numbers he dialed would remain private, this expectation is not ‘one that society is prepared to recognize as reasonable’. Katz v. United States, 389 U.S. [347] at 361 [88 S.Ct. 507 at 516, 19 L.Ed.2d 576 at 588 (1967) ].” Id., 442 U.S. at 743, 99 S.Ct. at 2581-2582, 61 L.Ed.2d at 228-229 (Harlan, J., concurring).
In Hamm, supra, the South Carolina Supreme Court relied on Smith in rejecting a similar constitutional challenge to Caller ID (“The telephone number from which a call is placed [when Caller ID is used], like the phone numbers of the calls placed [when a pen register is used], is numerical information passed through the telephone network, voluntarily transmitted as a result of call placement. Caller ID service simply does not violate any right that rises to the level of constitutional protection.” Id., 306 S.C. at 78, 409 S.E.2d at 780). We find Smith controlling as to appellants’ Fourth Amendment claim.
Appellants also argue that the CLASS offerings violate an independent constitutional right against disclosure of personal information, citing Whalen v. Roe (1977), 429 U.S. 589, 97 S.Ct. 869, 51 L.Ed.2d 64. See, also, Nixon v. Admr. of
Moreover, under the balancing test employed in cases that have recognized a general right to informational privacy, we find no constitutional infringement. That test, which traditionally balances the alleged privacy intrusion against the legitimate purpose served by the challenged conduct under an intermediate standard of review, is made more complex in this case, where the privacy interests of both the opponent (calling party) and proponent (call recipient) of the services are affected.
As to Caller ID, we conclude that the interests served by the service would outweigh the threatened privacy intrusions. Significantly, of those comparatively limited instances in which a caller must make a particularly sensitive or potentially embarrassing call, the free per-call and per-line blocking features would safeguard against disclosure. Indeed, a caller who does not activate that feature would be deemed to consent to the disclosure of the telephone number and, thus, could not assert the privacy interests.
As noted previously, Automatic Callback does not itself disclose the number of the calling party and per-line or per-call blocking is not an option. Rather, disclosure of the calling party’s telephone number occurs only through indirect means. For disclosure to occur: (1) the call recipient must subscribe to Automatic Callback; (2) the recipient must activate the callback before another call is received; (3) the recipient must subscribe to a measured local service (which is billed much like long distance calls, e.g., on the basis of number and duration of calls [unlike unlimited flat-rate service]); and (4) the recipient must request bill detailing (the individual listing of such calls on the recipient’s bill).
Ill
ELECTRONIC COMMUNICATIONS PRIVACY ACT
Appellants also contend that the CLASS services violate the Electronic Communications Privacy Act (“ECPA”), Chapter 206, Title 18, U.S.Code. Section 3121, Title 18, U.S.Code provides:
“(a) In general. — Except as provided in this section, no person may install or use a pen register or a trap and trace device without first obtaining a court order under section 3123 of this title or under the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.).
“(b) Exception. — The prohibition of subsection (a) does not apply with respect to the use of a pen register or a trap and trace device by a provider of electronic or wire communication service—
“(1) relating to the operation, maintenance, and testing of a wire or electronic communication service or to the protection of the rights or property of such provider, or to the protection of users of that service from abuse of service or unlawful use of service; or
“(2) to record the fact that a wire or electronic communication was initiated or completed in order to protect such provider, and other provider furnishing service toward the completion of the wire communication, or a user of that service, from fraudulent, unlawful or abusive use of service; or
“(3) where the consent of the user of that service has been obtained.” (Emphasis added.)
The ECPA defines a “pen register” as a “device which records or decodes electronic or other impulses which identify the numbers dialed or otherwise transmitted on the telephone line to which such device is attached,” and a “trap and trace device” as one “which captures the incoming electronic or other
Appellants rely on Barasch v. Pennsylvania Pub. Util. Comm. (1992), 529 Pa. 523, 605 A.2d 1198, in which the Pennsylvania Supreme Court, under state law nearly identical to Section 3121, Title 18, U.S.Code, considered the Caller ID display terminal in the subscribers’ possession to be a “trap and trace” device that “captures, displays, and stores for future retrieval the telephone number of the calling party.” Id. at 531, 605 A.2d at 1201. Other authority reaches the same conclusion
As to the issue of consent, the Barasch court rejected Caller ID under a provision of the Pennsylvania Wiretap Act that required consent to any form of interception to be obtained from all parties. The court found the lack of consent of the calling party to be fatal.
We agree with the analysis of the U.S. Department of Justice that “Chapter 206 contemplates that a trap and trace device will be ‘attached’ to just one telephone line [,] See 18 U.S.C. §§ 3123(b)(1)(A), (b)(1)(C), (d)(2), 3124(b)[;] * * * that there will be only one ‘party with respect to whom the installation and use is to take placet,]’ Id. § 18 U.S.C. 3124[a], [b])[;] * * * [and that] the Caller ID subscriber, is thus the ‘user’ referred to in section 3121(b)(3).” (Emphasis sic.) U.S. Dept. of Justice Memorandum, supra (fn. 8), at 6.
Accordingly, we affirm the commission’s finding that a subscriber, by purchasing the CLASS service, consents to the trap and trace, and thus that such services are not prohibited under the ECPA.
IV
RATE INCREASE
Appellants argue that the potential for disclosure of a non-published subscriber’s number diminishes the level of service to that customer and that, without a concomitant decrease in the charge for a non-published number, such subscribers will suffer an implicit rate increase upon the offerings’ approval. In effect, appellants construe the applications for authority to offer the CLASS services as applications to increase the rates for non-published service under R.C. 4909.18. Appellants request the court to remand these cases to the commission for notice and hearing on this issue under the procedures set forth in R.C. 4909.19 when an application is for an increase in rates. Appellants further request that the commission’s orders approving the CLASS offerings be vacated pending the commission’s determination on this issue.
Appellants’ novel position is without merit. Ohio Bell simply did not propose to increase the charge for a non-published number. Although the potential effect of the new offerings on the “value” of existing non-published service may be a basis
V
OCC’S MISCELLANEOUS ARGUMENTS
Finally, OCC seeks remand of these cases to cure three alleged defects in the 1992 and 1993 orders. First, it contends that the commission’s order violates R.C. 4903.09 by failing to set forth sufficient findings and reasoning to support its conclusion that Caller ID should be approved with flexible pricing.
Second, OCC argues that the initial order and entry on rehearing in the 1990 case bind the commission as to the form of blocking and customer education under which Automatic Callback may be offered. See Consumers’ Counsel v. Pub. Util. Comm. (1984), 10 Ohio St.3d 49, 50-51, 10 OBR 312, 313, 461 N.E.2d 303, 304 (“When the commission has made a lawful order, it is bound by certain institutional constraints to justify that change before such order may be changed or modified.”). Under the unique procedural posture of these cases, we are
■ Finally, OCC alleges that the commission improperly relied upon the results of a Harris Poll submitted by Ohio Bell after the close of the evidentiary hearing in the 1990 cases. However, OCC has provided no direct evidence that the commission improperly relied upon the poll, and the commission orders expressly state that it relied solely upon the evidence of record in reaching its determination. We conclude that OCC has failed in its burden on this issue.
For the foregoing reasons, we affirm the commission’s order.
Order affirmed.
. R.C. 4903.221 provides:
“Any other person who may be adversely affected by a public utilities commission proceeding may intervene in such proceeding, provided:
“(A) That such other person files a motion to intervene with the commission no later than:
“(1) Any specific deadline established by order of the commission for purposes of a particular proceeding; or, if no such deadline is established;
“(2) Five days prior to the scheduled date of hearing.
“The public utilities commission may, in its discretion, grant motions to intervene which are filed after the deadlines set forth in divisions (A)(1) and (2) of this section for good cause shown.
“(B) That the commission, in ruling upon applications to intervene in its proceedings, shall consider the following criteria:
“(1) The nature and extent of the prospective intervenor’s interest;
“(2) The legal position advanced by the prospective intervenor and its probable relation to the merits of the case;
“(3) Whether the intervention by the prospective intervenor will unduly prolong or delay the proceedings;
“(4) Whether the prospective intervenor will significantly contribute to full development and equitable resolution of the factual issues.”
. Appellants also argue that the CLASS offerings violate Section 14, Article I of the Ohio Constitution. We have recognized that this provision is virtually identical to the Fourth Amendment to the federal Constitution and refuse to impose greater restrictions under it. See State v. Geraldo (1981), 68 Ohio St.2d 120, 22 O.O.3d 366, 429 N.E.2d 141; Stone v. Stow (1992), 64 Ohio St.3d 156, 164, 593 N.E.2d 294, 299-300, at fn. 3.
. See, generally, Smith, We’ve Got Your Number! (Is it Constitutional to Give it Out?): Caller Identification Technology and the Right to Informational Privacy (1989), 37 U.C.L.A.L.Rev. 145.
. Other options to avoid potential disclosure would include placing the call from another phone, including a pay phone, or placing the call with operator assistance.
. Appellants also contend that the CLASS offerings violate their privacy rights guaranteed by the First Amendment to the United States Constitution, relying on NAACP v. Alabama (1958), 357 U.S. 449, 78 S.Ct. 1163, 2 L.Ed.2d 1488, and contending that disclosure of their “associations” (ie., with domestic violence shelters) could result in “reprisals” against domestic violence victims. However, NAACP protects “ ‘freedom of association for the purpose of advancing ideas and airing grievances,’ ” Whalen, supra, 429 U.S. at 604, 97 S.Ct. at 879, 51 L.Ed.2d at 76, fn. 32, quoting Bates v. Little Rock (1960), 361 U.S. 516, 523, 80 S.Ct. 412, 416, 4 L.Ed.2d 480, 485. Appellants have made no such allegation on this record.
. See Congressional Research Service, Caller Identification Telephone Equipment and the Electronic Communications Privacy Act (1989), reprinted in 136 Cong.Rec. E784 (Mar. 22,1990); North Carolina Dept. of Justice, Memorandum re Caller I.D. Telephone Equipment and Legislation Controlling Trap and Trace Devices (July 17, 1990).
. See Hamm, supra; Rules and Policies Regarding Calling Number Identification Service — Caller ID (NPRM), CC Docket No. 91-281, FCC 94-59 (Mar. 29,1994), Appendix D (U.S. Dept. of Justice Memorandum — Oct. 23, 1993); 1990 Md.Atty.Gen.Ops. (Oct. 26, 1990) 56.
. Caller ID was not proposed with blocking, and the court expressly offered no opinion as to the legality of Caller ID with free “per call” blocking. The Pennsylvania legislature subsequently amended its statutes to permit Caller ID if offered with per-call and per-line blocking. See 66 Pa.Cons.Stat.Ann. 2906 (1993).
. Flexible pricing merely sets a minimum and maximum price for the service, and provides the utility with the authority to charge, and change, any price within that range without prior commission approval.
Concurrence in Part
dissenting in part and concurring in part. I respectfully disagree with the majority’s analysis of the automatic callback service.
The approval process at issue in this case constituted “state action” for purposes of constitutional analysis. The United States Supreme Court in Pub. Util. Comm. of D.C. v. Pollak (1952), 343 U.S. 451, 72 S.Ct. 813, 96 L.Ed. 1068, required “a sufficiently close relation” between a service being offered and government for there to be state action. Id. at 462, 72 S.Ct. at 820, 96 L.Ed. at 1077. Ohio law requires the PUCO to approve the proposed service before it can be offered. R.C. 4909.18. This review and approval process means that a service, while originating in the private sector, is adopted by the PUCO — a state organization. Thus, the plan, when approved by the PUCO, becomes state action.
The violation of privacy rights caused by the automatic callback service outweighs the profitmaking motives of Ohio Bell. Thus, I would find this state action to be unconstitutional. The automatic callback service provides no mechanism for victims of domestic violence to prevent their abusers from participating in this service. Abusers who are called by their victims can obtain their victims’ telephone numbers with the use of the automatic callback service. Armed with this number, an abuser could ascertain the location of his victim, which, in turn,
The minimal level of utility derived from the offering of an automatic callback service hardly justifies the haunting that abusers can direct to their victims thanks to this service.