{"id":7902,"date":"2025-08-15T11:23:59","date_gmt":"2025-08-15T16:23:59","guid":{"rendered":"https:\/\/cyberscoop.com\/?p=85587"},"modified":"2025-08-15T11:23:59","modified_gmt":"2025-08-15T16:23:59","slug":"court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2025\/08\/15\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector\/","title":{"rendered":"Court upholds FCC data breach reporting rules on telecom sector"},"content":{"rendered":"<p><head> <meta charset=\"UTF-8\"> <meta name=\"viewport\" content=\"width=device-width, initial-scale=1\"> <meta name=\"robots\" content=\"index, follow, max-image-preview:large, max-snippet:-1, max-video-preview:-1\"> <!-- This site is optimized with the Yoast SEO Premium plugin v24.5 (Yoast SEO v24.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ --> <title>Court upholds FCC data breach reporting rules on telecom sector | CyberScoop<\/title> <meta 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<\/div>\n<\/div>\n<section id=\"stickybar\" class=\"stickybar stickybar--newsletter js-stickybar\" readability=\"0.82\"> <button class=\"stickybar__close js-stickybar-close\" aria-controls=\"stickybar\"> <svg class=\"icon icon--close\" width=\"21\" height=\"22\" viewBox=\"0 0 21 22\" fill=\"none\"><path d=\"m.822.518-.805.805L9.695 11 .017 20.678l.805.805 9.678-9.678 9.677 9.678.806-.805L11.305 11l9.678-9.677-.806-.805-9.677 9.677L.822.518Z\" fill=\"currentColor\" \/><\/svg> <span class=\"visually-hidden\">Close<\/span> <\/button> <\/section>\n<article class=\"single-article content\">\n<div class=\"single-article__container js-single-article-content\">\n<header class=\"single-article__header \" readability=\"26.262975778547\">\n<div class=\"single-article__header-content\" readability=\"35.69696969697\">\n<ul class=\"single-article__eyebrow\">\n<li class=\"single-article__category\"> <a class=\"single-article__category-link\" href=\"https:\/\/cyberscoop.com\/court-upholds-fcc-data-breach-regulations-pii\/\"> <span>Government<\/span> <\/a> <\/li>\n<\/ul>\n<p> The rules, introduced during the Biden administration, would force telecoms to notify customers when their personally identifiable information is exposed in a hack. <\/p>\n<p> <!-- Listen to this article section --> <!-- Audio Element --><br \/>\n<audio id=\"audio-player\" src=\"https:\/\/wp-tts-cdn.api.scpnewsgrp.com\/cyberscoop\/85587\/english.openai.mp3\"><\/audio> <\/p>\n<div readability=\"11\">\n<div>\n<p>Listen to this article<\/p>\n<p> <!-- Countdown Timer --> <\/p>\n<p>0:00<\/p>\n<\/p><\/div>\n<p> <!-- Tooltip --> <\/p>\n<p> <span id=\"tts-tooltip\">Learn more.<\/span> <span> This feature uses an automated voice, which may result in occasional errors in pronunciation, tone, or sentiment. <\/span> <\/p>\n<\/div>\n<p> <!-- End of audio player --> <\/div>\n<div class=\"single-article__cover-wrap\">\n<figure class=\"single-article__cover\"> <img data-recalc-dims=\"1\" fetchpriority=\"high\" width=\"640\" height=\"426\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector.jpg?resize=640%2C426&#038;ssl=1\" class=\"single-article__cover-image wp-post-image\" alt decoding=\"async\" fetchpriority=\"high\" srcset=\"https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector-2.jpg 4500w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector-2.jpg?resize=300,200 300w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector-2.jpg?resize=768,511 768w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector-2.jpg?resize=1024,682 1024w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector-2.jpg?resize=1536,1023 1536w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector-2.jpg?resize=2048,1364 2048w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector-2.jpg?resize=600,399 600w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector-2.jpg?resize=252,168 252w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector-2.jpg?resize=506,337 506w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector-2.jpg?resize=1014,675 1014w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector-2.jpg?resize=1266,843 1266w\" sizes=\"(max-width: 1014px) 100vw, 1014px\"><figcaption> A view of the commission&#8217;s hearing room before a hearing at the Federal Communications Commission in 2017. (BRENDAN SMIALOWSKI\/AFP via Getty Images) <\/figcaption><\/figure>\n<\/p><\/div>\n<\/header>\n<div class=\"single-article__content\">\n<div class=\"single-article__content-inner has-drop-cap\"> <html readability=\"92.088662962525\"><body readability=\"185.26675094817\"><\/p>\n<p>A federal court has upheld the Federal Communications Commission\u2019s authority to impose stricter data breach notification regulations on the telecom sector, including requirements that the industry notifies customers when their personally identifiable information is exposed in a hack.<\/p>\n<p>In a 2-1 decision, the U.S. Sixth Circuit Court of Appeals concluded that the FCC did not overstep its statutory authority last year when it updated existing data breach notification requirements to require telecoms to report on any customer PII lost during a data breach.<\/p>\n<p>In its <a href=\"https:\/\/www.opn.ca6.uscourts.gov\/opinions.pdf\/25a0224p-06.pdf\">opinion<\/a>, the majority wrote that \u201cbased on the statutory text, context, and structure, [existing law] gives the FCC the authority to impose reporting requirements in the event of a data breach of customer PII.\u201d<\/p>\n<p>In 2024, the FCC under the Biden administration <a href=\"https:\/\/www.nelsonmullins.com\/insights\/alerts\/privacy_and_data_security_alert\/all\/fcc-updates-security-breach-rules-for-telecommunications-service-breaches\">updated federal regulations<\/a> on the telecom sector when reporting on the impact of a data breach.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>Under previous rules, telecoms were only required to report to the government when a breach exposed customer proprietary network information, which includes any customer information concerning the quantity, technical configuration, type, destination, location and amount of use of a telecommunication service.<\/p>\n<p>The 2024 order concluded that telecoms are also responsible for safeguarding customer PII \u2014 a customer\u2019s name, address, date of birth, etc. \u2014 along with \u201cany information that is linked or reasonably linkable to an individual or device.\u201d&nbsp;<\/p>\n<p>The expanded regulations were quickly challenged in court by trade groups representing telecommunications firms, including the Ohio Telecom Association, the Texas Association of Business and USTelecom.<\/p>\n<p>In a consolidated case before the Sixth Circuit, the groups argued&nbsp; that the FCC lacked authority under the two laws they cited to include customer PII in data breach reporting requirements. They further argued that the 2024 order violated the Congressional Review Act, as Congress had formally moved to block a larger set of FCC Net Neutrality rules in 2016 that included a similar section on data breach notification.<\/p>\n<p>In its decision, the court\u2019s majority disagreed with the telecom group\u2019s argument that the FCC lacked the legal power to regulate poor data privacy practices or to make rules that go beyond information specified by Congress in the Communications Act.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>But the court concluded that Congress clearly intended for the federal government, and specifically the FCC, to regulate telecoms\u2019 data privacy. Laws like the Federal Trade Commission Act not only give the FTC similar authority to regulate inadequate data privacy among other industries, they also specifically exempt telecommunications carriers because that industry\u2019s data privacy regulation falls under FCC jurisdiction.<\/p>\n<p>\u201cContrary to Petitioners\u2019 assertions, this is not a situation in which an agency has \u201cclaim[ed] to discover in a long-extant statute an unheralded power to regulate \u2018a significant portion of the American economy,\u2019\u201d the majority wrote. \u201cRather, it is part of the FCC\u2019s longstanding, flexible, and incremental application of [existing law] to data regulation in the evolving environment of data collection and retention.\u201d<\/p>\n<p>Former FCC officials and legal experts told CyberScoop that while the ultimate fate of the regulation is still uncertain, the Sixth Circuit\u2019s decision is a clear win for the agency\u2019s authority to regulate cybersecurity and data privacy.<\/p>\n<p>In an interview with CyberScoop, Loyaan Egal, former chief of the FCC\u2019s enforcement bureau, said he believes \u201cmost people thought this new expansion of data breach notification requirements was more than likely probably going to be rejected by the court, and surprisingly it wasn\u2019t.\u201d<\/p>\n<p>Telecom groups could appeal the ruling to the Supreme Court. Current FCC Chair Brendan Carr was one of two commissioners to vote against the data breach notification rules last year. However, after taking the gavel this year, Carr has not moved to rescind the rules, and the FCC continues to vigorously defend their validity in court.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>Over the past year, <a href=\"https:\/\/cyberscoop.com\/salt-typhoon-us-government-response\/\">policymakers have been dealing with fallout<\/a> from Chinese hackers that have <a href=\"https:\/\/cyberscoop.com\/salt-typhoon-chinese-hackers-us-telecom-breach\/\">systematically compromised<\/a> U.S. telecommunications infrastructure.<\/p>\n<p>Several sources told CyberScoop that the emergence of the Salt Typhoon and Volt Typhoon campaigns over the past year, as well as the revelation that hacking groups maintained access to telecom networks by exploiting widespread cybersecurity vulnerabilities, may have upended attempts to kill cybersecurity-related regulations like the FCC data breach rules.<\/p>\n<p>Rick Halm, a cybersecurity attorney at law firm Clark Hill, said the FCC\u2019s authority to regulate cybersecurity and data privacy has to be viewed through the lens of the persistent threats the sector is facing from hackers and foreign spies.<\/p>\n<p>\u201cI see this ruling against the backdrop of the looming national cybersecurity threat of Chinese infiltration of critical infrastructure in preparation to inflict damage if an actual conflict erupts,\u201d Halm said.<\/p>\n<h4 class=\"wp-block-heading\" id=\"h-chevron-s-dead-but-cybersecurity-regulations-live-on\">Chevron\u2019s dead, but cybersecurity regulations live on<\/h4>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>In reaching its conclusion, the court cited Loper Bright Enterprises vs. Raimondo \u2014 a&nbsp; 2024 Supreme Court case that said, courts, not federal agencies, have the authority to interpret congressional laws \u2014 at least 15 times.<\/p>\n<p>When the Supreme Court ended the practice of automatically deferring to agencies\u2019 interpretations of laws,&nbsp;<a href=\"https:\/\/cyberscoop.com\/cybersecurity-regulations-face-uphill-battle-after-chevron-ruling\/\">many worried<\/a> the shift could jeopardize the legality of cybersecurity regulations. That\u2019s because many rules, like the FCC\u2019s data breach regulations, depend on applying old laws to new technologies, which might not meet stricter legal scrutiny.&nbsp;<\/p>\n<p>But in this instance, the Sixth Circuit used its independent authority to agree with the&nbsp; FCC: regulating how firms handle and protect PII is a core part of the agency\u2019s responsibilities.<\/p>\n<p>Peter Hyun, a former chief of staff and acting enforcement chief at the FCC, told CyberScoop that \u201cas a substantive matter, this was a clear signal that the FCC did not overreach here.\u201d<\/p>\n<p>\u201cIn other words it is in its rightful lane, looking at the practices of these telecom carriers in order to ensure they were protecting customer information and PII,\u201d he said.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>However, other observers think future cybersecurity regulations will now face tougher standards.<\/p>\n<p>\u201cI think that this opinion is a warning shot to both the FCC and other federal agencies that you better be able to firmly tie any data privacy or cybersecurity rules directly to a clear statutory premise,\u201d Halm said.<\/p>\n<p>The court also determined that the agency did not violate the Congressional Review Act by proposing \u201csubstantially similar\u201d regulation to data privacy regulations that had been formally blocked by Congress in 2016.<\/p>\n<p>While the blocked 2016 order did include similar data breach notification requirements, the court determined it was \u201cfar more expansive, imposing a broad array of privacy rules on broadband Internet access services\u201d than the FCC\u2019s 2024 rule.<\/p>\n<p>\u201cThe data breach notification requirements were a mere subset of the broader compendium of privacy rules in [the 2016] Order,\u201d the majority wrote. \u201cThe 2024 Order, by contrast, addresses only data breach reporting requirements. The two rules are not substantially the same.\u201d<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>The Sixth Circuit\u2019s ruling appears to reaffirm \u201ca narrower reading of the CRA than some companies would have liked,\u201d Cobun Zweifel-Keegan, managing director at the International Association of Privacy Professionals, told CyberScoop.<\/p>\n<p>The majority\u2019s conclusion earned a rebuke from Judge Richard Griffin, who wrote in his dissent that \u201cour interpretation of the [Congressional Review Act] ought to elevate the will of Congress over that of an administrative agency.\u201d<\/p>\n<p><\/body> <\/p>\n<footer class=\"single-article__footer\" readability=\"3.5839416058394\">\n<div class=\"author-card\" readability=\"13\">\n<div class=\"author-card__avatar\">\n<figure class=\"author-card__image-wrap\"> <img data-recalc-dims=\"1\" decoding=\"async\" class=\"author-card__image\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2025\/08\/court-upholds-fcc-data-breach-reporting-rules-on-telecom-sector-1.jpg?w=640&#038;ssl=1\" alt=\"Derek B. Johnson\"> <\/figure>\n<\/p><\/div>\n<p><h4 class=\"author-card__name\">Written by Derek B. Johnson<\/h4>\n<p> Derek B. Johnson is a reporter at CyberScoop, where his beat includes cybersecurity, elections and the federal government. Prior to that, he has provided award-winning coverage of cybersecurity news across the public and private sectors for various publications since 2017. Derek has a bachelor\u2019s degree in print journalism from Hofstra University in New York and a master\u2019s degree in public policy from George Mason University in Virginia. <\/p>\n<\/p><\/div>\n<div class=\"single-article__tags-container\">\n<h4 class=\"single-article__tags-title\">In This Story<\/h4>\n<\/p><\/div>\n<\/footer>\n<p> <\/html><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"single-article__ads js-single-article-sidebar\">\n<div class=\"ad ad--sidebar js-single-article-sidebar-5 ad--rightrail_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<div class=\"ad ad--sidebar js-single-article-sidebar-4 ad--rightrail_2 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<div class=\"ad ad--sidebar js-single-article-sidebar-3 ad--rightrail_3 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> 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