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PUBLICATION","paragraph_id":"para_1"},{"text":"UNITED STATES COURT OF APPEALS","paragraph_id":"para_2"},{"text":"FOR THE NINTH CIRCUIT","paragraph_id":"para_3"},{"text":"LYDIA BULTEMEYER, on behalf","paragraph_id":"para_4"},{"text":"of herself and all other similarly","paragraph_id":"para_5"},{"text":"situated,","paragraph_id":"para_6"},{"text":"Plaintiff-Appellee,","paragraph_id":"para_7"},{"text":"v.","paragraph_id":"para_8"},{"text":"CENTURYLINK, INC.,","paragraph_id":"para_9"},{"text":"Defendant-Appellant.","paragraph_id":"para_10"},{"text":"No. 24-6413","paragraph_id":"para_11"},{"text":"D.C. No.","paragraph_id":"para_12"},{"text":"2:14-cv-02530-","paragraph_id":"para_13"},{"text":"SPL","paragraph_id":"para_14"},{"text":"OPINION","paragraph_id":"para_15"},{"text":"Appeal from the United States District Court","paragraph_id":"para_16"},{"text":"for the District of Arizona","paragraph_id":"para_17"},{"text":"Steven P. Logan, District Judge, Presiding","paragraph_id":"para_18"},{"text":"Argued and Submitted March 3, 2026","paragraph_id":"para_19"},{"text":"Phoenix, Arizona","paragraph_id":"para_20"},{"text":"Filed September 22, 2026","paragraph_id":"para_21"},{"text":"2 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_22"},{"text":"Before: Richard R. Clifton, Jay S. Bybee, and Eric D.","paragraph_id":"para_23"},{"text":"Miller, Circuit Judges.","paragraph_id":"para_24"},{"text":"Per Curiam Opinion;","paragraph_id":"para_25"},{"text":"Concurrence by Judge Clifton;","paragraph_id":"para_26"},{"text":"Concurrence by Judge Bybee","paragraph_id":"para_27"},{"text":"SUMMARY*","paragraph_id":"para_28"},{"text":"Fair Credit Reporting Act","paragraph_id":"para_29"},{"text":"The panel reversed the district court’s judgment after a","paragraph_id":"para_30"},{"text":"jury trial in favor of Lydia Bultemeyer, and remanded, in","paragraph_id":"para_31"},{"text":"Bultemeyer’s class action under the Fair Credit Reporting","paragraph_id":"para_32"},{"text":"Act against CenturyLink, Inc.","paragraph_id":"para_33"},{"text":"Under the Fair Credit Reporting Act, a “person” may","paragraph_id":"para_34"},{"text":"obtain a consumer’s credit report if that “person” has a","paragraph_id":"para_35"},{"text":"“legitimate business need for the information . . . in","paragraph_id":"para_36"},{"text":"connection with a business transaction that is initiated by the","paragraph_id":"para_37"},{"text":"consumer.” 15 U.S.C. § 1681b(a)(3)(F). Bultemeyer","paragraph_id":"para_38"},{"text":"proceeded through four steps required to place an online","paragraph_id":"para_39"},{"text":"order for services with CenturyLink. At step five she","paragraph_id":"para_40"},{"text":"decided not to place the order. Nevertheless, after step four,","paragraph_id":"para_41"},{"text":"CenturyLink pulled her credit report. CenturyLink claimed","paragraph_id":"para_42"},{"text":"it had a \"legitimate business need for the information” in","paragraph_id":"para_43"},{"text":"order to provide her with an accurate pricing schedule and","paragraph_id":"para_44"},{"text":"protect against identity fraud. Bultemeyer, however,","paragraph_id":"para_45"},{"text":"claimed that because she did not proceed through step five,","paragraph_id":"para_46"},{"text":"* This summary constitutes no part of the opinion of the court. It has","paragraph_id":"para_47"},{"text":"been prepared by court staff for the convenience of the reader.","paragraph_id":"para_48"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 3","paragraph_id":"para_49"},{"text":"she never “initiated” a business transaction with","paragraph_id":"para_50"},{"text":"CenturyLink. The district court denied CenturyLink a safe","paragraph_id":"para_51"},{"text":"harbor defense under Safeco Ins. Co. of Am. v. Burr, 551","paragraph_id":"para_52"},{"text":"U.S. 47 (2007), and proceeded to trial.","paragraph_id":"para_53"},{"text":"The panel held that CenturyLink was entitled to","paragraph_id":"para_54"},{"text":"judgment as a matter of law on its Safeco defense because its","paragraph_id":"para_55"},{"text":"understanding of the Fair Credit Reporting Act, even if","paragraph_id":"para_56"},{"text":"erroneous, was not objectively unreasonable and, therefore,","paragraph_id":"para_57"},{"text":"not reckless and “willful.” CenturyLink showed that its","paragraph_id":"para_58"},{"text":"reading had a foundation in the statutory text; it construed","paragraph_id":"para_59"},{"text":"the Act without the benefit of guidance from the courts of","paragraph_id":"para_60"},{"text":"appeals; and no agency’s authoritative guidance might have","paragraph_id":"para_61"},{"text":"warned it away from its construction. As to the statutory","paragraph_id":"para_62"},{"text":"text, the panel concluded that CenturyLink’s reading of the","paragraph_id":"para_63"},{"text":"term “initiated” had a foundation in the statute but did not","paragraph_id":"para_64"},{"text":"decide between CenturyLink’s reading and Bultemeyer’s","paragraph_id":"para_65"},{"text":"alternative reading.","paragraph_id":"para_66"},{"text":"Concurring, Judge Clifton joined the per curiam","paragraph_id":"para_67"},{"text":"opinion’s conclusion and its analysis of the Safeco defense","paragraph_id":"para_68"},{"text":"in full. He wrote separately only to express his disagreement","paragraph_id":"para_69"},{"text":"with the view expressed in Judge Bybee’s concurring","paragraph_id":"para_70"},{"text":"opinion. First, Judge Bybee’s proffered interpretation of the","paragraph_id":"para_71"},{"text":"Fair Credit Reporting Act did not speak for the court.","paragraph_id":"para_72"},{"text":"Second, the panel did not fall short by failing to provide a","paragraph_id":"para_73"},{"text":"definitive interpretation of the statutory text at issue. Third,","paragraph_id":"para_74"},{"text":"Judge Clifton disagreed with Judge Bybee’s interpretation.","paragraph_id":"para_75"},{"text":"In his view, once an online shopper has expressed sufficient","paragraph_id":"para_76"},{"text":"interest in a service or product by voluntarily visiting a","paragraph_id":"para_77"},{"text":"company’s website and completing all but the final step of a","paragraph_id":"para_78"},{"text":"multi-step process required to purchase that service or","paragraph_id":"para_79"},{"text":"product, she has initiated a business transaction within the","paragraph_id":"para_80"},{"text":"meaning of FCRA.","paragraph_id":"para_81"},{"text":"4 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_82"},{"text":"Concurring, Judge Bybee wrote that he joined the per","paragraph_id":"para_83"},{"text":"curiam opinion’s analysis of the Safeco defense in full. He","paragraph_id":"para_84"},{"text":"wrote separately to express his regret that the panel did not","paragraph_id":"para_85"},{"text":"take the additional step of resolving, one way or the other,","paragraph_id":"para_86"},{"text":"when a “business transaction” has been “initiated by the","paragraph_id":"para_87"},{"text":"consumer” in the context of online transactions. Judge","paragraph_id":"para_88"},{"text":"Bybee would hold that until Bultemeyer knew the full cost","paragraph_id":"para_89"},{"text":"of services, including whether CenturyLink would require a","paragraph_id":"para_90"},{"text":"deposit, and hit the “submit” button indicating that she was","paragraph_id":"para_91"},{"text":"ready to purchase CenturyLink’s services, she had not","paragraph_id":"para_92"},{"text":"initiated a transaction.","paragraph_id":"para_93"},{"text":"COUNSEL","paragraph_id":"para_94"},{"text":"Russell S. Thompson IV (argued), Thompson Consumer","paragraph_id":"para_95"},{"text":"Law Group PC, Scottsdale, Arizona; Andrew J. Brown,","paragraph_id":"para_96"},{"text":"Schall Brown & Schwartz LLP, San Diego, California; for","paragraph_id":"para_97"},{"text":"Plaintiff-Appellee.","paragraph_id":"para_98"},{"text":"Jonathan Hacker (argued), O'Melveny & Myers LLP,","paragraph_id":"para_99"},{"text":"Washington, D.C.; Danielle Morris, O'Melveny & Myers","paragraph_id":"para_100"},{"text":"LLP, Newport Beach, California; Albert E. Hartmann and","paragraph_id":"para_101"},{"text":"Michael O’Neil, Reed Smith LLP, Chicago, Illinois; for","paragraph_id":"para_102"},{"text":"Defendant-Appellant.","paragraph_id":"para_103"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 5","paragraph_id":"para_104"},{"text":"PER CURIAM","paragraph_id":"para_105"},{"text":"PER CURIAM:","paragraph_id":"para_106"},{"text":"Under the Fair Credit Reporting Act (FCRA), a “person”","paragraph_id":"para_107"},{"text":"may obtain a consumer’s credit report if that “person” has a","paragraph_id":"para_108"},{"text":"“legitimate business need for the information . . . in","paragraph_id":"para_109"},{"text":"connection with a business transaction that is initiated by the","paragraph_id":"para_110"},{"text":"consumer.” 15 U.S.C. § 1681b(a)(3)(F). Lydia Bultemeyer","paragraph_id":"para_111"},{"text":"proceeded through four steps required to place an online","paragraph_id":"para_112"},{"text":"order for services with CenturyLink. At step five she","paragraph_id":"para_113"},{"text":"decided not to place the order. Nevertheless, after step four,","paragraph_id":"para_114"},{"text":"CenturyLink pulled her credit report. CenturyLink claimed","paragraph_id":"para_115"},{"text":"it had a “legitimate business need for the information” in","paragraph_id":"para_116"},{"text":"order to provide her with an accurate pricing schedule and","paragraph_id":"para_117"},{"text":"protect against identity fraud; Bultemeyer, however, claimed","paragraph_id":"para_118"},{"text":"that because she did not proceed through step five, she never","paragraph_id":"para_119"},{"text":"“initiated” a business transaction with CenturyLink.","paragraph_id":"para_120"},{"text":"Bultemeyer filed a class action suit against CenturyLink","paragraph_id":"para_121"},{"text":"for willfully violating FCRA. CenturyLink responded that","paragraph_id":"para_122"},{"text":"it was entitled to a defense under Safeco Insurance Co. of","paragraph_id":"para_123"},{"text":"America v. Burr, 551 U.S. 47 (2007), because its","paragraph_id":"para_124"},{"text":"understanding of FCRA, even if erroneous, was not","paragraph_id":"para_125"},{"text":"objectively unreasonable and, therefore, not reckless and","paragraph_id":"para_126"},{"text":"“willful.” The district court denied the defense and","paragraph_id":"para_127"},{"text":"proceeded to trial. The jury returned a verdict for $28","paragraph_id":"para_128"},{"text":"million in statutory damages and $112 million in punitive","paragraph_id":"para_129"},{"text":"damages. We hold that CenturyLink was entitled to a Safeco","paragraph_id":"para_130"},{"text":"defense and reverse the judgment.","paragraph_id":"para_131"},{"text":"6 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_132"},{"text":"I. FACTS AND PROCEDURAL BACKGROUND","paragraph_id":"para_133"},{"text":"A. FCRA and the Safeco Defense","paragraph_id":"para_134"},{"text":"Congress enacted the Fair Credit Reporting Act in 1970","paragraph_id":"para_135"},{"text":"“to ensure fair and accurate credit reporting, promote","paragraph_id":"para_136"},{"text":"efficiency in the banking system, and protect consumer","paragraph_id":"para_137"},{"text":"privacy.” Safeco, 551 U.S. at 52. FCRA was born out of","paragraph_id":"para_138"},{"text":"“congressional concern over abuses in the credit reporting","paragraph_id":"para_139"},{"text":"industry.” Guimond v. Trans Union Credit Info. Co, 45 F.3d","paragraph_id":"para_140"},{"text":"1329, 1333 (9th Cir. 1995). FCRA pursues an “ambitious","paragraph_id":"para_141"},{"text":"objective,” laid out in its statement of purpose, “which uses","paragraph_id":"para_142"},{"text":"expansive terms to describe the adverse effects of unfair and","paragraph_id":"para_143"},{"text":"inaccurate credit reporting” practices. Safeco, 551 U.S. at","paragraph_id":"para_144"},{"text":"62.","paragraph_id":"para_145"},{"text":"FCRA prohibits persons from “us[ing] or obtain[ing] a","paragraph_id":"para_146"},{"text":"consumer report” unless it is for a “purpose . . . authorized”","paragraph_id":"para_147"},{"text":"by the Act. 15 U.S.C. § 1681b(f)(1); see also id. § 1681b(a)","paragraph_id":"para_148"},{"text":"(authorizing a consumer reporting agency to “furnish a","paragraph_id":"para_149"},{"text":"consumer report under the following circumstances and no","paragraph_id":"para_150"},{"text":"other”). As relevant here, companies may obtain consumer","paragraph_id":"para_151"},{"text":"information “in connection with a business transaction that","paragraph_id":"para_152"},{"text":"is initiated by the consumer,” when they have “a legitimate","paragraph_id":"para_153"},{"text":"business need for the information.” Id. § 1681b(a)(3)(F)(i).","paragraph_id":"para_154"},{"text":"But if a company otherwise obtains consumer information,","paragraph_id":"para_155"},{"text":"that company may be liable under the Act, and FCRA","paragraph_id":"para_156"},{"text":"provides a private right of action: Any person who","paragraph_id":"para_157"},{"text":"negligently violates the Act may be liable to the affected","paragraph_id":"para_158"},{"text":"consumer for actual damages. Id. § 1681o(a). If, however,","paragraph_id":"para_159"},{"text":"“[a]ny person . . . willfully fails to comply,” he may also be","paragraph_id":"para_160"},{"text":"liable for “actual damages . . . or damages of not less than","paragraph_id":"para_161"},{"text":"$100 and not more than $1,000” and “such amount of","paragraph_id":"para_162"},{"text":"punitive damages as the court may allow.” Id. § 1681n(a);","paragraph_id":"para_163"},{"text":"see Safeco, 551 U.S. at 53.","paragraph_id":"para_164"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 7","paragraph_id":"para_165"},{"text":"In Safeco, the Supreme Court addressed what it means","paragraph_id":"para_166"},{"text":"for a person to “willfully fail[] to comply” with the Act. Id.","paragraph_id":"para_167"},{"text":"at 58. Acknowledging that “‘willfully’ is a ‘word of many","paragraph_id":"para_168"},{"text":"meanings whose construction is often dependent on the","paragraph_id":"para_169"},{"text":"context in which it appears,’” the Court observed that it has","paragraph_id":"para_170"},{"text":"“generally taken it to cover not only knowing violations of a","paragraph_id":"para_171"},{"text":"standard, but reckless ones as well.” Safeco, 551 U.S. at 57","paragraph_id":"para_172"},{"text":"(quoting Bryan v. United States, 524 U.S. 184, 191 (1998));","paragraph_id":"para_173"},{"text":"see id. at 59–60 (willful violations encompass “both","paragraph_id":"para_174"},{"text":"knowing and reckless disregard of the law,” although an","paragraph_id":"para_175"},{"text":"“action falling within the knowing subcategory does not","paragraph_id":"para_176"},{"text":"simultaneously fall within the reckless alternative”); see also","paragraph_id":"para_177"},{"text":"Halo Elecs., Inc. v. Pulse Elecs., Inc., 579 U.S. 93, 106","paragraph_id":"para_178"},{"text":"(2016) (indicating that Safeco concerns the “reckless”","paragraph_id":"para_179"},{"text":"subcategory of willfulness). “Knowing” or “actual","paragraph_id":"para_180"},{"text":"knowledge” means “what it says: knowledge that is actual,","paragraph_id":"para_181"},{"text":"not merely a possible inference from ambiguous","paragraph_id":"para_182"},{"text":"circumstances.” Ventura Content, Ltd. v. Motherless, Inc.,","paragraph_id":"para_183"},{"text":"885 F.3d 597, 609 (9th Cir. 2018). The meaning of","paragraph_id":"para_184"},{"text":"“reckless,” however, is less clear. The Supreme Court in","paragraph_id":"para_185"},{"text":"Safeco stated that reckless noncompliance occurs when a","paragraph_id":"para_186"},{"text":"defendant’s action both is “a violation under a reasonable","paragraph_id":"para_187"},{"text":"reading of the statute’s terms” and “shows that the company","paragraph_id":"para_188"},{"text":"ran a risk of violating the law substantially greater than the","paragraph_id":"para_189"},{"text":"risk associated with a reading that was merely careless.”","paragraph_id":"para_190"},{"text":"Safeco, 551 U.S. at 69.","paragraph_id":"para_191"},{"text":"The Court held that even an erroneous reading of FCRA","paragraph_id":"para_192"},{"text":"will not be deemed reckless so long as it is “not objectively","paragraph_id":"para_193"},{"text":"unreasonable.” Id. at 69–70. A defendant’s reading will be","paragraph_id":"para_194"},{"text":"objectively reasonable (1) when that reading had “a","paragraph_id":"para_195"},{"text":"foundation in the statutory text,” (2) when “no court of","paragraph_id":"para_196"},{"text":"appeals had spoken on the issue,” and (3) when that","paragraph_id":"para_197"},{"text":"defendant had “no authoritative guidance” that “might have","paragraph_id":"para_198"},{"text":"8 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_199"},{"text":"warned it away from the view it took.” Id.; see also Shaw,","paragraph_id":"para_200"},{"text":"891 F.3d at 760–61. Federal courts have referred to this as","paragraph_id":"para_201"},{"text":"the “Safeco defense,” see, e.g., Shimon v. Equifax Info. Servs.","paragraph_id":"para_202"},{"text":"LLC, 994 F.3d 88, 93–94 (2d Cir. 2021); Fuges v. Sw. Fin.","paragraph_id":"para_203"},{"text":"Servs., Ltd, 707 F.3d 241, 250 (3d Cir. 2012), and have","paragraph_id":"para_204"},{"text":"analogized it to qualified immunity, see, e.g., Safeco, 551","paragraph_id":"para_205"},{"text":"U.S. at 70 (citing Saucier v. Katz, 533 U.S. 194, 202 (2001));","paragraph_id":"para_206"},{"text":"see also Persinger v. Sw. Credit Sys., L.P., 20 F.4th 1184,","paragraph_id":"para_207"},{"text":"1195 (7th Cir. 2021); Marino v. Ocwen Loan Servicing LLC,","paragraph_id":"para_208"},{"text":"978 F.3d 669, 674 (9th Cir. 2020).","paragraph_id":"para_209"},{"text":"B. Facts","paragraph_id":"para_210"},{"text":"CenturyLink provides internet, cable, and other","paragraph_id":"para_211"},{"text":"telecommunications services, which consumers may","paragraph_id":"para_212"},{"text":"purchase through the company’s website. Bultemeyer","paragraph_id":"para_213"},{"text":"visited CenturyLink’s site to learn the costs of its services","paragraph_id":"para_214"},{"text":"because she was interested in making a purchase. The online","paragraph_id":"para_215"},{"text":"process (as it existed during the class period) involves five","paragraph_id":"para_216"},{"text":"steps, each of which concludes with the click of a button that","paragraph_id":"para_217"},{"text":"leads to a subsequent step until the fifth, when customers can","paragraph_id":"para_218"},{"text":"click a final button to submit their purchase order. At the","paragraph_id":"para_219"},{"text":"outset, customers enter their address. Then, at the first step,","paragraph_id":"para_220"},{"text":"customers choose the internet service option and pricing they","paragraph_id":"para_221"},{"text":"prefer. At the second, they are invited to customize their","paragraph_id":"para_222"},{"text":"selection by, for example, deciding whether to lease a","paragraph_id":"para_223"},{"text":"modem. At the third, they are presented with a “shopping","paragraph_id":"para_224"},{"text":"cart” that reiterates their selections and provides them an","paragraph_id":"para_225"},{"text":"opportunity to modify their choices. At the fourth, they enter","paragraph_id":"para_226"},{"text":"contact and personal information, including name, birth date,","paragraph_id":"para_227"},{"text":"and billing address, and they click a box to accept the “terms","paragraph_id":"para_228"},{"text":"and conditions,” which include a statement that a “credit","paragraph_id":"para_229"},{"text":"check is required to complete all online orders.” They also","paragraph_id":"para_230"},{"text":"choose the date of equipment or service installation during","paragraph_id":"para_231"},{"text":"this fourth step. At the fifth, they land on a “checkout” page","paragraph_id":"para_232"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 9","paragraph_id":"para_233"},{"text":"where they see CenturyLink’s estimated pricing, enter their","paragraph_id":"para_234"},{"text":"credit card information, and have the option to submit their","paragraph_id":"para_235"},{"text":"order.","paragraph_id":"para_236"},{"text":"Bultemeyer proceeded through step four but did not click","paragraph_id":"para_237"},{"text":"the “Submit Order” button that concludes the fifth and final","paragraph_id":"para_238"},{"text":"step. At step five, she chose not to make a purchase and","paragraph_id":"para_239"},{"text":"instead abandoned her inquiry. Later, Bultemeyer learned","paragraph_id":"para_240"},{"text":"through a credit monitoring provider that a third party had","paragraph_id":"para_241"},{"text":"taken a “hard” pull of her credit information. Upon further","paragraph_id":"para_242"},{"text":"investigation, she discovered that an entity identified as","paragraph_id":"para_243"},{"text":"“Qwest Land-Line,” a name she subsequently learned was","paragraph_id":"para_244"},{"text":"affiliated with CenturyLink, had obtained her personal","paragraph_id":"para_245"},{"text":"information, including her credit score, prior addresses,","paragraph_id":"para_246"},{"text":"employment history, and Social Security Number.","paragraph_id":"para_247"},{"text":"CenturyLink, it turned out, had an automated process in","paragraph_id":"para_248"},{"text":"which it gathered personal details on each individual who","paragraph_id":"para_249"},{"text":"had clicked the “next” button at step four and proceeded to","paragraph_id":"para_250"},{"text":"step five. In some instances, CenturyLink did not request","paragraph_id":"para_251"},{"text":"data from a consumer reporting agency, such as when it","paragraph_id":"para_252"},{"text":"already had information in its system on a potential","paragraph_id":"para_253"},{"text":"customer. But roughly half the time, CenturyLink used","paragraph_id":"para_254"},{"text":"outside sources to obtain customer data, and procured that","paragraph_id":"para_255"},{"text":"data nearly instantly, within a matter of seconds after a","paragraph_id":"para_256"},{"text":"visitor clicked step four’s “next” button.","paragraph_id":"para_257"},{"text":"According to CenturyLink, gathering this personal","paragraph_id":"para_258"},{"text":"consumer information between these fourth and fifth steps","paragraph_id":"para_259"},{"text":"serves two purposes. First, the company undertakes this","paragraph_id":"para_260"},{"text":"“customer identity verification process,” which included the","paragraph_id":"para_261"},{"text":"use of credit reports, to thwart identity theft. CenturyLink","paragraph_id":"para_262"},{"text":"generates a score that measures risk of identity theft,","paragraph_id":"para_263"},{"text":"expressed on a scale that ranges from R1 to R9. This review","paragraph_id":"para_264"},{"text":"is entirely automated and nearly instant unless this process","paragraph_id":"para_265"},{"text":"yields an R9 score, which flags a high risk of fraud, in which","paragraph_id":"para_266"},{"text":"10 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_267"},{"text":"case manual intervention follows submission of a final order.","paragraph_id":"para_268"},{"text":"Second, CenturyLink uses the credit information to decide","paragraph_id":"para_269"},{"text":"whether to charge the consumer a deposit, which it would","paragraph_id":"para_270"},{"text":"include in the pricing details displayed at the fifth and final","paragraph_id":"para_271"},{"text":"step. In other words, the price CenturyLink quotes to some","paragraph_id":"para_272"},{"text":"customers at step five depends on the results of the credit","paragraph_id":"para_273"},{"text":"check pulled after step four.","paragraph_id":"para_274"},{"text":"C. Proceedings","paragraph_id":"para_275"},{"text":"Bultemeyer filed her original class action complaint in","paragraph_id":"para_276"},{"text":"November 2014. CenturyLink moved to dismiss for failure","paragraph_id":"para_277"},{"text":"to state a claim, which the district court denied. Bultemeyer","paragraph_id":"para_278"},{"text":"v. CenturyLink, Inc., 2015 WL 13654018 (D. Ariz. Sep. 18,","paragraph_id":"para_279"},{"text":"2015). After completion of merits discovery in 2016, the","paragraph_id":"para_280"},{"text":"parties cross-moved for summary judgment and the district","paragraph_id":"para_281"},{"text":"court dismissed Bultemeyer’s claim for lack of Article III","paragraph_id":"para_282"},{"text":"standing. Bultemeyer v. CenturyLink, Inc., 2017 WL 634516","paragraph_id":"para_283"},{"text":"(D. Ariz. Feb. 15, 2017). We reversed the dismissal and","paragraph_id":"para_284"},{"text":"remanded. Bultemeyer v. CenturyLink Inc., 788 Fed. App’x","paragraph_id":"para_285"},{"text":"558 (9th Cir. 2019). The parties again filed cross-motions","paragraph_id":"para_286"},{"text":"for summary judgment, which the district court denied.","paragraph_id":"para_287"},{"text":"Following completion of class discovery, Bultemeyer moved","paragraph_id":"para_288"},{"text":"for class certification, which the district court denied without","paragraph_id":"para_289"},{"text":"prejudice. Bultemeyer v. CenturyLink Inc., 2022 WL","paragraph_id":"para_290"},{"text":"1046292 (D. Ariz. April 7, 2022). The court observed that","paragraph_id":"para_291"},{"text":"the initially proposed class included individuals who later","paragraph_id":"para_292"},{"text":"became CenturyLink customers and signed arbitration","paragraph_id":"para_293"},{"text":"clauses or class action waivers precluding their participation","paragraph_id":"para_294"},{"text":"in Bultemeyer’s action. After Bultemeyer’s unsuccessful","paragraph_id":"para_295"},{"text":"appeal of this denial under Federal Rule of Civil Procedure","paragraph_id":"para_296"},{"text":"23(f), Bultemeyer v. CenturyLink, Inc., 2022 U.S. App.","paragraph_id":"para_297"},{"text":"LEXIS 26790 (9th Cir. Sep. 23, 2022), Bultemeyer renewed","paragraph_id":"para_298"},{"text":"her motion for class certification with a more narrowly","paragraph_id":"para_299"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 11","paragraph_id":"para_300"},{"text":"defined class. The court granted her motion and approved a","paragraph_id":"para_301"},{"text":"class containing 56,075 members.","paragraph_id":"para_302"},{"text":"CenturyLink first raised a Safeco defense in a brief filed","paragraph_id":"para_303"},{"text":"in advance of trial. During the trial, CenturyLink again","paragraph_id":"para_304"},{"text":"raised the defense in motions for a directed verdict and for","paragraph_id":"para_305"},{"text":"judgment as a matter of law, both of which the court denied.","paragraph_id":"para_306"},{"text":"In the district court’s treatment of Safeco, it emphasized that","paragraph_id":"para_307"},{"text":"the case incorporates a “common law standard of","paragraph_id":"para_308"},{"text":"recklessness”; hence, it is “the risk of violating the law [that]","paragraph_id":"para_309"},{"text":"Defendant must have known or should have known.” The","paragraph_id":"para_310"},{"text":"court accordingly allowed the case to proceed to a four-day","paragraph_id":"para_311"},{"text":"trial, and the jury returned a verdict in favor of Bultemeyer","paragraph_id":"para_312"},{"text":"and the class, awarding each individual $500 in statutory","paragraph_id":"para_313"},{"text":"damages and $2,000 in punitive damages. The award thus","paragraph_id":"para_314"},{"text":"totaled more than $140 million.","paragraph_id":"para_315"},{"text":"CenturyLink appeals on several grounds, including the","paragraph_id":"para_316"},{"text":"district court’s denial of judgment as a matter of law as to its","paragraph_id":"para_317"},{"text":"Safeco defense.1","paragraph_id":"para_318"},{"text":"II. JURISDICTION AND STANDARD OF REVIEW","paragraph_id":"para_319"},{"text":"We have jurisdiction under 28 U.S.C. § 1291. We review","paragraph_id":"para_320"},{"text":"a denial of a motion for judgment as a matter of law de novo.","paragraph_id":"para_321"},{"text":"Wadler v. Bio-Rad Lab’ys, Inc., 916 F.3d 1176, 1185 (9th Cir.","paragraph_id":"para_322"},{"text":"2019).","paragraph_id":"para_323"},{"text":"III. ANALYSIS","paragraph_id":"para_324"},{"text":"FCRA permits a “person”—including a corporation such","paragraph_id":"para_325"},{"text":"as CenturyLink—to obtain a credit report from a consumer","paragraph_id":"para_326"},{"text":"reporting agency if that person has a “legitimate business","paragraph_id":"para_327"},{"text":"1 Because we conclude that CenturyLink is entitled to judgment as a","paragraph_id":"para_328"},{"text":"matter of law, we do not address its other arguments such as whether the","paragraph_id":"para_329"},{"text":"punitive damages award was excessive.","paragraph_id":"para_330"},{"text":"12 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_331"},{"text":"need for the information . . . in connection with a business","paragraph_id":"para_332"},{"text":"transaction that is initiated by the consumer.” 15 U.S.C.","paragraph_id":"para_333"},{"text":"§ 1681b(a)(3)(F). Bultemeyer contends that CenturyLink","paragraph_id":"para_334"},{"text":"willfully violated this provision of FCRA because she had","paragraph_id":"para_335"},{"text":"not “initiated” a business transaction and would initiate a","paragraph_id":"para_336"},{"text":"transaction only if she clicked “submit” at step five,","paragraph_id":"para_337"},{"text":"indicating that she wished to proceed. CenturyLink","paragraph_id":"para_338"},{"text":"vigorously disagrees with this understanding.","paragraph_id":"para_339"},{"text":"We need not resolve this dispute here because","paragraph_id":"para_340"},{"text":"CenturyLink is protected by the safe harbor recognized in","paragraph_id":"para_341"},{"text":"Safeco.2 We have discretion to proceed to the Safeco defense","paragraph_id":"para_342"},{"text":"without answering the statutory question. See Marino, 978","paragraph_id":"para_343"},{"text":"F.3d at 674 (“encourag[ing] courts in this circuit to","paragraph_id":"para_344"},{"text":"determine whether the defendant committed a violation of","paragraph_id":"para_345"},{"text":"the FCRA” before turning to the Safeco defense, but","paragraph_id":"para_346"},{"text":"recognizing that “this is not an ironclad rule”); compare","paragraph_id":"para_347"},{"text":"Safeco, 551 U.S. at 60–68 (interpreting FCRA before","paragraph_id":"para_348"},{"text":"holding that the defendants had not acted willfully), with id.","paragraph_id":"para_349"},{"text":"at 73 (Thomas, J., concurring in part) (observing that","paragraph_id":"para_350"},{"text":"“resolv[ing] the merits” of FCRA’s meaning was “not","paragraph_id":"para_351"},{"text":"necessary to the Court’s conclusion”).","paragraph_id":"para_352"},{"text":"Under Safeco, CenturyLink is not liable for any FCRA","paragraph_id":"para_353"},{"text":"violation if its reading of the Act is objectively reasonable—","paragraph_id":"para_354"},{"text":"2 Plaintiffs argue that CenturyLink forfeited its Safeco argument by","paragraph_id":"para_355"},{"text":"failing to raise it until shortly before the trial began. However, a defense","paragraph_id":"para_356"},{"text":"that “merely negates an element that [the plaintiff] was required to","paragraph_id":"para_357"},{"text":"prove” is “not an affirmative defense required to be pled in [the] answer.”","paragraph_id":"para_358"},{"text":"Zivkovic v. S. Cal. Edison Co., 302 F.3d 1080, 1088 (9th Cir. 2002).","paragraph_id":"para_359"},{"text":"Here, because Safeco serves to negate the “willfulness” element of the","paragraph_id":"para_360"},{"text":"Plaintiffs’ FCRA claim, it is not an affirmative defense. Id.; see also","paragraph_id":"para_361"},{"text":"Silver v. Cap. One, N.A., 2025 WL 2830749, at *4 (W.D. Wash. Oct. 6,","paragraph_id":"para_362"},{"text":"2025) (striking a Safeco defense from an answer because it is not an","paragraph_id":"para_363"},{"text":"affirmative defense).","paragraph_id":"para_364"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 13","paragraph_id":"para_365"},{"text":"and therefore not reckless—even if it is erroneous. Safeco,","paragraph_id":"para_366"},{"text":"551 U.S. at 69. To prevail on its Safeco defense,","paragraph_id":"para_367"},{"text":"CenturyLink must demonstrate that (1) its reading has “a","paragraph_id":"para_368"},{"text":"foundation in the statutory text,” (2) it has construed a","paragraph_id":"para_369"},{"text":"provision without “the benefit of guidance from the courts","paragraph_id":"para_370"},{"text":"of appeals,” and (3) no agency’s “authoritative guidance”","paragraph_id":"para_371"},{"text":"“might have warned it away” from its construction. Id. at","paragraph_id":"para_372"},{"text":"69–70; Shaw, 891 F.3d at 760. Because a failure to establish","paragraph_id":"para_373"},{"text":"any one of these factors would mean that CenturyLink’s","paragraph_id":"para_374"},{"text":"reading was not objectively reasonable, CenturyLink’s","paragraph_id":"para_375"},{"text":"defense fails unless it can demonstrate each factor.","paragraph_id":"para_376"},{"text":"Reviewing these factors, we conclude that CenturyLink did","paragraph_id":"para_377"},{"text":"not act in “reckless disregard of statutory duty.” Safeco, 551","paragraph_id":"para_378"},{"text":"U.S. at 57. We will address each factor in turn.","paragraph_id":"para_379"},{"text":"A. Foundation in the Statutory Text","paragraph_id":"para_380"},{"text":"The defendant’s asserted reading must begin with “a","paragraph_id":"para_381"},{"text":"foundation in the statutory text.” Id. at 69–70. We think","paragraph_id":"para_382"},{"text":"CenturyLink’s reading satisfies this test. The critical","paragraph_id":"para_383"},{"text":"question is whether Bultemeyer, having completed four of","paragraph_id":"para_384"},{"text":"five steps in the online process to obtain CenturyLink","paragraph_id":"para_385"},{"text":"services, “initiated” a “business transaction.” The term","paragraph_id":"para_386"},{"text":"“initiated” is not defined in FCRA. Nor is the term so plain","paragraph_id":"para_387"},{"text":"as to be self-defining or to admit of only one reading. See","paragraph_id":"para_388"},{"text":"id. at 70 (referring to FCRA’s sometimes “less-than-pellucid","paragraph_id":"para_389"},{"text":"statutory text”). CenturyLink points to the “ordinary or","paragraph_id":"para_390"},{"text":"natural meaning” of this word, which may be found in","paragraph_id":"para_391"},{"text":"“dictionary definition[s].” HollyFrontier Cheyenne","paragraph_id":"para_392"},{"text":"Refining, LLC v. Renewable Fuels Ass’n, 594 U.S. 382, 388,","paragraph_id":"para_393"},{"text":"390 (2021); United States v. Havelock, 664 F.3d 1284, 1293","paragraph_id":"para_394"},{"text":"(9th Cir. 2012) (en banc). Two widely accepted dictionaries","paragraph_id":"para_395"},{"text":"define “initiate” as “commence; start; originate” and “begin,","paragraph_id":"para_396"},{"text":"introduce, set going, originate.” Initiate, Black’s Law","paragraph_id":"para_397"},{"text":"Dictionary (6th ed. 1990); Initiate, New Shorter Oxford","paragraph_id":"para_398"},{"text":"14 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_399"},{"text":"English Dictionary (4th ed. 1993). Drawing from these","paragraph_id":"para_400"},{"text":"synonyms, CenturyLink argues that it would be reasonable","paragraph_id":"para_401"},{"text":"to conclude that Bultemeyer had commenced or originated","paragraph_id":"para_402"},{"text":"her transaction with CenturyLink by the time she had","paragraph_id":"para_403"},{"text":"completed four of five steps. At that point, Bultemeyer had","paragraph_id":"para_404"},{"text":"elected the services she wanted, reviewed them in a virtual","paragraph_id":"para_405"},{"text":"cart, provided personal identifying information, selected an","paragraph_id":"para_406"},{"text":"installation date, and agreed to CenturyLink’s terms and","paragraph_id":"para_407"},{"text":"conditions. The only step Bultemeyer had not taken was to","paragraph_id":"para_408"},{"text":"provide her credit card information and click “submit” to","paragraph_id":"para_409"},{"text":"obtain CenturyLink’s services.","paragraph_id":"para_410"},{"text":"Bultemeyer has provided an alternative reading of the","paragraph_id":"para_411"},{"text":"statute: that she could not reasonably have initiated a","paragraph_id":"para_412"},{"text":"transaction when CenturyLink did not tell her the final price","paragraph_id":"para_413"},{"text":"of its services until she completed step four. According to","paragraph_id":"para_414"},{"text":"Bultemeyer’s reading, prior to that point, “any business","paragraph_id":"para_415"},{"text":"transaction is merely hypothetical.”","paragraph_id":"para_416"},{"text":"For purposes of Safeco, we need not decide between","paragraph_id":"para_417"},{"text":"these two readings, only whether CenturyLink’s reading has","paragraph_id":"para_418"},{"text":"an articulable “foundation in the statutory text.” Id. at 69–","paragraph_id":"para_419"},{"text":"70. Because the term “initiated” lacks definition in the","paragraph_id":"para_420"},{"text":"statute and bears a range of possible reasonable meanings,","paragraph_id":"para_421"},{"text":"we conclude that CenturyLink’s reading has foundation in","paragraph_id":"para_422"},{"text":"the statute.","paragraph_id":"para_423"},{"text":"B. Judicial Construction from Courts of Appeals","paragraph_id":"para_424"},{"text":"The second Safeco factor is whether a “court of appeals","paragraph_id":"para_425"},{"text":"had spoken” regarding the FCRA provision at issue. Id. at","paragraph_id":"para_426"},{"text":"70. We have observed that when “the applicable language","paragraph_id":"para_427"},{"text":"of the FCRA is ‘less than pellucid,’ a defendant will nearly","paragraph_id":"para_428"},{"text":"always avoid liability so long as an appellate court has not","paragraph_id":"para_429"},{"text":"already interpreted that language.” Marino, 978 F.3d at 673–","paragraph_id":"para_430"},{"text":"74 (quoting Safeco, 551 U.S. at 70). Bultemeyer argues that","paragraph_id":"para_431"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 15","paragraph_id":"para_432"},{"text":"courts of appeals, including ours, have interpreted the","paragraph_id":"para_433"},{"text":"meaning of “business transaction” in § 1681b(a)(3)(F)(i).","paragraph_id":"para_434"},{"text":"See Bakker v. McKinnon, 152 F.3d 1007, 1012 (8th Cir.","paragraph_id":"para_435"},{"text":"1998); Mone v. Dranow, 945 F.2d 306, 308 (9th Cir. 1991)","paragraph_id":"para_436"},{"text":"(per curiam); Ippolito v. WNS, Inc., 864 F.2d 440, 451 (7th","paragraph_id":"para_437"},{"text":"Cir. 1988); Houghton v. New Jersey Mfrs. Ins. Co., 795 F.2d","paragraph_id":"para_438"},{"text":"1144, 1149 (3d Cir. 1986). That may be true, but Bultemeyer","paragraph_id":"para_439"},{"text":"has not directed us to, and we have not found, any appellate","paragraph_id":"para_440"},{"text":"decision that has addressed the question of when a business","paragraph_id":"para_441"},{"text":"transaction has been initiated. Thus, this second factor also","paragraph_id":"para_442"},{"text":"favors CenturyLink.","paragraph_id":"para_443"},{"text":"C. Authoritative Guidance from an Agency","paragraph_id":"para_444"},{"text":"Safeco’s third and final factor is whether there is","paragraph_id":"para_445"},{"text":"“authoritative guidance” from an agency sufficient to “have","paragraph_id":"para_446"},{"text":"warned . . . away” a defendant “from the view it took.” Id.","paragraph_id":"para_447"},{"text":"at 70. The Court did not explain what it meant by that","paragraph_id":"para_448"},{"text":"phrase, although it pointed out in that case that the Federal","paragraph_id":"para_449"},{"text":"Trade Commission (“FTC”) “has only enforcement","paragraph_id":"para_450"},{"text":"responsibility, not substantive rulemaking authority, for the","paragraph_id":"para_451"},{"text":"provisions in question.” Id. Because “[t]he Supreme Court","paragraph_id":"para_452"},{"text":"did not flesh out the boundaries of authoritative guidance,”","paragraph_id":"para_453"},{"text":"United States ex rel. Schutte v. SuperValu Inc., 9 F.4th 455,","paragraph_id":"para_454"},{"text":"471 (7th Cir. 2021), vacated and remanded on other","paragraph_id":"para_455"},{"text":"grounds, 598 U.S. 739 (2023), “it is not readily apparent","paragraph_id":"para_456"},{"text":"what the Court meant by that usage,” McIntyre v. RentGrow,","paragraph_id":"para_457"},{"text":"Inc., 34 F.4th 87, 100 (1st Cir. 2022).","paragraph_id":"para_458"},{"text":"Some circuits have confronted this uncertainty. One","paragraph_id":"para_459"},{"text":"court observed that the courts of appeals “have hinted that","paragraph_id":"para_460"},{"text":"notice-and-comment rulemaking or binding administrative","paragraph_id":"para_461"},{"text":"adjudications are the gold standards for guidance to be","paragraph_id":"para_462"},{"text":"‘authoritative’ under Safeco.” United States ex rel. Proctor","paragraph_id":"para_463"},{"text":"v. Safeway, Inc., 30 F.4th 649, 663 (7th Cir. 2022), vacated","paragraph_id":"para_464"},{"text":"16 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_465"},{"text":"and remanded on other grounds, 598 U.S. 739 (2023). A","paragraph_id":"para_466"},{"text":"hint may be all we have. The Seventh Circuit was the first","paragraph_id":"para_467"},{"text":"circuit to state that to have authoritative effect, the guidance","paragraph_id":"para_468"},{"text":"must have been the result of “an exercise in notice-and-","paragraph_id":"para_469"},{"text":"comment rulemaking [or] the outcome of administrative","paragraph_id":"para_470"},{"text":"adjudication.” Van Straaten v. Shell Oil Prod. Co. LLC, 678","paragraph_id":"para_471"},{"text":"F.3d 486, 488 (7th Cir. 2012). In a later Seventh Circuit case,","paragraph_id":"para_472"},{"text":"however, the court backed away, characterizing its statement","paragraph_id":"para_473"},{"text":"as “dicta.” Proctor, 30 F.4th at 662. The D.C. Circuit has","paragraph_id":"para_474"},{"text":"also stated that only “binding interpretive guidance,” as","paragraph_id":"para_475"},{"text":"opposed to “informal guidance,” would suffice to “warn a","paragraph_id":"para_476"},{"text":"regulated defendant away from an otherwise reasonable","paragraph_id":"para_477"},{"text":"interpretation it adopted.” United States ex rel. Purcell v.","paragraph_id":"para_478"},{"text":"MWI Corp., 807 F.3d 281, 287, 289, 290 (D.C. Cir. 2015).","paragraph_id":"para_479"},{"text":"In that case, however, the court did not explain what kind of","paragraph_id":"para_480"},{"text":"guidance would qualify because it could not locate “any","paragraph_id":"para_481"},{"text":"written guidance [from the Export-Import Bank] on what the","paragraph_id":"para_482"},{"text":"[disputed] term meant.” Id. at 289; see also McIntyre, 34","paragraph_id":"para_483"},{"text":"F.4th at 102 (Lynch, J., concurring in the judgment)","paragraph_id":"para_484"},{"text":"(suggesting that the agency itself must designate its guidance","paragraph_id":"para_485"},{"text":"authoritative). The most recent cases to consider the issue","paragraph_id":"para_486"},{"text":"have ultimately avoided the question by holding that an","paragraph_id":"para_487"},{"text":"agency’s guidance, whether authoritative or not, was not","paragraph_id":"para_488"},{"text":"sufficiently specific to serve as the notice required by Safeco.","paragraph_id":"para_489"},{"text":"See McIntyre, 34 F.4th at 100 (observing that the agency’s","paragraph_id":"para_490"},{"text":"guidance “does not give . . . clear notice”); Proctor, 30 F.4th","paragraph_id":"para_491"},{"text":"at 662 (rejecting as authoritative “a single footnote in a fifty-","paragraph_id":"para_492"},{"text":"seven-page chapter” that “went in and out of [an agency’s]","paragraph_id":"para_493"},{"text":"Manual during the relevant period”); Schutte, 9 F.4th at 471","paragraph_id":"para_494"},{"text":"(holding that an agency’s “manual was not sufficiently","paragraph_id":"para_495"},{"text":"specific to warn” the defendant).","paragraph_id":"para_496"},{"text":"Bultemeyer argues that the FTC issued authoritative","paragraph_id":"para_497"},{"text":"guidance that should have alerted CenturyLink that she had","paragraph_id":"para_498"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 17","paragraph_id":"para_499"},{"text":"not initiated a transaction. In 1997, Karen Coffey, the Chief","paragraph_id":"para_500"},{"text":"Counsel of the Texas Automobile Dealers Association, wrote","paragraph_id":"para_501"},{"text":"to the FTC to ask about “the propriety of an auto dealership","paragraph_id":"para_502"},{"text":"obtaining a consumer report from a consumer reporting","paragraph_id":"para_503"},{"text":"agency on an individual who visits the showroom.” In an","paragraph_id":"para_504"},{"text":"“advisory opinion” dated February 11, 1998, an FTC staff","paragraph_id":"para_505"},{"text":"member, David Medine, offered the “staff’s view” that","paragraph_id":"para_506"},{"text":"an automobile dealer may obtain a report","paragraph_id":"para_507"},{"text":"only in those circumstances in which the","paragraph_id":"para_508"},{"text":"consumer clearly understands that he or she","paragraph_id":"para_509"},{"text":"is initiating the purchase or lease of a vehicle.","paragraph_id":"para_510"},{"text":". . .","paragraph_id":"para_511"},{"text":"[A] consumer who asks a dealer questions","paragraph_id":"para_512"},{"text":"about prices and financing is not","paragraph_id":"para_513"},{"text":"necessarily indicating an intent to","paragraph_id":"para_514"},{"text":"purchase or lease a vehicle from that","paragraph_id":"para_515"},{"text":"particular dealer. . . . The consumer may","paragraph_id":"para_516"},{"text":"simply be comparison shopping. . . .","paragraph_id":"para_517"},{"text":"Only in those circumstances where it is","paragraph_id":"para_518"},{"text":"clear both to the consumer and to the","paragraph_id":"para_519"},{"text":"dealer that the consumer is actually","paragraph_id":"para_520"},{"text":"initiating the purchase or lease of a","paragraph_id":"para_521"},{"text":"specific vehicle . . . may the dealer obtain","paragraph_id":"para_522"},{"text":"a report without written permission.","paragraph_id":"para_523"},{"text":"Thus, “a request for general information about products and","paragraph_id":"para_524"},{"text":"prices offered does not involve a business transaction","paragraph_id":"para_525"},{"text":"initiated by the consumer.” The letter concluded by stating","paragraph_id":"para_526"},{"text":"that “[t]he opinions set forth in this informal staff letter are","paragraph_id":"para_527"},{"text":"not binding on the Commission.”","paragraph_id":"para_528"},{"text":"18 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_529"},{"text":"Thirteen years later, as the FTC prepared to share","paragraph_id":"para_530"},{"text":"responsibility for enforcing FCRA with the newly created","paragraph_id":"para_531"},{"text":"Consumer Financial Protection Bureau (“CFPB”), see 12","paragraph_id":"para_532"},{"text":"U.S.C. § 5581, the FTC published 40 Years of Experience","paragraph_id":"para_533"},{"text":"with the Fair Credit Reporting Act: An FTC Staff Report","paragraph_id":"para_534"},{"text":"with Summary of Interpretations (July 2011) (“40 Years","paragraph_id":"para_535"},{"text":"Report”). The 40 Years Report explained that since FCRA’s","paragraph_id":"para_536"},{"text":"adoption in 1970, the Commission had issued more than 400","paragraph_id":"para_537"},{"text":"opinion letters. It noted that although these letters “do not","paragraph_id":"para_538"},{"text":"represent the formal policy or views of the Commission and","paragraph_id":"para_539"},{"text":"are not binding,” nevertheless, “they provide important","paragraph_id":"para_540"},{"text":"guidance on issues of statutory interpretation.” 40 Years","paragraph_id":"para_541"},{"text":"Report at 6. The FTC published the Report to serve as “a","paragraph_id":"para_542"},{"text":"compendium of interpretations that it believe[d] will be of","paragraph_id":"para_543"},{"text":"use to the CFPB staff, the businesses subject to the","paragraph_id":"para_544"},{"text":"Commission’s jurisdiction under the FCRA, public","paragraph_id":"para_545"},{"text":"representatives, and consumers.” Id. at 7. The 40 Years","paragraph_id":"para_546"},{"text":"Report replaced a prior publication, Commentary on the","paragraph_id":"para_547"},{"text":"FCRA (1990), which the Commission described as having","paragraph_id":"para_548"},{"text":"“no binding effect,” but to which “some courts have","paragraph_id":"para_549"},{"text":"accorded . . . weight as a policy statement.” 40 Years Report","paragraph_id":"para_550"},{"text":"at 7; see id. n.35. Although the 40 Years Report represented","paragraph_id":"para_551"},{"text":"that the Commission was “authorizing issuance of the Staff","paragraph_id":"para_552"},{"text":"Summary,” id. at 8, we have not seen evidence that it was","paragraph_id":"para_553"},{"text":"formally adopted by the FTC. In the same month the 40","paragraph_id":"para_554"},{"text":"Years Report was issued, the FTC formally rescinded the","paragraph_id":"para_555"},{"text":"Commentary on the FCRA. See “Statement of General","paragraph_id":"para_556"},{"text":"Policy or Interpretation; Commentary on the Fair Credit","paragraph_id":"para_557"},{"text":"Reporting Act,” 76 Fed. Reg. 44462 (July 26, 2011).","paragraph_id":"para_558"},{"text":"In light of Safeco’s treatment of an informal FTC letter—","paragraph_id":"para_559"},{"text":"that is, as merely “an informal staff opinion . . . not binding","paragraph_id":"para_560"},{"text":"on the Commission,” Safeco, 551 U.S. at 70 n.19—and the","paragraph_id":"para_561"},{"text":"Coffey Letter’s own disavowal of its status, the Coffey Letter","paragraph_id":"para_562"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 19","paragraph_id":"para_563"},{"text":"itself cannot provide “authoritative guidance.” See Syed v.","paragraph_id":"para_564"},{"text":"M-I, LLC, 853 F.3d at 492, 504 n.6 (9th Cir. 2017)","paragraph_id":"para_565"},{"text":"(explaining that FTC “informal opinion letters do not","paragraph_id":"para_566"},{"text":"constitute authoritative guidance”). Whether the 40 Years","paragraph_id":"para_567"},{"text":"Report is “authoritative,” however, presents a more","paragraph_id":"para_568"},{"text":"complicated test of what Safeco means by this term. At least","paragraph_id":"para_569"},{"text":"one district court has treated the 40 Years Report as","paragraph_id":"para_570"},{"text":"“authoritative” guidance that “might have warned [a","paragraph_id":"para_571"},{"text":"company] away from the view it took.” Beseke v. Equifax","paragraph_id":"para_572"},{"text":"Info. Servs. LLC, 420 F. Supp. 3d 885, 898 (D. Minn. 2019).","paragraph_id":"para_573"},{"text":"Another district court stated that it was “not clear” that “the","paragraph_id":"para_574"},{"text":"40 Years Report [is] non-authoritative” for Safeco purposes.","paragraph_id":"para_575"},{"text":"Norman v. Trans Union, LLC, 669 F. Supp. 3d 351, 392 (E.D.","paragraph_id":"para_576"},{"text":"Pa. 2023). Other district courts have cited the 40 Years","paragraph_id":"para_577"},{"text":"Report as persuasive for purposes of interpreting FCRA,","paragraph_id":"para_578"},{"text":"without deciding whether it is authoritative for purposes of","paragraph_id":"para_579"},{"text":"Safeco. See, e.g., Gundersen v. Equifax Info. Servs., LLC,","paragraph_id":"para_580"},{"text":"683 F. Supp. 3d 1270, 1273 (D. Utah 2023); Miller v. Dish","paragraph_id":"para_581"},{"text":"Network, LLC, 326 F. Supp. 3d 51, 70 (E.D. Va. 2018); Kidd","paragraph_id":"para_582"},{"text":"v. Thomson Reuters Corp., 299 F. Supp. 3d 400, 406","paragraph_id":"para_583"},{"text":"(S.D.N.Y. 2017) (affording the report deference under","paragraph_id":"para_584"},{"text":"Skidmore), aff’d, 925 F.3d 99 (2d Cir. 2019); Williams v.","paragraph_id":"para_585"},{"text":"First Advantage LNS Screening Sols., Inc., 155 F. Supp. 3d","paragraph_id":"para_586"},{"text":"1233, 1244–45 & n.11 (N.D. Fla. 2015) (same). Yet another","paragraph_id":"para_587"},{"text":"district court held that although the 40 Years Report was not","paragraph_id":"para_588"},{"text":"persuasive for purposes of construing FCRA, the Report","paragraph_id":"para_589"},{"text":"supported defendant’s Safeco defense. Goode v. LexisNexis","paragraph_id":"para_590"},{"text":"Risk & Info. Analytics Grp., Inc., 848 F. Supp. 2d 532, 541,","paragraph_id":"para_591"},{"text":"543 (E.D. Pa. 2012).","paragraph_id":"para_592"},{"text":"We have also relied on the 40 Years Report for its","paragraph_id":"para_593"},{"text":"persuasive value, but never as authoritative guidance under","paragraph_id":"para_594"},{"text":"Safeco. We first cited it in Zabriskie v. Federal National","paragraph_id":"para_595"},{"text":"Mortgage Ass’n. There, we acknowledged “that the","paragraph_id":"para_596"},{"text":"20 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_597"},{"text":"guidance is ‘helpful and, as it tracks the language of the","paragraph_id":"para_598"},{"text":"statute, persuasive.’” 940 F.3d 1022, 1027 (9th Cir. 2019)","paragraph_id":"para_599"},{"text":"(quoting Kidd v. Thomson Reuters Corp., 925 F.3d 99, 106","paragraph_id":"para_600"},{"text":"(2d Cir. 2019)). In Moran I, we cited the 40 Years Report as","paragraph_id":"para_601"},{"text":"“further support of [our] construction” of the statute. Moran","paragraph_id":"para_602"},{"text":"v. Screening Pros, LLC, 943 F.3d 1175, 1184 (9th Cir. 2019)","paragraph_id":"para_603"},{"text":"(Moran I). In Moran II, we again noted that the 40 Years","paragraph_id":"para_604"},{"text":"Report was in accord with our reading of the statute. Moran","paragraph_id":"para_605"},{"text":"v. Screening Pros, LLC, 25 F.4th 722, 729 (9th Cir. 2022)","paragraph_id":"para_606"},{"text":"(Moran II). More recently in Grijalva v. ADP Screening &","paragraph_id":"para_607"},{"text":"Selection Servs. Inc., we looked to the 40 Years Report for","paragraph_id":"para_608"},{"text":"support for our reading of FCRA and characterized the","paragraph_id":"para_609"},{"text":"FTC’s views as “informative” and the 40 Years Report as","paragraph_id":"para_610"},{"text":"“persuasive.” 151 F.4th 1055, 1062 & n.3 (9th Cir. 2025).","paragraph_id":"para_611"},{"text":"We need not answer today whether the 40 Years Report","paragraph_id":"para_612"},{"text":"is “authoritative” for Safeco purposes. Instead, we hold that,","paragraph_id":"para_613"},{"text":"even if it were, its summary of the Coffey Letter is not","paragraph_id":"para_614"},{"text":"sufficiently specific to CenturyLink’s online process to have","paragraph_id":"para_615"},{"text":"warned the company that its statutory interpretation was","paragraph_id":"para_616"},{"text":"incorrect. See McIntyre, 34 F.4th at 100 (determining that","paragraph_id":"para_617"},{"text":"whatever the “‘authoritative guidance’ rubric” means, the","paragraph_id":"para_618"},{"text":"guidance must provide “clear notice,” otherwise “[i]ts utility","paragraph_id":"para_619"},{"text":"is eroded by its sparse detail and the fact-specific nature of","paragraph_id":"para_620"},{"text":"the . . . actions it recounts”); Schutte, 9 F.4th at 471 (“Safeco","paragraph_id":"para_621"},{"text":"suggests authoritative guidance must have a high level of","paragraph_id":"para_622"},{"text":"specificity to control an issue.”). The 40 Years Report first","paragraph_id":"para_623"},{"text":"discusses the Coffey Letter in some detail in a section","paragraph_id":"para_624"},{"text":"entitled “Permissible purpose for automobile dealers” and","paragraph_id":"para_625"},{"text":"then discusses it more briefly in subsequent sections entitled","paragraph_id":"para_626"},{"text":"“Automobile dealer” and “Automobile Dealership.” 40","paragraph_id":"para_627"},{"text":"Years Report at 14, 45, 48. The letter is also cited in various","paragraph_id":"para_628"},{"text":"endnotes. Id. at 103-04 nn.125, 141, 145–46, 156, 161, 168,","paragraph_id":"para_629"},{"text":"173. The FTC’s guidance is thus expressly addressed to","paragraph_id":"para_630"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 21","paragraph_id":"para_631"},{"text":"automobile sellers conducting face-to-face discussions in a","paragraph_id":"para_632"},{"text":"brick-and-mortar showroom. This cannot put CenturyLink,","paragraph_id":"para_633"},{"text":"a telecommunications company soliciting online customers,","paragraph_id":"para_634"},{"text":"on notice that its practices are contrary to agency guidance.","paragraph_id":"para_635"},{"text":"Bultemeyer points out that the Coffey Letter was cited in the","paragraph_id":"para_636"},{"text":"40 Years Report to support broader propositions, for","paragraph_id":"para_637"},{"text":"example, that a “retailer has a permissible purpose to obtain","paragraph_id":"para_638"},{"text":"a consumer report on a consumer who pays for merchandise","paragraph_id":"para_639"},{"text":"(e.g., an automobile or a TV set) by personal check.” 40","paragraph_id":"para_640"},{"text":"Years Report at 48 & n.141. She proffers that such broader","paragraph_id":"para_641"},{"text":"applications suggest that the incorporated letter applies","paragraph_id":"para_642"},{"text":"beyond the context of auto dealers. This may be so as to","paragraph_id":"para_643"},{"text":"instances in which the 40 Years Report expressly expands","paragraph_id":"para_644"},{"text":"the application of the Coffey Letter beyond auto dealers, but","paragraph_id":"para_645"},{"text":"as to the question before us regarding when an internet","paragraph_id":"para_646"},{"text":"business transaction has been initiated, the 40 Years Report","paragraph_id":"para_647"},{"text":"is silent. The FTC’s guidance, even presuming that it is","paragraph_id":"para_648"},{"text":"“authoritative” for Safeco purposes, is not specific enough to","paragraph_id":"para_649"},{"text":"CenturyLink’s conduct to warn it away from its belief that","paragraph_id":"para_650"},{"text":"Bultemeyer had initiated a business transaction.","paragraph_id":"para_651"},{"text":"We do not overturn a jury verdict lightly. But in this case,","paragraph_id":"para_652"},{"text":"we hold that, as a matter of law, CenturyLink was entitled to","paragraph_id":"para_653"},{"text":"judgment on its Safeco defense. CenturyLink’s proposed","paragraph_id":"para_654"},{"text":"reading of the FCRA’s safe harbor provision has foundation","paragraph_id":"para_655"},{"text":"in the statutory text, no appellate court has provided relevant","paragraph_id":"para_656"},{"text":"construction of this provision, and no agency has provided","paragraph_id":"para_657"},{"text":"authoritative guidance concerning its meaning.","paragraph_id":"para_658"},{"text":"Accordingly, CenturyLink did not willfully violate FCRA.","paragraph_id":"para_659"},{"text":"IV. CONCLUSION","paragraph_id":"para_660"},{"text":"The district court’s judgment is REVERSED and","paragraph_id":"para_661"},{"text":"REMANDED.","paragraph_id":"para_662"},{"text":"22 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_663"},{"text":"CLIFTON, Circuit Judge, concurring:","paragraph_id":"para_664"},{"text":"I join the per curiam opinion’s conclusion and its","paragraph_id":"para_665"},{"text":"analysis of the Safeco defense in full. I write separately only","paragraph_id":"para_666"},{"text":"to express my disagreement with the view expressed in the","paragraph_id":"para_667"},{"text":"separate concurring opinion by Judge Bybee. I make three","paragraph_id":"para_668"},{"text":"points.","paragraph_id":"para_669"},{"text":"First, I note that Judge Bybee’s proffered interpretation","paragraph_id":"para_670"},{"text":"of the Federal Credit Reporting Act (FCRA), as expressed at","paragraph_id":"para_671"},{"text":"38–40 of his separate concurring opinion, does not speak for","paragraph_id":"para_672"},{"text":"the court. Our per curiam opinion correctly focuses on","paragraph_id":"para_673"},{"text":"CenturyLink’s interpretation of the statute, concluding that","paragraph_id":"para_674"},{"text":"it is a reasonable interpretation, and stops there because that","paragraph_id":"para_675"},{"text":"is all that is required to resolve this appeal. Our opinion does","paragraph_id":"para_676"},{"text":"not provide a definitive interpretation of the statutory text at","paragraph_id":"para_677"},{"text":"issue.","paragraph_id":"para_678"},{"text":"Second, I do not believe that our panel has fallen short in","paragraph_id":"para_679"},{"text":"some way by not providing that interpretation. I understand","paragraph_id":"para_680"},{"text":"Judge Bybee’s view, expressed at 28 of his separate opinion,","paragraph_id":"para_681"},{"text":"that we would better serve the law and the community by","paragraph_id":"para_682"},{"text":"taking “the additional step of resolving, one way or the other,","paragraph_id":"para_683"},{"text":"when a ‘business transaction’ has been ‘initiated by the","paragraph_id":"para_684"},{"text":"consumer’ in the context of online transactions. 15 U.S.C.","paragraph_id":"para_685"},{"text":"§ 1681b(a)(3)(F)(i).”","paragraph_id":"para_686"},{"text":"He acknowledges, though, that the question does not","paragraph_id":"para_687"},{"text":"have to be answered to resolve this case. I do not speak for","paragraph_id":"para_688"},{"text":"Judge Miller, but I think we have declined to answer the","paragraph_id":"para_689"},{"text":"question, at least in part, because my answer is very different","paragraph_id":"para_690"},{"text":"from the one preferred by Judge Bybee, as I describe below.","paragraph_id":"para_691"},{"text":"It is not illogical or unreasonable for a panel not to provide","paragraph_id":"para_692"},{"text":"an authoritative legal interpretation of a statute as to which","paragraph_id":"para_693"},{"text":"the panel members disagree. Because that question does not","paragraph_id":"para_694"},{"text":"have to be answered to resolve this appeal, we do not shirk","paragraph_id":"para_695"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 23","paragraph_id":"para_696"},{"text":"our duty to leave it for resolution in a case where it would","paragraph_id":"para_697"},{"text":"matter.","paragraph_id":"para_698"},{"text":"Third, I disagree with Judge Bybee’s interpretation. As","paragraph_id":"para_699"},{"text":"he expressed it in his separate opinion, at 40, he “would hold","paragraph_id":"para_700"},{"text":"that until Bultemeyer knew the full cost of services,","paragraph_id":"para_701"},{"text":"including whether CenturyLink would require a deposit, and","paragraph_id":"para_702"},{"text":"hit the ‘submit’ button indicating that she was ready to","paragraph_id":"para_703"},{"text":"purchase CenturyLink’s services, she had not initiated a","paragraph_id":"para_704"},{"text":"transaction.”","paragraph_id":"para_705"},{"text":"In my view, once an online shopper has expressed","paragraph_id":"para_706"},{"text":"sufficient interest in a service or product by voluntarily","paragraph_id":"para_707"},{"text":"visiting a company’s website and completing all but the final","paragraph_id":"para_708"},{"text":"step of a multi-step process required to purchase that service","paragraph_id":"para_709"},{"text":"or product, she has initiated a business transaction within the","paragraph_id":"para_710"},{"text":"meaning of FCRA. Here, Bultemeyer did exactly that. She","paragraph_id":"para_711"},{"text":"went well beyond window shopping.","paragraph_id":"para_712"},{"text":"There is no dispute that she or other class members","paragraph_id":"para_713"},{"text":"started the process by visiting CenturyLink’s website to find","paragraph_id":"para_714"},{"text":"out about obtaining internet services. Nor is there any","paragraph_id":"para_715"},{"text":"dispute that Bultemeyer went through four of the five steps","paragraph_id":"para_716"},{"text":"as part of that process. That constitutes the initiation of a","paragraph_id":"para_717"},{"text":"business transaction, and the FCRA allows furnishing","paragraph_id":"para_718"},{"text":"consumer reports to companies that “ha[ve] a legitimate","paragraph_id":"para_719"},{"text":"business need for th[at] information in connection with a","paragraph_id":"para_720"},{"text":"business transaction that is initiated by the consumer.”","paragraph_id":"para_721"},{"text":"15 U.S.C. § 1681b(a)(3)(F)(i).","paragraph_id":"para_722"},{"text":"“When interpreting a statute, we look first and foremost","paragraph_id":"para_723"},{"text":"to its text.” United States v. Alvarez-Sanchez, 511 U.S. 350,","paragraph_id":"para_724"},{"text":"356 (1994). Guided by that familiar principle, I would","paragraph_id":"para_725"},{"text":"conclude that the FCRA’s use of the word “initiate,”","paragraph_id":"para_726"},{"text":"according to its plain meaning, and as our per curiam opinion","paragraph_id":"para_727"},{"text":"24 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_728"},{"text":"recognizes, at 13, refers to commencing or starting a","paragraph_id":"para_729"},{"text":"business transaction, not concluding or completing it.","paragraph_id":"para_730"},{"text":"When Bultemeyer arrived at the screen giving her the","paragraph_id":"para_731"},{"text":"option to click “submit” and thereby conclude the","paragraph_id":"para_732"},{"text":"transaction, she had already, in the words of our per curiam","paragraph_id":"para_733"},{"text":"opinion, at 14, “elected the services she wanted, reviewed","paragraph_id":"para_734"},{"text":"them in a virtual cart, provided personal identifying","paragraph_id":"para_735"},{"text":"information, selected an installation date, and agreed to","paragraph_id":"para_736"},{"text":"CenturyLink’s terms and conditions.” In other words, she","paragraph_id":"para_737"},{"text":"had already initiated, but not concluded, the transaction.","paragraph_id":"para_738"},{"text":"Accordingly, CenturyLink was not misinterpreting the","paragraph_id":"para_739"},{"text":"FCRA, and certainly not violating it, when it obtained","paragraph_id":"para_740"},{"text":"Bultemeyer’s credit report.","paragraph_id":"para_741"},{"text":"Bultemeyer’s preferred interpretation — that she should","paragraph_id":"para_742"},{"text":"be deemed to have initiated the business transaction only","paragraph_id":"para_743"},{"text":"after providing her credit card information and clicking","paragraph_id":"para_744"},{"text":"“submit” to obtain CenturyLink’s services — is simply not","paragraph_id":"para_745"},{"text":"supported by the FCRA’s text. It would impermissibly","paragraph_id":"para_746"},{"text":"collapse the distinction between initiating and concluding a","paragraph_id":"para_747"},{"text":"business transaction. “Where the statutory language is clear","paragraph_id":"para_748"},{"text":"and consistent with the statutory scheme at issue, the plain","paragraph_id":"para_749"},{"text":"language of the statute is conclusive and the judicial inquiry","paragraph_id":"para_750"},{"text":"is at an end.” Botosan v. Paul McNally Realty, 216 F.3d 827,","paragraph_id":"para_751"},{"text":"831 (9th Cir. 2000). That is the case here.","paragraph_id":"para_752"},{"text":"Further, it seems clear to me that CenturyLink had a","paragraph_id":"para_753"},{"text":"legitimate business need to obtain Bultemeyer’s credit report","paragraph_id":"para_754"},{"text":"after she had completed the fourth of five steps required to","paragraph_id":"para_755"},{"text":"make the purchase. Among other business needs,","paragraph_id":"para_756"},{"text":"CenturyLink cited the need to determine whether a customer","paragraph_id":"para_757"},{"text":"would be required to pay a deposit as part of the payment","paragraph_id":"para_758"},{"text":"required from a customer who accepted at step five, after a","paragraph_id":"para_759"},{"text":"final price was quoted.","paragraph_id":"para_760"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 25","paragraph_id":"para_761"},{"text":"My colleague’s separate opinion rests on the premise that","paragraph_id":"para_762"},{"text":"a consumer has not “initiated” a business transaction until","paragraph_id":"para_763"},{"text":"she is in a position to conclude a binding contract, expressed,","paragraph_id":"para_764"},{"text":"at 39, as “the moment when a consumer knows all of an","paragraph_id":"para_765"},{"text":"offeror’s terms,” including the moment when she knew","paragraph_id":"para_766"},{"text":"“[t]he cost of CenturyLink’s services.” That, in his view, as","paragraph_id":"para_767"},{"text":"stated at 40, did not happen until Bultemeyer “knew the full","paragraph_id":"para_768"},{"text":"cost of services, including whether CenturyLink would","paragraph_id":"para_769"},{"text":"require a deposit, and hit the ‘submit’ button” at the end of","paragraph_id":"para_770"},{"text":"step five.","paragraph_id":"para_771"},{"text":"Bultemeyer elected not to hit the “submit” button and","paragraph_id":"para_772"},{"text":"instead closed her browser and left the website. But it does","paragraph_id":"para_773"},{"text":"not appear that there was anything else to know about","paragraph_id":"para_774"},{"text":"CenturyLink’s offer that she did not know at that point. As","paragraph_id":"para_775"},{"text":"described in our per curiam opinion, at 8, at the first step she","paragraph_id":"para_776"},{"text":"was asked to choose the service option and pricing she","paragraph_id":"para_777"},{"text":"preferred. At the second, she could customize her selection","paragraph_id":"para_778"},{"text":"by, for instance, deciding whether to lease a modem at a","paragraph_id":"para_779"},{"text":"given price. At the third step she was presented with a","paragraph_id":"para_780"},{"text":"“shopping cart.” She does not dispute that the credit check","paragraph_id":"para_781"},{"text":"was not run until after she had the opportunity to review the","paragraph_id":"para_782"},{"text":"selected services and corresponding monthly and one-time","paragraph_id":"para_783"},{"text":"charges, not just once but twice. What was missing?","paragraph_id":"para_784"},{"text":"The only part that appears to have been missing prior to","paragraph_id":"para_785"},{"text":"step five for some potential customers was the possibility","paragraph_id":"para_786"},{"text":"that CenturyLink would impose a deposit requirement after","paragraph_id":"para_787"},{"text":"a credit check that disclosed that the customer in question","paragraph_id":"para_788"},{"text":"had a poor credit rating. Bultemeyer did not contend that","paragraph_id":"para_789"},{"text":"affected her or that she was quoted a higher price at the fifth","paragraph_id":"para_790"},{"text":"step. It was not until later that she learned that CenturyLink","paragraph_id":"para_791"},{"text":"had obtained the credit report that is the subject of this","paragraph_id":"para_792"},{"text":"litigation, but she did not allege that CenturyLink quoted her","paragraph_id":"para_793"},{"text":"a higher price than she previously understood. The price","paragraph_id":"para_794"},{"text":"26 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_795"},{"text":"presented to her at previous steps of the process was the same","paragraph_id":"para_796"},{"text":"price that the company ultimately proposed. It could do that","paragraph_id":"para_797"},{"text":"because it had received a credit report that apparently led it","paragraph_id":"para_798"},{"text":"to decide it did not need to add a deposit for her.","paragraph_id":"para_799"},{"text":"Some members of the plaintiff class were presented with","paragraph_id":"para_800"},{"text":"a higher final price because their poor credit reports led","paragraph_id":"para_801"},{"text":"CenturyLink to add a deposit requirement before concluding","paragraph_id":"para_802"},{"text":"the transaction. That was an appropriate thing for the","paragraph_id":"para_803"},{"text":"company to determine before providing the customer with","paragraph_id":"para_804"},{"text":"what appeared to have been the company’s final quoted","paragraph_id":"para_805"},{"text":"price.","paragraph_id":"para_806"},{"text":"Judge Bybee’s concurring opinion would put","paragraph_id":"para_807"},{"text":"CenturyLink and other businesses in the position of","paragraph_id":"para_808"},{"text":"providing a “final price” before being able to conduct the","paragraph_id":"para_809"},{"text":"credit check that it needed to determine whether in fact that","paragraph_id":"para_810"},{"text":"price was “final.” If a poor credit report led CenturyLink","paragraph_id":"para_811"},{"text":"thereafter to determine that a deposit would be required, the","paragraph_id":"para_812"},{"text":"customer would have reason to be offended. Like many","paragraph_id":"para_813"},{"text":"people, I have been surprised to receive bills that included","paragraph_id":"para_814"},{"text":"charges that I had not anticipated. I was not happy about that.","paragraph_id":"para_815"},{"text":"Looked like “bait and switch” to me. I have walked away","paragraph_id":"para_816"},{"text":"from some offers after encountering unexpected extras.","paragraph_id":"para_817"},{"text":"Some hotels have become notorious, for example, for","paragraph_id":"para_818"},{"text":"including “destination fees” or other similar charges as a way","paragraph_id":"para_819"},{"text":"to improve their positioning in the market with room rates","paragraph_id":"para_820"},{"text":"that appear to be lower. Check-out is too late to walk away,","paragraph_id":"para_821"},{"text":"but I have more than once protested and sometimes","paragraph_id":"para_822"},{"text":"succeeded in getting fees removed. I have seen many articles","paragraph_id":"para_823"},{"text":"expressing consumer outrage over such “junk fees” and","paragraph_id":"para_824"},{"text":"reporting regulatory efforts to control them.","paragraph_id":"para_825"},{"text":"Yet my colleague’s approach would put businesses in the","paragraph_id":"para_826"},{"text":"position of having to take that path by preventing them from","paragraph_id":"para_827"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 27","paragraph_id":"para_828"},{"text":"obtaining a credit report until after the customer thought that","paragraph_id":"para_829"},{"text":"she had entered into the transaction. For CenturyLink to have","paragraph_id":"para_830"},{"text":"added a deposit requirement after that point would","paragraph_id":"para_831"},{"text":"understandably be viewed as a customer as a dirty trick,","paragraph_id":"para_832"},{"text":"possibly an unfair or deceptive business practice. Indeed,","paragraph_id":"para_833"},{"text":"that might be a separate basis for a legal claim, even if fine","paragraph_id":"para_834"},{"text":"print that a transaction is not final until after a credit check","paragraph_id":"para_835"},{"text":"might fend off a direct contract claim. A business should not","paragraph_id":"para_836"},{"text":"be forced into that position.","paragraph_id":"para_837"},{"text":"Taxes and fees imposed by the government are a fact of","paragraph_id":"para_838"},{"text":"life. Nobody should be surprised when the total grocery bill","paragraph_id":"para_839"},{"text":"at checkout includes not only the sum of the marked prices","paragraph_id":"para_840"},{"text":"for the products purchased but also a sales tax imposed by","paragraph_id":"para_841"},{"text":"the state or municipality. According to Bultemeyer, the total","paragraph_id":"para_842"},{"text":"price she was presented by CenturyLink at step five did not","paragraph_id":"para_843"},{"text":"include taxes and fees, but she did not complain about that.","paragraph_id":"para_844"},{"text":"That apparently did not come as a surprise.","paragraph_id":"para_845"},{"text":"In contrast, when a company tries to impose some extra","paragraph_id":"para_846"},{"text":"charge, including the deposit that might be required here, the","paragraph_id":"para_847"},{"text":"customer has reason to feel abused. By obtaining credit","paragraph_id":"para_848"},{"text":"information to provide a reliable statement of what payment","paragraph_id":"para_849"},{"text":"CenturyLink will require in exchange for its services —","paragraph_id":"para_850"},{"text":"including a deposit from customers with poor credit ratings","paragraph_id":"para_851"},{"text":"— I do not believe CenturyLink acted without a legitimate","paragraph_id":"para_852"},{"text":"business need. To the contrary, it is clear to me that","paragraph_id":"para_853"},{"text":"CenturyLink was authorized to obtain the credit report","paragraph_id":"para_854"},{"text":"because it had “a legitimate business need for th[at]","paragraph_id":"para_855"},{"text":"information in connection with a business transaction that is","paragraph_id":"para_856"},{"text":"initiated by the consumer.” 15 U.S.C. § 1681b(a)(3)(F)(i).","paragraph_id":"para_857"},{"text":"Cf. Bickley v. Dish Network, LLC, 751 F.3d 724, 731 (6th","paragraph_id":"para_858"},{"text":"Cir. 2014) (“[W]e are persuaded that verifying the identity","paragraph_id":"para_859"},{"text":"of a consumer and assessing his eligibility for a service is a","paragraph_id":"para_860"},{"text":"‘legitimate business need,’ and therefore constitutes a","paragraph_id":"para_861"},{"text":"28 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_862"},{"text":"permissible statutory purpose.”); Domante v. Dish Networks,","paragraph_id":"para_863"},{"text":"LLC, 974 F.3d 1342, 1346 (11th Cir. 2020) (similar).","paragraph_id":"para_864"},{"text":"I fully join our per curiam opinion but disagree with the","paragraph_id":"para_865"},{"text":"interpretation offered by Judge Bybee in his separate","paragraph_id":"para_866"},{"text":"concurring opinion. If required to answer the question, I","paragraph_id":"para_867"},{"text":"would hold that CenturyLink’s interpretation was not only","paragraph_id":"para_868"},{"text":"reasonable but also correct under the FCRA.","paragraph_id":"para_869"},{"text":"BYBEE, Circuit Judge, concurring:","paragraph_id":"para_870"},{"text":"I join the per curiam opinion’s analysis of the Safeco","paragraph_id":"para_871"},{"text":"defense in full. I write to express my regret that we did not","paragraph_id":"para_872"},{"text":"take the additional step of resolving, one way or the other,","paragraph_id":"para_873"},{"text":"when a “business transaction” has been “initiated by the","paragraph_id":"para_874"},{"text":"consumer” in the context of online transactions. 15 U.S.C.","paragraph_id":"para_875"},{"text":"§ 1681b(a)(3)(F)(i). The case before us is the final stop in","paragraph_id":"para_876"},{"text":"litigation that began twelve years ago. It has come to our","paragraph_id":"para_877"},{"text":"court, on issues not relevant here, twice before. See","paragraph_id":"para_878"},{"text":"Bultemeyer v. CenturyLink, Inc., No. 22-80035, 2022 U.S.","paragraph_id":"para_879"},{"text":"App. LEXIS 26790 (9th Cir. Sep. 23, 2022); Bultemeyer v.","paragraph_id":"para_880"},{"text":"CenturyLink, Inc., 788 Fed. App’x 558 (9th Cir. 2019). The","paragraph_id":"para_881"},{"text":"case finally proceeded to a jury trial and the jury awarded","paragraph_id":"para_882"},{"text":"some $140 million in compensatory and punitive damages","paragraph_id":"para_883"},{"text":"under the Fair Credit Reporting Act. See 15 U.S.C.","paragraph_id":"para_884"},{"text":"§ 1681n(a)(1)(A). We have today overturned that verdict as","paragraph_id":"para_885"},{"text":"a matter of law, holding that the Safeco defense shields","paragraph_id":"para_886"},{"text":"CenturyLink from liability. But we have provided no","paragraph_id":"para_887"},{"text":"guidance as to the meaning of § 1681b.","paragraph_id":"para_888"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 29","paragraph_id":"para_889"},{"text":"I","paragraph_id":"para_890"},{"text":"For purposes of Safeco, we assumed that CenturyLink’s","paragraph_id":"para_891"},{"text":"decision to pull Bultemeyer’s credit report before she","paragraph_id":"para_892"},{"text":"formally submitted her order violated FCRA. In light of our","paragraph_id":"para_893"},{"text":"decision, what does CenturyLink do now? We hold that","paragraph_id":"para_894"},{"text":"CenturyLink’s reading of FCRA has a “foundation in the","paragraph_id":"para_895"},{"text":"statutory text.” Op. at 14 (quoting Safeco, 551 U.S. at 69–","paragraph_id":"para_896"},{"text":"70). We also hold that CenturyLink was not “warned away”","paragraph_id":"para_897"},{"text":"by any decision of a court of appeals or authoritative","paragraph_id":"para_898"},{"text":"guidance from an agency. Id. at 14–21. All of those things","paragraph_id":"para_899"},{"text":"remain true. Thus, even though we assumed that","paragraph_id":"para_900"},{"text":"CenturyLink is violating FCRA, we have relieved it of a","paragraph_id":"para_901"},{"text":"crushing jury verdict, and CenturyLink may continue to act","paragraph_id":"para_902"},{"text":"in presumptive violation of the Act. For CenturyLink,","paragraph_id":"para_903"},{"text":"nothing has changed except that its Safeco defense has now","paragraph_id":"para_904"},{"text":"become a Safeco license to continue presumptively to violate","paragraph_id":"para_905"},{"text":"FCRA. And not only can CenturyLink take advantage of our","paragraph_id":"para_906"},{"text":"decision, others accepting online orders who believe they","paragraph_id":"para_907"},{"text":"have “a legitimate business need” for their putative","paragraph_id":"para_908"},{"text":"customers’ credit information can do so too. 15 U.S.C.","paragraph_id":"para_909"},{"text":"§ 1681b(a)(3)(F). The situation we have left the parties in","paragraph_id":"para_910"},{"text":"seems grossly unfair. It is clear that we have acted within","paragraph_id":"para_911"},{"text":"our discretion not to decide the meaning of “a business","paragraph_id":"para_912"},{"text":"transaction that is initiated by the consumer,” see, id., but I","paragraph_id":"para_913"},{"text":"question the wisdom or equity in doing so.","paragraph_id":"para_914"},{"text":"In Safeco, prior to deciding whether the insurance","paragraph_id":"para_915"},{"text":"company-defendants willfully violated FCRA because they","paragraph_id":"para_916"},{"text":"acted recklessly, the Supreme Court decided that the","paragraph_id":"para_917"},{"text":"insurance companies violated FCRA by failing to provide","paragraph_id":"para_918"},{"text":"notice required by the Act. Safeco, 551 U.S. at 60–68. Only","paragraph_id":"para_919"},{"text":"then did it proceed to decide whether the defendants acted","paragraph_id":"para_920"},{"text":"willfully. Id. at 68–71; see Persinger v. Sw. Credit Sys., 20","paragraph_id":"para_921"},{"text":"F.4th 1184, 1195 (7th Cir. 2021) (observing that in “Safeco,","paragraph_id":"para_922"},{"text":"30 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_923"},{"text":"the Supreme Court first decided whether a violation","paragraph_id":"para_924"},{"text":"occurred, then it turned to the analysis of mental state”). In","paragraph_id":"para_925"},{"text":"that discussion, the Court analogized—albeit, through a","paragraph_id":"para_926"},{"text":"“Cf.” signal—the Safeco inquiry to qualified immunity.","paragraph_id":"para_927"},{"text":"Safeco, 551 U.S. at 70 (citing Saucier v. Katz, 533 U.S. 194,","paragraph_id":"para_928"},{"text":"202 (2001)). We, and other courts, have seized upon the","paragraph_id":"para_929"},{"text":"analogy to qualified immunity in the § 1983 and Bivens","paragraph_id":"para_930"},{"text":"contexts. See Persinger, 20 F.4th at 1195 (stating that the","paragraph_id":"para_931"},{"text":"“Safeco standard raises a sequencing issue . . . akin to the","paragraph_id":"para_932"},{"text":"sequencing dilemma courts face in qualified immunity","paragraph_id":"para_933"},{"text":"cases”); Marino v. Ocwen Loan Servicing LLC, 978 F.3d","paragraph_id":"para_934"},{"text":"669, 674 (9th Cir. 2020) (describing the Safeco inquiry as","paragraph_id":"para_935"},{"text":"“analogous to the problem in the field of qualified","paragraph_id":"para_936"},{"text":"immunity”); Syed v. M-I, LLC, 853 F.3d 492, 504 (9th Cir.","paragraph_id":"para_937"},{"text":"2017) (stating that “[t]he Supreme Court has analogized the","paragraph_id":"para_938"},{"text":"assessment of whether a FCRA violation may give rise to a","paragraph_id":"para_939"},{"text":"claim for statutory damages to the determination of whether","paragraph_id":"para_940"},{"text":"government employees may be held personally liable in suits","paragraph_id":"para_941"},{"text":"for damages”); but see Milbourne v. JRK Residential Am.,","paragraph_id":"para_942"},{"text":"LLC, 202 F. Supp. 3d 585, 593 (E.D. Va. 2016) (questioning","paragraph_id":"para_943"},{"text":"“the comparison to qualified immunity”).","paragraph_id":"para_944"},{"text":"We addressed the sequencing issue in some detail in","paragraph_id":"para_945"},{"text":"Marino. There, we observed that “in nearly every case","paragraph_id":"para_946"},{"text":"involving unclear statutory language, an appellate court may","paragraph_id":"para_947"},{"text":"dispose of the appeal by concluding that the defendant did","paragraph_id":"para_948"},{"text":"not negligently or willfully violate the statute.” Marino, 978","paragraph_id":"para_949"},{"text":"F.3d at 674. But if so, “then the question of statutory","paragraph_id":"para_950"},{"text":"interpretation will likely never be answered.” Id. We then","paragraph_id":"para_951"},{"text":"drew an analogy between qualified immunity available to","paragraph_id":"para_952"},{"text":"officers accused of violating constitutional rights in suits","paragraph_id":"para_953"},{"text":"under 42 U.S.C. § 1983 or Bivens, and defendants asserting","paragraph_id":"para_954"},{"text":"a Safeco defense. Just as the Supreme Court has","paragraph_id":"para_955"},{"text":"“recognize[d] that it is often beneficial” to decide whether","paragraph_id":"para_956"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 31","paragraph_id":"para_957"},{"text":"there was a constitutional violation before addressing","paragraph_id":"para_958"},{"text":"qualified immunity “because it ‘promotes the development","paragraph_id":"para_959"},{"text":"of constitutional precedent and is especially valuable with","paragraph_id":"para_960"},{"text":"respect to questions that do not frequently arise in cases in","paragraph_id":"para_961"},{"text":"which a qualified immunity defense is unavailable,’” we","paragraph_id":"para_962"},{"text":"“encourage[d] courts in this circuit to determine whether the","paragraph_id":"para_963"},{"text":"defendant committed a violation of the FCRA before turning","paragraph_id":"para_964"},{"text":"to questions of negligence and willfulness.” Id. (quoting","paragraph_id":"para_965"},{"text":"Pearson v. Callahan, 555 U.S. 223, 236 (2009)). Although","paragraph_id":"para_966"},{"text":"this was “not an ironclad rule,” we said that, “when feasible,","paragraph_id":"para_967"},{"text":"courts should resolve disputed issues of statutory","paragraph_id":"para_968"},{"text":"interpretation before disposing of the case for lack of","paragraph_id":"para_969"},{"text":"negligent or willful violation.” Id.; see Persinger, 20 F.4th","paragraph_id":"para_970"},{"text":"at 1195; cf. Van Straaten v. Shell Oil Products Co., 678 F.3d","paragraph_id":"para_971"},{"text":"486, 491 (7th Cir. 2012) (declining to decide if the defendant","paragraph_id":"para_972"},{"text":"“violated the Act at all” because “the substantive question in","paragraph_id":"para_973"},{"text":"this litigation will not recur for [the defendant] or anyone","paragraph_id":"para_974"},{"text":"else” so “it need never be answered”). Here, we exercised","paragraph_id":"para_975"},{"text":"our discretion to avoid construing the statute and to proceed","paragraph_id":"para_976"},{"text":"directly to CenturyLink’s Safeco defense.","paragraph_id":"para_977"},{"text":"The analogy between qualified immunity and the Safeco","paragraph_id":"para_978"},{"text":"defense is unfortunate. For a time, the Supreme Court","paragraph_id":"para_979"},{"text":"“required” lower courts to consider the “threshold question”","paragraph_id":"para_980"},{"text":"of whether “the facts alleged show the officer’s conduct","paragraph_id":"para_981"},{"text":"violated a constitutional right,” even when an officer","paragraph_id":"para_982"},{"text":"ultimately enjoys qualified immunity under a","paragraph_id":"para_983"},{"text":"“reasonableness inquiry.” Saucier, 533 U.S. at 200–01. The","paragraph_id":"para_984"},{"text":"Court saw this as the appropriate “process for the law’s","paragraph_id":"para_985"},{"text":"elaboration from case to case.” Id. at 201. By “insisting","paragraph_id":"para_986"},{"text":"upon turning to the existence or nonexistence of a","paragraph_id":"para_987"},{"text":"constitutional right as the first inquiry,” the Court was","paragraph_id":"para_988"},{"text":"endeavoring to avoid scenarios in which “[t]he law might be","paragraph_id":"para_989"},{"text":"deprived of [an] explanation were a court simply to skip","paragraph_id":"para_990"},{"text":"32 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_991"},{"text":"ahead to the question whether the law clearly established that","paragraph_id":"para_992"},{"text":"the officer’s conduct was unlawful in the circumstances of","paragraph_id":"para_993"},{"text":"the case.” Id.","paragraph_id":"para_994"},{"text":"Saucier was not without controversy. Mandating","paragraph_id":"para_995"},{"text":"analysis of the threshold constitutional question—even","paragraph_id":"para_996"},{"text":"when it seemed obvious that an officer would ultimately","paragraph_id":"para_997"},{"text":"enjoy immunity—was, to some, “unnecessarily”","paragraph_id":"para_998"},{"text":"burdensome on the lower courts. Brosseau v. Haugen, 543","paragraph_id":"para_999"},{"text":"U.S. 194, 201–202 (2004) (Breyer, J., concurring). The","paragraph_id":"para_1000"},{"text":"courts expressed widespread dissatisfaction, and even open","paragraph_id":"para_1001"},{"text":"defiance. Justice Breyer, for one, urged the Court to “end","paragraph_id":"para_1002"},{"text":"the failed Saucier experiment.” Morse v. Frederick, 551","paragraph_id":"para_1003"},{"text":"U.S. 393, 432 (2007) (Breyer, J., dissenting in part and","paragraph_id":"para_1004"},{"text":"concurring in part). Justice Stevens referred to the Saucier","paragraph_id":"para_1005"},{"text":"mandate as an “unwise judge-made rule.” Bunting v. Mellen,","paragraph_id":"para_1006"},{"text":"541 U.S. 1019, 1019 (2004) (Stevens, J., respecting denial","paragraph_id":"para_1007"},{"text":"of certiorari). Finally, in Pearson, the Court put to rest","paragraph_id":"para_1008"},{"text":"Saucier’s mandate of a two-step analysis, recognizing that","paragraph_id":"para_1009"},{"text":"there may be good reason at times to skip the antecedent","paragraph_id":"para_1010"},{"text":"question in the sequence. Pearson, 555 U.S. at 235. But as","paragraph_id":"para_1011"},{"text":"it withdrew the mandate, the Court emphasized that the","paragraph_id":"para_1012"},{"text":"“sequenc[ing] set forth” in Saucier remains “often","paragraph_id":"para_1013"},{"text":"appropriate,” even though it “should no longer be regarded","paragraph_id":"para_1014"},{"text":"as mandatory.” Id. at 236.","paragraph_id":"para_1015"},{"text":"I understand why the Supreme Court and other courts,","paragraph_id":"para_1016"},{"text":"including us, saw an analogy between a Safeco defense and","paragraph_id":"para_1017"},{"text":"qualified immunity. Nevertheless, there are important","paragraph_id":"para_1018"},{"text":"differences between the two.","paragraph_id":"para_1019"},{"text":"First, in the realm of constitutional torts, qualified","paragraph_id":"para_1020"},{"text":"immunity is “an immunity from suit rather than a mere","paragraph_id":"para_1021"},{"text":"defense to liability.” Mitchell v. Forsyth, 472 U.S. 511, 526","paragraph_id":"para_1022"},{"text":"(1985) (emphasis in original). The qualified immunity","paragraph_id":"para_1023"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 33","paragraph_id":"para_1024"},{"text":"defense serves “to protect officials who are required to","paragraph_id":"para_1025"},{"text":"exercise their discretion and the related public interest in","paragraph_id":"para_1026"},{"text":"encouraging the vigorous exercise of official authority.”","paragraph_id":"para_1027"},{"text":"Harlow v. Fitzgerald, 457 U.S. 800, 807 (1982) (citation","paragraph_id":"para_1028"},{"text":"omitted). As a result, when a state or federal officer claims","paragraph_id":"para_1029"},{"text":"qualified immunity, district courts are obligated to address","paragraph_id":"para_1030"},{"text":"the claim at “the earliest possible stage of a litigation.”","paragraph_id":"para_1031"},{"text":"Anderson v. Creighton, 483 U.S. 635, 646 n.6 (1987). If the","paragraph_id":"para_1032"},{"text":"district court denies the officer qualified immunity, the","paragraph_id":"para_1033"},{"text":"officer may take an immediate appeal; otherwise, the officer","paragraph_id":"para_1034"},{"text":"proceeds to trial and the immunity is lost. The immediate","paragraph_id":"para_1035"},{"text":"appeal comes within the collateral order doctrine. Plumhoff","paragraph_id":"para_1036"},{"text":"v. Rickard, 572 U.S. 765, 771–72 (2014).","paragraph_id":"para_1037"},{"text":"By contrast, the Safeco defense does not rest on a similar","paragraph_id":"para_1038"},{"text":"public interest rationale. If anything, in the context of","paragraph_id":"para_1039"},{"text":"FCRA’s “consumer oriented objectives,” Guimond v. Trans","paragraph_id":"para_1040"},{"text":"Union Credit Info. Co, 45 F.3d 1329, 1333 (9th Cir. 1995),","paragraph_id":"para_1041"},{"text":"the goals of which Congress described with “expansive","paragraph_id":"para_1042"},{"text":"terms” that reflect its “ambitious” endeavor, Safeco, 551","paragraph_id":"para_1043"},{"text":"U.S. at 62, public interest favors a “liberal [treatment] of the","paragraph_id":"para_1044"},{"text":"FCRA” that would prioritize consumers’ protection, rather","paragraph_id":"para_1045"},{"text":"than defendants’. Guimond, 45 F.3d at 1333. That strongly","paragraph_id":"para_1046"},{"text":"suggests that we should address the antecedent statutory","paragraph_id":"para_1047"},{"text":"question when it is feasible, as we said in Marino. 978 F.3d","paragraph_id":"para_1048"},{"text":"at 674. Unlike qualified immunity, a Safeco defense is not","paragraph_id":"para_1049"},{"text":"immunity from suit, but an affirmative defense to liability. It","paragraph_id":"para_1050"},{"text":"comes with no guarantee of early resolution by the district","paragraph_id":"para_1051"},{"text":"court and no path (outside of certification under 28 U.S.C.","paragraph_id":"para_1052"},{"text":"§ 1292(b)) for immediate appeal to our court from a denial","paragraph_id":"para_1053"},{"text":"of immunity. A case that may ultimately be decided by a","paragraph_id":"para_1054"},{"text":"Safeco defense may well proceed to trial, consuming","paragraph_id":"para_1055"},{"text":"considerable resources. If the defendant then appeals from","paragraph_id":"para_1056"},{"text":"judgment for the plaintiff and asserts a Safeco defense, there","paragraph_id":"para_1057"},{"text":"34 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_1058"},{"text":"is still no guarantee that we will resolve the statutory","paragraph_id":"para_1059"},{"text":"question that was the basis for the suit. We may postpone in","paragraph_id":"para_1060"},{"text":"perpetuity the antecedent statutory question, thus preventing","paragraph_id":"para_1061"},{"text":"consumers from receiving the protection to which FCRA","paragraph_id":"para_1062"},{"text":"entitles them.","paragraph_id":"para_1063"},{"text":"Second, the antecedent question in a qualified immunity","paragraph_id":"para_1064"},{"text":"case is almost always one of constitutional interpretation,","paragraph_id":"para_1065"},{"text":"while the antecedent question in a Safeco defense case is","paragraph_id":"para_1066"},{"text":"statutory. The difference is significant. The kinds of","paragraph_id":"para_1067"},{"text":"constitutional questions we are likely to answer in qualified","paragraph_id":"para_1068"},{"text":"immunity cases derive from fundamental rights—such as","paragraph_id":"para_1069"},{"text":"“unreasonable searches and seizures” and deprivations of","paragraph_id":"para_1070"},{"text":"“due process of law”—that “cannot be reduced to a neat set","paragraph_id":"para_1071"},{"text":"of legal rules.” Dist. of Colum. v. Wesby, 583 U.S. 48, 63–","paragraph_id":"para_1072"},{"text":"64 (2018) (quotation marks and citations omitted). We are","paragraph_id":"para_1073"},{"text":"more likely to discern clear answers from statutory text than","paragraph_id":"para_1074"},{"text":"from constitutional provisions. As one district court","paragraph_id":"para_1075"},{"text":"described the contrast between qualified immunity and a","paragraph_id":"para_1076"},{"text":"Safeco defense, “despite comparisons made to qualified","paragraph_id":"para_1077"},{"text":"immunity analysis, . . . this is not a question of whether a","paragraph_id":"para_1078"},{"text":"legal principle is clearly established in constitutional","paragraph_id":"para_1079"},{"text":"jurisprudence where existing circuit court or Supreme Court","paragraph_id":"para_1080"},{"text":"precedent is usually required. . . . Instead, it is an issue of","paragraph_id":"para_1081"},{"text":"statutory interpretation where there is a greater potential for","paragraph_id":"para_1082"},{"text":"the relevant text to provide clear guidance.” Lengel v.","paragraph_id":"para_1083"},{"text":"HomeAdvisor, Inc., 102 F. Supp. 3d 1202, 1211 (D. Kan.","paragraph_id":"para_1084"},{"text":"2015) (citation omitted).","paragraph_id":"para_1085"},{"text":"Whether we are construing the U.S. Constitution or the","paragraph_id":"para_1086"},{"text":"U.S. Code, we are fulfilling our responsibility to say what","paragraph_id":"para_1087"},{"text":"the law is. But the consequences of our decision to construe","paragraph_id":"para_1088"},{"text":"(or not) the Constitution or a statute differ. The Supreme","paragraph_id":"para_1089"},{"text":"Court has made clear that its judgment on the Constitution is","paragraph_id":"para_1090"},{"text":"final. Although we will afford some respect to Congress’s","paragraph_id":"para_1091"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 35","paragraph_id":"para_1092"},{"text":"constitutional judgment, see City of Boerne v. Flores, 521","paragraph_id":"para_1093"},{"text":"U.S. 507, 535 (1997); Fullilove v. Klutznick, 448 U.S. 448,","paragraph_id":"para_1094"},{"text":"472 (1980), the Supreme Court is the ultimate arbiter of","paragraph_id":"para_1095"},{"text":"cases and controversies, and Congress has no power of","paragraph_id":"para_1096"},{"text":"constitutional revision through ordinary legislation. See City","paragraph_id":"para_1097"},{"text":"of Boerne, 521 U.S. at 529. If constitutional revision is","paragraph_id":"para_1098"},{"text":"required, it is the Supreme Court that must correct its own","paragraph_id":"para_1099"},{"text":"mistakes. See, e.g., Dobbs v. Jackson Women’s Health Org.,","paragraph_id":"para_1100"},{"text":"597 U.S. 215 (2022), overruling Roe v. Wade, 410 U.S. 113","paragraph_id":"para_1101"},{"text":"(1973); Ramos v. Louisiana, 590 U.S. 83 (2020), abrogating","paragraph_id":"para_1102"},{"text":"Apodaca v. Oregon, 406 U.S. 404 (1972); West Va. St. Bd. of","paragraph_id":"para_1103"},{"text":"Educ. v. Barnette, 319 U.S. 624 (1943), overruling","paragraph_id":"para_1104"},{"text":"Minersville Sch. Dist. v. Gobitis, 310 U.S. 586 (1940). The","paragraph_id":"para_1105"},{"text":"Court’s willingness to reach constitutional questions in some","paragraph_id":"para_1106"},{"text":"qualified immunity cases and avoid such questions in others","paragraph_id":"para_1107"},{"text":"may be seen as part of the Court’s agenda-setting function.","paragraph_id":"para_1108"},{"text":"The Court is reluctant, however, to correct errors in","paragraph_id":"para_1109"},{"text":"statutory construction. See Rodriguez de Quijas v.","paragraph_id":"para_1110"},{"text":"Shearson/American Exp., Inc., 490 U.S. 477, 484 (1989).","paragraph_id":"para_1111"},{"text":"The theory is that Congress must be able to rely on what the","paragraph_id":"para_1112"},{"text":"courts have said the statute means, and “Congress remains","paragraph_id":"para_1113"},{"text":"free to alter what [the Court] ha[s] done.” Patterson v.","paragraph_id":"para_1114"},{"text":"McLean Credit Union, 491 U.S. 164, 172–73 (1989). And","paragraph_id":"para_1115"},{"text":"there are any number of instances where Congress has","paragraph_id":"para_1116"},{"text":"reacted to a Supreme Court decision and adopted clarifying","paragraph_id":"para_1117"},{"text":"or corrective amendments. See, e.g., Civil Rights Act of","paragraph_id":"para_1118"},{"text":"1991, legislatively overruling Patterson, 491 U.S. 164; Civil","paragraph_id":"para_1119"},{"text":"Rights Restoration Act of 1987, legislatively overruling","paragraph_id":"para_1120"},{"text":"Grove City College v. Bell, 465 U.S. 555 (1984); Pregnancy","paragraph_id":"para_1121"},{"text":"Discrimination Act of 1978, legislatively overruling Gen.","paragraph_id":"para_1122"},{"text":"Elec. Co. v. Gilbert, 429 U.S. 125 (1976). Congress cannot","paragraph_id":"para_1123"},{"text":"make those adjustments when the federal courts decline to","paragraph_id":"para_1124"},{"text":"decide statutory questions in the first instance. Our decision","paragraph_id":"para_1125"},{"text":"36 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_1126"},{"text":"to avoid construing FCRA effectively deprives Congress of","paragraph_id":"para_1127"},{"text":"the clarity needed to decide whether to exercise its power of","paragraph_id":"para_1128"},{"text":"statutory revision. To be sure, Congress can always","paragraph_id":"para_1129"},{"text":"anticipate statutory ambiguity and step in to clarify the law,","paragraph_id":"para_1130"},{"text":"but it has far less incentive to do so when the federal courts","paragraph_id":"para_1131"},{"text":"have not weighed in. When we decline to say what the law","paragraph_id":"para_1132"},{"text":"is, we not only grant immunity to a defendant who we","paragraph_id":"para_1133"},{"text":"assume is violating FCRA, but we deny clarity to the","paragraph_id":"para_1134"},{"text":"litigants and to Congress. And by refusing to give Congress","paragraph_id":"para_1135"},{"text":"a clear interpretation of its laws, we skew the separation of","paragraph_id":"para_1136"},{"text":"powers.","paragraph_id":"para_1137"},{"text":"Third, we should recognize the contrast in context","paragraph_id":"para_1138"},{"text":"between constitutional torts and suits under FCRA. The","paragraph_id":"para_1139"},{"text":"context for most of our qualified immunity decisions is the","paragraph_id":"para_1140"},{"text":"on-the-ground decisions of state and federal officers. Many","paragraph_id":"para_1141"},{"text":"of those cases are “one-offs.” They are cases against law","paragraph_id":"para_1142"},{"text":"enforcement officers, prison doctors, or social workers with","paragraph_id":"para_1143"},{"text":"child protective services, and they all involve unique facts.","paragraph_id":"para_1144"},{"text":"Qualified immunity cases require us to search for prior","paragraph_id":"para_1145"},{"text":"decisions that provide notice that the officer’s actions violate","paragraph_id":"para_1146"},{"text":"clearly established constitutional standards. The level of","paragraph_id":"para_1147"},{"text":"specificity is demanding. The “courts generally ‘need to","paragraph_id":"para_1148"},{"text":"identify a case where an officer acting under similar","paragraph_id":"para_1149"},{"text":"circumstances . . . was held to have violated’ the","paragraph_id":"para_1150"},{"text":"Constitution. . . . The relevant precedent must define the","paragraph_id":"para_1151"},{"text":"right with a ‘high degree of specificity,’ so that ‘every","paragraph_id":"para_1152"},{"text":"reasonable official would interpret it to establish the","paragraph_id":"para_1153"},{"text":"particular rule the plaintiff seeks to apply.’” Zorn v. Linton,","paragraph_id":"para_1154"},{"text":"607 U.S. 568, 572 (2026) (citations omitted). “[T]he","paragraph_id":"para_1155"},{"text":"‘specificity’ of the rule is ‘especially important in the Fourth","paragraph_id":"para_1156"},{"text":"Amendment context,’” where “[p]robable cause ‘turn[s] on","paragraph_id":"para_1157"},{"text":"the assessment of probabilities in particular factual contexts’","paragraph_id":"para_1158"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 37","paragraph_id":"para_1159"},{"text":"and cannot be ‘reduced to a neat set of legal rules.’” Wesby,","paragraph_id":"para_1160"},{"text":"583 U.S. at 64 (citations omitted)","paragraph_id":"para_1161"},{"text":"By contrast, many of our FCRA cases are challenges to","paragraph_id":"para_1162"},{"text":"corporate policies or processes. Of course, some FCRA","paragraph_id":"para_1163"},{"text":"cases may involve rogue or overly exuberant employees","paragraph_id":"para_1164"},{"text":"whose actions affect small numbers of consumers, but many","paragraph_id":"para_1165"},{"text":"FCRA cases are brought as class actions. This is one of those","paragraph_id":"para_1166"},{"text":"cases. CenturyLink’s decision to pull a potential customer’s","paragraph_id":"para_1167"},{"text":"credit report after step four is not a one-off decision; it is a","paragraph_id":"para_1168"},{"text":"feature, not a bug. To push the qualified immunity analogy,","paragraph_id":"para_1169"},{"text":"CenturyLink’s policy is more like a Monell suit, in which the","paragraph_id":"para_1170"},{"text":"challenge is to the municipality’s own policy or practice, not","paragraph_id":"para_1171"},{"text":"the on-the-ground decision by an individual officer. See Los","paragraph_id":"para_1172"},{"text":"Angeles Cnty., Cal. v. Humphries, 562 U.S. 29, 37 (2010)","paragraph_id":"para_1173"},{"text":"(stating that “‘[l]ocal governing bodies . . . can be sued","paragraph_id":"para_1174"},{"text":"directly under § 1983 for monetary, declaratory, or","paragraph_id":"para_1175"},{"text":"injunctive relief where, as here, the action that is alleged to","paragraph_id":"para_1176"},{"text":"be unconstitutional implements or executes’ . . . a policy or","paragraph_id":"para_1177"},{"text":"custom” (quoting Monell v. New York City Dept. of Social","paragraph_id":"para_1178"},{"text":"Servs., 436 U.S. 658, 690 (1978) (emphasis omitted)). There","paragraph_id":"para_1179"},{"text":"is no qualified immunity for municipalities, Owen v. City of","paragraph_id":"para_1180"},{"text":"Independence, Mo., 445 U.S. 622, 639–50 (1980);","paragraph_id":"para_1181"},{"text":"consequently, when considering Monell liability, we have to","paragraph_id":"para_1182"},{"text":"drive through the constitutional questions independent of the","paragraph_id":"para_1183"},{"text":"qualified immunity of the individual officers. See, e.g.,","paragraph_id":"para_1184"},{"text":"Safford Unified Sch. Dist. No. 1 v. Redding, 557 U.S. 364,","paragraph_id":"para_1185"},{"text":"379 (2009); Horton by Horton v. City of Santa Maria, 915","paragraph_id":"para_1186"},{"text":"F.3d 592, 604–05 (9th Cir. 2019).","paragraph_id":"para_1187"},{"text":"In light of these considerations, I question our decision","paragraph_id":"para_1188"},{"text":"to proceed without deciding the statutory question. The","paragraph_id":"para_1189"},{"text":"provision at issue here, § 1681b, was adopted in 1970. Fifty-","paragraph_id":"para_1190"},{"text":"six years later, we still don’t know when a business","paragraph_id":"para_1191"},{"text":"transaction has been “initiated by the consumer.” Our failure","paragraph_id":"para_1192"},{"text":"38 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_1193"},{"text":"to determine whether CenturyLink’s policy violates § 1681b","paragraph_id":"para_1194"},{"text":"virtually guarantees that there will be further litigation. In","paragraph_id":"para_1195"},{"text":"that litigation, there will be no early resolution of the Safeco","paragraph_id":"para_1196"},{"text":"defense in the district court, and no collateral review in our","paragraph_id":"para_1197"},{"text":"court, only appellate review after the district court has","paragraph_id":"para_1198"},{"text":"rendered a final judgment. Without our judgment as to what","paragraph_id":"para_1199"},{"text":"the law means, Congress has little incentive to take","paragraph_id":"para_1200"},{"text":"clarifying action.","paragraph_id":"para_1201"},{"text":"II","paragraph_id":"para_1202"},{"text":"The antecedent question—whether CenturyLink had “a","paragraph_id":"para_1203"},{"text":"legitimate business need for the information . . . in","paragraph_id":"para_1204"},{"text":"connection with a business transaction that is initiated by the","paragraph_id":"para_1205"},{"text":"consumer,” 15 U.S.C. § 1681b(a)(3)(F)—is, I think, a close","paragraph_id":"para_1206"},{"text":"one. CenturyLink claims it was unwilling to give","paragraph_id":"para_1207"},{"text":"Bultemeyer a cost-of-services estimate until it saw her","paragraph_id":"para_1208"},{"text":"report, and that gave it a “legitimate business need for the","paragraph_id":"para_1209"},{"text":"information.” Even if that is true, it doesn’t tell us whether","paragraph_id":"para_1210"},{"text":"that need was connected to a “business transaction . . .","paragraph_id":"para_1211"},{"text":"initiated by the consumer.” As the per curiam opinion","paragraph_id":"para_1212"},{"text":"explains, CenturyLink proffered dictionary definitions of","paragraph_id":"para_1213"},{"text":"“initiated” that support a reasonable understanding of the","paragraph_id":"para_1214"},{"text":"term: to commence, begin, set going, etc. See Op. at 13","paragraph_id":"para_1215"},{"text":"(quoting dictionaries). By going to CenturyLink’s website","paragraph_id":"para_1216"},{"text":"and clicking through the first steps, Bultemeyer has certainly","paragraph_id":"para_1217"},{"text":"commenced something. Was it a “business transaction”?","paragraph_id":"para_1218"},{"text":"Perhaps. The term is not defined, and reasonable people can","paragraph_id":"para_1219"},{"text":"come to different conclusions about what it means. In","paragraph_id":"para_1220"},{"text":"ordinary conversation, we wouldn’t say “I am going to the","paragraph_id":"para_1221"},{"text":"store to initiate a business transaction.” It’s a pretentious","paragraph_id":"para_1222"},{"text":"statement, an affectation. But it is technically descriptive of","paragraph_id":"para_1223"},{"text":"something. If we did use it conversationally, what would it","paragraph_id":"para_1224"},{"text":"mean? Would we say I commence a business transaction","paragraph_id":"para_1225"},{"text":"every time I walk into CVS or Walmart? Window shop at","paragraph_id":"para_1226"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 39","paragraph_id":"para_1227"},{"text":"Tiffany’s? Review the menu at Olive Garden? I think we","paragraph_id":"para_1228"},{"text":"would conclude not. We may well intend to make a purchase","paragraph_id":"para_1229"},{"text":"at Walmart, but following through on that intention is not","paragraph_id":"para_1230"},{"text":"independent of other factors, especially knowing the price.","paragraph_id":"para_1231"},{"text":"Yet we would be dismayed if Walmart pulled our credit once","paragraph_id":"para_1232"},{"text":"we picked up a cart and passed the greeters just because","paragraph_id":"para_1233"},{"text":"Walmart thought that we were commencing a business","paragraph_id":"para_1234"},{"text":"transaction and it needed our credit information. Have we","paragraph_id":"para_1235"},{"text":"really initiated a business transaction? We certainly have","paragraph_id":"para_1236"},{"text":"taken the first step necessary to consummate a transaction,","paragraph_id":"para_1237"},{"text":"but our long-term demand curve for goods at Walmart is not","paragraph_id":"para_1238"},{"text":"so inelastic that we wouldn’t be willing to leave and see if","paragraph_id":"para_1239"},{"text":"we could find them for less at Target.","paragraph_id":"para_1240"},{"text":"In this context, it seems to me that initiating a “business","paragraph_id":"para_1241"},{"text":"transaction” is closer to some form of offer and acceptance","paragraph_id":"para_1242"},{"text":"than comparison shopping. The “threshold condition for","paragraph_id":"para_1243"},{"text":"contract formation” is “mutual assent.” Williston on","paragraph_id":"para_1244"},{"text":"Contracts § 4:1 (4th ed.). And the “elemental principles of","paragraph_id":"para_1245"},{"text":"contract formation apply with equal force to contracts","paragraph_id":"para_1246"},{"text":"formed online.” Berman v. Freedom Fin. Network, LLC, 30","paragraph_id":"para_1247"},{"text":"F.4th 849, 855–56 (9th Cir. 2022). When an online shopper","paragraph_id":"para_1248"},{"text":"receives “notice of the terms being offered” and agrees to","paragraph_id":"para_1249"},{"text":"those terms, the vendor may infer assent. Id. at 856; see id.","paragraph_id":"para_1250"},{"text":"(“The most straightforward application of these principles in","paragraph_id":"para_1251"},{"text":"the online world involves so-called ‘clickwrap’ agreements,","paragraph_id":"para_1252"},{"text":"in which a website presents users with specified contractual","paragraph_id":"para_1253"},{"text":"terms on a pop-up screen and users must check a box","paragraph_id":"para_1254"},{"text":"explicitly stating ‘I agree’ in order to proceed.”). A crucial","paragraph_id":"para_1255"},{"text":"component of contract formation in online shopping, then, is","paragraph_id":"para_1256"},{"text":"the moment when a consumer knows all of an offeror’s","paragraph_id":"para_1257"},{"text":"terms. Only then can the consumer’s subsequent action","paragraph_id":"para_1258"},{"text":"represent assent. In my view, there can be no initiation of a","paragraph_id":"para_1259"},{"text":"business transaction on the part of a consumer—that is, no","paragraph_id":"para_1260"},{"text":"40 BULTEMEYER V. CENTURYLINK, INC.","paragraph_id":"para_1261"},{"text":"perceptible shift from mere browsing or comparison","paragraph_id":"para_1262"},{"text":"shopping into contract formation—until the consumer","paragraph_id":"para_1263"},{"text":"knows the material terms for the purchase.1","paragraph_id":"para_1264"},{"text":"Unlike our putative Walmart purchaser, our window","paragraph_id":"para_1265"},{"text":"shopper at Tiffany’s, or our gustatory voyeur at Olive","paragraph_id":"para_1266"},{"text":"Garden, a potential consumer clicking through step four on","paragraph_id":"para_1267"},{"text":"CenturyLink’s website lacks a crucial detail about the","paragraph_id":"para_1268"},{"text":"potential business transaction: The cost of CenturyLink’s","paragraph_id":"para_1269"},{"text":"services. In that situation, I would hold that until Bultemeyer","paragraph_id":"para_1270"},{"text":"knew the full cost of services, including whether","paragraph_id":"para_1271"},{"text":"CenturyLink would require a deposit, and hit the “submit”","paragraph_id":"para_1272"},{"text":"button indicating that she was ready to purchase","paragraph_id":"para_1273"},{"text":"CenturyLink’s services, she had not initiated a transaction.","paragraph_id":"para_1274"},{"text":"At that point, CenturyLink would have good reason to ensure","paragraph_id":"para_1275"},{"text":"that the applicant was not fraudulent and to determine","paragraph_id":"para_1276"},{"text":"whether the customer was financially qualified. This rule","paragraph_id":"para_1277"},{"text":"has the advantage of being clear to all—it is a brightline rule,","paragraph_id":"para_1278"},{"text":"one easily applied in the context of the online market.","paragraph_id":"para_1279"},{"text":"Although the rule is less convenient for CenturyLink, it","paragraph_id":"para_1280"},{"text":"protects the consumer until the last moment. And, if","paragraph_id":"para_1281"},{"text":"CenturyLink would like to see its potential customers’ credit","paragraph_id":"para_1282"},{"text":"report at an earlier step, there is an obvious solution: Ask for","paragraph_id":"para_1283"},{"text":"consent before pulling the report.","paragraph_id":"para_1284"},{"text":"***","paragraph_id":"para_1285"},{"text":"In sum, CenturyLink’s reading of FCRA was reasonable,","paragraph_id":"para_1286"},{"text":"but in error, and I think it is important to render a clarifying","paragraph_id":"para_1287"},{"text":"1 Judge Clifton has a contrary position. Predictably, it is a reasonable","paragraph_id":"para_1288"},{"text":"view of a legal question I have already described as “close.” See supra","paragraph_id":"para_1289"},{"text":"at 38. I have no vested interest in my position, but whether my view or","paragraph_id":"para_1290"},{"text":"Judge Clifton’s view is correct, the parties here would be better off","paragraph_id":"para_1291"},{"text":"having an answer to that question.","paragraph_id":"para_1292"},{"text":"BULTEMEYER V. CENTURYLINK, INC. 41","paragraph_id":"para_1293"},{"text":"statement of law. Otherwise we will have issued","paragraph_id":"para_1294"},{"text":"CenturyLink a license to violate FCRA by raising the same","paragraph_id":"para_1295"},{"text":"Safeco defense that releases the company from liability in","paragraph_id":"para_1296"},{"text":"this present case. 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