Ting

Darcy Ting, individually and on behalf of all others similarly situated, and Consumer Action, a non-profit membership organization, both as private attorneys general, brought suit against AT&T, alleging that AT&T’s Consumer Services Agreement (“CSA”) violates California’s Consumer Legal Remedies Act and that state’s Unfair Practices Act by barring customers from, among other things, pursuing claims against AT&T on a classwide basis. Finding the CSA unconscionable and in violation of California public policy, the district court 1 issued a permanent injunction against enforcement of sections 4 and 7 of the CSA. See Ting v. AT&T, 182 F.Supp.2d 902 (N.D.Cal.2002). AT&T appeals on the ground that the application of California’s consumer protection laws is preempted by the Federal Communications Act and the Federal Arbitration Act. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm in part and reverse in part.

BACKGROUND

Congress enacted the Federal Communications Act (“Communications Act” or “1934 Act”) in 1934. 48 Stat. 1064 (codified, as amended, at 47 U.S.C. § 151 , et seq.). At the time, AT&T enjoyed a virtual monopoly over the nation’s telephone service…