A federal appeals court struck down the...

A federal appeals court struck down the Federal Communications Commission’s rule requiring telephone companies to refund to customers any earnings in excess of that authorized by the FCC. The U.S. Court of Appeals for the District of Columbia said the refund mechanism is “arbitrary and capricious.” The refund rule, adopted in 1984 and challenged by American Telephone & Telegraph Co., requires a phone company to refund earnings above a target amount, but does not allow a carrier to recoup any shortfall in its earnings below the target.