Food Marketing Institute v. Argus Leader Media involves the interpretation of Exemption 4 to the Freedom of Information Act (FOIA), which protects from mandatory disclosure all “confidential” private-sector “commercial or financial information” that comes into the government’s possession.
On June 24, 2019, the U.S. Supreme Court released a decision in this case that has always been about protecting private parties’ confidential business information required to be provided to the government. FMI is grateful that the Court clarified FOIA’s Exemption 4 to prevent the disclosure of confidential commercial information that would put businesses at competitive disadvantages. We support FOIA and believe it is important legislation that should be interpreted as written.
The issue before the Court in Food Marketing Institute vs. Argus Leader Media involves whether FOIA’s Exemption 4 protects from mandatory disclosure store-level SNAP redemption data. Retailers carefully safeguard such sensitive information, which has significant value to competitors. FMI therefore intervened in the lawsuit on appeal to argue that store-level SNAP redemption data constitutes confidential commercial information, and is therefore exempt from disclosure under FOIA. Argus Leader, a South Dakota newspaper owned by Gannett, has argued that taxpayers have a right to know where government dollars are spent. FMI and its members don’t disagree with that general proposition—but food retailers of all sizes and geographic locations have expressed apprehension about the release of this individualized, highly granular information, which says less about how and where government money is spent than on the specific competitive position of particular stores and companies. Smaller companies have expressed concern over larger U.S. competitors receiving the data, and larger U.S. players have expressed concern about international online operators without existing U.S. stores gaining access to this confidential sales data.
April 22, 2019 - Oral Arguments Before the Supreme Court
Download Oral Arguments Transcript | Listen to Oral Arguments Audio
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