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SUPREME COURT OF THE UNITED STATES
_________________
No. 18–481
_________________
FOOD MARKETING INSTITUTE, PETITIONER
v.
ARGUS LEADER MEDIA, dba ARGUS LEADER
on writ of certiorari to the united states
court of appeals for the eighth circuit
[June 24, 2019]
Justice Gorsuch delivered the opinion of the
Court.
Congress has instructed that the disclosure re-
quirements of the Freedom of Information Act do “not apply” to
“confidential” private-sector “commercial or financial information”
in the government’s possession. But when does information provided
to a federal agency qualify as “confidential”? The Food Marketing
Institute says it’s enough if the owner keeps the information
private rather than releasing it publicly. The government suggests
that an agency’s promise to keep information from disclosure may
also suffice to render it confidential. But the courts below
imposed a different requirement yet, holding that information can
never be deemed confidential unless disclosing it is likely to
result in “substantial competitive harm” to the business that
provided it. Finding at least this “competitive harm” requirement
inconsistent with the terms of the statute, we reverse.
I
This case began when Argus Leader, a South
Dakota newspaper, filed a FOIA request for data collected by the
United States Department of Agriculture. The USDA administers the
national food-stamp program, known as the Supplemental Nutrition
Assistance Program. Argus Leader asked the USDA for the names and
addresses of all retail stores that participate in SNAP and each
store’s annual SNAP redemption data from fiscal years 2005 to 2010,
which we refer to as “store-level SNAP data.” The USDA tried to
meet the paper halfway. It released the names and addresses of the
participating stores but declined to disclose the requested
store-level SNAP data. As relevant here, the USDA invoked FOIA’s
Exemption 4, which shields from disclosure “trade secrets and
commercial or financial information obtained from a person and
privileged or confidential.” 5 U. S. C. §552(b)(4).
Unsatisfied by the agency’s disclosure, Argus
sued the USDA in federal court to compel release of the store-level
SNAP data. Like several other courts of appeals, the Eighth Circuit
has engrafted onto Exemption 4 a so-called “competitive harm” test,
under which commercial information cannot be deemed “confidential”
unless disclosure is “likely . . . to cause substantial
harm to the competitive position of the person from whom the
information was obtained.”
Argus Leader Media v.
United
States Dept. of Agriculture, 889 F.3d 914, 915 (2018) (internal
quotation marks omitted). So the district court held a two-day
bench trial to determine whether disclosure of the store-level SNAP
data would cause substantial competitive harm to participating
retailers.
At trial, witnesses for the USDA testified that
retailers closely guard store-level SNAP data and that disclosure
would threaten stores’ competitive positions. They explained that
retailers use models of consumer behavior to help choose new store
locations and to plan sales strategies. Competitors’ estimated
sales volumes represent an important component of these models and
can be time consuming and expensive to generate. And a model’s
accuracy and utility increase significantly if it includes a
rival’s actual sales data rather than mere estimates. So disclosure
of store-level SNAP data could create a windfall for competitors:
Stores with high SNAP redemptions could see increased competition
for SNAP customers from existing competitors, new market entrants
could use SNAP data to determine where to build their stores, and
SNAP-redemption data could be used to discern a rival retailer’s
overall sales and develop strategies to win some of that business
too. For its part, Argus Leader offered no fact witnesses and did
not dispute that retailers customarily keep this data private or
that it bears competitive significance. Instead, the company
contended that any competitive harm associated with disclosure
would not be substantial. In the end, the district court agreed;
while “[c]ompetition in the grocery business is fierce,” and while
the record supported the conclusion that revealing store-level SNAP
data could work some competitive harm, the court could not say that
disclosure would rise to the level of causing “
substantial
competitive harm,” and thus ordered disclosure.
Argus Leader
Media v.
United States Dept. of Agriculture, 224
F. Supp. 3d 827, 833–835 (SD 2016) (emphasis added).
The USDA declined to appeal, but it alerted the
retailers who had provided the data so that they could consider
intervening to pursue the case further. The Food Marketing
Institute, a trade association representing grocery retailers,
answered the call. It successfully moved to intervene under Federal
Rule of Civil Procedure 24(a) and then filed its own appeal.
Meanwhile, the USDA assured the district court that it would not
disclose the retailers’ data pending appeal. Before the Eighth
Circuit, the Institute argued that the court should discard the
“substantial competitive harm” test and apply instead the ordinary
public meaning of the statutory term “confidential.” The court
rejected that argument and affirmed. We granted the Institute a
stay of the Eighth Circuit’s mandate and, later, its petition for
certiorari. 585 U. S. ___ (2018); 586 U. S. ___
(2019).
II
Before turning to the merits, we confront a
threshold challenge to our jurisdiction: Argus Leader questions
whether the Institute has standing to pursue this appeal. To show
standing under Article III, an appealing litigant must demonstrate
that it has suffered an actual or imminent injury that is “fairly
traceable” to the judgment below and that could be “redress[ed] by
a favorable ruling.”
Monsanto Co. v.
Geertson Seed
Farms,
561 U.S.
139, 149–150 (2010).
The Institute satisfies each of these criteria.
Whether or not disclosure of the contested data would cause its
member retailers “substantial competitive harm,” the record before
us reveals (and Argus Leader does not meaningfully dispute) that
disclosure likely would cause them
some financial injury. As
the Eighth Circuit observed, the grocery industry is “highly
competitive,” and disclosure of store-level SNAP data likely would
help competitors win business from the Institute’s members. 889
F. 3d, at 916. This concrete injury is, as well, directly
traceable to the judgment ordering disclosure. And a favorable
ruling from this Court would redress the retailers’ injury by
reversing that judgment.
Argus Leader insists that the Institute’s injury
is not redressable because a favorable ruling would merely restore
the government’s
discretion to withhold the requested data
under Exemption 4, and it might just as easily choose to provide
the data anyway. But the government has represented unequivocally
that, consistent with its longstanding policy and past assurances
of confidentiality to retailers, it “will not disclose” the
contested data unless compelled to do so by the district court’s
order. Brief for United States as
Amicus Curiae 35; accord,
Tr. of Oral Arg. 18–22. A reversal here thus would ensure exactly
the relief the Institute requests. That is enough to satisfy
Article III.
Monsanto, 561 U. S., at 152–153.
III
A
As we’ve seen, Exemption 4 shields from
mandatory disclosure “commercial or financial information obtained
from a person and privileged or confidential.” 5 U. S. C.
§552(b)(4). But FOIA nowhere defines the term “confidential.” So,
as usual, we ask what that term’s “ordinary, contemporary, common
meaning” was when Congress enacted FOIA in 1966.
Perrin v.
United States,
444 U.S.
37, 42 (1979). We’ve done the same with other undefined terms
in FOIA. See,
e.g.,
Milner v.
Department of
Navy,
562 U.S.
562, 569 (2011);
United States v.
Weber Aircraft
Corp.,
465 U.S.
792, 804 (1984).
The term “confidential” meant then, as it does
now, “private” or “secret.” Webster’s Seventh New Collegiate
Dictionary 174 (1963). Contemporary dictionaries suggest two
conditions that might be required for information communicated to
another to be considered confidential. In one sense, information
communicated to another remains confidential whenever it is
customarily kept private, or at least closely held, by the person
imparting it. See,
e.g., Webster’s Third New International
Dictionary 476 (1961) (“known only to a limited few” or “not
publicly disseminated”); Black’s Law Dictionary 370 (rev. 4th ed.
1968) (“intended to be held in confidence or kept secret”). In
another sense, information might be considered confidential only if
the party receiving it provides some assurance that it will remain
secret. See,
e.g., 1 Oxford Universal Dictionary Illustrated
367 (3d ed. 1961) (“spoken or written in confidence”); Webster’s
New World Dictionary 158 (1960) (“told in confidence”).
Must both of these conditions be met for
information to be considered confidential under Exemption 4? At
least the first condition has to be; it is hard to see how
information could be deemed confidential if its owner shares it
freely. And there’s no question that the Institute’s members
satisfy this condition; uncontested testimony established that the
Institute’s retailers customarily do not disclose store-level SNAP
data or make it publicly available “in any way.” See,
e.g.,
App. 93–94. Even within a company, witnesses testified, only small
groups of employees usually have access to it. But what about the
second condition: Can privately held information
lose its
confidential character for purposes of Exemption 4 if it’s
communicated to the government without assurances that the
government will keep it private? As it turns out, there’s no need
to resolve that question in this case because the retailers before
us clearly satisfy this condition too. Presumably to induce
retailers to participate in SNAP and provide store-level
information it finds useful to its adminstration of the program,
the government has long promised them that it will keep their
information private. See,
e.g., 43 Fed. Reg. 43275 (1978);
see also Brief for United States as
Amicus Curiae 27–30.
Early courts of appeals confronting Exemption 4
interpreted its terms in ways consistent with these understandings.
In
GSA v.
Benson, 415 F.2d 878, 881 (1969), for
example, the Ninth Circuit concluded that Exemption 4 would
“ ‘protect information that a private individual wishes to
keep confidential for his own purposes, but reveals to the
government under the express or implied promise’ ” of
confidentiality. The D. C. Circuit similarly held that
Exemption 4 covered sales documents “ ‘which would customarily
not be released to the public’ ” and which the government
“agreed to treat . . . as confidential.”
Sterling Drug
Inc. v.
FTC, 450 F.2d 698, 709 (1971); see also
Grumman Aircraft Eng. Corp. v.
Renegotiation Bd., 425
F.2d 578, 580, 582 (1970) (information a private party “submitted
‘in confidence’ ” or “would not reveal to the public [is]
exempt from disclosure”).
B
Notably lacking from dictionary definitions,
early case law, or any other usual source that might shed light on
the statute’s ordinary meaning is any mention of the “substantial
competive harm” requirement that the courts below found unsatisfied
and on which Argus Leader pins its hopes. Indeed, when called on
some years ago to interpret the similar phrase “information
furnished by a confidential source” in FOIA Exemption 7(D),
§552(b)(7)(D), this Court looked, as we do now, to “common usage”
and never suggested that the government must prove that the
disclosure of a source’s information would result in substantial
harm.
Department of Justice v.
Landano,
508 U.S.
165, 173–174 (1993).
So where
did the “substantial competitive
harm” requirement come from? In 1974, the D. C. Circuit
declared that, in addition to the requirements actually set forth
in Exemption 4, a “court must also be satisfied that non-disclosure
is justified by the legislative purpose which underlies the
exemption.”
National Parks & Conservation Assn. v.
Morton, 498 F.2d 765, 767. Then, after a selective tour
through the legislative history, the court concluded that
“commercial or financial matter is ‘confidential’ [only] if
disclosure of the information is likely . . . (1) to
impair the Government’s ability to obtain necessary information in
the future; or (2) to cause substantial harm to the competitive
position of the person from whom the information was obtained.”
Id., at 770. Without much independent analysis, a number of
courts of appeals eventually fell in line and adopted variants of
the
National Parks test. See
Contract Freighters,
Inc. v.
Secretary of U. S. Dept. of Transp.,
260 F.3d 858, 861 (CA8 2001) (collecting cases).
We cannot approve such a casual disregard of the
rules of statutory interpretation. In statutory interpretation
disputes, a court’s proper starting point lies in a careful
examination of the ordinary meaning and structure of the law
itself.
Schindler Elevator Corp. v.
United States ex rel.
Kirk,
563 U.S.
401, 407 (2011). Where, as here, that examination yields a
clear answer, judges must stop.
Hughes Aircraft Co. v.
Jacobson,
525 U.S.
432, 438 (1999)
. Even those of us who sometimes consult
legislative history will never allow it to be used to “muddy” the
meaning of “clear statutory language.”
Milner, 562
U. S., at 572. Indeed, this Court has repeatedly refused to
alter FOIA’s plain terms on the strength only of arguments from
legislative history. See,
e.g., Landano, 508 U. S., at
178 (refusing to expand the plain meaning of Exemption 7(D) based
on legislative history);
Weber Aircraft, 465 U. S., at
800–803 (refusing to restrict Exemption 5 based on legislative
history).
National Parks’ contrary approach is a
relic from a “bygone era of statutory construction.” Brief for
United States as
Amicus Curiae 19. Not only did
National
Parks inappropriately resort to legislative history before
consulting the statute’s text and structure, once it did so it went
even further astray. The court relied heavily on statements from
witnesses in congressional hearings years earlier on a different
bill that was never enacted into law. 498 F. 2d, at 767–769.
Yet we can all agree that “excerpts from committee hearings” are
“ ‘among the least illuminating forms of legislative
history.’ ”
Advocate Health Care Network v.
Stapleton, 581 U. S. ___, ___ (2017) (slip op., at 12);
see also
Kelly v.
Robinson,
479 U.S.
36, 51, n. 13 (1986) (declining to “accord any
significance” to “comments in [legislative] hearings”). Perhaps
especially so in cases like this one, where the witness statements
do not comport with official committee reports that are consistent
with the plain and ordinary meaning of the statute’s terms. See
S. Rep. No. 813, 89th Cong., 1st Sess., 9 (1965) (Exemption 4
protects information “which would customarily not be released to
the public by the person from whom it was obtained” such as
“business sales statistics” and “customer lists”); H. R. Rep.
No. 1497, 89th Cong., 2d Sess., 10 (1966) (Exemption 4 exempts
material “if it would not customarily be made public by the person
from whom it was obtained by the Government” and “information which
is given to an agency in confidence” such as “business sales
statistics”).
Unsurprisingly,
National Parks has drawn
considerable criticism over the years. See,
e.g.,
Critical Mass Energy Project v.
NRC, 931 F.2d 939,
947 (CADC 1991) (Randolph, J., concurring) (
National Parks
was “ ‘fabricated . . . out of whole cloth’ ”);
New Hampshire Right to Life v.
Department of Health and
Human Servs., 577 U. S. ___ (2015) (Thomas, J., joined by
Scalia, J., dissenting from denial of certiorari). Even the
D. C. Circuit has distanced itself from the decision. While
retaining
National Parks principally as a matter of
stare
decisis in the context of information a private entity is
required to provide to the government, the court has
pointedly declined to extend the
National Parks test to
information provided
voluntarily to the government under
Exemption 4. There, the court has adhered to a much more
traditional understanding of the statutory term “confidential,”
holding that information qualifies as confidential “if it is of a
kind that would customarily not be released to the public by the
person from whom it was obtained.”
Critical Mass Energy
Project v.
NRC, 975 F.2d 871, 879–880 (CADC 1992) (en
banc); see also
id., at 880–882 (Randolph, J., concurring).
Nor, unbound by D. C. Circuit precedent, can we discern a
persuasive reason to afford the
same statutory term two such
radically different constructions.
Ratzlaf v.
United
States,
510 U.S.
135, 143 (1994).
C
That leaves Argus Leader to try to salvage the
result, if not the reasoning, of
National Parks. But here
its arguments prove no more persuasive. The company begins by
rearranging the text of Exemption 4 to create a phrase that does
not appear in the statute: “confidential commercial information.”
Then, it suggests this synthetic term mirrors a preexisting common
law term of art. And finally it asserts that the common law term
covers only information whose release would lead to substantial
competitive harm. But Argus Leader points to no treatise or case
decided before Exemption 4’s adoption that assigned any such
meaning to the terms actually before us: “commercial or financial
information [that is] privileged or confidential.” So even
accepting (without granting) that
other phrases may carry
the specialized common law meaning Argus Leader supposes, the
parties have mustered no evidence that the terms of Exemption 4 did
at the time of their adoption. Nor will this Court ordinarily imbue
statutory terms with a specialized common law meaning when Congress
hasn’t itself invoked the common law terms of art associated with
that meaning. See,
e.g., Bruesewitz v.
Wyeth LLC,
562 U.S.
223, 233–235 (2011).
Alternatively, the company suggests that,
whatever the merits of
National Parks as an initial matter,
Congress effectively ratified its understanding of the term
“confidential” by enacting similar phrases in other statutes in the
years since that case was decided. To be sure, the ratification
canon can sometimes prove a useful interpretive tool. But it
derives from the notion that Congress is aware of a definitive
judicial interpretation of a statute when it reenacts the
same statute using the same language.
Helsinn Healthcare
S. A. v.
Teva Pharmaceuticals USA, Inc., 586
U. S. ___, ___ (2019) (slip op., at 7). And Congress has never
reenacted Exemption 4. So whether Congress’s use of similar
language in other statutes after
National Parks might (or
might not) tell us what later Congresses understood those other
statutes to mean, it tells us nothing about Congress’s
understanding of the language it enacted in Exemption 4 in
1966.
Finally, Argus urges us to adopt a “substantial
competitive harm” requirement as a matter of policy because it
believes FOIA exemptions should be narrowly construed. But as we
have explained in connection with another federal statute, we
normally “have no license to give [statutory] exemption[s] anything
but a fair reading.”
Encino Motorcars, LLC v.
Navarro, 584 U. S. ___, ___ (2018) (slip op., at 9).
Nor do we discern a reason to depart from that rule here: FOIA
expressly recognizes that “important interests [are] served by
[its] exemptions,”
FBI v.
Abramson,
456 U.S.
615, 630–631 (1982), and “[t]hose exemptions are as much a part
of [FOIA’s] purpose[s and policies] as the [statute’s disclosure]
requirement,”
Encino Motorcars, 584 U. S., at ___ (slip
op., at 9). So, just as we cannot properly
expand Exemption
4 beyond what its terms permit, see,
e.g., Milner,
562 U. S., at 570–571, we cannot arbitrarily
constrict
it either by adding limitations found nowhere in its terms.
Our dissenting colleagues appear to endorse
something like this final argument. They seem to agree that the law
doesn’t demand proof of “substantial” or “competitive” harm, but
they think it would be a good idea to require a showing of
some harm. Neither side, however, has advocated for such an
understanding of the statute’s terms. And our colleagues’ brief
brush with the statutory text doesn’t help; they cite exclusively
from specialized dictionary definitions lifted from the national
security classification context that have no bearing on Exemption
4. Really, our colleagues’ submission boils down to a policy
argument about the benefits of broad disclosure. But as Justice
Breyer has noted, when Congress enacted FOIA it sought a “workable
balance” between disclosure and other governmental
interests—interests that may include providing private parties with
sufficient assurances about the treatment of their proprietary
information so they will cooperate in federal programs and supply
the government with information vital to its work. See
Milner, 562 U. S., at 589 (dissenting opinion) (arguing for
a broad exemption from FOIA disclosure obligations to honor a
“workable balance” between disclosure and privacy).
*
At least where commercial or financial
information is both customarily and actually treated as private by
its owner and provided to the government under an assurance of
privacy, the information is “confidential” within the meaning of
Exemption 4. Because the store-level SNAP data at issue here is
confidential under that construction, the judgment of the court of
appeals is reversed and the case is remanded for further
proceedings consistent with this opinion.
It is so ordered.