Reliance Electric Company v. Consumer Product Safety Commission

924 F.2d 274, 288 U.S. App. D.C. 30, 1991 U.S. App. LEXIS 803, 1991 WL 4282
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 22, 1991
Docket89-5396
StatusPublished
Cited by16 cases

This text of 924 F.2d 274 (Reliance Electric Company v. Consumer Product Safety Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reliance Electric Company v. Consumer Product Safety Commission, 924 F.2d 274, 288 U.S. App. D.C. 30, 1991 U.S. App. LEXIS 803, 1991 WL 4282 (D.C. Cir. 1991).

Opinion

Opinion for the court filed by Circuit Judge RANDOLPH.

RANDOLPH, Circuit Judge:

Appellants sought an injunction to prevent the Consumer Product Safety Commission from disclosing certain documents requested under the Freedom of Information Act (FOIA) (5 U.S.C. § 552). The Commission developed and gathered these documents during its inconclusive investigation of circuit breakers manufactured by appellants’ subsidiary. On cross motions for summary judgment, the district court sustained several of appellants’ claims, but in a portion of its order challenged on appeal, the court permitted the Commission to release approximately 500 pages of information over appellants’ objections. We affirm in part and vacate and remand in part.

I

The Consumer Product Safety Act empowers the Commission to investigate the safety of consumer products, 15 U.S.C. § 2054(b), and to ban products it finds hazardous, 15 U.S.C. § 2057. The Act “gave the Commission broad powers to gather, analyze, and disseminate vast amounts of private information.” Consumer Product Safety Comm’n v. GTE Sylvania, Inc., 447 U.S. 102, 111, 100 S.Ct. 2051, 2057, 64 L.Ed.2d 766 (1980). In order to protect manufacturers of consumer products, section 6 of the Act, 15 U.S.C. § 2055, restricts the Commission’s authority to disclose information gathered during its investigations. Section 6(b)(1), with which we deal here, applies whenever the Commission plans to release data on its own initiative or in response to a FOIA request. See GTE Sylvania, Inc., 447 U.S. at 105, 122, 100 S.Ct. at 2054, 2063. It requires the Commission to notify manufacturers at least 30 days before disclosing information relating to their products; during that period, the manufacturer is entitled to submit comments to the Commission about the information. 15 U.S.C. § 2055(b)(1). Section 6(b)(1) further requires that the Commission “take reasonable steps to assure” (1) that the information is “accurate,” (2) that disclosure will be “fair in the circumstances,” and (3) that disclosure will be “reasonably related to effectuating the purposes of” the Act. Id. In this manner Congress sought to guard against the Commission’s destroying a manufacturer’s reputation by releasing inaccurate and unfair information about the company’s product. See GTE Sylvania, Inc., 447 U.S. at 110-11, 100 S.Ct. at 2057. The Commission has implemented these statutory requirements through regulations. 16 C.F.R. Part 1101 (1989).

This case concerns information compiled during the Commission’s investigation of residential circuit breakers manufactured by Federal Pacific Electric Company, formerly a subsidiary of appellant Reliance Electric Company and now a part of appellant Challenger Electric Equipment Corporation. Circuit breakers prevent fires by interrupting the flow of electrical current when wiring overheats or when demand for current exceeds a circuit’s capacity. In 1980, after discovering that Federal Pacific’s “Stab-Lok” circuit breakers did not fully meet the safety standards of Underwriters Laboratories, Reliance notified the Commission as the Act required. 15 U.S.C. § 2064(b). The Commission then opened an investigation.

During the next two years, the investigation generated a substantial amount of technical information consisting of raw data, explanatory memoranda and analyses of test results. A large portion of this material was preliminary in nature and rested on hypotheses Reliance contested. For its part, Reliance supplied the Commission with its own test results and other *276 data to show that the circuit breakers were safe for residential use.

On March 3, 1983, the Commission announced its decision to close the investigation. The Commission’s press release, set forth fully in the appendix to this opinion, stated that it could not, at that time, link the circuit breakers with “a serious risk of injury to consumers.” The Commission also noted that it could not reach any firm conclusions unless it conducted a further probe and that it was unwilling to expend its limited funds for this purpose in view of the “uncertainty of the results.”

The present controversy arose in 1984, when the Commission received several FOIA requests for agency records compiled during the Commission’s investigation of Federal Pacific’s circuit breakers. As section 6(b)(1) required, the Commission notified Reliance of its intention to release these records. Reliance objected and submitted a 120-page memorandum expressing its views. Reliance claimed that some documents should not be disclosed because they contained trade secrets (15 U.S.C. § 2055(a)(2)) or data submitted to the Commission in confidence under section 15(b) of the Act (15 U.S.C. § 2064(b)), or because they were within certain FOIA exemptions (5 U.S.C. § 552(b)(5) & (7)(B)). Reliance also resisted disclosure on section 6(b)(1) grounds, claiming that the Commission’s information was inaccurate or that its dissemination would be unfair to Reliance and would not advance the Act’s purposes.

Two and one-half years after receiving Reliance’s detailed submission, the Commission responded in an eight-page letter. The Commission concurred with many of Reliance’s claims. With respect to the bulk of Reliance’s section 6(b)(1) objections, however, the Commission announced its decision to disclose the disputed information. The Commission added that, in order to assure fairness it would provide the recipients of the documents with a copy of its 1983 press release and an explanatory statement mentioning some of Reliance’s claims.

Reliance’s memorandum, the Commission’s letter to Reliance, and the disputed information are under seal and our description must therefore be couched in general terms. The information itself consisted of many highly-technical reports, raw data, engineering staff memoranda, mathematical models and the like. With respect to many, but not all, of these items Reliance had interposed an objection based on their alleged inaccuracy within the meaning of section 6(b)(1) of the Act. Rather than explaining why it considered the documents accurate, however, the Commission simply treated Reliance’s objections as if the company were concerned solely with the fairness of releasing this material.

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Bluebook (online)
924 F.2d 274, 288 U.S. App. D.C. 30, 1991 U.S. App. LEXIS 803, 1991 WL 4282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reliance-electric-company-v-consumer-product-safety-commission-cadc-1991.