Should Corporations Have a Right to Privacy?
Back in 2004 the FCC investigated the government billing practices of AT&T. The investigation lead to a settlement in which AT&T paid $500,000. Afterwards, a trade group representing some of the telecommunication giant's competitors wanted to find out exactly what the FCC discovered during its investigation, and so they filed a Freedom of Information Act request.
Exemption 7(C) of FOIA allows the government to withhold releasing information that would cause an unwarranted invasion of personal privacy. AT&T, claiming a right of personal privacy, appealed within the FCC to prevent the release of the information. The FCC disagreed and AT&T then appealed to the Third Circuit. The Third Circuit reversed and sided with AT&T stating, "corporations, like human beings, face public embarrassment, harassment and stigma” by having their private information released. Now the Supreme Court has decided to hear the case this term.
The "personhood" of corporations has always been a controversial concept under the law. Last term, in the Citizens United case, the Supreme Court held that corporations have free speech rights under the First Amendment when it comes to political advocacy.
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If corporations are found to have privacy rights similar to individuals it could have a profound effect on the public's knowledge of corporate behavior. Many feel that the citizens' right to know about information affecting the public interest outweighs the privacy rights a corporation might have. For example, some fear that corporate privacy claims could be used in cases involving safety records (think Toyota, BP), or certain policies of financial institutions (think Goldman Sachs). Stay tuned.
