A U.S. appeals court has struck down part of an Environmental Protection Agency (EPA) rule that would have permitted the disclosure of trade secrets related to chemicals, marking a significant victory for chemical industry groups. The ruling, issued by a three-judge panel on December 20, addresses concerns that the rule violated legal protections for confidential business information under the Toxic Substances Control Act.
The court ruled in favor of two major trade groups—the American Chemistry Council and the American Fuel and Petrochemical Manufacturers—who argued that the EPA’s 2023 rule would improperly allow the agency to disclose trade secrets. These groups pointed out that the rule ignored situations where downstream manufacturers, such as foreign importers, may lack knowledge of a chemical’s proprietary ingredients, potentially resulting in unintended public disclosure.
While the court vacated the part of the rule that would have facilitated such disclosures, it upheld the broader framework of the rule, which is designed to enhance transparency about chemicals in the marketplace. The EPA’s initial intent was to make more safety and health data about chemicals accessible to the public, claiming the rule would bolster the agency’s chemical safety program.
However, environmental advocates, including the Environmental Defense Fund, expressed disappointment. They had argued that the rule did not go far enough in requiring the disclosure of important health and safety information about chemicals. Despite this, the court sided with the EPA’s interpretation, rejecting the environmentalists’ stance that the rule improperly restricted such disclosures.
The ruling means the EPA will need to reconsider its approach to disclosing trade secrets while still aiming to meet transparency goals in the chemical industry. The court’s decision underscores the ongoing tension between corporate confidentiality and public health concerns.
