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Kimberly-Clark Corp. v. Dist. of Columbia

Citation: 286 F. Supp. 3d 128Docket: Civil Action No. 17–1901 (JEB)

Court: Court of Appeals for the D.C. Circuit; December 21, 2017; Federal Appellate Court

Narrative Opinion Summary

The case involves a challenge by Kimberly-Clark Corporation against the enforcement of the District of Columbia's Nonwoven Disposable Products Act, which sets standards for labeling wipes as 'flushable.' The dispute centers on the Act’s potential infringement on Kimberly-Clark’s First Amendment rights, specifically regarding commercial speech. The District enacted the legislation to mitigate sewer clogs caused by wipes, but Kimberly-Clark argued that the labeling requirements would force it to alter its marketing, violating its free speech rights. The Court granted a preliminary injunction favoring Kimberly-Clark, emphasizing the likelihood of success on its First Amendment claim and the irreparable harm it would face without an injunction. The Court acknowledged that Kimberly-Clark demonstrated standing and the case was ripe for judicial review, despite pending regulations. The decision prioritized the need to protect Kimberly-Clark's commercial speech while recognizing the District's interest in consumer protection and environmental concerns. The ruling did not address other constitutional claims, focusing solely on the First Amendment, and left open the possibility of revisiting the injunction after the finalization of pertinent regulations.

Legal Issues Addressed

Commercial Speech and Intermediate Scrutiny

Application: The court evaluated whether the Act's labeling requirement for wipes as 'should not be flushed' constituted factual and uncontroversial commercial speech under intermediate scrutiny.

Reasoning: Commercial-speech claims are generally subjected to intermediate scrutiny, as established in the Supreme Court's Central Hudson case.

Disclosure Requirements and First Amendment

Application: The court found the Act’s disclosure requirements did not meet the standard for purely factual and uncontroversial disclosures, implicating First Amendment concerns.

Reasoning: Zauderer's protections apply only to disclosures that are 'purely factual and uncontroversial.'

First Amendment Rights in Commercial Speech

Application: The court supports a preliminary injunction based on potential violations of Kimberly-Clark's First Amendment rights due to the Nonwoven Disposable Products Act's labeling requirements.

Reasoning: The court supports the injunction, citing potential violations of Kimberly-Clark's First Amendment rights, and will revisit the matter after the District finalizes regulations to implement the Act.

Preliminary Injunction Standards

Application: Kimberly-Clark must show likelihood of success on the merits, irreparable harm, a favorable balance of equities, and alignment with public interest to obtain a preliminary injunction.

Reasoning: The legal standard for a preliminary injunction requires a clear demonstration of four factors: likelihood of success on the merits, likely irreparable harm without relief, a favorable balance of equities, and alignment with public interest.

Standing and Ripeness in Pre-Enforcement Challenges

Application: The court found that Kimberly-Clark demonstrated standing and that the case was ripe for review, despite pending regulations, because of the credible threat of enforcement and potential retroactive liability.

Reasoning: Kimberly-Clark's likelihood of success on its First Amendment challenge hinges on its ability to demonstrate that the Act's labeling requirements violate its free-speech rights.