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News Link • Corruption

Red Cross Calls Sandy Spending 'Trade Secret'

After ProPublica filed a public records request for the information, the Red Cross hired a law firm to block the release of some documents. The lawyers argued that the information is a "trade secret" and if it was disclosed, "the American Red Cross would suffer competitive harm because its competitors would be able to mimic the American Red Cross's business model for an increased competitive advantage."

The Red Cross is a public charity with a federal charter to provide disaster relief, so it's not clear who its "competitors" are, ProPublica notes. The Red Cross says it wants "proprietary information important to maintaining our ability to raise funds and fulfill our mission" to remain confidential, but the use of the "trade secret" exemption is not "something you would expect from an organization that purports to be 'transparent and accountable,'" says a spokesman for the Disaster Accountability Project watchdog group.

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