MEMORANDUM OPINION
Plaintiffs, the Natural Law Party of the United States (Natural Law Party), along with Dr. John Hagelin and Dr. Mike Tompkins, the Natural Law Party’s 1996 candidates for President and Vice President, bring this action seeking judicial review of the Federal Election Commission’s (FEC) dismissal of their 1996 administrative complaint. In their complaint to the FEC, plaintiffs, who were excluded from participation in the 1996 presidential debates, challenged the candidate selection criteria used by the debates’ staging organization — the Committee on Presidential Debates (CPD). Plaintiffs contended that the criteria used by the CPD were not “objective” as required by FEC regulations. In 1998, the FEC, finding the criteria did not violate FEC regulations, dismissed the plaintiffs’ complaint. Plaintiffs now seek judicial review of the dismissal on the grounds that the agency’s decision was arbitrary, capricious, or otherwise contrary to law.
Defendant has moved for summary judgment solely on the grounds that plaintiffs do not have standing to bring suit in this case. Upon review of the pleadings and the entire record herein, the Court finds that plaintiffs have standing to bring suit and defendant’s motion for- summary judgment is therefore denied.
BACKGROUND
The Federal Election Campaign Act of 1971 (FECA) prohibits any corporation from making “a contribution or expenditure in connection with” any federal election. 2 U.S.C. § 441b(a). “Contributions” include “any gift, subscription, loan, advance, or deposit of money or anything of value made by any person for the purpose of influencing any election for Federal office.” 2 U.S.C. § 431(9)(A)(i). By regulation the term “anything of value” is defined to include “all in-kind contributions.” 11 C.F.R. § 100.7(a)(l)(iii)(A).
The FEC, however, recognizing that “non-partisan debates are designed to educate and inform voters rather than to influence the nomination or election of a particular candidate,” issued a regulation exempting from § 441b(a)’s coverage
Beginning with the debates leading up to the 1988 general election, the staging of candidate debates has been the responsibility of the Committee on Presidential Debates (CPD). CPD was formed in 1987 as a private non-profit corporation for the express purpose of sponsoring presidential debates. During the 1996 election season, CPD sponsored two presidential debates and one vice presidential debate. The only candidates invited to participate in the 1996 debates were President Clinton, the Democratic nominee for President, former Senator Robert Dole, the Republican nominee, and their vice presidential running mates.
In choosing the participants for the 1996 debates, CPD selected the Democratic and Republican nominees based on “the historical prominence and sustained voter interest” in the two parties. With respect to the other, “non-major party” candidates for president, CPD’s criteria for selecting candidates that had a “realistic chance of being elected” included: evidence of national organization (such as placement on the ballot in enough states to have a mathematical chance of obtaining an electoral college majority), signs of national newsworthiness (based on the professional opinions of the Washington bureau chiefs of major newspapers and news organizations), and indicators of public enthusiasm (as reflected by public opinion polls). When applying these criteria to the field of eligible candidates, CPD found that no candidate, other than the nominees of the two major parties, stood a realistic chance of being elected. Thus, the only candidates who merited inclusion by the CPD in the 1996 debates were the two major party nominees.
I. Case History
On September 5, 1996, one month prior to the first presidential debate, scheduled for October 6, plaintiffs filed an administrative complaint with the FEC (designated MUR 4451), alleging that the CPD’s criteria for selecting candidates were not objective as required by 11 C.F.R. 110.13(c). Additionally, the complaint alleged that the CPD had violated 11 C.F.R. 110.13(c) by selecting President Clinton and Senator Dole based only on their nominations by the Democratic and Republican parties.
The complaint was filed pursuant to 2 U.S.C. § 437g(a)(l), which allows “[a]ny person who believes a violation of [FECA] has occurred” to file a complaint with the FEC. Upon receipt of a complaint, if the FEC determines by an affirmative vote of four of its members that there is “reason to believe” a violation has taken place, it must conduct an investigation of the allegations. 2 U.S.C. § 437g(a)(2). After the completion of the investigation, if the FEC determines by an affirmative vote of four members that there is “probable cause” to believe that a violation has taken place, it must attempt to reach a conciliation agreement. 2 U.S.C. § 437g(a)(4)(A)(i). If the FEC’s conciliation efforts fail, it may, upon affirmative vote of four of its members, institute a civil action for relief. In the absence of an affirmative vote at any of these stages, it is the practice of the FEC to dismiss the matter under review and close the file. Pursuant to 2 U.S.C. § 437g(a)(8)(A), any person aggrieved by an order of the FEC dismissing the administrative complaint may file a petition in the United States District Court for the District of Columbia.
The FEC moved to dismiss both cases for lack of jurisdiction due to plaintiffs’ failure to exhaust their administrative remedies. On October 1, 1996, following oral argument, the Honorable Thomas P. Hogan denied preliminary injunctive relief on the grounds that the FECA granted the FEC exclusive primary jurisdiction over civil claims filed under the Act. 1 The Court held that judicial action on plaintiffs’ claims was precluded until the FEC ruled on the complaint or until 120 days had elapsed from the date the administrative complaint was filed without the FEC taking action.
During oral argument counsel for the FEC assured the Court that if the debates went forward without judicial relief and, indeed, even if the election occurred before the FEC completed its investigation, plaintiffs’ claims would not become moot. Rather, FEC’s counsel asserted, “If the Commission does not bring an action then under g(a)(8), it can be challenged. And they can bring up, you know, all challenges they want to the Commission’s interpretation as applied to this situation after the Commission does its fact finding.” Opp. at 10. Judge Hogan clearly considered the FEC’s representations in denying plaintiffs’ preliminary injunction:
Weighing [the Court’s interference in the agency’s administrative process] against the plaintiffs not being able to partake in the debate or the remedy they may still pursue in their complaints to the FEC and may have a right to come back to this Court later on in the process that is provided by the Federal Election Commission Act, under 437g(a)(8), the Federal Election Commission lawyer asserted they would not be mooted out if they came back to court. What they would have lost if the FEC doesn’t agree with them and they have to come to court is the opportunity to debate, but they still may be able to cure any defects in the criteria they allege the Debate Commission has used so that the next cycle would not have these defects and thereby have some relief, although not total relief. Transcript of Hearing, 10/1/96 (Morning Session), Opp. at Exh. F.
Plaintiffs appealed to the U.S. Court of Appeals for the D.C. Circuit, which affirmed the district court’s dismissal on jurisdictional grounds but remanded with instructions to dismiss those counts challenging the legality of the regulations without prejudice to plaintiffs’ ability to file a new lawsuit.
Perot v. FEC,
On February 24,1998, almost a year and a half after plaintiffs filed their administra
Upon denial of their administrative complaint, plaintiffs filed this action in April 1998, pursuant to 2 U.S.C. § 437g(a)(8)(A), seeking judicial review of the FEC’s dismissal on the grounds that the agency’s action was arbitrary, capricious and otherwise contrary to law. Defendant responded with the present motion for summary judgment, challenging plaintiffs’ standing to bring suit in this case. Thereafter, the case was transferred to the undersigned on December 22,1999.
On February 9, 2000, the FEC filed notice with the Court that the CPD had announced new selection criteria for the 2000 Presidential Debates. The CPD’s new criteria for selecting debate participants are as follows: (1) evidence of constitutional eligibility, (2) evidence of ballot access — a candidate must have his/her name appear on enough state ballots to have at least a mathematical chance of securing an Electoral College majority in the 2000 election, and (3) indicators of electoral support — a candidate must have the support of at least 15% of the national electorate as determined by five selected national public opinion polling organizations, using the average of those organizations’ most recent publicly-reported results at the time of the determination.
II. Factual Parameters
The FECA limits judicial review of plaintiffs’ claims to those alleged violations that have been administratively exhausted.
See
2 U.S.C. § 437g(a)(8)(A).
3
Plaintiffs’ standing to sue must be based upon an injury stemming from the FEC’s dismissal of their administrative complaint.
See Judicial Watch, Inc. v. FEC,
As required by the FECA, the Court must limit its consideration of plaintiffs’ claims to those which have been administratively exhausted: (1) that the CPD violated 11 C.F.R. § 110.13 by employing non-objective criteria to select candidates for the 1996 debates, and (2) the immediate consequence of such a violation — that the CPD’s staging of the 1996 debates constituted a prohibited corporate contribution in violation of 2 U.S.C. § 441b(a). Likewise, in assessing plaintiffs’ standing to sue, the Court can only consider injuries flowing from these two alleged violations. Because plaintiffs did not allege that the CPD functions as a political committee in their administrative complaint to the FEC, nor did they assert any violations of the reporting or registration requirements by the CPD, the RNC, the DNC, or either campaign, injuries resulting from these alleged violations, regardless of their merit, cannot be used to support standing in the present action.
See Judicial Watch,
III. Legal Parameters
While plaintiffs’ opposition addresses the issue of mootness given the fact that defendant’s arguments at times seem to mesh the concepts of mootness and standing, defendant persists in its stance that its summary judgment motion is based solely upon the argument that plaintiffs lack standing to bring their claims, not that plaintiffs’ claims are moot. Moreover, in a conference call on February 24, 2000, in response to questions from the Court, both parties agreed that the announcement of new CPD selection criteria for the 2000 Election has no impact on the posture of the case. According to the FEC, the announcement of new criteria bolsters their standing argument, but is not dispositive of the matter. Defendant also restated its position that the sole issue before the Court is standing, not mootness.
Before addressing the issue of standing, it is worth noting the conceptual differences between standing and mootness. As the Supreme Court recently explained in
Friends of Earth v. Laidlaw,
ANALYSIS
Section 437g(8)(a) of the FECA, which provides for judicial review of the agency’s dismissal of an administrative complaint, does not automatically confer standing. Rather, it “confers a right to sue on parties who otherwise already have standing.”
Common Cause v. FEC,
Here, the FEC challenges plaintiffs’ constitutional standing on the grounds that (1) the injuries alleged by plaintiffs do not meet the injury in fact requirement of Article III; (2) plaintiffs’ injuries are not fairly traceable to the FEC, but instead are the result of independent actions by third parties, specifically the CPD; and, for the same reason (3) plaintiffs’ injuries cannot be effectively redressed by relief directed at the FEC.
I. Injury in Fact
Plaintiffs’ standing to bring suit must be based on “an injury stemming from the FEC’s dismissal of [their] administrative complaint.”
Judicial Watch,
Plaintiffs allege three injuries in support of standing: (1) that they were denied the opportunity to be fairly considered for inclusion in the debates, (2) that they suffered a competitive political disadvantage relative to the major party candidates, and (3) that they suffered an informational injury due to CPD’s failure to comply with the reporting and registration requirements for political committees. As previously explained, the Court cannot consider plaintiffs’ claim of informational injury because they did not allege any registration or reporting violations in their administrative complaint.
With respect to plaintiffs’ allegation that the CPD’s biased selection criteria denied them the opportunity to be fairly considered for inclusion in the debates, defendant makes three arguments. First, the FEC asserts that injuries resulting from plaintiffs’ exclusion from the 1996 debates cannot support a challenge to action by the FEC in 1998 because “past wrongs do not in themselves amount to that real and immediate threat of injury necessary to make out a case or controversy.”
Los Angeles v. Lyons,
As argued by plaintiffs, if pre-election conduct cannot satisfy the injury-in-fact requirement for standing to challenge a post-election decision by the FEC, then given the 120 day time frame for administrative exhaustion required by the FECA, as a practical matter, the FEC could virtually insulate its decisions from judicial review by failing to take action on any complaint prior to the expiration of 120 days. Opp. at 16. As plaintiffs point out, since the election occurs in the first week of November and the presidential debates occur in mid-October, unless the FEC chooses to act sooner than 120 days from filing, an administrative complaint regarding the selection criteria or other conduct of the debates would have to be filed in early July for the complainant to have the right to commence a court action before the debates occurred.
Id.
However, in early July political parties have not yet nominated their candidates, and the selection of
Defendant does not argue that plaintiffs lack prudential standing, and, indeed, plaintiffs’ claims would seem to fall squarely within the “zone of interests” to be protected by the FECA. The FECA explicitly makes corporate contributions or expenditures, including the provision of services, in connection with political elections illegal (2 U.S.C. § 441b(a)), with the limited exception of the staging of nonpartisan debates. 2 U.S.C. § 431(9)(B)(ii). In order to qualify under that exception, the debates must use pre-established objective selection criteria and may not rely solely upon party affiliation. 11 C.F.R. § 110.13. Moreover, the FECA provides that “any person who believes that a violation of this act ... has occurred may file a complaint with the Commission,” 2 U.S.C. § 437g(a)(l), and that “any party aggrieved by an order of the Commission dismissing a complaint ... may file a petition” in district court seeking judicial review. 2 U.S.C. § 437g(a)(l). Whether east as a mootness or standing argument, the logical result of the FEC’s reasoning would be to render § 437g(a)(l) meaningless and to permit harms capable of repetition to evade review.
See, e.g., Johnson v. FCC,
Past exposure to illegal conduct satisfies the injury in fact requirement where it is accompanied by continuing adverse effects.
See FEC v. Akins,
The harms allegedly suffered by the Natural Law Party, on the other hand, are particularized and concrete. According to plaintiffs’ complaint, the CPD applied biased, non-objective criteria, in direct violation of 11 C.F.R. § 110.13(c), and as a result, plaintiffs were denied the opportunity to be fairly considered for participation in the 1996 debates. Plaintiffs complained about this alleged violation in an administrative complaint to the FEC, and the FEC not only rejected the complaint, but held that the selection criteria demonstrated “exactly the sort of structure and objectivity the commission had in mind when it approved the debate regulations in 1995.” The inability to compete on an equal footing due to the application of allegedly biased criteria has been recognized in many contexts as an injury in fact sufficient to support constitutional standing.
See, e.g., Northeastern Florida Chapter v. Jacksonville,
Furthermore, in 1998, at the time the complaint was filed, which is the point at which standing is determined, there was more than a speculative possibility that
Equally unfounded is defendant’s contention that plaintiffs should be denied standing on imminence grounds, since “[i]t is unsupported speculation to presume that the circumstances which led to their exclusion from the 1996 debates, such as low standing in the polls, will be the same ... in upcoming elections.” Motion at 11. Defendant misconstrues plaintiffs’ claim. Plaintiffs’ administrative complaint challenged the objectivity of the criteria used to select candidates. Whether plaintiffs are allowed to participate in future debates, they seek to change criteria that, in their view, systematically disadvantages minor party candidates in the debate’s candidate selection process. Presuming that this is true, as the Court must at this stage, application of criteria that is biased against minor party candidates increases the probability that plaintiffs will be unfairly excluded from future presidential debates, no matter what their level of popular support.
Finally, defendant’s contention that an agency’s failure to act is not an injury in fact was rejected by the D.C. Circuit in Animal Legal Defense Fund v. Glickman:
In this circuit, Bristol-Myers Squibb Co. v. Shalala,91 F.3d 1493 (D.C.Cir.1996), explicitly rejected the distinction between permissive and mandatory government regulation. There the plaintiff challenged the legality of Food and Drug Administration (“FDA”) regulations governing the approval of generic drugs. This court found that Bristol-Meyers Squibb (“BMS”) had standing to sue, on the ground that “[i]f BMS is correct [about its claim that the FDA’s regulations violate the governing statute], then it is no answer to say that the FDA is merely permitting a competitive product to enter the market and leaving the purchasing decision to the consumer.” See Telephone and Data Systems, Inc. v. FCC,19 F.3d 42 , 47 (D.C.Cir.1994) (“injurious private conduct is fairly traceable to the administrative action contested in the suit if that action authorized the conduct or established its legality”).”
Aternatively, the Court is persuaded that plaintiffs have alleged an additional injury in fact, for they suffered a competitive political disadvantage relative to the major party candidates. According to plaintiffs, the CPD’s use of biased selection criteria to exclude them from the debates caused a “relative diminution” of their political voices and an injury to their
Although standing based upon political competitor status has been recognized by other circuit courts, notably the Second Circuit in
Fulani v. League of Women Voters Educ. Fund,
Moreover, In
Common Cause v. Bolger,
By contrast, in
Fulani v. Brady,
The instant case is readily distinguishable from both Fulani and Gottlieb, and therefore, the Court concludes that plaintiffs have a legal basis for asserting standing based on their political competitor status. First, unlike the statute in Fulani, the FECA specifically authorizes any party aggrieved by a violation of its provisions to file a complaint with the FEC and to bring suit in federal court if that claim is dismissed. Further, Hagelin, Tompkins, and the Natural Law Party — political candidates and their party affiliate — directly competed for the alleged benefit of participating in the presidential debates. They are direct “competitors” of the Republican and Democratic parties and their nominees, and therefore, they are unlike the plaintiffs in Fulani and Gottlieb. As such, the relative disadvantage to plaintiffs’ candidacy and the injury to their interest in effectively voicing their political message provide a sufficient alternative basis to support their claim of an injury in fact.
II. Causation
Causation exists when a challenged agency rule authorized the third party conduct that caused plaintiffs injury, if that conduct would be illegal otherwise.
See Simon v. Eastern Kentucky Welfare Rights Organization,
Defendant, though not disputing that the FEC’s regulations are a factor in the plaintiffs injuries, asserts that the CPD’s ability to draft and apply its own criteria are independent, intervening causes sufficient to defeat plaintiffs’ standing to sue the FEC, and based on Fulani v. Brady, it argues that plaintiffs cannot satisfy the causation prong. The Court disagrees.
Defendant’s reliance on the dicta in
Fulani v. Brady
is misplaced. Plaintiff Lenora Fulani waged an indirect challenge to the same CPD criteria at issue here by attacking CPD’s tax-exempt status. Fula
In response, defendant attempts to sustain its position by relying on the dicta in Fulani where the Court suggests that in addition to the FEC, the CPD also remains an “intervening causal agent.” Id. at 1329. For instance, the Court surmises that the CPD could decline to sponsor future presidential debates, or that the major parties could refuse to participate in a debate that included Fulani. Id. The fact that the Court in Fulani recognized the CPD as an intervening causal agent does not, however, resolve the issue here of whether plaintiffs’ injury is fairly traceable to the FEC. Obviously, as acknowledged in Fulani, the IRS is further removed from plaintiffs’ injury than the FEC or the CPD and the lack of sufficient traceability to the IRS’s grant of tax exempt status to the CPD is not dispositive with respect to the FEC, which is the very governmental body that must determine if the CPD’s criteria complies with the FEC’s regulations.
Although standing is “substantially more difficult” to prove on the issues of causation and redressability, where plaintiffs alleged injury results from the government’s failure to regulate a third party, it is by no means impossible to do so.
See Lujan,
Thus, unlike the Republican Party’s long-term delegate-allocation practices, the CPD’s selection criteria are not the result of “unfettered choices” made in the exercise of “broad and legitimate discretion that the courts cannot presume either to control or to predict.”
Lujan,
504 U.S at 562,
The CPD can only be an intervening agent if. it stops having debates, but this alone is not enough to break the chain of causation between the FEC and the plaintiffs’ alleged injuries. As long as the CPD sponsors debates, it must comply with the regulations established by the FEC. Causation is defeated when a plaintiffs injury is the result of “unfettered” third party conduct. In this case, the CPD is sufficiently fettered by FEC regulation to conclude that plaintiffs’ injuries are “fairly traceable” to the FEC’s approval of CPD’s debate selection criteria.
III. Redressability
Finally, plaintiffs must prove that there is a “substantial likelihood” that their injuries would be redressed by a favorable decision on the merits. When the plaintiffs’ claim hinges, as in this case, on an agency’s failure to prevent injurious third party behavior, the “fairly traceable and redressability inquiries appear to merge.”
Freedom Republicans,
Plaintiffs’ challenge to the legal basis of an FEC enforcement decision is redressa-ble by judicial review, provided the other elements of standing are satisfied.
See FEC v. Akins,
The Court also rejects defendant’s argument that it could not issue an order that would redress plaintiffs’ injury due to the numerous causal factors involved. In reviewing a petitioner’s challenge to the FEC’s determination that an organization was not a “political committee” as defined under FECA, the D.C. Circuit addressed this very issue. It called the argument “a breathtaking attack on the legitimacy of virtually all judicial review of agency action.”
Id.
at 738. All regulatory agencies enjoy some measure of enforcement discretion, but that cannot render the agency’s legal decision-making unreviewable.
Id.
Plaintiffs need not demonstrate that judicial review of the FEC’s interpretation will lead to the ultimate relief sought; in this case, a change in the selection criteria. As the D.C. Circuit noted, “[w]e rarely know ... whether the agency’s ultimate action will be favorable to the petitioner or appellant.”
Id.
at 738. Rather, “[a] remand that would leave the agency free to exercise its discretion in a proper manner, then,
could
lead to agency action that would redress petitioner’s injury.”
Competitive Enterprise Inst.,
For the foregoing reasons, the Court concludes that plaintiffs have met their burden as to each element of standing, and therefore, defendant’s motion for summary-judgment [14^1] is DENIED.
Notes
. The FECA states that "[e]xcept as provided in § 437g(a)(8) of this title, the power of the [FEC] to initiate civil actions under subsection (a)(6) shall be the exclusive civil remedy for the enforcement of the provisions of this Act. 2 U.S.C. § 437d(e).'' See also, § 437c(b)(l) ("The [FEC] shall have exclusive jurisdiction with respect to the civil enforcement of such provisions.”).
. The FEC made this determination despite the report and recommendation of its General Counsel, who advised that there was reason to believe that the CPD's Candidate Selection Criteria for 1996 General Election Debate Participation did not comply with 11 C.F.R. § 110.13(c); that the CPD and the Democratic and Republican campaign committees violated 2 U.S.C. § 441b(a)’s prohibition on corporate campaign contributions and expenditures; and that the CPD, the Democratic and Republican campaign committees violated 2 U.S.C. §§ 433 and 434’s registration and reporting requirements for political committees. See General Counsel’s Report, Opp. at Exh. H
. "Any party aggrieved by an order of the Commission dismissing a complaint filed by such party under paragraph (1), or by a failure of the Commission to act on such complaint during the 120-day period beginning on the date the complaint is filed, may file a petition with the United States District Court for the District of Columbia.” 2 U.S.C. § 437g(a)(8)(A).
. This delay was due to the FEC’s own protracted review process. Plaintiffs' administrative complaint to the FEC was filed on September 5, 1996, one month prior to the first presidential debate of 1996. It was denied by the FEC in 1998, almost two years later. In 1996, when plaintiffs filed a petition in this Court seeking expedited pre-debate
.
O'Shea v. Littleton,
.
As previously noted, defendants do not allege that the change in the CPD's selection criteria for the 2000 Election moots this case. In fact, they explicitly state that it does not, under the doctrine of conduct "capable of repetition yet evading review” articulated in
Moore v. Ogilvie,
.
Fulani
cited
Allen v. Wright,
. Similarly, in
Freedom Republicans v. FEC,
. In its discussion of causation, the
Fulani
Court pointed out, “the FEC's regulation is an intervening cause.—were it not for the regulation [requiring debate sponsors to be tax exempt organizations], the CPD's tax status would be relevant to its sponsorship of the debates only insofar as it facilitated the CPD’s funding through tax exempt funds.”
. We reiterate that defendant does hot contest mootness, thus the fact that the CPD selection criteria has changed for the 2000 Election does not alter our standing analysis.
. Defendant’s hypothetical assertion that the CPD might cease sponsoring debates altogether, or alternatively, that the debates would be sponsored by a media organization or political campaign not subject to FEC regulations, or that the major party candidates might refuse to participate in debates containing minor party candidates — aside from the fact that such a wholesale discontinuation of televised debates would, in fact, redress the plaintiffs’ injuries by removing the unfair advantage plaintiffs believe the debates provide to their opponents — -is completely speculative and accordingly cannot be credited by the Court in deciding redressability.
