Ctia - the Wireless Ass'n v. City of Berkeley
873 F.3d 774
| 9th Cir. | 2017Background
- City of Berkeley required retailers to display a point-of-sale disclosure about cell phone radiation; the ordinance compelled factual, uncontroversial speech at the point of sale.
- Retailers challenged the requirement as an unconstitutional compelled commercial speech burden under the First Amendment.
- A Ninth Circuit panel upheld the City under the Zauderer standard (allowing compelled factual and uncontroversial commercial disclosures).
- Appellant petitioned for rehearing and rehearing en banc; Judges W. Fletcher and Christen concurred in denying rehearing en banc; Judge Friedland would have granted rehearing; Judge Wardlaw dissented from denial of rehearing en banc.
- The court declined en banc rehearing, aligning with several sister circuits that permit compelled purely factual and uncontroversial commercial speech even absent deception.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Zauderer permits government to compel purely factual, uncontroversial commercial disclosures at point of sale even without consumer deception | Ordinance is unconstitutional; Zauderer should be limited to disclosures preventing consumer deception | Zauderer applies broadly to allow compelled factual, uncontroversial commercial speech; City may require the disclosure | Zauderer applied broadly; disclosure upheld under Zauderer (rehearing en banc denied) |
| Proper standard for compelled commercial disclosures (Zauderer vs. Central Hudson) | Central Hudson intermediate scrutiny should apply to compelled, non-misleading commercial speech | Zauderer rational-basis disclosure rule governs purely factual, uncontroversial compelled disclosures | Majority applied Zauderer; dissent argued Central Hudson should govern unless preventing deception |
| Whether compelled disclosure here was misleading or unduly burdensome | Disclosure is misleading and not justified; harms commercial speech rights | Disclosure is factual/uncontroversial and permissible; not misleading in a legal sense | Panel treated the disclosure as legally permissible; dissent emphasized potential misleading character |
| Whether courts should avoid creating circuit split about Zauderer’s scope | Plaintiff urged narrower reading to avoid municipal compelled speech | City urged consistency with circuits allowing broad Zauderer application | Court declined en banc review, citing alignment with multiple circuits that read Zauderer broadly |
Key Cases Cited
- Zauderer v. Office of Disciplinary Counsel, 471 U.S. 626 (1985) (disclosure rule for preventing consumer deception and rational-basis standard for certain compelled disclosures)
- Central Hudson Gas & Elec. Corp. v. Pub. Serv. Comm’n, 447 U.S. 557 (1980) (intermediate scrutiny test for commercial speech restrictions)
- Sorrell v. IMS Health, Inc., 564 U.S. 552 (2011) (heightened scrutiny for certain compelled regulations of speech)
- Wooley v. Maynard, 430 U.S. 705 (1977) (right to refrain from speaking is protected under First Amendment)
- 44 Liquormart, Inc. v. Rhode Island, 517 U.S. 484 (1996) (limits on government regulation of commercial speech to shape consumer behavior)
- Nat’l Ass’n of Mfrs. v. SEC, 800 F.3d 518 (D.C. Cir. 2015) (upholding compelled point-of-sale disclosures; reading of Zauderer discussed)
- Am. Meat Inst. v. U.S. Dep’t of Agric., 760 F.3d 18 (D.C. Cir. 2014) (applying Zauderer to labeling requirement)
- Pharm. Care Mgmt. Ass’n v. Rowe, 429 F.3d 294 (1st Cir. 2005) (compelled disclosure of factual commercial information upheld)
- Safelite Group v. Jepsen, 764 F.3d 258 (2d Cir. 2014) (examining scope of Zauderer and applying intermediate scrutiny in certain contexts)
- N.Y. State Rest. Ass’n v. N.Y. City Bd. of Health, 556 F.3d 114 (2d Cir. 2009) (upholding compelled commercial disclosures)
- Nat’l Elec. Mfrs. Ass’n v. Sorrell, 272 F.3d 104 (2d Cir. 2001) (applying Zauderer to a labeling law)
- Discount Tobacco City & Lottery, Inc. v. United States, 674 F.3d 509 (6th Cir. 2012) (discussing compelled disclosure doctrine)
- CTIA–The Wireless Ass’n v. City of Berkeley, 854 F.3d 1105 (9th Cir. 2017) (panel decision upholding Berkeley disclosure; central case here)
- Am. Beverage Ass’n v. City & Cty. of San Francisco, 871 F.3d 884 (9th Cir. 2017) (related compelled-disclosure decision relying on CTIA)
- Pub. Citizen, Inc. v. La. Attorney Disciplinary Bd., 632 F.3d 212 (5th Cir. 2011) (compelled speech sustained where preventing deception)
- 1-800-411-Pain Referral Serv. v. Otto, 744 F.3d 1045 (8th Cir. 2014) (upholding compelled disclosure to prevent consumer deception)
