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Patriotic Veterans, Incorporat v. State of Indiana
845 F.3d 303
7th Cir.
2017
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Background

  • Plaintiff (a veterans’ group) challenged Indiana Code §24-5-14-5, which bans automated recorded calls (robocalls) unless the recipient consented or a live operator obtains consent before playback.
  • The statute contains three exceptions: school-related messages; messages to persons with a current business or personal relationship with the caller; and messages advising employees of work schedules.
  • Plaintiff argued Reed v. Gilbert rendered prior circuit precedent obsolete and that Indiana’s law is unconstitutional content discrimination because it disfavors political speech and lacks a political-speech exception.
  • The district court upheld the statute; this appeal raises only the First Amendment challenge (previously the court addressed preemption and the appellate court reversed that holding).
  • The Seventh Circuit found the statute’s consent requirement and relationship-based exceptions regulate who may be called (consent/relationship), not the content of messages, except possibly the employee-schedule exception, which plaintiff disavowed as a cited injury.
  • The court concluded Indiana’s interest in protecting privacy and preventing unwanted automated calls is legitimate and the statute is a content-neutral time, place, and manner restriction that remains valid post-Reed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Indiana’s robocall ban is content-based under Reed The statute disfavors political speech and lacks a political-speech exception, so it is content-based The law regulates consent/who may be called (not message content); exceptions are relationship-based, not message-based Not content-based; statute valid
Whether the statute’s exceptions (schools, relationships, employee schedules) create content discrimination Exceptions effectively allow message-based distinctions that burden political speech Exceptions hinge on caller-recipient relationship (implied consent), not content Exceptions are relationship-based; do not render statute content-discriminatory
Whether the employee-schedule exception harms plaintiff’s ability to communicate Plaintiff suggested it could limit employee-targeted political messages Plaintiff conceded it did not feel inhibited communicating with its own employees (who could consent) Plaintiff lacks standing to challenge subsection (a)(3) as to subsection (b) relief; no cognizable injury from (a)(3) here
Whether the statute is an overbroad restriction requiring a political-speech exemption Plaintiff urged the state must exempt political speech under the First Amendment Indiana need not create a message-based exemption; many alternative channels exist and consent is a valid condition Statute is a valid time, place, manner restriction; Reed does not invalidate it

Key Cases Cited

  • Gomez v. Campbell-Ewald Co., 768 F.3d 871 (9th Cir. 2014) (upheld TCPA restrictions on automated calls)
  • Van Bergen v. Minnesota, 59 F.3d 1541 (8th Cir. 1995) (upheld state limits on robocalls and sustained TCPA-like restrictions)
  • Bland v. Fessler, 88 F.3d 729 (9th Cir. 1996) (upheld California anti-robocall statute)
  • Moser v. FCC, 46 F.3d 970 (9th Cir. 1995) (addressed FCC rules and restrictions on automated calls)
  • Cahaly v. LaRosa, 796 F.3d 399 (4th Cir. 2015) (held South Carolina’s robocall statute content-based and unconstitutional)
  • Reed v. Gilbert, 135 S. Ct. 2218 (2015) (standards for identifying content-based restrictions under the First Amendment)
  • Rowan v. Post Office, 397 U.S. 728 (1970) (upheld recipient-based control over mail as a privacy-protective restriction)
  • Mainstream Marketing Servs., Inc. v. FTC, 358 F.3d 1228 (10th Cir. 2004) (upheld do-not-call registry and related restrictions)
  • Missouri ex rel. Nixon v. American Blast Fax, Inc., 323 F.3d 649 (8th Cir. 2003) (upheld limits on unsolicited fax transmissions)

Affirmed.

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Case Details

Case Name: Patriotic Veterans, Incorporat v. State of Indiana
Court Name: Court of Appeals for the Seventh Circuit
Date Published: Jan 3, 2017
Citation: 845 F.3d 303
Docket Number: 16-2059
Court Abbreviation: 7th Cir.