Lead Opinion
announced the judgment of the Court and delivered the opinion of the Court with respect to Parts I, II, VII, and VIII, an opinion with respect to Parts III and V, in which Justice Kennedy, Justice Souter, and
Last Term we held that a federal law abridging a brewer’s right to provide the public with accurate information about the alcoholic content of malt beverages is unconstitutional. Rubin v. Coors Brewing Co.,
I
In 1956, the Rhode Island Legislature enacted two separate prohibitions against advertising the retail price of alcoholic beverages. The first applies to vendors licensed in Rhode Island as well as to out-of-state manufacturers, wholesalers, and shippers. It prohibits them from “advertising in any manner whatsoever” the price of any alcoholic beverage offered for sale in the State; the only exception is for price tags or signs displayed with the merchandise within licensed premises and not visible from the street.
In two cases decided in 1985, the Rhode Island Supreme Court reviewed the constitutionality of these two statutes. In S&S Liquor Mart, Inc. v. Pastore,
In Rhode Island Liquor Stores Assn. v. Evening Call Pub. Co.,
II
Petitioners 44 Liquormart, Inc. (44 Liquormart), and Peoples Super Liquor Stores, Inc. (Peoples), are licensed retailers of alcoholic beverages. Petitioner 44 Liquormart operates a store in Rhode Island and petitioner Peoples operates several stores in Massachusetts that are patronized by Rhode Island residents. Peoples uses alcohol price advertising extensively in Massachusetts, where such advertising is permitted, but Rhode Island newspapers and other media outlets have refused to accept such ads.
Complaints from competitors about an advertisement placed by 44 Liquormart in a Rhode Island newspaper in 1991 generated enforcement proceedings that in turn led to the initiation of this litigation. The advertisement did not state the price of any alcoholic beverages. Indeed, it noted that “State law prohibits advertising liquor prices.” The ad did, however, state the low prices at which peanuts, potato chips, and Schweppes mixers were being offered, identify various brands of packaged liquor, and include the word “WOW” in large letters next to pictures of vodka and rum bottles. Based on the conclusion that the implied reference to bargain prices for liquor violated the statutory ban on
After paying the fine, 44 Liquormart, joined by Peoples, filed this action against the administrator in the Federal District Court seeking a declaratory judgment that the two statutes and the administrator’s implementing regulations violate the First Amendment and other provisions of federal law. The Rhode Island Liquor Stores Association was allowed to intervene as a defendant and in due course the State of Rhode Island replaced the administrator as the principal defendant. The parties stipulated that the price advertising ban is vigorously enforced, that Rhode Island permits “all advertising of alcoholic beverages excepting references to price outside the licensed premises,” and that petitioners’ proposed ads do not concern an illegal activity and presumably would not be false or misleading. 44 Liquor Mart, Inc. v. Racine,
In his findings of fact, the District Judge first noted that there was a pronounced lack of unanimity among researchers who have studied the impact of advertising on the level of consumption of alcoholic beverages. He referred to a 1985 Federal Trade Commission study that found no evidence that alcohol advertising significantly affects alcohol abuse. Another study indicated that Rhode Island ranks in the upper 30% of States in per capita consumption of alcoholic beverages; alcohol consumption is lower in other States that allow price advertising. After summarizing the testimony of the expert witnesses for both parties, he found “as a fact that Rhode Island’s off-premises liquor price advertising ban has no significant impact on levels of alcohol consumption in Rhode Island.” Id., at 549.
The Court of Appeals reversed.
Queensgate has been both followed and distinguished in subsequent cases reviewing the validity of similar advertising bans.
Ill
Advertising has been a part of our culture throughout our history. Even in colonial days, the public relied on “commercial speech” for vital information about the market. Early newspapers displayed advertisements for goods and services on their front pages, and town criers called out prices in public squares. See J. Wood, The Story of Advertising 21, 45-69, 85 (1958); J. Smith, Printers and Press Freedom 49 (1988). Indeed, commercial messages played such a central role in public life prior to the founding that Benjamin Franklin authored his early defense of a free press in support of his decision to print, of all things, an advertisement for voyages to Barbados. Franklin, An Apology for Print
In accord with the role that commercial messages have long played, the law has developed to ensure that advertising provides consumers with accurate information about the availability of goods and services. In the early years, the common law, and later, statutes, served the consumers’ interest in the receipt of accurate information in the commercial market by prohibiting fraudulent and misleading advertising. It was not until the 1970’s, however, that this Court held that the First Amendment protected the dissemination of truthful and nonmisleading commercial messages about lawful products and services. See generally Kozinski & Banner, The Anti-History and Pre-History of Commercial Speech, 71 Texas L. Rev. 747 (1993).
In Bigelow v. Virginia,
Virginia Bd. of Pharmacy reflected the conclusion that the same interest that supports regulation of potentially misleading advertising, namely, the public’s interest in receiving accurate commercial information, also supports an interpretation of the First Amendment that provides constitutional protection for the dissemination of accurate and nonmis-leading commercial messages. We explained:
“Advertising, however tasteless and excessive it sometimes may seem, is nonetheless dissemination of information as to who is producing and selling what product, for what reason, and at what price. So long as we preserve a predominantly free enterprise economy, the allocation of our resources in large measure will be made through numerous private economic decisions. It is a matter of public interest that those decisions, in the aggregate, be intelligent and well informed. To this end, the free flow of commercial information is indispensable.” 425 U. S., at 765 .7
The opinion further explained that a State’s paternalistic assumption that the public will use truthful, nonmisleading commercial information unwisely cannot justify a decision to suppress it:
“There is, of course, an alternative to this highly paternalistic approach. That alternative is to assume that this information is not in itself harmful, that people will perceive their own best interests if only they are well enough informed, and that the best means to that end is to open the channels of communication rather than to close them. If they are truly open, nothing prevents the ‘professional’ pharmacist from marketing his own as-sertedly superior product, and contrasting it with that of the low-cost, high-volume prescription drug retailer. But the choice among these alternative approaches is not ours to make or the Virginia General Assembly’s. It is precisely this kind of choice, between the dangers of suppressing information, and the dangers of its misuse if it is freely available, that the. First Amendment makes for us.” Id., at 770.
On the basis of these principles, our early cases uniformly struck down several broadly based bans on truthful, nonmis-leading commercial speech, each of which served ends unre
At the same time, our early cases recognized that the State may regulate some types of commercial advertising more freely than other forms of protected speech. Specifically, we explained that the State may require commercial messages to “appear in such a form, or include such additional information, warnings, and disclaimers, as are necessary to prevent its being deceptive,” Virginia Bd. of Pharmacy,
Virginia Bd. of Pharmacy attributed the State’s authority to impose these regulations in part to certain “commonsense
Subsequent cases explained that the State’s power to regulate commercial transactions justifies its concomitant power to regulate commercial speech that is “linked inextricably” to those transactions. Friedman v. Rogers,
In Central Hudson Gas & Elec. Corp. v. Public Serv. Comm’n of N. Y.,
In reaching its conclusion, the majority explained that although the special nature of commercial speech may require less than strict review of its regulation, special concerns arise from “regulations that entirely suppress commercial speech in order to pursue a nonspeech-related policy.” Id., at 566, n. 9. In those circumstances, “a ban on speech could screen from public view the underlying governmental policy.” Ibid. As a result, the Court concluded that “special care” should attend the review of such blanket bans, and it pointedly remarked that “in recent years this Court has not approved a blanket ban on commercial speech unless the expression itself was flawed in some way, either because it was deceptive or related to unlawful activity.” Ibid.
As our review of the case law reveals, Rhode Island errs in concluding that all commercial speech regulations are subject to a similar form of constitutional review simply because they target a similar category of expression. The mere fact that messages propose commercial transactions does not in and of itself dictate the constitutional analysis that should apply to decisions to suppress them. See Rubin v. Coors Brewing Co.,
When a State regulates commercial messages to protect consumers from misleading, deceptive, or aggressive sales practices, or requires the disclosure of beneficial consumer information, the purpose of its regulation is consistent with the reasons for according constitutional protection to commercial speech and therefore justifies less than strict review. However, when a State entirely prohibits the dissemination of truthful, nonmisleading commercial messages for reasons unrelated to the preservation of a fair bargaining process, there is far less reason to depart from the rigorous review that the First Amendment generally demands.
Sound reasons justify reviewing the latter type of commercial speech regulation more carefully. Most obviously, complete speech bans, unlike content-neutral restrictions on the time, place, or manner of expression, see Kovacs v. Cooper,
Our commercial speech cases have recognized the dangers that attend governmental attempts to single out certain messages for suppression. For example, in Linmark,
The special dangers that attend complete bans on truthful, nonmisleading commercial speech cannot be explained away by appeals to the “commonsense distinctions” that exist between commercial and noncommercial speech. Virginia Bd. of Pharmacy,
It is the State’s interest in protecting consumers from “commercial harms” that provides “the typical reason why commercial speech can be subject to greater governmental regulation than noncommercial speech.” Cincinnati v. Discovery Network, Inc.,
Precisely because bans against truthful, nonmisleading commercial speech rarely seek to protect consumers from either deception or overreaching, they usually rest solely on the offensive assumption that the public will respond “irrationally” to the truth. Linmark,
“The commercial marketplace, like other spheres of our social and cultural life, provides a forum where ideas and information flourish. Some of the ideas and information are vital, some of slight worth. But the general rule is that the speaker and the audience, not the government, assess the value of the information presented. Thus, even a communication that does no more than propose a commercial transaction is entitled to the coverage of the First Amendment. See Virginia State Bd. of Pharmacy, supra, at 762.” Edenfield v. Fane, 507 U. S. 761 , 767 (1993).
See also Linmark,
V
In this- case, there is no question that Rhode Island’s price advertising ban constitutes a blanket prohibition against truthful, nonmisleading speech about a lawful product. There is also no question that the ban serves an end unrelated to consumer protection. Accordingly, we must review the price advertising ban with “special care,” Central Hudson,
The State argues that the price advertising prohibition should nevertheless be upheld because it directly advances the State’s substantial interest in promoting temperance, and because it is no more extensive than necessary. Cf. id., at 566. Although there is some confusion as to what Rhode Island means by temperance, we assume that the State asserts an interest in reducing alcohol consumption.
We can agree that common sense supports the conclusion that a prohibition against price advertising, like a collusive agreement among competitors to refrain from such advertising,
In addition, as the District Court noted, the State has not identified what price level would lead to a significant reduction in alcohol consumption, nor has it identified the amount
As is evident, any conclusion that elimination of the ban would significantly increase alcohol consumption would require us to engage in the sort of “speculation or conjecture” that is an unacceptable means of demonstrating that a restriction on commercial speech directly advances the State’s asserted interest. Edenfield,
The State also cannot satisfy the requirement that its restriction on speech be no more extensive than necessary. It is perfectly obvious that alternative forms of regulation that would not involve any restriction on speech would be more likely to achieve the State’s goal of promoting temperance. As the State’s own expert conceded, higher prices can be maintained either by direct regulation or by increased taxation.
As a result, even under the less than strict standard that generally applies in commercial speech cases, the State has failed to establish a “reasonable fit” between its abridgment of speech and its temperance goal. Board of Trustees of State Univ. of N. Y. v. Fox,
VI
The State responds by arguing that it merely exercised appropriate “legislative judgment” in determining that a price advertising ban would best promote temperance. Relying on the Central Hudson analysis set forth in Posadas de Puerto Rico Associates v. Tourism Co. of P. R.,
The State’s first argument fails to justify the speech prohibition at issue. Our commercial speech cases recognize some room for the exercise of legislative judgment. See Metromedia, Inc. v. San Diego,
In Edge, we upheld a federal statute that permitted only those broadcasters located in States that had legalized lotteries to air lottery advertising. The statute was designed to regulate advertising about an activity that had been deemed illegal in the jurisdiction in which the broadcaster was located.
Posadas is more directly relevant. There, a flve-Member majority held that, under the Central Hudson test, it was “up to the legislature” to choose to reduce gambling by suppressing in-state casino advertising rather than engaging in educational speech. Posadas,
The reasoning in Posadas does support the State’s argument, but, on reflection, we are now persuaded that Posadas erroneously performed the First Amendment analysis. The casino advertising ban was designed to keep truthful, non-misleading speech from members of the public for fear that they would be more likely to gamble if they received it. As a result, the advertising ban served to shield the State’s anti-gambling policy from the public scrutiny that more direct, nonspeech regulation would draw. See id., at 351 (Brennan, J., dissenting).
Given our longstanding hostility to commercial speech regulation of this type, Posadas clearly erred in concluding that it was “up to the legislature” to choose suppression over a less speech-restrictive policy. The Posadas majority’s conclusion on that point cannot be reconciled with the unbroken line of prior eases striking down similarly broad regulations on truthful, nonmisleading advertising when non-speech-
Because the 5-to-4 decision in Posadas marked such a sharp break from our prior precedent, and because it concerned a constitutional question about which this Court is the final arbiter, we decline to give force to its highly deferential approach. Instead, in keeping with our prior holdings, we conclude that a state legislature does not have the broad discretion to suppress truthful, nonmisleading information for paternalistic purposes that the Posadas majority was willing to tolerate. As we explained in Virginia Bd. of Pharmacy, “[i]t is precisely this kind of choice, between the dangers of suppressing information, and the dangers of its misuse if it is freely available, that the First Amendment makes for us.”
We also cannot accept the State’s second contention, which is premised entirely on the “greater-includes-the-lesser” reasoning endorsed toward the end of the majority’s opinion in Posadas. There, the majority stated that “the greater power to completely ban casino gambling necessarily includes the lesser power to ban advertising of casino gambling.”
In Rubin v. Coors Brewing Co.,
Although we do not dispute the proposition that greater powers include lesser ones, we fail to see how that syllogism requires the conclusion that the State’s power to regulate commercial activity is “greater” than its power to ban truthful, nonmisleading commercial speech. Contrary to the assumption made in Posadas, we think it quite clear that banning speech may sometimes prove far more intrusive than banning conduct. As a venerable proverb teaches, it may prove more injurious to prevent people from teaching others how to fish than to prevent fish from being sold.
These basic First Amendment principles clearly apply to commercial speech; indeed, the Posadas majority impliedly conceded as much by applying the Central Hudson test. Thus, it is no answer that commercial speech concerns products and services that the government may freely regulate. Our decisions from Virginia Bd. of Pharmacy on have made plain that a State’s regulation of the sale of goods differs in kind from a State’s regulation of accurate information about those goods. The distinction that our cases have consistently drawn between these two types of governmental action is fundamentally incompatible with the absolutist view that the State may ban commercial speech simply because it may constitutionally prohibit the underlying conduct.
Thus, just as it is perfectly clear that Rhode Island could not ban all obscene liquor ads except those that advocated temperance, we think it equally clear that its power to ban the sale of liquor entirely does not include a power to censor all advertisements that contain accurate and nonmis-leading information about the price of the product. As the entire Court apparently now agrees, the statements in the Posadas opinion on which Rhode Island relies are no longer persuasive.
Finally, we find unpersuasive the State’s contention that, under Posadas and Edge, the price advertising ban should be upheld because it targets commercial speech that pertains to a “vice” activity. Respondents premise their request for a so-called “vice” exception to our commercial speech doctrine on language in Edge which characterized gambling as a “vice.” Edge,
Moreover, the scope of any “vice” exception to the protection afforded by the First Amendment would be difficult, if not impossible, to define. Almost any product that poses some threat to public health or public morals might reasonably be characterized by a state legislature as relating to “vice activity.” Such characterization, however, is anomalous when applied to products such as alcoholic beverages, lottery tickets, or playing cards, that may be lawfully purchased on the open market. The recognition of such an exception would also have the unfortunate consequence of either allowing state legislatures to justify censorship by the simple expedient of placing the “vice” label on selected lawful activities, or requiring the federal courts to establish a federal common law of vice. See Kurland, 1986 S. Ct. Rev., at 15. For these reasons, a “vice” label that is unaccompanied by a corresponding prohibition against the commercial behavior at issue fails to provide a principled justification for the regulation of commercial speech about that activity.
VII
From .1919 until 1933, the Eighteenth Amendment to the Constitution totally prohibited “the manufacture, sale, or transportation of intoxicating liquors” in the United States and its territories. Section 1 of the Twenty-first Amendment repealed that prohibition, and § 2 delegated to the several States the power to prohibit commerce in, or the use of, alcoholic beverages.
As is clear, the text of the Twenty-first Amendment supports the view that, while it grants the States authority over commerce that might otherwise be reserved to the Federal Government, it places no limit whatsoever on other constitutional provisions. Nevertheless, Rhode Island argues, and the Court of Appeals agreed, that in this case the Twenty-first Amendment tilts the First Amendment analysis in the State’s favor. See
In reaching its conclusion, the Court of Appeals relied on our decision in California v. LaRue,
Entirely apart from the Twenty-first Amendment, the State has ample power to prohibit the sale of alcoholic beverages in inappropriate locations. Moreover, in subsequent cases, the Court has recognized that the States’ inherent police powers provide ample authority to restrict the kind of “bacchanalian revelries” described in the LaRue opinion regardless of whether alcoholic beverages are involved. Id., at 118; see, e. g., Young v. American Mini Theatres, Inc.,
Without questioning the holding in LaRue, we now disavow its reasoning insofar as it relied on the Twenty-first Amendment. As we explained in a case decided more than a decade after LaRue, although the Twenty-first Amendment limits the effect of the dormant Commerce Clause on a State’s regulatory power over the delivery or use of intoxicating beverages within its borders, “the Amendment does not license the States to ignore their obligations under other provisions of the Constitution.” Capital Cities Cable, Inc. v. Crisp,
VIII
Because Rhode Island has failed to carry its heavy burden of justifying its complete ban on price advertising, we conclude that R. I. Gen. Laws §§3-8-7 and 3-8-8.1 (1987), as well as Regulation 32 of the Rhode Island Liquor Control Administration, abridge speech in violation of the First Amendment as made applicable to the States by the Due Process Clause of the Fourteenth Amendment. The judgment of the Court of Appeals is therefore reversed.
It is so ordered.
Notes
Although the text of the First Amendment states that “Congress shall make no law . . . abridging the freedom of speech, or of the press,” the Amendment applies to the States under the Due Process Clause of the Fourteenth Amendment. See Board of Ed., Island Trees Union Free School Dist. No. 26 v. Pico,
Rhode Island Gen. Laws § 3-8-7 (1987) provides:
“Advertising price of malt beverages, cordials, wine or distilled liquor.— No manufacturer, wholesaler, or shipper from without this state and no holder of a license issued under the provisions of this title and chaptershall cause or permit the advertising in any manner whatsoever of the price of any malt beverage, cordials, wine or distilled liquor offered for sale in this state; provided, however, that the provisions of this section shall not apply to price signs or tags attached to or placed on merchandise for sale within the licensed premises in accordance with rules and regulations of the department.”
Regulation 32 of the Rules and Regulations of the Liquor Control Administrator provides that no placard or sign that is visible from the exterior of a package store may make any reference to the price of any alcoholic beverage. App. 2 to Brief for Petitioners.
Rhode Island Gen. Laws § 3-8-8.1 (1987) provides:
“Price advertising by media or advertising companies unlawful. — No newspaper, periodical, radio or television broadcaster or broadcasting company or any other person, firm or corporation with a principal place of business in the state of Rhode Island which is engaged in the business of advertising or selling advertising time or space shall accept, publish, or broadcast any advertisement in this state of the price or make reference to the price of any alcoholic beverages. Any person who shall violate any of the provisions of this section shall be guilty of a misdemeanor . . . .” The statute authorizes the liquor control administrator to exempt trade journals from its coverage. Ibid.
“We also have little difficulty in finding that the asserted governmental interests, herein described as the promotion of temperance and the reasonable control of the traffic in alcoholic beverages, are substantial. We note,
In her dissent in Rhode Island Liquor Stores Assn. v. Evening Call Pub. Co.,
The plaintiff in that case is a respondent in this case and has filed other actions enforcing the price advertising ban. See id., at 333.
In Dunagin v. Oxford,
Other than the two Rhode Island Supreme Court decisions upholding the constitutionality of the statutes at issue in this case, only one published state court opinion has considered our summary action in Queensgate in passing on a liquor advertising restriction. See Michigan Beer & Wine Wholesalers Assn. v. Attorney General,
By contrast, the First Amendment does not protect commercial speech about unlawful activities. See Pittsburgh Press Co. v. Pittsburgh Comm’n on Human Relations,
See Bates v. State Bar of Ariz.,
In other words, the regulation failed the fourth step in the four-part inquiry that the majority announced in its opinion. It wrote:
“In commercial speech cases, then, a four-part analysis has developed. At the outset, we must determine whether the expression is protected by the First Amendment. For commercial speech to come within that provision, it at least must concern lawful activity and not be misleading. Next, we ask whether the asserted governmental interest is substantial. If both inquiries yield positive answers, we must determine whether the regulation directly advances the governmental interest asserted, and whether it is not more extensive than is necessary to serve that interest.” Central Hudson,447 U. S., at 566 .
The Justices concurring in the judgment adopted a somewhat broader view. They expressed “doubt whether suppression of information concerning the availability and price of a legally offered product is ever a permissible way for the State to ‘dampen’ the demand for or use of the product.” Id., at 574. Indeed, Justice Blackmun believed that even
“Florida permits lawyers to advertise on prime-time television and radio as well as in newspapers and other media. They may rent space on billboards. They may send untargeted letters to the general population, or to discrete segments thereof. There are, of course, pages upon pages devoted to lawyers in the Yellow Pages of Florida telephone directories. These listings are organized alphabetically and by area of specialty. See generally Rule 4-7.2(a), Rules Regulating The Florida Bar (‘[A] lawyer may advertise services through public media, such as a telephone directory, legal directory, newspaper or other periodical, billboards, and other signs, radio, television, and recorded messages the public may access by dialing a telephone number, or through written communication not involving solicitation as defined in rule 4-7.4’); The Florida Bar: Petition to Amend the Rules Regulating The Florida Bar — Advertising Issues,
In Discovery Network, we held that the city’s categorical ban on commercial newsracks attached too much importance to the distinction between commercial and noncommercial speech. After concluding that the esthetic and safety interests served by the newsrack ban bore no relationship whatsoever to the prevention of commercial harms, we rejected the State’s attempt to justify its ban on the sole ground that it targeted commercial speech. See
This case bears out the point. Rhode Island seeks to reduce alcohol consumption by increasing alcohol price; yet its means of achieving that goal deprives the public of their chief source of information about the reigning price level of alcohol. As a result, the State’s price advertising ban keeps the public ignorant of the key barometer of the ban’s effectiveness: the alcohol beverages’ prices.
Before the District Court, the State argued that it sought to reduce consumption among irresponsible drinkers. App. 67. In its brief to this Court, it equates its interest in promoting temperance with an interest in reducing alcohol consumption among all drinkers. See, e. g., Brief for Respondents 28. The Rhode Island Supreme Court has characterized the State’s interest in “promoting temperance” as both “the state’s interest in reducing the consumption of liquor,” S&S Liquormart, Inc. v. Pastore,
See, e. g., Business Electronics Corp. v. Sharp Electronics Corp.,
Petitioners’ stipulation that they each expect to realize a $100,000 benefit per year if the ban is lifted is not to the contrary. App. 47. The stipulation shows only that petitioners believe they will be able to compete more effectively for existing alcohol consumers if there is no ban on price advertising. It does not show that they believe either the number of alcohol consumers, or the number of purchases by those consumers, will increase in the ban’s absence. Indeed, the State’s own expert conceded that “plaintiffs’ expectation of realizing additional profits through price advertising has no necessary relationship to increased overall consumption.”
Moreover, we attach little significance to the fact that some studies suggest that people budget the amount of money that they will spend on alcohol.
Although the Court of Appeals concluded that the regulation directly advanced the State’s interest, it did not dispute the District Court’s conclusion that the evidence suggested that, at most, a price advertising ban would have a marginal impact on overall alcohol consumption. Id., at 7-8; cf. Michigan Beer & Wine Wholesalers Assn. v. Attorney General,
Outside the First Amendment context, we have refused to uphold alcohol advertising bans premised on similarly speculative assertions about their impact on consumption. See Capital Cities Cable, Inc. v. Crisp,
“Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.” The International Thesaurus of Quotations 646 (compiled by R. Tripp 1970).
It is also no answer to say that it would be “strange” if the First Amendment tolerated a seemingly “greater” regulatory measure while forbidding a “lesser” one. We recently held that although the government had the power to proscribe an entire category of speech, such as obscenity or so-called fighting words, it could not limit the scope of its ban to obscene or fighting words that expressed a point of view with which the government disagrees. R. A. V. v. St. Paul,
“Section 2. The transportation or importation into any State, Territory, or possession of the United States for delivery or use therein of intoxicating liquors, in violation of the laws thereof, is hereby prohibited.” U. S. Const., Amdt. 21, § 2.
The State also relies on two per curiam opinions that followed the Twenty-first Amendment analysis set forth in LaRue. See New York State Liquor Authority v. Bellanca,
Concurrence Opinion
concurring in part and concurring m the judgment.
I share Justice Thomas’s discomfort with the Central Hudson test, which seems to me to have nothing more than policy intuition to support it. I also share Justice Stevens’s aversion towards paternalistic governmental policies that prevent men and women from hearing facts that might not be good for them. On the other hand, it would also be paternalism for us to prevent the people of the States from enacting laws that we consider paternalistic, unless we have good reason to believe that the Constitution itself forbids them. I will take my guidance as to what the Constitution forbids, with regard to a text as indeterminate as the First Amendment’s preservation of “the freedom of speech,” and where the core offense of suppressing particular political ideas is not at issue, from the long accepted practices of the American people. See McIntyre v. Ohio Elections Comm’n,
The briefs and arguments of the parties in the present case provide no illumination on that point; understandably so, since both sides accepted Central Hudson. The amicus brief on behalf of the American Advertising Federation et al. did examine various expressions of view at the time the First Amendment was adopted; they are consistent with First Amendment protection for commercial speech, but certainly not dispositive. I consider more relevant the state legislative practices prevalent at the time the First Amendment was adopted, since almost all of the States had free speech constitutional guarantees of their own, whose meaning was not likely to have been different from the federal constitutional provision derived from them. Perhaps more relevant still are the state legislative practices at the time the Fourteenth Amendment was adopted, since it is most improbable that that adoption was meant to overturn any existing national consensus regarding free speech. Indeed, it is rare that any nationwide practice would develop contrary to a proper understanding of the First Amendment
Since I do not believe we have before us the wherewithal to declare Central Hudson wrong — or at least the wherewithal to say what ought to replace it — I must resolve this case in accord with our existing jurisprudence, which all except Justice Thomas agree would prohibit the challenged regulation. I am not disposed to develop new law, or reinforce pld, on this issue, and accordingly I merely concur in the judgment of the Court. I believe, however, that Justice Stevens’s treatment of the application of the Twenty-first Amendment to this case is correct, and accordingly join Parts I, II, VII, and VIII of Justice Stevens’s opinion.
Concurrence Opinion
concurring in Parts I, II, VI, and VII, and concurring in the judgment.
In cases such as this, in which the government’s asserted interest is to keep legal users of a product or service ignorant in order to manipulate their choices in the marketplace, the balancing test adopted in Central Hudson Gas & Elec. Corp. v. Public Serv. Comm’n of N Y.,
I
In Virginia Bd. of Pharmacy v. Virginia Citizens Consumer Council, Inc.,
“[T]he State’s protectiveness of its citizens rests in large measure on the advantages of their being kept in ignorance. The advertising ban does not directly affect professional standards one way or the other. It affects them only through the reactions it is assumed people will have to the free flow of drug price information.
“There is, of course, an alternative to this highly paternalistic approach. That alternative is to assume that this information is not in itself harmful, that people will perceive their own best interests, if only they are well enough informed, and that the best means to that end is to open the channels of communication rather than to close them. ... It is precisely this kind of choice, between the dangers of suppressing information, and the dangers of its misuse if it is freely available, that theFirst Amendment makes for us. Virginia is free to require whatever professional standards it wishes of its pharmacists; it may subsidize them or protect them from competition in other ways. But it may not do so by keeping the public in ignorance of the entirely lawful terms that competing pharmacists are offering. In this sense, the justifications Virginia has offered for suppressing the flow of prescription drug price information, far from persuading us that the flow is not protected by the First Amendment, have reinforced our view that it is.” Id., at 769-770 (citation omitted).
The Court opined that false or misleading advertising was not protected, on the grounds that the accuracy of advertising claims may be more readily verifiable than is the accuracy of political or other claims, and that “commercial” speech is made more durable by its profit motive. Id., at 771, and n. 24. The Court also made clear that it did not envision protection for advertising that proposes an illegal transaction. Id., at 772-773 (distinguishing Pittsburgh Press Co. v. Pittsburgh Comm’n on Human Relations,
In case after case following Virginia Bd. of Pharmacy, the Court, and individual Members of the Court, have continued to stress the importance of free dissemination of information about commercial choices in a market economy; the antipaternalistic premises of the First Amendment; the impropriety of manipulating consumer choices or public opinion through the suppression of accurate “commercial” information; the near impossibility of severing “commercial” speech from speech necessary to democratic decisionmaking; and the dangers of permitting the government to do covertly what it might not have been able to muster the political support to do openly.
The Court has at times appeared to assume that “commercial” speech could be censored in a variety of ways for any of a variety of reasons because, as was said without clear
rationale in some post-Virginia Bd. of Pharmacy cases, such speech was in a “subordinate position in the scale of First Amendment values,” Ohralik v. Ohio State Bar Assn.,
II
I do not join the principal opinion’s application of the Central Hudson balancing test because I do not believe that such a test should be applied to a restriction of “commercial” speech, at least when, as here, the asserted interest is one that is to be achieved through keeping would-be recipients of the speech in the dark.
Both Justice Stevens and Justice O’Connor appear to adopt a stricter, more categorical interpretation of the fourth prong of Central Hudson than that suggested in some of our other opinions,
The upshot of the application of the fourth prong in the opinions of Justice Stevens and of Justice O’Connor seems to be that the government may not, for the purpose of keeping would-be consumers ignorant and thus decreasing demand, restrict advertising regarding commercial transactions — or at least that it may not restrict advertising regarding commercial transactions except to the extent that it outlaws or otherwise directly restricts the same transactions within its own borders.
Ill
Although the Court took a sudden turn away from Virginia Bd. of Pharmo-cy in Central Hudson, it has never explained why manipulating the choices of consumers by keeping them ignorant is more legitimate when the ignorance is maintained through suppression of “commercial” speech than when the same ignorance is maintained through suppression of “noncommercial” speech. The courts, including this
Accord, Virginia Bd. of Pharmacy,
See Linmark Associates, Inc. v. Willingboro,
The Court found that although the total effect of the advertising ban would be to decrease consumption, the advertising ban impermissibly extended to some advertising that itself might not increase consumption. Central Hudson, supra, at 569-571.
As noted above, the asserted rationales for differentiating “commercial” speech from other speech are (1) that the truth of “commercial” speech is supposedly more verifiable, and (2) that “commercial speech, the offspring of economic self-interest” is supposedly a “hardy breed of expression that is not particularly susceptible to being crushed by overbroad regulation.” Central Hudson, supra, at 564, n. 6 (internal quotation marks omitted). The degree to which these rationales truly justify treating “commercial” speech differently from other speech (or indeed, whether the requisite distinction can even be drawn) is open to question, in my view. See Kozinski & Banner, Who’s Afraid of Commercial Speech, 76 Va. L. Rev. 627,634-638 (1990) (questioning basis for drawing distinction); id., at 638-650 (questioning coherence of distinction). In any event, neither of these rationales provides any basis for permitting government to keep citizens ignorant as a means of manipulating their choices in the commercial or political marketplace.
In other words, I do not believe that a Central Hudson-type balancing test should apply when the asserted purpose is like the one put forth by the government in Central Hudson itself. Whether some type of balancing test is warranted when the asserted state interest is of a different kind is a question that I do not consider here.
E. g., Cincinnati v. Discovery Network,
The two most obvious situations in which no equally effective direct regulation will be available for discouraging consumption (and thus, the two situations in which the Court and I might differ on the outcome) are: (1) When a law directly regulating conduct would violate the Constitution (e. g., because the item is constitutionally protected), or (2) when the sale is to occur outside the State’s borders.
As to the first situation: Although the Court’s application of the fourth prong today does not specifically foreclose regulations or bans of advertising regarding items that cannot constitutionally be banned, it would seem strange to hold that the government’s power to interfere with transmission of information regarding these items, in order to dampen demand for them, is more extensive than its power to restrict, for the same purpose, advertising of items that are not constitutionally protected. Cf. Bigelow v. Virginia,
As to the second situation: When a State seeks to dampen consumption by its citizens of products or services outside its borders, it does not have the option of direct regulation. Here, a respondent correctly points out that alternatives such as taxes will not be effective in discouraging sales
The outcome in Edge may well be in conflict with the principles espoused in Virginia Bd. of Pharmacy and ratified by me today. See Edge, supra, at 436-439 (Stevens, J., dissenting). (In Edge, respondent did not put forth the broader principles adopted in Virginia Bd. of Pharmacy, but rather argued that the advertising restriction did not have a sufficiently close fit under Central Hudson.) Because the issue of restrictions on advertising of products or services to be purchased legally outside a State that has itself banned or regulated the same purchases within the State is not squarely presented in this case, I will not address here whether the decision in Edge can be reconciled with the position I take today.
See, e. g., Kozinski & Banner,
The third prong of Central Hudson is far from a mechanical one. In Posadas, Edge, and other eases, the Court has presumed that advertising bans decrease consumption. Here, by contrast, the principal opinion demands proof of a “significant” decrease in consumption, and finds it lacking. But petitioners’ own expert testified at one point that, taking into account disposable income, price was a “potent” influence on alcohol consumption, see App. 79; and the American Medical Association had apparently concluded that advertising of alcohol in general increased total alcohol consumption sufficiently to make a ban on advertising worthwhile, see 44 Liquor Mart, Inc. v. Racine,
The courts have also had difficulty applying the fourth prong because the outcome has depended upon the level of generality with which the interest was described. See Faille, supra, at 58, 60. If today’s strict application of the fourth prong survives, it will clarify the prong’s application in a large number of cases, since, as noted above, it will simply invalidate most restrictions in which the government attempts to manipulate consumption through enforced ignorance rather than through direct regulation.
See ante, at 514 (noting that scope of any “vice” category of products would be difficult to define).
Concurrence Opinion
with whom The Chief Justice, Justice Souter, and Justice Breyer join, concurring in the judgment.
Rhode Island prohibits advertisement of the retail price of alcoholic beverages, except at the place of sale. The State’s only asserted justification for this ban is that it promotes temperance by increasing the cost of alcoholic beverages. Brief for Respondent State of Rhode Island 22. I agree with the Court that Rhode Island’s price-advertising ban is invalid. I would resolve this case more narrowly, however, by applying our established Central Hudson test to determine whether this commercial speech regulation survives First Amendment scrutiny.
Under that test, we first determine whether the speech at issue concerns lawful activity and is not misleading, and whether the asserted governmental interest is substantial. If both these conditions are met, we must decide whether the regulation “directly advances the governmental interest asserted, and whether it is not more extensive than is necessary to serve that interest.” Central Hudson Gas & Elec.
Given the means by which this regulation purportedly serves the State’s interest, our conclusion is plain: Rhode Island’s regulation fails First Amendment scrutiny.
Both parties agree that the first two prongs of the Central Hudson test are met. Even if we assume, arguendo, that Rhode Island’s regulation also satisfies the requirement that it directly advance the governmental'interest, Rhode Island’s regulation fails the final prong; that is, its ban is more extensive than necessary to serve the State’s interest.
As we^ have explained, in order for a speech restriction to pass muster under the final prong, there must be a fit between the legislature’s goal and method, “a fit that is not necessarily perfect, but reasonable; that represents not necessarily the single best disposition but one whose scope is in proportion to the interest served.” Board of Trustees of State Univ. of N. Y. v. Fox,
Rhode Island offers one, and only one, justification for its ban on price advertising. Rhode Island says that the ban is intended to keep alcohol prices high as a way to keep consumption low. By preventing sellers from informing customers of prices, the regulation prevents competition from driving prices down and requires consumers to spend more time to find the best price for alcohol. Brief for Respondent State of Rhode Island 22. The higher cost of obtaining alcohol, Rhode Island argues, will lead to reduced consumption.
The fit between Rhode Island’s method and this particular goal is not reasonable. If the target is simply higher prices generally to discourage consumption, the regulation imposes too great, and unnecessary, a prohibition on speech in order to achieve it. The State has other methods at its disposal— methods that would more direetly accomplish this stated goal without intruding on sellers’ ability to provide truthful, nonmisleading information to customers. Indeed, Rhode Island’s own expert conceded that “ ‘the objective of lowering consumption of alcohol by banning price advertising could be accomplished by establishing minimum prices and/or by increasing sales taxes on alcoholic beverages.’”
Respondents point for support to Posadas de Puerto Rico Associates v. Tourism Co. of P. R.,
The Court there accepted as reasonable the legislature’s belief that the regulation would be effective, and concluded that, because the restriction affected only advertising of casino gambling aimed at residents of Puerto Rico, not that aimed at tourists, the restriction was narrowly tailored to serve Puerto Rico’s interest.
It is true that Posadas accepted as reasonable, without further inquiry, Puerto Rico’s assertions that the regulations furthered the government’s interest and were no more extensive than necessary to serve that interest. Since Posa-das, however, this Court has examined more searchingly the State’s professed goal, and the speech restriction put into place to further it, before accepting a State’s claim that the speech restriction satisfies First Amendment scrutiny. See, e. g., Florida Bar v. Went For It, Inc., supra; Rubin v. Coors Brewing Co., supra; Ibanez v. Florida Dept. of Business and Professional Regulation, Bd. of Accountancy,
Because Rhode Island’s regulation fails even the less stringent standard set out in Central Hudson, nothing here requires adoption of a new analysis for the evaluation of commercial speech regulation. The principal opinion acknowledges that “even under the less than strict standard that generally applies in commercial speech cases, the State has failed to establish a reasonable fit between its abridgment of speech and its temperance goal.” Ante, at 507 (internal quotation marks omitted). Because we need go no further, I would not here undertake the question whether the test we have employed since Central Hudson should be displaced.
Respondents argue that an additional factor, the Twenty-first Amendment, tips the First Amendment analysis in Rhode Island’s favor.
The Twenty-first Amendment repealed the prohibition on the manufacture, sale, or transportation of intoxicating liquors that had been established by the Eighteenth Amendment. Section 2 of the Twenty-first Amendment created an exception to the normal operation of the Commerce Clause, to permit States to prohibit commerce in, or the use of, alcoholic beverages. Craig v. Boren,
In its examination of Rhode Island’s statute, the Court of Appeals erroneously concluded that the Twenty-first Amendment provided an “added presumption in favor of the validity of the state regulation.”
Nothing in the Amendment’s text or history justifies its use to alter the application of the First Amendment. “[0]ur prior cases have made clear that the [Twenty-first] Amend
The Court of Appeals relied on California v. LaRue,
Rhode Island’s prohibition on alcohol-price advertising, as a means to keep alcohol prices high and consumption low, cannot survive First Amendment scrutiny. The Twenty-first Amendment cannot save this otherwise invalid regulation. While I agree with the Court’s finding that the regulation is invalid, I would decide that issue on narrower grounds. I therefore concur in the judgment.
