NATIONAL PORK PRODUCERS COUNCIL ET AL. v. ROSS, SECRETARY OF THE CALIFORNIA DEPARTMENT OF FOOD AND AGRICULTURE, ET AL.
No. 21-468
SUPREME COURT OF THE UNITED STATES
May 11, 2023
598 U. S. ____ (2023)
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT; Argued October 11, 2022
OCTOBER TERM, 2022
Syllabus
NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.
Syllabus
NATIONAL PORK PRODUCERS COUNCIL ET AL. v. ROSS, SECRETARY OF THE CALIFORNIA DEPARTMENT OF FOOD AND AGRICULTURE, ET AL.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
No. 21-468. Argued October 11, 2022-Decided May 11, 2023
This case involves a challenge to a California law known as Proposition 12, which as relevant here forbids the in-state sale of whole pork meat that comes from breeding pigs (or their immediate offspring) that are “confined in a cruel manner.”
Held: The judgment of the Ninth Circuit is affirmed.
6 4th 1021, affirmed.
(a) The Constitution vests Congress with the power to “regulate Commerce . . . among the several States.”
The antidiscrimination principle lies at the “very core” of the Court‘s dormant Commerce Clause jurisprudence. Camps Newfound/Owatonna, Inc. v. Town of Harrison, 520 U. S. 564, 581. This Court has said that the Commerce Clause prohibits the enforcement of state laws “driven by . . . ‘economic protectionism-that is, regulatory measures designed to benefit in-state economic interests by burdening out-of-state competitors.‘” Department of Revenue of Ky. v. Davis, 553 U. S. 328, 337-338 (quoting New Energy Co. of Ind. v. Limbach, 486 U. S. 269, 273-274). Petitioners here disavow any discrimination-based claim, conceding that Proposition 12 imposes the same burdens on in-state pork producers that it imposes on out-of-state pork producers. Pp 5-8.
(b) Given petitioners’ concession that Proposition 12 does not implicate the antidiscrimination principle, petitioners first invoke what they call the “extraterritoriality doctrine.” They contend that the Court‘s dormant Commerce Clause cases suggest an additional and “almost per se” rule forbidding enforcement of state laws that have the “practical effect of controlling commerce outside the State,” even when those laws do not purposely discriminate against out-of-state interests.
Petitioners insist that Baldwin, Brown-Forman, and Healy taken together suggest an “almost per se” rule against state laws with “extraterritorial effects.” While petitioners point to language in these cases pertaining to the “practical effect” of the challenged laws on out-of-state commerce and prices, “the language of an opinion is not always to be parsed as though we were dealing with language of a statute.” Reiter v. Sonotone Corp., 442 U. S. 330, 341. The language highlighted by petitioners in Baldwin, Brown-Forman, and Healy appeared in a particular context and did particular work. A close look at those cases reveals nothing like the “almost per se” rule against laws that have the “practical effect” of “controlling” extraterritorial commerce that petitioners posit, and indeed petitioners’ reading would cast a shadow over laws long understood to represent valid exercises of the States’ constitutionally reserved powers. Baldwin, Brown-Forman, and Healy did not mean to do so much. In rejecting petitioners’ “almost per se” theory
(c) Petitioners next point to Pike v. Bruce Church, Inc., 397 U. S. 137, which they assert requires a court to at least assess “the burden imposed on interstate commerce” by a state law and prevent its enforcement if the law‘s burdens are “clearly excessive in relation to the putative local benefits.” Brief for Petitioners 44. Petitioners provide a litany of reasons why they believe the benefits Proposition 12 secures for Californians do not outweigh the costs it imposes on out-of-state economic interests.
Petitioners overstate the extent to which Pike and its progeny depart from the antidiscrimination rule that lies at the core of the Court‘s dormant Commerce Clause jurisprudence. As this Court has previously explained, “no clear line” separates the Pike line of cases from core antidiscrimination precedents. General Motors Corp. v. Tracy, 519 U. S. 278, 298, n. 12. If some cases focus on whether a state law discriminates on its face, the Pike line serves as an important reminder that a law‘s practical effects may also disclose the presence of a discriminatory purpose. Pike itself concerned an Arizona order requiring cantaloupes grown in state to be processed and packed in state. 397 U. S., at 138-140. The Court held that Arizona‘s order violated the dormant Commerce Clause, stressing that even if that order could be fairly characterized as facially neutral, it “requir[ed] business operations to be performed in [state] that could more efficiently be performed elsewhere.” Id., at 145. The “practical effect[s]” of the order in operation thus revealed a discriminatory purpose-an effort to insulate in-state processing and packaging businesses from out-of-state competition. Id., at 140. While this Court has left the “courtroom door open” to challenges premised on “even nondiscriminatory burdens,” Davis, 553 U. S., at 353, and while “a small number of our cases have invalidated state laws . . . that appear to have been genuinely nondiscriminatory,”
(d) The Framers equipped Congress with considerable power to regulate interstate commerce and preempt contrary state laws. See
JUSTICE GORSUCH, joined by JUSTICE THOMAS and JUSTICE BARRETT, concluded in Part IV-B that, accepting petitioners’ allegations, the Pike balancing task that they propose in this case is one no court is equipped to undertake. Some out-of-state producers who choose to comply with Proposition 12 may incur new costs, while the law serves moral and health interests of some magnitude for in-state residents. In a functioning democracy, those sorts of policy choices-balancing competing, incommensurable goods-belong to the people and their elected representatives. Pp 18-21.
JUSTICE GORSUCH, joined by JUSTICE THOMAS, JUSTICE SOTOMAYOR, and JUSTICE KAGAN, concluded in Part IV-C that the allegations in the complaint were insufficient as a matter of law to demonstrate a substantial burden on interstate commerce, a showing Pike requires before a court may assess the law‘s competing benefits or weigh the two sides against each other, and that the facts pleaded merely allege harm to some producers’ favored “methods of operation” which the Court found insufficient to state a claim in Exxon Corp. v. Governor of Maryland, 437 U. S. 117, 127. Pp 21-25.
JUSTICE GORSUCH, joined by JUSTICE THOMAS and JUSTICE BARRETT, concluded in Part IV-D that petitioners have not asked the Court to treat putative harms to out-of-state animal welfare or other noneconomic interests as freestanding harms cognizable under the dormant Commerce Clause, and in any event that the Court‘s decisions authorizing claims alleging “burdens on commerce,” Davis, 553 U. S., at 353,
JUSTICE SOTOMAYOR, joined by JUSTICE KAGAN, concluded that the judgment should be affirmed, not because courts are incapable of balancing economic burdens against noneconomic benefits as Pike requires or because of any other fundamental reworking of that doctrine, but because petitioners fail to plausibly allege a substantial burden on interstate commerce as required by Pike. Pp 1-3.
JUSTICE BARRETT concluded that the judgment should be affirmed because Pike balancing requires both the benefits and burdens of a State law to be judicially cognizable and comparable, see Department of Revenue of Ky. v. Davis, 553 U. S. 328, 354-355, but the benefits and burdens of Proposition 12 are incommensurable; that said, the complaint plausibly alleges a substantial burden on interstate commerce because Proposition 12‘s costs are pervasive, burdensome, and will be felt primarily (but not exclusively) outside California. Pp 1-2.
GORSUCH, J., announced the judgment of the Court, and delivered the opinion of the Court with respect to Parts I, II, III, IV-A, and V, in which THOMAS, SOTOMAYOR, KAGAN, and BARRETT, JJ., joined, an opinion with respect to Parts IV-B and IV-D, in which THOMAS and BARRETT, JJ., joined, and an opinion with respect to Part IV-C, in which THOMAS, SOTOMAYOR, and KAGAN, JJ., joined. SOTOMAYOR, J., filed an opinion concurring in part, in which KAGAN, J., joined. BARRETT, J., filed an opinion concurring in part. ROBERTS, C. J., filed an opinion concurring in part and dissenting in part, in which ALITO, KAVANAUGH, and JACKSON, JJ., joined. KAVANAUGH, J., filed an opinion concurring in part and dissenting in part.
Opinion of the Court
NOTICE: This opinion is subject to formal revision before publication in the United States Reports. Readers are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D. C. 20543, pio@supremecourt.gov, of any typographical or other formal errors.
No. 21-468
NATIONAL PORK PRODUCERS COUNCIL, ET AL., PETITIONERS v. KAREN ROSS, IN HER OFFICIAL CAPACITY AS SECRETARY OF THE CALIFORNIA DEPARTMENT OF FOOD & AGRICULTURE, ET AL.
ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
[May 11, 2023]
JUSTICE GORSUCH announced the judgment of the Court and delivered the opinion of the Court, except as to Parts IV-B, IV-C, and IV-D.
What goods belong in our stores? Usually, consumer demand and local laws supply some of the answer. Recently, California adopted just such a law banning the in-state sale of certain pork products derived from breeding pigs confined in stalls so small they cannot lie down, stand up, or turn around. In response, two groups of out-of-state pork producers filed this lawsuit, arguing that the law unconstitutionally interferes with their preferred way of doing business in violation of this Court‘s dormant Commerce Clause precedents. Both the district court and court of appeals dismissed the producers’ complaint for failing to state a claim.
We affirm. Companies that choose to sell products in various States must normally comply with the laws of those various States. Assuredly, under this Court‘s dormant Commerce Clause decisions, no State may use its laws to
I
Modern American grocery stores offer a dizzying array of choice. Often, consumers may choose among eggs that are large, medium, or small; eggs that are white, brown, or some other color; eggs from cage-free chickens or ones raised consistent with organic farming standards. When it comes to meat and fish, the options are no less plentiful. Products may be marketed as free range, wild caught, or graded by quality (prime, choice, select, and beyond). The pork products at issue here, too, sometimes come with “antibiotic-free” and “crate-free” labels. USDA, Report to Congress: Livestock Mandatory Reporting 18 (2018), https://www.ams.usda.gov/sites/default/files/media/LMR2018ReporttoCongress.pdf. Much of this product differentiation reflects consumer demand, informed by individual taste, health, or moral considerations.
Informed by similar concerns, States (and their predecessors) have long enacted laws aimed at protecting animal welfare. As far back as 1641, the Massachusetts Bay Colony prohibited “Tirranny or Crueltie towards any bruite Creature.” Body of Liberties §92, in A Bibliographical Sketch of the Laws of the Massachusetts Colony 52–53 (1890). Today, Massachusetts prohibits the sale of pork products from breeding pigs (or their offspring) if the breeding pig has been confined “in a manner that prevents [it] from lying down, standing up, fully extending [its] limbs or turning around freely.”
This case involves a challenge to a California law known as Proposition 12. In November 2018 and with the support of about 63% of participating voters, California adopted a ballot initiative that revised the State‘s existing standards for the in-state sale of eggs and announced new standards for the in-state sale of pork and veal products. App. to Pet. for Cert. 37a–46a. As relevant here, Proposition 12 forbids the in-state sale of whole pork meat that comes from breeding pigs (or their immediate offspring) that are “confined in a cruel manner.”
A spirited debate preceded the vote on Proposition 12. Proponents observed that, in some farming operations, pregnant pigs remain “[e]ncased” for 16 weeks in “fit-to-size” metal crates. M. Scully, A Brief for the Pigs: The Case of National Pork Producers Council v. Ross, National Review, July 11, 2022, https://www.nationalreview.com/2022/
Opponents pressed their case in strong terms too. They argued that existing farming practices did a better job of protecting animal welfare (for example, by preventing pig-on-pig aggression) and ensuring consumer health (by avoiding contamination) than Proposition 12 would. Id., at 185a–187a; see also Voter Guide 70–71. They also warned voters that Proposition 12 would require some farmers and processors to incur new costs. Id., at 69. Ones that might be “passed through” to California consumers. Ibid.
Shortly after Proposition 12‘s adoption, two organizations-the National Pork Producers Council and the American Farm Bureau Federation (collectively, petitioners)—filed this lawsuit on behalf of their members who raise and process pigs. App. to Pet. for Cert. 154a–155a. Petitioners alleged that Proposition 12 violates the
In support of that legal claim, petitioners pleaded a number of facts. They acknowledged that, in response to consumer demand and the laws of other States, 28% of their
After considerable motions practice, the district court held that petitioners’ complaint failed to state a claim as a matter of law and dismissed the case. 456 F. Supp. 3d 1201 (SD Cal. 2020). With Judge Ikuta writing for a unanimous panel, the Ninth Circuit affirmed. 6 F. 4th 1021 (2021). Following that ruling, petitioners sought certiorari and we agreed to consider the complaint‘s legal sufficiency for ourselves. 596 U. S. ____ (2022).
II
The Constitution vests Congress with the power to “regulate Commerce . . . among the several States.”
That has led petitioners to resort to litigation, pinning their hopes on what has come to be called the dormant Commerce Clause. Reading between the Constitution‘s lines, petitioners observe, this Court has held that the Commerce Clause not only vests Congress with the power to regulate interstate trade; the Clause also “contain[s] a further, negative command,” one effectively forbidding the enforcement of “certain state [economic regulations] even when Congress has failed to legislate on the subject.” Oklahoma Tax Comm‘n v. Jefferson Lines, Inc., 514 U. S. 175, 179 (1995).
This view of the Commerce Clause developed gradually. In Gibbons v. Ogden, Chief Justice Marshall recognized that the States’ constitutionally reserved powers enable them to regulate commerce in their own jurisdictions in ways sure to have “a remote and considerable influence on commerce” in other States. 9 Wheat. 1, 203 (1824). By way of example, he cited “[i]nspection laws, quarantine laws, [and] health laws of every description.” Ibid. At the same time, however, Chief Justice Marshall saw “great force in th[e] argument” that the Commerce Clause might impliedly bar certain types of state economic regulation. Id., at 209. Decades later, in Cooley v. Board of Wardens of Port of Philadelphia ex rel. Soc. for Relief of Distressed Pilots, this Court again recognized that the power vested in Congress to regulate interstate commerce leaves the States substantial leeway to adopt their own commercial codes. 12 How. 299, 317-321 (1852). But once more, the Court hinted that the Constitution may come with some restrictions on what
Eventually, the Court cashed out these warnings, holding that state laws offend the Commerce Clause when they seek to “build up . . . domestic commerce” through “burdens upon the industry and business of other States,” regardless of whether Congress has spoken. Guy v. Baltimore, 100 U. S. 434, 443 (1880). At the same time, though, the Court reiterated that, absent discrimination, “a State may exclude from its territory, or prohibit the sale therein of any articles which, in its judgment, fairly exercised, are prejudicial to” the interests of its citizens. Ibid.
Today, this antidiscrimination principle lies at the “very core” of our dormant Commerce Clause jurisprudence. Camps Newfound/Owatonna, Inc. v. Town of Harrison, 520 U. S. 564, 581 (1997). In its “modern” cases, this Court has said that the Commerce Clause prohibits the enforcement of state laws “driven by . . . ‘economic protectionism-that is, regulatory measures designed to benefit in-state economic interests by burdening out-of-state competitors.‘” Department of Revenue of Ky. v. Davis, 553 U. S. 328, 337-338 (2008) (quoting New Energy Co. of Ind. v. Limbach, 486 U. S. 269, 273-274 (1988)); see also Tennessee Wine and Spirits Retailers Assn. v. Thomas, 588 U. S. ____, ____ (2019) (slip op., at 9) (observing that this Court‘s cases operate principally to “safeguard against state protectionism“); Northwest Airlines, Inc. v. County of Kent, 510 U. S. 355, 373, n. 18 (1994) (describing “a violation of the dormant Commerce Clause” as “discrimination against interstate commerce“).
Admittedly, some “Members of the Court have authored vigorous and thoughtful critiques of this interpretation” of the Commerce Clause. Tennessee Wine, 588 U. S., at ____ (slip op., at 7) (citing cases). They have not necessarily quarreled with the antidiscrimination principle. But they have suggested that it may be more appropriately housed
Whatever one thinks about these critiques, we have no need to engage with any of them to resolve this case. Even under our received dormant Commerce Clause case law, petitioners begin in a tough spot. They do not allege that California‘s law seeks to advantage in-state firms or disadvantage out-of-state rivals. In fact, petitioners disavow any discrimination-based claim, conceding that Proposition 12 imposes the same burdens on in-state pork producers that it imposes on out-of-state ones. As petitioners put it, “the dormant Commerce Clause . . . bar on protectionist state statutes that discriminate against interstate commerce . . . is not in issue here.” Brief for Petitioners 2, n. 2.
III
Having conceded that California‘s law does not implicate the antidiscrimination principle at the core of this Court‘s dormant Commerce Clause cases, petitioners are left to pursue two more ambitious theories. In the first, petitioners invoke what they call “extraterritoriality doctrine.” Id., at 19. They contend that our dormant Commerce Clause
A
This argument falters out of the gate. Put aside what problems may attend the minor (factual) premise of this argument. Focus just on the major (legal) premise. Petitioners say the “almost per se” rule they propose follows ineluctably from three cases-Healy v. Beer Institute, 491 U. S. 324 (1989); Brown-Forman Distillers Corp. v. New York State Liquor Authority, 476 U. S. 573 (1986); and Baldwin v. G. A. F. Seelig, Inc., 294 U. S. 511 (1935). A close look at those cases, however, reveals nothing like the rule petitioners posit. Instead, each typifies the familiar concern with preventing purposeful discrimination against out-of-state economic interests.
Start with Baldwin. There, this Court refused to enforce New York laws that barred out-of-state dairy farmers from selling their milk in the State “unless the price paid to” them matched the minimum price New York law guaranteed in-state producers. Id., at 519. In that way, the challenged laws deliberately robbed out-of-state dairy farmers of the opportunity to charge lower prices in New York thanks to whatever “natural competitive advantage” they might have enjoyed over in-state dairy farmers-for example, lower cost structures, more productive farming practices, or “lusher pasturage.” D. Regan, The Supreme Court and State Protectionism: Making Sense of the Dormant Commerce Clause, 84 Mich. L. Rev. 1091, 1248 (1986). The problem with New York‘s laws was thus a simple one:
Brown-Forman and Healy differed from Baldwin only in that they involved price-affirmation, rather than price-fixing, statutes. In Brown-Forman, New York required liquor distillers to affirm (on a monthly basis) that their in-state prices were no higher than their out-of-state prices. 476 U. S., at 576. Once more, the goal was plain: New York sought to force out-of-state distillers to “surrender” whatever cost advantages they enjoyed against their in-state rivals. Id., at 580. Once more, the law amounted to “simple economic protectionism.” Ibid. (internal quotation marks omitted).
In Healy, a Connecticut law required out-of-state beer merchants to affirm that their in-state prices were no higher than those they charged in neighboring States. 491 U. S., at 328-330. Here, too, protectionism took center stage. As the Court later noted, “[t]he essential vice in laws” like Connecticut‘s is that they “hoard” commerce “for the benefit of” in-state merchants and discourage consumers from crossing state lines to make their purchases from nearby out-of-state vendors. C & A Carbone, Inc. v. Clarkstown, 511 U. S. 383, 391-392 (1994). Nor did the law in Healy even try to cloak its discriminatory purpose: “By its plain terms, the Connecticut affirmation statute applie[d] solely to interstate” firms, and in that way “clearly discriminate[d] against interstate commerce.” 491 U. S., at 340-341. The Court also worried that, if the Connecticut law
B
Petitioners insist that our reading of these cases misses the forest for the trees. On their account, Baldwin, Brown-Forman, and Healy didn‘t just find an impermissible discriminatory purpose in the challenged laws; they also suggested an “almost per se” rule against state laws with “extraterritorial effects.” Brief for Petitioners 19, 23. In Healy, petitioners stress, the Court included language criticizing New York‘s laws for having the “‘practical effect’ of ‘control[ling] commerce occurring wholly outside the boundaries of [the] State.‘” Brief for Petitioners 21, 25 (quoting 491 U. S., at 336). In Brown-Forman, petitioners observe, the Court suggested that whether a state law “is addressed only to [in-state] sales is irrelevant if the ‘practical effect’ of the law is to control” out-of-state prices. Brief for Petitioners 21 (quoting 476 U. S., at 583). Petitioners point to similar language in Baldwin as well. Brief for Petitioners 37 (quoting 294 U. S., at 523-524).
In our view, however, petitioners read too much into too little. “[T]he language of an opinion is not always to be parsed as though we were dealing with language of a statute.” Reiter v. Sonotone Corp., 442 U. S. 330, 341 (1979). Instead, we emphasize, our opinions dispose of discrete cases and controversies and they must be read with a careful eye to context. See Cohens v. Virginia, 6 Wheat. 264, 399-400 (1821) (Marshall, C. J.). And when it comes to Baldwin, Brown-Forman, and Healy, the language petitioners highlight appeared in a particular context and did particular work. Throughout, the Court explained that the challenged statutes had a specific impermissible “extraterritorial effect“-they deliberately “prevent[ed out-of-state
In recognizing this much, we say nothing new. This Court has already described “[t]he rule that was applied in Baldwin and Healy” as addressing “price control or price affirmation statutes” that tied “the price of . . . in-state products to out-of-state prices.” Pharmaceutical Research and Mfrs. of America v. Walsh, 538 U. S. 644, 669 (2003) (internal quotation marks omitted). Many lower courts have read these decisions in exactly the same way. See, e.g., 6 F. 4th, at 1028–1029; Association for Accessible Medicines v. Frosh, 887 F. 3d 664, 669 (CA4 2018); Energy and Environment Legal Inst. v. Epel, 793 F. 3d 1169, 1174 (CA10 2015); American Beverage Assn. v. Snyder, 735 F. 3d 362, 373 (CA6 2013).
Consider, too, the strange places petitioners’ alternative interpretation could lead. In our interconnected national marketplace, many (maybe most) state laws have the “practical effect of controlling” extraterritorial behavior. State income tax laws lead some individuals and companies to relocate to other jurisdictions. See, e.g., Banner v. United States, 428 F. 3d 303, 310 (CADC 2005) (per curiam). Environmental laws often prove decisive when businesses choose where to manufacture their goods. See American Beverage Assn., 735 F. 3d, at 379 (Sutton, J., concurring). Add to the extraterritorial-effects list all manner of “libel laws, securities requirements, charitable registration requirements, franchise laws, tort laws,” and plenty else besides. J. Goldsmith & A. Sykes, The Internet and the Dormant Commerce Clause, 110 Yale L. J. 785, 804 (2001). Nor, as we have seen, is this a recent development. Since the founding, States have enacted an “immense mass” of “[i]nspection laws, quarantine laws, [and] health laws of every description” that have a “considerable” influence on
In rejecting petitioners’ “almost per se” theory we do not mean to trivialize the role territory and sovereign boundaries play in our federal system. Certainly, the Constitution takes great care to provide rules for fixing and changing state borders.
To resolve disputes about the reach of one State‘s power,
IV
Failing in their first theory, petitioners retreat to a second they associate with Pike v. Bruce Church, Inc., 397 U. S. 137 (1970). Under Pike, they say, a court must at least assess “the burden imposed on interstate commerce” by a state law and prevent its enforcement if the law‘s burdens are “clearly excessive in relation to the putative local benefits.” Brief for Petitioners 44. Petitioners then rattle off a litany of reasons why they believe the benefits Proposition 12 secures for Californians do not outweigh the costs it imposes on out-of-state economic interests. We see problems with this theory too.
A
In the first place, petitioners overstate the extent to which Pike and its progeny depart from the antidiscrimination rule that lies at the core of our dormant Commerce Clause jurisprudence. As this Court has previously explained, “no clear line” separates the Pike line of cases from our core antidiscrimination precedents. General Motors Corp. v. Tracy, 519 U. S. 278, 298, n. 12 (1997). While many of our dormant Commerce Clause cases have asked whether a law exhibits “facial discrimination,” “several cases that have purported to apply [Pike,] including Pike itself,” have “turned in whole or in part on the discriminatory character of the challenged state regulations.” Ibid. In other words, if some of our cases focus on whether a state law discriminates on its face, the Pike line serves as an important reminder that a law‘s practical effects may also disclose the presence of a discriminatory purpose.
Pike itself illustrates the point. That case concerned an of-state transactions by those with no connection to the State. Petitioners do not allege those conditions exist here. To the contrary, they acknowledge that Proposition 12 regulates only products that companies choose to sell “within” California.
Other cases in the Pike line underscore the same message. In Minnesota v. Clover Leaf Creamery Co., the Court found no impermissible burden on interstate commerce because, looking to the law‘s effects, “there [was] no reason to suspect that the gainers” would be in-state firms or that “the losers [would be] out-of-state firms.” 449 U. S. 456, 473 (1981); see also id., at 474-477, and n. 2 (Powell, J., concurring in part and dissenting in part) (asking whether the “actual purpose,” if not the “avowed purpose,” of the law was discrimination). Similarly, in Exxon Corp. v. Governor of Maryland, the Court keyed to the fact that the effect of the challenged law was only to shift business from one set of out-of-state suppliers to another. 437 U. S. 117, 127 (1978). And in United Haulers, a plurality upheld the challenged law because it could not “detect” any discrimination in favor of in-state businesses or against out-of-state competitors. 550 U. S., at 346. In each of these cases and many more, the presence or absence of discrimination in practice proved decisive.
Once again, we say nothing new here. Some time ago, Tracy identified the congruity between our core dormant Commerce Clause precedents and the Pike line. 519 U. S., at 298, n. 12. Many lower courts have done the same. See, e.g., Rosenblatt v. Santa Monica, 940 F. 3d 439, 452 (CA9 2019); Park Pet Shop, Inc. v. Chicago, 872 F. 3d 495, 501 (CA7 2017); Amanda Acquisition Corp. v. Universal Foods Corp., 877 F. 2d 496, 505 (CA7 1989). So have many scholars. See, e.g., R. Fallon, The Dynamic Constitution 311 (2d ed. 2013) (observing that Pike serves to “‘smoke out’ a hidden” protectionism); B. Friedman & D. Deacon, A Course Unbroken: The Constitutional Legitimacy of the Dormant Commerce Clause, 97 Va. L. Rev. 1877, 1927 (2011); Regan, 84 Mich. L. Rev., at 1286.
Nor does any of this help petitioners in this case. They not only disavow any claim that Proposition 12 discriminates on its face. They nowhere suggest that an examination of Proposition 12‘s practical effects in operation would disclose purposeful discrimination against out-of-state businesses. While this Court has left the “courtroom door open” to challenges premised on “even nondiscriminatory burdens,” Davis, 553 U. S., at 353, and while “a small number of our cases have invalidated state laws . . . that appear to have been genuinely nondiscriminatory,” Tracy, 519 U. S., at 298, n. 12,2 petitioners’ claim falls well outside
B
Matters do not improve from there. While Pike has traditionally served as another way to test for purposeful discrimination against out-of-state economic interests, and while some of our cases associated with that line have expressed special concern with certain state regulation of the instrumentalities of interstate transportation, see n. 2, supra, petitioners would have us retool Pike for a much more ambitious project. They urge us to read Pike as authorizing judges to strike down duly enacted state laws regulating the in-state sale of ordinary consumer goods (like pork) based on nothing more than their own assessment of the relevant law‘s “costs” and “benefits.”
That we can hardly do. Whatever other judicial authorities the Commerce Clause may imply, that kind of freewheeling power is not among them. Petitioners point to nothing in the Constitution‘s text or history that supports such a project. And our cases have expressly cautioned against judges using the dormant Commerce Clause as “a roving license for federal courts to decide what activities are appropriate for state and local government to undertake.” United Haulers, 550 U. S., at 343. While “[t]here was a time when this Court presumed to make such binding judgments for society, under the guise of interpreting the Due Process Clause,” we have long refused pleas like petitioners’ “to reclaim that ground” in the name of the dormant Commerce Clause. Id., at 347.
Not only is the task petitioners propose one the Commerce Clause does not authorize judges to undertake. This Court has also recognized that judges often are “not institutionally suited to draw reliable conclusions of the kind
Our case illustrates the problem. On the “cost” side of the ledger, petitioners allege they will face increased production expenses because of Proposition 12. On the “benefits” side, petitioners acknowledge that Californians voted for Proposition 12 to vindicate a variety of interests, many noneconomic. See App. to Pet. for Cert. 192a (alleging in their complaint that “Proposition 12‘s requirements were driven by [a] conception of what qualifies as ‘cruel’ animal housing” and by the State‘s concern for the “‘health and safety of California consumers‘“). How is a court supposed to compare or weigh economic costs (to some) against noneconomic benefits (to others)? No neutral legal rule guides the way. The competing goods before us are insusceptible to resolution by reference to any juridical principle. Really, the task is like being asked to decide “whether a particular line is longer than a particular rock is heavy.” Bendix Autolite Corp. v. Midwesco Enterprises, Inc., 486 U. S. 888, 897 (1988) (Scalia, J., concurring in judgment).
Faced with this problem, petitioners reply that we should heavily discount the benefits of Proposition 12. They say that California has little interest in protecting the welfare of animals raised elsewhere and the law‘s health benefits are overblown. But along the way, petitioners offer notable concessions too. They acknowledge that States may sometimes ban the in-state sale of products they deem unethical or immoral without regard to where those products are made (for example, goods manufactured with child labor). See Tr. of Oral Arg. 51 (“[A] state is perfectly entitled to enforce its morals in state“); see also Western Union Telegraph Co. v. James, 162 U. S. 650, 653 (1896) (holding that States may enact laws to “promote . . . public morals“). And, at least arguably, Proposition 12 works in just this way—banning from the State all whole pork products derived from practices its voters consider “cruel.” Petitioners
So even accepting everything petitioners say, we remain left with a task no court is equipped to undertake. On the one hand, some out-of-state producers who choose to comply with Proposition 12 may incur new costs. On the other hand, the law serves moral and health interests of some (disputable) magnitude for in-state residents. Some might reasonably find one set of concerns more compelling. Others might fairly disagree. How should we settle that dispute? The competing goods are incommensurable. Your guess is as good as ours.
More accurately, your guess is better than ours. In a functioning democracy, policy choices like these usually belong to the people and their elected representatives. They are entitled to weigh the relevant “political and economic” costs and benefits for themselves, Moorman Mfg. Co. v. Bair, 437 U. S. 267, 279 (1978), and “try novel social and economic experiments” if they wish, New State Ice Co. v. Liebmann, 285 U. S. 262, 311 (1932) (Brandeis, J., dissenting). Judges cannot displace the cost-benefit analyses embodied in democratically adopted legislation guided by nothing more than their own faith in “Mr. Herbert Spencer‘s Social Statics,” Lochner v. New York, 198 U. S. 45, 75 (1905) (Holmes, J., dissenting)—or, for that matter, Mr. Wilson Pond‘s Pork Production Systems, see W. Pond, J. Maner, & D. Harris, Pork Production Systems: Efficient Use of Swine and Feed Resources (1991).
If, as petitioners insist, California‘s law really does
C
Even as petitioners conceive Pike, they face a problem. As they read it, Pike requires a plaintiff to plead facts plausibly showing that a challenged law imposes “substantial burdens” on interstate commerce before a court may assess the law‘s competing benefits or weigh the two sides against each other. Brief for Petitioners 44. And, tellingly, the complaint before us fails to clear even that bar.
To appreciate petitioners’ problem, compare our case to Exxon. That case involved a Maryland law prohibiting petroleum producers from operating retail gas stations in the State. 437 U. S., at 119-121, and n. 1. Because Maryland had no in-state petroleum producers, Exxon argued, the law‘s “divestiture requirements” fell “solely on interstate companies” and threatened to force some to “withdraw entirely from the Maryland market” or incur new costs to serve that market. Id., at 125-127. All this, the company said, amounted to a violation of the dormant Commerce
This Court found the allegations in Exxon‘s complaint insufficient as a matter of law to demonstrate a substantial burden on interstate commerce. Without question, Maryland‘s law favored one business structure (independent gas station retailers) over another (vertically integrated production and retail firms). Ibid. The law also promised to increase retail gas prices for Maryland consumers, allowing some to question its “wisdom.” Id., at 124, 128. But, the Court found, Exxon failed to plead facts leading, “either logically or as a practical matter, to [the] conclusion that the State [was] discriminating against interstate commerce.” Id., at 125. The company failed to do so because, on its face, Maryland‘s law welcomed competition from interstate retail gas station chains that did not produce petroleum. Id., at 125-126. And as far as anyone could tell, the law‘s “practical effect” wasn‘t to protect in-state producers; it was to shift market share from one set of out-of-state firms (vertically integrated businesses) to another (retail gas station firms). Id., at 125, 127. This Court squarely rejected the view that this predicted “change [in] the market structure” would “impermissibly burde[n] interstate commerce.” Id., at 127. If the dormant Commerce Clause protects the “interstate market . . . from prohibitive or burdensome regulations,” the Court held, it does not protect “particular . . . firms” or “particular structure[s] or methods of operation.” Id., at 127-128.
If Maryland‘s law did not impose a sufficient burden on interstate commerce to warrant further scrutiny, the same must be said for Proposition 12. In Exxon, vertically integrated businesses faced a choice: They could divest their production capacities or withdraw from the local retail market. Here, farmers and vertically integrated processors have at least as much choice: They may provide all their pigs the space the law requires; they may segregate their operations to ensure pork products entering California
Think of it another way. Petitioners must plead facts “plausibly” suggesting a substantial harm to interstate commerce; facts that render that outcome a “speculative” possibility are not enough. Bell Atlantic Corp. v. Twombly, 550 U. S. 544, 555, 557 (2007). In an effort to meet this standard, petitioners allege facts suggesting that certain out-of-state farmers and processing firms will find it difficult to comply with Proposition 12 and may choose not to do so. See App. to Pet. for Cert. 198a, 208a, 313a. But the complaint also acknowledges that many producers have already converted to some form of group housing, even if they have not all yet met Proposition 12‘s standards. Id., at 186a. From these facts, the complaint plausibly alleges that some out-of-state firms may face difficulty complying (or may choose not to comply) with Proposition 12. But from all anyone can tell, other out-of-state competitors seeking to
Of course, as the complaint alleges, a shift from one set of production methods to another promises some costs. Id., at 214a. But the complaint concedes that complying producers will be able to “pas[s] along” at least “some” of their increased costs to consumers. Id., at 178a. And no one thinks that costs ultimately borne by in-state consumers thanks to a law they adopted counts as a cognizable harm under our dormant Commerce Clause precedents. See United Haulers, 550 U. S., at 345 (holding that the dormant Commerce Clause is not offended by higher prices “likely to fall upon the very people who voted for the [challenged] la[w]“). Nor does the complaint allege facts plausibly suggesting that out-of-state consumers indifferent to pork production methods will have to pick up the tab (let alone explain how petitioners might sue to vindicate their interests). Instead, at least one declaration incorporated by reference into the complaint avers that some out-of-state consumers will “not value these changes and will not pay an increased price.”
D
THE CHIEF JUSTICE‘s concurrence in part and dissent in part (call it “the lead dissent“) offers a contrasting view. Correctly, it begins by rejecting petitioners’ “almost per se” rule against laws with extraterritorial effects. Post, at 1. And correctly, it disapproves reading Pike to endorse a “freewheeling judicial weighing of benefits and burdens.” Post, at 2. But for all it gets right, in other respects it goes astray. In places, the lead dissent seems to advance a reading of Pike that would permit judges to enjoin the enforcement of any state law restricting the sale of an ordinary consumer good if the law threatens an “excessive” “har[m] to the interstate market” for that good. Post, at 4-9. It is an approach that would go much further than our precedents permit. So much further, in fact, that it isn‘t clear what separates the lead dissent‘s approach from others it purports to reject.
Consider an example. Today, many States prohibit the sale of horsemeat for human consumption. See Cavel Int‘l, Inc. v. Madigan, 500 F. 3d 551, 552-555 (CA7 2007). But these prohibitions “har[m] the interstate market” for horsemeat by denying outlets for its sale. Not only that, they distort the market for animal products more generally by pressuring horsemeat manufacturers to transition to different products, ones they can lawfully sell nationwide. Under the lead dissent‘s test, all it would take is one complaint
Seeking a way around that problem, the lead dissent stumbles into another. It suggests that the burdens of Proposition 12 are particularly “substantial” because California‘s law “carr[ies] implications for producers as far flung as Indiana and North Carolina.” Post, at 7-10. Why is that so? JUSTICE KAVANAUGH‘s solo concurrence in part and dissent in part says the quiet part aloud: California‘s market is so lucrative that almost any in-state measure will influence how out-of-state profit-maximizing firms choose to operate. Post, at 4-5. But if that makes all the difference, it means voters in States with smaller markets are constitutionally entitled to greater authority to regulate in-state sales than voters in States with larger markets. So much for the Constitution‘s “fundamental principle of equal sovereignty among the States.” Shelby County v. Holder, 570 U. S. 529, 544 (2013) (internal quotation marks omitted).
The most striking feature of both dissents, however, may be another one. They suggest that, in assessing a state law‘s burdens under Pike, courts should take into account not just economic harms but also all manner of “derivative harms” to out-of-state interests. Post, at 5-6 (opinion of
V
Before the Constitution‘s passage, Rhode Island imposed special taxes on imported “New-England Rum“; Connecticut levied duties on goods “brought into th[e] State, by Land
Whether moved by this experience or merely worried that more States might join the bandwagon, the Framers equipped Congress with considerable power to regulate interstate commerce and preempt contrary state laws. See
Petitioners would have us cast aside caution for boldness. They have failed—repeatedly—to persuade Congress to use its express Commerce Clause authority to adopt a uniform rule for pork production. And they disavow any reliance on
The judgment of the Ninth Circuit is
Affirmed.
I join all but Parts IV-B and IV-D of JUSTICE GORSUCH‘S opinion. Given the fractured nature of Part IV, I write separately to clarify my understanding of why petitioners’ Pike claim fails. In short, I vote to affirm the judgment because petitioners fail to allege a substantial burden on interstate commerce as required by Pike, not because of any fundamental reworking of that doctrine.
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In Pike v. Bruce Church, Inc., 397 U. S. 137 (1970), the Court distilled a general principle from its prior cases. “Where [a] statute regulates even-handedly to effectuate a legitimate local public interest, and its effects on interstate commerce are only incidental, it will be upheld unless the burden imposed on such commerce is clearly excessive in relation to the putative local benefits.” Id., at 142. Further, “the extent of the burden that will be tolerated will of course depend on the nature of the local interest involved, and on whether it could be promoted as well with a lesser impact on interstate activities.” Ibid.
As the Court‘s opinion also acknowledges, however, the Court has “generally le[ft] the courtroom door open” to claims premised on “even nondiscriminatory burdens.” Department of Revenue of Ky. v. Davis, 553 U. S. 328, 353 (2008); see ante, at 17. Indeed, “a small number” of this Court‘s cases in the Pike line “have invalidated state laws . . . that appear to have been genuinely nondiscriminatory” in nature. General Motors Corp. v. Tracy, 519 U. S. 278, 298, n. 12 (1997); see ante, at 17. Often, such cases have addressed state laws that impose burdens on the arteries of commerce, on “trucks, trains, and the like.” Ibid., n. 2. Yet, there is at least one exception to that tradition. See Edgar v. MITE Corp., 457 U. S. 624, 643-646 (1982) (invalidating a nondiscriminatory state law that regulated tender offers to shareholders).
Pike claims that do not allege discrimination or a burden on an artery of commerce are further from Pike‘s core. As THE CHIEF JUSTICE recognizes, however, the Court today does not shut the door on all such Pike claims. See ante, at 17-18, and n. 2; post, at 2-3. Thus, petitioners’ failure to allege discrimination or an impact on the instrumentalities of commerce does not doom their Pike claim.
Nor does a majority of the Court endorse the view that judges are not up to the task that Pike prescribes. JUSTICE GORSUCH, for a plurality, concludes that petitioners’ Pike claim fails because courts are incapable of balancing economic burdens against noneconomic benefits. See ante, at 18-21. I do not join that portion of JUSTICE GORSUCH‘S
In my view, and as JUSTICE GORSUCH concludes for a separate plurality of the Court, petitioners’ Pike claim fails for a much narrower reason. Reading petitioners’ allegations in light of the Court‘s decision in Exxon Corp. v. Governor of Maryland, 437 U. S. 117 (1978), the complaint fails to allege a substantial burden on interstate commerce. See ante, at 21-25. Alleging a substantial burden on interstate commerce is a threshold requirement that plaintiffs must satisfy before courts need even engage in Pike‘s balancing and tailoring analyses. Because petitioners have not done so, they fail to state a Pike claim.
A state law that burdens interstate commerce in clear excess of its putative local benefits flunks Pike balancing. Pike v. Bruce Church, Inc., 397 U. S. 137, 142 (1970). In most cases, Pike‘s “general rule” reflects a commonsense principle: Where there‘s smoke, there‘s fire. Ibid. Under our dormant Commerce Clause jurisprudence, one State may not discriminate against another‘s producers or consumers. A law whose burdens fall incommensurately and inexplicably on out-of-state interests may be doing just that.
But to weigh benefits and burdens, it is axiomatic that both must be judicially cognizable and comparable. See Department of Revenue of Ky. v. Davis, 553 U. S. 328, 354-355 (2008). I agree with JUSTICE GORSUCH that the benefits and burdens of Proposition 12 are incommensurable. California‘s interest in eliminating allegedly inhumane products from its markets cannot be weighed on a scale opposite dollars and cents—at least not without second-guessing the moral judgments of California voters or making the kind of policy decisions reserved for politicians. Ante, at 18-21; Davis, 553 U. S., at 360 (Scalia, J., concurring in part). None
That said, I disagree with my colleagues who would hold that petitioners have failed to allege a substantial burden on interstate commerce. Ante, at 21-25; ante, at 3 (SOTOMAYOR, J., concurring in part). The complaint plausibly alleges that Proposition 12‘s costs are pervasive, burdensome, and will be felt primarily (but not exclusively) outside California. See post, at 6-7 (ROBERTS, C. J., concurring in part and dissenting in part). For this reason, I do not join Part IV-C of JUSTICE GORSUCH‘S opinion. If the burdens and benefits were capable of judicial balancing, I would permit petitioners to proceed with their Pike claim.
I agree with the Court‘s view in its thoughtful opinion that many of the leading cases invoking the dormant Commerce Clause are properly read as invalidating statutes that promoted economic protectionism. See ante, at 8–11. I also agree with the Court‘s conclusion that our precedent does not support a per se rule against state laws with “extraterritorial” effects. See ante, at 11-14. But I cannot agree with the approach adopted by some of my colleagues to analyzing petitioners’ claim based on Pike v. Bruce Church, Inc., 397 U. S. 137, 142 (1970). See ante, at 15–27 (opinion of GORSUCH, J.); ante, at 3 (SOTOMAYOR, J. concurring in part); ante, at 1–2 (BARRETT, J., concurring in part).
Pike provides that nondiscriminatory state regulations are valid under the Commerce Clause “unless the burden imposed on [interstate] commerce is clearly excessive in relation to the putative local benefits.” Id., at 142. A majority of the Court thinks that petitioners’ complaint does not make for “an auspicious start” on that claim. Ante, at 18. In my view, that is through no fault of their own.
I
The Ninth Circuit stated that “[w]hile the dormant Commerce Clause is not yet a dead letter, it is moving in that direction.” 6 F. 4th 1021, 1033 (2021). Today‘s majority does not pull the plug. For good reason: Although Pike is susceptible to misapplication as a freewheeling judicial weighing of benefits and burdens, it also reflects the basic concern of our Commerce Clause jurisprudence that there be “free private trade in the national marketplace.” General Motors Corp. v. Tracy, 519 U. S. 278, 287 (1997) (quoting Reeves, Inc. v. Stake, 447 U. S. 429, 437 (1980)); see also Hunt v. Washington State Apple Advertising Comm‘n, 432 U. S. 333, 350 (1977) (Pike protects “a national ‘common market‘“). “Our system, fostered by the Commerce Clause, is that every farmer and every craftsman shall be encouraged to produce by the certainty that he will have free access to every market in the Nation, that no home embargoes will withhold his exports, and no foreign state will by customs duties or regulations exclude them.” H. P. Hood & Sons, Inc. v. Du Mond, 336 U. S. 525, 539 (1949).
The majority‘s discussion of our Pike jurisprudence highlights two types of cases: those involving discriminatory state laws and those implicating the “instrumentalities of interstate transportation.” Ante, at 17, n. 2. But Pike has not been so narrowly typecast. As a majority of the Court acknowledges, “we generally leave the courtroom door open to plaintiffs invoking the rule in Pike, that even nondiscrim
Speaking for three Members of the Court, JUSTICE GORSUCH objects that balancing competing interests under Pike is simply an impossible judicial task. See ante, at 18–21. I certainly appreciate the concern, see United Haulers, 550 U. S., at 343, 347, but sometimes there is no avoiding the need to weigh seemingly incommensurable values. See, e.g., Schneider v. State (Town of Irvington), 308 U. S. 147, 162 (1939) (weighing “the purpose to keep the streets clean and of good appearance” against the “the constitutional protection of the freedom of speech and press“); Winston v. Lee, 470 U. S. 753, 760 (1985) (“The reasonableness” under the Fourth Amendment “of surgical intrusions beneath the skin depends on a case-by-case approach, in which the individual‘s interests in privacy and security are weighed against society‘s interests in conducting the procedure.“); Addington v. Texas, 441 U. S. 418, 425 (1979) (“In considering what standard should govern in a civil commitment proceeding, we must assess both the extent of the individual‘s interest in not being involuntarily confined indefinitely and the
II
This case comes before us on a
A
Our precedents have long distinguished the costs of complying with a given state regulation from other economic harms to the interstate market. Bibb v. Navajo Freight Lines, Inc., 359 U. S. 520 (1959), illustrates the point. In
Pike itself did not conflate harms to the interstate market with compliance costs. In Pike, we analyzed an Arizona law requiring that cantaloupes grown in the State be packed prior to shipment across state lines. 397 U. S., at 138. We noted repeatedly that the regulation would require the appellee to construct an unneeded packing facility in Arizona at a cost of $200,000. Id., at 140, 144, 145. But we considered that cost together with the “nature” of a regulation “requiring business operations to be performed in the home
The derivative harms we have long considered in this context are in no sense “noneconomic.” Ante, at 27 (opinion of GORSUCH, J.). Regulations that “aggravate . . . the problem of highway accidents,” Kassel, 450 U. S., at 674, or “slow the movement of goods,” Rice, 434 U. S., at 445, impose economic burdens, even if those burdens may be difficult to quantify and may not arise immediately. Our cases provide no license to chalk up every economic harm—no matter how derivative—to a mere cost of compliance.
Nor can the foregoing cases be dismissed because they either involved the instrumentalities of transportation or a state law born of discriminatory purpose. As discussed above, we have applied Pike to state laws that neither concerned transportation nor discriminated against commerce. See Edgar, 457 U. S., at 643-646. The Pike balance may well come out differently when it comes to interstate transportation, an area presenting a strong interest in “national uniformity.” Tracy, 519 U. S., at 298, n. 12. But the error below does not concern a particular balancing of interests under Pike; it concerns how to analyze the burden on interstate commerce in the first place.
B
As in our prior cases, petitioners here allege both compliance costs and consequential harms to the interstate market. With respect to compliance costs, petitioners allege that Proposition 12 demands significant capital expenditures for farmers who wish to sell into California. “Producers . . . will need to spend” between $290 and $348 million “of additional capital in order to reconstruct their sow housing and overcome the productivity loss that Proposition 12 imposes.” App. to Pet. for Cert. 214a. All told, compliance
Separate and apart from those costs, petitioners assert harms to the interstate market itself. The complaint alleges that the interstate pork market is so interconnected that producers will be “forced to comply” with Proposition 12, “even though some or even most of the cuts from a hog are sold in other States.” Id., at 213a; id., at 239a. Proposition 12 may not expressly regulate farmers operating out of State. But due to the nature of the national pork market, California has enacted rules that carry implications for producers as far flung as Indiana and North Carolina, whether or not they sell in California. The panel below acknowledged petitioners’ allegation that, “[a]s a practical matter, given the interconnected nature of the nationwide pork industry, all or most hog farmers will be forced to comply with California requirements.” 6 F. 4th, at 1028.
We have found such sweeping extraterritorial effects, even if not considered as a per se invalidation, to be pertinent in applying Pike. In Edgar, we assessed the constitutionality of an Illinois corporate takeover statute that authorized the secretary of state to scrutinize tender offers, even for transactions occurring wholly beyond the State‘s borders. As the majority explains, only a plurality of the Court in Edgar concluded that the Illinois statute constituted a per se violation of the dormant Commerce Clause. See ante, at 14, n. 1. But a majority in Edgar analyzed those same extraterritorial effects under our approach in Pike, concluding that the “nationwide reach” of Illinois‘s law constituted an “obvious burden . . . on interstate commerce.” 457 U. S., at 643. The Ninth Circuit did not consider whether, by effectively requiring compliance by farmers who do not even wish to ship their product into California, Proposition 12 has a “nationwide reach” similar to the regulation at issue in Edgar.
The complaint further alleges other harms that cannot
Writing for a plurality of the Court, JUSTICE GORSUCH relies on this Court‘s decision in Exxon Corp. v. Governor of Maryland, 437 U. S. 117 (1978), to conclude that petitioners’ complaint does not plead a substantial burden against interstate commerce. See ante, at 21–25; see also ante, at 3 (opinion of SOTOMAYOR, J.) (also relying on Exxon). In Exxon, petroleum producers sued after Maryland prohibited their sale of retail gas within the State. 437 U. S., at 119. The Court concluded that “interstate commerce is not subjected to an impermissible burden simply because an otherwise valid regulation causes some business[es] to shift from one interstate supplier to another.” Id., at 127. Fair enough. But the complaint before us pleads facts going far beyond the allegations in Exxon. The producers in Exxon operated within Maryland and wished to continue doing so. By contrast, petitioners here allege that Proposition 12 will force compliance on farmers who do not wish to sell into the California market, exacerbate health issues in the national pig population, and undercut established operational practices. In my view, these allegations amount to economic harms against “the interstate market“—not just “particular
JUSTICE GORSUCH asks what separates my approach from the per se extraterritoriality rule I reject. Ante, at 25. It is the difference between mere cross-border effects and broad impact requiring, in this case, compliance even by producers who do not wish to sell in the regulated market. And even then, we only invalidate a regulation if that burden proves “clearly excessive in relation to the putative local benefits.” Pike, 397 U. S., at 142. Adhering to that established approach in this case would not convert the inquiry into a per se rule against extraterritorial regulation.
Rather than analyze petitioners’ alleged harms to the interstate market on their own terms, the Ninth Circuit reasoned that the “crux” of the complaint is “the cost of compliance with Proposition 12.” 6 F. 4th, at 1033. Such “cost increases,” the panel below concluded, “do not qualify as a substantial burden to interstate commerce.” Ibid. Those statements ignore the industry-wide harms discussed above.
The panel below itself recognized that petitioners “plausibly alleged that Proposition 12 will have dramatic upstream effects and require pervasive changes to the pork production industry nationwide.” Ibid. Yet it nevertheless reduced the myriad harms detailed by petitioners in their complaint to so-called “compliance costs” and wrote them off as independently insufficient to state a claim under Pike. Our precedents do not support such an approach. A majority of the Court agrees that—were it possible to balance benefits and burdens in this context—petitioners have plausibly stated a substantial burden against interstate
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In my view, petitioners plausibly allege a substantial burden against interstate commerce. I would therefore remand the case for the Ninth Circuit to decide whether it is plausible that the “burden . . . is clearly excessive in relation to the putative local benefits.” Pike, 397 U. S., at 142.
In today‘s fractured decision, six Justices of this Court affirmatively retain the longstanding Pike balancing test for analyzing dormant Commerce Clause challenges to state economic regulations. Ante, at 1 (SOTOMAYOR, J., joined by KAGAN, J., concurring in part); ante, at 2-3 (ROBERTS, C. J., joined by ALITO, KAVANAUGH, and JACKSON, JJ., concurring in part and dissenting in part); see Pike v. Bruce Church, Inc., 397 U.S. 137 (1970). Although Parts IV-B and IV-D of JUSTICE GORSUCH‘S opinion would essentially overrule the Pike balancing test, those subsections are not controlling precedent, as I understand it.
But Part IV-C of JUSTICE GORSUCH‘s opinion is controlling precedent for purposes of the Court‘s judgment as to the plaintiffs’ Pike claim. There, a four-Justice plurality of the Court applies Pike and rejects the plaintiffs’ dormant Commerce Clause challenge under Pike. The plurality reasons that the plaintiffs’ complaint did not sufficiently allege that the California law at issue here imposed a substantial burden on interstate commerce
I add this opinion to point out that state economic regulations like California‘s Proposition 12 may raise questions not only under the Commerce Clause, but also under the Import-Export Clause, the Privileges and Immunities Clause, and the Full Faith and Credit Clause.
I
In the 1780s, the Framers in Philadelphia and the people of the United States discarded the Articles of Confederation and adopted a new Constitution. They did so in order to, among other things, create a national economic market and overcome state restrictions on free trade—and thereby promote the general welfare. By the summer of 1787, when the delegates met in Philadelphia, state interference with interstate commerce was cutting off the lifeblood of the Nation. See Tennessee Wine and Spirits Retailers Assn. v. Thomas, 588 U. S. ___ (2019) (slip op., at 7). For the delegates, therefore, “removing state trade barriers was a principal reason for the adoption of the Constitution.” Ibid. In the state ratifying conventions, moreover, “fostering free trade among the States was prominently cited as a reason for ratification.” Id., at ___ (slip op., at 8).
The Constitution crafted by the Framers contains several provisions protecting free trade among the States. The Constitution‘s protection of free trade among the States has resulted in an extraordinary 234-year record of progress: It has facilitated robust economic activity within the United States and has helped generate remarkable (albeit at times uneven) economic prosperity and growth in America relative to the other nations of the world.
This case involves the American pork industry, which
In 2018, California voters nonetheless passed a ballot initiative, Proposition 12, that not only regulates pig farming and pork production in California, but also in effect regulates pig farming and pork production throughout the United States. Under Proposition 12, all pork sold to consumers in California must be derived from pigs raised in compliance with California‘s strict standards for pig farming, including California‘s minimum square footage of space required for housing individual pigs. By its terms, Proposition 12 applies to pigs raised and pork produced outside California.
California‘s requirements for pig farms and pork production depart significantly from common agricultural practices that are lawful in major pig-farming and pork-producing States such as Iowa, Minnesota, Illinois, Indiana, and North Carolina. See Brief for Indiana et al. as Amici Curiae 24–32. Moreover, according to various amici, some of the scientific literature suggests that California‘s requirements could worsen animal health and welfare. See, e.g., Brief for American Association of Swine Veterinarians as Amicus Curiae 4–19; Brief for State Pork Producers Association of Iowa et al. as Amici Curiae 25-34. Regardless of whether the amici are correct on that point, it is evident that absent California‘s Proposition 12, relatively few pig farmers and pork producers in the United States would follow the practices that California now demands. Yet American pig farmers and pork producers have little choice but to comply with California‘s regulatory dictates. It would be prohibitively expensive and
California‘s required changes to pig-farming and pork-production practices throughout the United States will cost American farmers and pork producers hundreds of millions (if not billions) of dollars. And those costs for pig farmers and pork producers will be passed on, in many cases, to American consumers of pork via higher pork prices nationwide. The increased costs may also result in lower wages and reduced benefits (or layoffs) for the American workers who work on pig farms and in meatpacking plants. See generally Brief for Indiana et al. as Amici Curiae 29–32; Brief for North Carolina Chamber Legal Institute et al. as Amici Curiae 9-13.2
In short, through Proposition 12, California is forcing massive changes to pig-farming and pork-production practices throughout the United States. Proposition 12 therefore substantially burdens the interstate pork market. See ante, at 6-10 (opinion of ROBERTS, C. J.).
Under the Constitution, Congress could enact a national law imposing minimum space requirements or other regulations on pig farms involved in the interstate pork market. In the absence of action by Congress, each State may of course adopt health and safety regulations for products sold in that State. And each State may regulate
Notably, future state laws of this kind might not be confined to the pork industry. As the amici brief of 26 States points out, what if a state law prohibits the sale of fruit picked by noncitizens who are unlawfully in the country? Brief for Indiana et al. as Amici Curiae 33. What if a state law prohibits the sale of goods produced by workers paid less than $20 per hour? Or as those States suggest, what if a state law prohibits “the retail sale of goods from producers that do not pay for employees’ birth control or abortions” (or alternatively, that do pay for employees’ birth control or abortions)? Ibid.
If upheld against all constitutional challenges, California‘s novel and far-reaching regulation could provide a blueprint for other States. California‘s law thus may foreshadow a new era where States shutter their markets to goods produced in a way that offends their moral or policy preferences—and in doing so, effectively force other States to regulate in accordance with those idiosyncratic state demands. That is not the Constitution the Framers
II
Thus far, legal challenges to California‘s Proposition 12 have focused on the Commerce Clause and this Court‘s dormant Commerce Clause precedents.
Although the Court today rejects the plaintiffs’ dormant Commerce Clause challenge as insufficiently pled, state laws like Proposition 12 implicate not only the Commerce Clause, but also potentially several other constitutional provisions, including the Import-Export Clause, the Privileges and Immunities Clause, and the Full Faith and Credit Clause.
First, the Import-Export Clause prohibits any State, absent “the Consent of the Congress,” from imposing “any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing” its “inspection Laws.”
In other words, if one State conditions sale of a good on the use of preferred farming, manufacturing, or production practices in another State where the good was grown or made, serious questions may arise under the Import-Export Clause. I do not take a position here on whether such an argument ultimately would prevail. I note only that the question warrants additional consideration in a future case.
Second, the Privileges and Immunities Clause provides that the “Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several States.”
Third, the Full Faith and Credit Clause requires each State to afford “Full Faith and Credit” to the “public Acts” of “every other State.”
For example, the plaintiffs in this case say that Ohio law expressly authorizes pig farmers in Ohio to do precisely what California‘s Proposition 12 forbids. Brief for Petitioners 30-31; see
Once again, I express no view on whether such an argument ultimately would succeed. But the question deserves further examination in a future case.
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As I understand it, the controlling plurality of the Court (reflected in Part IV-C of JUSTICE GORSUCH‘s opinion) today rejects the plaintiffs’ dormant Commerce Clause challenge on the ground that the plaintiffs’ complaint does not sufficiently allege that the California law at issue here imposes a substantial burden on interstate commerce under Pike. See ante, at 21–25 (plurality opinion); ante, at 1-3 (opinion of SOTOMAYOR, J.). It appears, therefore, that properly pled dormant Commerce Clause challenges under Pike to laws like California‘s Proposition 12 (or even to Proposition 12 itself) could succeed in the future or at least survive past the motion-to-dismiss stage. Regardless, it will be important in future cases to consider that state laws like Proposition 12 also may raise substantial constitutional questions under the Import-Export Clause, the Privileges and Immunities Clause, and the Full Faith and Credit Clause.
