Lead Opinion
OPINION OF THE COURT
The issue in this case is whether a county may ban all
The facts are not in dispute. Defendant, Mobil Oil Cоrporation, was found guilty of violating section 3 of Local Law No. 9 of the Local Laws of 1974 of the County of Westchester because it posted at its gasoline station and car wash in Tuckahoe along the curb side of the station premises, facing in opposite directions, so that the large lettering of the signs could be seen by passing motorists, two signs, approximately four feet by four feet in size and reading "Check Our Low Low Low Prices”. Mobil conceded that the purpose of the signs was "to attract persons to the gas pumps as well as the car wash”. On appeal, the Appellatе Term reversed on the law and dismissed, two Judges holding section 3 unconstitutional, and the third being of the opinion that the sign did not violate the ordinance.
Local Law No. 9 in its first two sections details specifications as to size, lettering, content, placement and visibility of price signs it requires to be posted on each individual pump from which gasoline or diesel fuel is sold. Sections 3 and 4 of the law then provide:
"Section 3. No sign or placard stating or referring directly or indirectly to the price or prices of gasoline or diesel motorfuel other than such signs or placards as hereinabove provided shall be posted or maintained on, at, near or about the premises on which said gasoline is sold or offered for sale.
"Section 4. Fraudulent Practices. It shall be unlawful for any person, firm or corporation to sell or offer for sale gasoline or diesel motor fuel in any manner so as to deceive or tend to deceive the purchaser as to the price, nature, quality or identify thereof.”
Violation of the law is an offense punishable by fine, each day of noncompliance after a notice of violation constituting a separate offense.
In People v Arlen Serv. Stas. (
Since the Virginia Pharmacy case was decided we have had two occasions to consider regulations of commercial speech (People v Remeny,
The first of those decisions, Linmark, held invalid an ordinance proscribing, in an effort to stem white flight from a racially integrated community, the posting of "for sale” or "sold” signs on all but model homes. The Supremе Court held that the fact that the ordinance restricted only one method of communications (signs) did not save it because, though other alternative methods of selling houses were theoretically available, real estate is not marketed through leaflets or sound trucks and other available media involved greater cost and less autonomy (and consequently less effectiveness) than a sign in front of the house to be sold, and because having prohibited but one type of lawn sign it had not been enacted to protect aesthetic values. Concluding that the township’s interest was in regulating content rather than time, place and manner of posting and was not in preventing deception, the court struck the ordinance down because Willingboro had failed to establish that content regulation was needed to assure that the community remained integrated.
The Bates decision is particularly pertinent because it held
Friedman, the most recent decision of the Supreme Court on the subject, upheld a Texas act prohibiting the practice of optometry under a trade name. Noting that use of a trade name conveyed no information about price or the nature of the services offered and presented numerous possibilities for deception with which the Texas Legislature was familiar, which had been reviewed in an earlier Texas Supreme Court decision, and some of which had been substantiated as to Rogers, one of the plaintiffs in the Freidman case, by deposition testimony, the Supreme Court stated that "Even if Rogers’ use and advertising оf the trade name were not in fact misleading, they were an example of the use of a trade name to facilitate the large-scale commercialization which enhances the opportunity for misleading practices” (
Against this background we consider the arguments advanced by the parties. Mobil’s position is that Westchester’s
In light of the holding in Bates (
The inquiry does not end there, however, for the law in question must be interpreted under applicable State law principles of statutory construction, and under those principles section 3 must be held to be addressed only to truthful speech. So interpreted the section cannot constitutionally be applied to proscribe defendant Mobil’s signs.
It is a well-settled principle of statutory construction that a statute or ordinance must be construed as a whole and that its various sections must be considered together and with reference to each other (Abood v Hospital Ambulance Serv.,
When sections 3 and 4 are considered together and together with section 5 (which makes violation of either
With respect to the instant prosecution, therefore, there is no overbreadth problem, for section 3, as it must be construed, ,is being unconstitutionally applied to Mobil to proscribe truthful commercial speech. Unless it can be justified on other grounds, or as a regulation solely of time, place or manner, or unless there are available alternate channels of communication, section 3 is, therefore, under the reasoning of the Supreme Court cases discussed above, unconstitutional as applied to defendant Mobil.
The strong societal and individual interest in the free dissemination of truthful price information as a means of assuring informed and reliable decision making in our free enterprise system was the basis for holding unconstitutional the statute involved in the Virginia Pharmacy case and the disciplinary regulation at issue in Bates, both of which were
This is not to say that price advertising can never be subjected to regulation. One valid purpose for regulation, as we held in Suffolk Outdoor Adv. Co. v Hulse (
What the county does argue is that it is only regulating the place of advertising, its purpose being to centralize the location of price information in the pump top signs by prohibiting all other competing advertising which could divert the consumer’s attention from the actual price, by insuring that the consumer’s decision is based on facts not advertising "puff”, and by eliminating thе necessity for the consumer’s driving up to the pump to learn the price. Bearing in mind that by hypothesis, this being a prosecution under section 3, we are concerned with truthful information, we think the answers to that argument are that the county has "not demonstrated that the place * * * of the speech produces a detrimental 'secondary effect’ on society” (Linmark,
Finally, the county argues that ample alternatives remain open for gasoline price advertisement through print and electronic media advertising, that no useful consumer information is withheld from the public by virtue of the law and that the advertiser does not lose access to passing motorists as potential customers. Since, as already shown, price information clearly is useful consumer information and not all passing
Accordingly, the order of the Appellate Term, as resettled, should be affirmed.
Notes
. Mindful of the rule that constitutional issues are not to be decided when there exists a nonconstitutional basis of decision, we note our disagreement with the reasoning of the concurring Judge. His concurrence was based on Matter of Great Eastern Liq. Corp. v State Liq. Anth. (
. These Supreme Court decisions have given rise to a substantial number of scholarly articles and comments. (See, e.g., Rotunda, Commercial Speech Doctrine in the Supreme Court, 1976, U Ill L Forum 1080; Comment, First Amendment Protec
. That, as the county argues, a section 4 prosecution may require proof of intent is perhaps a pragmatic problem for the prosecution but does not indicate a legislative purpose to reach through section 3 deceitful or misleading commercial speech which is expressly proscribed by section 4.
Dissenting Opinion
(dissenting). I respectfully dissent and vote to reverse the order of Appellate Term and reinstate the judgment of Tuckahoe Village Court convicting defendant Mobil Oil Corp. of violating section 3 of Local Law No. 9 of the Local Laws of 1974 of the County of Westchester. At issue in this appeal is whether a local law which imposes reasonable restrictions upon the advertisement of gasoline prices by means of signs posted in service stations violates eithеr the free speech guarantee of the First Amendment to the United States Constitution or the due process clause of the Fourteenth Amendment. I would hold that it does not.
Local Law No. 9 constitutes an attempt to regulate the advertisement of gasoline prices so as to prevent fraudulent or deceptive sales techniques and to ensure that the consumer will receive the basic price data necessary to support an informed decision whether to purchase gasoline at a particular gasoline station. As such, it is entirely constitutional.
Although it is indeed true that commеrcial speech such as advertising is entitled to First Amendment protection, it is equally true that the degree of protection accorded commercial speech is somewhat more limited than that normally afforded more political or personal expressions (see, e.g., Virginia Pharmacy Bd. v Virginia Consumer Council,
"[C]ommercial speech may be more durable than other kinds. Since advertising is the sine qua non of commercial profits, there is little likelihood of its being chilled by proper regulation and forgone entirely.
"Attributes such as these, the greater objectivity and hardiness of commercial speech, may make it less necessary to tolerate inaccurate statements for fear of silencing the speaker. Compare New York Times Co. v. Sullivan,
Moreover, commercial speech is somewhat less directly related to the interests normally protected by the First Amendment, since it has no real connection with either the freedom of individual self-expression or that freedom of political expression which together comprise the foundation of our society and our form of government (see Jackson and Jeffries, Commercial Speech: Economiс Due Process and the First Amendment, 65 Va L Rev 1, 9-14).
The first two sections of Local Law No. 9 require any retail seller of gasoline to place upon each gasoline pump a sign
Section 3 of the local law, the section which defendant was convicted of violating, proscribes any signs concerning gasoline prices other than those prescribed by sections 1 and 2. Section 4 provides additional protection to the consumer by prohibiting any other practice which might "deceive or tend to deceive the purchaser as to the price, nature, quality or identity” of gasoline sold at a particular station. The majority of this court appears to have some difficulty in understanding the way in which these two sections supplement each other. It is actually quite simple: both are aimed at praсtices perceived by the Westchester County Legislature to be potentially deceptive. Section 3 is intended to prevent a specific evil which the Westchester County Legislature deemed to be especially troublesome: namely, the use of an overabundance of signs so as to prevent the actual reception of the necessary data by the consumer. Section 4, on the other hand, constitutes a more general proscription against deceptive conduct. It is based on legislative recognition of the unfortunate fact that "[ingenuity keeps paсe with greed” (People v Kibler,
So viewed, it is apparent that section 3 constitutionally prohibited defendant’s action in posting a sign advising passing motorists to "Check Our Low Low Low Prices”. The Supreme Court has clearly noted, time and time again, that commercial speech is entitled to a lesser degree of protection than that afforded other types of speech and may be regulated to ensure accuracy and prevent fraud (see, e.g., Virginia Pharmacy Bd. v Virginia Consumer Council,
It appears evident that the extent of permissible regulation of commercial speech will vary with such factors as the sophistication of the audience at whom the speech is aimed and the nature of the medium by which the speech is transmitted (see Bates v State Bar of Ariz.,
In reviewing the validity of a First Amendment challenge to a local law which regulates commercial speech, it is necessary first to carefully examine the nature and extent of the protections accorded commercial speech by the First Amendment. Commercial speech has been provided such protection not because it involves any political expression, nor because it is deemed to comprise a mode of self-expression, but rather because of the importance of the free flow of price information to our society. Thus, in every case in which the Supreme Court has found a regulation of commercial speech to be improper, that conclusion was premised on the fact that the regulation deemed to be invalid served to impede the flow of accurate information to the consumer. The local law at issue in this case, however, has the very opposite effect: instead of limiting information, it ensures the availability of such information in an easily understood form. Hence, it in no way
The nature of the particular marketplace in which an attempt is made to regulate commercial speech will necessarily be significant in assessing the constitutionality of such regulation. In the instant case, the validity of the challenged local law must be considered in light of the somewhat unique conditions which surround the sale of gasoline to the public. The decision to purchase gasoline at one station rather than another is often made rapidly, on the basis of information obtained from signs glimpsed only for the few moments it takes to approach a service station. Hence, there is a considerable need for such signs to simply, concisely, and accurately provide the potential consumer with the data necessary for an informed decision. Due to the limited opportunity a passing motorist has to obtain whatever information is provided on signs posted in a gasoline station, it is appropriate for the State to take reasonable steps to ensure that the requisite pricing information will not be obscured by an assortment of advertising slogans which serve only to lure the consumer into a service station without giving solid information about the price of gasoline at that station (see Friedman v Rogers,
We have recently had occasion to declare that "a particular mode of advertising which would not well serve the societal interest in informed decision making * * * may constitutionally be banned” (Matter of Consolidated Edison Co. v Public Serv. Comm.,
In sum, the section of the local law pursuant to which
As to defendant’s due process argument, it suffices to note that this court rejected the same contention in People v Arlen Serv. Stas. (
Accordingly I vote to reverse the order appealed from and to reinstate the judgment of Tuckahoe Village Court.
Judges Jasen, Jones and Fuchsberg concur with Judge Meyer; Judge Gabrielli, dissents and votes to reverse in a separate opinion in which Chief Judge Cooke and Judge Wachtler concur.
Order affirmed.
