Memorandum Opinion and Order
•In this аction, plaintiffs and plaintiff-intervenor (to whom I collectively refer as “plaintiffs” unless otherwise specified)
I.
The complaints allege the following facts, which I take as true for present purposes. In May of 2014, the City pas'sed an ordinance regulating “transportation network providers,” “transportation network vehicles,” and “transportation network drivers.” (These are the entities, vehicles, and providers of a service commonly known as'“ridesharing,” the best-known of which, as noted above, are oper
Vugo is a technology company that “operates a software-only mobile media network that allows ridesharing drivers to display advertising and other media (such as news and entertainmеnt) in their vehicles.” Am. Cmplt. at ¶ 16. To use Vugo, rideshare drivers download the Vugo “app” onto their personal tablets, then mount the tablets on a headrest of them front seats, facing the rear passengers. Id. at ¶ 20. Passengers can interact with the Vugo app during their ride, and the app displays ads based on route-specific and other individualized data. Id. at ¶¶ 22-23. Vugo earns advertising revenue for displaying the ads, a portion of which it pays to its drivers who use the app. Id. at ¶ 24.
Vugo alleges that the ordinance prevents it from operating its platform in Chicago, and the driver plaintiffs allege that it prevents them from displaying revenue-generating commercial advertisements on or in their vehicles. One driver— plaintiff, Patricia Page, alleges that after the ordinance took effect, she was ticketed for violating the commercial advertising ban because the vehicle she used as a transportation network vehicle displayed exterior advertising for her face-painting business. Am. Cmplt. at ¶ 40. All plaintiffs complain that the advertising ban violates their right to free speech and violates equal protection guarantees because drivers of taxis and ordinary passenger vehicles are not prohibited from displaying commercial advertisements.
II.
A. Plaintiffs’ Free Speech Claims
The City asserts two bases for dismissing plaintiffs’ claims under the First Amendment and Section 4 of the Illinois Constitution. First, it argues that none of the plaintiffs has standing to challenge the ordinance’s ban on interior advertising, and that only plaintiff Page has standing to challenge the exterior ad ban. Second, it argues that рlaintiffs have not stated an actionable constitutional claim under either the First or the Fourteenth Amendment.
The City’s standing argument focuses on prudential standing—a concept not derived from Article Ill’s case-or-controversy requirement and “similar to the requirement of Federal Rule of Civil Procedure 17 that every action must be prosecuted in the name of the real party in interest.” G & S Holdings LLC v. Continental Cas. Co.,
The City posits that because none of the plaintiffs (except for Page) alleges a desire “to communicate about products or services that they themselves offer for sale,” or “creates or seeks to display its own advertising content,” none has a protected First Amendment interеst in the commercial speech the ordinance prohibits. In the City’s view, plaintiffs’ interest (again with the exception of Page) is purely an economic one1-the desire to earn advertising revenue—that the First Amendment does not protect. Accordingly, the City argues, the only First Amendment interests potentially implicated by the ordinance belong to' the advertisers and cannot be vindicated in a suit brought by plaintiffs.
' The City relies heavily on The Pitt News v. Fisher,
At all events, the City cites no аuthority for the proposition that the First Amendment protects a speaker’s right to engage in commercial speech only when the speaker is the original author of the message) or when the message is about the speaker’s own product or service. If that were the rule, the plaintiffs’ claims in cases such as Metromedia, Inc. v. City of San Diego,
Clearing the standing hurdle is just a threshold step, however. To survive the City’s motion, plaintiffs must also allege plausibly that the ordinance’s restriction on commercial advertising in or on transportation network vehicles fails the test established in Central Hudson Gas & Electric Corp. v. Public Service Commission,
Constitutional protection for commercial speech is of relatively recent vintage. Until 1976, the Court “adhered to the broad rule laid out in Valentine v. Chrestensen,
In Central Hudson, the Court explained that while commercial speech, as a category, is not wholly excluded from constitutional protection, it is entitled to a lesser degree of protection than “core” First Amendment expression.
In the years since deciding Central Hudson, the Court has “engaged in considerable debate about the contours of First
Notwithstanding the Court’s ongoing adherence to Central Hudson’s intermediate scrutiny standard, plaintiffs argue that the ordinance is subjеct to strict scrutiny because it establishes content-based restrictions. Plaintiffs’ view rests on the misguided belief that restrictions on non-misleading commercial speech that does not concern unlawful activity are per se content-based, and thus subject to the higher level of scrutiny the Court applies to such restraints. Plaintiffs argue that Reed v. Town of Gilbert, Ariz., — U.S. -,
In Reed, the Supreme Court struck down a town code that distinguished among “Temporary Directional Signs” (defined as signs conveying “the message of directing the public to church or some other ‘qualifying event’ ”), “Pоlitical Signs” (“designed to influence the outcome of an election”), and “Ideological Signs” (intended to communicate “a message or ideas” not otherwise defined) among other categories, and that imposed different restrictions on each category.
In Sorrell, the Court struck down a statute enacted by the state of Vermont prohibiting the disclosure by certain healthcare entities of specific information—the prescribing practices of doctors—for marketing purposes. The Court examined the text of the statute and observed that it “gives possessors of the information broad discretion and wide latitude in • disclosing the information, while at the same time restricting the information’s use by some speakers and for some purposes, even while the State itself can use the information to counter the speech it seeks to suppress.”
The ordinance at issue in this case cannot reasonably be compared to the legislation in either Reed or Sorrell. On its face, the ordinance is a broad ban on coihmer-
For the foregoing reasons, I conclude that the ordinance must be analyzed under the Central Hudson framework and turn to the question of whether plaintiffs’ allegations and other materials I may consider at the pleadings stage establish that it satisfies that standard. As an initial matter, plaintiffs argue that whether the ordinance passes the Central Hudson test cannot be determined at the pleadings stage because the City must support its arguments with evidence. While it is true, as plaintiffs point out, that where a governmental speech restraint implicates First Amendment interests, “the State bears the burden of justifying its restrictions,” Board of Trustees of the State University of New York v. Fox,
As noted above, the first prong of the .test requires me to ascertain whether the City has a substantial interest in support of the ordinance. In this connection, the City asserts three interests: traffic safety, aesthetics, and passenger comfort. Plaintiffs concede that the first two are substantial government interests, so I need not address them further. Plaintiffs disagree, however, that the City has a substantial interest in “passenger comfort.” And while I agree with the City that even a single substantial intеrest is sufficient to satisfy the first prong of the analysis, it is not obvious that the interests plaintiffs concede support the ordinance’s provision banning interior advertising. Accordingly, I consider whether passenger comfort is indeed a substantial government interest.
The City argues that passenger comfort is a substantial interest in the context of speech directed to. a “captive audience.” Lehman v. City of Shaker Heights,
Where the City’s motion falls short, however, is on the second and third prongs of the Central Hudson analysis: whether the ordinance directly and materially advances the City’s asserted interests, and whether it is “narrowly drawn” to serve those interests. First, while I am persuaded that the City generally has an interest in protecting captive audiences from unwanted intrusion, I cannot determine from the pleadings alone that rideshare passengers are sufficiently “captive” to interior advertising to justify its wholesale ban under the ordinance. For example, the complaint describes Vugo’s app as “interactive,” which suggests that passengers may be able to turn off any messages they prefer not to see or to hear. Yet, the ordinance prohibits interior commercial advertising in all formats, regardless of how easy or difficult it may be for passengers simply to turn it off, and .thus is arguably overbroad in that respect. See Erznoznik v. City of Jacksonville,
In addition, while there is no dispute that the exterior advertising ban limits the total quantum of potentially distracting or aesthetically unpleasant advertising on the road, it is not obvious from the pleadings that the ordinance’s restrictions have a
The City relies heavily on the Court’s analysis in Metromedia, but that case was decided on cross-motions for summary judgment after “extensive discovery” and does not support dismissal here,, in the absence of a factual record.
B. Plaintiffs’ Equal Protection Claims
In Count II of their comрlaints, plaintiffs assert that the ordinance violates the equal protection principles enshrined in the federal and Illinois constitutions because it treats those “seeking to advertise in transportation network vehicles differently from people seeking to advertise in similarly situated vehicles—taxicabs.” Am. Cmplt. at 55. The City argues that economic regulations such as the ordinance are evaluated under the rational basis test, which carries a strong presumption of validity. The City cites F.C.C. v. Beach Commc’ns, Inc.,
Plaintiffs cite Police Dept. of City of Chicago v. Mosley,
The City does not appear to dispute that heightened scrutiny should apply to plaintiffs’ equal protection claim if their related free speech claim is allowed to proceed. Instead, the City assumes that plaintiffs’ First Amendment claim will not survive its motion and argues that with no protected speech interest at stake, the ordinance is subject only to rational basis review (which plaintiffs do not dispute it survives), see Reply, at 16, 17 (citing Foxxxy Ladyz Adult World, Inc. v. Vill. of Dix, Ill.,
- III.
For the foregoing reasons, the City’s motion to dismiss is denied. •
Notes
. The original plaintiff was Vugo, a technology company offering a tablet-based advertising platform that enables rideshare drivers to display location-sensitive advertisements inside their vehicles. In an amended complaint, Vugo added four individual rideshare drivers as co-plaintiffs. See DN 15, In addition, I later granted leave to intervene to anothеr ride-share driver who seeks to represent a class of similarly situated individuals. See Order of 04/25/2017, DN 23. Where clarification is necessary, I refer to the plaintiffs named in the Amended Complaint as the "original plaintiffs” and to the plaintiff-intervenor as the "intervenor.”
. Although the City does not challenge plaintiffs’ Article III standing, it is worth noting that the driver plaintiffs’ claim of an injury-in-fact resulting from the speech restraint here is arguably more compelling than the newspaper’s claim in Pitt News. In Pitt News, the challenged restraint was a statute criminalizing the conduct оf third-party advertisers, whereas here, the ordinance facially restricts the driver plaintiffs' own conduct.
. To be fair, objections to prudential standing can be waived, as noted above, and the issue does not appear to have been raised in connection with the First Amendment claims in either Lavey or AMSAT Cable. Nevertheless, it is the City that bears the burden of showing that plaintiffs' claims should be dismissed on this basis, and cases such as these, which proceeded to the merits of claims brought by plaintiffs in circumstances materially similar to thosе here, tend to, suggest the opposite.
. It is trae that Justice Breyer, in his concurring opinion in Reed, cited Sorrell for the observation that "the Court has applied the heightened ‘strict scrutiny’ standard even in cases where the less stringent 'commercial speech’ standard was appropriate.”
. The Seventh Circuit has explained that "the Constitution of the State of Illinois protects an individual's right to free speech only to the same extent that such speech is protected by the Constitution of the United States.” Trejo v. Shoben,
