Opinion · Supreme Court of the United States

44 Liquormart, Inc. v. Rhode Island

517 U.S. 484

Type
Opinion
Court
Supreme Court of the United States
Jurisdiction
Federal
Date
1996-05-13
Topic
general

How later courts describe this case

  • ruling that a state ban on liquor price advertising infringed free speech protected by the First Amendment
  • holding that a state violated the First Amendment “as made applicable to the States by the Due Process Clause of the Fourteenth Amendment”
  • holding that the Twenty-first Amendment does not grant the states authority to regulate in violation of the First Amendment
  • holding that a ban on advertising the alcohol content of malt beverages violated the First Amendment
  • recognizing that restrictions of similar categories of expression are not necessarily subject to a similar form of review
  • holding that government bears the burden of showing the restriction is narrowly tailored and justified by the interest asserted
  • concluding that a regulation failed the third Central Hudson prong where the state “presented no evidence to suggest” that it would materially advance the state’s goal
  • holding complete ban on commercial speech analyzed under stricter scrutiny rather than as a time, place, or manner restriction

Citator

44 Liquormart, Inc. v. Rhode Island has been questioned or limited by later authorities: relies on overruled authority: 34 L. Ed. 2d 342 (overruled by 44 Liquormart, Inc. v. Rhode Island, 517 U.S. 484 (1996)). Read them before relying on it. 680 later decisions cite it.

Authority status
caution
Cited by
680 opinions

Headnotes

  1. Constitutional Law — Commercial Speech The First Amendment protects the dissemination of truthful, nonmisleading commercial messages about lawful products and services, in order to ensure that consumers receive accurate information. Virginia Bd. of Pharmacy v. Virginia Citizens Consumer Council, Inc., 425 U.S. 748, 765
  2. Constitutional Law — Commercial Speech The "commonsense differences" between commercial speech and other protected expression—its greater objectivity and greater hardiness—justify affording the State more freedom to regulate potentially deceptive or overreaching advertising than other forms of protected speech, and authorize less than strict review of such regulations. Virginia Bd. of Pharmacy, 425 U.S. at 771-772, n. 24
  3. Constitutional Law — Commercial Speech The State may require commercial messages to include such additional information, warnings, and disclaimers as are necessary to prevent deception, and may restrict forms of aggressive sales practices that have the potential to exert undue influence over consumers. Virginia Bd. of Pharmacy, 425 U.S. at 772, n. 24; Bates v. State Bar of Ariz., 433 U.S. 350, 366
  4. Constitutional Law — Commercial Speech The State's power to regulate commercial transactions justifies its concomitant power to regulate commercial speech that is linked inextricably to those transactions. Friedman v. Rogers, 440 U.S. 1, 10, n. 9; Ohralik v. Ohio State Bar Assn., 436 U.S. 447, 456
  5. Constitutional Law — Commercial Speech The State retains less regulatory authority when its commercial speech restrictions strike at the substance of the information communicated rather than at the commercial aspect of offers to offerees. Linmark Associates, Inc. v. Willingboro, 431 U.S. 85, 96; Carey v. Population Services Int'l, 431 U.S. 678, 701, n. 28
  6. Constitutional Law — Commercial Speech Regulations that entirely suppress commercial speech in order to pursue a policy unrelated to consumer protection must be reviewed with "special care," and blanket bans on commercial speech should not be approved unless the expression itself was flawed—either because it was deceptive or related to unlawful activity. Central Hudson Gas & Elec. Corp. v. Public Serv. Comm'n of N.Y., 447 U.S. 557, 566, n. 9
  7. Constitutional Law — Commercial Speech A party seeking to uphold a restriction on commercial speech carries the burden of justifying it, and more than a rational basis is required; the State must demonstrate a reasonable fit between its policy objectives and its chosen means. 44 Liquormart, Inc. v. Racine, 829 F. Supp. 543, 555
  8. Constitutional Law — Twenty-First Amendment The Twenty-first Amendment limits the effect of the dormant Commerce Clause on a State's regulatory power over the delivery or use of intoxicating beverages within its borders, but it does not license the States to ignore their obligations under other provisions of the Constitution. Capital Cities Cable, Inc. v. Crisp, 467 U.S. 691, 712
  9. Constitutional Law — Twenty-First Amendment The Twenty-first Amendment does not qualify the constitutional prohibition against laws abridging the freedom of speech embodied in the First Amendment, and it neither shifts nor diminishes the burden on the party seeking to uphold a restriction on commercial speech. Capital Cities Cable, 467 U.S. at 712; Craig v. Boren, 429 U.S. 190, 209
  10. Constitutional Law — Twenty-First Amendment Although the Twenty-first Amendment gives statutes regulating alcohol an added presumption of validity, that presumption cannot save a regulation that otherwise fails First Amendment scrutiny, and the reasoning of California v. LaRue, 409 U.S. 109, 118-119, insofar as it relied on the Twenty-first Amendment, is disavowed. SS Liquor Mart, Inc. v. Pastore, 497 A.2d 729, 732; California v. LaRue, 409 U.S. 109, 118-119 (disavowed in part)
  11. Constitutional Law — Twenty-First Amendment The Twenty-first Amendment does not diminish the force of the Supremacy Clause, the Establishment Clause, or the Equal Protection Clause. California Retail Liquor Dealers Assn. v. Midcal Aluminum, Inc., 445 U.S. 97, 112-114; Larkin v. Grendel's Den, Inc., 459 U.S. 116, 122, n. 5; Craig v. Boren, 429 U.S. 190, 209
  12. Constitutional Law — First Amendment Generally The choice between the dangers of suppressing truthful information and the dangers of its misuse if freely available is one that the First Amendment makes for the government, not legislatures or courts; a State's paternalistic assumption that the public will use truthful, nonmisleading commercial information unwisely cannot justify suppression of that information. Virginia Bd. of Pharmacy, 425 U.S. at 768-770
  13. Constitutional Law — First Amendment Generally The free flow of commercial information is indispensable to intelligent and well-informed private economic decisions in a predominantly free enterprise economy; the general rule is that the speaker and the audience, not the government, assess the value of the information presented. Virginia Bd. of Pharmacy, 425 U.S. at 765; Edenfield v. Fane, 507 U.S. 761, 767
  14. Constitutional Law — Commercial Speech A State may not keep the public in ignorance of the entirely lawful terms that competing sellers offer, even to protect citizens from assumed irresponsible choices; the State is free to require professional standards and to subsidize or otherwise protect sellers from competition, but it may not do so by suppressing accurate commercial information. Virginia Bd. of Pharmacy, 425 U.S. at 769-770
  15. Constitutional Law — Commercial Speech Commercial speech does not lose First Amendment protection merely because it proposes a commercial transaction, and the fact that messages propose commercial transactions does not in itself dictate the constitutional analysis applicable to decisions to suppress them. Virginia Bd. of Pharmacy, 425 U.S. at 762; Rubin v. Coors Brewing Co., 514 U.S. 476, 491-494 (Stevens, J., concurring in judgment)
  16. Constitutional Law — Commercial Speech Regulations of commercial messages that protect consumers from misleading, deceptive, or aggressive sales practices, or that require disclosure of beneficial consumer information, justify less than strict review because their purpose is consistent with the reasons for according constitutional protection to commercial speech.
  17. Constitutional Law — Commercial Speech Where a State entirely prohibits dissemination of truthful, nonmisleading commercial messages for reasons unrelated to preservation of a fair bargaining process, there is far less reason to depart from the rigorous review the First Amendment generally demands; complete bans are particularly dangerous because they all but foreclose alternative channels of communication, and the special dangers of such bans cannot be explained away by "commonsense distinctions" between commercial and noncommercial speech. Virginia Bd. of Pharmacy, 425 U.S. at 771, n. 24; Linmark, 431 U.S. at 92-94; Central Hudson, 447 U.S. at 566, n. 9
  18. Constitutional Law — Commercial Speech The "greater objectivity" and "greater hardiness" of truthful, nonmisleading commercial speech do not justify reviewing its complete suppression with added deference, and regulations that suppress the truth are no less troubling because they target objectively verifiable information or because they aim at durable messages.
  19. Constitutional Law — Commercial Speech The State's authority to regulate commercial speech more freely rests on its interest in protecting consumers from commercial harms; bans targeting truthful, nonmisleading commercial messages rarely protect consumers from such harms and usually rest solely on the offensive assumption that the public will respond irrationally to the truth. Cincinnati v. Discovery Network, Inc., 507 U.S. 410, 426
  20. Constitutional Law — First Amendment Generally The First Amendment directs especial skepticism of regulations that seek to keep people in the dark for what the government perceives to be their own good, and that teaching applies equally to state attempts to deprive consumers of accurate information about their chosen products. Linmark, 431 U.S. at 96; Edenfield, 507 U.S. at 767
  21. Constitutional Law — First Amendment Generally The remedy for speech believed harmful is more speech, not enforced silence; only an emergency can justify repression, and a State may use financial incentives or counterspeech, rather than speech restrictions, to advance its interests. Whitney v. California, 274 U.S. 357, 377 (Brandeis, J., concurring); Linmark, 431 U.S. at 97
  22. Constitutional Law — Commercial Speech Under the Central Hudson test, a court first determines whether the speech concerns lawful activity and is not misleading and whether the asserted governmental interest is substantial; if both inquiries yield positive answers, the court then determines whether the regulation directly advances the governmental interest asserted and whether it is not more extensive than necessary to serve that interest. Central Hudson Gas & Elec. Corp. v. Public Serv. Comm'n of N.Y., 447 U.S. 557, 566
  23. Constitutional Law — Commercial Speech A commercial speech regulation may not be sustained if it provides only ineffective or remote support for the government's purpose; the State bears the burden of showing not merely that its regulation will advance its interest, but that it will do so to a material degree, and that showing cannot rest on speculation or conjecture. Central Hudson, 447 U.S. at 564; Edenfield, 507 U.S. at 770-771
  24. Constitutional Law — Commercial Speech A commercial speech regulation satisfies the fourth prong of the Central Hudson test only if there is a reasonable fit between the legislature's goal and the method chosen, the scope of the restriction is in proportion to the interest served, and the State has made a careful calculation of the costs and benefits associated with the burden on speech; the State need not employ the least restrictive means, but the availability of less burdensome alternatives that would more effectively achieve the goal signals that the fit is too imprecise to withstand First Amendment scrutiny. Board of Trustees of State Univ. of N.Y. v. Fox, 492 U.S. 469, 480; Florida Bar v. Went For It, Inc., 515 U.S. 618, 632-634; Cincinnati v. Discovery Network, Inc., 507 U.S. 410, 417 & n.13; Rubin v. Coors Brewing Co., 514 U.S. 476, 486-487
  25. Constitutional Law — Commercial Speech A price-advertising ban justified by the goal of keeping alcohol prices high to keep consumption low lacks a reasonable fit between the legislature's goal and method where the State could instead establish minimum prices, increase sales taxes on alcoholic beverages, limit per capita purchases, or conduct educational campaigns—alternatives that would more directly and effectively accomplish the goal at relatively small additional administrative cost without intruding on sellers' ability to provide truthful, nonmisleading information to customers. Fox, 492 U.S. at 480; 829 F. Supp. at 549; 39 F.3d 5, 7 (CA1 1994)
  26. Constitutional Law — Commercial Speech The Twenty-first Amendment's "greater-includes-the-lesser" reasoning—that a State's power to ban the sale of liquor entirely necessarily includes the lesser power to ban advertising of liquor—is rejected; banning speech may prove far more intrusive than banning conduct, and the First Amendment presumes that attempts to regulate speech are more dangerous than attempts to regulate conduct. Posadas de Puerto Rico Associates v. Tourism Co. of P.R., 478 U.S. 328, 345-346 (rejected); Rubin v. Coors Brewing Co., 514 U.S. 476, 483, n. 2
  27. Constitutional Law — First Amendment Generally It is inconsistent with First Amendment doctrine to hold that words are necessarily less vital to freedom than actions, or that the power to prohibit an activity is necessarily greater than the power to suppress speech about it; speech restrictions cannot be treated as simply another means to achieve governmental ends.
  28. Constitutional Law — Commercial Speech Since Virginia Board of Pharmacy, the Court's decisions have drawn a distinction in kind between a State's regulation of the sale of goods and its regulation of accurate information about those goods; that distinction is incompatible with the view that the State may ban commercial speech simply because it may constitutionally prohibit the underlying conduct. Virginia Bd. of Pharmacy, 425 U.S. 748; Bates v. State Bar of Ariz., 433 U.S. 350, 355
  29. Constitutional Law — Unconstitutional Conditions Although government is under no obligation to provide a person or the public a particular benefit, the conferral of a benefit—including a license to sell liquor—may not be conditioned on the surrender of a constitutional right, and government may not deny a benefit to a person on a basis that infringes constitutionally protected interests, especially the interest in freedom of speech. Frost Trucking Co. v. Railroad Comm'n of Cal., 271 U.S. 583, 594; Perry v. Sindermann, 408 U.S. 593, 597
  30. Constitutional Law — Commercial Speech The contention that a price advertising ban should be upheld because it targets commercial speech pertaining to a "vice" activity is unpersuasive; recognizing a vice exception to First Amendment protection would either allow state legislatures to justify censorship by labeling selected lawful activities as vice or require federal courts to establish a federal common law of vice. Rubin v. Coors Brewing Co., 514 U.S. 476, 482, n. 2
  31. Constitutional Law — Twenty-First Amendment The Twenty-first Amendment repealed the Eighteenth Amendment's prohibition and, in § 2, delegated to the States the power to prohibit commerce in, or the use of, alcoholic beverages, creating an exception to the normal operation of the Commerce Clause; neither its text nor its history, however, suggests that it qualifies individual rights protected by the Bill of Rights and the Fourteenth Amendment where the sale or use of liquor is concerned. Craig v. Boren, 429 U.S. 190, 206; Ziffrin, Inc. v. Reeves, 308 U.S. 132, 138
  32. Constitutional Law — First Amendment Generally Entirely apart from the Twenty-first Amendment, a State has ample power under its inherent police powers to prohibit the sale of alcoholic beverages in inappropriate locations and to restrict bacchanalian revelries; LaRue involved the regulation of nude dancing in places where alcohol was served, not commercial speech about alcohol. Young v. American Mini Theatres, Inc., 427 U.S. 50; Barnes v. Glen Theatre, Inc., 501 U.S. 560; Rubin v. Coors Brewing Co., 514 U.S. 476, 483, n. 2
  33. Constitutional Law — First Amendment Generally The First Amendment applies to the States under the Due Process Clause of the Fourteenth Amendment. Board of Ed., Island Trees Union Free School Dist. No. 26 v. Pico, 457 U.S. 853, 855, n. 1; Grosjean v. American Press Co., 297 U.S. 233, 244; Gitlow v. New York, 268 U.S. 652, 666
  34. Constitutional Law — Commercial Speech Commercial speech about unlawful activities is not protected by the First Amendment. Pittsburgh Press Co. v. Pittsburgh Comm'n on Human Relations, 413 U.S. 376
  35. Constitutional Law — Commercial Speech A prohibition against a particular means of advertising was treated as a complete ban, and therefore subject to heightened scrutiny, because it did not leave open satisfactory alternative channels of communication. Linmark Associates, Inc. v. Willingboro, 431 U.S. 85, 92-94
  36. Constitutional Law — Commercial Speech Although the government may proscribe an entire category of speech, such as obscenity or fighting words, it may not limit the scope of its ban to speech expressing a point of view with which the government disagrees; similarly, a State could not ban only those newsracks containing certain commercial publications. R.A.V. v. St. Paul, 505 U.S. 377; Cincinnati v. Discovery Network, Inc., 507 U.S. 410, 428
  37. Constitutional Law — Commercial Speech Restrictions on price advertising and on the location of advertising are considered evidence of a Sherman Act violation. Business Electronics Corp. v. Sharp Electronics Corp., 485 U.S. 717, 735; United States v. Sealy, Inc., 388 U.S. 350, 355; Blackburn v. Sweeney, 53 F.3d 825, 828 (CA7 1995)
  38. Constitutional Law — Commercial Speech Evidence that sellers would realize a benefit from lifting a price-advertising ban, or that people budget amounts for alcohol, shows only that sellers will compete more effectively for existing consumers and that consumers will seek cheaper products; it does not show that overall consumption or the amount budgeted for alcohol will increase or remain fixed in the face of a marketwide price increase. 39 F.3d 5, 7 (CA1 1994); App. 47
  39. Constitutional Law — Commercial Speech Outside the First Amendment context, the Supreme Court has refused to uphold alcohol advertising restrictions premised on speculative assertions about their impact on consumption, holding such restrictions pre-empted by federal regulations or violative of the Sherman Act. Capital Cities Cable, Inc. v. Crisp, 467 U.S. 691, 715-716; California Retail Liquor Dealers Assn. v. Midcal Aluminum, Inc., 445 U.S. 97
  40. Constitutional Law — First Amendment Generally Where the core offense of suppressing particular political ideas is not at issue, guidance as to what the Constitution forbids is to be taken from the long accepted practices of the American people, and state legislative practices prevalent at the time of the adoption of the First and Fourteenth Amendments are relevant to that inquiry. McIntyre v. Ohio Elections Comm'n, 514 U.S. 334, 375 (Scalia, J., dissenting)
  41. Constitutional Law — First Amendment Generally Although it is paternalism for courts to prevent the people of the States from enacting laws the Court considers paternalistic unless there is good reason to believe the Constitution itself forbids them, governmental paternalism that prevents people from hearing facts potentially harmful to them is disfavored.
  42. Constitutional Law — Commercial Speech An asserted governmental interest is per se illegitimate, and can no more justify regulation of commercial speech than of noncommercial speech, where its object is to keep legal users of a product or service ignorant in order to manipulate their choices in the marketplace; in such cases the Central Hudson balancing test should not be applied. Cf. Virginia Bd. of Pharmacy, 425 U.S. 748, 768-770
  43. Constitutional Law — Commercial Speech A consumer's interest in the free flow of commercial information may be as keen as, or keener than, his interest in the day's most urgent political debate, and the proper allocation of resources in the free enterprise system requires that consumer decisions be intelligent and well informed. Virginia Bd. of Pharmacy, 425 U.S. at 763, 765
  44. Constitutional Law — Commercial Speech False or misleading commercial advertising is not protected by the First Amendment, nor is advertising that proposes an illegal transaction. Virginia Bd. of Pharmacy, 425 U.S. at 771 & n. 24, 772-773 (distinguishing Pittsburgh Press, 413 U.S. 376)
  45. Constitutional Law — Commercial Speech Commercial speech is entitled to no less First Amendment protection on the theory that it occupies a subordinate position in the scale of First Amendment values; that assertion has been rejected because the distinction between commercial and noncommercial speech has not been shown to justify added deference to its suppression. Cincinnati v. Discovery Network, Inc., 507 U.S. 410, 418-419, 431 (Blackmun, J., concurring)
  46. Constitutional Law — First Amendment Generally Freedom of the press does not prevent Congress from prohibiting circulation of newspapers containing lottery advertisements. In re Rapier, 143 U.S. 110, 134-135; Lewis Publishing Co. v. Morgan, 229 U.S. 288, 315
  47. Constitutional Law — Commercial Speech In Posadas and Edge Broadcasting, the Court presumed that advertising of a product leads to increased consumption and upheld restrictions on the view that the government may suppress information to discourage consumption; since Posadas, however, the Court has examined more searchingly the State's professed goal and the speech restriction enacted to further it, declining to accept at face value the proffered justification and instead examining carefully the relationship between the asserted goal and the speech restriction. Posadas, 478 U.S. at 341-344; United States v. Edge Broadcasting Co., 509 U.S. 418, 425, 433-434
  48. Constitutional Law — Commercial Speech The rationale of Posadas—that it is "up to the legislature" to choose to reduce gambling by suppressing in-state casino advertising rather than by educational speech, and that the greater power to ban conduct includes the lesser power to ban advertising of it—is erroneous as a matter of First Amendment analysis and is disavowed. Posadas, 478 U.S. at 344-346 (disavowed in part)
  49. Constitutional Law — Commercial Speech In Edge Broadcasting, the Court upheld a federal statute permitting only broadcasters located in States that had legalized lotteries to air lottery advertising, where the statute regulated advertising about an activity deemed illegal in the jurisdiction in which the broadcaster was located. United States v. Edge Broadcasting Co., 509 U.S. 418, 433-434
  50. Constitutional Law — Commercial Speech Neither the "greater objectivity" rationale nor the profit-motive "hardiness" rationale provides any basis for permitting government to keep citizens ignorant as a means of manipulating their choices in the commercial or political marketplace, and the Central Hudson balancing test is difficult to apply uniformly because it invites judges to weigh incommensurables and to apply contradictory premises about whether informed adults are the best judges of their own interests. Central Hudson, 447 U.S. at 564, n. 6
  51. Constitutional Law — Commercial Speech The State's power to restrict dissemination of information about constitutionally protected items, in order to dampen demand for them, is no more extensive than its power to restrict advertising of items that are not constitutionally protected; a State seeking to dampen its citizens' consumption of products or services outside its borders has no option of direct regulation. Cf. Bigelow v. Virginia, 421 U.S. 809, 822
  52. Constitutional Law — Commercial Speech A State's price-advertising ban on alcoholic beverages fails even the less than strict standard generally applicable in commercial speech cases: even assuming the ban directly advances the State's substantial interest in temperance, it fails the final prong because it is more extensive than necessary to serve that interest, leaving no channel at all for sellers to publicize their prices except at the point of purchase. Central Hudson, 447 U.S. at 566; Fox, 492 U.S. at 480; 39 F.3d 5, 7 (CA1 1994)
  53. Constitutional Law — Twenty-First Amendment Nothing in the text or history of the Twenty-first Amendment justifies its use to alter the application of the First Amendment; the Amendment does not trump First Amendment rights or add a presumption of validity to a regulation that cannot otherwise satisfy First Amendment requirements. Capital Cities Cable, 467 U.S. at 712; Craig, 429 U.S. at 206; Larkin, 459 U.S. at 122, n. 5
  54. Constitutional Law — First Amendment Generally A State may not seek to reduce consumption of a lawful product by increasing its price through a ban on price advertising where that means deprives the public of its chief source of information about the prevailing price level; the State may not justify a speech restriction on the sole ground that it targets commercial speech. Cincinnati v. Discovery Network, Inc., 507 U.S. 410, 428