Opinion · Supreme Court of the United States
Glickman v. Wileman Brothers & Elliott, Inc.
11 Fla. L. Weekly Fed. S 117
- Type
- Opinion
- Court
- Supreme Court of the United States
- Jurisdiction
- Federal
- Date
- 1997-06-25
- Topic
- general
reasoning that true compelled speech can be even more insidious than compelled funding of speech | refusing to upset "the judgment of the majority of market participants, bureaucrats, and legislators who have concluded that [collective advertising] programs are beneficial" | refusing to upset “the judgment of the majority of market participants, bureaucrats, and legislators who ,have concluded that [collective advertising] programs are beneficial” | upholding the constitutionality of a mandatory advertising fee — for peaches — against First Amendment challenge because pertinent market was comprehensively regulated | upholding the constitutionality of a mandatory advertising fee — for peaches — against First Amendment challenge because pertinent market was comprehensively regulated | characterizing Wooley as a case in which private individuals were required “to use their own property to convey an antagonistic ideological message” | upholding a statutory scheme in which advisory committees for the regulation of nectarines and peaches consisted of affected farmers | dismissing objections to advertising that suggested “‘all varieties of California fruit to be of equal quality,’” and included “‘sexually subliminal messages as evidenced by an ad depicting a young girl in a wet bathing suit’” | dismissing objections to advertising that suggested "`all varieties of California fruit to be of equal quality,' " and included "`sexually subliminal messages as evidenced by an ad depicting a young girl in a wet bathing suit' " | "The Court of Appeals fails to explain why the Central Hudson test, which involved a restriction on commercial speech, should govern a case involving the compelled funding of speech" | “The Court of Appeals fails to explain why the Central Hudson test, which involved a restriction on commercial speech, should govern a case involving the compelled funding of speech” | “Doubts concerning the policy judgments that underlie” a program requiring fruitgrowers to pay for advertising they disagree with does not “justify reliance on the First Amendment as a basis for reviewing economic regulations” | "The fact that an economic regulation may indirectly lead to a reduction in a handler's individual advertising budget does not itself amount to a restriction on speech." | “Zau-derer carries no authority for a [disclosure] mandate unrelated to the interest in avoiding misleading or incomplete commercial messages.” | For measure to pass strict scrutiny, government defending measure must present substantial supporting evidence of harm. | “Doubts con cerning the policy judgments that underlie” a program requiring fruit growers to pay for advertising they dis agree with does not “justify reliance on the First Amend ment as a basis for reviewing economic regulations” | Souter, J., dissenting, joined by Chief Justice Rehnquist, and Justices Scalia and Thomas | "Generic advertising is intended to stimulate consumer demand for an agricultural product in a regulated market. That purpose is legitimate and consistent with the regulatory goals of the overall statutory scheme." | “The fact that an economic regulation may indirectly lead to a reduction in a[n] . . . advertising budget does not itself amount to a restriction on speech.” | “Generic advertising is intended to stimulate consumer demand for an agricultural product in a regulated market. That purpose is legitimate and consistent with the regulatory goals of the overall statutory scheme” | “Generic advertising is intended to stimulate consumer demand for an agricultural product in a regulated market. That purpose is legitimate and consistent with the regulatory goals of the overall statutory scheme.” | “[O]ur cases provide affirmative support for the 24 proposition that assessments to fund a lawful collective program may sometimes be used to pay 25 for speech over the objection of some members of the group.” | “Doubts con cerning the policy judgments that underlie” a program requirin
Citator
- Authority status
- pending
- Cited by
- 160 opinions
delivered the opinion of the Court.
A number of growers, handlers, and processors of California tree fruits (respondents) brought this proceeding to challenge the validity of various regulations contained in marketing orders promulgated by the Secretary of Agriculture. The orders impose assessments on respondents that cover the expenses of administering the orders, including the cost of generic advertising of California nectarines, plums, and peaches. The question presented to us is whether the requirement that respondents finance such generic advertising
I
Congress enacted the Agricultural Marketing Agreement Act of 1937 (AMAA), ch. 296, 50 Stat. 246, as amended, 7 U. S. C. § 601 et seq., in order to establish and maintain orderly marketing conditions and fair prices for agricultural commodities. § 602(1). Marketing orders promulgated pursuant to the AMAA are a species of economic regulation that has displaced competition in a number of discrete markets; they are expressly exempted from the antitrust laws. § 608b. Collective action, rather than the aggregate consequences of independent competitive choices, characterizes these regulated markets. In order “to avoid unreasonable fluctuations in supplies and prices,” § 602(4), these orders may include mechanisms that provide a uniform price to all producers in a particular market,1 that limit the quality and the quantity of the commodity that may be marketed, §§ 608c(6)(A), (7), that determine the grade and size of the commodity, § 608c(6)(A), and that make an orderly disposition of any surplus that might depress market prices, ibid. Pursuant to the policy of collective, rather than competitive, marketing, the orders also authorize joint research and development projects, inspection procedures that ensure uniform quality, and even certain standardized packaging requirements. §§ 608c(6)(D), (H), (I). The expenses of administering such orders, including specific projects undertaken to serve the economic interests of the cooperating producers, are “paid from funds collected pursuant to the marketing order.” §§ 608c(6)(I), 610(b)(2)(ii).
Marketing orders must be approved by either two-thirds of the affected producers or by producers who market at
Among the collective activities that Congress authorized for certain specific commodities is “any form of marketing promotion including paid advertising.” 7 U. S. C. § 608c(6) (I).2 The authorized promotional activities, like the marketing orders themselves, are intended to serve the producers’ common interest in disposing of their output on favorable terms. The central message of the generic advertising at issue in this case is that “California Summer Fruits” are wholesome, delicious, and attractive to discerning shoppers. See App. 530. All of the relevant advertising, insofar as it is authorized by the statute and the Secretary’s regulations, is designed to serve the producers’ and handlers’ common interest in promoting the sale of a particular product.3
The regulations at issue in this litigation are contained in Marketing Order 916, which regulates nectarines grown in California, and Marketing Order 917, which originally regulated peaches, pears, and plums grown in California.4 A 1966 amendment to the former expressly authorized generic advertising of nectarines, see 31 Fed. Reg. 8177, and a series of amendments, beginning in 1971, to the latter authorized advertising of each of the regulated commodities, see 36 Fed. Reg. 14381 (1971); 41 Fed. Reg. 14375, 17528 (1976).5 The advertising provisions relating to pears are not now being challenged, thus we limit our discussion to generic advertising of California nectarines, plums, and peaches.
Respondent Wileman Bros. & Elliott, Inc., is a large producer of these fruits that packs and markets its own output as well as that grown by other farmers. In 1987, after encountering problems with some fruit varieties under the maturity and minimum size standards in the orders, it refused to pay its assessments and filed a petition with the Secretary challenging those standards. In 1988, it filed a second petition challenging amendments to the maturity standards as well as the generic advertising regulations. The Administrative Law Judge (ALJ), in two separate decisions that are explained in a total of 769 pages, ruled in favor of Wileman on the Administrative Procedure Act (APA) issues, without resolving respondents’ First Amendment claims. App. to
In the Court of Appeals the handlers challenged the generic advertising provisions of the orders as violative of both the APA and the First Amendment. The court rejected the statutory challenge, concluding that the record contained substantial evidence justifying both the original decision to engage in generic advertising7 and the continuation of the program. It explained:
*465 “The Nectarine Administrative Committee and the Peach Commodity Committee engage in a careful process each year prior to and during their annual spring meetings in approving the advertising program for the upcoming season. Prior to the full committee meeting, the Subcommittee on Advertising and Promotion meets to review in detail the program developed by its staff. The staff in turn uses monthly reports on price trends, consumer interests, and general market conditions in the formation of the proposed advertising program.
“[I]t is only because the handlers themselves, through the committees, recommend a budget with a generic advertising component that the program is renewed by the Secretary every year. In fact, in most years the recommendations have been unanimous. We cannot assume that the handlers — the parties with firsthand knowledge of the state of their industry — would make recommendations that have an adverse effect on their businesses. Of course, the interests of the voting committee members may not always coincide with those of every handler in the industry. However, this court has previously noted that the Supreme Court ‘upheld the constitutionality of the system despite the fact that it may produce results with which some growers or handlers will disagree.’ Saulsbury Orchards and Almond Processing, Inc. v. Yeutter, 917 F. 2d 1190, 1197 (9th Cir. 1990) (citing United States v. Rock Royal Coop., 307 U. S. 533 ... (1939)).” Wileman Bros. & Elliott, Inc. v. Espy, 58 F. 3d 1367, 1375-1376 (CA9 1995) (footnote omitted).
The Court of Appeals concluded, however, that Government enforced contributions to pay for generic advertising violated the First Amendment rights of the handlers. Relying on an earlier Ninth Circuit decision that had cited our
The Court of Appeals’ disposition of the First Amendment claim is in conflict with a decision of the Court of Appeals for the Third Circuit that rejected a challenge to generic advertising of beef authorized by the Beef Promotion and Research Act of 1985, 7 U. S. C. §§ 2901-2911. United States v. Frame, 885 F. 2d 1119, 1136, 1137 (1989). Characterizing that statute as “legislation in furtherance of an ideologically neutral compelling state interest,” id., at 1137, and noting that the “Cattlemen’s Board is authorized only to develop
We granted the Secretary’s petition for certiorari to resolve the conflict, 517 U. S. 1232 (1996), and now reverse.
III
In challenging the constitutionality of the generic advertising program in the Court of Appeals, respondents relied, in part, on their claimed disagreement with the content of some of the generic advertising. 58 F. 3d, at 1377, n. 6. The District Court had found no merit to this aspect of their claim,10 and the Court of Appeals did not rely on it for its conclusion that the program was unconstitutional. Rather, the Court of Appeals invalidated the entire program on the theory that the program could not survive Central Hudson because the Government had failed to prove that generic advertising was more effective than individual advertising in increasing consumer demand for California nectarines, plums, and peaches. That holding did not depend at all on either the content of the advertising, or on the respondents’ claimed disagreement with any particular message. Al
For purposes of our analysis, we neither accept nor reject the factual assumption underlying the Court of Appeals’ invalidation of the program — namely, that generic advertising may not be the most effective method of promoting the sale of these commodities. The legal question that we address is whether being compelled to fund this advertising raises a First Amendment issue for us to resolve, or rather is simply a question of economic policy for Congress and the Executive to resolve.
IV
Three characteristics of the regulatory scheme at issue distinguish it from laws that we have found to abridge the freedom of Speech protected by the First Amendment. First, the marketing orders impose no restraint on the freedom of any producer to communicate any message to any audience.12 Second, they do not compel any person to engage in any actual or symbolic speech.13 Third, they do not compel the producers to endorse or to finance any political
Respondents advance several arguments in support of their claim that being required to fund the generic advertising program violates the First Amendment. Respondents argue that the assessments for generic advertising impinge on their First Amendment rights because they reduce the amount of money that producers have available to conduct their own advertising. This is equally true, however, of assessments to cover employee benefits, inspection fees, or any other activity that is authorized by a marketing order. The First Amendment has never been construed to require heightened scrutiny of any financial burden that has the incidental effect of constraining the size of a firm’s advertising budget. The fact that an economic regulation may indirectly lead to a reduction in a handler’s individual advertising budget does not itself amount to a restriction on speech.
The Court of Appeals, perhaps recognizing the expansive nature of respondents’ argument, did not rely on the claim that the assessments for generic advertising indirectly limit the extent of the handlers’ own advertising. Rather, the Court of Appeals apparently accepted respondents’ argument that the assessments infringe First Amendment rights because they constitute compelled speech. Our compelled speech case law, however, is clearly inapplicable to the regulatory scheme at issue here. The use of assessments to pay
Although this regulatory scheme may not compel speech as recognized by our case law, it does compel financial contributions that are used to fund advertising. As the Court of Appeals read our decision in Abood, just as the First Amendment prohibits compelled speech, it prohibits — at least without sufficient justification by the government — compelling an individual to “render financial support for others’ speech.” 58 F. 3d, at 1377. However, Abood, and the cases that follow it, did not announce a broad First Amendment right not to be compelled to provide financial support for any organization that conducts expressive activities. Rather, Abood merely recognized a First Amendment interest in not being compelled to contribute to an organization whose expressive activities conflict with one’s “freedom of belief.” 431 U. S., at 235. We considered, in Abood, whether it was constitu
Here, however, requiring respondents to pay the assessments cannot be said to engender any crisis of conscience. None of the advertising in this record promotes any particular message other than encouraging consumers to buy California tree fruit. Neither the fact that respondents may prefer to foster that message independently in order to promote and distinguish their own products, nor the fact that they think more or less money should be spent fostering it, makes this case comparable to those in which an objection rested on political or ideological disagreement with the content of the message. The mere fact that objectors believe their money is not being well spent “does not mean [that] they have a First Amendment complaint.” Ellis v. Railway Clerks, 466 U. S. 435, 456 (1984).
Moreover, rather than suggesting that mandatory funding of expressive activities always constitutes compelled speech in violation of the First Amendment, our cases provide affirmative support for the proposition that assessments to fund a lawful collective program may sometimes be used to pay for speech over the objection of some members of the
As we pointed out in Keller, “Abood held that a union could not expend a dissenting individual’s dues for ideological activities not ‘germane’ to the purpose for which compelled association was justified: collective bargaining. Here the compelled association and integrated bar are justified by the State’s interest in regulating the legal profession and improving the quality of legal services. The State Bar may therefore constitutionally fund activities germane to those goals out of the mandatory dues of all members. It may not, however, in such manner fund activities of an ideological nature which fall outside of those areas of activity.” Id., at 13-14. This test is clearly satisfied in this case because (1) the generic advertising of California peaches and nectarines is unquestionably germane to the purposes of the marketing orders and, (2) in any event, the assessments are not used to fund ideological activities.16
V
The Court of Appeals’ decision to apply the Central Hudson test is inconsistent with the very nature and purpose of the collective action program at issue here. The Court of
On occasion it is appropriate to emphasize the difference between policy judgments and constitutional adjudication.
Generic advertising is intended to stimulate consumer demand for an agricultural product in a regulated market. That purpose is legitimate and consistent with the regulatory goals of the overall statutory scheme. See § 602(1). At least a majority of the producers in each of the markets in which such advertising is authorized must be persuaded that it is effective, or presumably the programs would be discontinued.20 Whether the benefits from the advertising justify its cost is a question that not only might be answered differently in different markets, but also involves the exercise of policy judgments that are better made by producers and administrators than by judges.
As with other features of the marketing orders, individual producers may not share the views or the interests of others in the same market. But decisions that are made by the majority, if acceptable for other regulatory programs, should be equally so for promotional advertising. Perhaps more money may be at stake when a generic advertising program
The judgment of the Court of Appeals is reversed.
It is so ordered.
See, e. g., United States v. Rock Royal Co-operative, Inc., 307 U. S. 533 (1939); West Lynn Creamery, Inc. v. Healy, 512 U. S. 186, 188-189 (1994).
Congress amended the AMA A in 1954 to authorize the Secretary to establish “marketing ... development projects.” See Agricultural Act of 1954, § 401(c), 68 Stat. 906.
Those regulations include provisions minimizing the risk that the generic advertising might adversely affect the interests of any individual producer. See 7 U. S. C. § 608c(16)(A)(i) (providing for termination or suspension of an order that does not “effectuate the declared policy” of the AMAA); § 608e(16)(B) (providing for termination of an order if a majority of producers does not support a regulation); § 608c(15)(A) (allowing handlers subject to a marketing order to petition for modification or exemption from an order that is inconsistent with the statute). For the purpose of this case, we assume that those regulations accomplish their goals, and that the generic advertising programs therefore further the interests of
The original marketing order for California peaches and plums was first issued in 1939. See 4 Fed. Reg. 2135 (1939). The marketing order for California nectarines was issued in 1958. See 7 CFR § 937.45 (1959).
The plum portion of Order 917 was terminated in 1991 after a majority of plum producers failed to vote for its continuation, see 56 Fed. Reg. 23772, but because some of the respondents are seeking a refund of 1991 assessments for plum advertising, the validity of that portion of the program is not moot.
The ALJ indicated that if respondents “were not to succeed in their nonconstitutional arguments” she would rule in their favor on the First Amendment claim. App. to Brief in Opposition 393a.
The Court of Appeals quoted the following as a “typical excerpt”: “ ‘The record shows a wide consensus among the peach and pear industries that promotional activities have been beneficial in increasing demand and should be continued.
“ ‘Media generally is expensive but some things can be done selectively in this field that are inexpensive and yet create an impact on the buying trade as well as the consuming public. Trade paper ads, particularly at the beginning of the season, together with the editorial support'which trade papers are willing to accord an advertiser are helpful in launching a program for seasonal ñ'uits such as peaches and pears. Spot radio or TV commercials in the principal markets during peak movement periods have proved to be successful. It has been found in many fresh promotional programs that spot announcements, particularly when developed with a “dealer tag” at the end of each spot, have considerable influence in triggering retail promotions. 41 Fed. Reg. 14,375, 14,376-77 (1976).’ ” Wileman Bros. & Elliott, Inc. v. Espy, 58 F. 3d 1367, 1375 (CA9 1995).
Respondents also challenged other features of the collective program including the fruit maturity and minimum size requirements. Reviewing these aspects of the order pursuant to the deferential standard of review provided in the APA, the Court of Appeals found that they were not arbitrary and capricious. See 58 F. 3d, at 1382, 1384.
The plaintiff had claimed that he disagreed with the point of view expressed in advertising that the consumption of beef is “ ‘desirable, healthy, nutritious’”; the court concluded that his claim was not “a dispute over anything more than mere strategy.” Frame, 885 F. 2d, at 1137.
The District Court stated: “Scattered throughout plaintiffs’ briefs are additional objections which are difficult to characterize or quantify. They assert that the advertising condones ‘lying’ in that it promotes the ‘lie’ that red colored fruit is superior, that it rewards mediocrity by advertising all varieties of California fruit to be of equal quality, that it promotes sexually subliminal messages as evidenced by an ad depicting a young girl in a wet bathing suit, and that it promotes the ‘socialistic programs’ of the Secretary. It is impossible from these ‘vague claims’ to determine that plaintiffs’ first amendment rights have been significantly infringed.” Wileman Bros. & Elliott, Inc. v. Madigan, Civ. No. F-90-473-OWW (ED Cal. 1993), reprinted in App. to Pet. for Cert. 91a-92a.
Respondents argue that assessments were used to fund advertisements conveying the message that red nectarines are superior to other nectarines, Brief for Respondents Wileman Brothers et al. 33, and advertisements conveying the message that “all California fruit is the same,” ibid.; Brief for Respondents Gerawan Farming, Inc., et al. 46. They contend that they object to these messages because some of respondent companies grow varieties of nectarines that are not red, and because they seek to promote the fact that the commodities are highly varied. See Brief for Respondents Wileman Brothers et al. 33; Brief for Respondents Gerawan Farming, Inc., et al. 46. Respondents’ argument concerning promotion of red varieties appears to confuse complaints concerning maturity standards imposed on peach and nectarine growers with complaints concerning advertising. See, e. g., App. 233; id., at 692. The argument that the advertising promotes a view that all California fruit is the same is premised upon no particular advertisement, but rather upon testimony by respondents’ executives concerning their general opposition to paying for generic advertising. See, e. g., id., at 588; id., at 662-663.
Respondents also suggest that assessments were improperly used to fund materials promoting fruit varieties grown exclusively by their competitors. Brief for Respondents Wileman Brothers et al. 19-20. The claim, however, arises simply from a single reference to Red Jim nectarines, listed among 25 varieties, on a 1989 chart illustrating the availability of mid- to late-season summer tree fruits. App. 531.
These complaints, if they have any merit, are all essentially challenges to the administration of the program that are more properly addressed to the Secretary.
This fact distinguishes the limits on commercial speech at issue in Central Hudson Gas & Elec. Corp. v. Public Serv. Comm’n of N. Y, 447 U. S. 557 (1980), Virginia Bd. of Pharmacy v. Virginia Citizens Consumer Council, Inc., 425 U. S. 748 (1976), and 44 Liquormart, Inc. v. Rhode Island, 517 U. S. 484 (1996).
This fact distinguishes the compelled speech in West Virginia Bd. of Ed. v. Barnette, 319 U. S. 624 (1943), Wooley v. Maynard, 430 U. S. 705 (1977), Riley v. National Federation of Blind of N. C, Inc., 487 U. S. 781 (1988), and the compelled association in Hurley v. Irish-American Gay, Lesbian and Bisexual Group of Boston, Inc., 515 U. S. 557 (1995).
This fact distinguishes cases like Machinists v. Street, 367 U. S. 740 (1961), Abood v. Detroit Bd. of Ed., 431 U. S. 209 (1977), and Keller v. State Bar of Cal., 496 U. S. 1 (1990).
See n. 10, supra.
The generic advertising program at issue here is even less likely to pose a First Amendment burden than the programs upheld in Lehnert v. Ferris Faculty Assn., 500 U. S. 507 (1991). Lehnert involved collective programs in the context of a union agency-shop agreement which arguably always poses some burden on First Amendment rights. See id,., at 518 (noting that agency-shop agreements inherently burden First Amendment rights); see also Abood, 431 U. S., at 222 (recognizing that all compelled contributions for collective bargaining affect First Amendment interests because an employee may have ideological, moral, or religious objections to the union’s activities). By contrast, the collective programs authorized
As we have already noted, n. 8, supra, respondents failed in their challenge to the other features of the programs before the District Court and the Court of Appeals.
The Court of Appeals fails to explain why the Central Hudson test, which involved a restriction on commercial speech, should govern a case involving the compelled funding of speech. Given the fact that the Court of Appeals relied on Abood for the proposition that the program implicates the First Amendment, it is difficult to understand why the Court of Appeals did not apply Abood’s “germaneness” test.
See, e. g., Appalachian Coals, Inc. v. United States, 288 U. S. 344, 359-360 (1933); Northern Pacific R. Co. v. United States, 356 U. S. 1, 4 (1958); Vendo Co. v. Lektro-Vend Corp., 433 U. S. 623, 647 (1977) (Stevens, J., dissenting).
The Secretary must terminate an order if he determines that it does not further the policies of the AMAA, see 7 U. S. C. § 608c(16)(A)(i), or that a majority of producers does not support it, see § 608e(16)(B). The committee voted unanimously for generic advertising assessments in each of the years at issue here. See 58 F. 3d, at 1376.