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- 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 Lumber Co., 200 U. S. 321, 337.
-
- SUPREME COURT OF THE UNITED STATES
-
- Syllabus
-
- RUBIN, SECRETARY OF THE TREASURY v. COORS
- BREWING CO.
- certiorari to the united states court of appeals for
- the tenth circuit
- No. 93-1631. Argued November 30, 1994-Decided April 19, 1995
-
- Because 5(e)(2) of the Federal Alcohol Administration Act (FAAA or
- Act) prohibits beer labels from displaying alcohol content, the federal
- Bureau of Alcohol, Tobacco and Firearms (BATF) rejected respond-
- ent brewer's application for approval of proposed labels that dis-
- closed such content. Respondent filed suit for relief on the ground
- that the relevant provisions of the Act violated the First Amend-
- ment's protection of commercial speech. The Government argued
- that the labeling ban was necessary to suppress the threat of
- ``strength wars'' among brewers, who, without the regulation, would
- seek to compete in the marketplace based on the potency of their
- beer. The District Court invalidated the labeling ban, and the
- Court of Appeals affirmed. Although the latter court found that the
- Government's interest in suppressing ``strength wars'' was ``substan-
- tial'' under the test set out in Central Hudson Gas & Electric Corp.
- v. Public Serv. Comm'n of N. Y., 447 U. S. 557, the court held that
- the ban violates the First Amendment because it fails to advance
- that interest in a direct and material way.
- Held: Section 5(e)(2) violates the First Amendment's protection of
- commercial speech. Pp. 3-15.
- (a) In scrutinizing a regulation of commercial speech that con-
- cerns lawful activity and is not misleading, a court must consider
- whether the governmental interest asserted to support the regula-
- tion is ``substantial.'' If that is the case, the court must also deter-
- mine whether the regulation directly advances the asserted interest
- and is no more extensive than is necessary to serve that interest.
- Central Hudson, supra, at 566. Here, respondent seeks to disclose
- only truthful, verifiable, and nonmisleading factual information
- concerning alcohol content. Pp. 3-6.
- (b) The interest in curbing ``strength wars'' is sufficiently ``sub-
- stantial'' to satisfy Central Hudson. The Government has a signifi-
- cant interest in protecting the health, safety, and welfare of its
- citizens by preventing brewers from competing on the basis of
- alcohol strength, which could lead to greater alcoholism and its
- attendant social costs. Cf. Posadas de Puerto Rico Associates v.
- Tourism Co. of Puerto Rico, 478 U. S. 328, 341. There is no reason
- to think that strength wars, if they were to occur, would not pro-
- duce the type of social harm that the Government hopes to prevent.
- However, the additional asserted interest in ``facilitat[ing]'' state
- efforts to regulate alcohol under the Twenty-first Amendment is not
- sufficiently substantial to meet Central Hudson's requirement. Even
- if the Government possessed the authority to facilitate state powers,
- the Government has offered nothing to suggest that States are in
- need of federal assistance in this regard. United States v. Edge
- Broadcasting Co., ___ U. S. ___, ___, distinguished. Pp. 7-9.
- (c) Section 205(e)(2) fails Central Hudson's requirement that the
- measure directly advance the asserted government interest. The
- labeling ban cannot be said to advance the governmental interest in
- suppressing strength wars because other provisions of the FAAA
- and implementing regulations prevent 205(e)(2) from furthering
- that interest in a direct and material fashion. Although beer
- advertising would seem to constitute a more influential weapon in
- any strength war than labels, the BATF regulations governing such
- advertising prohibit statements of alcohol content only in States that
- affirmatively ban such advertisements. Government regulations also
- permit the identification of certain beers with high alcohol content
- as ``malt liquors,'' and they require disclosure of content on the
- labels of wines and spirits. There is little chance that 205(e)(2)
- can directly and materially advance its aim, while other provisions
- of the same Act directly undermine and counteract its effects.
- Pp. 9-13.
- (d) Section 205(e)(2) is more extensive than necessary, since
- available alternatives to the labeling ban-including directly limiting
- the alcohol content of beers, prohibiting marketing efforts emphasiz-
- ing high alcohol strength, and limiting the ban to malt liquors, the
- segment of the beer market that allegedly is threatened with a
- strength war-would prove less intrusive to the First Amendment's
- protections for commercial speech. Pp. 14-15.
- 2 F. 3d 355, affirmed.
- Thomas, J., delivered the opinion of the Court, in which Rehnquist,
- C. J., and O'Connor, Scalia, Kennedy, Souter, Ginsburg, and
- Breyer, JJ., joined. Stevens, J., filed an opinion concurring in the
- judgment.
-