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- SUPREME COURT OF THE UNITED STATES
-
- Syllabus
-
- EDENFIELD et al. v. FANE
- certiorari to the united states court of appeals for
- the eleventh circuit
-
- No. 91-1594. Argued December 7, 1992-Decided April 26, 1993
- Respondent Fane, a Certified Public Accountant (CPA) licensed to
- practice by the Florida Board of Accountancy, sued the Board for
- declaratory and injunctive relief on the ground that its rule
- prohibiting CPAs from engaging in ``direct, in-person, uninvited
- solicitation'' to obtain new clients violated the First and
- Fourteenth Amendments. He alleged that but for the prohibition
- he would seek clients through personal solicitation, as he had
- done while practicing in New Jersey, where such solicitation is
- permitted. The Federal District Court enjoined the rule's
- enforcement, and the Court of Appeals affirmed.
-
- Held: As applied to CPA solicitation in the business context,
- Florida's prohibition is inconsistent with the free speech
- guarantees of the First and Fourteenth Amendments. Pp. 3-16.
-
- (a) The type of personal solicitation prohibited here is
- clearly commercial expression to which First Amendment
- protections apply. E.g., Virginia State Bd. of Pharmacy v.
- Virginia Citizens Consumer Council, Inc., 425 U. S. 748, 762.
- Ohralik v. Ohio State Bar Assn., 436 U. S. 447, which upheld a
- ban on in-person solicitation by lawyers, did not hold that all
- personal solicitation is without First Amendment protection. In
- denying CPAs and their clients the considerable advantages of
- solicitation in the commercial context, Florida's law threatens
- societal interests in broad access to complete and accurate
- commercial information that the First Amendment is designed to
- safeguard. However, commercial speech is ``linked inextricably''
- with the commercial arrangement that it proposes, so that the
- State's interest in regulating the underlying transaction may
- give it a concomitant interest in the expression itself. Thus,
- Florida's rule need only be tailored in a reasonable manner to
- serve a substantial state interest in order to survive First
- Amendment scrutiny. See, e.g., Central Hudson Gas & Electric
- Corp. v. Public Service Comm'n of New York, 477 U. S. 557, 564.
- Pp. 3-5.
-
- (b) Even under the intermediate Central Hudson standard
- of review, Florida's ban cannot be sustained as applied to Fane's
- proposed speech. The Board's asserted interests-protecting
- consumers from fraud or overreaching by CPAs and maintaining CPA
- independence and ensuring against conflicts of interest-are
- substantial. However, the Board has failed to demonstrate that
- the ban advances those interests in any direct and material way.
- A governmental body seeking to sustain a restriction on
- commercial speech must demonstrate that the harms it recites are
- real and that its restriction will in fact alleviate them to a
-
- material degree. Here, the Board's suppositions about the
- dangers of personal solicitation by CPAs in the business context
- are not validated by studies, anecdotal evidence, or Fane's own
- conduct; and its claims are contradicted by a report of the
- American Institute of Certified Public Accountants and other
- literature. Nor can the ban be justified as a reasonable time,
- place, or manner restriction on speech. Even assuming that a
- flat ban on commercial solicitation could be regarded as such a
- restriction, the ban still must serve a substantial state
- interest in a direct and material way. Pp. 5-12.
-
- (c) The ban cannot be justified as a prophylactic rule
- because the circumstances of CPA solicitation in the business
- context are not ``inherently conducive to overreaching and other
- forms of misconduct.'' Ohralik, supra, at 464. Unlike a lawyer,
- who is trained in the art of persuasion, a CPA is trained in a
- way that emphasizes independence and objectivity rather than
- advocacy. Moreover, while a lawyer may be soliciting an
- unsophisticated, injured, or distressed lay person, a CPA's
- typical prospective client is a sophisticated and experienced
- business executive who has an existing professional relation with
- a CPA, who selects the time and place for their meeting, and for
- whom there is no expectation or pressure to retain the CPA on the
- spot. In addition, Ohralik in no way relieves a State of the
- obligation to demonstrate that its restrictions on speech address
- a serious problem and contribute in a material way to solving
- that problem. Pp. 12-16.
- 945 F. 2d 1514, affirmed.
-
- Kennedy, J., delivered the opinion of the Court, in which
- Rehnquist, C. J., and White, Blackmun, Stevens, Scalia, Souter,
- and Thomas, JJ., joined. Blackmun, J., filed a concurring
- opinion. O'Connor, J., filed a dissenting opinion.
-
-
- Justice Kennedy delivered the opinion of the Court.
-
- In previous cases we have considered the
- constitutionality of state laws prohibiting lawyers from engaging
- in direct, personal solicitation of prospective clients. See
- Ohralik v. Ohio State Bar Assn., 436 U. S. 447 (1978); In re
- Primus, 436 U. S. 412 (1978). In the case now before us, we
- consider a solicitation ban applicable to Certified Public
- Accountants (CPAs) enacted by the State of Florida. We hold
- that, as applied to CPA solicitation in the business context,
- Florida's prohibition is inconsistent with the free speech
- guarantees of the First and Fourteenth
- Amendments.
-
- I
-
- Respondent Scott Fane is a CPA licensed to practice in
- the State of Florida by the Florida Board of Accountancy. Before
- moving to Florida in 1985, Fane had his own accounting CPA
- practice in New Jersey, specializing in providing tax advice to
- small and medium-sized businesses. He often obtained business
- clients by making unsolicited telephone calls to their executives
- and arranging meetings to explain his services and expertise.
- This direct, personal, uninvited solicitation was permitted under
- New Jersey law.
-
- When he moved to Florida, Fane wished to build a practice
- similar to his solo practice in New Jersey but was unable to do
- so because the Board of Accountancy had a comprehensive rule
- prohibiting CPAs from engaging in the direct, personal
- solicitation he had found most effective in the past. The
- Board's rules provide that a CPA "shall not by any direct,
- in-person, uninvited solicitation solicit an engagement to
- perform public accounting services . . . where the engagement
- would be for a person or entity not already a client of [the
- CPA], unless such person or entity has invited such a
- communication." Fla. Admin. Code 21A-24.002(2)(c) (1992).
- "[D]irect, in-person, uninvited solicitation" means "any
- communication which directly or implicitly requests an immediate
- oral response from the recipient," which, under the Board's
- rules, includes all "[u]ninvited in-person visits or
- conversations or telephone calls to a specific potential client."
- 21A-24.002(3).
-
- The rule, according to Fane's uncontradicted submissions,
- presented a serious obstacle, because most businesses are willing
- to rely for advice on the accountants or CPAs already serving
- them. In Fane's experience, persuading a business to sever its
- existing accounting relations or alter them to include a new CPA
- on particular assignments requires the new CPA to contact the
- business and explain the advantages of a change. This entails a
- detailed discussion of the client's needs and the CPA's
- expertise, services and fees. See Affidavit of Scott Fane --7,
- 11 (App. 11, 15).
-
- Fane sued the Board in the United States District Court
- for the Northern District of Florida, seeking declaratory and
- injunctive relief on the ground that the Board's anti-
- solicitation rule violated the First and Fourteenth Amendments.
- Fane alleged that but for the prohibition he would seek clients
- through personal solicitation and would offer fees below
- prevailing rates. Complaint --9-11 (App. 3-4). In response to
- Fane's submissions, the Board relied on the affidavit of Louis
- Dooner, one of its former Chairmen. Dooner concluded that the
- solicitation ban was necessary to preserve the independence of
- CPAs performing the attest function, which involves the rendering
- of opinions on a firm's financial statements. His premise was
- that a CPA who solicits clients "is obviously in need of business
- and may be willing to bend the rules." Affidavit of Louis Dooner,
- App. 23. In Dooner's view, "[i]f [a CPA] has solicited the
- client he will be beholden to him." Id., at 19. Dooner also
- suggested that the ban was needed to prevent "overreaching and
- vexatious conduct by the CPA." Id., at 23.
-
- The District Court gave summary judgment to Fane and
- enjoined enforcement of the rule "as it is applied to CPAs who
- seek clients through in-person, direct, uninvited solicitation in
- the business context." Civ. Case No. 88-40264-MNP (ND Fla., Sept.
- 13, 1990) (App. 88). A divided panel of the Court of Appeals for
- the Eleventh Circuit affirmed. 945 F. 2d 1514 (1991).
-
- We granted certiorari, 504 U. S. ___ (1992), and now
- affirm.
-
- II
-
- In soliciting potential clients, Fane seeks to
- communicate no more than truthful, non-deceptive information
- proposing a lawful commercial transaction. We need not parse
- Fane's proposed communications to see if some parts are entitled
- to greater protection than the solicitation itself. This case
- comes to us testing the solicitation, nothing more. That is what
- the State prohibits and Fane proposes.
-
- Whatever ambiguities may exist at the margins of the
- category of commercial speech, see, e.g., Pittsburgh Press Co. v.
- Pittsburgh Comm'n on Human Relations, 413 U.S. 376, 384-388
- (1973), it is clear that this type of personal solicitation is
- commercial expression to which the protections of the First
- Amendment apply. E.g., Virginia State Bd. of Pharmacy v.
- Virginia Citizens Consumer Council, Inc., 425 U. S. 748, 762
- (1976). While we did uphold a ban on in-person solicitation by
- lawyers in Ohralik v. Ohio State Bar Assn., 436 U. S. 447 (1978),
- that opinion does not hold that all personal solicitation is
- without First Amendment protection. See id., at 457. There are,
- no doubt, detrimental aspects to personal commercial solicitation
- in certain circumstances, see id., at 464, and n. 23, but these
- detriments are not so inherent or ubiquitous that solicitation of
- this sort is removed from the ambit of First Amendment
- protection. Cf. United States v. Kokinda, 497 U. S. 720, 725
- (1990) (plurality opinion) ("Solicitation is a recognized form of
- speech protected by the First Amendment"); see also International
- Society for Krishna Consciousness v. Lee, 505 U. S. ___, ___
- (1992).
-
- In the commercial context, solicitation may have
- considerable value. Unlike many other forms of commercial
- expression, solicitation allows direct and spontaneous
- communication between buyer and seller. A seller has a strong
- financial incentive to educate the market and stimulate demand
- for his product or service, so solicitation produces more
- personal interchange between buyer and seller than would occur if
- only buyers were permitted to initiate contact. Personal
- interchange enables a potential buyer to meet and evaluate the
- person offering the product or service, and allows both parties
- to discuss and negotiate the desired form for the transaction or
- professional relation. Solicitation also enables the seller to
- direct his proposals toward those consumers whom he has a reason
- to believe would be most interested in what he has to sell. For
- the buyer, it provides an opportunity to explore in detail the
- way in which a particular product or service compares to its
- alternatives in the market. In particular, with respect to
- nonstandard products like the professional services offered by
- CPAs, these benefits are significant.
-
- In denying CPAs and their clients these advantages,
- Florida's law threatens societal interests in broad access to
- complete and accurate commercial information that First Amendment
- coverage of commercial speech is designed to safeguard. See
- Virginia State Bd. of Pharmacy, supra, at 762-765; Bates v. State
- Bar of Arizona, 433 U. S. 350, 377-378 (1977); Central Hudson Gas
- & Electric Corp. v. Public Service Comm'n of New York, 447 U.S.
- 557, 561-562 (1980). The commercial marketplace, like other
- spheres of our social and cultural life, provides a forum where
- ideas and information flourish. Some of the ideas and
- information are vital, some of slight worth. But the general
- rule is that the speaker and the audience, not the government,
- assess the value of the information presented. Thus, even a
- communication that does no more than propose a commercial
- transaction is entitled to the coverage of the First Amendment.
- See Virginia State Bd. of Pharmacy, supra, at 762.
-
- Commercial speech, however, is -linked inextricably-
- with the commercial arrangement that it proposes, Friedman v.
- Rogers, 440 U. S. 1, 10, n. 9 (1979), so the State's interest in
- regulating the underlying transaction may give it a concomitant
- interest in the expression itself. See Ohralik, 436 U. S., at
- 457. For this reason, laws restricting commercial speech, unlike
- laws burdening other forms of protected expression, need only be
- tailored in a reasonable manner to serve a substantial state
- interest in order to survive First Amendment scrutiny. Board of
- Trustees of State Univ. of New York v. Fox, 492 U. S. 469, 480
- (1989); Central Hudson Gas & Electric Corp., 477 U. S., at 564.
- Even under this intermediate standard of review, however,
- Florida's blanket ban on direct, in-person, uninvited
- solicitation by CPAs cannot be sustained as applied to Fane's
- proposed speech.
-
- III
-
- To determine whether personal solicitation by CPAs may
- be proscribed under the test set forth in Central Hudson we must
- ask whether the State's interests in proscribing it are
- substantial; whether the challenged regulation advances these
- interests in a direct and material way; and whether the extent of
- the restriction on protected speech is in reasonable proportion
- to the interests served. See ibid. Though we conclude that the
- Board's asserted interests are substantial, the Board has failed
- to demonstrate that its solicitation ban advances those
- interests.
- A
-
- In undertaking the first inquiry, we must identify with
- care the interests the State itself asserts. Unlike rational
- basis review, the Central Hudson standard does not permit us to
- supplant the precise interests put forward by the State with
- other suppositions. See Fox, supra, at 480. Neither will we
- turn away if it appears that the stated interests are not the
- actual interests served by the restriction. See, e.g.,
- Mississippi Univ. for Women v. Hogan, 458 U. S. 718, 730 (1982).
-
- /* The Constitutional Law Process does not allow the State to
- hope that Courts will find a reason to uphold a restriction on
- speech. This case suffers from the fact that first of all, the
- U.S. Supreme Court is extremely hostile (perhaps properly looking
- at the first amendment, applicable to the states through the 14th
- Amendment) to limits on professional speech. For any persons who
- are literalists (that is, the Constitution must be followed as
- the law was when the various amendments were past) professional
- solicitation was extremely active in the 18th and 19th centuries.
- */
-
- To justify its ban on personal solicitation by CPAs, the
- Board proffers two interests. First, the Board asserts an
- interest in protecting consumers from fraud or overreaching by
- CPAs. Second, the Board claims that its ban is necessary to
- maintain both the fact and appearance of CPA independence in
- auditing a business and attesting to its financial statements.
-
- The State's first interest encompasses two distinct
- purposes: to prevent fraud and other forms of deception, and to
- protect privacy. As to the first purpose, we have said that
- "[t]he First Amendment . . . does not prohibit the State from
- insuring that the stream of commercial information flow[s]
- cleanly as well as freely," Virginia State Bd. of Pharmacy, 425
- U. S., at 771-772, and our cases make clear that the State may
- ban commercial expression that is fraudulent or deceptive without
- further justification. See, e.g., Central Hudson Gas & Electric
- Corp., supra, at 563-564; In re R. M. J., 455 U. S. 191, 203
- (1982); Metromedia, Inc. v. San Diego, 453 U. S. 490, 507 (1981)
- (plurality opinion). Indeed, 25 States and the District of
- Columbia take various forms of this approach, forbidding
- solicitation by CPAs only under circumstances that would render
- it fraudulent, deceptive, or coercive. See, e.g., Code of Colo.
- Regs. 7.12 (1991); N. D. Admin. Code 3-04-06-02 (1991); N. H.
- Code Admin. Rules 507.02(c) (1990); D. C. Mun. Reg., Tit. 17,
- 2513.4 (1990). But where, as with the blanket ban involved here,
- truthful and nonmisleading expression will be snared along with
- fraudulent or deceptive commercial speech, the State must satisfy
- the remainder of the Central Hudson test by demonstrating that
- its restriction serves a substantial state interest and is
- designed in a reasonable way to accomplish that end. See In re
- R. M. J., supra, at 203. For purposes of that test, there is no
- question that Florida's interest in ensuring the accuracy of
- commercial information in the marketplace is substantial. See,
- e.g., Virginia State Bd. of Pharmacy v. Virginia Citizens
- Consumer Council, Inc., supra, at 771-772; San Francisco Arts &
- Athletics, Inc. v. United States Olympic Committee, 483
- U.S. 522, 539 (1987); Friedman v. Rogers, supra, at 13.
-
- Likewise, the protection of potential clients' privacy is
- a substantial state interest. Even solicitation that is neither
- fraudulent nor deceptive may be pressed with such frequency or
- vehemence as to intimidate, vex, or harass the recipient. In
- Ohralik, we made explicit that "protection of the public from
- these aspects of solicitation is a legitimate and important state
- interest." Ohralik, 436 U.S., at 462.
-
- The Board's second justification for its ban "the need
- to maintain the fact and appearance of CPA independence
- and to guard against conflicts of interest" is related to the
- audit and attest functions of a CPA. In the course of rendering
- these professional services, a CPA reviews financial statements
- and attests that they have been prepared in accordance with
- generally accepted accounting principles and present a fair and
- accurate picture of the firm's financial condition. See
- generally, R. Gormley, Law of Accountants and Auditors -1.07[4]
- (1981); 1 American Institute of Certified Public Accountants,
- Professional Standards AU 110.01 (1991) (hereinafter AICPA
- Professional Standards). In the Board's view, solicitation
- compromises the independence necessary to perform the audit and
- attest functions, because a CPA who needs business enough to
- solicit clients will be prone to ethical lapses. The Board
- claims that even if actual misconduct does not occur, the public
- perception of CPA independence will be undermined if CPAs behave
- like ordinary commercial actors.
-
- /* This rationale borders on gibberish. */
-
- We have given consistent recognition to the State's
- important interests in maintaining standards of ethical conduct
- in the licensed professions. See, e.g., Ohralik, supra, at 460;
- Virginia State Bd. of Pharmacy, supra, at 766; National Society
- of Professional Engineers v. United States, 435 U. S. 679, 696
- (1978). With regard to CPAs, we have observed that they must
- -maintain total independence- and act with -complete fidelity to
- the public trust- when serving as independent auditors. United
- States v. Arthur Young & Co., 465 U. S. 805, 818 (1984).
- Although the State's interest in obscuring the commercial nature
- of public accounting practice is open to doubt, see Bates v.
- Arizona State Bar Assn., 433 U. S., at 369-371, the Board's
- asserted interest in maintaining CPA independence and ensuring
- against conflicts of interest is not. We acknowledge that this
- interest is substantial. See Ohralik, supra, at 460-461.
-
- B
-
- That the Board's asserted interests are substantial in
- the abstract does not mean, however, that its blanket
- prohibition on solicitation serves them. The penultimate
- prong of the Central Hudson test requires that a regulation
- impinging upon commercial expression "directly advance the state
- interest involved; the regulation may not be sustained if it
- provides only ineffective or remote support for the government's
- purpose." Central Hudson Gas & Electric Corp., 447 U. S., at 564.
- We agree with the Court of Appeals that the Board's ban on CPA
- solicitation as applied to the solicitation of business clients
- fails to satisfy this requirement.
-
- It is well established that "[t]he party seeking to
- uphold a restriction on commercial speech carries the burden of
- justifying it." Bolger v. Youngs Drug Products Corp., 463 U. S.
- 60, 71, n. 20 (1983); Fox, 492 U. S., at 480. This burden is not
- satisfied by mere speculation or conjecture; rather, a
- governmental body seeking to sustain a restriction on commercial
- speech must demonstrate that the harms it recites are real and
- that its restriction will in fact alleviate them to a material
- degree. See, e.g., Zauderer v. Office of Disciplinary Counsel of
- Supreme Court of Ohio, 471 U. S. 626, 648-649 (1985); Bolger,
- supra, at 73; In re R. M. J., 455 U. S., at 205-206; Central
- Hudson Gas & Electric. Corp., supra, at 569; Friedman v. Rogers,
- 440 U. S., at 13-15; Linmark Associates, Inc. v. Willingboro, 431
- U. S. 85, 95 (1977). Without this requirement, a State could
- with ease restrict commercial speech in the service of other
- objectives that could not themselves justify a burden on
- commercial expression.
-
- The Board has not demonstrated that, as applied in
- the business context, the ban on CPA solicitation advances its
- asserted interests in any direct and material way. It presents
- no studies that suggest personal solicitation of prospective
- business clients by CPAs creates the dangers of fraud,
- overreaching, or compromised independence that the Board claims
- to fear. The record does not disclose any anecdotal evidence,
- either from Florida or another State, that validates the Board's
- suppositions. This is so even though 21 States place no specific
- restrictions of any kind on solicitation by CPAs, and only three
- States besides Florida have enacted a categorical ban. See 3 La.
- Admin. Code 46:XIX.507(D)(1)(c) (Supp. 1988); Minn. Admin. Code
- 1100.6100 (1991); 22 Tex. Admin. Code 501.44 (Supp. 1992). Not
- even Fane's own conduct suggests that the Board's concerns are
- justified. Cf. Ohralik, supra, at 467-468. The only suggestion
- that a ban on solicitation might help prevent fraud and over-
- reaching or preserve CPA independence is the affidavit of Louis
- Dooner, which contains nothing more than a series of conclusory
- statements that add little if anything to the Board's original
- statement of its justifications.
-
- The Board directs the Court's attention to a report on
- CPA solicitation prepared by the American Institute of Certified
- Public Accountants in 1981. See AICPA, Report of the Special
- Committee on Solicitation (1981) (App. 29). The Report
- contradicts rather than strengthens the Board's submissions. The
- AICPA Committee stated that it was "unaware of the existence of
- any empirical data supporting the theories that CPAs (a) are not
- independent of clients obtained by direct uninvited solicitation,
- or (b) do not maintain their independence in mental attitude
- toward those clients subjected to direct uninvited solicitation
- by another CPA." Id., at 4 (App. 38). Louis Dooner's suggestion
- that solicitation of new accounts signals the need for work and
- invites an improper approach from the client ignores the fact
- that most CPA firms desire new clients. The AICPA Report
- discloses no reason to suspect that CPAs who engage in personal
- solicitation are more desperate for work, or would be any more
- inclined to compromise their professional standards, than CPAs
- who do not solicit, or who solicit only by mail or advertisement.
- With respect to the prospect of harassment or overreaching by
- CPAs, the Report again acknowledges an "absence of persuasive
- evidence that direct uninvited solicitation by CPAs is likely to
- lead to false or misleading claims or oppressive conduct." Id.,
- at 2 (App. 35).
-
- Other evidence concerning personal solicitation by CPAs
- also belies the Board's concerns. In contrast to the Board's
- anxiety over uninvited solicitation, the literature on the
- accounting profession suggests that the main dangers of
- compromised independence occur when a CPA firm is too dependent
- upon or involved with a long-standing client. See, e.g., P.
- Cottell & T. Perlin, Accounting Ethics 39-40 (1990); G. Previts,
- The Scope of CPA Services: A Study of the Development of the
- Concept of Independence and the Profession's Role in Society 142
- (1985); S. Rep. No. 95-34, pp. 50-52 (1977); General Accounting
- Office, CPA Audit Quality: Status of Actions Taken to Improve
- Auditing and Financial Reporting of Public Companies 36 (Mar.
- 1989) (GAO/AFMD-89-38). It appears from the literature that a
- business executive who wishes to obtain a favorable but
- unjustified audit opinion from a CPA would be less likely to turn
- to a stranger who has solicited him than to pressure his existing
- CPA, with whom he has an ongoing, personal relation and over whom
- he may also have some financial leverage. See id., at 34 ("A
- company using the threat of changing accountants `opinion
- shopping' to pressure its existing accounting firm to accept a
- less than desirable accounting treatment is one way independence
- is threatened"); Cottell & Perlin, supra, at 34 (noting that
- independence can be eroded if a client is served by a single
- auditor for a great length of time).
-
- For similar reasons, we reject the Board's alternative
- argument that the solicitation ban is a reasonable restriction on
- the manner in which CPAs may communicate with prospective
- clients, rather than a direct regulation of the commercial speech
- itself. Assuming that a flat ban on commercial solicitation
- could be regarded as a content-neutral time, place, or manner
- restriction on speech, a proposition that is open to serious
- doubt, see, e.g., Virginia State Bd. of Pharmacy v. Virginia
- Citizens Consumer Council, Inc., 425 U. S., at 771, a challenged
- restriction of that type still must serve a substantial state
- interest in "a direct and effective way." Ward v. Rock Against
- Racism, 491 U. S. 781, 800 (1989). The State has identified
- certain interests in regulating solicitation in the accounting
- profession that are important and within its legitimate power,
- but the prohibitions here do not serve these purposes in a direct
- and material manner. Where a restriction on speech lacks this
- close and substantial relation to the governmental interests
- asserted, it cannot be, by definition, a reasonable time, place,
- or manner restriction.
-
- C
-
- Relying on Ohralik, the Board seeks to justify its
- solicitation ban as a prophylactic rule. It acknowledges that
- Fane's solicitations may not involve any misconduct but argues
- that all personal solicitation by CPAs must be banned, because
- this contact most often occurs in private offices and is
- difficult to regulate or monitor.
-
- We reject the Board's argument and hold that, as applied
- in this context, the solicitation ban cannot be justified as a
- prophylactic rule. Ohralik does not stand for the proposition
- that blanket bans on personal solicitation by all types of
- professionals are constitutional in all circumstances. Because
- "the distinctions, historical and functional, between
- professions, may require consideration of quite different
- factors," Virginia State Bd. of Pharmacy, supra, at 773, n. 25,
- the constitutionality of a ban on personal solicitation will
- depend upon the identity of the parties and the precise
- circumstances of the solicitation. Later cases have made this
- clear, explaining that Ohralik's holding was narrow and depended
- upon certain "unique features of in-person solicitation by
- lawyers" that were present in the circumstances of that case.
- Zauderer v. Office of Disciplinary Counsel of Supreme Court of
- Ohio, 471 U. S., at 641; see also Shapero v. Kentucky State Bar
- Assn., 486 U. S. 466, 472 (1988).
-
- Ohralik was a challenge to the application of Ohio's ban
- on attorney solicitation and held only that a State Bar
- "constitutionally may discipline a lawyer for soliciting clients
- in person, for pecuniary gain, under circumstances likely to pose
- dangers that the State has a right to prevent." Ohralik v. Ohio
- State Bar Assn., 436 U. S., at 449 (emphasis added). While
- Ohralik discusses the generic hazards of personal solicitation,
- see id., at 464-466, the opinion made clear that a preventative
- rule was justified only in situations "inherently conducive to
- overreaching and other forms of misconduct." Id., at 464; cf. In
- re R.M. J., 455 U. S., at 203 (advertising may be banned outright
- only if it is actually or inherently misleading). The Court in
- Ohralik explained why the case before it met this standard:
-
- [T]he potential for overreaching is significantly greater when a
- lawyer, a professional trained in the art of persuasion,
- personally solicits an unsophisticated, injured, or
- distressed lay person. Such an individual may place his
- trust in a lawyer, regardless of the latter's qualifications
- or the individual's actual need for legal representation,
- simply in response to persuasion under circumstances
- conducive to uninformed acquiescence. Although it is argued
- that personal solicitation is valuable because it may
- apprise a victim of misfortune of his legal rights, the very
- plight of that person not only makes him more vulnerable to
- influence but also may make advice all the more intrusive.
- Thus, under these adverse conditions the overtures of an
- uninvited lawyer may distress the solicited individual
- simply because of their obtrusiveness and the invasion of
- the individual's privacy, even when no other harm
- materializes. Under such circumstances, it is not
- unreasonable for the State to presume that in-person
- solicitation by lawyers more often than not will be
- injurious to the person solicited. 436 U. S., at 465-466
- (footnotes omitted).
-
- The solicitation here poses none of the same dangers.
- Unlike a lawyer, a CPA is not "a professional trained in the art
- of persuasion." A CPA's training emphasizes independence and
- objectivity, not advocacy. See 1 AICPA Professional Standards AU
- 220; 2 id., ET 55; H. Magill & G. Previts, CPA Professional
- Responsibilities: An Introduction 105-108 (1991). The typical
- client of a CPA is far less susceptible to manipulation than the
- young accident victim in Ohralik. Fane's prospective clients are
- sophisticated and experienced business executives who understand
- well the services that a CPA offers. See Affidavit of Scott Fane
- --5-7, 10(A) (App. 10-11, 13). In general, the prospective
- client has an existing professional relation with an accountant
- and so has an independent basis for evaluating the claims of a
- new CPA seeking professional work. Id., -6 (App. 10-11).
-
- The manner in which a CPA like Fane solicits business
- is conducive to rational and considered decisionmaking by
- the prospective client, in sharp contrast to the "uninformed
- acquiescence" to which the accident victims in Ohralik were
- prone. Ohralik, supra, at 465. While the clients in Ohralik
- were approached at a moment of high stress and vulnerability, the
- clients Fane wishes to solicit meet him in their own offices at a
- time of their choosing. If they are unreceptive to his initial
- telephone solicitation, they need only terminate the call.
- Invasion of privacy is not a significant concern.
-
- If a prospective client does decide to meet with Fane,
- there is no expectation or pressure to retain Fane on the
- spot; instead, he or she most often exercises caution, checking
- references and deliberating before deciding to hire a new CPA.
- See Affidavit of Scott Fane -10(C) (App. 13-14). Because a CPA
- has access to a business firm's most sensitive financial records
- and internal documents, retaining a new accountant is not a
- casual decision. Ibid. The engagements Fane seeks are also
- long-term in nature; to the extent he engages in unpleasant, high
- pressure sales tactics, he can impair rather than improve his
- chances of obtaining an engagement or establishing a satisfactory
- professional relation. The importance of repeat business and
- referrals gives the CPA a strong incentive to act in a
- responsible and decorous manner when soliciting business. In
- contrast with Ohralik, it cannot be said that under these
- circumstances, personal solicitation by CPAs "more often than not
- will be injurious to the person solicited." Ohralik, 436 U. S.,
- at 466.
-
- The Board's reliance on Ohralik is misplaced for yet
- another reason: the Board misunderstands what Ohralik meant when
- it approved the use of a prophylactic rule. Id., at 464. The ban
- on attorney solicitation in Ohralik was prophylactic in the sense
- that it prohibited conduct conducive to fraud or overreaching at
- the outset, rather than punishing the misconduct after it
- occurred. But Ohralik in no way relieves the State of the
- obligation to demonstrate that it is regulating speech in order
- to address what is in fact a serious problem and that the
- preventative measure it proposes will contribute in a
- material way to solving that problem. See ibid. (describing the
- State's fear of harm from attorney solicitation as "well
- founded").
-
- Were we to read Ohralik in the manner the Board proposes,
- the protection afforded commercial speech would be reduced almost
- to nothing; comprehensive bans on certain categories of
- commercial speech would be permitted as a matter of course. That
- would be inconsistent with the results reached in a number of our
- prior cases. See, e.g., Zauderer v. Office of Disciplinary
- Counsel of Supreme Court of Ohio, 471 U. S. 626 (1985); Bates v.
- State Bar of Arizona, 433 U. S. 350 (1977); Linmark Associates,
- Inc. v. Willingboro, 431 U. S. 85 (1977). It would also be
- inconsistent with this Court's general approach to the use of
- preventative rules in the First Amendment context. "Broad
- prophylactic rules in the area of free expression are suspect.
- Precision of regulation must be the touchstone in an area so
- closely touching our most precious freedoms." NAACP v. Button,
- 371 U. S. 415, 438 (1963) (citations omitted). Even under the
- First Amendment's somewhat more forgiving standards for
- restrictions on commercial speech, a State may not curb protected
- expression without advancing a substantial governmental interest.
- Here, the ends sought by the State are not advanced by the speech
- restriction, and legitimate commercial speech is suppressed. For
- this reason, the Board's rule infringes upon Fane's right to
- speak, as guaranteed by the Constitution.
-
- The judgment of the Court of Appeals is
-
- Affirmed.
-
-
- Justice Blackmun, concurring.
-
- I join the Court's opinion, just as I joined Justice
- Stevens' recent opinion for the Court in Cincinnati v. Discovery
- Network, Inc., ___ U. S. ___ (1993), with the observation that I
- again disengage myself from any part thereof, or inference
- therefrom, that commercial speech that is free from fraud or
- duress or the advocacy of unlawful activity is entitled to only
- an -intermediate level,- see ante, at 5, of protection under the
- First Amendment's proscription of any law abridging the
- freedom of speech.
-
-
- Justice O'Connor, dissenting.
-
- I continue to believe that this Court took a wrong turn
- with Bates v. State Bar of Arizona, 433 U. S. 350 (1977), and
- that it has compounded this error by finding increasingly
- unprofessional forms of attorney advertising to be protected
- speech. See Zauderer v. Office of Disciplinary Counsel of
- Supreme Court of Ohio, 471 U. S. 626 (1985); Shapero v. Kentucky
- Bar Assn., 486 U. S. 466 (1988); Peel v. Attorney Registration
- and Disciplinary Comm'n of Ill., 496 U. S. 91 (1990) (plurality
- opinion). These cases consistently focus on whether the
- challenged advertisement directly harms the listener: whether it
- is false or misleading, or amounts to "overreaching, invasion of
- privacy, [or] the exercise of undue influence," Shapero, supra,
- at 475. This focus is too narrow. In my view, the States have
- the broader authority to prohibit commercial speech that, albeit
- not directly harmful to the listener, is inconsistent with the
- speaker's membership in a learned profession and therefore
- damaging to the profession and society at large. See Zauderer,
- supra, at 676-677 (O'Connor, J., concurring in part, concurring
- in judgment in part, and dissenting in part); Shapero, supra, at
- 488-491 (O'Connor, J., dissenting); Peel, supra, at 119
- (O'Connor, J., dissenting). In particular, the States may
- prohibit certain "forms of competition usual in the business
- world," Goldfarb v. Virginia State Bar, 421 U. S. 773, 792 (1975)
- (internal quotation marks omitted), on the grounds that pure
- profit seeking degrades the public spirited culture of the
- profession and that a particular profit-seeking practice is
- inadequately justified in terms of consumer welfare or other
- social benefits. Commercialization has an incremental, indirect,
- yet profound effect on professional culture, as lawyers know all
- too well.
-
- /* There is one problem in the dissent analysis. This is due to
- the fact that real estate brokers are permitted to solicit in any
- way that they want. For the average consumer the purchase of a
- home will be the largest, and most complicated, transaction that
- they will be involved with. Yet such important "professional" and
- licensed services are not regulated in the way that CPA's are.
- The dissent simply does not rationally differentiate between
- other licensed professionals advertising and CPA advertising. */
-
-
- But even if I agreed that the States may target only
- professional speech that directly harms the listener, I still
- would dissent in this case. Ohralik v. Ohio State Bar
- Assn., 436 U. S. 447 (1978), held that an attorney could
- be sanctioned for the in-person solicitation of two particularly
- vulnerable potential clients, because of the inherent risk under
- such circumstances that the attorney's speech would be directly
- harmful, and because a simple prohibition on fraud or
- overreaching would be difficult to enforce in the context of
- in-person solicitation. See id., at 464-468. The result reached
- by the majority today cannot be squared with Ohralik.
-
- Although Ohralik preceded Central Hudson Gas & Electric
- v. Public Service Comm'n of New York, 447 U. S. 557 (1980), this
- Court has understood Ohralik to mean that a rule prohibiting
- in-person solicitation by attorneys would satisfy the Central
- Hudson test. See Shapero, supra, at 472. Such a rule would
- "directly advanc[e] the governmental interest [and would not be]
- more extensive than is necessary to serve that interest." Central
- Hudson, supra, at 566. A substantial fraction of in-person
- solicitations are inherently conducive to overreaching or
- otherwise harmful speech, and these potentially harmful
- solicitations cannot be singled out in advance (or so a
- reasonable legislator could believe).
-
- I see no constitutional difference between a rule
- prohibiting in-person solicitation by attorneys, and a rule
- prohibiting in-person solicitation by certified public
- accountants (CPA's). The attorney's rhetorical power derives not
- only from his specific training in the art of persuasion, see
- ante, at 13, but more generally from his professional expertise.
- His certified status as an expert in a complex subject matter-
- the law-empowers the attorney to overawe inexpert clients. CPA's
- have an analogous power. The drafters of Fla. Admin. Code
- 21A-24.002(2)(c) (1992) reasonably could have envisioned
- circumstances analogous to those in Ohralik, where there is a
- substantial risk that the CPA will use his professional expertise
- to mislead or coerce a naive potential client.
-
- Indeed, the majority scrupulously declines to question
- the validity of Florida's rule. The majority never analyzes the
- rule itself under Central Hudson, cf. Posadas de Puerto Rico
- Associates v. Tourism Co. of Puerto Rico, 478 U.S. 328, 340-344
- (1986) (analyzing facial validity of law regulating commercial
- speech by employing Central Hudson test), but instead seeks to
- avoid this analysis by characterizing Fane's suit as an
- -as-applied- challenge. See ante, at 1, 5, 9, 12. I am surprised
- that the majority has taken this approach without explaining or
- even articulating the underlying assumption: that a commercial
- speaker can claim First Amendment protection for particular
- instances of prohibited commercial speech, even where the
- prohibitory law satisfies Central Hudson. Board of Trustees of
- State Univ. of N. Y. v. Fox, 492 U. S. 469 (1989), appears to say
- the opposite, see id., at 476-486, and we recently granted
- certiorari in a case that poses precisely this issue, see United
- States v. Edge Broadcasting Co., 506 U. S. ___ (1992).
-
- In any event, the instant case is not an -as-applied-
- challenge, in the sense that a speaker points to special features
- of his own speech as constitutionally protected from a valid law.
- Cf. Zauderer, supra, at 644. The majority obscures this point by
- stating that Florida's rule "cannot be sustained as applied to
- Fane's proposed speech," ante, at 5, and by paraphrasing Fane's
- affidavit at length to show that he does not propose to solicit
- vulnerable clients, ante, at 14. But I do not understand the
- relevance of that affidavit here, because the broad remedy
- granted by the District Court goes well beyond Fane's own speech.
- -Florida Administrative Code, 21A-24.002(2) and (3), places an
- unconstitutional ban on protected commercial speech in violation
- of the first . . . amendmen[t]. The Board of Accountancy and
- State are hereby enjoined from enforcing that regulation as it is
- ap plied to CPAs who seek clients through in-person, direct,
- uninvited solicitation in the business context.
- App. 88.
-
- Even if the majority is correct that a law satisfying Central
- Hudson cannot be applied to harmless commercial speech, and that
- Fane's proposed speech will indeed be harmless, these two
- premises do not justify an injunction against the enforcement of
- the antisolicitation rule to all CPA's.
-
- The majority also relies on the fact that petitioners
- were enjoined only from enforcing the rule in the -business
- context.- See ante, at 1, 9. Yet this narrowing of focus,
- without more, does not salvage the District Court's remedy. I
- fail to see why 21A-24.002(2)(c) should be valid overall, but not
- -in the business context.- Small businesses comprise the vast
- majority of business establishments in the United States, see U.
- S. Dept. of Commerce, Statistical Abstract of the United States
- 526 (1992). The drafters of Florida's rule reasonably could
- have believed that the average small businessman is no more
- sophisticated than the average individual who is wealthy enough
- to hire a CPA for his personal affairs.
-
- In short, I do not see how the result reached by the
- majority is consistent with the validity of 21A-24.002(2)(c). In
- failing to state otherwise, the majority implies that the rule
- itself satisfies Central Hudson, and I agree, but on that precise
- grounds I would reverse the judgment of the Court of Appeals.
-
-