CLAY, Circuit Judge.
Plaintiffs Discount Tobacco City & Lottery, Inc., et al., comprised of manufacturers and sellers of tobacco products, appeal the decision of the district court granting partial summary judgment to Defendants United States of America, et al., and partial summary judgment on Plaintiffs' claim that certain provisions of the Family Smoking Prevention and Tobacco Control Act, Pub.L. No. 111-31, 123 Stat. 1776 (2009), violate their rights to free speech under the First Amendment. Defendants cross-appeal.
For the reasons discussed below, we
We
Congress began regulating tobacco products in 1965 and has since passed major legislation regarding tobacco industry practices on at least six occasions. See Federal Cigarette Labeling and Advertising Act of 1965, Pub.L. 89-92, 79 Stat. 282 (introducing tobacco warning labels); Public Health Cigarette Smoking Act of 1969, Pub.L. 91-222, 84 Stat. 87 (banning television and radio advertisement of tobacco products); Alcohol and Drug Abuse Amendments of 1983, Pub.L. 98-24, 97 Stat. 175 (requiring the Department of Health and Human Services to research and report on tobacco); Comprehensive Smoking Education Act of 1984, Pub.L. 98-474, 98 Stat. 2200 (modifying warning labels); Comprehensive Smokeless Tobacco Health Education Act of 1986, Pub.L. 99-252, 100 Stat. 30 (extending restrictions to smokeless tobacco); Alcohol, Drug Abuse, and Mental Health Administration Reorganization Act of 1992, Pub.L. 102-321, § 202, 106 Stat. 394 (creating incentives for states to enforce tobacco sales restrictions). In 1996, the United States Food and Drug Administration ("FDA") attempted to assert its jurisdiction to further regulate the tobacco industry, but the Supreme Court found that the attempted regulation exceeded the FDA's agency authority. See Food and Drug Admin. v. Brown & Williamson Tobacco Corp., 529 U.S. 120,
As part of the FDA's 1996 rulemaking process, the FDA made several significant findings regarding tobacco use among juveniles. At that time, the FDA found that, "approximately 3 million American adolescents currently smoke and an additional 1 million adolescent males use smokeless tobacco. Eighty-two percent of adults who ever smoked had their first cigarette before the age of 18, and more than half of them had already become regular smokers by that age." 61 Fed. Reg. 44396-01, 44398 (Aug. 28, 1996). Relying on United States Surgeon General reports and studies from various medical journals, the FDA concluded that, "[a]n adolescent whose cigarette use continues into adulthood increases his or her risk of dying from cancer, cardiovascular disease, or lung disease. Moreover, the earlier a young person's smoking habit begins, the more likely he or she will become a heavy smoker and therefore suffer a greater risk of diseases caused by smoking." Id. at 44399. The FDA found that one-third of young people who become smokers "will die prematurely as a result," id. (internal citations omitted), becoming part of the approximately "440,000 people [who] die of diseases caused by smoking or other form of tobacco use[, constituting] . . . about 20 percent of all deaths in our nation." Family Smoking Prevention and Tobacco Control Act: Hearing on H.R. 1256 Before the Subcomm. on Commerce, Trade, and Consumer Protection, Comm. on Energy and Commerce, 111th Cong. 1 (2004) (statement of Vice Admiral Richard H. Carmona, United States Surgeon General).
More recently, the President's Cancer Panel reported that, "[e]very day, approximately 4,000 children under age 18 experiment with cigarettes for the first time; another 1,500 become regular smokers. Of those who become regular smokers, about half eventually will die from a disease caused by tobacco use." The President's Cancer Panel, Promoting Healthy Lifestyles: Policy, Program, and Personal Recommendations for Reducing Cancer Risk, 64 (2007).
This brief overview barely begins to scratch the surface of the problem of juvenile tobacco use and the government's repeated interventions into the practices of the tobacco industry. The government, in this case, has filed thousands of pages of medical studies and governmental reports supporting the conclusion that the use of tobacco, especially by juveniles, poses an enormous threat to the nation's health, and imposes grave costs on the government. The government has supplemented this information with copious documentation of the practices used by the industry, oftentimes directly aimed at juveniles and other times seriously effecting them, to maintain and increase tobacco use and dependency.
There can be no doubt that the government has a significant interest in preventing juvenile smoking and in warning the general public about the harms associated with the use of tobacco products. (See, e.g., U.S. Dep't of Health and Human Serv., Preventing Tobacco Use Among Young People; A Report of the Surgeon General, 5 (1994) (concluding that "[n]early all first use of tobacco occurs before high school graduation; this finding suggests that if adolescents can be kept tobacco-free, most will never start using tobacco").) The Supreme Court made clear that for these reasons, "[t]he State's interest in preventing underage tobacco use is substantial, and even compelling."
Nonetheless, as the Supreme Court has recognized, "the sale and use of tobacco products by adults is a legal activity. [The courts] must consider that tobacco retailers and manufacturers have an interest in conveying truthful information about their products to adults, and adults have a corresponding interest in receiving truthful information about tobacco products." Id.
On June 22, 2009, the President signed into law the Family Smoking Prevention and Tobacco Control Act ("FSPTCA" or the "Act"), Pub.L. No. 111-31, 123 Stat. 1776 (2009). The stated purpose of the Act is to provide authority to the FDA to regulate tobacco products, in order to "address issues of particular concern to public health officials, including the use of tobacco by young people and dependance on tobacco." Pub.L. No. 111-31, § 3(2). In addition, the Act seeks "to promote cessation [of tobacco use] to reduce disease risk and the social costs associated with tobacco-related diseases." Id. § 3(9). As part and parcel of this purpose, the Act regulates not only the sale of tobacco products, but also the advertising and marketing of those products, which are the provisions of the Act at issue in this case.
Now challenged are the Act's requirements (1) that tobacco manufacturers reserve a significant portion of tobacco packaging for the display of health warnings, including graphic images intended to illustrate the hazards of smoking; (2) restrictions on the commercial marketing of so-called "modified risk tobacco products;" (3) ban of statements that implicitly or explicitly convey the impression that tobacco products are approved by, or safer by virtue of being regulated by, the FDA; (4) restriction on the advertising of tobacco products to black text on a white background in most media; and (5) bar on the distribution of free samples of tobacco products in most locations, brand-name tobacco sponsorship of any athletic or social event, branded merchandising of any non-tobacco product, and distribution of free items in consideration of a tobacco purchase (i.e., "continuity programs").
In promulgating the Act, Congress made several legislative findings that are of particular relevance to this case (the "Legislative Findings"). Congress found that (1) "[t]he use of tobacco products by the Nation's children is a pediatric disease of considerable proportions that results in new generations of tobacco-dependent children and adults," Pub.L. No. 111-31, § 2(1); (2) "[v]irtually all new users of tobacco products are under the minimum legal age to purchase such products," id. § 2(4); (3) "past efforts to restrict advertising and marketing of tobacco products have failed adequately to curb tobacco use by adolescents," id. § 2(6); (4) "[a]dvertising, marketing, and promotion of tobacco products have been especially directed to attract young persons to use tobacco products, and these efforts have resulted in increased use of such products by youth," id. § 2(15); (5) "[c]hildren are exposed to substantial and unavoidable tobacco advertising that leads to favorable beliefs about tobacco use, plays a role in leading young people to overestimate the prevalence of tobacco use, and increases the number of young people who begin to use tobacco,"
On August 31, 2009, Plaintiffs, a group of manufacturers and sellers of tobacco products,
Both parties filed motions for summary judgment. After an evidentiary hearing and the submission of declarations and supporting materials by both parties, the district court, on November 5, 2009, granted summary judgment to Plaintiffs on their claims that the ban on color and graphics in advertising and the ban on statements implying that tobacco products are safer due to FDA regulation violated their First Amendment speech rights. The district court granted summary judgment to the government on all other claims.
We review de novo a district court's decision to grant or deny summary judgment. Rodgers v. Monumental Life Ins. Co., 289 F.3d 442, 448 (6th Cir.2002). Summary judgement may only be granted where "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a). In determining whether summary judgement is appropriate, all inferences are to be made in favor of the non-moving party, and all evidence construed in the light most favorable to that party. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986).
"In reviewing the constitutionality of a statute, courts must accord substantial deference to the predictive judgments of Congress." Turner Broad. Sys., Inc. v. Fed. Commc'ns Comm'n, 520 U.S. 180, 195, 117 S.Ct. 1174, 137 L.Ed.2d 369 (1997). The Court must also give deference to Congress' evaluation of the evidence informing its legislative decisions. "The question is not whether Congress, as an objective matter, was correct [in its] determin[ations].... Rather, the question is whether the legislative conclusion was reasonable and supported by substantial evidence in the record before Congress." Id. at 211, 117 S.Ct. 1174.
"Even in the realm of First Amendment questions where Congress must base its conclusions upon substantial evidence, deference must be accorded to its findings as to the harm to be avoided and to the remedial measures adopted for that end, lest [a court] infringe on traditional legislative authority to make predictive judgments when enacting nationwide
In this case, Plaintiffs label their claims as both facial and as-applied challenges to the Act, but because the "plaintiffs' claim and the relief that would follow... reach beyond the particular circumstances of these plaintiffs," the claims that are raised are properly reviewed as facial challenges to the Act. John Doe No. 1 v. Reed, ___ U.S. ___, 130 S.Ct. 2811, 2817, 177 L.Ed.2d 493 (2010). "To succeed in a typical facial attack, [a plaintiff] would have to establish that no set of circumstances exists under which [the statute] would be valid, or that the statute lacks any plainly legitimate sweep." United States v. Stevens, ___ U.S. ___, 130 S.Ct. 1577, 1587, 176 L.Ed.2d 435 (2010) (internal citations and quotation marks omitted).
In reviewing a facial challenge to legislation, we must bear in mind that, facial challenges are disfavored for several reasons. Claims of facial invalidity often rest on speculation. As a consequence, they raise the risk of "premature interpretatio[n] of statutes on the basis of factually barebones records." Sabri v. United States, 541 U.S. 600, 609, 124 S.Ct. 1941, 158 L.Ed.2d 891 (2004) (internal quotation marks omitted). We must also be mindful that, "`[a] ruling of unconstitutionality frustrates the intent of the elected representatives of the people.'" Ayotte v. Planned Parenthood of N. New Eng., 546 U.S. 320, 329, 126 S.Ct. 961, 163 L.Ed.2d 812 (2006) (quoting Regan v. Time, Inc., 468 U.S. 641, 652, 104 S.Ct. 3262, 82 L.Ed.2d 487 (1984)).
In order to determine whether the challenged provisions of the FSPTCA pass constitutional muster, we must first consider the level of scrutiny applicable to the Act. Plaintiffs argue that we should review the Act under strict scrutiny, though they concede that precedent dictates that we review most provisions of the Act as restrictions on commercial speech, which are analyzed under a different and less rigorous standard. (First Br. at 19 n. 4.) We see no reason to now upend the longstanding approach that the courts have taken respecting restrictions on commercial speech in favor of Plaintiffs' suggestion. We review the Act's restrictions on commercial speech, subject to the framework initially set forth in Central Hudson Gas & Elec. Corp. v. Public Serv. Comm'n of N.Y., 447 U.S. 557, 100 S.Ct. 2343, 65 L.Ed.2d 341 (1980), and Zauderer v. Office of Disciplinary Counsel of the Sup. Ct. of Ohio, 471 U.S. 626, 105 S.Ct. 2265, 85 L.Ed.2d 652 (1985). We now turn to that framework.
It is well-established that, "[e]ven though government is under no obligation to provide a person, or the public, a particular benefit, it does not follow that conferral of the benefit may be conditioned on the surrender of a constitutional right." 44 Liquormart, Inc. v. R.I., 517 U.S. 484, 513, 116 S.Ct. 1495, 134 L.Ed.2d 711 (1996). Therefore, in determining whether a restriction to the tobacco industry's commercial speech is permissible under the First Amendment, we first look to the test outlined in Central Hudson. Under that test, we first,
447 U.S. at 566, 100 S.Ct. 2343.
The last two steps of the Central Hudson test are complementary. They involve "asking whether the speech restriction is not more extensive than necessary to serve the interests that support it." Lorillard Tobacco Co., 533 U.S. at 556, 121 S.Ct. 2404 (internal quotation marks omitted); see also Posadas de Puerto Rico Assoc. v. Tourism Co. of P.R., 478 U.S. 328, 341, 106 S.Ct. 2968, 92 L.Ed.2d 266 (1986) (describing "[t]he last two steps of the Central Hudson analysis [as] basically involv[ing] a consideration of the `fit' between the legislature's ends and the means chosen to accomplish those ends").
In analyzing "the Central Hudson factor concerning whether the regulation of commercial speech directly advances the governmental interest asserted," the Supreme Court has stated,
Rubin v. Coors Brewing Co., 514 U.S. 476, 486-87, 115 S.Ct. 1585, 131 L.Ed.2d 532 (1995) (internal citations and quotation marks omitted). Though we must arrive at our own conclusions regarding the "fit" of the Act, "[o]ur commercial speech cases recognize some room for the exercise of legislative judgment." 44 Liquormart, Inc., 517 U.S. at 508, 116 S.Ct. 1495.
The Supreme Court has clarified that, "the least restrictive means is not the standard; instead, the case law requires a reasonable fit between the legislature's ends and the means chosen to accomplish those ends, a means narrowly tailored to achieve the desired objective." Lorillard Tobacco Co., 533 U.S. at 556, 121 S.Ct. 2404 (alteration in original) (internal citation and quotation marks omitted). Even though this Court must only find a reasonable fit between means and ends to uphold each challenged provision of the Act, "if there are numerous and obvious less-burdensome alternatives to the restriction on commercial speech, that is certainly a relevant consideration in determining whether the `fit' between ends and means is reasonable." City of Cincinnati v. Discovery Network, Inc., 507 U.S. 410, 417 n. 13, 113 S.Ct. 1505, 123 L.Ed.2d 99 (1993); see also Rubin, 514 U.S. at 491, 115 S.Ct. 1585 (finding that "the availability of alternatives that would prove less intrusive to the First Amendment's protections for commercial speech" further highlighted the statute's defects.)
Because the Central Hudson test does not govern commercial speech that is false, deceptive or misleading, if commercial speech is so categorized, we apply a different test to determine whether a restriction, or disclosure requirement, is unconstitutional. See Sorrell v. IMS Health Inc., ___ U.S. ___, 131 S.Ct. 2653, 2674, 180 L.Ed.2d 544 (2011) (Breyer, J., dissenting) (citing cases where "the [Supreme] Court has found that `sales practices' that are `misleading, deceptive, or aggressive' lack the protection of even this `intermediate' [Central Hudson] standard"). We have recently clarified our approach to misleading or deceptive commercial
This approach is consistent with well-settled precedent. The Supreme Court has stated that:
Va. State Bd. of Pharmacy v. Va. Citizens Consumer Council, Inc., 425 U.S. 748, 771-72, 96 S.Ct. 1817, 48 L.Ed.2d 346 (1976) (internal citations omitted) (emphasis added). As set forth in Zauderer, in the case of misleading or potentially misleading commercial speech, "an advertiser's rights are adequately protected as long as disclosure requirements are reasonably related to the State's interest in preventing deception of consumers," and not "unjustified or unduly burdensome." Zauderer, 471 U.S. at 651, 105 S.Ct. 2265.
Though the government has more leeway to regulate potentially misleading commercial speech than it does in the context of truthful and nonmisleading commercial speech, it "may not place an absolute prohibition on certain types of potentially misleading information ... if the information also may be presented in a way that is not deceptive." In re R.M.J., 455 U.S. 191, 203, 102 S.Ct. 929, 71 L.Ed.2d 64 (1982).
We begin our analysis by considering whether the new mandated warnings on tobacco-products packaging and advertising violate the First Amendment.
In addition to continuing and expanding upon the requirement that tobacco packaging carry one of the approved "Surgeon General's Warning" labels, the FSPTCA requires that tobacco manufacturers reserve a significant portion of their packaging—the top 50% of the front and back of cigarette packaging, 30% of the front and back of smokeless tobacco packaging, and 20% of tobacco advertising—for full color, graphic health warnings issued by the FDA. 15 U.S.C. §§ 1333, 4402(2)(A). The Act mandates that the FDA shall, within 24 months of the enactment of the FSPTCA, "issue regulations that require color graphics depicting the negative health consequences of smoking to accompany the label statements." Pub.L. No. 111-31, § 201(d).
Plaintiffs contend that "the scale and intrusiveness of the new warnings far outweighs any legitimate interest in conveying factual information to prevent consumer confusion, particularly since consumers already overestimate these health risks." (First Br. at 19 (emphasis in original).) Because consumers already understand the health risks of smoking, Plaintiffs argue, the additional scope of the warning labels is unjustified. (Id. at 21.) Plaintiffs further state that the new warning requirements are unduly burdensome because they effectively overshadow and dominate Plaintiffs' speech. (Id. at 24-25.)
Citing, among other sources, a 2007 Institute of Medicine of the National Academies report, the government counters that an information deficit still exists, especially among juveniles, regarding the dangers of tobacco use. According to the report, "research suggests that adolescents misperceive the magnitude of smoking harms and the addictive properties of tobacco and fail to appreciate the long-term dangers of smoking, especially when they apply the dangers to their own behavior.... These distorted risk perceptions are associated with adolescents' decisions to initiate tobacco use, a decision that they will later regret." Institute of Medicine Report, Ending the Tobacco Problem: A Blueprint for the Nation, 93 (2007) (hereafter, 2007 IOM Report).
Although the government concedes the Plaintiffs' repeatedly cited contention that adolescents significantly overestimate the risk of developing lung cancer as a result of smoking, the government provides evidence that adolescents underestimate the degree to which smoking can shorten life and the likelihood that they will suffer tobacco-related disease, and that both adolescent and adult smokers were more than twice as likely as nonsmokers to doubt that tobacco use, even for a period of 30 to 40 years, would cause death. (Id. at 89-90); see also United States v. Philip Morris USA, Inc., 449 F.Supp.2d 1, 578 (D.D.C. 2006) (finding that "[m]ost people do not have a complete understanding of the many serious diseases caused by smoking, the true nature of addiction, or what it would be like to experience either those diseases or addiction itself. Rather, most people have only a superficial awareness that smoking is dangerous.").
The government argues that the purpose of the new warning label requirement "`is not to stigmatize the use of tobacco products on the industry's dime; it is to ensure that the health risk message is actually seen by consumers in the first instance.'" (Second Br. at 22) (quoting Commonwealth Brands, Inc. v. United States, 678 F.Supp.2d 512, 530 (W.D.Ky. 2010)). Furthermore, conveying the health risks of tobacco use in the manner mandated by the Act is not unduly burdensome on Plaintiffs' speech, the government argues, as "`half of cigarette packs, 70% of smokeless tobacco packages, and 80% of advertisements remain available for [Plaintiffs'] speech.'" (Id. at 28 (quoting Commonwealth Brands, Inc., 678 F.Supp.2d at 531)).
Plaintiffs argue that "the Government must survive strict scrutiny [because it is] attempt[ing] to convert commercial speakers into its mouthpiece for a `subjective and highly controversial' marketing campaign expressing its disapproval of their lawful products." (First Br. at 19) (quoting Entm't Software Ass'n v. Blagojevich, 469 F.3d 641, 652 (7th Cir.2006).)
As a threshold matter, there is no indication that the textual element of the new warning labels, when viewed in isolation, express either completely "subjective" or
Similarly, the Act requires that the images issued by the FDA visually "depict[] the negative health consequences of smoking" in accompaniment with the label's textual warnings. Pub.L. No. 111-31, § 201(d). But, in contrast to the textual warnings, there can be no doubt that the FDA's choice of visual images is subjective, and that graphic, full-color images, because of the inherently persuasive character of the visual medium, cannot be presumed neutral.
Because visual images are subjective and cannot be categorized as mere health disclosure warnings, Plaintiffs' argument for strict scrutiny is not wholly unpersuasive. Relying on a case from the Seventh Circuit, Entm't Software Ass'n v. Blagojevich, Plaintiffs argue that the new warning labels must be analyzed as a content-based restriction on speech, subject to strict scrutiny. See 469 F.3d at 645-46 (employing strict scrutiny to review of an Illinois law restricting sales of certain video games to minors and requiring a label deeming a game "sexually explicit"). This approach finds a measure of additional support in the Supreme Court's recent decision in Brown v. Entm't Merchants Ass'n, ___ U.S. ___, 131 S.Ct. 2729, 2738, 180 L.Ed.2d 708 (2011).
In Entertainment Merchants, the Supreme Court reviewed a California law that prohibited the sale of "violent" video games to minors and required labels bearing the number "18" to be placed on certain video games sold to minors. The Court applied strict scrutiny to the law, having determined that the requirements imposed by the state constituted a "restriction on the content of protected speech." Id.
But both Entertainment Merchants and Blagojevich are distinguishable from the case now before us, because both involved not just warning requirements, but also affirmative limitations on speech (in the
Nearly fifty years ago, the Supreme Court upheld the proposition that, "[t]o avoid giving a false impression that smoking [is] innocuous, the cigarette manufacturer who represents the alleged pleasures or satisfactions of cigarette smoking in his advertising must also disclose the serious risks to life that smoking involves." Cipollone v. Liggett Group, Inc., 505 U.S. 504, 527, 112 S.Ct. 2608, 120 L.Ed.2d 407 (1992) (quoting 29 Fed.Reg. 8356 (1964)). Like other disclosures governed by the Zauderer standard, these tobacco disclosures may "appear in such a form, or include such additional information, warnings, and disclaimers, as are necessary to prevent its being deceptive." Va. State Bd. of Pharmacy, 425 U.S. at 772 n. 24, 96 S.Ct. 1817. Plaintiffs argument for strict scrutiny is therefore unsupported.
Although I join in this opinion, the issues presented by § 201(d) of the Act concerning the use of color graphic warning labels should have resulted in a reversal of this aspect of the district court's opinion, and for that reason I disagree with my two colleagues on this issue.
There is general agreement in this Court that even though disclosure requirements, such as the warning labels mandated by the Act, may be constitutionally
There is also agreement that Plaintiffs' argument that consumers are already adequately aware of the health risks associated with tobacco is not widely accepted. As summarized above, the government has presented abundant evidence to support Congress' findings that juveniles are not sufficiently aware of the actual risks of tobacco use. Furthermore, the record reveals that current tobacco warning labels fail to convey health information effectively. The primary deficiency in the form of the current warnings is that they are easily overlooked. See Family Smoking Prevention and Tobacco Control Act: Hearing on H.R. 1108, Before the H. Subcomm. on Health of the Comm. on Energy and Commerce, 110th Cong. 42 (2007) (finding that "more than 40 percent of subjects did not even view the warning," and "an additional 20 percent looked at the warning but failed to actually read it"); (see also Lila J. Finney Rutten et al., Smoking knowledge and behavior in the United States: Sociodemographic, smoking status, and geographic patterns, 10 Nicotine & Tobacco Research 10, 1570 (Oct.2008) (concluding that "much work remains to be done to accurately and evenly inform American adults of the health consequences of tobacco use").)
Where I part with the majority is on what I consider to be a constitutional flaw in the requirement for color graphic warning labels. Though the government attempts to analogize the graphic pictorial warnings of the type mandated by the Act to the extensive warnings imposed on over-the-counter drugs, such an analogy is not convincing. First, while the government mandates extensive textual warnings on drugs, it does not require color graphics. Secondly, drug warnings present purely factual information, with no subjective component. The requirement imposed by the FSPTCA—that a product manufacturer place a large scale color graphic on a product warning label—is simply unprecedented.
Although the government has demonstrated that an information deficit still exists among potential tobacco consumers, which may render warning-less tobacco products inherently deceptive, it has not adequately shown that the inclusion of color graphic warning labels is a properly or reasonably tailored response to address that harm. It appears, from the government's own evidence, that the color graphic warning labels are intended to create a visceral reaction in the consumer, in order to make a consumer less emotionally likely to use or purchase a tobacco product.
As summarized by one of the few available studies addressing the issue of graphic tobacco warning labels on the U.S. audience:
Ellen Peters et al., The impact and acceptability of Canadian-style cigarette warning
While it is permissible for the government to require a product manufacturer to provide truthful information, even if perhaps frightening, to the public in an effort to warn it of potential harms, it is less clearly permissible for the government to simply frighten consumers or to otherwise attempt to flagrantly manipulate the emotions of consumers as it seeks to do here.
As the government acknowledges in its argument in support of upholding the Act's ban on color and graphics in tobacco industry advertisements, colorful graphic images can evoke a visceral response that subsumes rationale decision-making. This principle applies equally when seeking to discourage behavior.
The government failed to provide sufficient evidence to persuade me that the color graphics requirement is a reasonably tailored solution. See Thompson v. Western States Med. Ctr., 535 U.S. 357, 373, 122 S.Ct. 1497, 152 L.Ed.2d 563 (2002) (finding that "[i]t is well established that `the party seeking to uphold a restriction on commercial speech carries the burden of justifying it'") (quoting Edenfield v. Fane, 507 U.S. 761, 770, 113 S.Ct. 1792, 123 L.Ed.2d 543 (1993)). In Thompson, licensed pharmacists challenged the provisions of the Food and Drug Administration Modernization Act ("FDAMA"), which prohibited advertising and promotion of particular compounded drugs. The provisions of the FDAMA required pharmacists who advertised compounded drugs to undergo FDA approval. Respondents specialized in drug compounding and frequently distributed information and promotional materials to "inform patients and physicians of the use and effectiveness of specific compounded drugs." Id. at 365, 122 S.Ct. 1497. Respondents argued that the FDAMA provisions violated the First Amendment and were unconstitutional restrictions on commercial speech. The government identified three substantial interests in the FDAMA: (1) "preserv[ing] the effectiveness and integrity of the FDCA's new drug approval process and the protection of the public health that it provides;" (2) "preserv[ing] the availability of compounded drugs for those individual patients who, for particularized medical reasons, cannot use commercially available products that have been approved by the FDA"; and (3) "[a]chieving the proper balance between those two independently compelling but competing interests is itself a substantial governmental interest." Id. at 368, 122 S.Ct. 1497. The Supreme Court held that the FDAMA provisions prohibiting advertising and promotion of compounded drugs unconstitutional because the government "has not offered any reason why these possibilities, alone or in combination, would be insufficient to prevent compounding from occurring on such a scale as to undermine the new drug approval process." Id. at 373, 122 S.Ct. 1497.
This Court has also accepted the proposition that the state must fully consider other options when weighing the suppression of speech to address a public policy concern. See BellSouth Telecommunications, Inc. v. Farris, 542 F.3d 499, 508-509 (6th Cir.2008) (finding that provisions in the Kentucky's Tax Injunction Act, which prohibited telecommunications providers from identifying a new tax on consumers' bills, violated the First Amendment because the government failed to consider other alternatives before suppressing speech to address a policy problem). In all instances, any government solution must take into account both the intended and the unintended restriction on the rights afforded by the First Amendment.
Though the hurdle that Zauderer erects for the government is a relatively low one, it is still a hurdle that the government must surmount in order to uphold the form of the warning label requirement that it seeks to impose on the tobacco industry. While courts have been resistant to strike down disclosure requirements under Zauderer, if Zauderer does in fact create a line, then it is clear that some types of disclosure requirements must cross that line. The requirement embodied in § 201(4)(d) of the Act crosses the line. Accordingly, I would find the portion of the provision requiring color graphic images to accompany the textual warnings on tobacco product packaging unconstitutional, and I would REVERSE the decision of the district court on that issue.
With regard to the increased size and placement requirement of the textural warnings on tobacco packaging, the government has demonstrated that the Act's requirements are reasonably tailored to overcoming the informational deficit regarding tobacco harms. See Zauderer, 471 U.S. at 651, 105 S.Ct. 2265. The government has illustrated, as Congress found, that larger warnings materially affect consumers' awareness of the health consequences of smoking and decisions regarding tobacco use.
Plaintiffs' argument that the provision is unduly burdensome because the scale of the warning label drowns out their speech is unpersuasive. The government has provided ample evidence supporting the size requirement for the new labels, (see, e.g., World Health Organization, WHO
For these reasons, we
We now consider whether the Act's requirement that harm reduction claims relating to modified risk tobacco products pass pre-market review is an unconstitutional restriction of free speech.
Under the so-called modified risk tobacco product rule ("MRTPR"), Plaintiffs may only commercially market a product as a "modified risk" if, after application to the FDA, it is determined that the product, "as it is actually used by consumers, will— (A) significantly reduce harm and the risk of tobacco-related disease to individual tobacco users; and (B) benefit the health of the population as a whole taking into account both users of tobacco products and persons who do not currently use tobacco products." Pub.L. No. 111-31, § 911(g)(1) (codified at 21 U.S.C. § 387k(g)(1)).
Under the Act, "[t]he term `modified risk tobacco product' means any tobacco product that is sold or distributed for use to reduce harm or the risk of tobacco-related disease associated with commercially marketed tobacco products." Id. § 911(b)(1). A tobacco product will be considered to be "sold or distributed" for the these purposes if:
Id. § 911(b)(2)(A).
Plaintiffs argue that the provision is overbroad because, as they explain, it applies to "Plaintiffs' participation in the public-health debate concerning tobacco harm reduction, even when that debate plays out in scientific symposia, regulatory press releases, or news programming such as 60 Minutes, and even when Plaintiffs limit their speech to discussions of generic product categories like smoke-free tobacco products." (First Br. at 29-30.) Therefore, Plaintiffs contend, the MRTPR effectively "shut[s them] out of the public-policy debate over the role of reduced-risk products in a tobacco harm-reduction strategy," (id. at 28), and constitutes an impermissible "viewpoint-based restriction on one class of speakers in a political debate," (id. at 16), and a prior restraint on free speech. (Id. at 28.)
The government categorizes the MRTPR as a "pre-market review of purported reduced-risk tobacco products parallel[ing] preexisting FDCA provisions applicable to drugs." (Second Br. at 34.) It is the government's position that "[t]he purpose of pre-market review is to evaluate the manufacturer's evidence that the product will, in fact, achieve its claimed purpose," (id. at 36), and as such the MRTPR does not implicate the First Amendment. (Id. at 34.) Alternatively, the government argues that the MRTPR meets the test set forth in Central Hudson for government regulation of commercial speech.
Plaintiffs argue that the MRTPR is a prior restraint on intertwined political and commercial speech, which must be reviewed under strict scrutiny. (First Br. at 28.) The district court agreed with this categorization, and analyzed the MRTPR accordingly. Commonwealth Brands, Inc., 678 F.Supp.2d at 533.
Though the MRTPR is a regulatory scheme that prohibits Plaintiffs from making certain statements about tobacco products before receiving approval from the FDA, Plaintiffs offer no authority to support the conclusion that this regulation of commercial speech requires the strict scrutiny and presumption of constitutional invalidity afforded to laws effecting a prior restraint on protected non-commercial speech. Instead, the Supreme Court has, on several occasions "observed that commercial speech is such a sturdy brand of expression that traditional prior restraint doctrine may not apply to it." Central Hudson, 447 U.S. at 571 n. 13, 100 S.Ct. 2343; see also Zauderer, 471 U.S. at 668 n. 13, 105 S.Ct. 2265; Virginia State Bd. of Pharmacy, 425 U.S. at 771-72 n. 24, 96 S.Ct. 1817.
Plaintiffs attempt to circumvent the distinction between commercial and non-commercial speech by arguing that their "supposedly `commercial speech' is `inextricably intertwined with otherwise fully protected speech' and thus still governed by the `test
The Supreme Court has stated that utterances may:
Bolger v. Youngs Drug Prod. Corp., 463 U.S. 60, 67-68, 103 S.Ct. 2875, 77 L.Ed.2d 469 (1983) (internal citations and quotation marks omitted).
In this case, because Plaintiffs' ability to make "direct comments on public issues" remains untouched, "[t]here is no basis in the record to believe that the Act will be interpreted or applied to infringe significantly on noncommercial speech rights." San Francisco Arts & Athletics, Inc. v. United States Olympic Comm., 483 U.S. 522, 537 n. 15, 107 S.Ct. 2971, 97 L.Ed.2d 427 (1987). Thus, this Court is left with Plaintiffs' "action directed to consumers through the media or otherwise... respecting the product," 21 U.S.C. § 387k(b)(2)(A), which we find to be commercial speech properly analyzed under Central Hudson.
Plaintiffs argue that "[t]he MRTPR plainly ensnares truthful, non-misleading speech," because the provision restricts them from making claims of individual harm reduction, "even if Plaintiffs' speech unambiguously disavows any population-wide health benefit," (First Br. at 33); the provision restricts them from marketing tobacco products as additive-free to appeal to naturalists and smokers who prefer organic products, even when such preferences are not linked to perceptions of health benefit, (id. at 34); and the provision, though it explicitly exempts the marketing of smokeless tobacco products as "smokeless" or "smoke free," prevents manufacturers from "explain[ing] the relative health significance" of those designations. (Id. at 34-35.) Finally, Plaintiffs argue that the restrictions embodied in the MRTPR do not materially advance the government's interests, and are not narrowly tailored to those interests. (Id.)
The government responds that "[t]he statutory provision requiring premarket review of purported reduced-risk tobacco products parallels preexisting FDCA provisions applicable to drugs and, like the drug provisions, it presents no First Amendment problem." (Second Br. at 34.) Alternatively, the government argues that the MRTPR survives analysis under Central Hudson. (Id. at 40.) To the government's primary argument, Plaintiffs reply that "there is no cognizable First Amendment difference between a law that directly proscribes promotional speech and one that renders a product's sale illegal based on promotional speech." (Third Br. at 48.) As such, Plaintiffs state that the provision must withstand First Amendment analysis. We agree with Plaintiffs, and therefore proceed to the government's alternative argument. See Brown & Williamson Tobacco Corp., 529 U.S. at 142, 120 S.Ct. 1291 (rejecting attempt to make similar analogy to the FDA's regulation of drugs).
Under Central Hudson, we first "determine whether the expression is protected by the First Amendment." 447 U.S. at 566, 100 S.Ct. 2343. While the government's position is largely based on its claim that Plaintiffs' speech regarding modified risk tobacco products is, and has historically been, misleading, the MRTPR must still survive the scrutiny dictated by Central Hudson, as the provision undoubtedly ensnares some speech which may be completely truthful and nonmisleading. The regulation of such truthful commercial speech is not exempted from the First Amendment analysis in Central Hudson, and we therefore proceed to step two, which requires us to determine whether the interest declared by the government is substantial.
Contrary to Plaintiffs' assertions, the interest that the government seeks to advance through the MRTPR is not the risk that the public will become overly informed regarding the relative risks of various tobacco products, but instead the risk that the tobacco industry will make fraudulent claims regarding the relative health benefits of the products that it markets. (See Second Br. at 32 ("Congress's decision to require pre-market review was informed by the tobacco industry's long history of marketing of `low tar' cigarettes with misleading health claims." (citing Legislative Findings 38 and 39, Pub.L. No. 111-31, §§ 2(38)-(39)))); see also Philip Morris, 449 F.Supp.2d at 430 (finding that,
When a prohibition is intended to prevent consumer deception, the burden lies with the government to "demonstrate that the harms it recites are real and that its restriction will in fact alleviate them to a material degree." Ibanez v. Fla. Dep't of Bus. & Prof'l Reg., Bd. of Accountancy, 512 U.S. 136, 146, 114 S.Ct. 2084, 129 L.Ed.2d 118 (1994). "[A] State's paternalistic assumption that the public will use truthful, nonmisleading commercial information unwisely cannot justify a decision to suppress it," 44 Liquormart, Inc., 517 U.S. at 497, 116 S.Ct. 1495, and will not support a finding of a substantial state interest. This limitation is enforced even where the pervasiveness of such information might persuade the public to make what the government perceives as a bad choice, because "[t]he First Amendment directs us to be especially skeptical of regulations that seek to keep people in the dark for what the government perceives to be their own good." Id. at 503, 116 S.Ct. 1495.
"Evidence in the congressional record demonstrating a pattern of [potentially deceptive] advertisements ... [may be] adequate to establish ... the likelihood of deception." Milavetz, Gallop & Milavetz, P.A. v. United States, ___ U.S. ___, 130 S.Ct. 1324, 1340, 176 L.Ed.2d 79 (2010). There is ample caselaw, cited by the government, to support the conclusion that tobacco manufacturers have historically "marketed and promoted their low tar brands to smokers—who were concerned about the health hazards of smoking or considering quitting—as less harmful than full flavor cigarettes despite either lacking evidence to substantiate their claims or knowing them to be false." United States v. Philip Morris USA Inc., 566 F.3d 1095, 1107 (D.C.Cir.2009); see also Altria Group, Inc. v. Good, 555 U.S. 70, 87-91, 129 S.Ct. 538, 172 L.Ed.2d 398 (2008) (providing an overview of the tobacco industry's misleading use of descriptors such as "low tar" and "light").
The same can be said for the tobacco industry's marketing of smokeless tobacco products as safe alternatives to smoking. See, e.g., National Survey on Drug Use and Health, Smokeless Tobacco Use, Initiation, and Relationship to Cigarette Smoking: 2002 to 2007, 4 (Mar.2009) ("Combined data from 2002 to 2007 indicate that an annual average of 1.1 million persons initiated use of smokeless tobacco in the past 12 months.... Initiation of smokeless tobacco in the past 12 months was more likely to occur among youths aged 12 to 17 than among young adults aged 18 to 25.... Both of these age groups had higher rates of initiation than adults aged 26 or older."). This evidence is sufficient to satisfy the government's burden of demonstrating a pattern of deception.
There is no question that the harm caused by the tobacco industry's use of misleading advertising and marketing tactics regarding the relative risks of certain tobacco products is real and significant. Exemplifying this is the fact that the market share for "low tar" cigarettes increased from 2% of sales in 1967 to 81.9%
The government has also satisfied the final inquiries under Central Hudson, regarding the fit and the tailoring of the measure. As discussed above, the MRTPR only applies to claims "directed to consumers through the media or otherwise... respecting the product," or on the labeling or advertising of the product. See Pub.L. No. 111-31, § 911(b)(2)(A). There is no indication that the provision suppresses non-commercial speech relating to nonspecific tobacco products. Plaintiffs' claims that the MRTPR also encompasses their marketing of tobacco products as "additive-free" to appeal to naturalists and smokers who prefer organic products, even when such preferences are not linked to perceptions of health benefit, (First Br. at 34), does not alter this conclusion. Plaintiffs have presented no evidence to suggest that "consumers who prefer organic products for environmental or other reasons... [but do not] perceive [them] ... to convey a health benefit," (id.), actually exist. On the contrary, we may safely presume that naturalists and those who subscribe to organic products do not engage in unmotivated or arbitrary behavior—common sense dictates the conclusion that they prefer such products precisely because they believe that natural and organic products confer health advantages over conventional products. See Centers for Disease Control and Prevention ("CDC"), Low-Yield Cigarettes and Cigarette-Like Products, 1 (2009) (finding that "[m]any smokers consider smoking ... additive-free cigarettes to be safer than smoking regular cigarettes"). Consequently, Plaintiffs' attempt to de-link hypothetical consumers' preferences for "organic" and "additive-free" products from general health concerns is unsustainable.
The MRTPR's requirement that Plaintiffs demonstrate harm reduction at both the individual and general level also survives Central Hudson's fit and tailoring test. A claim that a product is less risky if it reduces harm to an individual, when that harm is externalized to others, is inherently misleading. Further, if the marketing of a product as "modified risk" raises the aggregate number of people (especially juveniles) who use tobacco because it leads them to believe than an unsafe product is relatively safe, instead of merely affecting the apportionment of current users, then the government's compelling interest in reducing juvenile tobacco use is not met. See 21 U.S.C. § 387k(g)(4) (specifically listing risk "that existing users of tobacco products who would otherwise stop using such products will switch to the tobacco product that is the subject of the application" and "likelihood that persons who do not use tobacco products will start using the tobacco product that is the subject of the application"); (C.M. Carpenter et al., Developing smokeless tobacco products for smokers: an examination of tobacco industry documents, 18 Tobacco Control 54, 54 (2009)) (concluding that "[h]eavy marketing of new SLT [smokeless tobacco] products may encourage dual use and result in unknown public health effects.... These products may pose significant challenges to efforts by federal agencies to reduce harm caused by tobacco use").
We have no reason to upend—or intrude upon—Congress' determination and "express[] reject[ion of] the idea that requiring disclaimers for modified risk tobacco products would be effective ... [based on the finding] that consumers have misinterpreted advertisements in which one product is claimed to be less harmful than a comparable product, even in the presence of disclosures and advisories intended to provide clarification." (Second Br. at 43) (citing Legislative Findings 41 and 42, Pub.L. No. 111-31, §§ 2(41)-(42).) Nor do we see reason to externalize the costs of "public advertising" campaigns, presumably to counteract misleading claims made by the tobacco industry, to the government and to taxpayers. And, although the idea of post-market review of deceptive claims may be appealing to the tobacco industry, the government has made a reasonable determination that, in the context of a deadly and highly addictive product, it would be a virtual impossibility to unring the bell of misinformation after it has been rung. Thus, none of these alternatives supports a conclusion that the MRTPR is more extensive than necessary to serve its purpose.
Finally, Plaintiffs argue that the MRTPR is more extensive than necessary because "narrow tailoring requires Congress to `distinguish[] the truthful from the false, the helpful from the misleading, and the harmless from the harmful.'" (First Br. at 37 (quoting Zauderer, 471 U.S. at 646, 105 S.Ct. 2265).) But, of course, effectuating this distinction is exactly what the MRTPR is designed to do.
Because the MRTPR does not regulate non-commercial speech, and meets the criteria set forth in Central Hudson for the regulation of noncommercial speech, we
The next issue that we confront is whether the Act's bans on brand name event sponsorship, non-tobacco merchandise, free samples and the distribution of non-tobacco products in consideration for tobacco purchases violates the First Amendment.
The FSPTCA directs the FDA to reissue certain provisions of its 1996 regulation barring the distribution of free samples of tobacco products; the distribution of any non-tobacco item bearing the logo
21 C.F.R. § 1140.34 (2010).
Plaintiffs argue that the government has failed to present "evidence that the marketing bans will `directly' advance the Government's interest in decreasing youth tobacco use." (First Br. at 53.) Alternatively, they argue that the government has not shown that any reduction in juvenile tobacco use would be of such magnitude that it would be material. (Id.)
Plaintiffs further contend that the bans are overly-inclusive because they encompass marketing that is geared toward and largely received by adults, and is "critical... in inter-brand competition for adult consumers." (Id. at 54.) Lastly, Plaintiffs argue that there are several less restrictive alternatives to the bans, including "restricting media coverage of brand-name-sponsored events or limiting the brand-name merchandise ban to the types of items that can become `walking advertisements,'" (id. at 55), strengthening laws prohibiting the sale of tobacco products to minors, (id. at 56), improving the state's use of funds negotiated through the 1998 Master Settlement Agreement ("MSA"),
The district court held that "the Act's restrictions on [Plaintiffs'] ability to offer free samples of tobacco products; [and] provide gifts with the purchase of tobacco products ... [do not] implicate, let alone violate, Plaintiffs' free speech rights." Commonwealth Brands, Inc., 678 F.Supp.2d at 538. The government continues with this line of reasoning on appeal, arguing that "[p]rovisions that regulate conduct without a significant expressive element do not implicate the First Amendment, and any minimal speech interest that plaintiffs might assert is far outweighed by the need to curb underage tobacco use." (Second Br. at 77 (internal citation omitted).)
Plaintiffs reply that "sampling and continuity programs are protected speech" because they "are promotional methods that convey the twin messages of reinforcing brand loyalty and encouraging switching from competitors' brands." (First Br. at 58.) We agree.
In this case as well, the Act's regulation of sampling and continuity programs is an attempt to regulate the "communicative impact" of the activity, not the activity itself. The government has not articulated an interest in generally regulating the distribution of T-shirts, baseball caps, bobblehead dolls, or any other merchandise that may be available as part of a continuity program, or of regulating continuity programs themselves. Nor has it articulated an interest in regulating the act of providing free samples of products across consumer categories. Because the government has not advanced these, or similar, interests, the district court erred in concluding that the Act's regulation of the expressive activity embodied in the tobacco industry's practices of sampling and maintaining continuity programs was an incidental consequence of the regulation of non-expressive conduct.
"Just as the inevitable effect of a statute on its face may render it unconstitutional, a statute's stated purposes may also be considered." Sorrell, 131 S.Ct. at 2663 (internal quotation marks and citation omitted). The stated purpose of the FSPTCA is the prevention of tobacco use among minors and the reduction of dependance on tobacco, Pub.L. No. 111-31, § 3(1), through addressing, in part, the "[a]dvertising, marketing, and promotion of tobacco products." Pub.L. No. 111-31, §§ 2(5), (6), (10), (15), (23). We see no reason not to take the government at its word in this circumstance, and in doing so, find that the primary intent of the marketing bans is the regulation of commercial expression.
Having determined that the Act's marketing bans regulate activity protected under the First Amendment, we return to Central Hudson.
Though Plaintiffs would have us believe that there is no causal connection between product advertising and the consumer behavior of children, such a claim
Plaintiffs' position is also belied by evidence that adult tobacco users are extremely brand loyal and are unlikely to switch products. As the United States Surgeon General found:
U.S. Department of Health and Human Services, Preventing Tobacco Use Among Young People: A Report of the Surgeon General ii (1994); see also Philip Morris, 449 F.Supp.2d at 561 (finding that "[e]ach cigarette manufacturing company gains a small amount (less than 10%) of smokers through `switching' or changing brands. Only about 9% of adult smokers switch among [the major tobacco manufacturer's] brands."); National Cancer Institute, The Role of the Media in Promoting and Reducing Tobacco Use, Tobacco Control Monograph No. 19, 57 (2008) (hereafter, 2008 NCI Report) ("The rationale for directing promotions toward youth is that the pivotal period for smoking initiation in the United States is early adolescence. Smokers are also known to be extremely brand loyal, so the brand choice of consumers during the early stages of their smoking `careers' becomes crucial.").
Therefore, the record suggests that the massive amount of money invested by the tobacco industry in advertising and marketing is largely devoted to (1) attracting new young adult and juvenile smokers, and (2) brand competition in the young adult and juvenile market. The record shows that tobacco advertising has a dramatic impact on juveniles' decision to use tobacco products. See Philip Morris, 449 F.Supp.2d at 567 (quoting 1998 United States Surgeon General Report stating that "[a]dvertising is an important influence on tobacco use initiation and maintenance.... Cigarette advertising and promotion may stimulate cigarette consumption by ... encouraging children and adolescents to experiment with and initiate regular use of cigarettes" (alterations in original)); W.S. Choi et al., Progression to Established Smoking: The Influence of Tobacco Marketing, 22 American Journal of Preventive Medicine 4, 228 (2002) (examining "the influence of tobacco advertising and promotions on the transition from experimentation to established smoking.") (hereafter, 2002 Progression to Established Smoking Report).
Finally, credible evidence has been presented to support the conclusion that the advertising and marketing practices of the tobacco industry more heavily influence juveniles than adults. See Philip Morris, 449 F.Supp.2d at 691 (finding that, as a result of directed marketing techniques, "88% of youth smokers buy the three most heavily advertised brands—Marlboro, Camel, and Newport. Fewer than half of smokers over the age of twenty-five purchase these three brands"); CDC Fact Sheet, Tobacco Industry Marketing (2009) ("The three most heavily advertised brands, Marlboro, Newport, and Camel, continue to be the preferred brands of cigarettes smoked by established student smokers in middle and high school").
Plaintiffs have presented no credible evidence in rebuttal. Therefore, we find that there is a substantial state interest in curbing juvenile tobacco use that can be directly advanced by imposing limitations on the marketing of tobacco products.
As discussed above, the government has presented overwhelming evidence that its interest in preventing and reducing juvenile tobacco use is substantial, and that preventing juveniles from viewing tobacco advertising materially impacts their decision to use tobacco. Plaintiffs argue that the marketing ban on sampling is not narrowly tailored, because it "cast[s] an unduly broad net that sweeps in vital speech to Plaintiffs' adult tobacco customers." (First Br. at 54 (internal quotation marks omitted).)
But the government's position regarding its ban on product sampling is perhaps its most easily supported. The government has presented extensive documentation that free samples of tobacco products are "easily accessible source of these products to young people," 61 Fed.Reg. 44460, and freely obtainable, even with the tobacco industry's "voluntary codes that supposedly restrict distribution of free samples to underage persons." Id. at 45244-45 & nn. 1206-08.
Providing an opportunity for an underage nonsmoker to actually try a tobacco product, at no cost, may serve as the best advertisement of all for a product that is physiologically addictive, and socially attractive to youth. But placing cigarettes and other tobacco products into the hands of minors clearly undermines the purposes and interests undergirding the Act. Banning such practices embodies a narrow fit between the harm articulated and the restriction employed.
In addition to numerous other sources, the government has cited a "Gallup
The government has also presented studies that show that obtaining tobacco branded non-tobacco products "precedes, and reliably predicts, smoking initiation, even when controlling for other factors that have been shown to influence smoking uptake." Commonwealth Brands, Inc., 678 F.Supp.2d at 527 (quoting National Cancer Institute, Changing Adolescent Smoking Prevalence (2001)); see also Philip Morris, 449 F.Supp.2d at 569 (quoting John P. Pierce et al., Tobacco Industry Promotion of Cigarettes and Adolescent Smoking, 279 Journal of the American Medical Association 511-15 (1998) (finding that "tobacco promotional items are causally related to the onset of smoking")). In light of the record, we find that the government has met its burden of demonstrating that regulation of the distribution of tobacco branded products materially advances its interest in preventing the initiation of tobacco use by juveniles.
Plaintiffs argue that the ban is more extensive than required, because "more tailored solutions were available to address the court's youth-spill-over concerns, such as ... limiting the brand-name merchandise ban to the types of items that can become `walking advertisements' (e.g., caps and t-shirts, but not matchbooks or key chains)." (First Br. at 55 (quoting Commonwealth Brands, Inc., 678 F.Supp.2d at 528.).)
As a factual matter, the Act contains an exception for the free distribution of branded matchbooks. The Act states:
Pub.L. No. 111-31, § 906(d)(3)(B). The fact that the Act includes an exception for matchbooks, one of the only two items that Plaintiffs highlight as being unreasonably swept up by the regulation, strongly supports our finding that the provision is sufficiently tailored to survive scrutiny under Central Hudson.
The government has offered substantial evidence supporting Congress' finding, as reflected in the district court's decision, that "`the exposure (which includes television broadcasts) that young people have to sponsored events is substantial.'" Commonwealth Brands, Inc., 678 F.Supp.2d at 526 (quoting 111 Fed. Reg. at 44529). "Even though cigarette advertising is not permitted on television in the United States, tobacco companies continue to receive millions of dollars' worth of national television exposure for their brands through sponsoring sports events such as auto racing." 2008 NCI Report. At the time of the 1996 FDA rulemaking, it was estimated that more than 64 million children each year were exposed to tobacco advertising on television through auto-racing sponsorship alone. See 61 Fed.Reg. at 44528.
Plaintiffs again charge that the ban is not appropriately tailored and is overly broad because it covers, for instance, "Lorillard's Newport Pleasure Draw blackjack tournament in a youth-restricted casino, for which there is no evidence whatsoever of any media coverage, ... thereby demonstrating both the bans' facial lack of tailoring as well as their unconstitutionality as applied to Lorillard's event." (First Br. at 55.) The government counters that the restriction is narrowly tailored because none of the marketing restrictions "affect a manufacturer's ability to sponsor events in its corporate name," and so Plaintiffs may still sponsor such adult events. (Second Br. at 71.)
For the same reasons that the government prevails in its regulation of the distribution of branded non-tobacco merchandise, it also succeeds here. Just as branded non-tobacco merchandise reaches a wide audience of juveniles and contributes to their decisions to use tobacco products, so too does branded event sponsorship. Cf. Philip Morris, 449 F.Supp.2d at 575 (finding that "television, outdoor advertising (billboards), and in-store or point-of-sale displays are less selective and tend to reach more people than more targeted vehicles like magazines."). The incidental effect of suppressing a tobacco company's ability to brand a single "youth-restricted" event does not constitute a constitutional claim. While the government has met the criteria set forth in Central Hudson regarding tobacco branded event sponsorship, Plaintiffs have failed to show that anything other than a nominal amount of protected speech is swept into the regulation.
Plaintiffs argue that "continuity programs, like frequent flyer programs, `are designed to maintain the loyalty of existing customers, not to attract new ones, ... [by] offer[ing] an added benefit for existing customers that may help prevent brand-switching.'" (First Br. at 59 (quoting R.71-10: Lindsey Aff. ¶ 54).) Therefore, Plaintiffs argue, a ban on such programs is overbroad.
In 1996, the FDA "concluded that non-tobacco items (identified with a tobacco brand), either sold, given away, or provided for proof of purchase are an instrumental form of advertising in affecting young people's attitudes toward and use of tobacco. Moreover, banning this form of advertising is essential to reduce tobacco consumption by young people." 61 Fed.Reg. at 44527. This determination was based on a 1992 Gallup poll which reported that "about half of adolescent smokers and one quarter of non-smokers owned at least one
Id.
The record provides no more extensive, or more recent, evidence to support the government's position that banning continuity programs advances its interest in any material way. The datedness and relative dearth of evidentiary support showing that juveniles are significantly influenced by continuity programs stands out starkly in the context of this case, where the government has presented overwhelming evidence to support the vast majority of its other contentions.
Furthermore, because there is no real dispute that "[a]dults consume more than 98% of all tobacco products sold in this country," (First Br. at 3), and continuity programs are by nature directly linked to consumption (e.g., Camel Cash or Marlboro Miles come with the purchase of packages of cigarettes), logic dictates that the overwhelming beneficiaries, both numerically and comparatively, of these continuity programs are adult consumers.
Because the government has failed to show that continuity programs have a material effect on juvenile tobacco use, or that the ban of such programs would result in a material reduction of juvenile use, we find that the government has failed to sustain its burden under Central Hudson with regard to this provision, and we
We now turn to the Act's restrictions on the use of color and imagery in most tobacco advertising.
The FSPTCA adopts the language of the 1996 FDA regulation, and provides that:
21 C.F.R. § 1140.32(a) (adopting 21 C.F.R. § 897.32(a), as amended).
The consequence of this restriction is that tobacco advertisers may "use only black text on a white background" to advertise cigarettes or smokeless tobacco products in most formats in which they currently advertise. (First Br. at 4 n. 2.)
The district court invalidated this provision of the Act, holding that, "[b]ecause Congress could have exempted large categories of innocuous images and colors— e.g., images that teach adult consumers how to use novel tobacco products, images that merely identify products and producers, and colors that communicate information about the nature of a product, at least where such colors and images have no special appeal to youth," the provision was unconstitutionally overbroad. Commonwealth Brands, Inc., 678 F.Supp.2d at 525-26.
The government maintains that the tobacco industry's history of targeting juveniles through colorful and graphic advertising justifies the breadth of the restriction. Illustrative of the contention that "`[t]he tobacco industry has a long and disturbing history of marketing its products to appeal to young people,'" (Second Br. at 53 (quoting 155 Cong. Rec. S5988 (June 3, 2009))), is evidence that Plaintiff R.J. Reynolds, one of the leading American tobacco companies, explicitly discussed in internal memos the importance of marketing its tobacco products to the "young adult market, the 14-24 age group," because that market would constitute "a key share of the total cigarette volume—for at least the next twenty-five years." (Id. at 54 (citing Philip Morris, 449 F.Supp.2d at 607-16).)
The government asserts that "[t]he industry's campaign to attract minors is not waged with tools of rational persuasion that invoke the `merits' of taking up tobacco use. Instead, the industry relies on peripheral cues and irrational associations to distract would-be users from the fact that tobacco products are lethal and addictive." (Id. at 55.) The evocation of "irrational associations," reinforced through color and image, the government argues, is more effective with juveniles than with adult consumers. (Id.) The government further argues that this provision of the Act is properly tailored, as it "does not apply to advertising that appears in an adult publication .... [and i]t does not affect the packaging of tobacco products." (Id. at 60.) Furthermore, "[t]he restriction does not constrain a manufacturer's ability to communicate product information through text." (Id. at 64.)
Addressing the argument that the Act could impose less restrictive prohibitions on advertising, the government argues that any further exceptions to the ban on color and graphics would create loopholes that "would easily be exploited by the tobacco industry." (Id. at 65, see also Fourth Br. at 16.) The government asserts that, "Congress was not required to replicate a scheme that is demonstrably subject to evasion. Ample evidence supports Congress's determination that a `less restrictive and comprehensive approaches have [sic] not and will not be effective' in reducing underage tobacco use." (Second Br. at 68) (quoting Legislative Finding 31, Pub.L. No. 111-31, § 2(31).)
"Misleading advertising may be prohibited entirely." In re R.M.J., 455 U.S. at 203, 102 S.Ct. 929. This includes speech that "is inherently likely to deceive or where the record indicates that a particular form or method of advertising has in fact been deceptive." Id. at 202, 102 S.Ct. 929. But, "[t]ruthful advertising related to lawful activities is entitled to the protections of the First Amendment." Id. at 203, 102 S.Ct. 929.
Though the government may have an interest in decreasing the use of a product, "the State may not seek to remove a popular but disfavored product from the marketplace by prohibiting truthful, nonmisleading advertisements that contain impressive endorsements or catchy jingles. That the State finds expression too persuasive does not permit it to quiet the speech or to burden its messengers." Sorrell, 131 S.Ct. at 2671.
In this case, the government contends that the tobacco industry's graphic color advertisements are deceptive because "[t]obacco imagery ... seeks to distract potential users from the fact that tobacco products are lethal and addictive." (Second Br. at 63; see also 2007 IOM Report, at 322 ("The images used in tobacco marketing associate smoking with lifestyles and experiences that appeal to young people, and these positive associations tend to displace or override risk information in adolescent decision making.")). Consequently, the government's claim is not that tobacco advertisements make deceptive or misleading claims, but that they create positive associations in the minds of consumers, such as linking the use of tobacco products to "part of a desirable lifestyle that includes activities such as mountain biking, tug-of-war, and sex," along with concepts such as "fun" and "relaxation." (Second Br. at 62.)
Plaintiffs respond that, "if the Government were correct, it could similarly ban attractive advertisements for all age-restricted products, including beer, R-rated movies, lottery tickets, and fast cars, simply because those advertisements are appealing, not just to the adults at whom they are aimed, but to youth who happen to see them." (Third Br. at 25.) These advertisements, too, undoubtedly attempt
Plaintiffs fail to appreciate that there are ways for a person to drink beer, watch R-rated movies, buy lottery tickers, and drive fast cars, that do not necessarily cause harm to that person. In contrast, there is no method by which a person can smoke a cigarette or use smokeless tobacco in a manner that is health-neutral. This distinction—lost on Plaintiffs—renders their analogy to non-tobacco products somewhat less than helpful. Nonetheless, we find Plaintiffs' argument availing.
Though many products available on the market are use-neutral or use-negative, product advertisement always seeks to create positive associations between the product and certain lifestyles or symbols. Perfume and cologne do not make people more beautiful, chewing gum does not make them more athletic, coffee does not make them more intelligent or urbane. By the same token, though the government would have us believe otherwise, using tobacco does not necessarily preclude a person from mountain biking, playing games, or engaging in romantic relationships.
It is worth quoting the Supreme Court, at some length, on this issue of the constitutionality of blanket bans of color and imagery in advertising:
Zauderer, 471 U.S. at 649, 105 S.Ct. 2265.
All use of color and imagery in tobacco advertising, of course, is not deceptive or manipulative. As Plaintiffs underscore, some advertising, like that for the "Camel Crush" product, is largely informational. (Third Br. at 11.) Other tobacco advertising is used to reinforce consumer preference "by simply showing the package" of the customer's preferred brand. (Id. at 10.) Finally, some uses of color imagery are simply attention grabbing in a crowded marketplace, letting consumers know that their preferred brand or product is available at a particular retailer. (Id.) Furthermore, there are surely certain color graphic tobacco ads that have nominal to zero appeal to the youth market. Each of these forms of advertising has great expressive value for the tobacco industry, and its suppression would be an undue burden on Plaintiffs' free speech.
The government's argument that "[c]olor is used to convey a mood—such as red for passion and power, green for harmony and health—and to circumvent other advertising restrictions," (Second Br. at 56-57 (citing 2008 NCI Report, at 64-65; 2007 IOM Report, at 297)), is no more convincing. Packaging shape, product shape and color, display location, and any number of other factors may also convey meaning through association. As discussed above,
Instead of instituting a blanket restriction on color and graphics in tobacco advertising, the government may instead restrict only the speech necessary to effect its purposes. "To the extent that studies have identified particular advertising and promotion practices that appeal to youth, tailoring would involve targeting those practices while permitting others." Lorillard Tobacco Co., 533 U.S. at 563, 121 S.Ct. 2404. As the district court correctly stated, instead of instituting such a sweeping and complete ban, "Congress could have exempted large categories of innocuous images and colors—e.g., images that teach adult consumers how to use novel tobacco products, images that merely identify products and producers, and colors that communicate information about the nature of a product, at least where such colors and images have no special appeal to youth." Commonwealth Brands, Inc., 678 F.Supp.2d at 525-26.
There is no doubt that identifying and targeting certain advertising practices will be more arduous than banning all color and graphics in tobacco advertising. For instance, the government points to the controversy surrounding the "Camel Farm" advertising campaign, which has been the subject of extensive and ongoing litigation. See R.J. Reynolds Tobacco Co., 211 P.3d 448 at 451 n. 10 (summarizing litigation in more than a half-dozen courts nationwide). But this is the exact work required by the First Amendment. And, "so long as the sale and use of tobacco is lawful for adults, the tobacco industry has a protected interest in communicating information about its products and adult customers have an interest in receiving that information." Lorillard Tobacco Co., 533 U.S. at 571, 121 S.Ct. 2404.
Although the government can show a substantial interest in alleviating the effects of tobacco advertising on juvenile consumers, the provision of the Act banning the use of color and graphics in tobacco advertising is vastly overbroad, and therefore the government cannot meet its burden of demonstrating that the Act is properly tailored under Central Hudson.
Finally, we focus our attention on the Act's restriction on claims or representations that tobacco products are made less harmful or safer by virtue of FDA regulation.
The FSPTCA prohibits the:
21 U.S.C. § 331(tt).
Plaintiffs challenge only § 331(tt)(4), arguing that the provision's "flat ban on `any' statement directed to consumers that `conveys' that [the] FDA is achieving its objectives goes far beyond what is needed to prohibit `misleading' speech." (Third Br. at 60.)
The district court found that the § 331(tt)(4) restrictions apply to speakers outside of the tobacco industry, including "journalists, doctors, scientists, politicians, and numerous other groups and individuals with access to the media," and therefore "the ban applies to more than just commercial speech and must satisfy strict scrutiny." Commonwealth Brands, Inc., 678 F.Supp.2d at 535. Having made the determination that strict scrutiny was the applicable standard, the district court, without further analysis, declared that "[b]ecause the government has not even attempted to justify the ban under the strict scrutiny standard, and because it seems clear that it cannot be so justified, the Court finds 21 U.S.C. § 331(tt)(4) facially unconstitutional." (Id.) As explained below, we now
Our first task is to determine whether 21 U.S.C. § 331(tt)(4) regulates noncommercial speech as well as commercial speech. This is a matter of statutory interpretation.
"Statutory construction must begin with the language employed by Congress and the assumption that the ordinary meaning of that language accurately expresses the legislative purpose." Park 'N Fly, Inc. v. Dollar Park & Fly, Inc., 469 U.S. 189, 194, 105 S.Ct. 658, 83 L.Ed.2d 582 (1985). It is one of the cardinal rules of statutory interpretation that "[t]he meaning—or ambiguity—of certain words or phrases may only become evident when placed in context. `It is a fundamental canon of statutory construction that the words of a statute must be read in their context and with a view to their place in the overall statutory scheme.'" Brown & Williamson Tobacco Corp., 529 U.S. at 132-33, 120 S.Ct. 1291 (quoting Davis v. Michigan Dep't of Treasury, 489 U.S. 803, 809, 109 S.Ct. 1500, 103 L.Ed.2d 891 (1989)). Therefore, "[a]mbiguity is a creature not of definitional possibilities but of statutory context." Brown v. Gardner, 513 U.S. 115, 118, 115 S.Ct. 552, 130 L.Ed.2d 462 (1994).
In addition to the above considerations, our interpretation of statutory language is guided by the constitutional avoidance doctrine, which embodies the "cardinal principle of statutory interpretation... that when an Act of Congress raises a serious doubt as to its constitutionality, this Court will first ascertain whether a construction of the statute is fairly possible by which the question may be avoided." Zadvydas v. Davis, 533 U.S. 678, 689, 121 S.Ct. 2491, 150 L.Ed.2d 653 (2001) (internal citation and quotation marks omitted).
In this case, citing the legislative findings of the Act, the government argues that "it is clear from the statutory context that Congress did not intend to reach non-commercial
Pub.L. No. 111-31, § 2(46).
This finding notwithstanding, an exercise of statutory interpretation yields the conclusion that § 331(tt)(4) is not intended to encompass non-commercial speech. In § 331(tt)(4), the phrase "through the media," which is the only phrase that could conceivably encompass non-commercial speech, follows directly after the terms "label or labeling" and immediately precedes the term "[through] advertising." Each of these terms is modified by the phrase "directed to consumers with respect to a tobacco product." See Stevens, 130 S.Ct. at 1588 (holding that "an ambiguous term may be given more precise content by the neighboring words with which it is associated") (internal quotation marks omitted). The only parties capable of consumer-directed labeling or advertising of tobacco products are tobacco manufacturers and distributors, and such labeling and advertising would clearly fall with the category of commercial speech. In this context, a determination by this Court that § 331(tt)(4) can be reasonably interpreted to exclude non-commercial statements directed at tobacco users by "journalists, doctors, scientists, politicians" is not only "fairly possible," but well-supported.
Furthermore, the prohibitions preceding § 331(tt) in the Food, Drug and Cosmetic Act mandate bans on the sale of tobacco in violation of "no-sale" orders, id. § 331(oo ), the "introduction into interstate commerce" of a mislabeled tobacco product, id. § 331(pp), the "counterfeiting" of tobacco products, id. § 331(qq), the distribution of such products to charity, id. § 331(rr), and criminalizes "[t]he failure of a manufacturer or distributor to notify the Attorney General and the Secretary of the Treasury of their knowledge of tobacco products used in illicit trade." Id. § 331(ss). Each of these prohibitions applies only to the tobacco industry, and only to consumer-directed actions.
In accordance with the constitutional avoidance doctrine, and giving due regard to the language of the provision, we find that § 331(tt)(4) does not restrict noncommercial speech by persons outside of the tobacco industry. Thus, to be found constitutionally permissible, 21 U.S.C. § 331(tt)(4) must meet the requirements outlined in Central Hudson.
The government argues, consistent with the Act's legislative findings, that § 331(tt)(4) "is designed to prevent tobacco companies from confusing consumers about the role of FDA with respect to tobacco products, which differs in significant ways from FDA's role in regulating drugs and devices." (Fourth Br. at 31.)
The provision bars claims that tobacco products are "safe or less harmful by virtue of" FDA regulation, inspection or compliance. 21 U.S.C. § 331(tt)(4) (emphasis added). Though a tobacco manufacturer's
Furthermore, as the government highlights, the role that the FDA undertakes regarding tobacco products is fundamentally different than the role that it undertakes with regard to food, drugs and cosmetics. In those contexts, the stated mission of the FDA is to, "protect the public health by ensuring that—
21 U.S.C. § 393(b)(2).
In the context of tobacco products, any statement explicitly declaring, or even implying, that compliance with FDA procedures has ensured safety is inherently misleading and patently false. Therefore, this regulation survives under either Zauderer, as prevention of deceptive and untrue advertising, or Central Hudson, as a narrowly tailored regulation of commercial speech.
This district court erred in interpreting 21 U.S.C. § 331(tt) as an unconstitutional restriction on non-commercial speech; we therefore
For the reasons discussed above, we
We
JANE B. STRANCH, Circuit Judge.
I write for the majority in concluding that the warnings mandated by the Family Smoking Prevention and Tobacco Control Act (the Act), Pub.L. No. 111-31, 123 Stat. 1776 (2009), are constitutional under the First Amendment. Plaintiffs' facial challenge fails because the required warnings for cigarette packaging and cigarette advertising pass muster under Zauderer v. Office of Disciplinary Counsel of the Supreme Court of Ohio, 471 U.S. 626, 105 S.Ct. 2265, 85 L.Ed.2d 652 (1985).
Before turning to our specific analysis of the Act's warnings, we describe how our majority position relates to the Discussion Sections of Judge Clay's lead opinion that include the issues on which he writes for the majority and in dissent:
We explain our specific disagreements and the majority position more fully below. We now turn to the Act's required warnings.
Plaintiffs' challenge to the Act's warning requirements—including "graphics depicting the negative health consequences of smoking," Act § 201(a)—is only a facial challenge. This challenge means that Plaintiffs argue that the Act's graphic-warnings requirement is itself unconstitutional, not that the specific images the FDA chose to implement the requirement are unconstitutional. That Plaintiffs challenge the Act's warning requirements only facially is so for four reasons: timing; the district court's decision; Plaintiffs' admissions; and Supreme Court precedent.
First, the timing demonstrates that the challenge is facial. The Act, which was enacted in June 2009, mandates new textual and graphic warnings for cigarette packaging and advertising (§ 201) and new textual warnings for smokeless-tobacco products (§ 204).
The district court's summary-judgment decision in January 2010 was issued over ten months before the FDA proposed any specific graphic images and over seventeen months before the FDA settled on the final nine images. The district court did not—indeed, could not—evaluate the constitutionality of the specific images the FDA chose because those images did not yet exist. Indeed, they did not even exist when the last appellate brief was filed in this Court in October 2010. Without any specific graphic images to challenge, Plaintiffs' argument is and must necessarily be that the graphic-warning requirement on its face violates the First Amendment.
As an appellate court with jurisdiction to review a district court decision, see 28 U.S.C. § 1291, this record provides nothing to review on the issue of warnings save what the statute itself requires. Moreover, federal courts "should act cautiously" when asked to overturn democratically enacted statutes because "a ruling of unconstitutionality frustrates the intent of the elected representatives of the people." Regan v. Time, Inc., 468 U.S. 641, 652, 104 S.Ct. 3262, 82 L.Ed.2d 487 (1984) (plurality opinion); accord id. at 653, 104 S.Ct. 3262. Courts have created several doctrines imposing restraint in this area (e.g. constitutional avoidance, severability, etc.). Addressing the specific images would require us to reach a constitutional question that was neither briefed
Second, the district court's decision reinforces this point. In finding that the new warnings were permissible under the First Amendment, the court stated that it "does not believe that the addition of a graphic image will alter the substance of [the new warnings], at least as a general rule. Accordingly,... the Court finds that the warning requirement is [constitutional]." Commonwealth Brands, Inc. v. United States, 678 F.Supp.2d 512, 532 (W.D.Ky. 2010) (emphasis added). Both the use of the indefinite pronoun a and the phrases as a general rule and warning requirement show that the district court was considering the graphic-warning requirement on its face instead of considering any specific graphic images, which did not even exist when the district court ruled on the case.
Third, three plaintiffs in this case—R.J. Reynolds Tobacco, Lorillard, and Commonwealth Brands—admit that this case challenges the Act's required warnings only facially. They have brought another case to challenge the specific graphic warnings selected by the FDA. See R.J. Reynolds Tobacco Co. v. U.S. Food and Drug Admin., ___ F.Supp.2d ___, 2011 WL 5307391 (D.D.C. Nov. 7, 2011). The R.J. Reynolds plaintiffs expressly assert in their complaint that the case before us challenges the Act's warning requirements only facially:
Id., DE1, Compl. 8 n. 3 (emphasis added). Litigation strategy is unquestionably the domain of Plaintiffs and they aver that their litigation strategy in this case is to challenge the warnings only facially. Reading an as-applied challenge into Plaintiffs' briefs is not tenable.
Fourth, Supreme Court precedent dictates that we review Plaintiffs' challenge to the Act's warnings as a facial one. The Court has held if the "plaintiffs' claim and the relief that would follow ... reach beyond the particular circumstances of these plaintiffs," then the challenge is a facial challenge, even if the plaintiffs bringing the claim label it otherwise. John Doe # 1 v. Reed, ___ U.S. ___, 130 S.Ct. 2811, 2817, 177 L.Ed.2d 493 (2010). The tobacco-product manufacturers and retailers in this case argue that the warnings violate the First Amendment. The relief flowing from this claim, should they prevail, would render the warnings unconstitutional with respect to any tobacco-product manufacturer, retailer, distributor, or importer, not just the specific entities that are a party to this lawsuit. Their claims are therefore properly reviewed under Reed as facial challenges to the Act's required warnings.
We now turn to Plaintiffs' facial challenge to the required warnings. "To succeed in a typical facial attack, [a plaintiff] would have to establish that no set of circumstances exists under which [the statute] would be valid, or that the statute lacks any plainly legitimate sweep." United States v. Stevens, ___ U.S. ___, 130 S.Ct. 1577, 1587, 176 L.Ed.2d 435 (2010) (internal citations and quotation marks omitted). In addition to scaling this steep standard of review, Plaintiffs must also contend with the fact that "[f]acial challenges are disfavored for several reasons. Claims of facial invalidity often rest on speculation. As a consequence, they raise the risk of premature interpretation of statutes on the basis of factually barebones records." Wash. State Grange v. Wash. State Republican Party, 552 U.S. 442, 450, 128 S.Ct. 1184, 170 L.Ed.2d 151 (2008) (internal quotation marks omitted).
If a commercial-speech disclosure requirement fits within the framework of Zauderer and its progeny, then we apply a rational-basis standard. Zauderer, 471 U.S. at 651, 105 S.Ct. 2265. If it does not, then we treat the disclosure as compelled speech under Wooley v. Maynard, 430 U.S. 705, 97 S.Ct. 1428, 51 L.Ed.2d 752 (1977), and its ilk and apply strict scrutiny. Entm't Software Ass'n v. Blagojevich, 469 F.3d 641, 651-52 (7th Cir.2006) (applying strict scrutiny after determining that the disclosure did not fit within Zauderer).
"Zauderer addressed the validity of a[n Ohio] rule of professional conduct that required attorneys who advertised contingency-fee services to disclose in their advertisements
Zauderer challenged the rule on First Amendment grounds, arguing that the required disclosure was valid only if it passed the test for restricting commercial speech under Central Hudson, which is that the speech must either be deceptive absent the disclosure, or the government must show that the disclosure serves some substantial interest and directly advances that interest through the least restrictive available means.
Protecting commercial speech under the First Amendment is principally justified by protecting the flow of accurate information, and requiring factual disclosures furthers that goal. Id. at 650-51, 105 S.Ct. 2265; National Elec. Mfrs. Ass'n v. Sorrell, 272 F.3d 104, 113-14 (2d Cir. 2001). Thus, a commercial speaker's "constitutionally protected interest in not providing any particular factual information in his advertising is minimal." Zauderer, 471 U.S. at 651, 105 S.Ct. 2265 (emphasis in original). "[B]ecause disclosure requirements trench much more narrowly on an advertiser's interests than do flat prohibitions on speech, warnings or disclaimers might be appropriately required in order to dissipate the possibility of consumer confusion or deception." Id. (internal quotation marks omitted). In sum, "First Amendment interests implicated by disclosure requirements are substantially weaker than those at stake when speech is actually suppressed."
Disclosure requirements, to be sure, do "implicate the advertiser's First Amendment rights." Id. The Court "recognize[d] that unjustified or unduly burdensome disclosure requirements might offend the First Amendment by chilling protected commercial speech. But we hold that an advertiser's rights are adequately protected as long as disclosure requirements are reasonably related to the State's interest in preventing deception of consumers." Id. (emphasis added).
Zauderer relied on the distinction between a fact and a personal or political opinion to distinguish factual, commercial-speech disclosure requirements, to which courts apply a rational-basis rule, from the type of compelled speech on matters of opinion that is "as violative of the First Amendment as prohibitions on speech." Id. at 650, 105 S.Ct. 2265. The Court reasoned that the disclosure required by
In 2010, the Court reaffirmed the central principles of Zauderer in Milavetz. Milavetz, 130 S.Ct. at 1339-40. The Milavetz law firm and others brought a First Amendment challenge to changes to the Bankruptcy Code that required professionals who assist consumers with bankruptcy to disclose in their ads this statement: "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code." Id. at 1330 (quoting 11 U.S.C. § 528(a)(4)). Like Zauderer, Milavetz argued that the Central Hudson test governed whether the disclosure requirements were constitutional. Id. at 1339. But the Court again rejected this test in favor of the test set forth in Zauderer, determining that "an advertiser's rights are adequately protected as long as disclosure requirements are reasonably related to the State's interest in preventing deception of consumers." Id. at 1339-40 (quoting Zauderer, 471 U.S. at 651, 105 S.Ct. 2265).
Milavetz applied this test for three reasons. First, the statute's disclosure requirements targeted marketing claims that inherently tended to deceive by promising "debt relief without any reference to the possibility of filing for bankruptcy, which has inherent costs." Id. at 1340. Second, "the disclosures entail[ed] only an accurate statement identifying the advertiser's legal status" and providing "pertinent information about the advertiser's services." Id. at 1340-41 (emphasis added). Third, the disclosures did not prevent debt-relief agencies from communicating any additional information. Id. at 1340.
Milavetz held that the required disclosures were constitutional under Zauderer because the facts that the debt-relief agencies had to disclose were pertinent to a consumer in deciding whether to use the agencies' services. See id. at 1340-41. In other words, the disclosures were reasonably related to preventing consumer deception. Id. at 1341. Significantly, the Court upheld the required disclosures without separately analyzing whether they were unjustified or unduly burdensome. Id. at 1339-41. This makes sense because the Zauderer rule is that when disclosure requirements are "reasonably related to the State's interest in preventing deception of consumers," the rights of an advertiser are adequately protected. Id. at 1339-40 (quoting Zauderer, 471 U.S. at 651, 105 S.Ct. 2265).
The Second Circuit case of Sorrell reinforces the principles (1) that distinguishing between a fact and a personal or political opinion controls whether a required disclosure is reviewed under Zauderer's rational-basis rule or the more exacting compelled-speech doctrine, (2) that deciding whether the required disclosure satisfies the reasonably related requirement is all that is necessary to determine the disclosure's constitutionality, and (3) that satisfying this requirement is a simple task. In addition, Sorrell shows that Zauderer's framework can apply even if the required disclosure's purpose is something other than or in addition to preventing consumer deception. Sorrell addressed a statute requiring manufacturers of mercury-containing
The circuit court reviewed the mercury disclosures under Zauderer's rational-basis rule because they were factual disclosures as opposed to compelled opinions: "[o]ur decision reaches only required disclosure of factual commercial information. Requiring actors in the marketplace to espouse particular opinions would likely raise issues not presented here." Id. at 114 n. 5 (emphasis added). Moreover, the court reasoned that requiring "disclosure of accurate, factual commercial information presents little risk that the state is forcing speakers to adopt disagreeable state-sanctioned positions, suppressing dissent, confounding the speaker's attempts to participate in self-governance, or interfering with an individual's right to define and express his or her own personality." Id. at 114. Thus, the "individual liberty interests guarded by the First Amendment" were not implicated. Id. "Moreover, requiring disclosure of truthful information" protects the "robust and free flow of accurate information, [which] is the primary First Amendment justification for protecting commercial speech." Id.
Having concluded that Zauderer's rational-basis rule applies, the Sorrell court reversed the district court, determining that the required disclosures were constitutional without analyzing whether the disclosures were unjustified or unduly burdensome. See id. at 115-16. Relying on Zauderer's principles, Sorrell instead held that the First Amendment is satisfied "by a rational connection between the purpose of a commercial disclosure requirement and the means employed to realize that purpose." Id. at 115. The court explained that the disclosure's purpose was not to prevent consumer deception per se, but rather to protect "human health and the environment" by reducing the amount of mercury released, a purpose that is "inextricably intertwined" with "better inform[ing] consumers about the products they purchase" and that is achieved by requiring the manufacturers to disclose whether those products contain mercury. Id. Sorrell concluded that a reasonable relationship between the purpose and means was "plain" because of the probability that some mercury lamp purchasers, once informed, "will properly dispose of [the lamps] and thereby reduce mercury pollution. By encouraging such changes in consumer behavior the labeling requirement is rationally related to the state's goal of reducing mercury contamination." Id. This was so even though the "statute may ultimately fail to eliminate all or even most mercury pollution in the state." Id. (emphasis added).
Sorrell relied on common sense rather than evidence to conclude that the disclosures would lead some consumers to change their behavior, thereby showing that constitutionality does not hinge upon some quantum of proof that a disclosure will realize the underlying purpose. A common-sense analysis will do. And the disclosure has to advance the purpose only slightly. See id. (upholding the statute even though it "may ultimately fail to eliminate all or even most mercury pollution in the state"). The district court had gone astray by requiring the means to be more effective in producing the desired ends. See id. at 115-16. It found as fact that lamps are not the largest source of environmental mercury and therefore determined
Id. (brackets in original omitted).
This Court has also opined on Zauderer's reach and import. We have held that Zauderer applies not only when the required disclosure "targets speech that is inherently misleading," but also "where, as here, the speech is potentially misleading." Int'l Dairy Foods Ass'n v. Boggs, 622 F.3d 628, 641 (6th Cir.2010). In so holding, we relied on the principal justification for protecting commercial speech under the First Amendment: protecting the flow of accurate information, which is furthered by factual disclosures. Id. "The speech rights of advertisers, in contrast, are of less value; specifically, their `constitutionally protected interest in not providing the required factual information is minimal.'" Id. (quoting Milavetz, 130 S.Ct. at 1339) (emphasis in original). In analyzing the constitutionality of the required disclosure, this Court examined whether there was a rational connection between the purpose served by the disclosure and the disclosure itself. Id. at 642-43. International Dairy affirmed a disclosure requirement concerning a claim about producing milk because the requirement was reasonably related to the government's interest in preventing consumer deception but invalidated a rule requiring that the disclosure be contiguous to the claim because that rule lacked a rational basis. Id.
With these principles in mind, we now turn to whether the Zauderer framework governs the constitutionality of disclosure requirements in this case. The Act mandates nine new textual and graphic warnings for packaging and advertising of cigarettes and four new textual warnings for packaging and advertising of smokeless-tobacco products. Act §§ 201(a), 204(a). The Act requires that the warnings comprise the top 50% of the front and back of cigarette packaging, 30% of the front and back of smokeless-tobacco-products packaging, and 20% of the advertising for cigarettes and smokeless-tobacco products. Id. §§ 201(a), 203(a). All of the warnings address the negative health consequences of using tobacco. See id. The factual content of the textual warnings is undisputed. It is beyond cavil that smoking presents the serious health risks described in the warnings, and Plaintiffs do not contend otherwise: "Again, it is undisputed that no tobacco product is riskless and reducing youth use is an important concern." (Third Br. at 2) Because the textual warnings require disclosing factual information rather than opinions, Zauderer's rational-basis rule applies.
The Act's graphic-warnings provision mandates that the FDA "require color graphics depicting the negative health consequences of smoking" to accompany the textual warnings on cigarette packaging and advertising. Act § 201(a). Because Plaintiffs bring a facial challenge to the warning requirements, our concern is not the specific images the FDA chose—those are under review elsewhere—but rather
That is not to say that the graphic warnings would have to be of this form to fall within the ambit of Zauderer. We can envision many graphic warnings that would constitute factual disclosures under Zauderer. A nonexhaustive list of some that would include a picture or drawing of a nonsmoker's and smoker's lungs displayed side by side; a picture of a doctor looking at an x-ray of either a smoker's cancerous lungs or some other part of the body presenting a smoking-related condition; a picture or drawing of the internal anatomy of a person suffering from a smoking-related medical condition; a picture or drawing of a person suffering from a smoking-related medical condition; and any number of pictures consisting of text and simple graphic images.
Students in biology, human-anatomy, and medical-school courses look at pictures or drawings in textbooks of both healthy and damaged cells, tissues, organs, organ systems, and humans because those pictures convey factual information about medical conditions and biological systems. The argument that a picture of a specific person or part of a person is opinion because not every person or part of a person with that condition would appear the same way is unpersuasive. By virtue of our genes and environment, every person is different. And yet medical students learn valuable factual information in part by examining pictures and images of the human body and the various illnesses that may befall it. So arguing that a representation of a medical condition becomes an opinion when people could have that medical condition in ways that deviate from the representation would lead to the insupportable conclusion that textual or pictorial descriptions of standard medical conditions must be opinions as well. People with the same illness can and often will suffer a variety of differing symptoms. But one wouldn't say that a list of symptoms characterizing a particular medical condition is nonfactual and opinion-based as a result.
Plaintiffs' arguments premised on Blagojevich fare no better. That disclosure requirement mandated that a four-square-inch sticker labeled "18" be placed on any video game meeting the statutory definition of "sexually explicit." Blagojevich, 469 F.3d at 643, 651-52. A game could be considered sexually explicit "solely on the basis of `contemporary community standards' with regard to the lasciviousness of any depiction of `post-pubescent female breasts.'" See id. at 650 (quoting 720 Ill.
Blagojevich is distinguishable from this case. The textual warnings in this case provide undisputed factual information about the health risks of using tobacco products. Similarly, for the reasons outlined above, there are myriad graphic images that would also provide such factual information. The health risks of smoking tobacco have been uncovered through scientific study. They are facts. Warnings about these risks—whether textual or graphic—can communicate these facts. In contrast, what constitutes a sexually explicit video game is a matter of personal taste and sexual morals that is necessarily based on opinion, as enshrined in the very definition of "sexually explicit" that Blagojevich examined. A required disclosure announcing that the game is sexually explicit communicates the government's opinion that the game is sexually explicit. Blagojevich and the standards it articulates are inapplicable here.
Under Supreme Court precedent and our application of it, Zauderer governs. The next step in the analysis is to determine whether the Act's required warnings survive Zauderer's rational-basis rule.
The Act's required textual and graphic warnings are constitutional if there is a rational connection between the warnings' purpose and the means used to achieve that purpose. Sorrell, 272 F.3d at 115. The warnings' purpose is to prevent consumers from being misled about the health risks of using tobacco. Accordingly, the warnings are designed to "promote greater public understanding of [those] risks." See Act § 202(b) (authorizing the FDA to adjust the warnings if the change would help consumers better understand the health risks).
The genesis of the stated purpose is self-evident. Tobacco manufacturers and tobacco-related trade organizations (collectively, "Tobacco Companies") knowingly and actively conspired to deceive the public about the health risks and addictiveness of smoking for decades. United States v. Philip Morris USA Inc., 566 F.3d 1095, 1105-08, 1119-20, 1122-24 (D.C.Cir.2009) (per curiam) (affirming the district court's finding of deception for nine tobacco manufacturers—two of whom are plaintiffs in this case—and two tobacco-related trade organizations created by tobacco manufacturers). These Tobacco Companies knew from their own research and from outside research they funded that "cigarette smoking causes disease [like lung cancer], suffering, and death"; "that nicotine is an addictive drug"; that they "designed their cigarettes to precisely control nicotine delivery levels and provide doses of nicotine sufficient to create and sustain addiction"; that filtered and low-tar cigarettes do not reduce the risks of smoking; and "that secondhand smoke causes disease." Id. at 1124; accord id. at 1106-08, 1119-20, 1122-23. Even though—more accurately, because—Tobacco Companies knew these facts, they
Id. at 1108 (citations omitted); accord id. at 1106-07, 1119-20, 1122-24. The Tobacco Companies disseminated these falsehoods through advertisements, publications, press releases, and public statements. Id. at 1106-08. They also paid for scientific research "to produce favorable research results and witnesses specifically for use in litigation and for support of industry public statements." Id. at 1107; accord id. at 1108.
In addition to this decades-long deception by Tobacco Companies, their advertising promoting smoking deceives consumers if it does not warn consumers about tobacco's serious health risks. The Supreme Court expressly recognized this fact when it approvingly cited the Federal Trade Commission's conclusion that "[t]o avoid giving a false impression that smoking [is] innocuous, the cigarette manufacturer who represents the alleged pleasures or satisfactions of cigarette smoking in his advertising must also disclose the serious
In the face of this deception stand the existing warnings required before the Act. They have not been revised since 1984
Another problem with the current warnings—and a strong reason for the new graphic warnings required by the Act—is that consumers must be able to read at a relatively high level to properly understand the warnings. The warnings "require a college reading level" and thus "may be inappropriate for youth and Americans with poor reading abilities" and low levels of education. Id. at C-3. "This is particularly important considering that, in most countries, smokers report lower levels of education than the general public." Id. These same concerns extend to consumers who may speak English as a second language, or suffer from reading disorders such as dyslexia. And these concerns are magnified in the context of preventing youth from using tobacco because the target audience, by definition, is expected to possess the reading comprehension level of only a schoolchild.
Given these ineffective warnings, the evidence unsurprisingly shows that most people do not understand the full dangers of tobacco use. After an extensive bench trial lasting nine months and including "live testimony from 84 witnesses, written testimony from 162 witnesses, and almost 14,000 exhibits in evidence," Philip Morris, 566 F.3d at 1106, a district court found that "[m]ost people do not have a complete understanding of the many serious diseases caused by smoking, the true nature of addiction, or what it would be like to experience either those diseases or addiction itself. Rather, most people have only a superficial awareness that smoking is dangerous." United States v. Philip Morris
Youth—the specific target of tobacco companies' marketing campaigns
Faced with evidence that the current warnings ineffectively convey the risks of tobacco use and that most people do not understand the full risks, the Act's new warnings are reasonably related to promoting greater public understanding of the risks. A warning that is not noticed, read, or understood by consumers does not serve its function. The new warnings rationally address these problems by being larger and including graphics.
Sorrell establishes that the above reasoning alone is enough to satisfy the rational-basis rule. As noted, Sorrell held that the required mercury disclosures satisfied the rule because "[i]t is probable that some mercury lamp purchasers, newly informed by the Vermont label, will properly dispose of [the lamps] and thereby reduce mercury pollution. By encouraging such changes in consumer behavior, the labeling requirement is rationally related to the state's goal of reducing mercury contamination." Sorrell, 272 F.3d at 115 (emphasis added). In concluding that it was probable that some consumers would change their behavior in response to the disclosures, Sorrell did not point to any evidence showing that some consumers would change; instead, it reasonably assumed they would based on common sense. See id. That sufficed. Id. We can similarly assume, based on common sense, that larger warnings incorporating graphics will better convey the risks of using tobacco to consumers. The reasonableness of this assumption is highlighted by the Plaintiffs' own argument that the Act's ban on using color or graphics in their tobacco advertising "eviscerates Plaintiffs' ability to effectively communicate with adult tobacco consumers using advertising that captures their attention." (First Br. at 4 n. 2 (emphasis added)) If color and graphics are necessary for Plaintiffs to effectively communicate and capture the audience's attention, then warnings using color and
The Supreme Court's Milavetz decision buttresses this conclusion. Milavetz held that the required disclosures were constitutional because the facts that the debt-relief agencies had to disclose were pertinent to a consumer in deciding whether to use the agencies' services. See Milavetz, 130 S.Ct. at 1340-41. This made the disclosures reasonably related to preventing consumer deception. Id. at 1341. And the D.C. Circuit has concluded that industry "statements about the adverse health effects of smoking"—a category that would include facts disclosed in the Act's new warnings—"would be a matter of importance to a reasonable person deciding to purchase cigarettes." Philip Morris, 566 F.3d at 1122. Under Milavetz's logic, the disclosures are reasonably related to preventing consumer deception.
In addition, abundant evidence establishes that larger warnings incorporating graphics promote a greater understanding of tobacco-related health risks and materially affect consumers' decisions regarding tobacco use.
In 2000, Canada implemented warnings essentially identical in form to the Act's warnings: the warnings occupied the top 50% of the front and back panels of cigarette packages and included a photograph or drawing, the word Warning, and a short textual warning. Id. at C-2 to C-3. Surveys in Canada following these new warnings show that "approximately 95 percent of youth smokers and 75 percent of adult smokers report that the pictorial warnings have been effective in providing them with important health information." Id. at C-5. And Canadian smokers were more likely to report cigarette packages as a source of information about health risks of smoking than smokers in the United States or other countries with only textual warnings. Hammond, D., et al., Effectiveness of cigarette warning labels in informing
Australia, which adopted graphic warnings in 2006, provides another good example of the benefits of larger warnings incorporating graphics. White, V., et mal., Do graphic health warning labels have an impact on adolescents' smoking-related beliefs and behaviors? 103 Addiction 1562 (2008). In the year that Australia adopted the new warnings, adolescents were more likely to cognitively process cigarette warnings, which means that they were more likely to read, think about, and discuss the warnings. Id. When that year in Australia is compared to the year following the UK's adoption of new warnings in early 2003, there was a larger increase in cognitive processing and foregoing cigarettes—the two strongest predictors of quitting smoking—in Australia, even after controlling for the different dates on which the warnings were introduced. Borland, R., et al., Impact of graphic and text warnings on cigarette packs: findings from four countries over five years, 18 Tobacco Control 358 (2009). This is especially significant because Australia's warnings incorporated graphics whereas the UK's did not. Id. In sum, there is more than substantial evidence to support the conclusion that larger warnings incorporating graphics would promote greater public understanding of the health risks of using tobacco.
This makes sense because psychology has established that "[g]enerally, pictures are easier to remember than words." S. David Leonard et al., Comprehension and Memory, in Warnings and Risk Communication 149, 158 (Michael S. Wogalter et al. eds.1999). Studies of warnings generally have "found that pictorials in combination with conspicuous print facilitated recollection of warning contents," and that "the enhanced memory was directly related to the fact that the warning was noticed in the first place[]." Wendy A. Rogers et al., Warning Research: An Integrative Perspective, 42 Human Factors 102, 114 (Spring 2000). The same underlying truths about how humans process and remember information undergird Plaintiffs' argument that the Act's ban on using color or graphics in Plaintiffs' advertising "eviscerates Plaintiffs' ability to effectively communicate with adult tobacco consumers using advertising that captures their attention." (First Br. at 4 n. 2 (emphasis added)) In crafting warnings that effectively convey the serious health risks of smoking, Congress was simply following the findings of science, findings that Plaintiffs concede in their effort to protect their own advertising. The warnings are reasonably related to the purpose Congress sought to achieve—namely, preventing consumer deception—and are therefore constitutional.
Plaintiffs' arguments to the contrary are not persuasive. Their first argument is that the warnings cannot be justified on the basis of preventing consumer deception because consumers know—and in some cases overestimate—the health risks of using tobacco products. First, to the extent Plaintiffs argue that we must separately analyze whether the warnings are unjustified, they are mistaken. The test, as set forth in Zauderer and confirmed in Milavetz and Sorrell, is that the warnings (the means) be reasonably related to the purpose (here, preventing consumer deception). Zauderer, 471 U.S. at 651, 105 S.Ct. 2265; Milavetz, 130 S.Ct. at 1328; Sorrell, 272 F.3d at 115. This is plain from how Zauderer articulated the test: "unjustified or unduly burdensome disclosure requirements might offend the First Amendment by chilling protected commercial speech. But we hold that an
Second, the premise of Plaintiffs' argument—that consumers already know the health risks of using tobacco—is false. Plaintiffs rely on their expert Dr. Viscusi (an economist) to support this premise. But Viscusi admitted at trial in Philip Morris that his conclusions are largely based on research commissioned by tobacco-industry law firms specifically for use in litigation. (See Trial Tr. at 17930, Philip Morris, 449 F.Supp.2d 1) And myriad independent studies contradict Viscusi's position. See, e.g., 2007 IOM Report at 89-91, 93; The President's Cancer Panel, Promoting Healthy Lifestyles: Policy, Program, and Personal Recommendations for Reducing Cancer Risk 64 (2007) (hereafter, 2007 President's Cancer Panel Report). Most tellingly, in the nine-month long Philip Morris trial, the district court fully considered and rejected Viscusi's opinion
Plaintiffs next argue that the warnings will not reduce tobacco use, again relying on the opinions of Viscusi. But even if Plaintiffs were correct about this fact, it is irrelevant. The purpose of the warnings is to prevent consumers from being misled about the health risks of using tobacco. What matters in our review of the required warnings is not how many consumers ultimately choose to buy tobacco products, but that the warnings effectively communicate the associated health risks so that consumers possess accurate, factual information when deciding whether to buy tobacco products. As shown above, the warnings effectively convey this factual information, just as they were designed to do.
Plaintiffs' final argument that the warnings are unduly burdensome because their size drowns out their speech is unpersuasive. Again, to the extent that Plaintiffs argue that we must separately analyze whether the warnings are unduly burdensome, they are mistaken. The test is simply that the warnings be reasonably related to the government's interest in preventing consumer deception. Zauderer, 471 U.S. at 651, 105 S.Ct. 2265; Milavetz, 130 S.Ct. at 1328; Sorrell, 272 F.3d at 115. Ample evidence supports the size requirement for the new warnings, see, e.g., World Health Organization, WHO Framework Convention on Tobacco Control (2003), and Plaintiffs have not shown that the remaining portions of their packaging are insufficient for them to market their products. Moreover, this argument is undercut by Plaintiffs' claim that the warnings will not reduce the use of their tobacco products. If that is true, then the provision is certainly not unduly burdening Plaintiffs' speech.
The dissent's arguments concerning graphic warnings are unpersuasive as well. The dissent argues that the Act's required
Moreover, the dissent's reliance on the recent D.C. district court opinion actually undercuts the dissent's conclusion that the Act's required warnings are facially unconstitutional. As the dissent acknowledges, the district court in the D.C. case examined the "government's proposed color graphic images"—namely, the final nine images the FDA settled on when it issued its Final Rule. (Dissent at 530 n. 6); see R.J. Reynolds Tobacco Co. v. U.S. Food and Drug Admin., ___ F.Supp.2d ___, ___, ___ - ___, 2012 WL 653828, at *2, *4-6, *8 (D.D.C. February 29, 2012). The distinction drawn by the D.C. court between the graphic-warning requirements of the FDA's Rule and the graphic-warning requirements of the Act is a crucial one that the dissent's analysis glosses
We cannot join that analysis. Moreover, we vigorously disagree with the underlying premise that a disclosure that provokes a visceral response must fall outside Zauderer's ambit. Facts can disconcert, displease, provoke an emotional response, spark controversy, and even overwhelm reason, but that does not magically turn such facts into opinions. As set forth above, whether a disclosure is scrutinized under Zauderer turns on whether the disclosure conveys factual information or an opinion, not on whether the disclosure emotionally affects its audience or incites controversy. See Zauderer, 471 U.S. at 650-51, 105 S.Ct. 2265; Milavetz, 130 S.Ct. at 1340-41; Sorrell, 272 F.3d at 114 n. 5. Because graphics can present factual information regarding the health risks of using tobacco, and because this information alleviates the possibility of consumer confusion, the Act's graphic-warning requirement is constitutional under Zauderer.
We return to where we began—the lack of consumer awareness of tobacco's serious health risks resulting from the decades-long deception by Tobacco Companies. Ample evidence establishes that current warnings do not effectively inform consumers of the health risks of tobacco use and that consumers do not understand these risks. It is beyond cavil that adolescents are a target of the marketing expertise of Tobacco Companies, a targeting that exists precisely because of intertwined advantages—or for the young, disadvantages— the coupling of immaturity of risk perception with the evidence that the vast majority of regular smokers made the decision to begin smoking as an adolescent. It bears emphasizing that the risks here include the undisputed fact that Plaintiffs' products literally kill users and, often, members of the families of users: Tobacco products kill up to one-half of the people who use them as they are intended to be used. World Health Organization, Report on the Global Tobacco Epidemic V, 7 (2011); 2007 President's Cancer Panel Report at 61. Against this backdrop, the Act requires graphic and textual warnings that convey the factual health risks of smoking to provide consumers with truthful information as they make decisions about purchasing and using tobacco products.
For the reasons set forth above, we hold that the Act's warnings are reasonably related to the government's interest in preventing consumer deception and are therefore constitutional.
"The standard for determining the severability of an unconstitutional provision is well established: Unless it is evident that the Legislature would not have enacted those provisions which are within its power, independently of that which is not, the invalid part may be dropped if what is left is fully operative as a law." New York v. United States, 505 U.S. 144, 186, 112 S.Ct. 2408, 120 L.Ed.2d 120 (1992) (quoting Alaska Airlines, Inc. v. Brock, 480 U.S. 678, 684, 107 S.Ct. 1476, 94 L.Ed.2d 661 (1987)). Here, the provision governing the new labeling requirements remains fully operative absent the portions regarding the inclusion of graphic images. Furthermore, it is evident that Congress would have enacted the remainder of the warning label provision without the inclusion of the graphics requirement. This conclusion is borne out by the fact that Congress, since the inception of the tobacco warning label requirement, has on several occasions expanded the breadth and altered the appearance of the textural warning. See Comprehensive Smoking Education Act of 1984, Pub.L. 98-474, 98 Stat. 2200 (amending form of warning label); Public Health Cigarette Smoking Act of 1969, Pub.L. 91-222, 84 Stat. 87 (amending required warning language).
United States v. O'Brien, 391 U.S. 367, 376-77, 88 S.Ct. 1673, 20 L.Ed.2d 672 (1968).
Indeed, the word can highlights the fact that if the dissent were properly reviewing Plaintiffs' challenge to the warnings as a facial challenge, then it would uphold the warnings facially. Setting aside for the moment our disagreement with the premise that a disclosure that provokes a visceral response must fall outside Zauderer's ambit, if a graphic warning can evoke a visceral response, then obviously some graphic warnings will not. And if there are some graphic warnings that the dissent would find acceptable, then it should affirm the facial validity of the graphic-warnings requirement.
The dissent cites no authority supporting the proposition that a disclosure must be capable of addressing every conceivable problem to be constitutional, nor does it specify which health risks graphic warnings could not accurately convey. Moreover, the dissent's point is undercut by our unanimous determination that the textual warnings are constitutional even though they also address only a fraction of these health risks.