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Corporate free speech needs to be curbed
by Russel Mokhiber and Robert Weissman
—Guest Columnists—
(FinalCall.com) -- Corporations are gaining ground fast in
their effort to assume all of the U.S. constitutional protections
afforded human beings.
Some of the last limitations on corporate free speech rights may be
about to fall, thanks to Supreme Court decisions that increasingly
equate commercial advertising with political speech, and a Food and Drug
Administration (FDA) that appears eager to accept Court-imposed
restrictions on its authority.
An 1886 Supreme Court decision established that corporations in the
United States are entitled to constitutional protections. Since then,
the Court has progressively extended Bill of Rights protections,
including First Amendment speech rights, and other constitutional
guarantees to corporations. In 1978, the Court established a
constitutional right to "commercial speech"—speech intended to promote
and advertise products for sale, as opposed to political or expressive
speech.
Since 1978, the courts have steadily expanded commercial speech
rights, taking a potentially dramatic step in a decision issued earlier
this year.
In that decision, Thompson v. Western States Medical Center, the
Supreme Court interpreted its commercial speech test, developed in a
case called Central Hudson, to make it very difficult for the government
to restrict commercial speech.
Western States Medical Center involved a provision of a 1997 law that
permits pharmacies to make compounded pharmaceuticals—drugs manufactured
on the premises, to serve the specific needs of particular patients. The
1997 law permits compounded drugs to be sold—even though they have not
passed FDA safety and efficacy tests—but on condition that they not be
advertised. The basic idea is to seek a balance: to permit manufacture
for specifically prescribed needs, but to prevent pharmacies from
circumventing the FDA’s safety rules by advertising untested compounded
drugs to the broad public.
The Supreme Court struck down this provision, holding that it
violated the commercial speech rights of the pharmacies.
This holding seems to move the Central Hudson test away from
ascertaining whether there is a reasonable fit between the government’s
commercial speech regulations and its legitimate goals, and towards a
much higher level of scrutiny. The Court is beginning to break down the
constitutional distinction between political and (non-misleading)
commercial speech—even though commercial speech protections essentially
apply uniquely to corporations, which do most commercial advertising.
The Supreme Court justifies this rising level of protection for
commercial speech on the grounds that the government cannot legitimately
deny the public truthful commercial information to prevent the public
from making bad decisions with the information.
But why not?
If the Court is going to justify commercial speech protections based
on the public’s right to know, as opposed to the speaker’s right to
speak, it makes sense for the government to make determinations about
whether the commercial information actually will educate the public to
advance public policy goals. It is hardly a revelation that advertising
contains promotional elements that may drown out its educational
benefits.
The high level of protection afforded to commercial speech by the
courts poses a difficult challenge for regulatory agencies that
reasonably seek to restrict advertising, including and especially the
FDA, which has good public health reasons to restrict advertising and
promotional claims.
For example, drug companies now spend billions of dollars a year on
Direct-to-Consumer (DTC) prescription drug advertising, with more spent
to advertise leading drug brands than Pepsi or Budweiser. These ads
encourage consumers to demand, and doctors to prescribe, pharmaceuticals
that people don’t need. The ads fail to convey the comparative benefits
of the marketed drugs to alternatives. They don’t reveal price
information. DTC ads should be prohibited. But as long as the Supreme
Court holds that there are constitutional speech protections, they must
be highly regulated. Now, the extent of FDA’s authority to regulate DTC
ads is somewhat uncertain.
Or consider tobacco (not currently under the jurisdiction of the FDA,
or any federal health agency). There is an abundance of studies
conclusively showing that advertising increases smoking rates,
especially among youth. Tobacco ads and promotions should be banned.
Commercial speech protections make this impossible. The Court’s new
formulation may also make even more modest restrictions on tobacco
promotion very difficult.
There is no question that the Court has made things hard for the FDA,
which must maneuver to give itself the greatest possible latitude to
restrict advertising to protect public health.
Unfortunately, the FDA seems quite happy to forfeit the powers it
needs to do its job. In May, the agency put out a request for comments
(with a comment period open until mid-September) on issues involving
First Amendment protections for commercial speech and the scope of the
agency’s authority. It appears the agency is looking for excuses to
throw up its hands.
The outcome, however, is not a foregone conclusion. Twenty-five years
ago, there were no constitutional protections for commercial speech. The
tide can be turned back, beginning with a public demand that the Food
and Drug Administration—the leading U.S. public health regulatory
agency—assert the supremacy of protecting the public health over a
purported constitutional right for corporations to hawk their wares.
To see what you can do to help block this corporate empowerment, see:
www.essentialaction.org/commercialspeech.
(Russell Mokhiber and Robert Weissman are co-authors of "Corporate
Predators: The Hunt for MegaProfits and the Attack on Democracy.")
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