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Rubin v. Coors Brewing Co.

This Supreme Court case involves a challenge to a federal law that prohibited beer labels from displaying the alcohol content of the beer. The Court considered whether this prohibition on commercial speech violated the First Amendment. The Court found that while the government's interest in preventing "strength wars" among brewers was substantial, the labeling ban did not directly advance that interest and was more extensive than necessary to serve the interest. Therefore, the Court concluded the labeling ban was unconstitutional under the First Amendment's protection of commercial speech.

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216 views17 pages

Rubin v. Coors Brewing Co.

This Supreme Court case involves a challenge to a federal law that prohibited beer labels from displaying the alcohol content of the beer. The Court considered whether this prohibition on commercial speech violated the First Amendment. The Court found that while the government's interest in preventing "strength wars" among brewers was substantial, the labeling ban did not directly advance that interest and was more extensive than necessary to serve the interest. Therefore, the Court concluded the labeling ban was unconstitutional under the First Amendment's protection of commercial speech.

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Antonio Salvador
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Rubinv.CoorsBrewingCo.
514U.S.476(1995)
AnnotatethisCase

Opinion PDF

Syllabus | Case

OCTOBERTERM,1994

Syllabus

RUBIN,SECRETARYOFTHETREASURYv.

COORSBREWINGCO.

CERTIORARITOTHEUNITEDSTATESCOURTOFAPPEALSFORTHETENTH
CIRCUIT

No.931631.ArguedNovember30,1994DecidedApril19,1995

Because5(e)(2)oftheFederalAlcoholAdministrationAct(FAAAorAct),27U.S.C.
205(e)(2),prohibitsbeerlabelsfromdisplayingalcoholcontent,thefederalBureauof
Alcohol,TobaccoandFirearms(BATF)rejectedrespondentbrewer'sapplicationfor

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approvalofproposedlabelsthatdisclosedsuchcontent.Respondentfiledsuitforreliefon
thegroundthattherelevantprovisionsoftheActviolatedtheFirstAmendment'sprotection
ofcommercialspeech.TheGovernmentarguedthatthelabelingbanwasnecessaryto
suppressthethreatof"strengthwars"amongbrewers,who,withouttheregulation,would
seektocompeteinthemarketplacebasedonthepotencyoftheirbeer.TheDistrictCourt
invalidatedthelabelingban,andtheCourtofAppealsaffirmed.Althoughthelattercourt
foundthattheGovernment'sinterestinsuppressing"strengthwars"was"substantial"under
thetestsetoutinCentralHudsonGas&Elec.Corp.v.PublicServoComm'nofN.Y.,447
U.S.557,thecourtheldthatthebanviolatestheFirstAmendmentbecauseitfailsto
advancethatinterestinadirectandmaterialway.

Held:Section5(e)(2)violatestheFirstAmendment'sprotectionofcommercialspeech.
Pp.480491.

(a)Inscrutinizingaregulationofcommercialspeechthatconcernslawfulactivityandisnot
misleading,acourtmustconsiderwhetherthegovernmentalinterestassertedtosupportthe
regulationis"substantial."Ifthatisthecase,thecourtmustalsodeterminewhetherthe
regulationdirectlyadvancestheassertedinterestandisnomoreextensivethanis
necessarytoservethatinterest.CentralHudson,supra,at566.Here,respondentseeksto
discloseonlytruthful,verifiable,andnonmisleadingfactualinformationconcerningalcohol
content.Pp.480482.

(b)Theinterestincurbing"strengthwars"issufficiently"substantial"tosatisfyCentral
Hudson.TheGovernmenthasasignificantinterestinprotectingthehealth,safety,and
welfareofitscitizensbypreventingbrewersfromcompetingonthebasisofalcohol
strength,whichcouldleadtogreateralcoholismanditsattendantsocialcosts.Cf.Posadas
dePuertoRicoAssociatesv.TourismCo.ofP.R.,478U.S.328,341.Thereisnoreason
tothinkthatstrengthwars,iftheywere

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tooccur,wouldnotproducethetypeofsocialharmthattheGovernmenthopestoprevent.
However,theadditionalassertedinterestin"facilitat[ing]"stateeffortstoregulatealcohol
undertheTwentyfirstAmendmentisnotsufficientlysubstantialtomeetCentralHudson's
requirement.EveniftheGovernmentpossessedtheauthoritytofacilitatestatepowers,the
GovernmenthasofferednothingtosuggestthatStatesareinneedoffederalassistancein
thisregard.UnitedStatesv.EdgeBroadcastingCo.,509U.S.418,431435,distinguished.
pp.483486.

(c)Section205(e)(2)failsCentralHudson'srequirementthatthemeasuredirectlyadvance
theassertedGovernmentinterest.Thelabelingbancannotbesaidtoadvancethe
governmentalinterestinsuppressingstrengthwarsbecauseotherprovisionsoftheFAAA
andimplementingregulationsprevent205(e)(2)fromfurtheringthatinterestinadirect
andmaterialfashion.Althoughbeeradvertisingwouldseemtoconstituteamoreinfluential
weaponinanystrengthwarthanlabels,theBATFregulationsgoverningsuchadvertising
prohibitstatementsofalcoholcontentonlyinStatesthataffirmativelybansuch
advertisements.Governmentregulationsalsopermittheidentificationofcertainbeerswith
highalcoholcontentas"maltliquors,"andtheyrequiredisclosureofcontentonthelabelsof
winesandspirits.Thereislittlechancethat205(e)(2)candirectlyandmateriallyadvance
itsaim,whileotherprovisionsofthesameActdirectlyundermineandcounteractitseffects.
Pp.486490.

(d)Section205(e)(2)ismoreextensivethannecessary,sinceavailablealternativestothe
labelingbanincludingdirectlylimitingthealcoholcontentofbeers,prohibitingmarketing
effortsemphasizinghighalcoholstrength,andlimitingthebantomaltliquors,thesegment
ofthebeermarketthatallegedlyisthreatenedwithastrengthwarwouldprovelessintrusive
totheFirstAmendment'sprotectionsforcommercialspeech.Pp.490491.

2F.3d355,affirmed.

THOMAS,J.,deliveredtheopinionoftheCourt,inwhichREHNQUIST,C.J.,and
O'CONNOR,SCALIA,KENNEDY,SOUTER,GINSBURG,andBREYER,JJ.,joined.
STEVENS,J.,filedanopinionconcurringinthejudgment,post,p.491.

DeputySolicitorGeneralKneedlerarguedthecauseforpetitioner.Withhimonthebriefs
wereSolicitorGeneralDays,AssistantAttorneyGeneralHunger,RichardH.Seamon,
MichaelJaySinger,andJohnS.Koppel.

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BruceJ.Ennis,Jr.,arguedthecauseforrespondent.

WithhimonthebriefwereDonaldB.Verrilli,Jr.,PaulM.Smith,NoryMiller,M.Caroline
Turner,andTerranceD.Micek.*

JUSTICETHOMASdeliveredtheopinionoftheCourt.Section5(e)(2)oftheFederal
AlcoholAdministrationActprohibitsbeerlabelsfromdisplayingalcoholcontent.Wegranted
certiorariinthiscasetoreviewtheTenthCircuit'sholdingthatthelabelingbanviolatesthe
FirstAmendmentbecauseitfailstoadvanceagovernmentalinterestinadirectandmaterial
way.Because5(e)(2)isinconsistentwiththeprotectionsgrantedtocommercialspeechby
theFirstAmendment,weaffirm.

Respondentbrewsbeer.In1987,respondentappliedtotheBureauofAlcohol,Tobacco
andFirearms(BATF),anagencyoftheDepartmentoftheTreasury,forapprovalof
proposedlabelsandadvertisementsthatdisclosedthealcoholcontentofitsbeer.BATF
rejectedtheapplicationonthegroundthattheFederalAlcoholAdministrationAct(FAAAor
Act),49Stat.977,27U.S.C.201etseq.,prohibiteddisclosureofthealcoholcontentof
beeronlabelsorinadvertising.RespondentthenfiledsuitintheDistrict

*BriefsofamicicuriaeurgingreversalwerefiledfortheCenterforScienceinthePublic
InterestbyBruceA.SilvergladeandfortheCouncilofStateGovernmentsetal.byRichard
Ruda.

BriefsofamicicuriaeurgingaffirmancewerefiledfortheAssociationofNational
Advertisers,Inc.,etal.byBurtNeuborne,GilbertH.Weil,ValerieSchulte,andJohnF.
KampforPublicCitizenbyDavidC.VladeckfortheUnitedStatesTelephoneAssociation
etal.byMichaelWMcConnell,KennethS.Geller,CharlesA.Rothfeld,WilliamBarfield,and
GeraldE.MurrayandfortheWashingtonLegalFoundationbyCharlesFried,DonaldB.
Ayer,DanielJ.Popeo,andRichardA.Samp.

BriefsofamicicuriaewerefiledfortheBeerInstitutebyP.CameronDeVore,JohnJ.
Walsh,andStevenG.BrodyandfortheWineInstitutebyJohnC.Jeffries,Jr.

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CourtfortheDistrictofColoradoseekingadeclaratoryjudgmentthattherelevantprovisions
oftheActviolatedtheFirstAmendmentrespondentalsosoughtinjunctivereliefbarring
enforcementoftheseprovisions.TheGovernmenttookthepositionthatthebanwas
necessarytosuppressthethreatof"strengthwars"amongbrewers,who,withoutthe
regulation,wouldseektocompeteinthemarketplacebasedonthepotencyoftheirbeer.

TheDistrictCourtgrantedthereliefsought,butapaneloftheCourtofAppealsfortheTenth
Circuitreversedandremanded.AdolphCoorsCo.v.Brady,944F.2d1543(1991).Applying
theframeworksetoutinCentralHudsonGas&Elec.Corp.v.PublicServoComm'nofN.
Y.,447U.S.557(1980),theCourtofAppealsfoundthattheGovernment'sinterestin
suppressingalcoholic"strengthwars"was"substantial."Brady,supra,at15471549.It
furtherheld,however,thattherecordprovidedinsufficientevidencetodeterminewhether
theFAAA'sbanondisclosure"directlyadvanced"thatinterest.Id.,at15491551.Thecourt
remandedforfurtherproceedingstoascertainwhethera"'reasonablefit'"existedbetween
thebanandthegoalofavoidingstrengthwars.Id.,at1554.

Afterfurtherfactfinding,theDistrictCourtupheldthebanonthedisclosureofalcohol
contentinadvertisingbutinvalidatedthebanasitappliedtolabels.Althoughthe
GovernmentaskedtheTenthCircuittoreviewtheinvalidationofthelabelingban,
respondentdidnotappealthecourt'sdecisionsustainingtheadvertisingban.Onthecase's
secondappeal,theCourtofAppealsaffirmedtheDistrictCourt.AdolphCoorsCo.v.
Bentsen,2F.3d355(1993).FollowingourrecentdecisioninEdenfieldv.Fane,507U.S.
761(1993),theTenthCircuitaskedwhethertheGovernmenthadshownthatthe"
'challengedregulationadvances[theGovernment's]interestsinadirectandmaterialway.'"
2F.3d,at357(quotingEdenfield,supra,at767768).Afterreviewingtherecord,theCourt
ofAppealsconcludedthattheGovernment

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hadfailedtodemonstratethattheprohibitioninanywaypreventedstrengthwars.Thecourt
foundthattherewasnoevidenceofanyrelationshipbetweenthepublicationoffactual
informationregardingalcoholcontentandcompetitiononthebasisofsuchcontent.2F.3d,
at358359.

Wegrantedcertiorari,512U.S.1203(1994),toreviewtheTenthCircuit'sdecisionthat
205(e)(2)violatestheFirstAmendment.Weconcludethatthebaninfringesrespondent's
freedomofspeech,andwethereforeaffirm.

IIA

SoonaftertheratificationoftheTwentyfirstAmendment,whichrepealedtheEighteenth
AmendmentandendedtheNation'sexperimentwithProhibition,CongressenactedtheF
AAA.Thestatuteestablishesnationalrulesgoverningthedistribution,production,and
importationofalcoholandestablishedaFederalAlcoholAdministrationtoimplementthese
rules.Section5(e)(2)oftheActprohibitsanyproducer,importer,wholesaler,orbottlerof
alcoholicbeveragesfromselling,shipping,ordeliveringininterstateorforeigncommerce
anymaltbeverages,distilledspirits,orwinesinbottles

"unlesssuchproductsarebottled,packaged,andlabeledinconformitywith
suchregulations,tobeprescribedbytheSecretaryoftheTreasury,with
respecttopackaging,marking,branding,andlabelingandsizeandfillof
container...aswillprovidetheconsumerwithadequateinformationastothe
identityandqualityoftheproducts,thealcoholiccontentthereof(exceptthat
statementsof,orstatementslikelytobeconsideredasstatementsof,
alcoholiccontentofmaltbeveragesareprohibitedunlessrequiredbyState
lawandexceptthat,incaseofwines,statementsofalcoholiccontentshallbe
requiredonlyforwinescontainingmorethan14percentumofalcoholby
volume),thenetcontentsof

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thepackage,andthemanufacturerorbottlerorimporteroftheproduct."27U.
S.C.205(e)(2)(emphasisadded).

TheActdefines"'maltbeverage[sJ'''insuchawayastoincludeallbeersandales.211(a)
(7).

ImplementingregulationspromulgatedbyBATF(underdelegationofauthorityfromthe
SecretaryoftheTreasury)prohibitthedisclosureofalcoholcontentonbeerlabels.27CFR
7.26(a)(1994).1Inadditiontoprohibitingnumericalindicationsofalcoholcontent,the
labelingregulationsproscribedescriptivetermsthatsuggesthighcontent,suchas"strong,"
"fullstrength,""extrastrength,""hightest,""highproof,""prewarstrength,"and"fulloldtime
alcoholicstrength."7.29(f).Theprohibitionsdonotprecludelabelsfromidentifyingabeer
as"lowalcohol,""reducedalcohol,""nonalcoholic,"or"alcoholfree."Ibid.seealso
7.26(b)(d).Bystatuteandbyregulation,thelabelingbanmustgivewayifstatelawrequires
disclosureofalcoholcontent.

Bothpartiesagreethattheinformationonbeerlabelsconstitutescommercialspeech.
ThoughweoncetookthepositionthattheFirstAmendmentdoesnotprotectcommercial
speech,seeValentinev.Chrestensen,316U.S.52(1942),werepudiatedthatpositionin
VirginiaBd.ofPharmacyv.VirginiaCitizensConsumerCouncil,Inc.,425U.S.748(1976).
Therewenotedthatthefreeflowofcommercialinformationis"indispensabletotheproper
allocationofresourcesinafreeenterprisesystem"becauseitinformsthenumerousprivate
decisionsthatdrivethesystem.Id.,at765.Indeed,weobservedthata"particular
consumer'sinterestinthe

1BATFhassuspended7.26tocomplywiththeDistrictCourt'sorderenjoiningthe
enforcementofthatprovision.58Fed.Reg.21228(1993).Pendingthefinaldispositionof
thiscase,interimregulationspermitthedisclosureofalcoholcontentonbeerlabels.27
CFR7.71(1994).

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freeflowofcommercialinformation...maybeaskeen,ifnotkeenerbyfar,thanhisinterest
intheday'smosturgentpoliticaldebate."Id.,at763.

Still,VirginiaBoardofPharmacysuggestedthatcertaintypesofrestrictionsmightbe
toleratedinthecommercialspeechareabecauseofthenatureofsuchspeech.Seeid.,at
771772,n.24.Inlaterdecisionswegraduallyarticulatedatestbasedon"'the
"commonsense"distinctionbetweenspeechproposingacommercialtransaction,which
occursinanareatraditionallysubjecttogovernmentregulation,andothervarietiesof
speech.'"CentralHudson,447U.S.,at562(quotingOhralikv.OhioStateBarAssn.,436
U.S.447,455456(1978)).CentralHudsonidentifiedseveralfactorsthatcourtsshould
considerindeterminingwhetheraregulationofcommercialspeechsurvivesFirst
Amendmentscrutiny:

"Forcommercialspeechtocomewithin[theFirstAmendment],itatleastmust
concernlawfulactivityandnotbemisleading.Next,weaskwhetherthe
assertedgovernmentalinterestissubstantial.Ifbothinquiriesyieldpositive
answers,wemustdeterminewhethertheregulationdirectlyadvancesthe
governmentalinterestasserted,andwhetheritisnotmoreextensivethanis
necessarytoservethatinterest."447U.S.,at566.

WenowapplyCentralHudson'stestto205(e)(2).2

2TheGovernmentarguesthatCentralHudsonimposestoostrictastandardforreviewing
205(e)(2),andurgesustoadoptinsteadafarmoredeferentialapproachtorestrictionson
commercialspeechconcerningalcohol.RelyingonUnitedStatesv.EdgeBroadcastingCo.,
509U.S.418(1993),andPosadasdePuertoRicoAssociatesv.TourismCo.ofP.R.,478
U.S.328(1986),theGovernmentsuggeststhatlegislatureshavebroaderlatitudeto
regulatespeechthatpromotessociallyharmfulactivities,suchasalcoholconsumption,than
theyhavetoregulateothertypesofspeech.AlthoughEdgeBroadcastingandPosadas
involvedtheadvertisingofgamblingactivities,theGovernmentarguesthatwealsohave
appliedthisprincipletospeechconcerningalcohol.SeeCaliforniav.LaRue,409

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III

Boththelowercourtsandthepartiesagreethatrespondentseekstodiscloseonlytruthful,
verifiable,andnonmisleadingfactualinformationaboutalcoholcontentonitsbeerlabels.
Thus,ouranalysisfocusesonthesubstantialityoftheinterestbehind205(e)(2)andon
whetherthelabelingbanbearsanacceptablefitwiththeGovernment'sgoal.Acareful
considerationofthesefactorsindicatesthat205(e)(2)violatestheFirstAmendment's
protectionofcommercialspeech.

TheGovernmentidentifiestwointerestsitconsiderssufficiently"substantial"tojustify
205(e)(2)'slabelingban.First,theGovernmentcontendsthat205(e)(2)advances
Congress'goalofcurbing"strengthwars"bybeerbrewerswhomightseektocompetefor
customersonthebasisofalcoholcontent.AccordingtotheGovernment,theFAAA's
restrictionpreventsaparticulartypeofbeerdrinkerone

u.S.109,138(1972)(holdingthatStatesmaybannudedancinginbarsandnightclubsthat
serveliquor).

NeitherEdgeBroadcastingnorPosadascompelsustocraftanexceptiontotheCentral
Hudsonstandard,forinbothofthosecasesweappliedtheCentralHudsonanalysis.
Indeed,EdgeBroadcastingspecificallyavoidedreachingtheargumenttheGovernment
makesherebecausetheCourtfoundthattheregulationinquestionpassedmusterunder
CentralHudson.509U.S.,at425.Tobesure,PosadasdidstatethatthePuertoRico
Governmentcouldbanpromotionaladvertisingofcasinogamblingbecauseitcouldhave
prohibitedgamblingaltogether.478U.S.,at346.ButtheCourtreachedthisargumentonly
afteritalreadyhadfoundthatthestateregulationsurvivedtheCentralHudsontest.See
478U.S.,at340344.TheCourtraisedtheGovernment'spointinresponsetoan
alternativeclaimthatPuertoRico'sregulationwasinconsistentwithCareyv.Population
ServicesInt'l,431U.S.678(1977),andBigelowv.Virginia,421U.S.809(1975).Posadas,
supra,at345346.

NordoesLaRuesupporttheGovernment'sposition.LaRuedidnotinvolvecommercial
speechaboutalcohol,butinsteadconcernedtheregulationofnudedancinginplaceswhere
alcoholwasserved.409U.S.,at114.

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whoselectsabeveragebecauseofitshighpotencyfromchoosingbeerssolelyfortheir
alcoholcontent.IntheGovernment'sview,restrictingdisclosureofinformationregardinga
particularproductcharacteristicwilldecreasetheextenttowhichconsumerswillselectthe
productonthebasisofthatcharacteristic.

RespondentcountersthatCongressactuallyintendedtheFAAAtoachievethefardifferent
purposeofpreventingbrewersfrommakinginaccurateclaimsconcerningalcoholcontent.
Accordingtorespondent,whenCongresspassedtheFAAAin1935,brewersdidnothave
thetechnologytoproducebeerwithalcohollevelswithinpredictabletolerancesaskillthat
modernbeerproducersnowpossess.Further,respondentarguesthatthetruepolicy
guidingfederalalcoholregulationisnotaimedatsuppressingstrengthwars.Ifsuchwere
thegoal,theGovernmentwouldnotpursuetheoppositepolicywithrespecttowinesand
distilledspirits.Although205(e)(2)requiresBATFtopromulgateregulationsbarringthe
disclosureofalcoholcontentonbeerlabels,italsoordersBATFtorequirethedisclosureof
alcoholcontentonthelabelsofwinesandspirits.See27CFR4.36(1994)(wines)5.37
(distilledspirits).

Ratherthansuppressingthefreeflowoffactualinformationinthewineandspiritsmarkets,
theGovernmentseekstocontrolcompetitiononthebasisofstrengthbymonitoring
distillers'promotionsandmarketing.Respondentquitecorrectlynotesthatthegeneral
thrustoffederalalcoholpolicyappearstofavorgreaterdisclosureofinformation,ratherthan
less.Thisalsoseemstobethetrendinfederalregulationofotherconsumerproductsas
well.See,e.g.,NutritionLabelingandEducationActof1990,Pub.L.101535,104Stat.
2353,asamended(requiringlabelsoffoodproductssoldintheUnitedStatestodisplay
nutritionalinformation).

Respondentoffersaplausiblereadingofthepurposebehind205(e)(2),buttheprevention
ofmisleadingstatementsofalcoholcontentneednotbetheexclusiveGovernmentin

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terestservedby205(e)(2).InPosadasdePuertoRicoAssociatesv.TourismCo.ofP.R.,
478U.S.328,341(1986),wefoundthatthePuertoRicoLegislature'sinterestinpromoting
thehealth,safety,andwelfareofitscitizensbyreducingtheirdemandforgamblingprovided
asufficiently"substantial"governmentalinteresttojustifytheregulationofgambling
advertising.SotootheGovernmentherehasasignificantinterestinprotectingthehealth,
safety,andwelfareofitscitizensbypreventingbrewersfromcompetingonthebasisof
alcoholstrength,whichcouldleadtogreateralcoholismanditsattendantsocialcosts.Both
panelsoftheCourtofAppealsthatheardthiscaseconcludedthatthegoalofsuppressing
strengthwarsconstitutedasubstantialinterest,andwecannotsaythattheirconclusionis
erroneous.Wehavenoreasontothinkthatstrengthwars,iftheyweretooccur,wouldnot
producethetypeofsocialharmthattheGovernmenthopestoprevent.

TheGovernmentattemptstobolsteritspositionbyarguingthatthelabelingbannotonly
curbsstrengthwars,butalso"facilitates"stateeffortstoregulatealcoholundertheTwenty
firstAmendment.TheSolicitorGeneraldirectsustoUnitedStatesv.EdgeBroadcasting
Co.,509U.S.418(1993),inwhichweupheldafederallawthatprohibitedlottery
advertisingbyradiostationslocatedinStatesthatdidnotoperatelotteries.Thatcase
involvedastationlocatedinNorthCarolina(anonlotteryState)thatbroadcastlottery
advertisementsprimarilyintoVirginia(aStatewithalottery).Weupheldthestatuteagainst
FirstAmendmentchallengeinpartbecauseitsupportedNorthCarolina'santigambling
policywithoutundulyinterferingwithStatesthatsponsoredlotteries.Id.,at431435.Inthis
case,theGovernmentclaimsthattheinterestbehind205(e)(2)mirrorsthatofthestatute
inEdgeBroadcastingbecauseitprohibitsdisclosureofalcoholcontentonlyinStatesthat
donotaffirmativelyrequirebrewerstoprovidethatinformation.IntheGovernment'sview,
thissavesStatesthatmightwishto

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bansuchlabelsthetroubleofenactingtheirownlegislation,anditdiscouragesbeer
drinkersfromcrossingstatelinestobuybeertheybelieveisstronger.

WeconcludethattheGovernment'sinterestinpreservingstateauthorityisnotsufficiently
substantialtomeettherequirementsofCentralHudson.EveniftheFederalGovernment
possessedthebroadauthoritytofacilitatestatepowers,inthiscasetheGovernmenthas
offerednothingthatsuggeststhatStatesareinneedoffederalassistance.Statesclearly
possessampleauthoritytobanthedisclosureofalcoholcontentsubject,ofcourse,tothe
sameFirstAmendmentrestrictionsthatapplytotheFederalGovernment.Unlikethe
situationinEdgeBroadcasting,thepoliciesofsomeStatesdonotpreventneighboring
Statesfrompursuingtheirownalcoholrelatedpolicieswithintheirrespectiveborders.One
State'sdecisiontopermitbrewerstodisclosealcoholcontentonbeerlabelswillnot
precludeneighboringStatesfromeffectivelybanningsuchdisclosureofthatinformation
withintheirborders.

TheremainingCentralHudsonfactorsrequirethatavalidrestrictiononcommercialspeech
directlyadvancethegovernmentalinterestandbenomoreextensivethannecessaryto
servethatinterest.Wehavesaidthat"[t]helasttwostepsoftheCentralHudsonanalysis
basicallyinvolveaconsiderationofthe'fit'betweenthelegislature'sendsandthemeans
chosentoaccomplishthoseends."Posadas,supra,at341.TheTenthCircuitfoundthat
205(e)(2)failedtoadvancetheinterestinsuppressingstrengthwarssufficientlytojustifythe
ban.Weagree.

JusttwoTermsago,inEdenfieldv.Fane,507U.S.761(1993),wehadoccasiontoexplain
theCentralHudsonfactorconcerningwhethertheregulationofcommercialspeech"directly
advancesthegovernmentalinterestasserted."CentralHudson,447U.S.,at566.In
Edenfield,wedecided

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thattheGovernmentcarriestheburdenofshowingthatthechallengedregulationadvances
theGovernment'sinterest"inadirectandmaterialway."507U.S.,at767.Thatburden"is
notsatisfiedbymerespeculationorconjecturerather,agovernmentalbodyseekingto
sustainarestrictiononcommercialspeechmustdemonstratethattheharmsitrecitesare
realandthatitsrestrictionwillinfactalleviatethemtoamaterialdegree."Id.,at770771.
Wecautionedthatthisrequirementwascriticalotherwise,"aStatecouldwitheaserestrict
commercialspeechintheserviceofotherobjectivesthatcouldnotthemselvesjustifya
burdenoncommercialexpression."Id.,at771.

TheGovernmentattemptstomeetitsburdenbypointingtocurrentdevelopmentsinthe
consumermarket.Itclaimsthatbeerproducersarealreadycompetingandadvertisingon
thebasisofalcoholstrengthinthe"maltliquor"segmentofthebeermarket.3The
Governmentattemptstoshowthatthiscompetitionthreatenstospreadtotherestofthe
marketbydirectingourattentiontorespondent'smotivesinbringingthislitigation.
Respondentallegedlysuffersfromconsumermisperceptionsthatitsbeerscontainless
alcoholthanotherbrands.AccordingtotheGovernment,oncerespondentgainsrelieffrom
205(e)(2),itwilluseitslabelstoovercomethishandicap.

UndertheGovernment'stheory,205(e)(2)suppressesthethreatofsuchcompetitionby
preventingconsumersfromchoosingbeersonthebasisofalcoholcontent.Itisassuredlya
matterof"commonsense,"BriefforPetitioner27,thatarestrictionontheadvertisingofa
productcharacteristicwilldecreasetheextenttowhichconsumersselectaproductonthe
basisofthattrait.Inadditiontocommonsense,theGovernmenturgesustoturntohistory
asaguide.Ac

3"'Maltliquor'isthetermusedtodesignatethosemaltbeverageswiththehighestalcohol
content....Maltliquorsrepresentapproximatelythreepercentofthemaltbeveragemarket."
AdolphCoorsCo.v.Bentsen,2F.3d355,358,n.4(CAlO1993).

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cordingtotheGovernment,atthetimeCongressenactedtheFAAA,theuseoflabels
displayingalcoholcontenthadhelpedproduceastrengthwar.Section205(e)(2)allegedly
relievedcompetitivepressurestomarketbeeronthebasisofalcoholcontent,resultingover
thelongterminbeerswithloweralcohollevels.

Weconcludethat205(e)(2)cannotdirectlyandmateriallyadvanceitsassertedinterest
becauseoftheoverallirrationalityoftheGovernment'sregulatoryscheme.Whilethelaws
governinglabelingprohibitthedisclosureofalcoholcontentunlessrequiredbystatelaw,
federalregulationsapplyacontrarypolicytobeeradvertising.27U.S.C.205(f)(2)27
CFR7.50(1994).Like205(e)(2),theserestrictionsprohibitstatementsofalcohol
contentinadvertising,but,unlike205(e)(2),theyapplyonlyinStatesthataffirmatively
prohibitsuchadvertisements.Asonly18Statesatbestprohibitdisclosureofcontentin
advertisements,App.toBriefforRespondentla12a,brewersremainfreetodisclose
alcoholcontentinadvertisements,butnotonlabels,inmuchofthecountry.Thefailureto
prohibitthedisclosureofalcoholcontentinadvertising,whichwouldseemtoconstitutea
moreinfluentialweaponinanystrengthwarthanlabels,makesnorationalsenseifthe
Government'strueaimistosuppressstrengthwars.

OtherprovisionsoftheFAAAanditsregulationssimilarlyundermine205(e)(2)'seffortsto
preventstrengthwars.While205(e)(2)bansthedisclosureofalcoholcontentonbeer
labels,itallowstheexactoppositeinthecaseofwinesandspirits.Thus,distilledspiritsmay
containstatementsofalcoholcontent,27CFR5.37(1994),andsuchdisclosuresare
requiredforwineswithmorethan14percentalcohol,27CFR4.36(1994).Ifcombating
strengthwarswerethegoal,wewouldassumethatCongresswouldregulatedisclosureof
alcoholcontentforthestrongestbeveragesaswellasfortheweakestones.Further,the
Governmentpermitsbrewerstosignalhighalcoholcontentthroughuse

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oftheterm"maltliquor."AlthoughtheSecretaryhasproscribedtheuseofvariouscolorful
termssuggestinghighalcohollevels,27CFR7.29(f)(1994),manufacturersstillcan
distinguishaclassofstrongermaltbeveragesbyidentifyingthemasmaltliquors.One
wouldthinkthatiftheGovernmentsoughttosuppressstrengthwarsbyprohibiting
numericaldisclosuresofalcoholcontent,italsowouldprecludebrewersfromindicating
higheralcoholbeveragesbyusingdescriptiveterms.

Whilewearemindfulthatrespondentonlyappealedtheconstitutionalityof205(e)(2),
theseexemptionsandinconsistenciesbringintoquestionthepurposeofthelabelingban.
Tobesure,theGovernment'sinterestincombatingstrengthwarsremainsavalidgoal.But
theirrationalityofthisuniqueandpuzzlingregulatoryframeworkensuresthatthelabeling
banwillfailtoachievethatend.Thereislittlechancethat205(e)(2)candirectlyand
materiallyadvanceitsaim,whileotherprovisionsofthesameActdirectlyundermineand
counteractitseffects.

Thisconclusionexplainsthefindingsofthecourtsbelow.

BoththeDistrictCourtandtheCourtofAppealsfoundthattheGovernmenthadfailedto
presentanycredibleevidenceshowingthatthedisclosureofalcoholcontentwouldpromote
strengthwars.IntheDistrictCourt'swords,"noneofthewitnesses,noneofthedepositions
thatIhaveread,nocredibleevidencethatIhaveheard,lead[s]metobelievethatgiving
alcoholiccontentonlabelswillinanywaypromote...strengthwars."App.toPet.forCert.
A38.SeealsoBentsen,2F.3d,at359.Indeed,theDistrictCourtconcludedthat"
[p]rohibitingthealcoholiccontentdisclosureofmaltbeveragesonlabelshaslittle,if
anything,todowiththetypeofadvertisingthatpromotesstrengthwars."App.toPet.for
Cert.A36.4AstheFAAA'sexceptionsandreg

4NotonlywastherelittleevidencethatAmericanbrewersintendtoincreasealcohol
content,butthelowercourtsalsofoundthat"intheUnitedStates...thevastmajorityof
consumers...valuetasteand

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ulationswouldhavecounteractedanyeffectthelabelingbanhadexerted,itisnotsurprising
thatthelowercourtsdidnotfindanyevidencethat205(e)(2)hadsuppressedstrength
wars.

TheGovernment'sbriefsubmitsanecdotalevidenceandeducatedguessestosuggestthat
competitiononthebasisofalcoholcontentisoccurringtodayandthat205(e)(2)'sban
hasconstrainedstrengthwarsthatotherwisewouldburstoutofcontrol.Thesevarious
tidbits,however,cannotovercometheirrationalityoftheregulatoryschemeandtheweight
oftherecord.TheGovernmentdidnotofferanyconvincingevidencethatthelabelingban
hasinhibitedstrengthwars.Indeed,itcouldnot,inlightoftheeffectoftheFAAA'sother
provisions.Theabsenceofstrengthwarsoverthepastsixdecadesmayhaveresultedfrom
anynumberoffactors.

Nordowethinkthatrespondent'slitigatingpositionscanbeusedagainstitasproofthatthe
Government'sregulationisnecessary.Thatrespondentwishestodisseminatefactual
informationconcerningalcoholcontentdoesnotdemonstratethatitintendstocompeteon
thebasisofalcoholcontent.Brewersmayhavemanydifferentreasonsonlyoneofwhich
mightbeadesiretowageastrengthwarwhytheywishtodisclosethepotencyoftheir
beverages.

Evenif205(e)(2)didmeettheEdenfieldstandard,itwouldstillnotsurviveFirst
AmendmentscrutinybecausetheGovernment'sregulationofspeechisnotsufficiently
tailoredtoitsgoal.TheGovernmentarguesthatasufficient"fit"existsherebecausethe
labelingbanappliestoonlyoneproductcharacteristicandbecausethebandoesnot
prohibitalldisclosuresofalcoholcontentitappliesonlytothoseinvolvinglabelingand
advertising.Inresponse,respondentsuggestsseveralalternatives,suchasdirectlylimiting
thealcoholcontentofbeers,prohibitingmarketingeffortsem

lowercaloriesbothofwhichareadverselyaffectedbyincreasedalcoholstrength."Bentsen,
2F.3d,at359accord,App.toPet.forCert.A37.

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phasizinghighalcoholstrength(whichisapparentlythepolicyinsomeotherwestern
nations),orlimitingthelabelingbanonlytomaltliquors,whichisthesegmentofthemarket
thatallegedlyisthreatenedwithastrengthwar.Weagreethattheavailabilityofthese
options,allofwhichcouldadvancetheGovernment'sassertedinterestinamannerless
intrusivetorespondent'sFirstAmendmentrights,indicatesthat205(e)(2)ismore
extensivethannecessary.

IV

Insum,althoughtheGovernmentmayhaveasubstantialinterestinsuppressingstrength
warsinthebeermarket,theFAAA'scountervailingprovisionsprevent205(e)(2)from
furtheringthatpurposeinadirectandmaterialfashion.TheFAAA'sdefectsarefurther
highlightedbytheavailabilityofalternativesthatwouldprovelessintrusivetotheFirst
Amendment'sprotectionsforcommercialspeech.Becausewefindthat205(e)(2)failsthe
CentralHudsontest,weaffirmthedecisionofthecourtbelow.

Itissoordered.

JUSTICESTEVENS,concurringinthejudgment.

AlthoughIagreewiththeCourt'spersuasivedemonstrationthatthisstatutedoesnotserve
theGovernment'spurportedinterestinpreventing"strengthwars,"Iwriteseparately
becauseIamconvincedthattheconstitutionalinfirmityinthestatuteismorepatentthanthe
Court'sopinionindicates.InsteadofrelyingontheformulaicapproachannouncedinCentral
HudsonGas&Elec.Corp.v.PublicServoComm'nofN.Y.,447U.S.557(1980),Ibelieve
theCourtshouldaskwhetherthejustificationforallowingmoreregulationofcommercial
speechthanotherspeechhasanyapplicationtothisunusualstatute.

Inmyopinionthe"commercialspeechdoctrine"isunsuitedtothiscase,becausethe
FederalAlcoholAdministra

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