COUNSEL: For STATE OF
MISSOURI, ex rel., Jeremiah W. (Jay) Nixon, Attorney General
Plaintiff-Appellant: Jill C, LaHue, ATTORNEY GENERAL'S OFFICE, Jefferson City,
MO.
For Fax.Com, Inc. Movant Below-Appellee: Mary Ann L. Wymore, John E. Petite,
GREENSFELDER & HEMKER, St. Louis, MO; Arthur W. Lefco, Michael P. Broadhurst,
COZEN & O'CONNOR, Philadelphia, PA; David B. Felsenthal, Los Angeles, CA.
For STATE OF CALIFORNIA, STATE OF ALASKA, STATE OF ARKANSAS, STATE OF
CONNECTICUT, STATE OF COLORADO, DISTRICT OF COLUMBIA, STATE OF FLORIDA, STATE
OF IDAHO, STATE OF ILLINOIS, STATE OF IOWA, STATE OF KENTUCKY, STATE OF
MARYLAND, STATE OF MICHIGAN, STATE OF MINNESOTA, STATE OF NEW MEXICO, STATE OF
OREGON, STATE OF SOUTH DAKOTA, STATE OF TEXAS, STATE OF VERMONT, STATE OF WEST
VIRGINIA Appellants, Amici on behalf of: Seth E. Mermin, ATTORNEY GENERAL'S
OFFICE, San Francisco, CA.
For AMERICAN BUSINESS MEDIA Appellee, Amicus on Behalf of: Mark Stephen
Sableman, THOMPSON & COBURN, St. Louis, MO.
For WAL-MART STORES, Inc. Appellee, Amicus on Behalf of: Jonathan K. Stock,
Jeffrey S. Sutton, JONES & DAY, Columbus, OH.
For ACS SYSTEMS, INCORPORATED, MICRO GENERAL CORPORATION Appellees, Amicus on
Behalf of: Thomas E. Kimball, WRIGHT & ROBINSON, Los Angeles, CA.
For UNITED STATES OF AMERICA Appellant, Intervenor Plaintiff: Deborah L.
Golemon, U.S. ATTORNEY'S OFFICE, St. Louis, MO; Mark B. Stern, Alisa B. Klein,
Sharon Swingle, Theodore C. Hirt, U.S. DEPARTMENT OF JUSTICE, Washington, DC
For AMERICAN
BLAST FAX, INC., A Texas corporation not authorized to transact
business in Missouri as a foreign corporation Defendant: Mark Stephen Sableman,
THOMPSON & COBURN, St. Louis, MO.
JUDGES: Before WOLLMAN
and MURPHY, Circuit Judges, and GRITZNER, n1 District Judge.
n1 The Honorable James E. Gritzner, United States District Judge for the
Southern District of Iowa, sitting by designation.
OPINIONBY: MURPHY
OPINION:
MURPHY, Circuit Judge.
In these two consolidated cases the State of Missouri sued American
Blast Fax, Inc. and Fax.com, Inc. for violating statutory restrictions
on unsolicited fax advertising. The district court held that the relevant part
of the Telephone Consumer Protection Act of 1991(TCPA),
47 U.S.C. § 227(b)(1)(C)(2000), violated the
First Amendment guarantee of freedom of speech, and dismissed the action.
n2
Missouri ex rel. Nixon v. Am.
Blast Fax, Inc., 196 F. Supp. 2d 920, 934(E.D. Mo. 2002).
Intervenor United States and Missouri appeal(collectively "the Government").
We reverse.
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n2 The district court also dismissed other allegations in the complaints. Also
dismissed were alleged statutory violations for omitting information required
by TCPA sec. 3, § 227(d),
47 U.S.C. § 227(d), and for misrepresenting that advertisements complied
with federal law in violation of the Missouri Merchandising Practices Act, Mo.
Rev. Stat. § 407.010. No issue has been raised on appeal about these dismissed
claims. See
Halabi v. Aschroft, 316 F.3d 807, 808 (8th Cir. 2003) (objection waived if
not briefed).
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[*2]
I.
American
Blast Fax n3 and Fax.com (FC) provide promotional services by
transmitting client advertisements to the fax machines of potential customers.
In response to numerous consumer complaints, Missouri sought injunctions and
civil penalties against the two companies, alleging that they had violated the
provision of TCPA making it unlawful "to send an unsolicited advertisement to
a telephone facsimile machine."
47 U.S.C. § 227(b)(1)(C). An "unsolicited advertisement" is defined in the
statute as "any material advertising the commercial availability or quality of
any property, goods, or services which is transmitted to any person without
that person's prior express invitation or permission." Id.
§ 227(a)(4).
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n3 American
Blast Fax has not participated in this appeal and may no longer be in
business. See
Missouri ex rel. Nixon v. American
Blast Fax, Inc., 196 F. Supp. 2d 920, 922 n.3, 923 n.4 (E.D. Mo. 2002).
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The fax companies moved to dismiss the complaints, arguing
[*3]
that
§ 227(b)(1)(C) was an unconstitutional restriction on their freedom of
speech. The district court decided that the legislative record was
insufficient to decide the constitutional questions and ordered an evidentiary
hearing, converting the motions to ones for summary judgment. It also granted
the motion of the United States to intervene.
At the hearing, the Government presented evidence that unsolicited fax
advertising shifts costs to the recipients who are forced to contribute ink,
paper, wear on their fax machines, as well as personnel time. There was also
evidence to show that a fax advertisement interferes with the recipients' use
of their machines by preempting the fax line for the time it takes to send a
message. Witnesses testified on behalf of the attorneys general of Florida and
Washington that their offices had been receiving increasing numbers of
complaints about unsolicited fax advertisements. The defendant companies
presented evidence that technological advances had reduced the amount of costs
and interference experienced by recipients and that fax advertising benefits
both advertisers and consumers.
The district court approached the constitutional questions
[*4]
by applying the four part test for restrictions on commercial speech under
Central Hudson Gas & Electric Corp. v. Public Service Commission, 447 U.S.
557, 566, 65 L. Ed. 2d 341, 100 S. Ct. 2343 (1980). The court questioned
whether the government had shown that there was a substantial governmental
interest in restricting unsolicited fax advertising. It noted the absence of
empirical data on costs or evidence that the majority of unsolicited fax
advertisements involved commercial speech. It also observed that complaints
about unsolicited faxes had increased despite the legislation and that several
less restrictive options were available, such as a national no fax database,
and it concluded that the Government had not demonstrated that the
§ 227(b)(1)(C) restriction would materially alleviate the asserted harm or
that it was sufficiently narrow. After concluding that
§ 227(b)(1)(C) violated the
First Amendment, the district court granted the pending motions and
dismissed the action.
The United States and Missouri appeal. They argue that the statute is
constitutional and that the district court erred in its application of the
Central Hudson test. They contend that
[*5]
there was sufficient evidence to demonstrate a substantial government interest
in restricting unsolicited fax advertisements and that TCPA materially
advanced that interest and was not more extensive than necessary. They argue
that technological changes have not eliminated the burdens imposed on
recipients of unwanted fax advertising and that the district court was wrong
to substitute its own judgment for the conclusion of Congress that the
restriction was the minimum necessary to protect the public. They also point
out that no other federal court has found this statute unconstitutional. See
Destination Ventures, Ltd. v. FCC, 46 F.3d 54, 57 (9th Cir. 1995),
aff'g
844 F. Supp. 632 (D. Or. 1994);
Texas v. Am.
Blast Fax, Inc., 121 F. Supp. 2d 1085, 1092 (W.D. Tex. 2000);
Kenro, Inc. v. Fax Daily, Inc., 962 F. Supp. 1162, 1169 (S.D. Ind. 1997).
II.
The parties agree that the fax advertisements in question are commercial
speech, and the Supreme Court has recently indicated that
Central Hudson remains the test for the constitutionality of a restriction
on commercial speech. See
Thompson v. W. States Med. Ctr., 535 U.S. 357, 122 S. Ct. 1497, 1504, 152 L.
Ed. 2d 563 (2002). [*6]
HN1
Under
Central Hudson
we ask as a threshold matter whether the commercial speech concerns unlawful
activity or is misleading. If so, then the speech is not protected by the
First Amendment. If the speech concerns lawful activity and is not
misleading, however, we next ask "whether the asserted governmental interest
is substantial." If it is, then we "determine whether the regulation
directly advances the governmental interest asserted," and, finally,
"whether it is not more extensive than is necessary to serve that interest."
Each of these latter three inquiries must be answered in the affirmative for
the regulation to be found constitutional.
Id. (citations omitted)(quoting
Central Hudson, 447 U.S. at 566). Since it is not argued here that the
faxes were misleading or concerned unlawful activity, only the final three
elements of the Central Hudson test are at issue.
HN2
We
review an order granting summary judgment de novo.
Donovan v. Harrah's Md. Heights Corp., 289 F.3d 527, 528 (8th Cir. 2002).
A.
FC argues that the Government has not shown a substantial governmental
interest. It contends that the asserted interest, preventing [*7]
unwanted fax advertising from shifting advertising costs to unwilling
consumers and interfering with their fax machines, is insufficient to justify
the statutory restriction. It contends that the Government has not produced
empirical data to support its assertion and that technological progress has
reduced any harm to a de minimis level. See
Edenfield v. Fane, 507 U.S. 761, 771, 123 L. Ed. 2d 543, 113 S. Ct. 1792
(1993)(government "must demonstrate that the harms it recites are real").
HN3
We
do not agree with FC that the Government must produce empirical studies to
show the significance of the harm it seeks to remedy, for the Supreme Court
has pointed out that it may demonstrate the substantiality of its interest
with anecdotes, "history, consensus, and 'simple common sense.'"
Florida Bar v. Went For It, Inc., 515 U.S. 618, 628, 132 L. Ed. 2d 541, 115 S.
Ct. 2371 (1995) (quoting
Burson v. Freeman, 504 U.S. 191, 211, 119 L. Ed. 2d 5, 112 S. Ct. 1846 (1992));
cf.
Van Bergen v. Minnesota, 59 F.3d 1541, 1554 (8th Cir. 1995) ("external
evidence" of harm unnecessary in case involving content neutral speech
restriction). In [*8]
this case, the legislative record and the evidence produced in the district
court adequately demonstrate the potential harm of unrestrained fax
advertising.
We first turn to the legislative history, which predates the passage of TCPA.
A hearing on predecessor bills showed that Congress had become aware of a
"junk fax" problem from media reports and legislative initiatives in many
states. Telemarketing Practices: Hearing on H.R. 628, H.R. 2131, and H.R. 2184
Before the Subcomm. on Telecomm. and Fin. of the House Comm. on Energy and
Commerce, 101st Cong. 2-3 (1989) (statements of Chair Markey and Rep. Rinaldo,
Subcomm. on Telecomm. and Fin. of the House Comm. on Energy and Commerce). A
Maryland official testified that even though his state had passed a measure to
ban unsolicited commercial fax advertisements, federal legislation was
required for a full solution to a problem likely "to grow in scale." Id. at
82-83 (statement of John M. Glynn, Maryland Office of People's Counsel). The
subcommittee was also presented with research which indicated the pervasive
nature of this type of advertising. It was reported that at least one fax
advertiser could "routinely send[] 60,000 fax [*9]
advertisements per week" and that "business owners are virtually unanimous in
their view that they do not want their fax lines tied up by advertisers trying
to send messages." Id. at 54-56 (footnote omitted) (statement of Robert L.
Ellis, Indiana University School of Law).
In hearings held in 1991, the cofounder of the Center for the Study of
Commercialism described the "numerous nuisance faxes" he had received and
complained that they "not only use the recipient's paper, but also prevent
faxes from being sent out and prevent legitimate faxes from coming in."
Hearing on S. 1462, S. 1410, and S. 857 Before the Subcomm. on Communications
of the Senate Comm. on Commerce, Sci., and Transp., 102d Cong. 41 (1991)
(statement of Michael Jacobson). A House subcommittee heard from the chair of
the Florida Public Service Commission that "the junk fax advertiser is a
nuisance who wants to print [its] add [sic] on your paper . . . [and] seizes
your fax machine so that it is not available for calls you want or need."
Telemarketing/Privacy Issues: Hearing on H.R. 1304 and H.R. 1305 Before the
Subcomm. on Telecomm. and Fin. of the House Comm. on Energy and Commerce, 102d
Cong. 31 [*10]
(1991) (statement of Thomas Beard). TCPA was subsequently enacted in that same
year.
The hearing held in the district court in 2001 also produced evidence that the
harms of unsolicited fax advertising are real and have not been eliminated by
technological changes. There was evidence that unsolicited fax advertisements
can shift to the recipient more than one hundred dollars per year in direct
costs, that it takes thirty seconds for a one page fax to be received, that
most machines can still only receive one fax at a time, that currently eighty
percent of all faxes are printed on paper, and that unsolicited fax
advertising interferes with company switchboard operations and burdens the
computer networks of those recipients who route incoming faxes into their
electronic mail systems. The record evidence from that hearing indicates that
the costs and amount of interference resulting from unrestrained fax
advertising continue to be significant. See
Destination Ventures, 46 F.3d at 57 ("Unsolicited fax advertisements shift
significant advertising costs to consumers.").
We conclude that the Government has demonstrated a substantial interest in
restricting unsolicited fax [*11]
advertisements in order to prevent the cost shifting and interference such
unwanted advertising places on the recipient.
B.
FC contends that there are several reasons why the TCPA restriction on
commercial faxes cannot survive the third part of the
Central Hudson test, which requires a showing that "'the regulation
directly advances the governmental interest asserted.'"
W. States, 122 S. Ct. at 1504 (quoting
Central Hudson, 447 U.S. at 566); see also
Rubin v. Coors Brewing Co., 514 U.S. 476, 487, 131 L. Ed. 2d 532, 115 S. Ct.
1585 (1995) ("HN4
Government
carries the burden of showing that the challenged regulation advances the
Government's interest in a direct and material way." (internal quotation marks
omitted)). This step helps ensure that there is "a reasonable fit between the
legislature's ends and the means chosen to accomplish [them]."
Lorillard Tobacco Co. v. Reilly, 533 U.S. 525, 556, 150 L. Ed. 2d 532, 121 S.
Ct. 2404 (2001) (internal quotations marks omitted).
1.
FC argues that if a restriction treats commercial and noncommercial speech
differently, there must be a basis for the difference that is [*12]
relevant to the asserted governmental interest. FC contends that this case is
just like City of Cincinnati v. Discovery Network, Inc. where an ordinance was
found unconstitutional because there was not a good fit between the asserted
aesthetic interest and the ban on only commercial newsracks on the street. See
507 U.S. 410, 425, 428, 123 L. Ed. 2d 99, 113 S. Ct. 1505 (1993). FC
argues that a noncommercial fax shifts costs and interferes with a recipient's
fax machine just as much as a commercial fax.
This case is different from
Discovery Network, however, because the distinction between commercial and
noncommercial faxes is relevant to the asserted governmental interest. In
Discovery Network the only justification advanced by the city for singling out
commercial newsracks was "the 'low value' of commercial speech," a position
which the court refused to adopt.
507 U.S. at 428. When Congress enacted TCPA, however, it had found that
"non-commercial calls . . . are less intrusive to consumers because they are
more expected." H.R. Rep. No. 102-317, at 16 (1991). There is no reason to
doubt that Congress also believed for the same reason that noncommercial faxes
did not present [*13]
the same problem as commercial faxes and therefore distinguished between them.
The Supreme Court has indicated that Congress may rely on various forms of
evidence to distinguish between different types of speech. See
Florida Bar, 515 U.S. at 628. For example, restrictions on speech may be
justified "by reference to studies and anecdotes pertaining to different
locales altogether . . . [and] history, consensus, and 'simple common sense.'"
Id. (quoting
Freeman, 504 U.S. at 211).
HN5
The
legislative history here shows that TCPA's distinction between commercial and
noncommercial fax advertising is relevant to the goal of reducing the costs
and interference associated with unwanted faxes. We agree with the
Ninth Circuit that this distinction is justified. n4
Destination Ventures, 46 F.3d at 56.
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n4 Discovery Network also differs from this case in that commercial newsracks
represented only a small percentage of the newsracks on Cincinnati streets,
507 U.S. at 418, while commercial faxes make up a large proportion of all
unsolicited faxes, see infra p.13. Moreover, the government may regulate one
aspect of a problem without regulating all others, see
United States v. Edge Broad. Co., 509 U.S. 418, 434, 125 L. Ed. 2d 345, 113 S.
Ct. 2696 (1993) ("Government [is not required to] make progress on every
front before it can make progress on any front.").
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2.
FC also argues that the restriction on fax advertising cannot directly and
materially advance the asserted governmental interest because gaps in the
statute's coverage limit its effectiveness. Unsolicited live telemarketing
calls, some types of unsolicited commercial faxes, and unsolicited
noncommercial faxes are not restricted, and FC contends that TCPA thus
resembles the statutes struck down in
Coors, 514 U.S. at 488, and
Greater New Orleans Broadcasting Association v. United States, 527 U.S. 173,
190, 144 L. Ed. 2d 161, 119 S. Ct. 1923 (1999).
TCPA is quite different from the statutes at issue in Coors and Greater New
Orleans. In Coors, the government claimed that legislation prohibiting the
display of alcohol content on beer labels advanced the legislative interest in
"curbing 'strength wars' by beer brewers who might seek to compete for
customers on the basis of alcohol content."
514 U.S. at 483. The Supreme Court found "overall irrationality" in the
statute since it did not apply to advertisements, and alcohol content in a
product could be widely disclosed by other means; such advertising would
appear to be "a more [*15]
influential weapon in any strength war than labels."
Id. at 488. Moreover, the statutory restriction did not apply to wine,
spirits, or the "term 'malt liquor.'"
Id. at 488-89. The asserted governmental interest in suppressing
competition based on high alcohol content was therefore unlikely to be
advanced. Likewise, in Greater New Orleans the Court was skeptical about the
government's position that legislation banning advertisements for private
casino gambling served the governmental interests of "reducing the social
costs associated with 'gambling'" and helping states restrict it.
527 U.S. at 185. The Court found the government's position inconsistent
with its "simultaneous" support for tribal casino gambling which could involve
the same social costs.
Id. at 189-91. Inconsistencies and discrepancies in these two pieces of
legislation therefore showed that the statutes were not likely to advance
their asserted purposes. See
id. at 190;
Coors, 514 U.S. at 489.
TCPA by contrast contains no inconsistency that renders it incapable of
materially advancing the Government's asserted interest. [*16]
While there is differential treatment in TCPA of unsolicited fax
advertisements and live telemarketing calls, the difference is consistent with
TCPA's goal to protect members of the public from bearing the costs of
unwanted advertising. n5 Thus, TCPA treats live telemarketing solicitations
differently if they impose costs on the recipient. While they are generally
permitted unless an individual has registered an objection to being contacted,
see
47 U.S.C. § 227(c),
47 C.F.R. § 64.1200(e)(2)(iii) (2002), they are prohibited when they
result in out of pocket costs for the recipient, see
47 U.S.C. § 227(b)(1)(A)(iii) (prohibiting calls made without consent "to
any telephone number assigned to a paging service, cellular telephone service,
specialized mobile radio service, or other radio common carrier service, or
any service for which the called party is charged for the call"). Because of
the cost shifting of fax advertising, it was consistent for Congress to treat
unsolicited fax advertisements differently than live telemarketing calls. The
distinction in no way undercuts the TCPA goal of protecting the public [*17]
from unwanted advertising costs.
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n5 The distinction made in TCPA between live telemarketing calls and faxes is
also consistent with other concerns behind the statutory scheme. Because
Congress found telemarketing solicitations made by a person to be less of a
nuisance or of an invasion of privacy than artificial or prerecorded calls,
see S. Rep. No. 102-178, at 4 & n.4, 5 & n.5 (1991), reprinted in 1991
U.S.C.C.A.N. 1968, 1972-73, live solicitations are permitted unless an
individual has registered an objection in advance, see
47 U.S.C. § 227(c),
47 C.F.R. § 64.1200(e)(2)(iii) (2002), while "artificial" calls are
prohibited without the recipient's express consent,
47 U.S.C. § 227(b)(1)(B). Artificial or prerecorded messages, like a faxed
advertisement, were believed to have heightened intrusiveness because they are
unable to "interact with the customer except in preprogrammed ways." S. Rep.
No. 102-178, at 4-5, reprinted in 1991 U.S.C.C.A.N. at 1972.
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[*18]
See
FC also argues that the legislation was made unconstitutionally inconsistent
by a statutory interpretation of the Federal Communications Commission (FCC).
HN6
The
FCC has interpreted TCPA not to prohibit the sending of unsolicited commercial
faxes to a recipient with whom a sender has an established business
relationship. In the
Matter of Rules and Regulations Implementing the Telephone Consumer Protection
Act of 1991, 7 F.C.C.R. 8752, 8779 n.87 (Oct. 16, 1992). Even if one
assumes that this FCC interpretation is entitled to deference and is part of
the governing law, it does not undermine the governmental interest in reducing
the cost shifting and interference caused by unwanted commercial faxes. It
would not have been unreasonable for Congress to conclude that a preexisting
business relationship is an indication that a fax advertisement would be
welcome. Congress in fact made this distinction explicit with respect to
telephone solicitations. See
47 U.S.C. § 227(a)(3). We cannot conclude that this exemption renders the
statute so "pierced by exemptions and inconsistencies,"
Greater New Orleans, 527 U.S. at 190, or "overall [*19]
irrational[],"
Coors, 514 U.S. at 488, that it cannot materially and directly advance the
governmental interest. n6
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n6 FC argues in addition that TCPA does not prohibit unsolicited commercial
faxes regarding job openings and "image" advertisements not explicitly
offering a product for sale. These are not exceptions contained in the
statute, however. One was put forward by a federal district judge, see
Lutz Appellate Servs., Inc. v. Curry, 859 F. Supp. 180, 181-82 (E.D. Pa. 1994)
(faxed advertising of job openings do not fall within the scope of TCPA), and
the other has been asserted by FC itself. Not only are these "exceptions" not
in the statute, but they would not undermine the Government's asserted
purpose, unlike the statutory exceptions in
Coors, 514 U.S. at 489, and
Greater New Orleans, 527 U.S. at 190. In contrast, TCPA directly and
materially advances Congress's goal by squarely addressing the category of
commercial fax advertising that appears to make up a substantial portion of
all such faxes, i.e., those "advertising the commercial availability or
quality of any property, goods, or services,"
47 U.S.C. § 227(a)(4).
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Finally, FC urges that TCPA's prohibition of only unsolicited commercial faxes
prevents the statute from advancing the asserted governmental interest. The
legislative record indicates that commercial calls constitute the bulk of all
telemarketing calls, see H.R. Rep. No. 102-317, at 16, and in the absence of
contrary evidence we are persuaded that commercial faxes likely constitute a
similar proportion of all unsolicited faxes, cf.
Florida Bar, 515 U.S. at 628 (restrictions on speech may be justified "by
reference to studies and anecdotes pertaining to different locales altogether
. . . [and] history, consensus, and 'simple common sense'" (quoting
Freeman, 504 U.S. at 211)).
HN7
By
placing restrictions on those responsible for a large portion of the problem,
TCPA directly and materially advances the congressional goal of limiting the
harm arising from unsolicited fax advertisements. Congress is not required to
"make progress on every front before it can make progress on any front."
United States v. Edge Broad. Co., 509 U.S. 418, 432-34, 125 L. Ed. 2d 345, 113
S. Ct. 2696 (1993) (statute that effectively eliminated only small ratio [*21]
of lottery advertisements still directly advanced a governmental interest of
"discouraging public participation in lotteries"); see also
Destination Ventures, 46 F.3d at 56 ("The
First Amendment does not require Congress to forgo addressing the problem
at all unless it completely eliminates cost shifting.").
We conclude that the TCPA's prohibition on unsolicited commercial fax
advertisements directly and materially advances the asserted governmental
interest and satisfies the third element of the Central Hudson test.
C.
The final question in the
Central Hudson test is whether the restriction on speech is "'not more
extensive than necessary to serve the interests that support it.'"
Lorillard, 533 U.S. at 556 (quoting
Greater New Orleans, 527 U.S. at 188). FC argues that there are several
alternative solutions to the unsolicited fax problem which would be less
restrictive and that this shows
§ 227(b)(1)(C) is too broadly drawn. FC contends in particular that
Congress could have adopted an opt out mechanism that would require fax
recipients to declare their desire not to receive unsolicited commercial
faxes, rather than requiring [*22]
fax advertisers to secure the consent of potential recipients. n7
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n7 FC suggests, for example, that Congress could have implemented a scheme
under which an advertiser is prohibited from sending a second fax to a person
who has previously indicated that he does not wish to receive such faxes,
similar to the manner in which live telemarketing is regulated under TCPA, see
47 U.S.C. § 227(c)(5);
47 C.F.R. § 64.1200(e)(2). Another suggested alternative is a nationwide
no fax list. FC also points out that several states have regulated unsolicited
fax advertising by imposing strict page and time-of-day limits. See, e.g.,
N.Y. Gen. Bus. Law § 396aa(1);
N.D. Cent. Code § 51-07-23;
Wis. Stat § 134.72.
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We disagree that TCPA is unconstitutionally broad.
HN8
The
Supreme Court has made it clear that "the 'least restrictive means' test has
no role in the commercial speech context."
Florida Bar, 515 U.S. at 632. Instead, what is required
"is [*23]
a 'fit' between the legislature's ends and the means chosen to accomplish
those ends," a ["]fit that is not necessarily perfect, but reasonable; that
represents not necessarily the single best disposition but one whose scope
is 'in proportion to the interest served,' that employs not necessarily the
least restrictive means but . . . a means narrowly tailored to achieve the
desired objective."
Id. (second alteration in original) (quoting
Bd. of Trs. of State Univ. of N.Y. v. Fox, 492 U.S. 469, 480, 106 L. Ed. 2d
388, 109 S. Ct. 3028 (1989)).
Section 227(b)(1)(C) satisfies this standard. Advertisers remain free to
publicize their products through any legal means; they simply cannot do so
through an unsolicited fax. TCPA does not act as a total ban on fax
advertising. Advertisers may obtain consent for their faxes through such means
as telephone solicitation, direct mailing, and interaction with customers in
their shops. Cf.
Van Bergen, 59 F.3d at 1556 ("Live telephone calls . . . and bulk mailings
are all inexpensive and effective [means of communication]."). While it is
true that the effect of TCPA will be that some consumers will [*24]
not receive unsolicited advertisements they might have appreciated, under the
approach advocated by FC there would always be individuals suffering costs and
interference from unwanted advertisements. It was not unreasonable for
Congress to choose a system that protects those who would otherwise be forced
to bear unwanted burdens over those who wish to send and receive unsolicited
fax advertising. Given the cost shifting and interference imposed by
unsolicited commercial faxes and the many alternatives left available to
advertisers, TCPA's approach is "'in proportion to the interest served . . .
[and is] narrowly tailored to achieve the desired objective.'"
Florida Bar, 515 U.S. at 632 (internal quotation marks omitted) (quoting
Fox, 492 U.S. at 480).
The cases in which the Supreme Court has recently struck down restrictions on
commercial speech for being too broadly drawn, see
W. States, 122 S. Ct. at 1506;
Lorillard, 533 U.S. at 561;
44 Liquormart, Inc. v. Rhode Island, 517 U.S. 484, 507, 134 L. Ed. 2d 711, 116
S. Ct. 1495(1996)(opinion of Stevens, J., joined by
Kennedy, Souter, and Ginsburg, [*25]
JJ.); Coors, 514 U.S. at 490-91, had different characteristics than we are
faced with here. First, those cases dealt with concerns not at issue here. The
legislation there banned dissemination of truthful commercial information,
either to "prevent members of the public from making bad decisions with the
information,"
W. States, 122 S. Ct. at 1507, or to advance a governmental interest that
could be furthered "without regulating speech,"
44 Liquormart, 517 U.S. at 503 (opinion of Stevens, J., joined by Kennedy
and Ginsburg, JJ.). See
W. States, 122 S. Ct. at 1500-01, 1505 (striking down federal restriction
on advertisement and promotion of particular drugs where goal was to prevent
large scale manufacturing);
Lorillard, 533 U.S. at 533, 566-67, 569 (finding unconstitutional
Massachusetts regulation of advertising to reduce underage tobacco use, but
upholding restriction on manner of sale);
44 Liquormart, 517 U.S. at 489-90 (striking effort to promote temperance
by prohibiting advertisements of retail prices for alcoholic beverages);
Coors, 514 U.S. at 483-84. In this case, the TCPA ban on unsolicited [*26]
commercial fax advertisements is neither intended to protect the public from
the content of the speech nor to implement policy unrelated to the delivery of
the message itself. In prohibiting these fax advertisements, Congress was not
concerned with the effect of the content of the advertisements, but rather
with the effect of the act of communicating. This case is therefore more
similar to
Florida Bar where the Court upheld a ban on "targeted direct-mail
solicitations [of] victims and their relatives [by attorneys] for 30 days
following an accident or disaster."
515 U.S. at 620. The Florida Bar Court emphasized the fact that "the harm
posited . . . is as much a function of simple receipt of targeted
solicitations . . . as it is a function of the letters' contents."
Id. at 631. The harm associated with unsolicited fax advertisements is
similarly not related to the content of the messages.
Second, the regulations at issue in three of the cases cited by FC were so
broad as to "constitute nearly a complete ban on the communication of truthful
information [about a commercial product]."
Lorillard, 533 U.S. at 562; see
W. States, 122 S. Ct. at 1502 [*27]
(flat ban on all advertising of compounded drugs absent FDA approval of
drug);
44 Liquormart, 517 U.S. at 530-31(opinion of O'Connor, J., joined by
Rehnquist, C.J., Souter, J., and Breyer, J.)("No channels exist at all to
permit [liquor merchants] to publicize the price of their products.").
Section 227(b)(1)(C) does no such thing, and advertisers remain free to
publicize their products through many legal means other than an unsolicited
fax. Moreover, TCPA has not eliminated the fax machine as an available channel
of communication. If an advertiser wishes to promote its business by fax,
there are many ways for it to secure the consent of willing potential
customers, just as in Florida Bar where there were "many other ways for
injured Floridians to learn about the availability of legal representation."
515 U.S. at 633; see
44 Liquormart, 517 U.S. at 502 (opinion of Stevens, J., joined by Kennedy
and Ginsburg, JJ.) ("We upheld [the Florida Bar regulation] largely because it
left so many channels of communication open to Florida lawyers.").
We conclude that the TCPA restriction on unsolicited commercial fax
advertisements achieves a reasonable fit between [*28]
the means it adopts and the ends it seeks to serve. It thus satisfies the
fourth element of the
Central Hudson test. See
Florida Bar, 515 U.S. at 632.
III.
We conclude that
47 U.S.C. § 227(b)(1)(C) satisfies the constitutional test for regulation
of commercial speech and thus withstands
First Amendment scrutiny. There is a substantial governmental interest in
protecting the public from the cost shifting and interference caused by
unwanted fax advertisements, and the means chosen by Congress to address these
harms directly and materially advances the governmental interest. The statute
is also narrowly tailored to create a reasonable fit with its objective.
Accordingly, we reverse the judgment dismissing the claims asserted under
§ 227(b)(1)(C) and remand the case to the district court for further
proceedings consistent with this opinion.