The U.S. Circuit Court of Appeals for the Eighth Circuit has unanimously revived the Missouri Broadcasters Association’s lawsuit that challenges a Missouri statute and two Missouri regulations that MBA believes illegally limit alcohol advertising.
The broadcasters say the laws prevent consumers from receiving truthful information in advertising.
Specifically, although retailers can offer price discounts and promotions on alcoholic beverages, these laws keep citizens from learning about those discounts in advance, through radio, television and newspaper ads.
“Our radio and television stations, and newspapers are key sources of information for Missourians”, association officials said in a news release. “Just as with news, listeners and viewers learn about the availability of goods and services through advertising, and a restriction on advertising truthful information only keeps relevant and useful information from consumers.”
“That’s why the MBA and several other entities challenged these laws under the First Amendment, and its guarantee of commercial free speech.”
The laws at issue prohibit advertisers from being able to advertise alcohol discounts, even though those discounts can be advertised on premise. The state contended that the restrictions are intended to discourage binge drinking, but the association says binge drinking is more likely to be encouraged by promotions inside a bar than from media advertisements heard or seen in one’s living room.
The MBA argues that Supreme Court precedents protecting truthful commercial speech permit restrictions on commercial speech only if they are closely tailored to the state’s needs, and they believe the many inconsistencies in Missouri alcohol advertising regulations show that these laws are not so limited.
Additionally, because advertising of special pricing is allowed in all of Missouri’s bordering states, the group says the laws create an unfair competitive disadvantage to Missouri businesses.
The association also says the laws are ill-suited for the era of social media, which college students in a bar can use to instantly publicize alcohol discounts, and to today’s world of ubiquitous and growing microbreweries and wineries, which have special exemptions from some of the restrictions.
If these laws are found unconstitutional, or removed by legislative and regulatory action, price-conscious consumers will have better information and be able to make better alcoholic beverage purchasing choices.
The immediate effect of the Eighth Circuit decision is to send the case back to the U.S. District Court for the Western District of Missouri. MBA says the plaintiffs intend to vigorously pursue their claims in that court, particularly in light of the Eighth Circuit’s legal analysis, which is highly favorable to the strength and validity of these claims.