Opposition Brief — Vugo, Inc., Petitioner v. City of New York, New York
Supreme Court briefMar 20, 2020
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No. 19-792
IN THE
Supreme Court of the United States
VUGO, INC.
Petitioner,
v.
CITY OF NEW YORK,
_________
Respondent.
ON PETITION FOR A WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT
BRIEF IN OPPOSITION
JAMES E. JOHNSON
Corporation Counsel of the
City of New York
100 Church Street
New York, NY 10007
(212) 356-2500
rdearing@law.nyc.gov
Counsel for Respondents
RICHARD DEARING*
CLAUDE S. PLATTON
JAMISON DAVIES
*Counsel of Record
COUNTERSTATEMENT OF
QUESTION PRESENTED
A regulation of the City of New York restricts
advertising in for-hire vehicles booked in advance,
such as those operated by Uber and Lyft. Petitioner
seeks to place electronic advertisements on tablet
computers located right in front of where
passengers sit when they ride in for-hire vehicles.
Petitioner challenged the City’s restriction under
the First Amendment, claiming that it failed the
four-part test for commercial-speech regulations
first articulated in Central Hudson Gas & Electric
Corp. v. Public Services Commission of New York,
447 U.S. 557 (1980). Petitioner did not argue that
strict scrutiny applied. The U.S Court of Appeals
for the Second Circuit held that the restriction
satisfied the Central Hudson test. The question
presented is:
Should the Court overrule Central Hudson and
hold that regulations of commercial speech are
subject to strict scrutiny?
TABLE OF CONTENTS
Page
COUNTERSTATEMENT OF QUESTION
PRESENTED ............................................................ i
TABLE OF AUTHORITIES ................................... iii
INTRODUCTION .................................................... 1
STATEMENT ........................................................... 2
A. New York City’s restrictions on
advertising in for-hire vehicles ................ 2
B. The lower courts’ application of
Central Hudson to Vugo’s challenge
to the advertising restriction in forhire vehicles ............................................. 4
REASONS TO DENY THE PETITION .................. 7
A. Petitioner conceded the applicability
of Central Hudson below and did not
argue for strict scrutiny. .......................... 7
B. There is no split of authority on the
question presented in any event. .......... 10
C. Petitioner’s additional objections to
Central Hudson do not merit this
Court’s review. ....................................... 16
CONCLUSION ....................................................... 21
ii
TABLE OF AUTHORITIES
Page(s)
Cases
1-800-411-Pain Referral Serv., LLC v.
Otto,
744 F.3d 1045 (8th Cir. 2014)........................... 16
Adarand Constructors, Inc. v. Mineta,
534 U.S. 103 (2001)............................................. 8
Am. Acad. of Implant Dentistry v.
Parker,
860 F.3d 300 (5th Cir. 2017) ............................ 13
Bd. of Trs. v. Fox,
492 U.S. 469 (1989)........................................... 19
Bevan & Assocs., LPA v. Yost,
929 F.3d 366 (6th Cir. 2019) .......................13, 14
Bolger v. Youngs Drug Products Corp.,
463 U.S. 60 (1983)........................................19, 20
Brown v. Entm’t Merchs. Ass’n,
564 U.S. 786 (2011)......................................18, 19
In re Brunetti,
877 F.3d 1330 (Fed. Cir. 2017) ....................13, 16
iii
Central Hudson Gas & Elec. Corp. v.
Public Service Comm’n of N.Y.,
447 U.S. 557 (1980).................................... passim
City & Cnty. of San Francisco v.
Sheehan,
135 S. Ct. 1765 (2015)......................................... 7
Contest Promotions, LLC v. City &
Cnty. of San Francisco,
874 F.3d 597 (9th Cir. 2017) ............................ 12
Dex Media W., Inc. v. City of Seattle,
696 F.3d 952 (9th Cir. 2012) ............................ 20
ECM Biofilms v. FTC,
851 F.3d 599 (6th Cir. 2017) ............................ 14
Erznoznik v. Jacksonville,
422 U.S. 205 (1975)........................................... 18
Greater Phila. Chamber of Commerce
v. City of Philadelphia,
949 F.3d 116 (3d Cir. 2020) .........................13, 16
Kiser v. Kamdar,
831 F.3d 784 (6th Cir. 2016) ............................ 14
Lehman v. Shaker Heights,
418 U.S. 298 (1974)........................................... 17
iv
Leibundguth Storage & Van Serv., Inc.
v. Vill. of Downers Grove,
939 F.3d 859 (7th Cir. 2019) cert
denied — S. Ct. —, 2020 U.S.
LEXIS 1492 (Mar. 2, 2020) ..........................12, 13
Members of City Council of City of Los
Angeles v. Taxpayers for Vincent,
466 U.S. 789 (1984)........................................... 17
Metromedia, Inc. v. City of San Diego,
453 U.S. 490 (1981)........................................... 17
Mo. Broadcasters Ass’n v. Lacy,
846 F.3d 295 (8th Cir. 2017) ............................ 16
Mo. Broadcasters Ass’n v. Schmitt,
946 F.3d 453 (8th Cir. 2020) ............................ 13
Nicopure Labs, LLC v. FDA,
944 F.3d 267 (D.C. Cir. 2019) ........................... 13
Ocheesee Creamery LLC v. Putnam,
851 F.3d 1228 (11th Cir. 2017)....................13, 16
Reed v. Town of Gilbert,
135 S. Ct. 2218 (2015)................................ passim
Retail Digital Network, LLC v. Prieto,
861 F.3d 839 (9th Cir. 2017) .......................13, 16
Riley v. Nat’l Fed’n of Blind of N.C.,
Inc.,
487 U.S. 781 (1988)........................................... 20
v
Sorrell v. IMS Health Inc.,
564 U.S. 552 (2011)................................14, 15, 16
Thomas v. Bright,
937 F.3d 721 (6th Cir. 2019) .......................13, 14
United States v. Williams,
504 U.S. 36 (1992)............................................... 7
Youakim v. Miller,
425 U.S. 231 (1976)............................................. 7
Other Authorities
Advertising on the Interior of For-Hire
Vehicles, N.Y.C. Council Int. No.
1866-2020 .......................................................... 10
N.Y.C. Admin. Code § 19-501 .................................. 2
N.Y.C. Admin. Code § 19-502(g) .............................. 2
N.Y.C. Admin. Code § 19-504(1) .............................. 2
N.Y.C. Charter § 2300.............................................. 3
N.Y.C. Taxi & Limousine Commission,
Improving Efficiency and
Managing Growth in New York’s
For-Hire Vehicle Sector (June 2019) .................. 3
vi
INTRODUCTION
Petitioner Vugo Inc. asks the Court to grant
certiorari to overrule its decision in Central Hudson
Gas & Electric Corp. v. Public Service Commission
of New York, 447 U.S. 557 (1980), and hold that
any governmental regulation of commercial speech
is subject to strict scrutiny.
Certiorari should be denied. Most importantly,
this case does not properly raise the question
presented. Throughout the litigation Vugo conceded
that Central Hudson applied to its challenge to the
regulation of advertising in for-hire vehicles and
abandoned any argument for strict scrutiny. The
petition fails even to note Vugo’s consistent
acceptance of the Central Hudson framework, and
offers no justification for this Court to grant
certiorari to review a question that was neither
pressed nor passed on below. Moreover, before it
could reach the question presented, the Court
would have to consider whether the regulation is
actually directed at commercial speech or instead
limits both commercial and noncommercial
advertising. That issue, too, was neither fully
litigated nor resolved in the courts below.
The question presented also would not warrant
review if it were properly raised here, as
demonstrated by this Court’s recent denial of a
petition for certiorari presenting an identical
question. Vugo principally argues that Reed v.
Town of Gilbert, 135 S. Ct. 2218 (2015), requires
the application of strict scrutiny of commercialspeech regulations. But Reed did not mention
Central Hudson or address commercial speech, and
this Court has continued to apply its longstanding
commercial-speech doctrine since Reed. The courts
of appeals also consistently continue to apply
Central Hudson. The petition’s claim of a circuit
split rests on one circuit’s characterization of a
single
decision
from
another
circuit—a
characterization that is belied by the underlying
decision itself. Accordingly, there would be no
reason to grant review of the question presented
now, even if this case actually raised it.
STATEMENT
A. New
York
City’s
restrictions
advertising in for-hire vehicles
on
New York City extensively regulates the
transportation of passengers for hire, which is “a
vital and integral part of the transportation system
of the city.” N.Y.C. Admin. Code § 19-501. The Taxi
& Limousine Commission (TLC) is charged with
regulating transportation of passengers in the City,
both by taxicabs and for-hire vehicles (FHVs).
“Taxicabs” are yellow and green cabs, which are
the only vehicles allowed to pick up passengers by
street hail in the City. See N.Y.C. Admin. Code
§ 19-504(1). FHVs are vehicles “other than a
taxicab” that “carr[y] passengers for hire in the
city.” N.Y.C. Admin. Code § 19-502(g). FHVs are
2
either booked in advance through limousine
companies and similar businesses or procured
through app-based systems such as Uber and Lyft.
Although taxicabs once comprised the bulk of the
passenger-vehicle market in the City, today FHVs
make up a large and growing share of that market,
accounting for approximately three quarters of
daily trips. N.Y.C. Taxi & Limousine Commission,
Improving Efficiency and Managing Growth in New
York’s For-Hire Vehicle Sector at 6 (June 2019),
available at https://perma.cc/2J3P-LVRB. 1
The City’s Charter mandates that TLC promote
and protect the “comfort and convenience” of
passengers. N.Y.C. Charter § 2300. Over two
decades ago, TLC adopted regulations prohibiting
any advertising inside taxicabs except as
specifically authorized by the Commission (Pet. 7a).
TLC adopted similar rules for FHVs a few years
later, providing that vehicles “must not display any
advertising on the exterior or the interior of a ForHire Vehicle unless the advertising has been
authorized by the Commission” (Pet. 7a–8a, 66a).
TLC has authorized advertising in taxis only
once since the regulation came into force. In 2005,
concurrent with the adoption of requirements that
taxi owners install a new technology system to
1
The share of FHV trips has grown rapidly. The share
reflected in the record during this litigation, as of 2016, was
around one third (Pet. 6a).
3
show passengers their fare as it accumulates, allow
passengers to track their route, and accept credit
card payments, taxi owners were permitted to
install Taxi TV, an interior TV system that carries
advertisements (Pet. 8a–9a). The revenue from
advertising on Taxi TV was expected to offset some
of the cost to taxi owners of installing the new
required systems (Pet. 9a).
In a survey, about forty percent of respondents
found Taxi TV to be an “annoyance” and, in another
survey, about a third of respondents said that Taxi
TV and its advertisements was the thing they most
disliked about taxis (Pet. 10a, 21–22a). TLC has
thus taken steps to reduce and potentially
eliminate advertising in taxis (see Pet. 10a).
Because passenger rides in FHVs are prearranged, they do not need the same in-vehicle
technology for fare calculation, route tracking, and
credit-card payments (Pet. 10a–11a). As a result,
they were not required to install it, and they were
not permitted to advertise to offset the cost of
installation (Pet. 11a).
B. The lower courts’ application of Central
Hudson to Vugo’s challenge to the
advertising restriction in for-hire vehicles
1. Vugo, Inc., developed an advertising software
platform to display ads on a tablet placed on the
front seatback in FHVs—immediately in front of
where passengers typically sit (Pet. 11a). Its
4
devices do not allow passengers to turn them off or
mute them (id.). Vugo seeks to deploy its
technology in FHVs in New York City. Stymied by
the advertising ban, Vugo filed suit against the
City, alleging that the advertising restriction
violates the First Amendment and seeking to enjoin
its enforcement.
2. The United States District Court for the
Southern District of New York (Abrams, J.) granted
summary judgment for Vugo (Pet. 62a). Applying
the test first articulated by this Court in Central
Hudson Gas & Electric Corp. v. Public Services
Commission of New York, 447 U.S. 557 (1980), the
court concluded that, while the City had articulated
a substantial interest in promoting passenger
comfort, there was an insufficient fit between the
ban on in-ride advertising and the City’s asserted
interest because the advertisements on Taxi TV,
which the City permitted, are no less intrusive than
advertisements in FHVs would be (Pet. 57a–58a).
Moreover, the district court concluded that the City
could have furthered its stated interest by less
restrictive means (Pet. 58a–61a).
3. The Second Circuit unanimously reversed
(Pet. 2a). The court initially noted that the “the
advertising ban, on its face, also covers noncommercial advertising—and there is record
evidence that the ban has, in fact, been applied to
non-commercial advertising” (Pet. 13a n.5).
Nonetheless, the court accepted Vugo’s framing of
the case as a challenge to a regulation of
5
commercial speech. And, because Vugo had
“expressly concede[d]” that Central Hudson’s
intermediate-scrutiny
test
applied
to
the
challenged regulation (Pet. 14a–17a), the court
applied the Central Hudson test.
Under that analysis, the court first held that the
City’s interest in protecting the riding public “from
the offensive sight and sound of advertisements—
not their content—while they are traveling through
the city by car” was “clearly substantial” (Pet. 19a).
In particular, the City was justified in working to
protect “unwilling viewers against intrusive
advertising” in vehicles that now account for a
substantial number of daily passenger trips (Pet.
20a (quotation marks omitted)). The court next
held that the “harms [the City] recites are real” and
that the regulation will “alleviate them to a
material degree,” rejecting Vugo’s argument that
the regulation was unconstitutionally underinclusive (Pet. 21a–23a (quotation marks omitted)).
It also held that the limited exception for Taxi TV
did not undermine the City’s asserted interest in
protecting passengers from unwanted advertising
(Pet. 24a–33a). Finally, the Court held that the
regulation did not burden substantially more
speech than necessary to further the government’s
legitimate interests (Pet. 33a–36a).
4. Vugo’s petition for panel rehearing or
rehearing en banc was denied.
6
REASONS TO DENY THE PETITION
A. Petitioner conceded the applicability of
Central Hudson below and did not argue
for strict scrutiny.
This case does not properly raise the question
that petitioner asks the Court to review. Petitioner
consistently accepted that Central Hudson supplied
the appropriate framework for analyzing its
challenge and failed to press the argument that
Reed implicitly overruled the Central Hudson
standard and required the application of strict
scrutiny. In light of petitioner’s framing of the case,
moreover, the lower courts had no cause to decide
whether the challenged regulation even is a
restriction of commercial speech, rather than a
content-neutral limitation on the location of all
advertising within FHVs.
1. The Court “does not ordinarily decide
questions that were not passed on below.” City &
Cnty. of San Francisco v. Sheehan, 135 S. Ct. 1765,
1773 (2015); see also United States v. Williams, 504
U.S. 36, 41 (1992) (explaining that the “traditional
rule” precludes granting certiorari “when the
question presented was not pressed or passed upon
below” (quotation marks omitted)). The Court
considers a question not pressed or passed on below
only in “exceptional cases.” Youakim v. Miller, 425
U.S. 231, 234 (1976) (per curiam) (quotation marks
omitted). This is not such a case.
7
Throughout the litigation, Vugo accepted the
validity of the Central Hudson framework. As the
Second Circuit explained, “Vugo expressly
concede[d] that Central Hudson’s intermediate
scrutiny test applies” (Pet. 14a). The district court
likewise explained that “Vugo … does not object to
the Court applying Central Hudson” (Pet. 49a–
50a). The City took Vugo’s concession and argued
(correctly) that the regulation satisfied the Central
Hudson standard. And both the district court and
the Second Circuit evaluated the challenged
regulation under Central Hudson’s framework (Pet.
18a–36a, 50a–62a).
In its petition, Vugo takes an entirely different
tack, now arguing that strict scrutiny applies in
light of Reed v. Town of Gilbert, 135 S. Ct. 2218
(2015). Vugo thus asks the Court to review an issue
that was not developed below and that neither the
district court nor the court of appeals passed on.
Vugo’s “shift in posture” is not a valid basis for
departing from this Court’s general rule and
reaching a question without the “benefit of any
lower court review.” Adarand Constructors, Inc. v.
Mineta, 534 U.S. 103, 108–09 (2001) (per curiam).
An exception is particularly unwarranted in
light of the fact that only one circuit court has
squarely passed on Vugo’s argument that Reed
supersedes Central Hudson (and rejected it—see
infra at 12). Not only is there no split of authority,
as Vugo incorrectly contends, but there is hardly
any authority at all. The Court should at a
8
minimum stay its hand until the courts of appeals
have had further opportunity to consider the issue.
2. Given Vugo’s concession that the Central
Hudson standard applied, the City and the lower
courts accepted Vugo’s framing of the case as a
commercial-speech challenge to which Central
Hudson applied. But, as both the City and the
Second Circuit pointed out, it is not obvious that
the regulation applies only to commercial speech.
The Second Circuit explained that “the advertising
ban, on its face, also covers non-commercial
advertising—and there is record evidence that the
ban has, in fact, been applied to non-commercial
advertising” (Pet. 13a n.5). The City also pointed
out that, if the regulation were construed as
applying to both commercial and noncommercial
advertising, it would be a valid content-neutral
time, place, and manner restriction (2d Cir. ECF
No. 49 at 18 n.4).
If the Court were to grant certiorari, it would
thus have to consider another question not pressed
or passed on below—whether the regulation applies
specifically to commercial speech. On its face the
regulation applies to all “advertising,” not just to
commercial advertising (Pet. 66a, 69a). And, as the
Second Circuit pointed out, “regulations that apply
generally to ‘advertising’ … may not necessarily be
content-based” (Pet. 14a n.6 (citing Lone Star Sec.
& Video, Inc. v. City of Los Angeles, 827 F.3d 1192,
1198-1200 (9th Cir. 2016)). Viewed as a contentneutral restriction, the regulation would not
9
implicate the question that Vugo asks this Court to
grant certiorari to resolve. 2
B. There is no split of authority on the
question presented in any event.
The question that Vugo asks the Court to decide
would also not be certworthy on its own terms if it
were presented here. Vugo’s primary contention is
that the Central Hudson test for regulations of
commercial speech is “at odds” with certain of the
Court’s recent First Amendment decisions and the
subject of a circuit split. These manufactured and
illusory conflicts present no question warranting
the Court’s review.
1. Vugo focuses on Reed v. Town of Gilbert, 135
S. Ct. 2218 (2015), claiming that it implicitly
overruled Central Hudson. That is incorrect.
In Reed, the Court considered a sign code that
treated ideological signs, political signs, and
temporary directional signs differently. 135 S. Ct.
at 2224–25. The Court held that the code’s facial
discrimination between the types of messages
conveyed by the three types of signs made the code
2 The case also might become moot before the Court could
decide it. A New York City Councilmember has introduced a
local law to amend the City’s administrative code to
advertising on electronic tablets in for-hire vehicles. See
Advertising on the Interior of For-Hire Vehicles, N.Y.C.
Council Int. No. 1866-2020, https://perma.cc/5Z7D-ZMX4.
10
“content based on its face,” id. at 2227, and the
town could provide no valid justification for
treating the types of signs differently, id. at 2231–
32. The case did not involve a regulation of
commercial speech, so it is unsurprising that, as
Vugo concedes, the opinion of the Court in Reed did
not mention Central Hudson or the commercialspeech doctrine (Pet. 14); see Reed, 135 S. Ct. at
2224–33. The sole mention of Central Hudson in
the case is in Justice Breyer’s concurrence, which
noted that the commercial-speech doctrine is an
exception to the majority’s application of strict
scrutiny. Id. at 2235 (Breyer, J., concurring).
If, despite these indications, Reed overruled
Central Hudson, this Court has passed up multiple
opportunities to say so. The Court instead has
continued to rely on Central Hudson’s commercialspeech doctrine. In Matal v. Tam, the plurality
considered whether “trademarks are commercial
speech and are thus subject to the relaxed scrutiny
outlined in” Central Hudson, or instead receive
more searching scrutiny—ultimately not deciding
the question because the trademark restrictions
could not meet even the less stringent standard.
137 S. Ct. 1744, 1763–64 (2017) (plurality op.).
Likewise, in Janus v. AFSCME, Council 31, the
Court cited Central Hudson and explained that “the
government has traditionally enjoyed greater-thanusual power to regulate speech” in the context of
commercial speech. 138 S. Ct. 2448, 2465, 2477
(2018). And in Expressions Hair Design v.
Schneiderman, the Court remanded the case for the
11
court of appeals to consider whether the statute at
issue was “a valid commercial speech regulation
under Central Hudson.” 137 S. Ct. 1144, 1151
(2017).
The Court has also declined a recent
invitation to hold that Reed overruled Central
Hudson. Less than three weeks before this filing,
this Court denied a petition for certiorari advancing
nearly verbatim arguments and proposing an
identical question presented. Leibundguth Storage
& Van Serv. v. Vill. of Downers Grove, — S. Ct. —,
2020 U.S. LEXIS 1492 (Mar. 2, 2020). And there,
unlike here, the question had been squarely
presented to the circuit court.
2. Vugo contends that, despite this Court’s
consistent signals that the doctrine is unchanged,
“the lower courts are split” on whether to apply
strict scrutiny to restrictions on commercial speech
(Pet. 9–10). The commercial-speech cases decided
by the courts of appeals after Reed, however,
demonstrate that those courts have continued to
apply Central Hudson just as they had done for the
35 years before Reed was decided.
The only court of appeals to explicitly address
an argument that Reed impliedly overturned
Central Hudson “rejected the notion that Reed
altered
Central
Hudson’s
longstanding
intermediate
scrutiny
framework.”
Contest
Promotions, LLC v. City & Cnty. of San Francisco,
874 F.3d 597, 601 (9th Cir. 2017); see Retail Digital
12
Network, LLC v. Prieto, 861 F.3d 839, 846 (9th Cir.
2017) (en banc) (holding that the court “continue[s]
to follow the Central Hudson framework”).
Meanwhile, all of the other circuits that have
decided commercial-speech cases post-Reed—the
Third, Fifth, Sixth, Eight, Eleventh, D.C., and
Federal Circuits—continued to apply Central
Hudson without addressing whether Reed
impliedly overturned it. See Greater Phila.
Chamber of Commerce v. City of Philadelphia, 949
F.3d 116, 137–38 (3d Cir. 2020); Mo. Broadcasters
Ass’n v. Schmitt, 946 F.3d 453, 460 (8th Cir. 2020);
Nicopure Labs, LLC v. FDA, 944 F.3d 267, 284
(D.C. Cir. 2019); Bevan & Assocs., LPA v. Yost, 929
F.3d 366, 377 (6th Cir. 2019); In re Brunetti, 877
F.3d 1330, 1350 (Fed. Cir. 2017); Am. Acad. of
Implant Dentistry v. Parker, 860 F.3d 300, 306 (5th
Cir. 2017); Ocheesee Creamery LLC v. Putnam, 851
F.3d 1228, 1234 (11th Cir. 2017).
Vugo’s lone counterexample comes from the
Seventh Circuit’s unsupported characterization of a
Sixth Circuit case (Pet. 11–12). The Seventh Circuit
stated, in passing, that “[o]ne circuit recently held
that
Reed
supersedes
Central
Hudson.”
Leibundguth Storage & Van Serv., Inc. v. Vill. of
Downers Grove, 939 F.3d 859, 860, (7th Cir. 2019)
cert. denied — S. Ct. —, 2020 U.S. LEXIS 1492
(Mar. 2, 2020) (citing Thomas v. Bright, 937 F.3d
721 (6th Cir. 2019)). The basis for that statement is
unclear. The Sixth Circuit in Thomas was careful to
note that, despite the fact that the challenged
statute “was intended to, and routinely does, apply
13
to only commercial speech,” in that case “Tennessee
applied the Act to restrict … non-commercial
speech that was not advertising nor commercial in
any way.” Thomas, 937 F.3d at 726 (quotation
marks
omitted). 3
Consistent
with
its
characterization of the dispute, the court
determined that it would confine its analysis “to
non-commercial speech and need not consider the
commercial-speech doctrine.” Id. at 729 (emphasis
added). Indeed, the court did not even cite Central
Hudson. Thus, Vugo not only identifies the
shallowest of purported splits, but even that
limited claim is mistaken. 4
3. Petitioner also asserts that Central Hudson
conflicts with Sorrell v. IMS Health Inc., 564 U.S.
552 (2011) (Pet. 14). But Sorrell, despite suggesting
that a different analysis might properly apply to
the unusual statute at issue, ultimately applied the
3
Contrary to Vugo’s characterization, the court did not
“decline[] to sever” the statute’s commercial applications from
noncommercial applications, but rather did not reach the
issue because “Tennessee did not raise severability here, in
either its briefing or during oral argument.” Thomas, 937
F.3d at 729.
4 The narrowness of the Sixth Circuit’s holding in Thomas is
reinforced by the fact that other Sixth Circuit panels
continued to straightforwardly apply Central Hudson after
Reed was decided. See Bevan & Associates, 929 F.3d at 377;
ECM Biofilms v. FTC, 851 F.3d 599, 615 (6th Cir. 2017); Kiser
v. Kamdar, 831 F.3d 784, 788 (6th Cir. 2016).
14
Central Hudson test and cast no doubt on the test’s
continued vitality in general.
The statute in Sorrell sought to discourage the
prescribing of brand-name drugs by imposing
“content- and speaker-based restrictions on the
sale, disclosure, and use of prescriber-identifying
information” by pharmaceutical manufacturers and
marketers, but not others. Sorrell, 54 U.S. at 563–
65. The Court suggested that this patent contentand viewpoint-based discrimination might warrant
“a stricter form of judicial scrutiny” than
commercial speech receives. Id. at 571. But the
Court nonetheless applied the Central Hudson test
because “the outcome [was] the same” either way.
Id. Thus, far from rejecting Central Hudson’s test
for commercial-speech regulations, the Court
confirmed that it applies—except, perhaps, to
regulations that have the discriminatory features of
the particular statute at issue in Sorrell.
Vugo’s attempt to distill a general rejection of
Central Hudson from this holding is therefore
unavailing. For that reason, as the Second Circuit
explained, “[n]o Court of Appeals has concluded
15
that Sorrell overturned Central Hudson” (Pet.
17a). 5
C. Petitioner’s additional objections to
Central Hudson do not merit this Court’s
review.
1. Vugo argues that this case illustrates
purported flaws in Central Hudson that the Court
should grant certiorari to remedy (Pet. 16–20).
Curiously, however, in arguing that Central
Hudson is irredeemably flawed, Vugo cites no cases
that apply the Central Hudson framework. Instead,
Vugo relies on a rhetorical sleight of hand, arguing
that the City has attempted to regulate advertising
based on a judgment that “the content of
advertising” is annoying (Pet. 16). Vugo then cites
various cases for the proposition that the
government may not base speech regulations on
whether the idea expressed is offensive or
disagreeable (id. at 16–17).
But, as the Second Circuit explained, the goal of
the in-vehicle advertising restriction is to shield
5 Indeed, every circuit to consider the question has adhered to
the Central Hudson test in light of Sorrell. See Greater Phila.
Chamber of Commerce, 949 F.3d 139–40; In re Brunetti, 877
F.3d at 1350; Retail Dig. Network LLC, 861 F.3d at 846 (en
banc); Ocheesee Creamery, 851 F.3d at 1234 n.7; Mo.
Broadcasters Ass’n v. Lacy, 846 F.3d 295, 300 n.5 (8th Cir.
2017); 1-800-411-Pain Referral Serv., LLC v. Otto, 744 F.3d
1045, 1055 (8th Cir. 2014).
16
passengers in FHVs from “the offensive sight and
sound of advertisements—not their content—while
they are traveling through the city by car” (Pet.
19a). The court relied on evidence “that passengers
find the fact, not the content, of in-ride
advertisements annoying” (id. 19a n.8). And this
annoyance
is
understandable,
given
that
passengers are a captive audience, sitting a mere
arm’s length from a device mounted on the front
seatback that they cannot fully disable.
This Court has routinely confirmed that cities
and states have a substantial interest in the
aesthetics of their locales that support regulations
governing the display of advertisements. See
Members of City Council of City of Los Angeles v.
Taxpayers for Vincent, 466 U.S. 789, 805 (1984)
(affirming that a city is “entitled to protect
unwilling viewers against intrusive advertising”);
Metromedia, Inc. v. City of San Diego, 453 U.S. 490,
507–08 (1981) (plurality op.) (explaining that “the
appearance of the city” is a “substantial
governmental” interest); Lehman v. Shaker
Heights, 418 U.S. 298, 304 (1974) (holding that a
municipality could refuse to display political ads on
buses to “minimize . . . the risk of imposing upon a
captive audience”).
Vugo relies on entirely inapposite cases, none of
which resemble this case or implicate Central
Hudson (Pet. 16–17). For example, Snyder v.
Phelps considered the limits the First Amendment
places on state tort claims for intentional infliction
17
of emotional distress predicated on offensive speech
and expressive conduct. 562 U.S. 443, 452 (2011).
And in the other cases Vugo cites, the relevant
speech was regulated on the basis of the particular
subject matter or viewpoint espoused, not because
it was commercial in character. See Brown v.
Entm’t Merchs. Ass’n, 564 U.S. 786, 794 (2011)
(“California … wishes to create a wholly new
category of content-based regulation that is
permissible only for speech directed at children.”);
Erznoznik v. Jacksonville, 422 U.S. 205, 208 (1975)
(“Jacksonville’s ordinance … does not protect
citizens from all movies that might offend; rather it
singles out films containing nudity.”). Indeed, in
Carey v. Population Services, Inc., this Court
explicitly disclaimed any ruling on “the time, place,
or manner of … commercial advertising” for
contraceptives. 431 U.S. 678, 702 n.29 (1977).
Finally, in Martin v. Struthers, which predates
Central Hudson by more than 35 years, the Court
invalidated a complete ban on leafletting,
explaining that it was not a reasonable “regulation
of time and manner of distribution.” 319 U.S. 141,
147 (1943).
2. Vugo and its amici also argue that Central
Hudson should be overturned as unworkable
because courts supposedly have struggled to
distinguish
between
commercial
and
noncommercial speech (Pet. 17–18; Br. of Amicus
Curiae Pacific Legal Foundation 5–13). They
greatly overstate the point. The Central Hudson
18
test applies only to “speech that proposes a
commercial transaction.” Bd. of Trs. v. Fox, 492
U.S. 469, 482 (1989) (emphasis in original). In
applying this limitation, the Court has consistently
erred on the side of providing more protection for
speech that approaches the boundary line.
For that reason, many of the examples Vugo
and its amici rely on as edge cases do not propose a
commercial transaction and would fall outside of
the doctrine in any event. For example, Vugo notes
that video games “convey artistic expression,
narrative, and may even espouse political or social
views” (Pet. 18), and there is no dispute that the
expressive content within a video game is
absolutely protected by the First Amendment. See
Brown, 564 U.S. at 790. But Vugo’s next step is
faulty—it assumes that because video games are
“indisputably commercial products” all speech
within or about them must be commercial speech
(Pet. 18 (emphasis added)). That cannot be the
case, just as it cannot be the case that the content
of every book in a bookshop is commercial speech
simply because the books are for sale. The
commercial-speech doctrine applies only when the
particular speech at issue proposes a commercial
transaction, and not when the speech merely has a
commercial motivation. Fox, 492 U.S. at 482.
3. The fact that commercial and noncommercial
speech are often intertwined is likewise not a new
issue or an insurmountable problem, as Vugo and
its amici claim (Pet. 17–19; Br. of Amicus Curiae
19
Pacific Legal Foundation 5–13). The Court has long
limited the commercial-speech doctrine to reflect
this reality. The Court has held that commercial
speech does not retain its “commercial character
when it is inextricably intertwined with otherwise
fully protected speech.” Riley v. Nat’l Fed’n of Blind
of N.C., Inc., 487 U.S. 781, 796 (1988). Where
commercial speech is so intertwined with other
speech, courts apply the “test for fully protected
expression.” Id. Likewise, applying this Court’s
decision in Bolger v. Youngs Drug Products Corp.,
463 U.S. 60 (1983), the lower courts routinely
accord heightened protection to hybrid commercial
and noncommercial speech even where it does not
meet the “inextricably intertwined” test. See Dex
Media W., Inc. v. City of Seattle, 696 F.3d 952, 960–
61 (9th Cir. 2012) (collecting cases).
These doctrines resolve potentially difficult fact
patterns in the most speech-protective manner
while simultaneously preserving the essential
character of the commercial-speech doctrine,
thereby undercutting concerns raised by Vugo and
its amici about difficult hybrid-speech cases. The
petition’s generalized workability argument is thus
no sounder than its claim that this case implicates
a split in authority—or its unfounded assumption
that the case even properly raises the question that
it asks the Court to review.
20
CONCLUSION
The petition for a writ of certiorari should be
denied.
Respectfully submitted,
JAMES E. JOHNSON
Corporation Counsel of the
City of New York
Counsel for Respondents
RICHARD DEARING*
CLAUDE S. PLATTON
JAMISON DAVIES
New York City Law
Department
100 Church Street
New York, NY 10007
(212) 356-2500
rdearing@law.nyc.gov
*Counsel of Record
21
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.