Anheuser-Busch, Inc. v. Schmoke

63 F.3d 1305, 1995 WL 530273
CourtCourt of Appeals for the Fourth Circuit
DecidedAugust 31, 1995
DocketNos. 94-1431, 94-1432
StatusPublished
Cited by97 cases

This text of 63 F.3d 1305 (Anheuser-Busch, Inc. v. Schmoke) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anheuser-Busch, Inc. v. Schmoke, 63 F.3d 1305, 1995 WL 530273 (4th Cir. 1995).

Opinion

Affirmed by published opinion. Judge NIEMEYER wrote the opinion, in which Judge HAMILTON and Senior Judge BUTZNER joined.

OPINION

NIEMEYER, Circuit Judge:

We decide in this case whether Ordinance 288 enacted by the Mayor and City Council of Baltimore, Maryland, prohibiting the placement of stationary, outdoor “advertising that advertises alcoholic beverages” in certain areas of the City, violates the First and Fourteenth Amendment protections of commercial speech. The district court concluded, after applying the four-part test for evaluating commercial speech announced in Central Hudson Gas & Elec. Corp. v. Public Serv. Comm’n of N.Y., 447 U.S. 557, 100 S.Ct. 2343, 65 L.Ed.2d 341 (1980), that the ordinance did not violate the Constitution,1 and we now affirm.

I

Under Maryland law, it is illegal to sell any alcoholic beverage to, or to obtain any alcoholic beverage for, a person under 21 years of age. It is also illegal for a person under 21 years of age to obtain, possess, or control an alcoholic beverage. Md.Code, Art. 27, §§ 400-403A. To advance the state’s interest in those prohibitions and to promote “the welfare and temperance of minors exposed to advertisements for alcoholic beverages,” the Maryland legislature authorized the Mayor and City Council of Baltimore (collectively “Baltimore”) to adopt an ordinance restricting the placement of signs that advertise alcoholic beverages in “publicly visible locations,” ie. on “outdoor billboards, sides of buildings, and freestanding signboards.” Md.Code, Art. 2B, § 222. The authorization, however, contains 10 limitations which prohibit Baltimore from restricting such advertising on, for example, buses, taxicabs, commercial vehicles used in the transportation of alcoholic beverages, and signs at businesses licensed to sell alcoholic beverages, including professional sports stadiums.

In January 1994, Baltimore exercised the authority granted it by the State and enacted Ordinance 288 prohibiting the outdoor advertising of alcoholic beverages in certain locations in Baltimore City.2 The prohibition in [1309]*1309the ordinance is subject to the same 10 exceptions specified in the State’s authorizing statute, and it also includes an exception permitting such advertising in certain commercially and industrially zoned areas of the City. By its terms, the ordinance was to become effective February 5, 1994.

Before enacting the ordinance, the Baltimore City Council conducted public hearings, receiving testimony and previously conducted studies detailing the adverse effects on minors of alcohol consumption and the correlation between underage drinking and the advertising of alcoholic beverages.3 While one of the studies, the report of the Governor’s Prevention Committee, acknowledged that certain studies advanced by the alcohol beverage and advertising industries showed no correlation between alcohol advertising and underage drinking, it concluded that the overwhelming majority of research studies showed a definite correlation. To combat underage drinking, the Prevention Committee’s report recommended, among other things, that communities regulate alcoholic beverage advertising on billboards.

In the preamble to the ordinance, the City Council summarized its findings in support of the ordinance. The City Council found, for instance, that the consumption of alcoholic beverages is involved in at least one-half of all the major causes of death among youth and that about one-third of all juvenile males arrested said they had consumed alcohol within the previous 72 hours. In concluding that a connection exists between underage drinking and the widespread advertising of alcoholic beverages, the City Council found that alcoholic beverages are the second most heavily advertised products in America (after cigarettes), and that outdoor billboards are a “unique and distinguishable” medium of advertising which subjects the public to involuntary and unavoidable forms of solicitation. The City Council noted that children are exposed to the advertising of alcoholic beverages “simply by walking to school or playing in their neighborhood” and that children’s “attitudes favorable to alcohol are significantly related to their exposure to alcohol advertisements.” The City Council pointed to the Prevention Committee’s report that the “ ‘overwhelming majority of research studies showed a definite correlation between alcohol advertising and underage drinking” and concluded that “[a]n ordinance restricting the placement of advertisements for alcoholic beverages in publicly visible locations within Baltimore City is necessary for the promotion of the welfare and temperance of minors exposed to such advertisements.” Attempting to tailor its ban, the City Council allowed advertising of alcoholic beverages in commercial and industrial areas, stating that it was “narrowly foeus[ing] its efforts on those advertisements which most directly affect minors where they live, attend school, attend church and engage in recreational activities.”

On January 14, 1994, several weeks before the ordinance was to become effective, An-heuser-Busch, Inc., filed suit in federal court, facially challenging the constitutionality of the ordinance under the First and Fourteenth Amendments. It also challenged the ordinance as it might be applied to public service messages which Anheuser-Busch typically sponsors. One week later, Penn Advertising of Baltimore, Inc., filed a similar suit.

Anheuser-Busch is the nation’s largest brewer of beers and malt beverages, producing approximately 15 different brands, including Budweiser, Michelob, and Busch. It advertises in all media, including outdoor billboards and displays. In addition to contending that there is no correlation between alcoholic beverage advertising and underage drinking, Anheuser-Busch asserts that the purpose of its advertising is “to solidify brand loyalty and increase market share by [1310]*1310shifting adult beer drinkers from other brands to the advertised brand of beer.” In its complaint, Anheuser-Busch alleges that it promotes its brands of beer on dozens of billboards in Baltimore and that on seven it publishes public service messages such as, “Know when to say when” and “Let’s stop underage drinking before it starts.” These public service messages typically include a corporate or product logo of Anheuser-Busch.

Penn Advertising is engaged in the business of placing advertising on outdoor advertising signs located throughout Baltimore. It leases land from private property owners, erects and maintains outdoor sign structures on those locations, and rents these signs to its customers, including Anheuser-Busch.

Shortly after commencing these actions, Anheuser-Busch and Penn Advertising filed a motion for a preliminary injunction to enjoin enforcement of Ordinance 288 pending the litigation, and the district court issued a stay of the ordinance’s enforcement. The Mayor and City Council of Baltimore filed motions to dismiss the actions under Federal Rule of Civil Procedure 12(b)(6) on the grounds that the ordinance is (1) protected by the Twenty-First Amendment and (2) a proper regulation of commercial speech under the framework established in Central Hudson.

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Cite This Page — Counsel Stack

Bluebook (online)
63 F.3d 1305, 1995 WL 530273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anheuser-busch-inc-v-schmoke-ca4-1995.