Dunagin v. City of Oxford

718 F.2d 738, 10 Media L. Rep. (BNA) 1001
Court of Appeals for the Fifth Circuit·Decided October 31, 1983·No. Nos. 80-3762, 82-4076·Published·Cited by 68 cases

Opinions

REAVLEY, Circuit Judge:

Mississippi is one of several states which significantly restrict liquor advertising by the local media.1 Two suits were filed attacking, principally on First Amendment grounds, the Mississippi law. The District Courts for the Northern and Southern Dis[740]*740tricts of Mississippi reached opposite judgments in those cases. Dunagin v. City of Oxford, 489 F.Supp. 763 (N.D.Miss.1980) (upholding); Lamar Outdoor Advertising, Inc. v. Mississippi State Tax Commission, 539 F.Supp. 817 (S.D.Miss.1982) (invalidating).2 We uphold the constitutionality of the Mississippi law.

I. The Mississippi Law

Until 1966 the possession and sale of alcohol were banned in Mississippi. The state then accepted the impossibility of enforcement of total prohibition and enacted a local option law, allowing each county or judicial district therein to vote an end to the prohibition that otherwise continues throughout the state. Miss.Code Ann. §§ 67-1-1 et seq. (1973). Mississippi did not drop its objection to intoxicants by enacting the 1966 law; it reannounced the state policy of prohibition while allowing local exceptions under strict regulation:

The policy of this state is reannounced in favor of prohibition of the manufacture, sale, distribution, possession and transportation of intoxicating liquor ....
The purpose and intent of this chapter is to vigorously enforce the prohibition laws throughout the state, except in those counties voting themselves out from under the prohibition law in accordance with the provisions of this chapter, and, in those counties, to require strict regulation and supervision of the manufacture, sale, distribution, possession and transportation of intoxicating liquor....

Id. § 67-1-3. At the time of trial in Lamar Outdoor Advertising, thirty-five counties and four judicial districts remained “dry,” while forty-three counties and four judicial districts had voted to legalize liquor. The wet and dry counties are spread across the state in a checkerboard pattern, with the majority of the population residing in wet counties.

Pursuant to its rulemaking authority granted by the local option law, id. § 67-1-37(e), the Mississippi State Tax Commission promulgated Regulation No. 6, which prohibits most advertisements that “originate” within the state.3 The plaintiffs challenged [741]*741this regulation, as well as Miss.Code Ann. § 67-1-85 (1973) which prohibits most forms of liquor sign advertising as well.4

The combined effect of Regulation No. 6 and section 67-1-85 is that there are no billboards advertising hard liquor or wine in Mississippi. Local newspapers printed and distributed within the state are similarly restricted. Radio and television stations operating within the state cannot carry wine commercials, and must delete such advertisements from incoming network programming.

There are some exceptions to this ban upon the advertising of alcoholic beverages. Beer advertisements are generally allowed in all media.5 A retail package store is allowed under Regulation No. 6 to erect on-site signs with the message “Package Liquor Sold Here” along with its permit number, and may advertise inside the premises. Bars and restaurants can use the word “lounge” on signs and in other media.

The state has interpreted its law to mean that advertisements must originate within the state to be subject to its regulation. Hence, television and radio stations in other states broadcast liquor commercials that reach in-state viewers and listeners. Newspapers and magazines containing liquor advertisements from other states are mailed into the state, and newsstands in Mississippi are allowed to sell such publications. The state has even taken the position that a publication printed in Mississippi but mailed for distribution in Mississippi from another state is not subject to regulation. The state has also interpreted federal regulations to prohibit it from interrupting or deleting wine commercials in cable television transmissions sent from outside the state. See 47 C.F.R. § 76.55 (1982).

II. The First Amendment and Liquor Regulation

Those challenging the advertising ban argue primarily that it violates the First Amendment. They contend that this ad[742]*742vertising falls within that limited protection afforded pure commercial speech which does “no more than propose a commercial transaction,” Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council, Inc., 425 U.S. 748, 762, 96 S.Ct. 1817, 1825, 48 L.Ed.2d 346 (1976) and which is “related solely to the economic interests of the speaker and its audience,” Central Hudson Gas & Electric Corp. v. Public Service Commission of New York, 447 U.S. 557, 561, 100 S.Ct. 2343, 2348, 65 L.Ed.2d 341 (1980).6

A. The Scope of Commercial Speech Protection

While we need not so hold, there may be no First Amendment protection of purely commercial advertising of those products which the state could entirely proscribe.7 Or, if by virtue of its police power the state may prohibit or severely limit a trade or conduct (e.g., prostitution, hand-guns, explosive devices, marijuana, pipes and paraphernalia designed to be used with illegal drugs), the state may be entitled to allow the trade but restrict the advertising without having to justify the restriction by balancing the state interest against the public interest in the commercial speech. The Court has not expressly excepted this category of advertising from commercial speech protection. It has excluded advertising of illegal activity from the protection. Pittsburgh Press Co. v. Pittsburgh Commission on Human Relations, 413 U.S. 376, 388-389, 93 S.Ct. 2553, 2560, 37 L.Ed.2d 669 (1973). And restrictions on false, deceptive, and misleading commercial speech are permissible. Friedman v. Rogers, 440 U.S. 1, 9, 99 S.Ct. 887, 893, 59 L.Ed.2d 100 (1979). Thus far, the Court has written to place commercial speech under protection where “it at least concern[s] lawful activity and [is] not ... misleading.” Central Hudson Gas, 447 U.S. at 566, 100 S.Ct. at 2351.

The Court may or may not choose to exclude from protection the truthful advertising of lawful trades or activities which the state has so great an interest in abating that they are subject to prohibition. It probably makes no difference, however, whether this category of advertising is treated as outside of commercial speech protection or whether the Central Hudson Gas

Free access — add to your briefcase to read the full text and ask questions with AI

Dunagin v. City of Oxford, 718 F.2d 738, 10 Media L. Rep. (BNA) 1001 (5th Cir. 1983).

718 F.2d 738 (Dunagin v. City of Oxford) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Cocroft v. Graham
122 F.4th 176 (Fifth Circuit, 2024)
Chamber of Commerce for Greater Phila. v. City of Phila.
319 F. Supp. 3d 773 (E.D. Pennsylvania, 2018)
CDX Holdings, Inc. v. Fox
141 A.3d 1037 (Supreme Court of Delaware, 2016)
United States v. Vascular Solutions, Inc.
181 F. Supp. 3d 342 (W.D. Texas, 2016)
McKinley v. Abbott
643 F.3d 403 (Fifth Circuit, 2011)
PHYSICIAN HOSPITALS OF AMERICA v. Sebelius
781 F. Supp. 2d 431 (E.D. Texas, 2011)
RTM MEDIA, LLC v. City of Houston
578 F. Supp. 2d 875 (S.D. Texas, 2008)
National Abortion Federation v. Gonzales
437 F.3d 278 (Second Circuit, 2006)
United States v. Adams
375 F.3d 108 (First Circuit, 2004)
Chair King, Inc. v. GTE Mobilnet of Houston, Inc.
135 S.W.3d 365 (Court of Appeals of Texas, 2004)
Baby Dolls Topless Saloons, Inc. v. City of Dallas
295 F.3d 471 (Fifth Circuit, 2002)
Modern Cigarette, Inc. v. Town of Orange
774 A.2d 969 (Supreme Court of Connecticut, 2001)
Texas v. American Blastfax, Inc.
121 F. Supp. 2d 1085 (W.D. Texas, 2000)
Bailey v. Morales
190 F.3d 320 (Fifth Circuit, 1999)
Greater New Orleans v. United States
185 F.3d 917 (Fifth Circuit, 1998)
Gaudiya Vaishnava Society v. City of Monterey
7 F. Supp. 2d 1034 (N.D. California, 1998)