Lorillard Tobacco v. Consolidated Cigar

218 F.3d 30
CourtCourt of Appeals for the First Circuit
DecidedJuly 19, 2000
Docket00-1107, 00-1117, 00-1118 and 00-1270 to 00-1275
StatusPublished
Cited by23 cases

This text of 218 F.3d 30 (Lorillard Tobacco v. Consolidated Cigar) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lorillard Tobacco v. Consolidated Cigar, 218 F.3d 30 (1st Cir. 2000).

Opinion

TORRUELLA, Chief Judge.

Before the Court is a challenge to regulations promulgated by the Attorney General of Massachusetts which restrict the sale, promotion, and labeling of tobacco products in an effort to reduce the use of such products by minors. Three groups of tobacco companies 1 have sued the Attor *37 ney General, claiming that the Massachusetts regulations are partially preempted by federal law, that the regulations violate their First Amendment right to free speech, and that the regulations violate the Commerce Clause of the Constitution. After due consideration of the arguments pressed by all parties and by amici curiae, and with full appreciation of the importance of the public health issue underlying this case, we conclude (1) that the regulations are not preempted by federal law, (2) that the regulations do not violate the First Amendment, and (3) that parts of the regulations unconstitutionally burden interstate commerce. Accordingly, we affirm in part and reverse in part the decision of the district court.

1. Factual and Procedural Background

On January 22, 1999, the Attorney General of Massachusetts promulgated regulations now codified at title 940, sections 21.00 through 21.07 (cigarettes and smokeless tobacco) and title 940, sections 22.00 through 22.09 (cigars) of the Massachusetts Code of Regulations. The regulations declare certain types of conduct by manufacturers, distributors, and sellers of tobacco products to be per se “unfair or deceptive acts or practices” prohibited under chapter 93A, § 2(a) of the Massachusetts General Laws. For example, the regulations prohibit a number of retail practices including promotional giveaways and mail ordering without age verification, see 940 C.M.R. §§ 21.04(1), 22.06(1), as well as measures aimed specifically at outlet sales practices, see id. §§ 21.04(2)-(3), 22.06(2)-(3). Of particular concern to the tobacco companies, the Massachusetts regulations also prohibit the following advertising practices:

(a) Outdoor advertising, including advertising in enclosed stadiums and advertising from within a retail establishment that is directed toward or visible from the outside of the establishment, in any location that is within a 1,000 foot radius of any public playground, playground area in a public park, elementary school or secondary school;
(b) Point-of-sale advertising ... any portion of which is placed lower than five feet from the floor of any retail establishment accessible to persons younger than 18 years old, which is located within a 1,000 foot radius of any public playground, playground area in a public park, elementary school or secondary school.

Id. §§ 21.04(5), 22.06(5). A single exception to the advertising ban permitted the display of a so-called “tombstone” sign stating “Tobacco products sold here,” see id. §§ 21.04(6), 22.06(6), but this provision was struck down by the district court on preemption grounds. 2 Finally, the regulations also prescribe mandatory warning statements to be included on all cigar labeling and advertising. See id. §§ 22.04, 22.05.

In response to the promulgation of the regulations, three separate suits were filed in federal district court by the appellants in this consolidated appeal, who are makers and sellers of cigarettes, smokeless tobacco products, and cigars. The cigarette and smokeless tobacco companies claimed that the Massachusetts regulations were preempted by the Federal Cigarette Labeling and Advertising Act (FCLAA), codified as amended at 15 U.S.C. §§ 1331-41, and that the regulations violated their commercial speech rights under the First Amendment. 3 The cigar companies also *38 challenged the regulations on First Amendment grounds, as well as claiming that the regulations imposed an undue burden on interstate commerce in violation of the Commerce Clause. In an opinion issued December 2, 1999, the district court rejected the preemption arguments of the cigarette and smokeless tobacco producers. See Lorillard Tobacco Co. v. Reilly, 76 F.Supp.2d 124 (D.Mass.1999) (Lorillard I). In a January 24, 2000 opinion, the district court likewise rejected the tobacco companies’ First Amendment claims, as well as the cigar makers’ Commerce Clause challenge. See Lorillard Tobacco Co. v. Reilly, 84 F.Supp.2d 180 (D.Mass.2000) (Lorillard II). 4 Judgment was entered on January 25, 2000 in favor of the Attorney General, and this appeal followed.

On appeal, the tobacco companies raise the following issues: (1) whether the Massachusetts regulations are preempted by federal law, (2) whether the regulations’ advertising restrictions violate the First Amendment, (3) whether certain restrictions imposed on retail practices violate the First Amendment, (4) and whether the regulations’ cigar warnings requirements violate the First Amendment and the Commerce Clause. The Attorney General cross-appeals one issue — whether the regulations’ indoor advertising restrictions violate the First Amendment.

II. Law and Application

A. Preemption
1. Introduction

The Supreme Court has explained the analysis for determining when a state regulation is preempted by a federal law that contains specific preemption language. In Medtronic, Inc. v. Lohr, 518 U.S. 470, 484-86, 116 S.Ct. 2240, 135 L.Ed.2d 700 (1996), the Court stated that,

to identify the domain expressly preempted by the federal statute, two presumptions about the nature of preemption must be considered. First, particularly when Congress has “ ‘legislated ... in a field which the States have traditionally occupied,’ we ‘start with the assumption that the historic police powers of the States were not to be superseded by the Federal Act unless that was the clear and manifest purpose of Congress.’ ” Id. at 485, 116 S.Ct. 2240. Second, in determining the scope of the federal preemption, the “ultimate touchstone” is Congress’s purpose as “discerned from the language of the preemption statute and the ‘statutory framework’ surrounding it.” Id. at 486, 116 S.Ct. 2240. In this respect, it is relevant to consider the “ ‘structure and purpose of the statute as a whole,’ as revealed not only in the text, but through the reviewing court’s reasoned understanding of the way in which Congress intended the statute and its surrounding regulatory scheme to affect business, consumers, and the law.” Id.

The tobacco companies argue, rather weakly we might say, that the “presumption against preemption” should not be applied in this case because the presumption “is not triggered when the State regulates in an area where there has been a history of significant federal presence.” United States v.

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Bluebook (online)
218 F.3d 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lorillard-tobacco-v-consolidated-cigar-ca1-2000.