THII!I! IIA!

5/26/20ll l2:l5 IM
503
AVI!TISIC, COMMI!CIA! SIIICH, A
II!ST AMIMIT IA!ITY
!"#$%&'()*)*

AdvorfIsIng hns boon n nrf of our cuIfuro fhroughouf our

hIsfory. Ivon In coIonInI dnys, fho ubIIc roIIod on commorcInI
sooch for vIfnI InformnfIon nbouf fho mnrkof. InrIy nowsnors
dIsInyod ndvorfIsomonfs for goods nnd sorvIcos on fhoIr fronf
ngos, nnd fown crIors cnIIod ouf rIcos In ubIIc squnros. Indood,
commorcInI mossngos Inyod such n confrnI roIo In ubIIc IIfo
rIor fo fho foundIng fhnf IonjnmIn IrnnkIIn nufhorod hIs onrIy
dofonso of n froo ross In suorf of hIs docIsIon fo rInf, of nII
fhIngs, nn ndvorfIsomonf for voyngos fo Inrbndos.
l
I. IT!O!CTIO ............................................................... 503
II. HOW AVI!TISIC A COMMI!ICA! SIIICH
IIIIIT COS!MI!S ................................................... 50?
A. InformnfIonnI nnd IducnfIonnI Iffocfs ....................... 50?
I. Mnrkof nnd ComofIfIvo Iffocfs ................................. 5ll
C. ModIn IromofIon nnd Confonf Cross-SubsIdIznfIon .. 5l2
III. THI I!ACTICA! CASI ACAIST IW
COMMI!CIA! SIIICH !IST!ICTIOS ..................... 5l4
IV. THI I!ICII!I CASI: TOWA! II!ST
AMIMIT IA!ITY IO! COMMI!CIA!
SIIICH .............................................................................. 5l6
I. IT!O!CTIO
AdvorfIsIng offon mnkos nn onsy fnrgof for oIIfIcInns or
roguInfory ncfIvIsf grous who mnko n vnrIofy of cInIms nbouf Ifs
nognfIvo Imncf on socIofy. ! unfII fho Info l9?0s, fodornI

Senior research fellow at the Mercatus Center at George Mason University.

l. 44 !Iquormnrf, Inc. v. !hodo IsInnd, 5l? !.S. 484, 495 (l996) (InfornnI
cIfnfIons omIffod).
THII!I! IIA! 5/26/20ll l2:l5 IM
CHA!!ISTO !AW !IVIIW |VoIumo 5
504
oIIcymnkorsosocInIIy IodornI Trndo CommIssIon (ITC)
offIcInIsnggrossIvoIy roguInfod commorcInI ndvorfIsIng nnd
mnrkofIng offorfs cIfIng concorns such ns docofIon, nnnoynnco,
offonsIvonoss, or Ifs offocf on chIIdron. Af roof, whnf unIfos nII
such concorns, bofh fhon nnd now, Is n gonornI nnxIofy nbouf
ndvorfIsIng boIng n suosodIy mnnIuInfIvo or unnocossnry
forco In socIofy. John CnIfoo dubbod fhIs fho fonr of orsunsIon
nnd nofod fhnf such nffncks on ndvorfIsIng nro IronIc In fho
oxfromo sInco |f]ho ossonco of orsunsIon Is fho nbsonco of
coorcIon.
2
Tho nggrossIvo roguInfory sfnnco of fho l960s nnd l9?0s
ovonfunIIy cnmo undor Infonso scrufIny by oconomIsfs nnd fho
courfs, howovor, nnd fodornI ndvorfIsIng rosfrIcfIons woro
roconsIdorod nnd roInxod fhroughouf fho l980s nnd '90s.
AcndomIc nnd govornmonf rosonrch rovonIod fhnf, dosIfo fho
bosf InfonfIons, ndvorfIsIng nnd mnrkofIng rosfrIcfIons woro
drIvIng u rIcos, cronfIng bnrrIors fo onfry, nnd donyIng
consumors Imorfnnf InformnfIon nbouf goods nnd sorvIcos.
3
Thnf Inffor robIom ovonfunIIy cnfurod fho nffonfIon of fho
Suromo Courf, whIch bognn ruIIng In fho '?0s fhnf rosfrIcfIons
on commorcInI sooch woro nn nffronf fo fho IIrsf Amondmonf.
Ior fhoso ronsons, fho ITC nnd fho courfs InrgoIy doroguInfod
ndvorfIsIng mnrkofsnf Ionsf fho mosf onorous, roomfIvo
oIIcIosnnd fhon focusod on oIIcIng cIonr-cuf cnsos of docofIvo
ndvorfIsIng or consumor frnud.
!oconfIy, howovor, fodornI oIIcymnkors, sfnfo IogIsInfors,
nnd sfnfo nffornoys gonornI hnvo shown ronowod Inforosf In
roguInfIng commorcInI ndvorfIsIng nnd mnrkofIng.
4
SovornI now
2. JOH I. CA!III, IIA! OI II!S!ASIO: A IW II!SIICTIVI O
AVI!TISIC A !IC!!ATIO 2 (l99?).
3!" #$$% $!&!, Coorgo J. SfIgIor, '($" )*+,+-.*/" +0" 1,0+2-34.+,, 69 J. IO!.
ICO. 2l3 (l96l); IhIIII oIson, 567$24./.,&" 3/" 1,0+2-34.+,, 82 J. IO!. ICO.
?29 (l9?4).
4. Tho rosocf of moro govornmonf roguInfIon of ndvorfIsIng nnd
mnrkofIng fook on now IIfo In 2009, nInrmIng mnrkofors nnd nd oxocufIvos.
Suznnno VrnnIcn, 8+2" 56" 1,69/42:%" ;<=<" >2+-./$/" #*3,4" ?$@.$0, WA!! ST.
J., oc. 24, 2009, nf I5, 373.@3A@$" 34" hff://onIIno.wsj.com/nrfIcIo/
SIl000l424052?48?0352l9045?46l4223?88268550.hfmI. nn Jnffo, oxocufIvo
vIco rosIdonf for govornmonf roInfIons nf fho AssocInfIon of nfIonnI
AdvorfIsors, foId '($" B+92,3@, Wo hnvo novor soon fhIs fyo of scrufIny. . . .
THII!I! IIA! 5/26/20ll l2:l5 IM
20ll] Iire/ AnenJnen/ Pori/,
505
roguInfory InIfInfIvos nro boIng roosod, or nro nIrondy
undorwny, fhnf couId sovoroIy curfnII or rosfrIcf commorcInI
sooch on n vnrIofy of Infforms.
5
Tho nffocfod Infforms rnngo
from frndIfIonnI modIn (nowsnors, TV, nnd rndIo brondcnsfors,
ofc.) fo fho nowosf modIn oufIofs (fho Infornof, onIIno nd
nofworks, socInI nofworks, vIdoo gnmos, mobIIo dovIcos, nnd
InforncfIvo foIovIsIon). SocIfIc Issuos or roducfs fhnf wouId bo
covorod by fhIs oxnndod roguInfory ncfIvIsm IncIudo
hnrmncoufIcnIs,
6
fobncco,
?
nIcohoI,
8
ndvorfIsIng durIng
chIIdron`s foIovIsIon rogrnmmIng,
9
onIIno mnrkofIng fo
chIIdron,
l0
fho voIumo of nds on foIovIsIon,
ll
roducf Incomonf
mnrkofIng,
l2
nnd fosfImonInIs.
l3
Iorhns fho mosf nofnbIo of
Thoro Is nofhIng wo do fhnf Is nof undor n mIcroscoo rIghf now. 1J.
5. John Iggorfon, AJ 1nJue/r, Geore Ip for Bo//lee ui/l Woeling/on,
I!OACASTIC & CAI!I (Aug. 8, 2009), www.brondcnsfIngcnbIo.com/nrfIcIo/
rInf/326838-Ad_Indusfry_Conrs_!_for_InffIos_WIfh_WnshIngfon.h.
6. 1.g., Knrmon Hnnson, Mor/e/ing onJ Direc/-/o-Coneuner AJter/ieing
(DTCA) of Plornoceu/icole, AT`! COI. OI STATI !ICIS!AT!!IS (ov. 20l0),
hff://www.ncsI.org/dofnuIf.nsxfnbId=l446l (roorfIng n comondIum of sfnfo
Inws concornIng fho mnrkofIng nnd ndvorfIsIng of hnrmncoufIcnIs).
?. 1.g., OIono Signe Tougl ToIocco Iegulo/ione, !II.COM (Juno 22,
2009, 3:l2 IM), hff://www.uI.com/To_ows/2009/06/22/Obnmn-fo-sIgn-
fobncco-bIII/!II-6ll6l2456?0l33.
8. See, e.g., CT!. O A!COHO! MKTC. & YO!TH, STATI A!COHO!
AVI!TISIC !AWS: C!!!IT STAT!S A MOI! IO!ICIIS (2003), otoiloIle o/
hff://www.owfrusfs.org/uIondodIIIos/wwwowfrusfsorg/!oorfs/AIcohoI_mn
rkofIngnnd_youfh/hhs_cnmy_sfnfo_roorf.df.
9. 1.g., Mnffhow !nsnr, ICC. TV AJ Con/en/ for KiJe Boc/ on /le
Iegulo/or, ToIle, A!STICHICA (JuIy 23, 2009, l0:05 AM), hff://nrsfochnIcn.
com/foch-oIIcy/nows/2009/0?/fcc-fv-nd-confonf-for-kIds-bnck-on-fho-roguInfory-
fnbIo.nrs.
l0. See, e.g., IorIn Szokn & Adnm ThIoror, Irogross & Iroodom Iound.,
COPPA 2.0. Tle Aeu Bo//le oter Pritoc,, Age Verifico/ion, Online Sofe/, & Iree
Speecl, l6 I!OC!ISS O IOIT l (Juno 2009), otoiloIle o/ www.ff.org/Issuos-
ubs/os/2009/ol6.ll-COIIA-nnd-ngo-vorIfIcnfIon.df.
ll. 1.g., JuIInnn CruonwnId, Seno/e Boc/e Bill AineJ A/ IeJucing LouJ
TV AJe, TICH AI!Y OSI (Sof. 30, 20l0, l0:38 AM), hff://fochdnIIydoso.
nnfIonnIjournnI.com/20l0/09/sonnfo-bncks-bIII-nImod-nf-rod.h.
l2. See, e.g., SonsorshI IdonfIfIcnfIon !uIos nnd Imboddod AdvorfIsIng,
?3 Iod. !og. 43, l94-43, 200 (roosod JuIy 24, 2008) (ofIco of InquIry nnd
Iroosod !uIomnkIng), otoiloIle o/ hff://hrnunfoss.fcc.gov/odocs_ubIIc/
nffnchmnfch/ICC-08-l55Al.df; eee oleo W. KIITH II!!II & AAM THII!I!,
THI I!OC!ISS & I!IIOM IO!ATIO, COMMITS O SIOSO!SHII
IITIIICATIO !!!IS A IMIII AVI!TISIC (Sof. l9, 2008),
www.ff.org/Issuos-ubs/fIIIngs/2008/092208SonsorshIIIIIng.df (rosondIng
THII!I! IIA! 5/26/20ll l2:l5 IM
CHA!!ISTO !AW !IVIIW |VoIumo 5
506
fhoso offorfs Is fho roconf ush nf fho fodornI IovoI fo Imoso n
comrohonsIvo roguInfory rogImo on onIIno ndvorfIsIng nnd dnfn
coIIocfIon offorfs In fho nnmo of onhnncIng consumor rIvncy.
l4
ThIs mIghf IncIudo n so-cnIIod o of Trnck mochnnIsm fhnf
wouId bIock ndvorfIsIng or dnfn coIIocfIon fhrough fho mnndnfory
roongInoorIng of Wob browsors.
l5
Tho consoquoncos of fhoso sfood-u roguInfory offorfs
couId bo rofound nnd mny ndvorsoIy Imncf consumors bofh
dIrocfIy nnd IndIrocfIy.
l6
Tho roIo commorcInI sooch Inys In n
froo mnrkof oconomy Is offon mIsundorsfood or fnkon for grnnfod.
ThIs ossny brIofIy oufIInos fho ronsons why now rosfrIcfIons on
ndvorfIsIng nnd mnrkofIng wouId dImInIsh consumor woIfnro.
Moroovor, If undorscoros nnd ondorsos fho Suromo Courf`s
roconf jurIsrudonco In fhIs nron, whIch hns boIsforod fho IIrsf
Amondmonf sfnfus of commorcInI sooch, nIfhough fhoso
docIsIons hnvo fnIIon shorf of nccordIng commorcInI sooch fho
snmo consfIfufIonnI rofocfIons ns ofhor fyos of sooch nnd
oxrossIon. ThIs dIsfIncfIon Is Ioss sonsIbIo nnd Ioss onforconbIo
In nn ngo of modIn convorgonco nnd usor-gonornfod confonf; fho
boundnrIos bofwoon commorcInI nnd non-commorcInI sooch nro
sImIy nof ns brIghf ns fhoy onco woro. Thus, fhoro nro bofh
rIncIIod nnd rncfIcnI rnfIonnIos for ondIng fhIs roguInfory
nsymmofry nnd nccordIng commorcInI sooch IIrsf Amondmonf
rofocfIons on nr wIfh nII ofhor forms of sooch nnd oxrossIon.
fo fho ofIco of InquIry nnd ofIco of Iroosod !uIomnkIng).
l3. See, e.g., ITC CuIdos ConcornIng fho !so of Indorsomonfs nnd
TosfImonInIs In AdvorfIsIng, l6 C.I.!. 255 (20l0).
l4. ITC, I!OTICTIC COS!MI! I!IVACY I A I!A OI !AII CHACI: A
I!OIOSI I!AMIWO!K IO! I!SIISS A IO!ICYMAKI!S (oc. 20l0), otoiloIle
o/ hff://www.ffc.gov/os/20l0/l2/l0l20lrIvncyroorf.df.
l5. TnnzInn Vogn & Vorno Koyfoff, 1n Online Pritoc, Plon,
/le Op/-Ou/ Quee/ion Loone, .Y. TIMIS, oc. 5, 20l0, nf Il,
otoiloIle o/ hff://www.nyfImos.com/20l0/l2/06/busInoss/modIn/06rIvncy.
hfmI; AAM THII!I!, MI!CAT!S CT!. CIO!CI MASO !IV., I!I!IC ITI!IST
COMMIT O III!A! T!AI COMMISSIO !IIO!T: I!OTICTIC COS!MI!
I!IVACY I A I!A OI !AII CHACI (Iob. l8, 20ll),
otoiloIle o/ hff://morcnfus.org/ubIIcnfIon/ubIIc-Inforosf-commonf-rofocfIng-
consumor-rIvncy-orn-rnId-chnngo.
l6. AAM THII!I!, MI!CAT!S CT!. CIO!CI MASO !IV., O!II I!IVACY
!IC!!ATIO: !IKI!Y MO!I COMI!ICATI (A COST!II!) THA IMACII (oc. 6,
20l0), otoiloIle o/ hff://morcnfus.org/ubIIcnfIon/onIIno-rIvncy-roguInfIon.
THII!I! IIA! 5/26/20ll l2:l5 IM
20ll] !"#$%&'()*+()*%&,-#"%.
50?
II. HOW AVI!TISIC & COMMI!ICA! SIIICH
IIIIIT COS!MI!S
Ivon If fhoy do nof nIwnys nrocInfo If, consumors
bonofIf from ndvorfIsIng nnd commorcInI sooch In
fhroo Imorfnnf wnys: (l) InformnfIonnI/oducnfIonnI offocfs;
(2) mnrkof/comofIfIvo offocfs; nnd (3) modIn romofIon/confonf
cross-subsIdIznfIon. Inch bonofIf wIII bo brIofIy consIdorod.
A. InformnfIonnI & IducnfIonnI Iffocfs
AdvorfIsIng rovIdos Imorfnnf InformnfIon nnd sIgnnIs fo
consumors nbouf goods nnd sorvIcos fhnf nro comofIng for fhoIr
nIIogInnco. ThIs hoIs soIvo nn ofhorwIso InfrncfnbIo InformnfIon
robIom fhnf wouId go unsoIvod wIfhouf ndvorfIsIng`s cInIms nnd
counfor-cInIms nbouf goods nnd sorvIcos. As oboI Inuronfo
oconomIsf Coorgo SfIgIor oInfod ouf In hIs Iogondnry l96l
nrfIcIo on fho oconomIcs of InformnfIon, ndvorfIsIng Is nn
ImmonsoIy oworfuI Insfrumonf for fho oIImInnfIon of
Ignornnco.
l?
SImIInrIy, John CnIfoo hns nrguod ndvorfIsIng hns
nn unsusocfod owor fo Imrovo consumor woIfnro sInco If Is
nn offIcIonf nnd somofImos IrroInconbIo mochnnIsm for brIngIng
consumors InformnfIon fhnf wouId ofhorwIso InnguIsh on fho
sIdoIInos.
l8
Moro ImorfnnfIy, CnIfoo nrguos:
AdvorfIsIng`s romIso of moro nnd boffor InformnfIon nIso
gonornfos rIIo offocfs In fho mnrkof. Thoso IncIudo onhnncod
InconfIvos fo cronfo now InformnfIon nnd dovoIo boffor
roducfs. ThoorofIcnI nnd omIrIcnI rosonrch hns domonsfrnfod
whnf gonornfIons of nsfufo obsorvors hnd known InfuIfIvoIy,
fhnf mnrkofs wIfh ndvorfIsIng nro fnr suorIor fo mnrkofs
l?. SfIgIor, $/0#-& nofo 3, nf 220. SInco oboI Inuronfo Coorgo SfIgIor`s
l96l nrfIcIo on fho oconomIcs of InformnfIon, oconomIsfs hnvo IncronsIngIy como
fo rocognIzo fhnf, bocnuso If roducos fho cosfs of obfnInIng InformnfIon,
ndvorfIsIng onhnncos oconomIc orformnnco. J. HOWA! IIA!IS & TIMOTHY J.
M!!IS, STATI A III!A! !IC!!ATIO OI ATIOA! AVI!TISIC ? (l993).
|W]hnf consumors know nbouf comofIng nIfornnfIvos InfIuoncos fhoIr choIcos.
Ioffor InformnfIon nbouf fho ofIons onnbIos consumors fo mnko choIcos fhnf
boffor sorvo fhoIr Inforosfs. 1+. nf 8.
l8. CA!III, $/0#-&nofo 2, nf 96.
THII!I! IIA! 5/26/20ll l2:l5 IM
CHA!!ISTO !AW !IVIIW |VoIumo 5
508
wIfhouf ndvorfIsIng.
l9
In ofhor words, !"#$%&'(')*+ $",-!&$(. If onsuros consumors
nro boffor Informod nbouf fho worId nround fhom nnd nof jusf
oducnfod on fho socIfIc goods or sorvIcos boIng ndvorfIsod.
20
If
nIso rnIsos gonornI nwnronoss nbouf now cInssos or cnfogorIos of
goods nnd sorvIcos. If hoIs cIfIzons In fhoIr cnncIfy ns
consumors fo bocomo boffor nwnro of fho ofIons nf fhoIr dIsosnI
nnd fho roInfIvo morIfs of fhoso choIcos. Ior oxnmIo, n Iobrunry
20l0 oII by Abouf.com found fhnf |w]hIIo ono-fhIrd of fho onIIno
buyors who woro nIdod by nds snId fhoy hoIod fhom snvo monoy,
fho mnjorIfy nrocInfod onIIno nds for InformIng fhom nbouf n
roducf or sorvIco rovIousIy unknown.
2l
ThIs Is fho oducnfIonnI
owor of ndvorfIsIng nf work, nnd If suggosfs fhnf mnny
consumors ". undorsfnnd nnd nrocInfo fho bonofIfs of
commorcInI sooch.
Iocnuso of fho Imorfnnf oducnfIonnI roIo Inyod by
ndvorfIsIng nnd mnrkofIng In fho oconomy, fho Suromo Courf
hns mndo If IncronsIngIy cIonr fhnf, IIko ofhor forms of sooch,
commorcInI sooch dosorvos IIrsf Amondmonf consIdornfIon nnd
rofocfIon. !nfII roconfIy, ndvorfIsIng hnd n forfurod IognI
hIsfory, nnd for ronsons fhnf hnvo novor boon ndoqunfoIy
oxInInod, bofh judgos nnd commonfnfors hnvo soon fIf fo gIvo
commorcInI sooch n Iowor IovoI of rofocfIon fhnn ofhor fyos of
sooch.
22
IogInnIng In fho onrIy l9?0s, howovor, fho Suromo Courf
bognn hnndIng down n sfrIng of docIsIons fhnf gronfIy onhnncod
commorcInI froo sooch rIghfs.
23
In /'%*')'!+ 01!%2!-3+ 4.!%"+ #5+
l95+ 6".
20. Consumors fhoroforo nro boffor Informod, rosuIfIng In onhnncod
mnrkof orformnnco. IIA!IS &M!!IS, (,7%! nofo l?, nf 8.
2l5+ 8)9')$+ :"(+ ;$97+ <1.77$%(+ <!#o, IMA!KITI!.COM (Iob. 22, 20l0),
www.omnrkofor.com/ArfIcIo.nsx!=l00?524.
22. AIox KozInskI & Sfunrf Innnor, =1.>(+ :?%!'"+ .?+ @.22$%-'!9+ <7$$-1A,
?6 VA. !. !IV. 62?, 653 (l990).
23. !orIIInrd Tobncco Co. v. !oIIIy, 533 !.S. 525 (200l); Cronfor ow
OrIonns Irond. Ass`n v. !nIfod Sfnfos, 52? !.S. l?3 (l999); 44 !Iquormnrf, Inc.
v. !hodo IsInnd, 5l? !.S. 484 (l996); IIn. Inr v. Wonf Ior If, Inc., 5l5 !. S. 6l8
(l995); !ubIn v. Coors IrowIng Co., 5l4 !. S. 4?6 (l995); Ibnnoz v. IIn. o`f of
Ius. &Irof`I !oguInfIon, Id. of Accounfnncy, 5l2 !.S. l36 (l994); IooI v. Aff`y
!ogIsfrnfIon & IscIIInnry Comm`n of III., 496 !.S. 9l (l990); Shnoro v. Ky.
THII!I! IIA! 5/26/20ll l2:l5 IM
20ll] !"#$%&'()*+()*%&,-#"%.
509
/"#0"*"-& 1"%"2)*$& 13*$4()#& 134*5"6,
24
ono of fho fIrsf nnd mosf
Imorfnnf of fhoso docIsIons, fho Courf hoId fhnf IndIvIdunI
consumors nnd socIofy ns n whoIo mny hnvo n sfrong Inforosf In
fho froo fIow of commorcInI InformnfIon.
25
As fo fho nrfIcuInr
consumor`s Inforosf In fho froo fIow of commorcInI InformnfIon,
fhnf Inforosf mny bo ns koon, If nof koonor by fnr, fhnn hIs
Inforosf In fho dny`s mosf urgonf oIIfIcnI dobnfo, JusfIco
IInckmun sfrossod In fhnf docIsIon.
26
Tho Courf confInuod:
So Iong ns wo rosorvo n rodomInnnfIy froo onforrIso
oconomy, fho nIIocnfIon of our rosourcos In Inrgo monsuro wIII
bo mndo fhrough numorous rIvnfo oconomIc docIsIons. If Is n
mnffor of ubIIc Inforosf fhnf fhoso docIsIons, In fho nggrognfo,
bo InfoIIIgonf nnd woII Informod. To fhIs ond, fho froo fIow of
commorcInI InformnfIon Is IndIsonsnbIo.
2?
Jusf four yonrs Infor, fho Courf soIIdIfIod fhIs now nronch
In 1)*%#-6& 74+$3*& 8-$& 9& :6)5%#"5& 13#;<& =<& ,4>6"5& ?)#="5)&
13(("$$"3*& 3@& A)B& C3#D
28
by nofIng fhnf |f]ho IIrsf
Amondmonf`s concorn for commorcInI sooch Is bnsod on fho
InformnfIonnI funcfIon of ndvorfIsIng.
29
In fhnf cnso, fho Courf
dovoIood n four-nrf frnmowork fo ovnIunfo fho consfIfufIonnIIfy
of ndvorfIsIng rosfrIcfIons:
Inr Ass`n., 486 !.S. 466 (l988); Iosndns do Iuorfo !Ico Assocs.v. TourIsm Co.
of I. !., 4?8 !.S. 328 (l986); Znudoror v. OffIco of Isc. CounsoI, 4?l !.S. 626
(l985); IoIgor v. Youngs rug Irods. Cor., 463 !.S. 60 (l983); Conf. Hudson
Cns & IIoc. Cor. v. Iub. SorvIco Comm`n of .Y.,44? !.S. 55? (l980);
IrIodmnn v. !ogors,440 !.S. l (l9?9); Infos v. Sfnfo Inr of ArIz., 433 !.S. 350
(l9??); !Inmnrk Assocs., Inc. v. WIIIIngboro, 43l !.S. 85 (l9??); Vn. Id. of
Ihnrmncy v. Vn. CIfIzons Consumor CouncII,425 !.S. ?48 (l9?6); IIgoIow v.
VIrgInIn, 42l !.S. 809 (l9?5); IIffsburgh Iross Co. v. IIffsburgh Comm`n on
Humnn !oInfIons, 4l3 !.S. 3?6 (l9?3).
24. 425 !.S. ?48 (l9?6).
25. Vn. Ihnrmncy Id. v. Vn. CIfIzons CouncII, 425 !.S. ?48, ?64 (l9?6).
26<& E+<&nf ?63. SImIInrIy, KozInskI nnd Innnor hnvo nrguod fhnf In n froo
mnrkof oconomy, fho nbIIIfy fo gIvo nnd rocoIvo InformnfIon nbouf commorcInI
mnffors mny bo ns Imorfnnf, somofImos moro Imorfnnf, fhnn oxrossIon of n
oIIfIcnI, nrfIsfIc, or roIIgIous nnfuro. KozInskI & Innnor, $4;#- nofo 22, nf
652.
2?<& /-<&,F-#(-5.&G+<, 425 !.S. nf ?65.
28. 44? !.S. 55? (l980).
29. Conf. Hudson Cns & IIoc. Cor< v. Iub. Sorv. Comm`n of .Y., 44? !.S.
55? (l980).
THII!I! IIA! 5/26/20ll l2:l5 IM
CHA!!ISTO !AW !IVIIW |VoIumo 5
5l0
|W]o musf doformIno whofhor fho oxrossIon Is rofocfod by
fho IIrsf Amondmonf. Ior commorcInI sooch fo como wIfhIn
fhnf rovIsIon, If nf Ionsf musf concorn InwfuI ncfIvIfy nnd
nof bo mIsIondIng. oxf, wo nsk whofhor fho nssorfod
govornmonfnI Inforosf Is subsfnnfInI. If bofh InquIrIos yIoId
osIfIvo nnswors, wo musf doformIno whofhor fho roguInfIon
dIrocfIy ndvnncos fho govornmonfnI Inforosf nssorfod, nnd
whofhor If Is nof moro oxfonsIvo fhnn Is nocossnry fo sorvo fhnf
Inforosf.
30
ModIn InsfIfufo schoInr !Ichnrd T. KnInr nofos fhnf, whon
vIowod hoIIsfIcnIIy, fho Courf`s roconf commorcInI sooch
jurIsrudonco cnn bo summnrIzod wIfh fho foIIowIng syIIogIsm:
IconomIc concorns nro ns Imorfnnf fo our socIofy ns oIIfIcnI
concorns. Iy oxfonsIon, oconomIc InformnfIon Is ns Imorfnnf
ns oIIfIcnI InformnfIon. IoIIfIcnI InformnfIon rocoIvos fuII
IIrsf Amondmonf rofocfIon. Thoroforo, oconomIc InformnfIon
shouId rocoIvo fuII IIrsf Amondmonf rofocfIon.
3l
TrufhfuI sooch nbouf InwfuI roducfs nnd sorvIcos
dosorvo|s] fuII IIrsf Amondmonf rofocfIon,
32
KnIor concIudos.
ThIs Is n sImIo roosIfIon, buf Ifs ImIIcnfIons for froodom of
sooch oxfond fnr boyond ndvorfIsIng.
33
Indood, unIIko Ifs onrIIor
jurIsrudonco, fho Courf`s moro roconf nronch nssumos nof
onIy fhnf commorcInI sooch convoys Imorfnnf InformnfIon, buf
fhnf fho ubIIc Is gonornIIy boffor osIfIonod fo judgo Ifs
undorIyIng worfh fo socIofy. As fho Courf hoId In !"#$%& '(& )#"#$&
!"*&+,&-*./+0"
34
:
Tho nIfornnfIvofho rohIbIfIon of ndvorfIsIngsorvos onIy fo
rosfrIcf fho InformnfIon fhnf fIows fo consumors. Moroovor, fho
nrgumonf nssumos fhnf fho ubIIc Is nof sohIsfIcnfod onough
fo ronIIzo fho IImIfnfIons of ndvorfIsIng, nnd fhnf fho ubIIc Is
boffor kof In Ignornnco fhnn frusfod wIfh corrocf buf
30(& 12(&nf 566.
3l. !ICHA! T. KAI!A!, AVI!TISIC !ICHTS: THI IC!ICTI I!IIOM 60
(Tho ModIn InsfIfufo, l99l).
32(& 12(
33(& 12( nf ?l; %$$& "3%+ Jonnfhnn W. Imord, 4+0#*.'$2& 5.%#.06#.+0%7& 89$&
5+6#*.0$&+,&4+::$*6."3&);$$69&.0&<.*%#&-:$02:$0#&=>*.%;*>2$06$, CATO IO!`Y
AA!YSIS O. l6l (Sof. 23, l99l), www.cnfo.org/ubs/ns/n-l6l.hfmI.
34. 433 !.S. 350 (l9??).
THII!I! IIA! 5/26/20ll l2:l5 IM
20ll] !"#$%&'()*+()*%&,-#"%.
5ll
IncomIofo InformnfIon. Wo susocf fho nrgumonf rosfs on nn
undorosfImnfIon of fho ubIIc. In nny ovonf, wo vIow ns
dubIous nny jusfIfIcnfIon fhnf Is bnsod on fho bonofIfs of ubIIc
Ignornnco.
35
I. Mnrkof & ComofIfIvo Iffocfs
AdvorfIsIng nIso koos mnrkofs comofIfIvo by kooIng
comofIfors on fhoIr foos nnd forcIng fhom fo consfnnfIy rosond
fo chnIIongos by rIvnIs who nro offorIng boffor or chonor
sorvIcos. ThIs onsuros consumors hnvo moro choIcos nf fhoIr
dIsosnI. Tho froodom fo ndvorfIso oncourngos busInossos fo
cronfo now brnnds nnd Imrovo oId onos, nrguos WIIIInm I.
Arons, nufhor of /0*%)(10#-#.& '+2)#%"$"*34
36
Moro ImorfnnfIy,
ho nofos If romofos fho oxIsfonco of moro soIIors, nnd fhnf gIvos
consumors wIdor choIcos.
3?
Confrnry fo fho nrgumonf fhnf
ndvorfIsIng wnsfos rosourcos, nrguos nvId C. Tuorck, If
oxnnds snIos by nffrncfIng nddIfIonnI consumors nnd roducors
Info fho mnrkof.
38
As n rosuIf, ndvorfIsIng hoIs koo rIcos Iow (or ovon nf
zoro) for mnny goods nnd sorvIcos, osocInIIy modIn nnd
onforfnInmonf offorIngs.
39
In 5-%)$, fho Suromo Courf
ncknowIodgod fho Imorfnnco of commorcInI sooch fo fho froo
mnrkof oconomy, nofIng: |C]ommorcInI sooch sorvos fo Inform
fho ubIIc of fho nvnIInbIIIfy, nnfuro, nnd rIcos of roducfs nnd
sorvIcos, nnd fhus orforms nn IndIsonsnbIo roIo In fho
nIIocnfIon of rosourcos In n froo onforrIso sysfom. In shorf, such
sooch sorvos IndIvIdunI nnd socIofnI Inforosfs In nssurIng
Informod nnd roIInbIo docIsIon mnkIng.
40
Moroovor, fho ro-comofIfIvo offocfs nssocInfod wIfh
commorcInI sooch nro sIgnIfIcnnf onough fhnf fho Courf hns
35. Infos v. Sfnfo Inr of ArIz., 433 !.S. 350, 3?4?5 (l9??).
36. WI!!IAMI. A!IS, COTIMIO!A!Y AVI!TISIC 6l (l0fh od., 2006).
3?4& 6+.
38. nvId C. Tuorck, 6*%#0+78%"0* fo AM. ITI!. IST. IO! I!I. IO!`Y
!ISIA!CH, ISS!IS I AVI!TISIC: THI ICOOMICS OI II!S!ASIO l, 8 (nvId C.
Tuorck od., l9?8).
394& 9))&A!IS, $71#- nofo 36, nf 60 (Iofh fho IodornI Trndo CommIssIon
nnd fho Suromo Courf hnvo ruIod fhnf, by oncourngIng comofIfIon,
ndvorfIsIng hns fho offocf of kooIng rIcos down.).
404& 5-%)$, 433 !.S. nf 364 (cIfnfIon omIffod).
THII!I! IIA! 5/26/20ll l2:l5 IM
CHA!!ISTO !AW !IVIIW |VoIumo 5
5l2
sfornIy wnrnod wouId-bo roguInfors fhnf fhoy bonr n hIgh
sfnndnrd of roof whon sookIng fo rosfrIcf commorcInI sooch. As
fho Courf nofod In !"#$%&%&' ()' *++,-%' .+' /,0-,12,3"&4' 5.#30%2,
4l
Our roconf docIsIons InvoIvIng commorcInI sooch hnvo boon
groundod In fho fnIfh fhnf fho froo fIow of commorcInI
InformnfIon Is vnIunbIo onough fo jusfIfy ImosIng on wouId-bo
roguInfors fho cosfs of dIsfInguIshIng fho frufhfuI from fho fnIso,
fho hoIfuI from fho mIsIondIng, nnd fho hnrmIoss from fho
hnrmfuI.
42
AccordIngIy, bocnuso of fhIs hIghor jurIsrudonfInI bnr,
rosfrIcfIons on commorcInI sooch musf bo groundod In n
subsfnnfIvo, omIrIcnI showIng of hnrm, nof moroIy conjocfurnI
hnrms such ns cInIms of nnnoynnco or unonso. 'Moro
socuInfIon or conjocfuro` wIII nof suffIco, fho Suromo Courf
nofod In l994, rnfhor fho Sfnfo 'musf domonsfrnfo fhnf fho
hnrms If rocIfos nro ronI nnd fhnf Ifs rosfrIcfIon wIII In fncf
nIIovInfo fhom fo n mnforInI dogroo.`
43
C. ModIn IromofIon & Confonf Cross-SubsIdIznfIon
IInnIIy, ndvorfIsIng bonofIfs socIofy by subsIdIzIng fho
cronfIon of nows, InformnfIon, nnd onforfnInmonf. AdvorfIsors
nro crIfIcnI fo fho succoss of commorcInI modIn bocnuso fhoy
rovIdo fho rImnry rovonuo sfronm fhnf koos mosf of fhom
vInbIo, nrguos !oborf C. IIcnrd)
44
Mnry AIIco Shnvor of fho
!nIvorsIfy of ConfrnI IIorIdn ufs fhIs suorf In confoxf:
AdvorfIsIng rovonuos ny for vIrfunIIy nII brondcnsf modIn, ?0
fo 80 of suorf for nowsnors nnd nn oqunIIy hIgh orconfngo
for mngnzInos.
45
4l. 4?l !.S. 626 (l985).
42. Znudoror v. OffIco of IscIIInnry CounsoI, 4?l !.S. 626, 646 (l985).
43. Ibnnoz v. IIn. o`f of Ius. & Irof`I !oguInfIon, Id. of Accounfnncy,
5l2 !.S. l36, l43 (l994) (quofIng IdonfIoId v. Inno, 50? !.S. ?6l, ??0?l
(l993)).
44. !OII!T C. IICA!, THI ICOOMICS A IIACIC OI MIIA
COMIAIIS l22 (Ius., Icon., & !ognI SfudIos Sor. o. l, 2002).
45. Mnry AIIco Shnvor, 67%' 8-.3.9,-0' .+' :7%' ;$(%&:,0,3<' =3$#0:&4, ,3'
MIIA ICOOMICS: THIO!Y A I!ACTICI 250 (AIIson AIoxnndor, of. nI. ods., 3d
od. 2004).
THII!I! IIA! 5/26/20ll l2:l5 IM
20ll] !"#$%&'()*+()*%&,-#"%.
5l3
AdvorfIsIng Is rovIng IncronsIngIy fo bo fho onIy modIn
Indusfry busInoss modoI wIfh nny ronI sfnyIng owor for mnny
commorcInI modIn nnd InformnfIon-roducIng socfors. Iny-or-
vIow mochnnIsms, mIcronymonfs, nnd ovon subscrIfIon-bnsod
busInoss modoIs nro nII InnguIshIng.
46
ConsoquonfIy, fho ovornII
honIfh of fho modorn modIn mnrkofInco nnd fho dIgIfnI
oconomynnd fho nggrognfo nmounf of InformnfIon nnd sooch
fhnf cnn bo roducod or suorfod by fhoso socforsIs
fundnmonfnIIy fIod u wIfh fho quosfIon of whofhor oIIcymnkors
nIIow fho ndvorfIsIng mnrkofInco fo ovoIvo In nn offIcIonf,
dynnmIc fnshIon.
4?
In fhIs sonso, If Is nof hyorboIo fo sny fhnf nn
nffnck on ndvorfIsIng Is fnnfnmounf fo nn nffnck on modIn
IfsoIf.
48
IncronsIngIy, howovor, consumors nro showIng n sfrong
roforonco for ndvorfIsIng-suorfod confonf nnd sorvIcos,
osocInIIy onIIno whoro froo Is fho ordor of fho dny.
49
Of courso,
fho froo busInoss modoI rodnfod fho Infornof In fho form of
ndvorfIsIng-suorfod ovor-fho-nIr TV nnd rndIo brondcnsfs nnd
Iow-cosf dnIIy nowsnors. WIfhouf fho cross-subsIdy fhnf
ndvorfIsIng rovIdod, fhoso modIn oufIofs wouId hnvo hnd fo
46. To somo oxfonf, fhoso nro nII jusf vnrInfIons of n foo-for-sorvIco
busInoss modoI. MIcronymonfs, for oxnmIo, wouId roquIro n smnII nymonf
for onch modIn unIf nccossod or downIondod, such ns $l or nows nrfIcIo or song.
/)) MIcronymonfs, I!SIISS ICTIOA!Y, hff://www.busInossdIcfIonnry.com/
dofInIfIon/mIcronymonf.hfmI (Insf vIsIfod Mnr. 28, 20ll).
4?. !A!!Y OWIS, THI !AWS OI IS!!ITIO: HA!ISSIC THI IW IO!CIS
THAT COVI! !III A I!SIISS I THI ICITA! ACI 8384 (2009) (Much of fho
vnIunbIo InformnfIon confonf nvnIInbIo on fho Infornof, nnd so mnny of fho
usofuI sorvIcos wo uso ovory dny, Is froo . . . . of bocnuso of somo ufoInn
dronm of Invonfors or ovon bocnuso of fho romnrknbIy Iow frnnsncfIon cosfs of
fho dIgIfnI oconomy. Tho confonf Is froo bocnuso fho cosfs of fho sorvIcosbIogs,
sfock quofos, ovon homo movIos osfod on YouTubonro undorwrIffon by
ndvorfIsors. If wo don`f rond nnd rosond fo nds, wo`II hnvo fo ny for fhoso
sorvIcos somo ofhor wny.).
480& /)) Adnm ThIoror of nI., THI I!OC!ISS & I!IIOM IO!., COMMITS
I THI MATTI! OI THI III!A! COMM!ICATIOS COMMISSIO`S IXAMIATIO OI
THI I!T!!I OI MIIA A IIO!MATIO IIS OI COMM!ITIIS I A
ICITA! ACI (20l0), hff://www.ff.org/Issuos-ubs/fosfImony/20l0/20l0-05-05-
Commonfs_In_ICC_Iufuro_of_ModIn_rocoodIng.df (rosondIng fo ofIco of
InquIry).
490& /))1& )020, ChrIs Andorson, !#))3& 45.& 67077& 8$& %5)& !9%9#)& :;& <9$"*)$$,
WI!I (Iob. 25, 2008), hff://www.wIrod.com/fochbIz/If/mngnzIno/l6-03/ff_froo.
THII!I! IIA! 5/26/20ll l2:l5 IM
CHA!!ISTO !AW !IVIIW |VoIumo 5
5l4
chnrgo sIgnIfIcnnf sums for fho InformnfIon nnd onforfnInmonf
fhoy mndo nvnIInbIo fo fho ubIIc.
ThIs rnIsos nnofhor undor-nrocInfod oInf: AdvorfIsIng
hoIs romofo modIn Indoondonco. As Arons rIghfIy nofos,
ndvorfIsIng fncIIIfnfos froodom of fho ross nnd romofos moro
comIofo InformnfIon.
50
AIfhough ndvorfIsIng wns rosonf ovon
In fho onrIIosf dnys of fho AmorIcnn roubIIc, durIng fho coIonInI
orIod rIvnfo confrIbufIons, subscrIfIons, or oIIfIcnI nrfIos
suorfod mosf nowsnors, nofos Anfhony !. IoIIow, nufhor of
!"#$%&'() *#+%') ,%-./$01
5l
Ovor fImo, howovor, ndvorfIsIng
hoIod IIbornfo modIn oornfors from mosf ubIIc nnd rIvnfo
nfronngo nnd InfIuonco. CommonfIng on fho Imorfnnco of
ndvorfIsIng fo journnIIsm Iogonds such ns Josoh IuIIfzor nnd
WIIIInm AIIon WhIfo, modIn hIsforInn InuI Sfnrr, nufhor of 23#)
4$#'.%/() /5) .3#) *#+%', snys jusf ns nbundnnf ndvorfIsIng gnvo
IuIIfzor fho Indoondonco fo crIfIcIzo corornfo ns woII ns
govornmonfnI nbusos, so If nIso gnvo WhIfo fho mnforInI bnsIs
for hIs odIforInI Indoondonco.
52
Sfnrr concIudos fhnf, for
nowsnor rovIdors Inrgo nnd smnII nIIko, fho IncronsIngIy
sfrong commorcInI foundnfIon of journnIIsm bocnmo n bnsIs of
Indoondonf owor nnd InfIuonco, IocnIIy ns woII ns nnfIonnIIy.
53
III. THI I!ACTICA! CASI ACAIST IW COMMI!CIA!
SIIICH !IST!ICTIOS
WhIIo If Is unIIkoIy fhnf fho curronf cnmnIgns ngnInsf
ndvorfIsIng nnd mnrkofIng wIII dIssInfo nnyfImo soon,
roononfs of sfood-u roguInfIon of commorcInI sooch bonr
bofh n 6$%(&%67#+ nnd 6$'&.%&'7) burdon whon ndvnncIng such
roosnIs.
Tho rncfIcnI cnso ngnInsf Incronsod roguInfIon fIows from
fho dIscussIon of bonofIfs IfomIzod nbovo. A ronowod roguInfory
crusndo ngnInsf ndvorfIsIng nnd mnrkofIng offorfs wIII hurf
consumor woIfnro sInco If wIII IIkoIy rnIso rIcos, rosfrIcf choIco,
50. A!IS, -86$')nofo 36, nf 50.
5l. ATHOY !. II!!OW, AMI!ICA MIIA HISTO!Y 3l5 (2005).
52. IA!! STA!!, THI C!IATIO OI MIIA: IO!ITICA! O!ICIS OI MOI!
COMM!ICATIO 26364 (2004).
531) 9+1)nf 264.
THII!I! IIA! 5/26/20ll l2:l5 IM
20ll] !"#$%&'()*+()*%&,-#"%.
5l5
nnd dImInIsh mnrkofInco comofIfIon nnd InnovnfIonbofh In
nd-suorfod confonf nnd sorvIco mnrkofs nnd fhroughouf fho
oconomy nf Inrgo. In nrfIcuInr, roguInfory ndvocnfos musf
oxInIn how fho confonf nnd sorvIcos curronfIy suorfod by
ndvorfIsIng nnd mnrkofIng wIII bo ossIbIo If fhoso fochnIquos
nro chokod off.
Af n mInImum, roononfs of commorcInI sooch rosfrIcfIons
shouId bo roquIrod fo rovIdo n sfrIcf cosf-bonofIf nnnIysIs of fho
rosfrIcfIons fhoy rooso. !oguInfIon Is nof n cosfIoss oxorcIso.
SImIy sfnfod, fhoro Is no froo Iunch. SomofhIng musf susfnIn
fhnf confonf nnd cuIfuro nnd, IncronsIngIy, fhnf somofhIng Is
ndvorfIsIng. ThIs Is oqunIIy fruo for frndIfIonnI nnnIog orn
modIn confonf nnd for nowor dIgIfnI nnd onIIno offorIngs.
ImorfnnfIy, fho hnrm crIfIcs cInIm ndvorfIsIng or
mnrkofIng offorfs gIvo rIso fo musf bo concrofo, nof moroIy
conjocfurnI. Ior oxnmIo, fho curronf dobnfo ovor onIIno
ndvorfIsIng roguInfIon Is fundnmonfnIIy fIod u wIfh concorns
nbouf orsonnI rIvncy. If goos wIfhouf snyIng, howovor, fhnf
rIvncy Is n hIghIy subjocfIvo
54
nnd ovor-chnngIng condIfIon.
55
54/& 0))&!nrry ownos, '&1-#2)%&'33#4-56&%4&,#"7-5.&,48"5., "* THI IXT
ICITA! ICAI: ISSAYS O THI I!T!!I OI THI ITI!IT 5l4 (IorIn Szokn
& Adnm Mnrcus ods., 20l0), -7-"8-98)& -%& hff://noxfdIgIfnIdocndo.com/
ndd_book.df#ngo=5l0 (In mosf convorsnfIons, no ono knows whnf nnyono
oIso monns by 'rIvncy,` or whnf InformnfIon Is IncIudod In fho form 'orsonnIIy-
IdonfIfInbIo InformnfIon.`); AVI I!I, THI T!ASIA!IT SOCIITY: WI!!
SOCIITY IO!CI !S TO CHOOSI IITWII I!IVACY A I!IIOM ?? (l998)
(Whon If comos fo rIvncy, fhoro nro mnny InducfIvo ruIos, buf vory fow
unIvorsnIIy nccofod nxIoms.); Iofsy MnsIoIIo, :)54*$%#;5%"*<& %6)& ,#"7-5.&
=>3)#")*5), IIII SIC!!ITY & I!IVACY, JuIy/Aug. 2009, nf ?0 (On fho socInI
Wob, rIvncy Is n gIobnI nnd onfIroIy subjocfIvo qunIIfywo onch orcoIvo
dIfforonf fhronfs fo If.); JIm Hnror, ?*+)#$%-*+"*<& ,#"7-5.@-*+& %6)& A)-8&
B6#)-%$& %4& C%, CATO IO!`Y AA!YSIS 520 (Aug. 4, 2004), -7-"8-98)& -%
www.cnfo.org/ub_dIsIny.hub_Id=l652 (IroorIy dofInod, rIvncy Is fho
subjocfIvo condIfIon ooIo oxorIonco whon fhoy hnvo owor fo confroI
InformnfIon nbouf fhomsoIvos.); MICHAI! II!TIK, !II!TATIO.COM,
IC., COMMITS TO THI !.S. IIA!TMIT OI COMMI!CI l3
(Jnn. 28, 20ll), hff://www.roufnfIon.com/bIog/20ll/0l/3l/roufnfIon-com-
commonfs-commorco-donrfmonf-rIvncy-groon-nor (IrIvncy Is n mnffor of
fnsfo nnd IndIvIdunI choIco.).
55/& 0))& HA! AII!SO, IT A!., I!OW TO IITS: YO!! !III, !III!TY, A
HAIIIISS AITI! THI ICITA! IXI!OSIO 68 (2008) (Tho monnIng of rIvncy
hns chnngod, nnd wo do nof hnvo n good wny of doscrIbIng If. If Is nof fho rIghf
fo bo Ioff nIono, bocnuso nof ovon fho mosf oxfromo monsuros wIII dIsconnocf
THII!I! IIA! 5/26/20ll l2:l5 IM
CHA!!ISTO !AW !IVIIW |VoIumo 5
5l6
Iuf whnf mnkos fho cnso for roguInfIon ovon moro susocf Is fhnf
fho hnrm mnny rIvncy ndvocnfos cIfo In dofonso of roguInfIon Is
fho crooInoss fncfor nssocInfod wIfh onIIno dnfn coIIocfIon nnd
fnrgofod ndvorfIsIng.
Iuf cronfIng now rIvncy rIghfs cnnnof bo jusfIfIod sImIy
bocnuso ooIo fooI vnguo unonso, nofos SoIvoIg SIngIofon,
formorIy of fho Cnfo InsfIfufo.
56
If hnrm Is roducod fo
crooInoss or ovon nnnoynnco nnd unwnnfod soIIcIfnfIons ns
somo ndvocnfo,
5?
If rnIsos fho quosfIon whofhor fho commorcInI
Infornof ns wo know If cnn confInuo fo oxIsf. Such nn nmorhous
sfnndnrd Ionvos much fo fho ImngInnfIon nnd oons fho door fo
cronfIvo fhoorIos of hnrm fhnf nro suro fo bo oxIoIfod. In such n
rogImo, hnrm bocomos hIghIy conjocfurnI Insfond of concrofo.
ThIs mnkos crodIbIo cosf-bonofIf nnnIysIs vIrfunIIy ImossIbIo
sInco fho dobnfo bocomos uroIy nbouf omofIon Insfond of
nnyfhIng omIrIcnI.
In fhIs nnd ofhor cnsos whoro commorcInI sooch rosfrIcfIons
nro boIng consIdorod, oIIcymnkors musf nvoId unfofhorIng
roguInfIon from n hnrms-bnsod nnnIysIs whIch fosfs whofhor
concrofo, fnngIbIo hnrms oxIsf nnd fhon woIghs fho bonofIfs of
roguInfIon ngnInsf Ifs cosfs.
IV. THI I!ICII!I CASI: TOWA! II!ST AMIMIT
IA!ITY IO! COMMI!CIA! SIIICH
IInnIIy, ns n normnfIvo mnffor, commorcInI sooch !" n form
of sooch, nnd roguInfory ndvocnfos musf oxInIn why sfrIcf IIrsf
Amondmonf scrufIny shouId nof nIy fo nny roosod
rosfrIcfIons. ImorfnnfIy, commorcInI sooch Is nIso nof nIwnys
onsIIy dIsfInguIshnbIo from non-commorcInI or oIIfIcnI sooch,
rnIsIng nddIfIonnI IIrsf Amondmonf concorns. Jonnfhnn Imord
hns nofod, nII sooch comos InoxfrIcnbIy InforfwInod wIfh
our dIgIfnI soIvos from fho rosf of fho worId. If Is nof fho rIghf fo koo our
rIvnfo InformnfIon fo oursoIvos, bocnuso fho bIIIIons of nfomIc fncfoIds don`f
nny moro Iond fhomsoIvos Info bInnry cInssIfIcnfIon, rIvnfo or ubIIc.).
56. SoIvoIg SIngIofon, #$!%&'()&")*+,"-$".!/0)1)23+/4!'&5)6!+7)-8)#$-/-"&5")
4-) 9+:;5&4+) #$!%&'() !,) 4.+) #$!%&4+) 2+'4-$, CATO IO!`Y AA!YSIS O. 2958 (Jnn.
22, l998), hff://www.cnfo.org/ubs/ns/n-295.hfmI.
5?<) =>. nf l920.
THII!I! IIA! 5/26/20ll l2:l5 IM
20ll] !"#$%&'()*+()*%&,-#"%.
5l?
commorcInI nnd noncommorcInI oIomonfs fhnf boIIo nny offorf fo
dIsfInguIsh oconomIcnIIy mofIvnfod or roInfod sooch from nII
ofhor sooch. AImosf nII orsunsIvo sooch confnIns
InformnfIonnI comononfs fhnf nro roInfod fo oconomIc
mnffors.
58
If you fhInk cnrofuIIy onough, you cnn fInd n
commorcInI nsocf fo nImosf nny fIrsf nmondmonf cnso, concIudo
KozInskI nnd Innnor.
59
Todny`s rofocfod oxrossIon mny
bocomo fomorrow`s commorcInI sooch.
60
Indood, modorn ndvorfIsIng Is offon rosonfod ns n form of
onforfnInmonf In Ifs own rIghf. Ior oxnmIo, In 200l-02,
Cormnn nufomobIIo mnnufncfuror IMW hIrod sovornI fnmous
movIo dIrocforsIncIudIng Ang !oo, John Woo, John
IrnnkonhoImor, Tony Scoff, nnd ofhorsfo fIIm n sorIos of oIghf
shorf fIIms cnIIod Tho HIro, sfnrrIng IrIfIsh ncfor CIIvo Owon.
6l
Tho cIIs, whIch fonfurod vnrIous IMW nufomobIIos, bocnmo nn
Infornof nnd V sonsnfIon nnd snwnod sovornI ImIfnfors.
62
Of
courso, roducf Incomonf hns boon n Iong-sfnndIng fonfuro of
foIovIsIon nnd mofIon Icfuros, buf whon commorcInI mossngos
nro Infogrnfod Info fho sforyIInos of onforfnInmonf roducfs In
fhIs fnshIon, If bogs fho quosfIon whofhor vnryIng IovoIs of IIrsf
Amondmonf scrufIny mnko sonso. If fhoso oIghf shorf IMW fIIms
hnd boon roducod for wIdosrond cInomnfIc roIonso, fhoro wouId
bo no quosfIon fhnf sfrIcf scrufIny wouId nIy fo nny offorfs fo
roguInfo fhom. Why shouId Iowor scrufIny bo nIIod sImIy
bocnuso fho fIIms woro roducod nf fho roquosf of nn nufomobIIo
mnnufncfuror fo showcnso fhoIr now roducfs And whnf nbouf
foIovIsIon shows or movIos fhnf nro ossonfInIIy ono mnssIvo
roducf Incomonf vohIcIo, such ns /010&23)&or&4#-*$53#()#$
ComIIcnfIng mnffors furfhor Is fho fncf fhnf modorn
ndvorfIsIng nnd mnrkofIng offorfs nro IncronsIngIy InforncfIvo
nnd oncourngo fho nudIonco fo Iny n roIo In fnIIorIng fho
undorIyIng commorcInI mossngo. Ior oxnmIo, durIng fho
58. Imord, $67#-&nofo 33, nf 2.
59. KozInskI nnd Innnor, $67#-&nofo 22, nf 653.
600& 1+.
6l0& 48& 9& :);& <)+"-=& ><?& !"@($,hff://www.bmwusn.com/Sfnndnrd/
Confonf/!nIquoIy/TVAndowModIn/IMWIIIms.nsx (Insf vIsIfod Mnr. 26,
20ll).
620& A))&"+.
THII!I! IIA! 5/26/20ll l2:l5 IM
CHA!!ISTO !AW !IVIIW |VoIumo 5
5l8
summor of 20l0, OId SIco dovoIood nn InnovnfIvo ndvorfIsIng
cnmnIgn fhnf InvoIvod nn ncfor shoofIng ovor l50 vIdoos for fho
comnny`s body wnsh roducf
63
fhnf rosondod dIrocfIy fo
quosfIons from TwIffor, Incobook, nnd ofhor socInI modIn sIfos.
64
Mnny comnnIos now fn fho owor of onIIno Infforms, socInI
modIn, nnd vIdoo gnmos fo oncourngo dIrocf nudIonco InforncfIon
wIfh, nnd ovon cronfIon of, nds or sIognns. Ono romInonf
oxnmIo InvoIvos orIfos forfIIIn chIs. SInco 2006, orIfos hns
conducfod n Crnsh fho Suor IowI confosf InvIfIng consumors
fo roduco nds nbouf fho chIs fhnf nro fhon vofod on by fho
ubIIc.
65
WInnIng submIssIons nro nIrod durIng fho Suor IowI.
66
SonrnfIng commorcInI from non-commorcInI sooch In
such oxnmIos cnn bo chnIIongIng, nnd fhIs robIom Is onIy IIkoIy
fo grow ns fho voIumo of usor-gonornfod confonf nvnIInbIo onIIno
from ncross fho gIobo confInuos fo grow.
6?
!nfhor fhnn
confInuIng down fhIs rond, nrguo KozInskI nnd Innnor, wo
shouId consIdor how fho worId wouId Iook If wo sfood mnkIng
fho dIsfIncfIon bofwoon commorcInI nnd noncommorcInI
sooch.
68
Tho rIncIIod cnso ngnInsf commorcInI sooch
roguInfIon IIos In fho fncf fhnf, ns Imord hns nrguod, Tho IIrsf
Amondmonf . . . Is nof n cnfnIoguo of fnvorod nnd dIsfnvorod
forms of sooch. If Is by no monns n vohIcIo for rondorIng n
rojudIco ngnInsf rofIf-mofIvnfod sooch fho suromo Inw of fho
63. AII of OId SIco`s ndvorfIsomonfs nro osfod on Ifs YouTubo chnnnoI.
!""# $%&# !'()"*+# ,-.//"%, YO!T!II, hff://www.youfubo.com/oIdsIco (Insf
vIsIfod Mnr. 23, 20ll).
640# !"" Kon Iruno, $%&# !'()"# 1(2"+# !3)(.%# 1"&(.# ./&# 4"5# 6&+, IO!IIS
(JuIy l5, 20l0, 3:55 IM), hff://www.forbos.com/20l0/0?/l5/oId-sIco-youfubo-
rocfor-gnmbIo-fwIffor-fncobook-cmo-nofwork-socInI-modIn-ndvorfIsIng.hfmI;
Sfnn Schroodor, $%&# !'()"7# 8-"# 69)-":;'"# 3<# .# !=))"++<=%# !3)(.%# 1"&(.#
,.>'.(?/, MASHAI!I (JuIy l5, 20l0), hff://mnshnbIo.com/20l0/0?/l5/oId-sIco-
socInI-modIn-cnmnIgn/.
650# ,3/:"+:# @/<3, C!ASH THI S!II!IOW!, hff://www.crnshfhosuorbowI.
com (Insf vIsIfod Mnr. 23, 20ll).
66. M. InmIoh, ,9.+-# :-"# !='"953A%# A(:-# B"'+(# ./&# C39(:3+, THO!CHT
IICK (Iob. 8, 20ll), hff://bIog.fhoughfIck.com/20ll/02/crnsh-fho-suorbowI-
wIfh-osI-nnd-dorIfos-3.hfmI.
6?. Adnm ThIoror, B9(D.);# .+# ./# @/<39>.:(3/# ,3/:93%# E"?(>"7##################
8-"# ,-.%%"/?"+# 6-".&, TICH. !III!ATIO I!OT (ov. l3, 20l0),
hff://fochIIbornfIon.com/20l0/ll/l3/rIvncy-ns-nn-InformnfIon-confroI-rogImo-
fho-chnIIongos-nhond.
68. KozInskI & Innnor, +='9. nofo 22, nf 650.
THII!I! IIA! 5/26/20ll l2:l5 IM
20ll] !"#$%&'()*+()*%&,-#"%.
5l9
Innd.
69
A froo socIofy wouId bo boffor sorvod by sfrIvIng fo
nchIovo IIrsf Amondmonf nrIfy nmong forms of sooch fhnf nro
occnsIonnIIy fronfod nsymmofrIcnIIy fhrough such nrfIfIcInI,
IIIogIcnI, nnd IncronsIngIy unonforconbIo dIsfIncfIons.
69. Imord, $/0#-&nofo 33, nf 46.