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Nike Denied First Amendment Defense

Several people have written in about an interesting decision handed down by the California Supreme Court. Nike, which has been repeatedly criticized for sweatshop practices in its contractors' factories, has made a variety of statements to the press contradicting these allegations (although in general, third-party examinations find them to be substantiated). A lawsuit was filed, charging the company with deceptive advertising under California law, and Nike was accused of trying to greenwash its image. Nike claimed that the First Amendment prevented it from being sued for these statements. The first courts to look at the case agreed with Nike; the California Supreme Court agreed with the plaintiffs and allowed the suit to proceed. (See also Nike's press release.) There are all sorts of interesting issues raised concerning corporate and commercial speech, the protection it has/ought to have, etc. There's a law.com article that goes a little more into the legal issues.

12 of 371 comments (clear)

  1. Fraud is Illegal by ari_j · · Score: 5, Informative

    There are certain types of speech specifically exempted from First Amendment protection by the courts. Libel, slander, and corporate fraud are among these.

  2. SEC filings by Sabalon · · Score: 5, Funny

    I can just see it now. Our filings on our third quarter profit, while exagerated 300% is protected by the 1st ammendment.

  3. Beginning of the end? by 1010011010 · · Score: 5, Interesting

    Maybe this heralds the beginning of the end of Constitutional Rights for Legal Fictions -- that whole Santa Clara County v. Southern Pacific Railroad Company / 14th Amendment debacle.

    (Historical Information)

    --
    Napster-to-go says "Fill and refill your compatible MP3 player", which is a lie. It's not MP3. It's WMA with DRM.
  4. Can you say "double standard"? by phillymjs · · Score: 5, Insightful

    So, let's see... when Nike misrepresents itself to the public about how it really abuses human rights according to its own internal audit, they say that that's just them exercising free speech.

    But just try to exercise your constitutional right of free speech by creating a website critical of Nike (or most other megacorporations, these days), and their lawyers will try and in most cases succeed at crushing you, leaving nothing but a smoking crater in their wake.

    I guess in addition to yelling "Fire!" in a theater full of people, it's also wrong to yell "Sweatshop!" in a factory in Thailand full of orphans sewing the "Swoosh" on shitty sneakers at midnight. :-)

    On the plus side, at least I don't have to change my spending habits-- since I prefer plain, black sneakers and Nike only sells shoes that, if they were cars, would have been driven by pimps in the 70's.

    ~Philly

  5. Am I the only person who thinks this is normal by JonK · · Score: 5, Informative

    Maybe I'm misreading something but as far as I could tell from the articles linked, Nike got slapped down for issuing advertising which was untrue. Well, d'oh.

    In Britain, at least, the Advertising Standards Authority exists to ensure, among other things, that advertisments are truthful: surely this is a basic requirement - otherwise we end up with "Smoke Ciggies - They're Good For You". I fail to see how the First Amendment should guarantee a corporation's right to lie to the public in its advertising - this seems to be even more of a perversion of First Amendment rights than most.

    So, is there something I'm missing, or was Nike's case really "We can say what we like with no respect to truth because the First guarantees our right to lie to Joe Public"? If so, then they should have been slapped down, and hard.

    --
    Cheers

    Jon
  6. Out of touch judges by DNS-and-BIND · · Score: 5, Insightful
    One of the judges that wanted Nike to win said,
    "Nike's speech, in an attempt to influence public opinion on economic globalization and international labor rights and working conditions, gave the public insight and perspective into the debate. This speech should be fully protected as 'essential to free government.'"
    Let me get this straight, Nike issues statements denying it runs sweatshops because it wants to contribute to some kind of public debate!? Nike's one and only consideration is maximizing profits, nothing more. The judges were right, it's commercial speech.
    --
    Shutting down free speech with violence isn't fighting fascism. It IS fascism!
  7. Why do corps have freedom of speech at all? by rkent · · Score: 5, Interesting

    "What this decision means," she added, "is that one side of the debate gets full free speech protection, but a corporation trying to defend itself is subject to strict liability."

    Well, good. That's an "inbalance" I can live with. Remember, the topic here is whether or not people are being subjected to sweatshop conditions at Nike factories (or contracted facilities) overseas. Whether you think this is wrong or "it's better than whatever else they'd be doing," I think you're at least entitled to hear the truth about how frequent and how severe it is. Making a corporation responsible to tell the truth in that situation seems like a great idea.

    To me, the whole problem starts with "Santa Clara vs. Southern Pacific Railroad," in which the (US) Supreme Court ruled that a corporation is a natural person for the purposes of constitutional rights protections. Which I think is a crock. A corporation shouldn't be entitled to free speech under Article I because it's not a person. It's a legal abstraction.

    That said, I don't necessarily think that there should be severe limits on "corporate speech," but to protect them with the same constitutional power as a person creating an artwork or making a politcal protest... please. All corporate speech should be considered commercial speech and should be required, if nothing else, to be true.

  8. Good quote by interiot · · Score: 5, Insightful
    • "Full free speech protection for one side and strict liability for the other will hardly promote vigorous and meaningful debate."

    Exactly. When Nike said those things, they weren't directly describing a product they were selling. It was more of a debate.

    One could argue that such things may be black and white, so no debate is needed. But such issues never are. Sometimes issues can't be reduced to a simple one sentance soundbite. We've all seen news articles where a quote is taken out of context, allowing it mean sometime more sinister than the situation actually is, even though the brief statement may be literally true. In these cases, the accused should be able to elaborate on some of the details.

    However, if this ruling stands, special interest groups will be able to express any complaint they wish, and corporations will be more likely to just say "we can't confirm or deny that accusation" no matter how truthful or baseless the accusation is. This will make corporate secrecy even worse.

  9. Nike: The Great Defenders of the First Amendment? by pherris · · Score: 5, Informative

    Any remember Jonah Peretti? He was the guy who tried to get Nike to print "sweatshop" on his new Nike ID sneakers. When they said no he tried to get: Sweat Shop, Child Labor, ChildLabor, Exploit and Swetshop.

    Nike respects the first amendment like Enron respects their employees.

    pherris

    Check out:
    http://www.shey.net/niked.html
    http://www.s alon.com/people/cheapshots/2001/02/08/ artsfund/index2.html
    http://www.villagevoice.com/ issues/0107/jockbeat.p hp

    --
    "And a voice was screaming: 'Holy Jesus! What are these goddamn animals?'" - HST
  10. Re:more Evil than MS? by error0x100 · · Score: 5, Informative

    No, the big tobacco companies have had all of them beat for a long time now. Their products directly kill people.

    They've been trying for years to claim that there is no evidence that smoking causes diseases such as lung cancer, bringing in their own paid "scientists" into "debates" in an attempt to legitimize their "viewpoint". Now I suppose we're going to start hearing that they should be allowed to make such claims as a free speech issue.

    I remember when internal documents of a tobacco company were brought up in court stating that their primary market to advertise to to get new recruits was the "13 to 25" age group. Their defence? "Its a typo". Riiight. (Studies have shown that if you haven't started smoking by age 20, you're pretty much never going to start smoking).

    Philip Morris ("Phillip"?) recently published a report on the "indirect positive economic effects of early death". Thats sickening.

  11. Other corporate rights by IntelliTubbie · · Score: 5, Insightful
    To me, the whole problem starts with "Santa Clara vs. Southern Pacific Railroad," in which the (US) Supreme Court ruled that a corporation is a natural person for the purposes of constitutional rights protections. Which I think is a crock. A corporation shouldn't be entitled to free speech under Article I because it's not a person. It's a legal abstraction.

    Then I suppose you think corporations (including non-profit corporations, of course) should be denied:
    • the right to be free of religious persecution -- the government can freely discriminate against Jewish, or Muslim, or atheist corporations (1st amendment).
    • the right to be free from unreasonable search and seizure -- Uncle Sam can just walk into your small business without a warrant and take your stuff. (4th amendment)
    • the right to due process (5th) and speedy and public jury trials for criminal offenses (6th) -- the government can shut your business down without reason and without telling you what you've been charged with, and give you a secret trial or delay the trial indefinitely.

    It's easy to bash corporations (and good for a few karma points), but try to imagine a free society where the above situations are possible. Imagine what would happen not just to our economy, but to our society -- many charities and universities are non-profit corporations -- if these rights didn't exist.

    Remember, the Bill of Rights doesn't "give" rights to anyone -- it only prevents the government from taking them away.

    Cheers,
    IT
    --

    Power corrupts. PowerPoint corrupts absolutely.

  12. Disastrous boilerplate PR by hysterion · · Score: 5, Interesting
    "We believe significant progress has been made in our contract factories and that workers in those factories are better off today than they were in 1998 when this case was filed. (...) Nike's commitment to the continuous improvement of working conditions in our partner factories and rigorous implementation of all our corporate responsibility initiatives remains unchanged."
    Look! You thought you made us change, but not at all! Our commitment to change is unchanged !
    • Nike forbids child labor (...) meeting or in some cases, exceeding certain U.S. and international labor standards.
    Look! We're meeting certain international standards!
    • Nike pushed the envelope of corporate transparency by placing user-friendly information on it's Web site, www.nikebiz.com
    Look! We can't spell, either!
    • Nike belongs to the Fair Labor Association, a White House inspired organization to monitor and set policies for companies manufacturing in developing countries.
    Look! Our inspiration comes from the place that would never put commercial interests before social, human or environmental rights: the White House !!!
    Brown, in a separate dissent, said the majority's decision fails "to account for the realities of the modern world--a world in which personal, political and commercial arenas no longer have sharply defined boundaries."
    Hmmm... Maybe the majority would rather influence this "modern" world, than just describe it?