THE SUPREME COURT OF THE UNITED STATES
OCTOBER TERM 1992-1993
EDENFIELD
v.
FANE
507 U.S. 761
1993
* * *
SYLLABUS: EDENFIELD et al. v. FANE
certiorari to the united states court of appeals for the eleventh circuit
No. 91-1594. Argued December 7, 1992-Decided April 26, 1993
Respondent Fane, a Certified Public Accountant (CPA) licensed to practice by the Florida Board of Accountancy, sued the Board for declaratory and injunctive relief on the ground that its rule prohibiting CPAs from engaging in ``direct, in-person, uninvited solicitation'' to obtain new clients violated the First and Fourteenth Amendments. He alleged that but for the prohibition he would seek clients through personal solicitation, as he had done while practicing in New Jersey, where such solicitation is permitted. The Federal District Court enjoined the rule's enforcement, and the Court of Appeals affirmed.
Held: As applied to CPA solicitation in the business context, Florida's prohibition is inconsistent with the free speech guarantees of the First and Fourteenth Amendments. Pp. 3-16.
(a) The type of personal solicitation prohibited here is clearly commercial expression to which First Amendment protections apply. E.g., Virginia State Bd. of Pharmacy v. Virginia Citizens Consumer Council, Inc., 425 U.S. 748, 762. Ohralik v. Ohio State Bar Assn., 436 U.S. 447, which upheld a ban on in-person solicitation by lawyers, did not hold that all personal solicitation is without First Amendment protection. In denying CPAs and their clients the considerable advantages of solicitation in the commercial context, Florida's law threatens societal interests in broad access to complete and accurate commercial information that the First Amendment is designed to safeguard. However, commercial speech is ``linked inextricably'' with the commercial arrangement that it proposes, so that the State's interest in regulating the underlying transaction may give it a concomitant interest in the expression itself. Thus, Florida's rule need only be tailored in a reasonable manner to serve a substantial state interest in order to survive First Amendment scrutiny. See, e.g., Central Hudson Gas & Electric Corp. v. Public Service Comm'n of New York, 477 U.S. 557, 564. Pp. 3-5.
(b) Even under the intermediate Central Hudson standard of review, Florida's ban cannot be sustained as applied to Fane's proposed speech. The Board's asserted interests-protecting consumers from fraud or overreaching by CPAs and maintaining CPA independence and ensuring against conflicts of interest-are substantial. However, the Board has failed to demonstrate that the ban advances those interests in any direct and material way. A governmental body seeking to sustain a restriction on commercial speech must demonstrate that the harms it recites are real and that its restriction will in fact alleviate them to a material degree. Here, the Board's suppositions about the dangers of personal solicitation by CPAs in the business context are not validated by studies, anecdotal evidence, or Fane's own conduct; and its claims are contradicted by a report of the American Institute of Certified Public Accountants and other literature. Nor can the ban be justified as a reasonable time, place, or manner restriction on speech. Even assuming that a flat ban on commercial solicitation could be regarded as such a restriction, the ban still must serve a substantial state interest in a direct and material way. Pp. 5-12.
(c) The ban cannot be justified as a prophylactic rule because the circumstances of CPA solicitation in the business context are not ``inherently conducive to overreaching and other forms of misconduct.'' Ohralik, supra, at 464. Unlike a lawyer, who is trained in the art of persuasion, a CPA is trained in a way that emphasizes independence and objectivity rather than advocacy. Moreover, while a lawyer may be soliciting an unsophisticated, injured, or distressed lay person, a CPA's typical prospective client is a sophisticated and experienced business executive who has an existing professional relation with a CPA, who selects the time and place for their meeting, and for whom there is no expectation or pressure to retain the CPA on the spot. In addition, Ohralik in no way relieves a State of the obligation to demonstrate that its restrictions on speech address a serious problem and contribute in a material way to solving that problem. Pp. 12-16.
945 F.2d 1514, affirmed.
Kennedy, J., delivered the opinion of the Court, in which Rehnquist, C. J., and White, Blackmun, Stevens, Scalia, Souter, and Thomas, JJ., joined. Blackmun, J., filed a concurring opinion. O'Connor, J., filed a dissenting opinion.
CONCURRING OPINION: Opinion of Blackmun, J. (concurring)
on writ of certiorari to the united states court of appeals for the eleventh circuit
[April 26, 1993]
Justice Blackmun, concurring.
I join the Court's opinion, just as I joined Justice Stevens' recent opinion for the Court in Cincinnati v. Discovery Network, Inc., ___ U.S. ___ (1993), with the observation that I again disengage myself from any part thereof, or inference therefrom, that commercial speech that is free from fraud or duress or the advocacy of unlawful activity is entitled to only an "intermediate level," see ante, at 5, of protection under the First Amendment's proscription of any law abridging the freedom of speech.
DISSENTING OPINION: Opinion of O'Connor, J. (dissenting)
on writ of certiorari to the united states court of appeals for the eleventh circuit
[April 26, 1993]
Justice O'Connor, dissenting.
I continue to believe that this Court took a wrong turn with Bates v. State Bar of Arizona, 433 U.S. 350 (1977), and that it has compounded this error by finding increasingly unprofessional forms of attorney advertising to be protected speech. See Zauderer v. Office of Disciplinary Counsel of Supreme Court of Ohio, 471 U.S. 626 (1985); Shapero v. Kentucky Bar Assn., 486 U.S. 466 (1988); Peel v. Attorney Registration and Disciplinary Comm'n of Ill., 496 U.S. 91 (1990) (plurality opinion). These cases consistently focus on whether the challenged advertisement directly harms the listener: whether it is false or misleading, or amounts to "overreaching, invasion of privacy, [or] the exercise of undue influence," Shapero, supra, at 475. This focus is too narrow. In my view, the States have the broader authority to prohibit commercial speech that, albeit not directly harmful to the listener, is inconsistent with the speaker's membership in a learned profession and therefore damaging to the profession and society at large. See Zauderer, supra, at 676-677 (O'Connor, J., concurring in part, concurring in judgment in part, and dissenting in part); Shapero, supra, at 488-491 (O'Connor, J., dissenting); Peel, supra, at 119 (O'Connor, J., dissenting). In particular, the States may prohibit certain "forms of competition usual in the business world," Goldfarb v. Virginia State Bar, 421 U.S. 773, 792 (1975) (internal quotation marks omitted), on the grounds that pure profit seeking degrades the public-spirited culture of the profession and that a particular profit-seeking practice is inadequately justified in terms of consumer welfare or other social benefits. Commercialization has an incremental, indirect, yet profound effect on professional culture, as lawyers know all too well.
But even if I agreed that the States may target only professional speech that directly harms the listener, I still would dissent in this case. Ohralik v. Ohio State Bar Assn., 436 U.S. 447 (1978), held that an attorney could be sanctioned for the in-person solicitation of two particularly vulnerable potential clients, because of the inherent risk under such circumstances that the attorney's speech would be directly harmful, and because a simple prohibition on fraud or overreaching would be difficult to enforce in the context of in-person solicitation. See id., at 464-468. The result reached by the majority today cannot be squared with Ohralik.
Although Ohralik preceded Central Hudson Gas & Electric v. Public Service Comm'n of New York, 447 U.S. 557 (1980), this Court has understood Ohralik to mean that a rule prohibiting in-person solicitation by attorneys would satisfy the Central Hudson test. See Shapero, supra, at 472. Such a rule would "directly advanc[e] the governmental interest [and would not be] more extensive than is necessary to serve that interest." Central Hudson, supra, at 566. A substantial fraction of in-person solicitations are inherently conducive to overreaching or otherwise harmful speech, and these potentially harmful solicitations cannot be singled out in advance (or so a reasonable legislator could believe).
I see no constitutional difference between a rule prohibiting in-person solicitation by attorneys, and a rule prohibiting in-person solicitation by certified public accountants (CPA's). The attorney's rhetorical power derives not only from his specific training in the art of persuasion, see ante, at 13, but more generally from his professional expertise. His certified status as an expert in a complex subject matter-the law-empowers the attorney to overawe inexpert clients. CPA's have an analogous power. The drafters of Fla. Admin. Code Sec. 21A-24.002(2)(c) (1992) reasonably could have envisioned circumstances analogous to those in Ohralik, where there is a substantial risk that the CPA will use his professional expertise to mislead or coerce a naive potential client.
Indeed, the majority scrupulously declines to question the validity of Florida's rule. The majority never analyzes the rule itself under Central Hudson, cf. Posadas de Puerto Rico Associates v. Tourism Co. of Puerto Rico, 478 U.S. 328, 340-344 (1986) (analyzing "facial" validity of law regulating commercial speech by employing Central Hudson test), but instead seeks to avoid this analysis by characterizing Fane's suit as an "as-applied" challenge. See ante, at 1, 5, 9, 12. I am surprised that the majority has taken this approach without explaining or even articulating the underlying assumption: that a commercial speaker can claim First Amendment protection for particular instances of prohibited commercial speech, even where the prohibitory law satisfies Central Hudson. Board of Trustees of State Univ. of N. Y. v. Fox, 492 U.S. 469 (1989), appears to say the opposite, see id., at 476-486, and we recently granted certiorari in a case that poses precisely this issue, see United States v. Edge Broadcasting Co., 506 U.S. ___ (1992).
In any event, the instant case is not an "as-applied" challenge, in the sense that a speaker points to special features of his own speech as constitutionally protected from a valid law. Cf. Zauderer, supra, at 644. The majority obscures this point by stating that Florida's rule "cannot be sustained as applied to Fane's proposed speech," ante, at 5, and by paraphrasing Fane's affidavit at length to show that he does not propose to solicit vulnerable clients, ante, at 14. But I do not understand the relevance of that affidavit here, because the broad remedy granted by the District Court goes well beyond Fane's own speech.
"Florida Administrative Code, Sec. Sec. 21A-24.002(2) and (3), places an unconstitutional ban on protected commercial speech in violation of the first . . . amendmen[t]. The Board of Accountancy and State are hereby enjoined from enforcing that regulation as it is applied to CPAs who seek clients through in-person, direct, uninvited solicitation in the business context." App. 88.
Even if the majority is correct that a law satisfying Central Hudson cannot be applied to harmless commercial speech, and that Fane's proposed speech will indeed be harmless, these two premises do not justify an injunction against the enforcement of the antisolicitation rule to all CPA's.
The majority also relies on the fact that petitioners were enjoined only from enforcing the rule in the "business context." See ante, at 1, 9. Yet this narrowing of focus, without more, does not salvage the District Court's remedy. I fail to see why Sec. 21A-24.002(2)(c) should be valid overall, but not "in the business context." Small businesses comprise the vast majority of business establishments in the United States, see U.S. Dept. of Commerce, Statistical Abstract of the United States 526 (1992). The drafters of Florida's rule reasonably could have believed that the average small businessman is no more sophisticated than the average individual who is wealthy enough to hire a CPA for his personal affairs.
In short, I do not see how the result reached by the majority is consistent with the validity of Sec. 21A-24.002(2)(c). In failing to state otherwise, the majority implies that the rule itself satisfies Central Hudson, and I agree, but on that precise grounds I would reverse the judgment of the Court of Appeals.
TOC: Syllabus > Blackmun, J. (concurring) > O'Connor, J. (dissenting) >
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