A divided Supreme Court issued two business-friendly decisions today that demonstrate why, under Chief Justice Roberts, it is frequently called the Corporate Court.
In the first of these, Sorrell v. IMS Health, a 6-3 Court (the five usual suspects joined by Justice Sotomayor) struck down a common-sense medical privacy law passed by Vermont. As part of its comprehensive regulation of pharmaceuticals, the state requires pharmacies to retain certain information about prescriptions and the doctors that order them. Knowing that the drug companies would love to take advantage of this information in order to target doctors to sell more of their product, Vermont protected medical privacy by prohibiting the sale to or use of this data by drug companies without the prescribing doctor’s authorization.
According to the Roberts Court, the law allows anyone else to use the data for any other purpose and therefore cannot be defended as protecting medical privacy. It therefore characterizes the law as targeting speech based on the identity of the speaker and the content of the message, thereby triggering heightened First Amendment scrutiny (which – surprise, surprise – the privacy protection law fails to meet).
Justice Breyer’s dissent recognizes the Vermont law as the standard, commonplace regulation of a commercial enterprise. It doesn’t prohibit or require anyone to say anything, to engage in any form of symbolic speech, or to endorse any particular point of view. It simply addresses a problematic abuse of the prescription data. As the dissenters point out, the federal and state governments routinely limit the use of information that is collected in areas subject to their regulation, as pharmaceuticals have been for over 100 years. Surely heightened First Amendment scrutiny should not be triggered by a law that, for instance, prohibits a car dealer from using credit scores it gets for one purpose (to determine if customer is credit-worthy) for another (to search for new customers).
The dissent states that the Court has never before subjected standard, everyday regulation of this sort to heightened First Amendment scrutiny. Yet this is not the first time that arch-conservative ideologues have taken everyday economic regulation and struck it down on the basis of freedoms enumerated in the Bill of Rights. In fact, the dissenters specifically warn of a return to
the bygone era of Lochner v. New York, in which it was common practice for this Court to strike down economic regulations adopted by a State based on the Court’s own notions of the most appropriate means for the State to implement its considered policies.
With Lochner, ideologues routinely struck down consumer and worker protection laws as violating the Due Process Clause so they could impose their own policy preferences. Simply replacing Due Process with Free Speech does not suddenly make this radicalism valid.