Last week, the Supreme Court issued an important decision on the free speech rights of corporations. The law has long recognized that, just like individuals, corporations are protected by the First Amendment to the Constitution. However, in 1990 (Austin v Michigan Chamber of Commerce) and in subsequent decisions, the Supreme Court had ruled that the government may restrict corporate expenditures to support or oppose political candidates. The Supreme Court overruled those earlier decisions in Citizens United v Federal Election Commission. Justice Kennedy wrote: “The Government may regulate corporate political speech through disclaimer requirements, but it may not suppress that speech altogether.” In other words, the government may require that the sponsor of the advertisement be disclosed, and whether it was approved by a particular candidate. However, the government may not prohibit or limit the amount of money spent by a corporation to support or oppose a particular candidate or issue.
Corporations previously used political action committees (PAC’s) to get involved in political activities. Based on the Supreme Court’s decision, the use of PAC’s may no longer be necessary.
Click here to download a PDF copy of the Supreme Court Decision.
This article was written by Mark S. Demorest, Managing Member of Demorest Law Firm.
