Document: 440 U.S. 1 99 S.Ct. 887 59 L.Ed.2d 100 E. Richard FRIEDMAN et al.v.N. Jay ROGERS al. N. al., Appellants, v. TEXAS OPTOMETRIC ASSOCIATION, INC., Appellant, Nos. 77-1163, 77-1164 and 77-1186. Argued Nov. 8, 1978. Decided Feb. 21, 1979. Rehearings Denied April 16, See 441 917, 2018. Syllabus Section 5.13(d) of the Texas Optometry Act prohibits practice optometry under a trade name § 2.02 requires that four six members Board, which regulates in State, be Optometric Association (TOA), professional organization optometrists. Rogers, Board member but ineligible for membership TOA because noncompliance with code ethics required membership, brought an action challenging constitutionality these provisions. A three-judge District Court held is related reasonably to State's purpose ensuring enforcement therefore constitutional Equal Protection Clause Fourteenth Amendment, unconstitutional restriction "free flow commercial information" First Amendment. Held: 1. constitutional. Virginia Pharmacy Citizens Consumer Council, 425 748, 96 1817, 48 346, Bates State Bar Arizona, 433 350, 97 2691, 53 810, distinguished. Pp. 8-16. (a) The use connection optometrical conveys no information about price nature services offered by optometrist until it acquires meaning over period time associations formed minds public between some standard or quality. Because ill-defined names quality can manipulated users names, there significant possibility will used mislead public. 11-13. (b) interest protecting from such deceptive misleading substantial well demonstrated this case, prohibition against constitutionally permissible regulation furtherance interest. Rather than stifling speech, ensures regarding communicated more fully accurately consumers had been past. 13-16. 2. also 17-19. history shows provision legitimate securing regulatory board administer faithfully. 17-18. While Rogers has right fair impartial hearing any disciplinary proceeding conducted him his challenge fairness does not arise him. Gibson Berryhill, 411 564, 93 1689, 36 488, Wall American Assn., 379 F.Supp. 175 (ND Ga.), summarily aff'd sub nom. Hardwick, 419 888, 95 166, 42 134, 18-19. D.C., 438 428, affirmed part reversed remanded part. Larry Niemann, Austin, Tex., Association, Inc. Dorothy Prengler, Friedman Robert Q. Keith, Beaumont, J. Mr. Justice POWELL delivered opinion Court. law name. It board, sustained statute governing composition based on Amendments. But ran afoul Amendment protection speech. 428 (ED Tex.1977). These appeals cross-appeal bring both Court's holdings before Court.1 2 * Legislature approved (Act) 1969, repealing earlier State. 2.01 establishes (Board) prescribes qualifications members.2 responsible administration Act, authority grant, renew, suspend, revoke licenses State.3 imposes numerous regulations optometry,4 several aspects business optometry.5 Many Act's are contained 5.13, restricts fee splitting optometrists forbids allow associated office unless he present practicing at least half hours open practices, whichever less. 5.13(d), issue here, assumed name, corporate name.6 3 dispute case grows out schism "professional" "commercial" Texas. Although all must meet same licensing requirements subject laws regulating their they have divided themselves informally into two groups according divergent approaches optometry.7 advocate commenced filing suit other five Board. He sought declaratory injunctive relief prescribing prohibiting 4 state affiliated (AOA). only restricted who comply Code Ethics AOA. fellow methods odds AOA Ethics. In complaint, alleged deprived equal due process eligible seats composed primarily faction. Regarding while section extended ophthalmologists. claimed disparity treatment denies laws, as denied conduct past "Texas Optical." 5 was convened consider Rogers' granted motions intervene. intervened defendant, adopting without alteration position taken individual whom originally named defendants. Senior (TSCA) behalf Rogers. This intervenor its representation general subjects optometrists, discourages communicating truthful TSCA members. urged violates receive availability services. 6 found Clause. As claim dominated would treat unfairly, non-TOA did when called could settled if problem arose.8 Concluding proffered justifications were outweighed importance speech question, enjoined 7 No. 77-1164, appeal decision upholding 2.02. 77-1163 77-1186, TOA, respectively, striking down unconstitutional. We noted probable jurisdiction, 435 967, 98 1604, 56 58, now affirm reverse II 8 holding infringes rights, relied decisions 810 (1977), 346 (1976). form advertising, concluded, after time, people "identify certain service goods." If specifically "that Optical [TSO] come communicate consuming standards quality, particular routine services," rejected argument TSO misleads identity deals. Balancing interests question it, information." F.Supp., 431. A. 9 review reliance them court below, reasserted here (the plaintiffs), misplaced. At validity Virginia's preventing advertising pharmacists prices prescription drugs. After establishing economic pharmacists' preclude advertisements, discussed advertisements warranted protection. To consumers, drugs competing pharmacies "could mean alleviation physical pain enjoyment basic necessities." U.S., 764, S.Ct., 1827. Society strong free information, efficient allocation resources depends upon informed consumer choices "even advertisement, though entirely 'commercial,' may interest." Ibid. acknowledged important maintaining high among pharmacists, concluded justify ban weighed conveyed. 10 next Term, applied rationale lawyers. weighing identified legal performed protected supra. 11 Bates, we careful emphasize "[s]ome forms surely permissible." Pharmacy, supra, 770, 1830; accord, 383, 2708. For example, restrictions place, manner expression provided "they justified reference content regulated serve governmental interest, so doing leave ample alternative channels communication 771, 1830. Equally false, deceptive, 12 "Untruthful otherwise, never own sake. Gertz Welch, Inc., 418 323, 340, 94 2997, 3007, 41 789, 805-806 (1974); Konigsberg Bar, 366 36, 49, n. 10, 81 997, 1005-1006, 105, 116 (1961). Obviously, much provably even wholly misleading. foresee obstacle dealing effectively problem. construe today, prohibit insuring stream cleanly freely." Id., 771-772, 1830 (footnote omitted); 13 extent commercial-speech regulation, observed features differentiate varieties ways suggest "a different degree necessary insure unimpaired." 772 24, relates product service, objective, hence verifiable, Commercial profits, carefully calculated, less likely inhibited proper regulation. attributes, indicate "appropriate require message appear . [is] prevent being deceptive. They make inapplicable prior restraints." Ibid.; see id., 775-781, 1832-1835 (STEWART, J., concurring).9 B 14 Once identify convey type, price, sale practice. each role, proposal transaction. Like pharmacist desired advertise uses "does wish editorialize subject, cultural, philosophical, political. report particularly newsworthy fact, generalized observations matters." 761, 1825. His strictly business. practice, then, nothing more.10 15 is, however, significantly considered Bates. those cases, proscribed lawyers statements products prices. self-contained self-explanatory. Here, concerned intrinsic meaning. quality.11 oftrade 16 possibilities deception numerous. remain unchanged despite changes staff whose skill care patronizes Thus, attracted reflects reputation longer frees dependence personal attract clients, allows assume new negligence misconduct casts shadow old one. By using shops common ownership, give false impression competition shops. facilitates essential large-scale practices branch offices, rationally discourage altogether. 17 concerns speculative hypothetical, experience legislature familiar 1969 enacted 5.13(d). forerunner adopted "Professional Responsibility Rule" Examiners 1959.12 Rule, Supreme reviewed prompted adoption. Bd. Carp, 412 S.W.2d 307, dismissed cert. denied, 389 52, 88 241, 19 51 (1967). One plaintiffs operated 71 offices names. From changed various shops, licensed shop remained same. purchased continued instances, Carp located close proximity one another selling optical goods management, facilitated gave offices. 18 competitive ownership management party plaintiff standardized care. All 82 went Optical" "TSO," advertised "scientific eye examination[s]" available every shop. S.W.2d, 312. calculated well, found, "the [Rogers brothers] office. Actually neither inside nor seen eighty-two distributed generally Texas." 313. Even fact misleading, example facilitate commercialization enhances opportunity practices.13 clear demonstrated.14 convinced emphasize, holding, most incidental effect above, grow up level service. Moreover, largely factual, concerning kind sale. Since limit type informational factual freely explicitly An offers, charges,15 whether partner, associate, employee optometrists.16 allowed through unstated ambiguous sum, done "appear deceptive." 24.17 III 20 stated applicable rule reviewing challenges local New Orleans Dukes, 427 297, 303, 2513, 2516, 49 511 21 "When challenged solely violating Clause, consistently defers legislative determinations desirability statutory discriminations. See, e. g., Lehnhausen Lake Shore Auto Parts Co., 410 356, 1001, 35 351 (1973). Unless classification trammels fundamental rights drawn inherently suspect distinctions race, religion, alienage, our presume discriminations 22 23 Prior 1967, Examiners; during period, rules profession, including Professional Rule. Between 1967 secured majority took steps repeal precipitated struggle ended passage 1969. law, modifications, Rule long supported created Act. view preceding Act,18 reasonable consistent support enforcing. Nor basis TSCA's place representative Board.19 24 sympathetic optometry, 488 (1973); nom., 134 (1974). Wall, proceedings instituted courts able examine context might precluded charges. Finding presence prejudicial interests, appropriate enjoin further plaintiffs. Gibson, 570, 578-579, 1693, 1697-1698. contrast, him.20 IV 25 portion judgment appealed sustaining 2.02, affirmed. That declaring insofar proscribes reversed. instructions dissolve injunction 26 So ordered. 27 BLACKMUN, MARSHALL joins, concurring dissenting 28 I join Part affirmance respect composition, issue). dissent, reversal 77-1186 trade-name, 29 do agree bans "in with" my view, analysis overestimates potential underestimates harmful impact broad sweep ignores legal. outlawed made illegal. inescapable conclusion profound measure asserted here. follows, seems me, abridged Doctor intervenor-plaintiff absolutely prohibiting, justification, dissemination conduct. 30 protects 1827, banning residential "For Sale" signs, Linmark Associates, Willingboro, 431 85, 1614, 50 155 disciplining services, disseminating sell drugs, balanced private Without engaging rigid categorization scrutiny required, distinguished impermissible regulation.1 31 1976, 934 resident almost evenly factions. leader forces. associates operate Before enactment used, where still grandfather provision, 5.13(k) (which, Court, expired January 1, 1979), continue use, Optical, TSO. agrees participate obey elaborate set termination. purchase inventory supplies Brothers; laboratory work laboratory; abide policies examination patients; take patients first-come-first-served rather appointment; retain Brothers 4% net cash accounting advertising. App. A-71 A-98. result rules, offer enforce uniformity along benefits, namely, sales credit, adjustment frames lenses cost, one-stop care, transferability patient records offices.2 chain typifies emphasis volume, speed 32 today glosses need them, eyeglasses "basic necessities" life consumer's "may keen, keener far, day's urgent political debate." 763-764, 1826. mobile consumer, provides valuable service.3 Lee Kenneth Benham, professor economist studies area Federal Trade Commission,4 testified deposition record here: 33 "One assets individuals large country knowledge Consumers develop sophisticated understanding permits locate goods, prefer continuing substantially lower search costs otherwise case. perhaps illustrated pointing Sears, Neiman Marcus Volkswagen. means firms enormous incentive maintain integrity name: entire package judged continuously samples purchase." A-336. 34 And services." serves distinctly then market distinguishing characteristic optometrist. faction mode organizing banished public's view. appellants argue partnership contracts run indeed, approves incidents leasing space percentage basis, 5.13(b); hiring employees regard supervision, 5.13(c); mercantile establishments, 5.14. limited exceptions 5.09(a), Yet bar telling rest exists. totally optometry."5 forcing cannot ignored. Under Sunset expire September 1981. Tex.Rev.Civ.Stat.Ann., Art. 4552-2.01a (Vernon Supp.1978-1979). existence, struck direct blow ability campaign re-enactment portions favors, demise those, finds objectionable. citizen pay attention head statewide known influence obscurely perceived. 37 characterizes "substantial demonstrated" suppression information. Ante, 15. first contends meaning, cause deception. unchanged, pointed out, change identities employ it. Secondly, says stopping short Neither justifies sweeping 38 itself deceive context. hypotheticals posed facts 307 (Tex.), (1967), concern optometric situations kept concealed. lies failure simultaneously disclose counsel conceded oral optometrist's prominently displayed. Tr. Oral Arg. 39. thus removed justification heavily relies statute. 39 suggests "misleading speech" "offset" publication clarifying 11. Corrected falsehood, truth, and, absent disclosing acts spirit jurisprudence, traditionally remedy enforced silence." 97, 1620, quoting Whitney California, 274 357, 377 (1927) (Brandeis, concurring).6 ultimate irony sweep, actually encourages statute, conjunction 5.13(e),7 prevents ever discovering controls cases employs effect, conceals practitioner engaged deprives thought relevant selection 40 second altogether, order optometry. Just last States' power create, regulate, wind corporation corporation's Nat. Bank Boston Bellotti, 765, 780 1407, 1418, 55 707 (1978). legally Bigelow Virginia, 421 809, 822-825, 2222, 2232-2234, 44 600 (1975). significance persons influenced who, reputation, know stands. determination therefore, necessarily assumption previously served trade-name acceptable bad, want avoid purposes 5.13 "to protect optometry," "better enable fix responsibility." ill-served hinders enlisting helpful, so, themselves. repeatedly "highly paternalistic" approach implicit justification. 791 31, 1424 31. There duties confined 1.02(1), measuring powers vision fitting corrective lenses. Williamson 348 483, 486, 75 461, 463, L.Ed. 563 (1955) (defining terms). disease. highly standardized. Each step controlled 5.12. functions mechanical duplicated machines vision.8 Patients refraction process, frequently easily assess rendered. cost per visit low enough $15 $35—that comparison shopping sometimes possible. A-420. Nation's population eyeglasses, 43 Fed.Reg. 23992 (1978), readily available. context, choice shut off assumed, "will perceive best informed." 1829. upheld referral opticians. provides: "To qualified appointment person years immediately appointment. disqualified faculty college agent wholesale company, financial company. times shall minimum two-thirds association recognized Association." codified 4552 Revised Civil Statutes Annotated 1976). numbers within same, refer 4.04. unlawful license. 5.04. applicant license educational standards, 3.02, pass covering specified §§ 3.01, 3.05. licensed, annual education requirement renewal 4.01B. Optometrists forbidden diseases eye, prescribe ophthalmic patient. 5.05, 5.07. entitled "Basic competence," specifies elements display office; away office, include number receipt given 5.01. Fraudulent, deceitful, 5.09, placed nullified windows reception rooms, types signs 5.11. premises establishments regulated, 5.14, relationships opticians restricted. 5.15. part: "No under, ." scope provisions proscribe partnerships employment partnerships, defendant indicated partners included partnership. 28. With employees, "[o]ptometrists employed listed employed." No matter adopts, uniformly high. optometrist, qualify license, graduate university "practical, theoretical, physiological optics, theoretical practical anatomy, physiology pathology optometry." minimizes character stating "confined lenses." Post, 27. imposed considers requiring training. create irrebuttable presumption nonmembers danger TOA's domination suppress application "no propose transaction," Pittsburgh Press Co. Human Relations Comm'n, 413 376, 385, 2553, 2558, 669 (1973), extension traditional free-speech doctrine poses special problems presented Jackson & Jeffries, Speech: Economic Due Process 65 Va.L.Rev. (1979); Note 57 B.U.L.Rev. 833 (1977). Cf. Comment, Advertising: Constitutional Doctrine, U.Chi.L.Rev. 205 definition, linked inextricably activity: affords protection," true lose regulate activity deemed whenever component activity." Ohralik Ohio 436 447, 456, 1912, 1919, 444 relative novelty act caution confronting legislation interests. Our extend automatically yet uncharted area. 462 20, 1922 (overbreadth speech). When frame narrowly, "allowing modes [of speech] realm noncommercial expression." 1918. prohibited bank publicizing views merits proposed amendment submitted referendum. unconstitutional, discussion affairs "is heart Amendment's protection." 776, 1415. Similarly 822, 2232, (1975), advertisement "did simply transaction." Such categorically mere solicitation patronage 9, acquired secondary becomes property business, appropriation others. value asset limitations Commission's remedial Commission U.S.C. 45, "unfair competition." FTC Royal Milling 288 212, 217-218, 335, 337, 77 706 (1933), Jacob Siegel FTC, 327 608, 611-613, 66 758, 759-760, 90 888 (1946), 5, determine remedied proscription. enlarge diminish communication. Accordingly, rule, comparable limitation additional clarify offset effects spurious indeed all. occasion 5.13(k), clause defeat claims. should Partners full employers. minor changes, preamble makes clear. "The better responsibility, safeguard doctor-patient relationship." defendants (collectively, defendants) rely establish evidence testimony former associate Carp's abuses occurred Shannon Deposition 8. showed owned him, partly states "Rogers 21. testimony. exercised control whatsoever" "office policy routines" 16. appears primary relationship participation materials equipment supply house. 16-18, 22-23. similar attempted show, apart use. 29. legislate broadly seeks remedy. 489, 465, (1955). adopted, 5.09 below invalidated prohibition, ruling appealed. 891, practices. 5.13(e). produce apply assuming what demonstrate, ophthalmologists uncontested response 138-142: 5. attempt show conclude suggested day affected recently promulgated Riley Deposition, A-209 A-236, A-251 A-252. limits, exceeded exercise life, professions. (1978); North Dakota Snyder's Drug Stores, 414 156, 164-167, 407, 412-414, 487-488, 464, Weinberger Salfi, 422 749, 767-774, 2457, 2467-2471, 45 522 speculation excess discouraging lawful merit members' creating TOA. inconsistent Sherman Antitrust mentioned jurisdictional statement plaintiffs' raise brief put properly us. Canby Gellhorn, Physician 1978 Duke L.J. 543, 552-554. owns offices; others merely partner; "associated" ante, 13, exerts contract introduced evidence, that, condition licensee accord material Laboratory. A-82 A-83. Brief Appellee pp. 16-18. parties finding infra, 23. vital defined "speech referring brand amendment, issued speaker distribution speech." 205, 254 pre-empting restrict 24006 Benham "reliable." 23995. Effect Advertising Price Eyeglasses, J.Law Econ. 337 (1972); Regulating Through Professions: Perspective Information Control, inform controls, spends amount orders cured "requiring qualifying words immediate names." 217, (1933); (1946). distinguish 11, ground arose Fifth First. distinction offered. pertinent reads: "(e) identification, authorized Article 4590e, amended, Texas, door, window, wall, directory, sign listing whatsoever, location practiced, said therein "(g) Subsections (e) (f) 'actually present' satisfied either: "(1) physically total location, calendar month nine months year; "(2) one-half conducts, directs, supervises "(h) Nothing interpreted ill, injured, incapacitated temporarily." opinion, employer "actually practicing" employee. Conversely, employer's advertised, employee's mentioned. Bannon, Automated Subjective Optometer, 54 Am. Phys. Optics (1977); Guyton, refraction, Ivest. Ophthalmology 814 Marg, Anderson, Chung, Neroth, Computer-Assisted Eye Examination VI. Identification Correction Errors Refractor System Examination, 249

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