Court rules against Nike in ‘free speech’ case
The California Supreme Court has ruled that a San Francisco man can sue Nike Inc. for allegedly lying about working conditions in its Asian factories.
The court found that statements made by the sportswear giant in defence of its treatment of overseas workers were "commercial speech" and therefore subject to lawsuits under the state's consumer protection law. Nike's assertion that it was protected by constitutional guarantees that relate to non commercial free speech was turned down by the court.
The allegations date back to a Nike PR campaign conducted in the mid-1990s when the company wrote to newspaper editors, heads of universities and athletic departments, defending its treatment of workers in China and Thailand. Crucially, the high court did not rule on the merits of the case, or whether or not Nike made false statements as part of the PR campaign - simply that it could be sued under consumer law.
The decision allows San Francisco resident Marc Kasky to pursue his lawsuit against Nike, challenging the statements made by the company.
Nike officials said they had implemented several measures in recent years to improve workplace conditions, including requiring workers to be at least 18 years old, maintaining cleaner air in the factories and increasing wages for some Indonesian worker.
