Nike appeal to Supreme Court over ‘free speech’ ruling
Nike has said it is to appeal in the US Supreme Court against the California Supreme Court’s ruling of last May, which found in favour of a San Francisco man who alleged the company had previously lied about working conditions in Asia. (See leatherbiz.com story, Court rules against Nike in ‘free speech’ case - 3.5.02).
The California court had 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. The decision allowed San Francisco resident Marc Kasky to pursue his lawsuit against Nike, challenging the statements made by the company. The court turned down Nike's assertion that it was protected by constitutional guarantees that relate to non-commercial free speech.
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 California 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.
Commenting on the US Supreme Court appeal, Professor Laurence Tribe, representing Nike, opined that the ruling would actually have the effect of reducing levels of corporate transparency, so desired following the scandals of recent years. The California Supreme Court responded its May ruling ensured that promotional speech should remain subject to laws against false advertising and that it did not ‘gag’ companies involved in public matters, as Nike has argued.
