Austin v. Michigan Chamber of Commerce
494 U.S. 652 (1990)
The Michigan Campaign
Finance Act (§54(1)) prohibited corporations from using corporate
funds to contribute to candidates in State elections.
Michigan business, led by the
Chamber of Commerce, sued claiming that the law was an unconstitutional
violation of the 1st Amendment.
The Trial Court found the law
to be unconstitutional. Michigan appealed.
The Appellate Court reversed.
The Chamber of Commerce appealed.
The US Supreme Court affirmed
and found the law to be constitutional.
The US Supreme Court found
that commercial speech is
protected by the 1st Amendment, but not as much
as other forms of speech.
The Court found the State
had a compelling government interest
in maintaining integrity of the political process, and "corporate
wealth can unfairly influence elections."
The Court found that the law
was narrowly tailored enough to be
constitutional because it allowed corporations to make donations through
independent, segregated funds.
Contrast this case with First
National Bank of Boston v. Bellotti
(435 U.S. 765 (1978)), which came to pretty much the opposite decision.