Thursday, February 14, 2008

A Real Life View of Defamation Law


Here are some facts from a recent case out of the Supreme Court of Illionois. Its a defamation case, and arises from two competitors in the men's clothing business. One shop - Imperial - was owned by folks of Jewish descent. The other - Cosmos's - was run by folks of Italian descent. Cosmo's prides itself on being home of the original 3-for-1 sale. After making an allegedly objective comparison between what Cosmo's offered in its 3-for-1 promotion, Imperial decided that its 1-for-1 prices were really lower than the combined prices at Cosmo's and tried to exploit this price advantage by offering its own 3-for-1 promotion. Cosmo responded with a big ad in the paper that included the following language (quoted from the Court opinion):
We all know, there is only one "America" in the world and only one "3 for 1" in the Midwest...and in both cases it was the original thinking of an Italian that made them famous. So to the shameless owners of Empire rags center, east Eden and south of quality, we say..."Start being kosher...Stop openly copying and coveting your neighbor's concepts or a hail storm of frozen matzo balls shall deluge your "flea market style warehouse".

It is laugable how with all the integrity of the "Iraq Information Minister", they brazenly attempt pulling polyester over your eyes by conjuring up a low rent 3 for imitation that has the transparency of a hooker come on...but no matter how they inflate prices and compromise quality, much to their dismay, Cy and his son Paul the plagiarist still remain light years away from delivering anything close to our "3 for 1" values.
I assume you get the idea, even though the ad is more extensive. The Court opinion is 17 pages of recital and analysis of the law, the end result of which is this -- no reasonable reader would construe these things as statements of fact, and they are not, therefore, actionable. I bring the case up because I think that the general populace has the idea that you are not permitted to print advertisements with racial slurs and general denigration of a competitor's product. In Illinois, that's not the case. The Court said, "No matter how distasteful they may be, ephithets aimed at ethnic or religious groups fall within the protection of the first amendment....No circumstances are alleged in this case that would strip the language used in the ad here of that protection."

Given the likelihood that the "speech" here is commercial, and the minimal value of this kind of sppech in contributing to the commercial purpose, I wonder whether the Constitution really protects this type of ad. I have no information that indicates that the case might go to the Supreme Court, but it would not surprise me if it did.

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