Bates v. State Bar of Arizona
John R. BATES and Van O'Steen, Appellants,
v.
STATE BAR OF ARIZONA.
No. 76-316.
Supreme Court of the United States
Argued Jan. 18, 1977.
Decided June 27, 1977.
Rehearing Denied Oct. 3, 1977.
See 434 U.S. 881, 98 S.Ct. 242.
Mr. Justice BLACKMUN delivered the opinion of the Court.
As part of its regulation of the Arizona Bar, the Supreme Court of that State has imposed
and enforces a disciplinary rule that restricts advertising by attorneys. This case
presents two issues: whether ss 1 and 2 of the Sherman Act, 15 U.S.C. ss 1 and 2, forbid
such state regulation, and whether the operation of the rule violates the First Amendment,
made applicable to the State through the Fourteenth. [FN1]
FN1. See Bigelow v. Virginia, 421 U.S. 809, 811, 95 S.Ct. 2222, 2227, 44 L.Ed.2d 600
(1975); Schneider v. State, 308 U.S. 147, 160, 60 S.Ct. 146, 150, 84 L.Ed. 155 (1939).
I
Appellants John R. Bates and Van O'Steen are attorneys licensed to practice law in the
State of Arizona. [FN2] As such, they are members of the appellee, the State Bar of
Arizona. [FN3] After admission to the bar in 1972, appellants worked as attorneys with the
Maricopa County Legal Aid Society. App. 221.
FN2. Each appellant is a 1972 graduate of Arizona State University College of Law. Mr.
Bates was named by the faculty of that law school as the outstanding student of his class;
Mr. O'Steen graduated cum laude. App. 220-221.
FN3. Rule 27(a) of the Supreme Court of Arizona, 17A Ariz.Rev.Stat., pp. 84-85 (1973),
reads in part:
'1. In order to advance the administration of justice according to law, . . . the Supreme
Court of Arizona does hereby perpetuate, create and continue under the direction and
control of this Court an organization known as the State Bar of Arizona, and all persons
now or hereafter licensed in this state to engage in the practice of law shall be members
of the State Bar of Arizona in accordance with the rules of this Court. . . .'
'3. No person shall practice law in this state or hold himself out as one who may practice
law in this state unless he is an active member of the state bar.'
See Ariz.Const., Art. 3; Ariz.Rev.Stat. ss 32-201, 32-237, 32- 264 (1976). The Arizona
Bar, thus, is an integrated one. See Lathrop v. Donohue, 367 U.S. 820, 81 S.Ct. 1826, 6
L.Ed.2d 1191 (1961).
In March 1974, appellants left the Society and opened a law office, which they call a
'legal clinic,' in Phoenix. Their aim was to provide legal services at modest fees to
persons of moderate income who did not qualify for governmental legal aid. Id., at 75. In
order to achieve this end, they would accept only routine matters, such as uncontested
divorces, uncontested adoptions, simple personal bankruptcies, and changes of name, for
which costs could be kept down by extensive use of paralegals, automatic typewriting
equipment, and standardized forms and office procedures. More complicated cases, such as
contested divorces, would not be accepted. Id., at 97. Because appellants set their prices
so as to have a relatively low return on each case they handled, they depended on
substantial volume. Id., at 122- 123.
After conducting their practice in this manner for two years, appellants concluded that
their practice and clinical concept could not survive unless the availability of legal
services at low cost was advertised and in particular, fees were advertised. Id., at
120-123. Consequently, in order to generate the necessary flow of business, that is, 'to
attract clients,' id., at 121; Tr. of Oral Arg. 4, appellants on February 22, 1976, placed
an advertisement (reproduced in the Appendix to this opinion, infra, at 2710) in the
Arizona Republic, a daily newspaper of general circulation in the Phoenix metropolitan
area. As may be seen, the advertisement stated that appellants were offering 'legal
services at very reasonable fees,' and listed their fees for certain services. [FN4]
FN4. The office benefited from an increase in business after the appearance of the
advertisement. App. 235-236, 479-480. It is doubtful, however, whether the increase was
due solely to the advertisement, for the advertising itself prompted several news stories.
Id., at 229. It might be expected, nonetheless, that advertising will increase business.
See Hobbs, Lawyer Advertising: A Good Beginning but Not Enough, 62 A.B.A.J. 735, 736
(1976) (lawyer referral service that advertised referred more than 11 times as many
clients as one that did not advertise in another city of comparable size).
Appellants concede that the advertisement constituted a clear violation of Disciplinary
Rule 2-101(B), incorporated in Rule 29(a) of the Supreme Court of Arizona, 17A
Ariz.Rev.Stat., p. 26 (Supp. 1976). The disciplinary rule provides in part:
'(B) A lawyer shall not publicize himself, or his partner, or associate, or any other
lawyer affiliated with him or his firm, as a lawyer through newspaper or magazine
advertisements, ratio or television announcements, display advertisements in the city or
telephone directories or other means of commercial publicity, nor shall he authorize or
permit others to do so in his behalf.' [FN5]
FN5. The remainder of subdivision (B) states exceptions to the general prohibition:
'However, a lawyer recommended by, paid by, or whose legal services are furnished by, a
qualified legal assistance organization may authorize or permit or assist such
organization to use means of dignified commercial publicity, which does not identify any
lawyer by name, to describe the availability or nature of its legal services or legal
service benefits. This rule does not prohibit limited and dignified identification of a
lawyer as a lawyer as well as by name:
'(1) In political advertisements when his professional status is germane to the political
campaign or to a political issue.
'(2) In public notices when the name and profession of a lawyer are required or authorized
by law or are reasonably pertinent for a purpose other than the attraction of potential
clients.
'(3) In routine reports and announcements of a bona fide business, civic, professional, or
political organization in which he serves as a director or officer. '(4)
In and on legal documents prepared by him.
'(5) In and on legal textbooks, treatises, and other legal publications, and in dignified
advertisements thereof.
'(6) In communications by a qualified legal assistance organization, along with the
biographical information permitted under DR 2- 102(A)(6) (biographical information that
may be listed 'in a reputable law list or legal directory'), directed to a member of
beneficiary of such organization.'
Upon the filing of a complaint initiated by the president of the State Bar, App. 350, a
hearing was held before a three-member Special Local Administrative Committee, as
prescribed by Arizona Supreme Court Rule 33. App. 16. Although the committee took the
position that it could not consider an attack on the validity of the rule, it allowed the
parties to develop a record on which such a challenge could be based. The committee
recommended that each of the appellants be suspended from the practice of law for not less
than six months. Id., at 482. Upon further review by the Board of Governors of the State
Bar, pursuant to the Supreme Court's Rule 36, the Board recommended only a one-week
suspension for each appellant, the weeks to run consecutively. App. 486-487.
Appellants, as permitted by the Supreme Court's Rule 37, then sought review in the Supreme
Court of Arizona, arguing, among other things, that the disciplinary rule violated ss 1
and 2 of the Sherman Act because of its tendency to limit competition, and that the rule
infringed their First Amendment rights. The court rejected both claims. In re Bates, 113
Ariz. 394, 555 P.2d 640 (1976). The plurality [FN6] may have viewed with some skepticism
the claim that a restraint on advertising might have an adverse effect on competition.
[FN7] But, even if the rule might otherwise violate the Act, the plurality concluded that
the regulation was exempt from Sherman Act attack because the rule 'is an activity of the
State of Arizona acting as sovereign.' Id., at 397, 555 P.2d at 643. The regulation thus
was held to be shielded from the Sherman Act by the state-action exemption of Parker v.
Brown, 317 U.S. 341, 63 S.Ct. 307, 87 L.Ed. 315 (1943).
FN6. The plurality opinion represented the views of two of the five justices that compose
the Supreme Court of Arizona Ariz.Const., Art. 6, s 2; Ariz.Rev.Stat. s 12-101 (1956). It
is evident, however, that a majority adhered to the plurality's exposition of the law. One
opinion, although styled a dissent, stated that the author agreed with the plurality
opinion 'in all respects' except for the reduction in punishment. One justice, specially
concurring, stated that he agreed 'with much of the law and many of the comments expressed
by the majority.' The opinion of the remaining justice is discussed in
the text.
FN7. But see United States v. Gasoline Retailers Assn., 285 F.2d 688, 691 (CA7 1961); cf.
United States v. Socony-Vacuum Oil Co., 310 U.S. 150, 221-222, 60 S.Ct. 811, 843, 84 L.Ed.
1129 (1940); United States v. National Society of Professional Engineers., 181
U.S.App.D.C. 41, 555 F.2d 978 (1977) (ethical prohibition on members of society from
submitting competitive bids for engineering services violates Sherman Act).
Turning to the First Amendment issue, the plurality noted that restrictions on
professional advertising have survived constitutional challenge in the past, citing, along
with other cases, Williamson v. Lee Optical Co., 348 U.S. 483, 75 S.Ct. 461, 99 L.Ed. 563
(1955), and Semler v. Dental Examiners, 294 U.S. 608, 55 S.Ct. 570, 79 L.Ed. 1086 (1935).
[FN8] Although recognizing that Virginia Pharmacy Board v. Virginia Consumer Council, 425
U.S. 748, 96 S.Ct. 1817, 48 L.Ed.2d 346 (1976), and Bigelow v. Virginia, 421 U.S. 809, 95
S.Ct. 2222, 44 L.Ed.2d 600 (1975), held that commercial speech was entitled to certain
protection under the First Amendment, the plurality focused on passages in those opinions
acknowledging that special considerations might bear on the advertising of professional
services by lawyers. See Virginia Pharmacy Board v. Virginia Consumer Council, 425 U.S.,
at 773 n. 25, 96 S.Ct., at 1831; id., at 773-775, 96 S.Ct. at 1831-1832 (concurring
opinion); Bigelow v. Virginia, 421 U.S., at 825 n. 10, 95 S.C., at 2234. The plurality
apparently was of the view that the older decisions dealing with professional advertising
survived these recent cases unscathed, and held that Disciplinary Rule 2-101(B) passed
First Amendment muster. [FN9] Because the court, in agreement with the Board of Governors,
felt that appellants' advertising 'was done in good faith to test the constitutionality of
DR 2-101(B),' it reduced the sanction to censure only. [FN10] 113 Ariz., at 400, 555 P.2d,
at 646.
FN8. See also Head v. New Mexico Board, 374 U.S. 424, 83 S.Ct. 1759, 10 L.Ed.2d 983
(1963). The Court did not resolve a First Amendment issue in any of these cases. The
advertising restrictions were upheld in the face of challenges based on due process, equal
protection, and interference with interstate commerce. Although the First Amendment issue
was raised in Head, the Court refused to consider it because it had been neither presented
to the state courts nor reserved in the notice of appeal. Id., at 432-433, n. 12, 83
S.Ct., at 1764-1765.
FN9. Appellants also unsuccessfully challenged the rule on equal protection and vagueness
grounds and asserted that the disciplinary procedures violated due
process. These contentions are not made here.
FN10. Mr. Justice REHNQUIST stayed the order of censure pending final determination of the
matter by this Court.
Of particular interest here is the opinion of Mr. Justice Holohan in dissent. In his view,
the case should have been framed in terms of 'the right of the public as consumers and
citizens to know about the activities of the legal profession,' id., at 402, 555 P.2d, at
648, rather than as one involving merely the regulation of a profession. Observed in this
light, he felt that the rule performed a substantial disservice to the public:
'Obviously the information of what lawyers charge is important for private economic
decisions by those in need of legal services. Such information is also helpful, perhaps
indispensable, to the formation of an intelligent opinion by the public on how well the
legal system is working and whether it should be regulated or even altered. . . . The rule
at issue prevents access to such information by the public.' Id., at 402-403, 555 P.2d, at
648-649.
Although the dissenter acknowledged that some types of advertising might cause confusion
and deceptin, he felt that the remedy was to ban that form, rather than all advertising.
Thus, despite his 'personal dislike of the concept of advertising by attorneys,' id., at
402, 555 P.2d, at 648, he found the ban unconstitutional.
We noted probable jurisdiction. 429 U.S. 813, 97 S.Ct. 53, 50 L.Ed.2d 73 (1976).
II
The Sherman Act
In Parker v. Brown, 317 U.S. 341, 63 S.Ct. 307, 87 L.Ed. 315 (1943), this Court held that
the Sherman Act was not intended to apply against certain state action. See also Olsen v.
Smith, 195 U.S. 332, 344-345, 25 S.Ct. 52, 54-55, 49 L.Ed. 224 (1904). In Parker a raisin
producer-packer brought suit against California officials challenging a state program
designed to restrict competition among growers and thereby to maintain prices in the
raisin market. The Court held that the State, 'as sovereign, imposed the restraint as an
act of government which the Sherman Act did not undertake to prohibit.' 317 U.S., at 352,
63 S.Ct., at 314. Appellee argues, and the Arizona Supreme Court held, that the Parker
exemption also bars the instant Sherman Act claim. We agree.
Of course, Parker v. Brown has not been the final word on the matter. In two recent cases
the Court has considered the state-action exemption to the Sherman Act and found it
inapplicable for one reason or another. Goldfarb v. Virginia State Bar, 421 U.S. 773, 95
S.Ct. 2004, 44 L.Ed.2d 572 (1975); Cantor v. Detroit Edison Co., 428 U.S. 579, 96 S.Ct.
3110, 49 L.Ed.2d 1141 (1976). Goldfarb and Cantor, however, are distinguishable, and their
reasoning supports our conclusion here.
In Goldfarb we held that s 1 of the Sherman Act was violated by the publication of a
minimum-fee schedule by a county bar association and by its enforcement by the State Bar.
The schedule and its enforcement mechanism operated to create a rigid price floor for
services and thus constituted a classic example of price fixing. Both bar association
argued that their activity was shielded by the state-action exemption. This Court
concluded that the action was not protected, emphasizing that 'we need not inquire further
into the stateaction question because it cannot fairly be said that the State of Virginia
through its Supreme Court Rules required the anticompetitive activities of either
respondent.' 421 U.S., at 790, 95 S.Ct., at 2015. In the instant case, by contrast, the
challenged restraint is the affirmative command of the Arizona Supreme Court under its
Rules 27(a) and 29(a) and its Disciplinary Rule 2-101(B). That court is the ultimate body
wielding the State's power over the practice of law, see Ariz.Const., Art. 3; In re
Bailey, 30 Ariz. 407, 248 P. 29 (1926), and, thus, the restraint is 'compelled by
direction of the State acting as a sovereign.' 421 U.S., at 791, 95 S.Ct., at 2015. [FN11]
FN11. We note, moreover, that the Court's opinion in Goldfarb concluded
with the observation that '(i)n holding that certain anticompetitive conduct by lawyers is
within the reach of the Sherman Act we intend no diminution of the authority of the State
to regulate its professions.' 421 U.S., at 793, 95 S.Ct., at 2016. Allowing the instant
Sherman Act challenge to the disciplinary rule would have precisely that undesired effect.
Appellants seek to draw solace from Cantor. The defendant in that case, an electric
utility, distributed light bulbs to its residential customers without additional charge,
including the costs in its state-regulated utility rates. The plaintiff, a retailer who
sold light bulbs, brought suit, claiming that the utility was using its monopoly power in
the distribution of electricity to restrain competition in the sale of bulbs. The Court
held that the utility could not immunize itself from Sherman Act attack by embodying its
challenged practices in a tariff approved by a state commission. Since the disciplinary
rule at issue here is derived from the Code of Professional Responsibility of the American
Bar Association, [FN12] appellants argue by analogy to Cantor that no immunity should
result from the bar's success in having the Code adopted by the State. They also assert
that the interest embodied in the Sherman Act must prevail over the state interest in
regulating the bar. See 428 U.S., at 595, 96 S.Ct., at 3119. Particularly is this the
case, they claim, because the advertising ban is not tailored so as to intrude upon the
federal interest to the minimum extent necessary. See id., at 596 n. 34, and 597, 96
S.Ct., at 3119, and 3120.
FN12. Rule 29(a) of the Supreme Court of Arizona, 17A Ariz.Rev.Stat., p. 26 (Supp. 1976),
provides:
'The duties and obligations of members (of the bar) shall be as prescribed by the Code of
Professional Responsibility of the American Bar Association, effective November 1, 1970,
as amended by this Court.' The challenged rule, DR 2-101(B), is now identical with the
present version of the parallel rule, also numbered DR 2-101(B), of the ABA Code of
Professional Responsibility, as amended to August 1976.
We believe, however, that the context in which Cantor arose is critical. First, and most
obviously, Cantor would have been an entirely different case if the claim had been
directed against a public official or public agency, rather than against a private party.
[FN13] Here, the appellants' claims are against the State. The Arizona Supreme Court is
the real party in interest; it adopted the rules, and it is the ultimate trier of fact and
law in the enforcement process. In re Wilson, 106 Ariz. 34, 470 P.2d 441 (1970). Although
the State Bar plays a part in the enforcement of the rules, its role is completely defined
by the court; the appellee acts as the agent of the court under its continuous
supervision.
FN13. Mr. Justice Stevens, in a portion of his opinion in Cantor that was joined by
Brennan, White, and Marshall, JJ., observed the Parker v. Brown was a suit against public
officials, whereas in Cantor the claims were directed against only a private defendant.
428 U.S., at 585-592, 600-601, 96 S.Ct., at 3114-3117, 3121-3122. The dissenters in Cantor
would have applied the state-action exemption regardless of the identity of the
defendants. Id., at 615-617, 96 S.Ct., at 3129 3130 (Stewart, J., joined by Powell and
Rehnquist, JJ.).
Second, the Court emphasized in Cantor that the State had no independent regulatory
interest in the market for light bulbs. 428 U.S., at 584-585, 96 S.Ct., at 3114; id., at
604-605, 612-614, 96 S.Ct., at 3123-3124, 3127-3128 (concurring opinions). There was no
suggestion that the bulb program was justified by flaws in the competitive market or was a
response to health or safety concerns. And an exemption for the program was not essential
to the State's regulation of electric utilities. In contrast, the regulation of the
activities of the bar is at the core of the State's power to protect the public. Indeed,
this Court in Goldfarb acknowledged that '(t)he interest of the States in regulating
lawyers is especially great since lawyers are essential to the primary governmental
function of administering justice, and have historically been 'officers of the
courts." 421 U.S., at 792, 95 S.Ct., at 2016. See Cohen v. Hurley, 366 U.S. 117,
123-124, 81 S.Ct. 954, 958, 6 L.Ed.2d 156 (1961). [FN14] More specifically, controls over
solicitation and advertising by attorneys have long been subject to the State's oversight.
[FN15] Federal interference with a State's traditional regulation of a profession is
entirely unlike the intrusion the Court sanctioned in Cantor. [FN16]
FN14. Cohen v. Hurley, in other respects, has been overruled. Spevack v. Klein, 385 U.S.
511, 87 S.Ct. 625, 17 L.Ed.2d 574 (1967).
FN15. The limitation on advertising by attorneys in Arizona seems to have commenced in
1919 with the incorporation by reference of the American Bar Association's 1908 Canons of
Professional Ethics into Arizona's statutory law. 1919 Ariz.Sess.Laws, c. 158.
FN16. Indeed, our decision today on the Sherman Act issue was presaged in Virginia
Pharmacy Board v. Virginia Consumer Council, 425 U.S. 748, 770, 96 S.Ct. 1817, 1829, 48
L.Ed.2d 346 (1976). We noted there: 'Virginia is free to require
whatever professional standards it wishes of its pharmacists; it may subsidize them or
protect them from competition in other ways. Cf. Parker v. Brown, 317 U.S. 341, 63 S.Ct.
307, 87 L.Ed. 315 (1943).'
Finally, the light-bulb program in Cantor was instigated by the utility with only the
acquiescence of the state regulatory commission. The State's incorporation of the program
into the tariff reflected its conclusion that the utility was authorized to employ the
practice if it so desired. See 428 U.S., at 594, and n. 31, 96 S.Ct., at 3118. The
situation now before us is entirely different. The disciplinary rules reflect a clear
articulation of the State's policy with regard to professional behavior. Moreover, as the
instant case shows, the rules are subject to pointed re-examination by the policymaker the
Arizona Supreme Court in enforcement proceedings. Our concern that federal policy is being
unnecessarily and inappropriately subordinated to state policy is reduced in such a
situation; we deem it significant that the state policy is so clearly and affirmatively
expressed and that the State's supervision is so active.
We conclude that the Arizona Supreme Court's determination that appellants' Sherman Act
claim is barred by the Parker v. Brown exemption must be affirmed.
III
The First Amendment
A
Last Term, in Virginia Pharmacy Board v. Virginia Consumer Council, 425 U.S. 748, 96 S.Ct.
1817, 48 L.Ed.2d 346 (1976), the Court considered the validity under the First Amendment
of a Virginia statute declaring that a pharmacist was guilty of 'unprofessional conduct'
if he advertised prescription drug prices. The pharmacist would then be subject to a
monetary penalty or the suspension or revocation of his license. The statute thus
effectively prevented the advertising of prescription drug price information. We
recognized that the pharmacist who desired to advertise did not wish to report any
particularly newsworthy fact or to comment on any cultural, philosophical, or political
subject; his desired communication was characterized simply: "I will sell you the X
prescription drug at the Y price." Id., at 761, 96 S.Ct., at 1825. Nonetheless, we
held that commercial speech of that kind was entitled to the protection of the First
Amendment.
Our analysis began, ibid., with the observation that our cases long have protected speech
even though it is in the form of a paid advertisement, Buckley v. Valeo, 424 U.S. 1, 96
S.Ct. 612, 46 L.Ed.2d 659 (1976); New York Times Co. v. Sullivan, 376 U.S. 254, 84 S.Ct.
710, 11 L.Ed.2d 686 (1964); in a form that is sold for profit, Smith v. California, 361
U.S. 147, 80 S.Ct. 215, 4 L.Ed.2d 205 (1959); Murdock v. Pennsylvania, 319 U.S. 105, 63
S.Ct. 870, 87 L.Ed. 1292 (1943); or in the form of a solicitation to pay or contribute
money, New York Times Co. v. Sullivan, supra; Cantwell v. Connecticut, 310 U.S. 296, 60
S.Ct. 900, 84 L.Ed. 1213 (1940). If commercial speech is to be distinguished, it 'must be
distinguished by its content.' 425 U.S., at 761, 96 S.Ct., at 1825. But a consideration of
competing interests reinforced our view that such speech should not be withdrawn from
protection merely because it proposed a mundane commercial transaction. Even though the
speaker's interest is largely economic, the Court has protected such speech in certain
contexts. See, e. g., NLRB v. Gissel Packing Co., 395 U.S. 575, 89 S.Ct. 1918, 23 L.Ed.2d
547 (1969); Thornhill v. Alabama, 310 U.S. 88, 60 S.Ct. 736, 84 L.Ed. 1093 (1940). The
listener's interest is substantial: the consumer's concern for the free flow of commercial
speech often may be far keener than his concern for urgent political dialogue. Moreover,
significant societal interests are served by such speech. Advertising, though entirely
commercial, may often carry information of import to significant issues of the day. See
Bigelow v. Virginia, 421 U.S. 809, 95 S.Ct. 2222, 44 L.Ed.2d 600 (1975). And commercial
speech serves to inform the public of the availability, nature, and prices of products and
services, and thus performs an indispensable role in the allocation of resources in a free
enterprise system. See FTC v. Procter & Gamble Co., 386 U.S. 568, 603-604, 87 S.Ct.
1224, 1242-1243, 18 L.Ed.2d 303 (1967) (Harlan, J., concurring). In short, such speech
serves individual and societal interests in assuring informed and reliable decisionmaking.
425 U.S., at 761-765, 96 S.Ct., at 1825-1827.
Arrayed against these substantial interests in the free flow of commercial speech were a
number of proffered justifications for the advertising ban. Central among them were claims
that the ban was essential to the maintenance of professionalism among licensed
pharmacists. It was asserted that advertising would create price competition that might
cause the pharmacist to economize at the customer's expense. He might reduce or eliminate
the truly professional portions of his services: the maintenance and packaging of drugs so
as to assure their effectiveness, and the supplementation on occasion of the prescribing
physician's advice as to use. Moreover, it was said, advertising would cause consumers to
price-shop, thereby undermining the pharmacist's effort to monitor the drug use of a
regular customer so as to ensure that the prescribed drug would not provoke an allergic
reaction or be incompatible with another substance the customer was consuming. Finally, it
was argued that advertising would reduce the image of the pharmacist as a skilled and
specialized craftsman an image that was said to attract talent to the profession and to
reinforce the good habits of those in it to that of a mere shopkeeper. Id., at 766-768, 96
S.Ct., at 1828-1829.
Although acknowledging that the State had a strong interest in maintaining professionalism
among pharmacists, this Court concluded that the proffered justifications were inadequate
to support the advertising ban. High professional standards were assured in large part by
the close regulation to which pharmacists in Virginia were subject. Id., at 768, 96 S.Ct.,
at 1829. And we observed that 'on close inspection it is seen that the State's
protectiveness of its citizens rests in large measure on the advantages of their being
kept in ignorance.' Id., at 769, 96 S.Ct., at 1829. But we noted the presence of a potent
alternative to this 'highly paternalistic' approach: 'That alternative is to assume that
this information is not in itself harmful, that people will perceive their own best
interests if only they are well enough informed, and that the best means to that end is to
open the channels of communication rather than to close them.' Id., at 770, 96 S.Ct., at
1829. The choice between the dangers of suppressing information and the dangers arising
from its free flow was seen as precisely the choice 'that the First Amendment makes for
us.' Ibid. See also linmark Associates, Inc. v. Willingboro, 431 U.S. 85, 97, 97 S.Ct.
1614, 52 L.Ed.2d 155 (1977).
We have set out this detailed summary of the Pharmacy opinion because the conclusion that
Arizona's disciplinary rule is violative of the First Amendment might be said to flow a
fortiori from it. Like the Virginia statutes, the disciplinary rule serves to inhibit the
free flow of commercial information and to keep the public in ignorance. Because of the
possibility, however, that the differences among professions might bring different
constitutional considerations into play, we specifically reserved judgment as to other
professions. [FN17]
FN17. 'We stress that we have considered in this case the regulation of commercial
advertising by pharmacists. Although we express no opinion as to other professions, the
distinctions, historical and functional, between professions, may require consideration of
quite different factors. Physicians and lawyers, for example, do not dispense standardized
products; they render professional services of almost infinite variety and nature, with
the consequent enhanced possibility for confusion and deception if they were to undertake
certain kinds of advertising.' 425 U.S., at 773 n. 25, 96 S.Ct., at 1831 (emphasis in
original). See id., at 773-775, 96 S.Ct., at 1831-1832 (concurring opinion).
In the instant case we are confronted with the arguments directed explicitly toward the
regulation of advertising by licensed attorneys.
B
The issue presently before us is a narrow one. First, we need not address the peculiar
problems associated with advertising claims relating to the quality of legal services.
Such claims probably are not susceptible of precise measurement or verification and, under
some circumstances, might well be deceptive or misleading to the public, or even false.
Appellee does not suggest, nor do we perceive, that appellants' advertisement contained
claims, extravagant or otherwise, as to the quality of services. Accordingly, we leave
that issue for another day. Second, we also need not resolve the problems associated with
in- person solicitation of clients at the hospital room or the accident site, or in any
other situation that breeds undue influence by attorneys or their agents or 'runners.'
Activity of that kind might well pose dangers of overreaching and misrepresentation not
encountered in newspaper announcement advertising. Hence, this issue also is not before
us. Third, we note that appellee's criticism of advertising by attorneys does not apply
with much force to some of the basic factual content of advertising: information as to the
attorney's name, address, and telephone number, office hours, and the like. The American
Bar Association itself has a provision in its current Code of Professional Responsibility
that would allow the disclosure of such information, and more, in the classified section
of the telephone directory. DR 2-102(A)(6) (1976). [FN18] We recognize, however, that an
advertising diet limited to such spartan fare would provide scant nourishment.
FN18. The disciplinary rule, after referring to a listing in 'a reputable
law list,' legal directory, or classified section of a telephone
company directory, states:
'The published data may include only the following: name, including name of law firm and
names of professional associates; addresses and telephone numbers; one or more fields of
law in which the lawyer or law firm concentrates, to the extent not prohibited by the
authority having jurisdiction under state law over the subject; a statement that practice
is limited to one or more fields of law, to the extent not prohibited by the authority
having jurisdiction under state law over the subject of limitation of practice by lawyers;
a statement that the lawyer or law firm specializes in a particular field of law or law
practice, to the extent permitted by the authority having jurisdiction under state law
over the subject of specialization by lawyers and in accordance with rules prescribed by
that authority; date and place of birth; date and place of admission to the bar of state
and federal courts; schools attended, with dates of graduation, degrees, and other
scholastic distinctions; public or quasi-public offices; military service; posts of honor;
legal authorships; legal teaching positions; memberships, offices, committee assignments,
and section memberships in bar associations; memberships and offices in legal fraternities
and legal societies; technical and professional licenses; memberships in scientific,
technical and professional associations and societies; foreign language
ability; names and addresses of references, and, with their consent, names of clients
regularly represented; whether credit cards or other credit arrangements are accepted;
office and other hours of availability; a statement of legal fees for an initial
consultation or the availability upon request of a written schedule of fees or an estimate
of the fee to be charged for the specific services; provided, all such published data
shall be disseminated only to the extent and in such format and language uniformly
applicable to all lawyers, as prescribed by the authority having jurisdiction by state law
over the subject. This proviso is not applicable in any state unless and until it is
implemented by such authority in that state.'
The heart of the dispute before us today is whether lawyers also may constitutionally
advertise the prices at which certain routine services will be performed. Numerous
justifications are proffered for the restriction of such price advertising. We consider
each in turn:
1. The Adverse Effect on Professionalism. Appellee places particular emphasis on the
adverse effects that it feels price advertising will have on the legal profession. The key
to professionalism, it is argued, is the sense of pride that involvement in the discipline
generates. It is claimed that price advertising will bring about commercialization, which
will undermine the attorney's sense of dignity and self-worth. The hustle of the
marketplace will adversely affect the profession's service orientation, and irreparably
damage the delicate balance between the lawyer's need to earn and his obligation
selflessly to serve. Advertising is also said to erode the client's trust in his attorney:
Once the client perceives that the lawyer is motivated by profit, his confidence that the
attorney is acting out of a commitment to the client's welfare is jeopardized. And
advertising is said to tarnish the dignified public image of the profession.
We recognize, of course, and commend the spirit of public service with which the
profession of law is practiced and to which it is dedicated. The present Members of this
Court, licensed attorneys all, could not feel otherwise. And we would have reason to pause
if we felt that our decision today would undercut that spirit. But we find the postulated
connection between advertising and the erosion of true professionalism to be severely
strained. At its core, the argument presumes that attorneys must conceal from themselves
and from their clients the real-life fact that lawyers earn their livelihood at the bar.
We suspect that few attorneys engage in such self-deception. [FN19] And rare is the
client, moreover, even one of the modest means, who enlists the aid of an attorney with
the expectation that his services will be rendered free of charge. See B. Christensen,
Lawyers for People of Moderate Means 152-153 (1970). In fact, the American Bar Association
advises that an attorney should reach 'a clear agreement with his client as to the basis
of the fee charges to be made,' and that this is to be done '(a)s soon as feasible after a
lawyer has been employed.' Code of Professional Responsibility EC 2-19 (1976). If the
commercial basis of the relationship is to be promptly disclosed on ethical grounds, once
the client is in the office, it seems inconsistent to condemn the candid revelation of the
same information before he arrives at that office.
FN19. Counsel for the appellee at oral argument readily stated: 'We all know that law
offices are big businesses, that they may have billion-dollar or million-dollar clients,
they're run with computers, and all the rest. And so the argument may be made that to term
them noncommercial is sanctimonious humbug.' Tr. of Oral Arg. 64.
Moreover, the assertion that advertising will diminish the attorney's reputation in the
community is open to question. Bankers and engineers advertise, [FN20] and yet these
professions are not regarded as undignified. In fact, it has been suggested that the
failure of lawyers to advertise creates public disillusionment with the profession. [FN21]
The absence of advertising may be seen to reflect the profession's failure to reach out
and serve the community: Studies reveal that many persons do not obtain counsel even when
they perceive a need because of the feared price of services [FN22] or because of an
inability to locate a competent attorney. [FN23] Indeed, cynicism with regard to the
profession may be created by the fact that it long has publicly eschewed advertising,
while condoning the actions of the attorney who structures his social or civic
associations so as to provide contacts with potential clients.
FN20. See B. Christensen, Lawyers for People of Moderate Means 151-152 (1970); Note,
Advertising Solicitation and the Profession's Duty to Make Legal Counsel Available, 81
Yale L.J. 1181, 1190 (1972). Indeed, it appears that even the medical profession now views
the alleged adverse effect of advertising in a somewhat different light from the appellee.
A Statement of the Judicial Council of the American Medical Association provides in part:
'Advertising The Principles (of Medical Ethics) do not proscribe advertising; they
proscribe the solicitation of patients. . . . The public is entitled to know the names of
physicians, the type of their practices, the location of their offices, their office
hours, and other useful information that will enable people to make a more informed choice
of physician.
'The physician may furnish this information through the accepted local media of
advertising or communication, which are open to all physicians on like
conditions. Office signs, professional cards, dignified announcements, telephone directory
listings, and reputable directories are examples of acceptable media for making
information available to the public.
'A physician may give biographical and other relevant data for listing in a reputable
directory. . . . If the physician, at his option, chooses to supply fee information, the
published data may include his charge for a standard office visit or his fee or range of
fees for specific types of services, provided disclosure is made of the variable and other
pertinent factors affecting the amount of the fee specified. The published data may
include other relevant facts about the physician, but false, misleading, or deceptive
statements or claims should be avoided.' 235 J.A.M.A. 2328 (1976).
FN21. See M. Freedman, Lawyers' Ethics in an Adversary System 115-116 (1975); Branca &
Steinberg, Attorney Fee Schedules and Legal Advertising: The Implications of Goldfarb, 24
UCLA Rev. 475, 516-517 (1977).
FN22. The Report of the Special Committee on the Availability of Legal Services, adopted
by the House of Delegates of the American Bar Association, and contained in the ABA's
Revised Handbook on Prepaid Legal Services (1972), states, at 26: 'We are persuaded that
the actual or feared price of such services coupled with a sense of
unequal bargaining status is a significant barrier to wider utilization of legal
services.' See also E. Koos, The Family and The Law 7 (1948) (survey in which 47.6% of
working- class families cited cost as the reason for not using a lawyer); P. Murphy &
S. Walkowski, Compilation of Reference Materials on Prepaid Legal Services 2-3 (1973)
(summarizing study in which 514 of 1,040 respondents gave expected cost as reason for not
using a lawyer's services despite a perceived need). There are indications that fear of
cost is unrealistic. See Petition of the Board of Governors of the District of Columbia
Bar for Amendments to Rule X of the Rules Governing the Bar of the District of Columbia
(1976), reprinted in the App. to Brief for United States as Amicus Curiae 10a, 24a-25a
(reporting study in which middleclass consumers overestimated lawyers' fees by 91% for the
drawing of a simple will, 340% for reading and advising on a 2-page installment sales
contract, and 123% for 30 minutes of consultation). See also F. Marks, R. Hallauer, &
R. Clifton, The Shreveport Plan: An Experiment in the Delivery of Legal Services 50-52
(1974).
FN23. The preliminary release of some of the results of a survey conducted by the ABA
Special Committee to Survey Legal Needs in collaboration with the American Bar Foundation
reveals 48.7% strongly agreed and another 30.2% slightly agreed with the
statement that people do not go to lawyers because they have no way of knowing which
lawyers are competent to handle their particular problems. ABA, Legal Services and the
Public, 3 Alternatives 15 (Jan. 1976). See B. Curran & F. Spalding, The Legal Needs of
the Public 96 (Preliminary Report 1974) (an earlier report concerning the same survey).
Although advertising by itself is not adequate to deal with this problem completely, it
can provide some of the information that a consumer needs to make an intelligent
selection.
It appears that the ban on advertising originated as a rule of etiquette and not as a rule
of ethics. Early lawyers in Great Britain viewed the law as a form of public service,
rather than as a means of earning a living, and they looked down on 'trade' as unseemly.
See H. Drinker, Legal Ethics, 5, 210-211 (1953). [FN24] Eventually, the attitude toward
advertising fostered by this view evolved into an aspect of the ethics of the profession.
Id., at 211. But habit and tradition are not in themselves an adequate answer to a
constitutional challenge. In this day, we do not belittle the person who earns his living
by the strength of his arm or the force of his mind. Since the belief that lawyers are
somehow 'above' trade has become an anachronism, the historical foundation for the
advertising restraint has crumbled.
FN24. The British view may be changing. An official British Commission recently presented
reports to Parliament recommending that solicitors be permitted to advertise. Monopolies
and Mergers Commission, Services of Solicitors in England and Wales: A Report on the
Supply of Services of Solicitors in England and Wales in Relation to Restrictions on
Advertising 39 41 (1976); Monopolies and Mergers Commission, Services of Solicitors in
Scotland: A Report on the Supply of Services of Solicitors in Scotland in Relation to
Restrictions on Advertising 31-34 (1976). A companion study concerning barristers
recommended that no changes be made in the restrictions upon their advertising, chiefly
because barristers are not hired directly by laymen. Monopolies and Mergers Commission,
Barristers' Services: A Report on the Supply of Barristers' Services in Relation to
Restrictions on Advertising 21-24 (1976).
2. The Inherently Misleading Nature of Attorney Advertising. It is argued that advertising
of legal services inevitably will be misleading (a) because such services are so
individualized with regard to content and quality as to prevent informed comparison on the
basis of an advertisement, (b) because the consumer of legal services is unable to
determine in advance just what services he needs, and (c) because advertising by attorneys
will highlight irrelevant factors and fail to show the relevant factor of skill.
We are not persuaded that restrained professional advertising by lawyers inevitably will
be misleading. Although many services performed by attorneys are indeed unique, it is
doubtful that any attorney would or could advertise fixed prices for services of that
type. [FN25] The only services that lend themselves to advertising are the routine ones:
the uncontested divorce, the simple adoption, the uncontested personal bankruptcy, the
change of name, and the like the very services advertised by appellants. [FN26] Although
the precise service demanded in each task may vary slightly, and although legal services
are not fungible, these facts do not make advertising misleading so long as the attorney
does the necessary work at the advertised price. [FN27] The argument that legal services
are so unique that fixed rates cannot meaningfully be established is refuted by the record
in this case: The appellee, State Bar itself sponsors a Legal Services Program in which
the participating attorneys agree to perform services like those advertised by the
appellants at standardized rates. App. 459-478. Indeed, until the decision of this Court
in Goldfarb v. Virginia State Bar, 421 U.S. 773, 95 S.Ct. 2004, 44 L.Ed.2d 572 (1975), the
Maricopa County Bar Association apparently had a schedule of suggested minimum fees for
standard legal tasks. App. 355. We thus find of little force the assertion that
advertising is misleading because of an inherent lack of standardization in legal
services. [FN28]
FN25. See Morgan, The Evolving Concept of Professional Responsibility, 90 Harv.L.Rev. 702,
741 (1977); Note, Advertising, Solicitation and the Profession's Duty to Make Legal
Counsel Available, 81 Yale L.J. 1181, 1203 (1972). Economic considerations suggest that
advertising is a more significant force in the marketing of inexpensive and frequently
used goods and services with mass markets than in the marketing of unique products or
services.
FN26. Moreover, we see nothing that is misleading in the advertisement of the cost of an
initial half-hour consultation. The American Bar Association's Code of Professional
Responsibility DR 2-102(A)(6) (1976), permits the disclosure of such fee information in
the classified section of a telephone directory. See n. 18, supra. If the information is
not misleading when published in a telephone directory, it is difficult to see why it
becomes misleading when published in a newspaper.
FN27. One commentator has observed: '(A) moment's reflection reveals that the same
argument can be made for barbers; rarely are two haircuts identical, but that does not
mean that barbers cannot quote a standard price. Lawyers perform countless relatively
standardized services which vary somewhat in complexity but not so much
as to make each job utterly unique.' Morgan, supra, n. 25, at 714.
FN28. THE CHIEF JUSTICE and Mr. Justice POWELL argue in dissent that advertising will be
misleading because the exact services that are included in an advertised package may not
be clearly specified or understood by the prospective client. Post, at 2710-2711, and
2713-2714. The bar, however, retains the power to define the services that must be
included in an advertised package, such as an uncontested divorce, thereby standardizing
the 'product.' We recognize that an occasional client might fail to appreciate the
complexity of his legal problem and will visit an attorney in the mistaken belief that his
difficulty can be handled at the advertised price. The misunderstanding, however, usually
will be exposed at the initial consultation, and an ethical attorney would impose, at the
most, a minimal consultation charge or no charge at all for the discussion. If the client
decides to have work performed, a fee could be negotiated in the normal manner. The client
is thus in largely the same position as he would be if there were no advertising. In light
of the benefits of advertising to those whose problem can be resolved at the advertised
price, suppression is not warranted on account of the occasional client who misperceives
his legal difficulties.
The second component of the argument that advertising ignores the diagnostic role fares
little better. [FN29] It is unlikely that many people go to an attorney merely to
ascertain if they have a clean bill of legal health. Rather, attorneys are likely to be
employed to perform specific tasks. Although the client may not know the detail involved
in performing the task, he no doubt is able to identify the service he desires at the
level of generality to which advertising lends itself.
FN29. The same argument could be made about the advertising of abortion services. Although
the layman may not know all the details of the medical procedure and may not always be
able accurately to diagnose pregnancy, such advertising has certain First Amendment
protection. Bigelow v. Virginia, 421 U.S. 809, 95 S.Ct. 2222, 44 L.Ed.2d 600 (1975).
The third component is not without merit: Advertising does not provide a complete
foundation on which to select an attorney. But it seems peculiar to deny the consumer, on
the ground that the information is incomplete, at least some of the relevant information
needed to reach an informed decision. The alternative the prohibition of advertising
serves only to restrict the information that flows to consumers. [FN30] Moreover, the
argument assumes that the public is not sophisticated enough to realize the limitations of
advertising, and that the public is better kept in ignorance than trusted with correct but
incomplete information. We suspect the argument rests on an underestimation of the public.
In any event, we view as dubious any justification that is based on the benefits of public
ignorance. See Virginia Pharmacy Board v. Virginia Consumer Council, 425 U.S., at 769-770,
96 S.Ct., at 1829-1830. Although, of course, the bar retains the power to correct
omissions that have the effect of presenting an inaccurate picture, the preferred remedy
is more disclosure, rather than less. If the naivete $ of the public will cause
advertising by attorneys to be misleading, then it is the bar's role to assure that the
populace is sufficiently informed as to enable it to place advertising in its proper
perspective.
FN30. It might be argued that advertising is undesirable because it allows the potential
client to substitute advertising for reputational information in selecting an appropriate
attorney. See, e. g., Note, Sherman Act Scrutiny of Bar Restraints on Advertising and
Solicitation by Attorneys, 62 Va.L.Rev. 1135, 1152-1157 (1976). Since in a referral system
relying on reputation an attorney's future business is partially dependent on current
performance, such a system has the benefit both of providing a mechanism for disciplining
misconduct and of creating an incentive for an attorney to do a better
job for his present clients. Although the system may have worked when the typical lawyer
practiced in a small, homogeneous community in which ascertaining reputational information
was easy for a consumer, commentators have seriously questioned its current efficacy. See,
e. g., B. Christensen, Lawyers for People of Moderate Means 128-135 (1970); Note, Bar
Restrictions on Dissemination of Information about Legal Services, 22 UCLA Rev. 483, 500
(1974); Note, Sherman Act Scrutiny, supra, at 1156-1157. The trends of urbanization and
specialization long since have moved the typical practice of law from its small-town
setting. See R. Pound, The Lawyer from Antiquity to Modern Times 242 (1953). Information
as to the qualifications of lawyers is not available to many. See n. 23, supra. And, if
available, it may be inaccurate or biased. See Note, Sherman Act Scrutiny, supra, at 1157.
3. The Adverse Effect on the Administration of Justice. Advertising is said to have the
undesirable effect of stirring up litigation. [FN31] The judicial machinery is designed to
serve those who feel sufficiently aggrieved to bring forward their claims. Advertising, it
is argued, serves to encourage the assertion of legal rights in the courts, thereby
undesirably unsettling societal repose. There is even a suggestion of barratry. See, e.
g., Comment, A Critical Analysis of Rules Against Solicitation by Lawyers, 25 U.Chi.L.Rev.
674, 675-676 (1958).
FN31. It is argued that advertising also will encourage fraudulent claims. We do not
believe, however, that there is an inevitable relationship between advertising and
dishonesty. See Monopolies and Mergers Commission, Services of Solicitors in England and
Wales, supra, n. 24, at 32-33 ('The temptation to depart from the high standards required
of the profession no doubt exists, but we do not believe that solicitors would be likely
to succumb to it more easily or more frequently merely by reason of the supposed
contamination of advertising; the traditions of the profession and the sense of
responsibility of its members are in our view too strong for this to happen'). Unethical
lawyears and dishonest laymen are likely to meet even though restrictions on advertising
exist. The appropriate response to fraud is a sanction addressed to that problem alone,
not a sanction that unduly burdens a legitimate activity.
But advertising by attorneys is not an unmitigated source of harm to the administration of
justice. It may offer great benefits. Although advertising might increase the use of the
judicial machinery, we cannot accept the notion that it is always better for a person to
suffer a wrong silently than to redress it by legal action. [FN32] As the bar
acknowledges, 'the middle 70% of our population is not being reached or served adequately
by the legal profession.' ABA, Revised Handbook on Prepaid Legal Services 2 (1972). [FN33]
Among the reasons for this underutilization is fear of the cost, and an inability to
locate a suitable lawyer. See nn. 22 and 23, supra. Advertising can help to solve this
acknowledged problem: Advertising is the traditional mechanism in a free-market economy
for a supplier to inform a potential purchaser of the availability and terms of exchange.
The disciplinary rule at issue likely has served to burden access to legal services,
particularly for the not-quite-poor and the unknowledgeable. A rule allowing restrained
advertising would be in accord with the bar's obligation to 'facilitate the process of
intelligent selection of lawyers, and to assist in making legal services fully available.'
ABA Code of Professional Responsibility EC 2-1 (1976).
FN32. Decided cases reinforce this view. The Court often has recognized that collective
activity undertaken to obtain meaningful access to the courts is protected under the First
Amendment. See United Transportation Union v. State Bar of Michigan, 401 U.S. 576, 585, 91
S.Ct. 1076, 1082, 28 L.Ed.2d 339 (1971); United Mine Workers v. Illinois State Bar Ass'n,
389 U.S. 217, 222-224, 88 S.Ct. 353, 19 L.Ed.2d 426 (1967); Brotherhood of Railroad
Trainmen v. Virginia Bar, 377 U.S. 1, 7, 84 S.Ct. 1113, 1117, 12 L.Ed.2d
89 (1964); NAACP v. Button, 371 U.S. 415, 438-440, 83 S.Ct. 328, 340-341, 9 L.Ed.2d 405
(1963). It would be difficult to understand these cases if a lawsuit were somehow viewed
as an evil in itself. Underlying them was the Court's concern that the aggrieved receive
information regarding their legal rights and the means of effectuating them. This concern
applies with at least as much force to aggrieved individuals as it does to groups.
FN33. The ABA survey discussed in n. 23 indicates that 35.8% of the adult population has
never visited an attorney and another 27.9% has visited an attorney only once. 3
Alternatives, supra, n. 23, at 12. See also P. Murphy & S. Walkowski, Compilation of
Reference Materials on Prepaid Legal Services 1 (1973); Meserve, Our Forgotten Client: The
Average American, 57 A.B.A.J. 1092 (1971). Appellee concedes the existence of the problem,
but argues that advertising offers an unfortunate solution. Brief for Appellee 54-56.
4. The Undesirable Economic Effects of Advertising. It is claimed that advertising will
increase the overhead costs of the profession, and that these costs then will be passed
along to consumers in the form of increased fees. Moreover, it is claimed that the
additional cost of practice will create a substantial entry barrier, deterring or
preventing young attorneys from penetrating the market and entrenching the position of the
bar's established members.
These two arguments seem dubious at best. Neither distinguishes lawyers from others, see
Virginia Pharmacy Board v. Virginia Consumer Council, 425 U.S., at 768, 96 S.Ct., at 1828,
and neither appears relevant to the First Amendment. The ban on advertising serves to
increase the difficulty of discovering the lowest cost seller of acceptable ability. As a
result, to this extent attorneys are isolated from competition, and the incentive to price
competitively is reduced. Although it is true that the effect of advertising on the price
of services has not been demonstrated, there is revealing evidence with regard to
products; where consumers have the benefit of price advertising, retail prices often are
dramatically lower than they would be without advertising. [FN34] It is entirely possible
that advertising will serve to reduce, not advance, the cost of legal services to the
consumer. [FN35]
FN34. See Benham, The Effect of Advertising on the Price of Eyeglasses, 15 J.Law &
Econ. 337 (1972); J. Cady, Restricted Advertising and Competition: The Case of Retail
Drugs (1976). See also Virginia Pharmacy Board v. Virginia Consumer Council, 425 U.S., at
754, and n. 11, 96 S.Ct., at 1821 (noting variation in drug prices of up to 1200% in one
city).
FN35. On the one hand, advertising does increase an attorney's overhead costs, and, in
light of the underutilization of legal services by the public, see n. 33, supra, it may
increase substantially the demand for services. Both these factors will tend to increase
the price of legal services. On the other hand, the tendency of advertising to enhance
competition might be expected to produce pressures on attorneys to reduce fees. The net
effect of these competing influences is hard to estimate. We deem it significant, however,
that consumer organizations have filed briefs as amici urging that the restriction on
advertising be lifted. And we note as well that, despite the fact that advertising on
occasion might increase the price the consumer must pay, competition through advertising
is ordinarily the desired norm.
Even if advertising causes fees to drop, it is by no means clear that a loss of income to
lawyers will result. The increased volume of business generated by advertising might more
than compensate for the reduced profit per case. See Frierson, Legal Advertising,
Barrister 6, 8 (Winter 1975); Wilson, Madison Avenue, Meet the Bar, 61 A.B.A.J. 586, 588
(1975).
The entry-barrier argument is equally unpersuasive. In the absence of advertising, an
attorney must rely on his contacts with the community to generate a flow of business. In
view of the time necessary to develop such contacts, the ban in fact serves to perpetuate
the market position of established attorneys. Consideration of entry-barrier problems
would urge that advertising be allowed so as to aid the new competitor in penetrating the
market.
5. The Adverse Effect of Advertising on the Quality of Service. It is argued that the
attorney may advertise a given 'package' of service at a set price, and will be inclined
to provide, by indiscriminate use, the standard package regardless of whether it fits the
client's needs.
Restraints on advertising, however, are an ineffective way of deterring shoddy work. An
attorney who is inclined to cut quality will do so regardless of the rule on advertising.
And the advertisement of a standardized fee does not necessarily mean that the services
offered are undesirably standardized. Indeed, the assertion that an attorney who
advertises a standard fee will cut quality is substantially undermined by the fixed-fee
schedule of appellee's own prepaid Legal Services Program. Even if advertising leads to
the creation of 'legal clinics' like that of appellants' clinics that emphasize
standardized procedures for routine problems it is possible that such clinics will improve
service by reducing the likelihood of error.
6. The Difficulties of Enforcement. Finally, it is argued that the wholesale restriction
is justified by the problems of enforcement if any other course is taken. Because the
public lacks sophistication in legal matters, it may be particularly susceptible to
misleading or deceptive advertising by lawyers. After-the-fact action by the consumer
lured by such advertising may not provide a realistic restraint because of the inability
of the layman to assess whether the service he has received meets professional standards.
Thus, the vigilance of a regulatory agency will be required. But because of the numerous
purveyors of services, the overseeing of advertising will be burdensome.
It is at least somewhat incongruous for the opponents of advertising to extol the virtues
and altruism of the legal profession at one point, and, at another, to assert that its
members will seize the opportunity to mislead and distort. We suspect that, with
advertising, most lawyers will behave as they always have: They will abide by their solemn
oaths to uphold the integrity and honor of their profession and of the legal system. For
every attorney who overreaches through advertising, there will be thousands of others who
will be candid and honest and straightforward. And, of course, it will be in the latter's
interest, as in other cases of misconduct at the bar, to assist in weeding out those few
who abuse their trust.
In sum, we are not persuaded that any of the proffered justifications rise to the level of
an acceptable reason for the suppression of all advertising by attorneys.
C
In the usual case involving a restraint on speech, a showing that the challenged rule
served unconstitutionally to suppress speech would end our analysis. In the First
Amendment context, the Court has permitted attacks on overly broad statutes without
requiring that the person making the attack demonstrate that in fact his specific conduct
was protected. See, e. g., Bigelow v. Virginia, 421 U.S., at 815-816, 95 S.Ct., at 2229;
Gooding v. Wilson, 405 U.S. 518, 521-522, 92 S.Ct. 1103, 1105-1106, 31 L.Ed.2d 408 (1972);
Dombrowski v. Pfister, 380 U.S. 479, 486, 85 S.Ct. 1116, 1120, 14 L.Ed.2d 22 (1965).
Having shown that the disciplinary rule interferes with protected speech, appellants
ordinarily could expect to benefit regardless of the nature of their acts.
The First Amendment overbreadth doctrine, however, represents a departure from the
traditional rule that a person may not challenge a statute on the ground that it might be
applied unconstitutionally in circumstances other than those before the court. See, e. g.,
Broadrick v. Oklahoma, 413 U.S. 601, 610, 93 S.Ct. 2908, 2914, 37 L.Ed.2d 830 (1973);
United States v. Raines, 362 U.S. 17, 21, 80 S.Ct. 519, 522, 4 L.Ed.2d 524 (1960);
Ashwander v. TVA, 297 U.S. 288, 347, 56 S.Ct. 466, 483, 80 L.Ed. 688 (1936) (Brandeis, J.,
concurring). The reason for the special rule in First Amendment cases is apparent: An
overbroad statute might serve to chill protected speech. First Amendment interests are
fragile interests, and a person who contemplates protected activity might be discouraged
by the in terrorem effect of the statute. See NAACP v. Button, 371 U.S. 415, 433, 83 S.Ct.
328, 338, 9 L.Ed.2d 405 (1963). Indeed, such a person might choose not to speak because of
uncertainty whether his claim of privilege would prevail if challenged. The use of
overbreadth analysis reflects the conclusion that the possible harm to society from
allowing unprotected speech to go unpunished is outweighed by the possibility that
protected speech will be muted.
But the justification for the application of overbreadth analysis applies weakly, if at
all, in the ordinary commercial context. As was acknowledged in Virginia Pharmacy Board v.
Virginia Consumer Council, 425 U.S., at 771 n. 24, 96 S.Ct., at 1830, there are
'commonsense differences' between commercial speech and other varieties. See also id., at
775-781, 96 S.Ct., at 1832-1835 (concurring opinion). Since advertising is linked to
commercial well-being, it seems unlikely that such speech is particularly susceptible to
being crushed by overbroad regulation. See id., at 771-772 n. 24, 96 S.Ct. at 1830-1831.
Moreover, concerns for uncertainty in determining the scope of protection are reduced; the
advertiser seeks to disseminate information about a product or service that he provides,
and presumably he can determine more readily than others whether his speech is truthful
and protected. Ibid. Since overbreadth has been described by this Court as 'strong
medicine,' which 'has been employed . . . sparingly and only as a last resort,' Broadrick
v. Oklahoma, 413 U.S., at 613, 93 S.Ct., at 2916, we decline to apply it to professional
advertising, a context where it is not necessary to further its intended objective. Cf.
Bigelow v. Virginia, 421 U.S., at 817-818, 95 S.Ct., at 2230.
Is, then, appellants' advertisement outside the scope of basic First Amendment protection?
Aside from general claims as to the undesirability of any advertising by attorneys, a
matter considered above, appellee argues that appellants' advertisement is misleading, and
hence unprotected, in three particulars: (a) the advertisement makes reference to a 'legal
clinic,' an allegedly undefined term; (b) the advertisement claims that appellants offer
services at 'very reasonable' prices, and, at least with regard to an uncontested divorce,
the advertised price is not a bargain; and (c) the advertisement does not inform the
consumer that he may obtain a name change without the services of an attorney. Tr. of Oral
Arg. 56-57. On this record, these assertions are unpersuasive. We suspect that the public
would readily understand the term 'legal clinic' if, indeed, it focused on the term at all
to refer to an operation like that of appellants' that is geared to provide standardized
and multiple services. In fact, in his deposition the president of the State Bar of
Arizona observed that there was a committee of the bar 'exploring the ways in which the
legal clinic concept can be properly developed.' App. 375; see id., at 401. See also id.,
at 84-85 (testimony of appellants). And the clinical concept in the sister profession of
medicine surely by now is publicly acknowledged and understood.
As to the cost of an uncontested divorce, appellee's counsel stated at oral argument that
this runs from $150 to $300 in the area. Tr. of Oral Arg. 58. Appellants advertised a fee
of $175 plus a $20 court filing fee, a rate that seems 'very reasonable' in light of the
customary charge. Appellee's own Legal Services Program sets the rate for an uncontested
divorce at $250. App. 473. Of course, advertising will permit the comparison of rates
among competitors, thus revealing if the rates are reasonable.
As to the final argument the failure to disclose that a name change might be accomplished
by the client without the aid of an attorney we need only note that most legal services
may be performed legally by the citizen for himself. See Faretta v. California, 422 U.S.
806, 95 S.Ct. 2525, 45 L.Ed.2d 562 (1975); ABA Code of Professional Responsibility EC 3-7
(1976). The record does not unambiguously reveal some of the relevant facts in determining
whether the nondisclosure is misleading, such as how complicated the procedure is and
whether the State provides assistance for laymen. The deposition of one appellant,
however, reflects that when he ascertained that a name change required only the correction
of a record or the like, he frequently would send the client to effect the change himself.
[FN36] App. 112.
FN36. The same appellant, however, stated: '(I)'s not my job to inform a prospective
client that he needn't employ a lawyer to handle his work.' App. 112-113.
We conclude that it has not been demonstrated that the advertisement at issue could be
suppressed.
IV
In holding that advertising by attorneys may not be subjected to
blanket suppression, and that the advertisement at issue is protected, we, of course, do
not hold that advertising by attorneys may not be regulated in any way. We mention some of
the clearly permissible limitations on advertising not foreclosed by our holding.
Advertising that is false, deceptive, or misleading of course is subject to restraint. See
Virginia Pharmacy Board v. Virginia Citizens Consumer Council, 425 U.S., at 771-772, and
n. 24, 96 S.Ct., at 1830-1831. Since the advertiser knows his product and has a commercial
interest in its dissemination, we have little worry that regulation to assure truthfulness
will discourage protected speech. Id., at 771-772, n. 24, 96 S.Ct. at 1830. And any
concern that strict requirements for truthfulness will undesirably inhibit spontaneity
seems inapplicable because commercial speech generally is calculated. Indeed, the public
and private benefits from commercial speech derive from confidence in its accuracy and
reliability. Thus, the leeway for untruthful or misleading expression that has been
allowed in other contexts has little force in the commercial arena. Compare Gertz v.
Robert Welch, Inc., 418 U.S. 323, 339-341, 94 S.Ct. 2997, 3006-3007, 41 L.Ed.2d 789
(1974), and Cantwell v. Connecticut, 310 U.S., at 310, 60 S.Ct., at 906, with NLRB v.
Gissel Packing Co., 395 U.S., at 618, 89 S.Ct., at 1942. In fact, because the public lacks
sophistication concerning legal services, misstatements that might be overlooked or deemed
unimportant in other advertising may be found quite inappropriate in legal advertising.
[FN37] For example, advertising claims as to the quality of services a matter we do not
address today are not susceptible of measurement or verification; accordingly, such claims
may be so likely to be misleading as to warrant restriction. Similar objections might
justify restraints on in-person solicitation. We do not foreclose the possibility that
some limited supplementation, by way of warning or disclaimer or the like, might be
required of even an advertisement of the kind ruled upon today so as to assure that the
consumer is not misled. In sum, we recognize that many of the problems in defining the
boundary between deceptive and nondeceptive advertising remain to be resolved, and we
expect that the bar will have a special role to play in assuring that advertising by
attorneys flows both freely and cleanly.
FN37. The determination whether an advertisement is misleading requires consideration of
the legal sophistication of its audience. Cf. Feil v. FTC, 285 F.2d 879, 897 (CA9 1960).
Thus, different degrees of regulation may be appropriate in different areas.
As with other varieties of speech, it follows as well that there
may be reasonable restrictions on the time, place, and manner of advertising. See Virginia
Pharmacy Board v. Virginia Consumer Council, 425 U.S., at 771, 96 S.Ct., at 1830.
Advertising concerning transactions that are themselves illegal obviously may be
suppressed. See Pittsburgh Press Co. v. Human Relations Comm'n, 413 U.S. 376, 388, 93
S.Ct. 2553, 37 L.Ed.2d 669 (1973). And the special problems of advertising on the
electronic broadcast media will warrant special consideration. Cf. Capital Broadcasting
Co. v. Mitchell, 333 F.Supp. 582 (DC 1971), summarily aff'd sub nom. Capital Broadcasting
Co. v. Acting Attorney General, 405 U.S. 1000, 92 S.Ct. 1289, 31 L.Ed.2d 472 (1972).
The constitutional issue in this case is only whether the State may prevent the
publication in a newspaper of appellants' truthful advertisement concerning the
availability and terms of routine legal services. We rule simply that the flow of such
information may not be restrained, and we therefore hold the present application of the
disciplinary rule against appellants to be violative of the First Amendment.
The judgment of the Supreme Court of Arizona is therefore affirmed in part and reversed in
part.
It is so ordered.
APPENDIX TO OPINION OF THE COURT
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Mr. Chief Justice BURGER, concurring in part and dissenting in part.
I am in general agreement with Mr. Justice POWELL'S analysis and with Part II of the
Court's opinion. I particularly agree with Mr. Justice POWELL'S statement that 'today's
decision will effect profound changes in the practice of law.' Post, at 2712. Although the
exact effect of those changes cannot now be known, I fear that they will be injurious to
those whom the ban on legal advertising was designed to protect the members of the general
public in need of legal services.
Some Members of the Court apparently believe that the present case is controlled by our
holding one year ago in Virginia State Board of Pharmacy v. Virginia Consumer Council,
Inc., 425 U.S. 748, 96 S.Ct. 1817, 48 L.Ed.2d 346 (1976). However, I had thought that we
made most explicit that our holding there rested on the fact that the advertisement of
standardized, prepackaged, name-brand drugs was at issue. Id., at 773 n. 25, 96 S.Ct., at
1831. In that context, the prohibition on price advertising, which had served a useful
function in the days of individually compounded medicines, was no longer tied to the
conditions which had given it birth. The same cannot be said with respect to legal
services which, by necessity, must vary greatly from case to case. Indeed, I find it
difficult, if not impossible, to identify categories of legal problems or services which
are fungible in nature. For example, Mr. Justice POWELL persuasively demonstrates the
fallacy of any notion that even an uncontested divorce can be 'standard.' Post, at 2713. A
'reasonable charge' for such a divorce could be $195, as the appellants wish to advertise,
or it could reasonably be a great deal more, depending on such variables as child custody,
alimony, support, or any property settlement. Because legal services can rarely, if ever,
be 'standardized' and because potential clients rarely know in advance what services they
do in fact need, price advertising can never give the public an accurate picture on which
to base its selection of an attorney. Indeed, in the context of legal services, such
incomplete information could be worse than no information at all. [FN1] It could become a
trap for the unwary.
FN1. I express no view on Mr. Justice POWELL'S conclusion that the advertisement of an
attorney's initial consultation fee or his hourly rate would not be inherently misleading
and thus should be permitted since I cannot understand why an 'initial consultation'
should have a different charge base from an hourly rate. Post, at 2717. Careful study of
the problems of attorney advertising and none has yet been made may well reveal that
advertisements limited to such matters do not carry with them the
potential for abuse that accompanies the advertisement of fees for particular services.
However, even such limited advertisements should not be permitted without a disclaimer
which informs the public that the fee charged in any particular case will depend on and
vary according to the individual circumstances of that case. See ABA Code of Professional
Responsibility DR 2-106(B) (1976).
The Court's opinion largely disregards these facts on the unsupported assumptions that
attorneys will not advertise anything but 'routine' services which the Court totally fails
to identify or define or, if they do advertise, that the bar and the courts will be able
to protect the public from those few practitioners who abuse their trust. The former
notion is highly speculative and, of course, does nothing to solve the problems that this
decision will create; as to the latter, the existing administrative machinery of both the
profession and the courts has proved wholly inadequate to police the profession
effectively. See ABA Special Committee On Evaluation of Disciplinary Enforcement, Problems
and Recommendations in Disciplinary Enforcement (1970). To impose the enormous new
regulatory burdens called for by the Court's decision on the presently deficient machinery
of the bar and courts is unrealistic; it is almost predictable that it will create
problems of unmanageable proportions. The Court thus takes a 'great leap' into an
unexplored, sensitive regulatory area where the legal profession and the courts have not
yet learned to crawl, let alone stand up or walk. In my view, there is no need for this
hasty plunge into a problem where not even the wisest of experts if such experts exist can
move with sure steps.
To be sure, the public needs information concerning attorneys, their work, and their fees.
At the same time, the public needs protection from the unscrupulous or the incompetent
practitioner anxious to prey on the uninformed. It seems to me that these twin goals can
best be served by permitting the organized bar to experiment with and perfect programs
which would announce to the public the probable range of fees for specifically defined
services and thus give putative clients some idea of potential cost liability when seeking
out legal assistance. [FN2] However, even such programs should be confined to the known
and knowable, e. g., the truly 'routine' uncontested divorce which is defined to exclude
any dispute over alimony, property rights, child custody or support, and should make clear
to the public that the actual fee charged in any given case will vary according to the
individual circumstances involved, see ABA Code of Professional Responsibility DR 2-106(B)
(1976), in order to insure that the expectations of clients are not unduly inflated.
Accompanying any reform of this nature must be some type of effective administrative
procedure to hear and resolve the grievances and complaints of disappointed clients.
FN2. The publication of such information by the organized bar would create no conflict
with our holding in Goldfarb v. Virginia State Bar, 421 U.S. 773, 95 S.Ct. 2004, 44
L.Ed.2d 572 (1975), so long as attorneys were under no obligation to charge within the
range of fees described.
Unfortunately, the legal profession in the past has approached solutions for the
protection of the public with too much caution, and, as a result, too little progress has
been made. However, as Mr. Justice POWELL points out, post, at 2716, the organized bar has
recently made some reforms in this sensitive area and more appear to be in the offing.
Rather than allowing these efforts to bear fruit, the Court today opts for a Draconian
'solution' which I believe will only breed more problems than it can conceivably resolve.
Mr. Justice POWELL, with whom Mr. Justice STEWART joins, concurring in part and dissenting
in part.
I agree with the Court that appellants' Sherman Act claim is barred by the Parker v.
Brown, 317 U.S. 341, 63 S.Ct. 307, 87 L.Ed.2d 315 (1943), exemption and therefore join
Part II of the Court's opinion. But I cannot join the Court's holding that under the First
Amendment 'truthful' newspaper advertising of a lawyer's prices for 'routine legal
services' may not be restrained. Ante, at 2709. Although the Court appears to note some
reservations (mentioned below), it is clear that within undefined limits today's decision
will effect profound changes in the practice of law, viewed for centuries as a learned
profession. The supervisory power of the courts over members of the bar, as officers of
the courts, and the authority of the respective States to oversee the regulation of the
profession have been weakened. Although the Court's opinion professes to be framed
narrowly, and its reach is subject to future clarification, the holding is explicit and
expansive with respect to the advertising of undefined 'routine legal services.' In my
view, this result is neither required by the First Amendment, nor in the public interest.
I
Appellants, two young members of the Arizona Bar, placed an advertisement in a Phoenix
newspaper apparently for the purpose of testing the validity of Arizona's ban on
advertising by attorneys. The advertisement, reproduced ante, at 2710, stated that
appellants' 'Legal Clinic' provided 'legal services at very reasonable fees,' and
identified the following four legal services, indicating an exact price for each:
(1) Divorce or legal separation uncontested (both spouses sign papers):
$175 plus $20 court filing fee.
(2) Preparation of all court papers and instructions on how to do your own simple
uncontested divorce: $100.
(3) Adoption uncontested severance proceeding: $225 plus approximately $10 publication
cost.
(4) Bankruptcy non-business, no contested proceedings individual: $250 plus $55 court
filing fee; wife and husband: $300 plus $110 court filing fee.
(5) Change of Name $95 plus $20 court filing fee.
The advertisement also stated that information regarding other types of cases would be
furnished on request. Since it is conceded that this advertisement violated Disciplinary
Rule 2-101(B), incorporated in Rule 29(a) of the Supreme Court of Arizona, [FN1] the
question before us is whether the application of the disciplinary rule to appellants'
advertisement violates the First Amendment.
FN1. The disciplinary rule is reproduced ante, at 2694, and n. 5.
The Court finds the resolution of that question in our recent decision in Virginia
Pharmacy Board v. Virginia Consumer Council, 425 U.S. 748, 96 S.Ct. 1817, 48 L.Ed.2d 346
(1976). In that case, we held unconstitutional under the First and Fourteenth Amendments a
Virginia statute declaring it unprofessional conduct for a licensed pharmacist to
advertise the prices of prescription drugs. We concluded that commercial speech to the
effect that 'I will sell you the X prescription drug at the Y price' was entitled to
certain protection under the First Amendment, and found that the proffered justifications
were inadequate to support the ban on price advertising. But we were careful to note that
we were dealing in that case with price advertising of a standardized product. The Court
specifically reserved judgment as to the constitutionality of state regulation of price
advertising with respect to professional services:
'We stress that we have considered in this case the regulation of commercial advertising
by pharmacists. Although we express no opinion as to other professions, the distinctions,
historical and functional, between professions, may require consideration of quite
different factors. Physicians and lawyers, for example, do not dispense standardized
products; they render professional services of almost infinite variety and nature, with
the consequent enhanced possibility for confusion and deception if they were to undertake
certain kinds of advertising.' Id., at 773 n. 25, 96 S.Ct., at 1831 (emphasis in
original). [FN2]
FN2. The Chief Justice, concurring in Virginia Pharmacy, also emphasized the distinction
between tangible products and professional services:
'The Court notes that roughly 95% of all prescriptions are filled with dosage units
already prepared by the manufacturer and sold to the pharmacy in that form. . . . In
dispensing these prepackaged items, the pharmacist performs largely a packaging rather
than a compounding function of former times.' 425 U.S., at 773-774, 96 S.Ct., at 1831
(emphasis in original).
This case presents the issue so reserved, and the Court resolves it on the assumption that
what it calls 'routine' legal services are essentially no different for purposes of First
Amendment analysis from prepackaged prescription drugs. In so holding, the Court fails to
give appropriate weight to the two fundamental ways in which the advertising of
professional services presents a different issue from that before the Court with respect
to tangible products: the vastly increased potential for deception and the enhanced
difficulty of effective regulation in the public interest.
A
It has long been thought that price advertising of legal services inevitably will be
misleading because such services are individualized with respect to content and quality
and because the lay consumer of legal services usually does not know in advance the
precise nature and scope of the services he requires. Ante, at 2703. Although the Court
finds some force in this reasoning and recognizes that 'many services performed by
attorneys are indeed unique,' its first answer is the optimistic expression of hope that
few lawyers 'would or could advertise fixed prices for services of that type.' Ibid. But
the Court's basic response in view of the acknowledged potential for deceptive advertising
of 'unique' services is to divide the immense range of the professional product of lawyers
into two categories: 'unique' and 'routine.' The only insight afforded by the opinion as
to how one draws this line is the finding that services similar to those in appellants'
advertisement are routine: 'the uncontested divorce, the simple adoption, the uncontested
personal bankruptcy, the change of name, and the like.' Ibid. What the phrase 'the like'
embraces is not indicated. But the advertising of such services must, in the Court's
words, flow 'both freely and cleanly.' Ante, at 2709.
Even the briefest reflection on the tasks for which lawyers are trained and the variation
among the services they perform should caution against facile assumptions that legal
services can be classified into the routine and the unique. In most situations it is
impossible both for the client and the lawyer to identify with reasonable accuracy in
advance the nature and scope of problems that may be encountered even when handling a
matter that at the outset seems routine. Neither quantitative nor qualitative measurement
of the service actually needed is likely to be feasible in advance. [FN3]
FN3. What legal services are 'routine' depends on the eye of the beholder. A particular
service may be quite routine to a lawyer who has specialized in that area for many years.
The marital trust provisions of a will, for example, are routine to the experienced tax
and estate lawyer; they may be wholly alien to the negligence litigation lawyer. And what
the unsophisticated client may think is routine simply cannot be predicted. Absent even a
minimal common understanding as to the service, and given the unpredictability in advance
of what actually may be required, the advertising lawyer and prospective client often will
have no meeting of the minds. Although widely advertised tangible products customarily
vary in many respects, at least in the vast majority of cases prospective purchasers know
the product and can make a preliminary comparative judgment based on price. But not even
the lawyer doing the advertising can know in advance the nature and extent of services
required by the client who responds to the advertisement. Price comparisons of designated
services, therefore, are more likely to mislead than to inform.
This definitional problem is well illustrated by appellants' advertised willingness to
obtain uncontested divorces for $195 each. A potential client can be grievously misled if
he reads the advertised service as embracing all of his possible needs. A host of problems
are implicated by divorce. They include alimony; support and maintenance for children;
child custody; visitation rights; interests in life insurance, community property, tax
refunds, and tax liabilities; and the disposition of other property rights. [FN4] The
processing of court papers apparently the only service appellants provide for $100 is
usually the most straightforward and least demanding aspect of the lawyer's responsibility
in a divorce case. More important from the viewpoint of the client is the diagnostic and
advisory function: the pursuit of relevant inquiries of which the client would otherwise
be unaware, and advice with respect to alternative arrangements that might prevent
irreparable dissolution of the marriage or otherwise resolve the client's problem. [FN5]
Although those professional functions are not included within appellants' packaged routine
divorce, they frequently fall within the concept of 'advice' with which the lay person
properly is concerned when he or she seeks legal counsel. The average lay person simply
has no feeling for which services are included in the packaged divorce, and thus no
capacity to judge the nature of the advertised product. [FN6] As a result, the type of
advertisement before us inescapably will mislead many who respond to it. In the end, it
will promote distrust of lawyers and disrespect for our own system of justice.
FN4. It may be argued that many of these problems are not applicable for couples of modest
means. This is by no means invariably true, even with respect to alimony, support and
maintenance, and property questions. And it certainly is not true with respect to the more
sensitive problems of child custody and visitation rights.
FN5. A high percentage of couples seeking counsel as to divorce desire initially that it
be uncontested. They often describe themselves as civilized people who have mutually
agreed to separate; they want a quiet, out-of-court divorce without alimony. But
experienced counsel knows that the initial spirit of amity often fades quickly when the
collateral problems are carefully explored. Indeed, scrupulous counsel except in the rare
case will insist that the paities have separate counsel to assure that the rights of each,
and those of children, are protected adequately. In short, until the
lawyer has performed his first duties of diagnosis and advice as to rights, it is usually
impossible to know whether there can or will be an uncontested divorce. As President Mark
Harrison of the State Bar of Arizona testified:
'I suppose you can get lucky and have three clients come in in response to (appellants'
advertisement) who have no children; no real property; no real disagreement, and you can
handle such an uncontested divorce, and do a proper job for a (pre)determined, . . .
prestated price.
(T)he inherent vice (is) that you can't know in advance, what special problems the client
who sees the advertisement will present, and if you are bound to a predetermined price . .
. sooner or later you are going to have to inevitably sacrifice the quality of service you
are able to render.' App. 378-380.
FN6. Similar complications surround the uncontested adoption and the simple bankruptcy.
The advertising of specified services at a fixed price is not the only infirmity of the
advertisement at issue. [FN7] Appellants also assert that these services are offered at
'very reasonable fees.' That Court finds this to be an accurate statement since the
advertised fee fell at the lower end of the range of customary charges. But the fee
customarily charged in the locality for similar services has never been considered the
sole determinant of the reasonableness of a fee. [FN8] This is because reasonableness
reflects both the quantity and quality of the service. A $195 fee may be reasonable for
one divorce and unreasonable for another; and a $195 fee may be a reasonable when charged
by an experienced divorce lawyer and unreasonable when charged by a recent law school
graduate. For reasons that are not readily apparent, the Court today discards the more
discriminating approach which the profession long has used to judge the reasonableness of
a fee, and substitutes an approach based on market averages. Whether a fee is 'very
reasonable' is a matter of opinion, and not a matter of verifiable fact as the Court
suggests. One unfortunate result of today's decision is that lawyers may feel free to use
a wide variety of adjectives such as 'fair,' 'moderate,' 'low-cost,' or 'lowest in town'
to describe the bargain they offer to the public.
FN7. Use of the term 'clinic' to describe a law firm of any size is unusual, and possibly
ambiguous in view of its generally understood meaning in the medical profession.
Appellants defend its use as justified by their plan to provide standardized legal
services at low prices through the employment of automatic equipment and
paralegals. But there is nothing novel or unusual about the use by law firms of automatic
equipment, paralegals, and other modern techniques for serving clients at lower cost. Nor
are appellants a public service law firm. They are in the private practice, and though
their advertising is directed primarily to clients with family incomes of less than
$25,000, appellants do not limit their practice to this income level. Id., at 82.
FN8. For example, the American Bar Association's Code of Professional Responsibility
specifies the '(f)actors to be considered as guides in determining the reasonableness of a
fee . . ..' DR 2-106(B)(1976). These include:
'(1) The time and labor required, the novelty and difficulty of the questions involved,
and the skill requisite to perform the legal service properly.
'(2) The likelihood, if apparent to the client, that the acceptance of the particular
employment will preclude other employment by the lawyer.
'(3) The fee customarily charged in the locality for similar legal services.
'(4) The amount involved and the results obtained. '(5) The time
limitations imposed by the client or by the circumstances.
'(6) The nature and length of the professional relationship with the client.
'(7) The experience, reputation, and ability of the lawyer or lawyers performing the
service.
'(8) Whether the fee is fixed or contingent.'
B
Even if one were to accept the view that some legal services are sufficiently routine to
minimize the possibility of deception, there nonetheless remains a serious enforcement
problem. The Court does recognize some problems. It notes that misstatements that may be
immaterial in 'other advertising may be found quite inappropriate in legal advertising'
precisely because 'the public lacks sophistication concerning legal services.' Ante, at
2709. It also recognizes that 'advertising claims as to the quality of services . . . are
not susceptible of measurement or verification' and therefore 'may be so likely to be
misleading as to warrant restriction.' Ante, at 2709. After recognizing that problems
remain in defining the boundary between deceptive and nondeceptive advertising, the Court
then observes that the bar may be expected to have 'a special role to play in assuring
that advertising by attorneys flows both freely and cleanly.' Ante, at 2709.
The Court seriously understates the difficulties, and overestimates the capabilities of
the bar or indeed of any agency public or private to assure with a reasonable degree of
effectiveness that price advertising can at the same time be both unrestrained and
truthful. Ibid. There are some 400,000 lawyers in this country. They have been licensed by
the States, and the organized bars within the States operating under codes approved by the
highest courts acting pursuant to statutory authority have had the primary responsibility
for assuring compliance with professional ethics and standards. The traditional means have
been disciplinary proceedings conducted initially by voluntary bar committees subject to
judicial review. In view of the sheer size of the profession, the existence of a
multiplicity of jurisdictions, and the problems inherent in the maintenance of ethical
standards even of a profession with established traditions, the problem of disciplinary
enforcement in this country has proved to be extremely difficult. See generally ABA,
Special Committee on Evaluation of Disciplinary Enforcement Problems and Recommendations
in Disciplinary Enforcement (1970).
The Court's almost casual assumption that its authorization of price advertising can be
policed effectively by the bar reflects a striking underappreciation of the nature and
magnitude of the disciplinary problem. The very reasons that tend to make price
advertising of services inherently deceptive make its policing wholly impractical. With
respect to commercial advertising, Mr. Justice STEWART, concurring in Virginia Pharmacy,
noted that since 'the factual claims contained in commercial price or product
advertisements relate to tangible goods or services, they may be tested empirically and
corrected to reflect the truth.' 425 U.S., at 780, 96 S.Ct., at 1835. But there simply is
no way to test 'empirically' the claims made in appellants' advertisement of legal
services. These are serious difficulties in determining whether the advertised services
fall within the Court's undefined category of 'routine services'; whether they are
described accurately and understandably; and whether appellants' claim as to
reasonableness of the fees is accurate. These are not factual questions for which there
are 'truthful' answers; in most instances, the answers would turn on relatively subjective
judgments as to which there could be wide differences of opinion. There difficulties with
appellants' advertisement will inhere in any comparable price advertisement of specific
legal services. Even if public agencies were established to oversee professional price
advertising, adequate protection of the public from deception, and of ethical lawyers from
unfair competition, could prove to be a wholly intractable problem.
II
The Court emphasizes the need for information that will assist persons desiring legal
services to choose lawyers. Under our economic system, advertising is the most commonly
used and useful means of providing information as to goods and other services, but it
generally has not been used with respect to legal and certain other professional services.
Until today, controlling weight has been given to the danger that general advertising of
such services too often would tend to mislead rather than inform. Moreover, there has been
the further concern that the characteristics of the legal profession thought beneficial to
society a code of professional ethics, an imbued sense of professional and public
responsibility, a tradition of self-discipline, and duties as officers of the courts would
suffer if the restraints on advertising were significantly diluted.
Pressures toward some relaxation of the proscription against general advertising have
gained force in recent years with the increased recognition of the difficulty that low-
and middle-income citizens experience in finding counsel willing to serve at reasonable
prices. The seriousness of this problem has not been overlooked by the organized bar. At
both the national and state levels, the bar has addressed the need for expanding the
availability of legal services in a variety of ways, including: (i) group legal service
plans, increasingly used by unions, cooperatives, and trade associations; (ii) lawyer
referral plans operated by local and state bars; (iii) bar-sponsored legal clinics; (iv)
public service law firms; and (v) group insurance or prepaid service plans. Notable
progress has been made over the past two decades in providing counsel for indigents
charged with crime. Not insignificant progress also has been made through bar-sponsored
legal aid and, more recently, the Federal Legal Services Corporation in providing counsel
for indigents in civil cases. But the profession recognizes that less success has been
achieved in assuring that persons who can afford to pay modest fees have access to lawyers
competent and willing to represent them. [FN9]
FN9. A major step forward was taken in 1965 with the initiation of the legal services
program of the Office of Economic Opportunity, a program fully supported by the American
Bar Association. The legal services program is now administered by the Federal Legal
Services Corporation, created by Congress in 1976. Efforts by the profession to broaden
the availability of legal services to persons of low- and middle-income levels also gained
momentum in 1965.
Study and experimentation continue. Following a series of hearings in 1975, the American
Bar Association amended its Code of Professional Responsibility to broaden the
information, when allowed by state law, that a lawyer may provide in approved means of
advertising. DR 2-102 (1976). In addition to the customary data published in legal
directories, the amended regulation authorizes publication of the lawyer's fee for an
initial consultation, the fact that other fee information is available on specific
request, and the willingness of the attorney to accept credit cards or other credit
arrangements. The regulation approves placement of such advertisements in the classified
section of telephone directories, in the customary law lists and legal directories, and
also in directories of lawyers prepared by consumer and other groups.
The Court observes, and I agree, that there is nothing inherently misleading in the
advertisement of the cost of an initial consultation. Indeed, I would not limit the fee
information to the initial conference. Although the skill and experience of lawyers vary
so widely as to negate any equivalence between hours of service by different lawyers,
variations in quality of service by duly licensed lawyers are inevitable. Lawyers operate,
at least for the purpose of internal control and accounting on the basis of specified
hourly rates, and upon request or in an appropriate case most lawyers are willing to
undertake employment at such rates. The advertisement of these rates in an appropriate
medium, duly designated, would not necessarily be misleading if this fee information also
made clear that the total charge for the representation would depend on the number of
hours devoted to the client's problem a variable difficult to predict. Where the price
content of the advertisement is limited to the finite item of rate per hour devoted to the
client's problem, the likelihood of deceiving or misleading is considerably less than when
specific services are advertised at a fixed price.
III
Although I disagree strongly with the Court's holding as to price advertisements of
undefined and I believe undefinable routine legal services, there are reservations in its
opinion worthy of emphasis since they may serve to narrow its ultimate reach. First, the
Court notes that it has not addressed 'the peculiar problems associated with advertising
claims relating to the quality of legal services.' Ante, at 2700. There are inherent
questions of quality in almost any type of price advertising by lawyers, and I do not view
appellants' advertisement as entirely free from quality implications. Nevertheless the
Court's reservation in this respect could be a limiting factor.
Second, as in Virginia Pharmacy, the Court again notes that there may be reasonable
restrictions on the time, place, and manner of commercial price advertising. In my view,
such restrictions should have a significantly broader reach with respect to professional
services than as to standardized products. This Court long has recognized the important
state interests in the regulation of professional advertising. Head v. New Mexico Board,
374 U.S. 424, 83 S.Ct. 1759, 10 L.Ed.2d 983 (1963); Williamson v. Lee Optical Co., 348
U.S. 483, 75 S.Ct. 461, 99 L.Ed. 563 (1955); Semler v. Dental Examiners, 294 U.S. 608, 55
S.Ct. 570, 79 L.Ed. 1086 (1935). [FN10] And as to lawyers, the Court recently has noted
that '(t)he interest of the States in regulating lawyers is especially great since lawyers
are essential to the primary governmental function of administering justice, and have
historically been 'officers of the courts." [FN11] Goldfarb v. Virginia State Bar,
421 U.S. 773, 792, 95 S.Ct. 2004, 2016, 44 L.Ed.2d 572 (1975). Although the opinion today
finds these interest insufficient to justify prohibition of all price advertising, the
state interests recognized in these cases should be weighed carefully in any future
consideration of time, place, and manner restrictions. [FN12]
FN10. Although Semler v. Oregon State Board of Dental Examiners involved a due process
issue rather than a First Amendment challenge, the distinction drawn in that case between
the advertisement of professional services and commodities is highly relevant. Mr. Chief
Justice Hughes, writing for the Court, stated:
'We do not doubt the authority of the State to estimate the baleful effects of such
methods and to put a stop to them. The legislature was not dealing with traders in
commodities, but with the vital interest of public health, and with a profession treating
bodily ills and demanding different standards of conduct from those which are traditional
in the competition of the market place. The community is concerned with the maintenance of
professional standards which will insure not only competency in individual practitioners,
but protection against those who would prey upon a public peculiarly susceptible to
imposition through alluring promises of physical relief. And the community is concerned in
providing safeguards not only against deception, but against practices which would tend to
demoralize the profession of forcing its members into an unseemly rivalry which would
enlarge the opportunities of the least scrupulous. What is generally called the 'ethics'
of the profession is but the consensus of expert opinion as to the necessity of such
standards.' 294 U.S., at 612, 55 S.Ct., at 572. This distinction, addressed specifically
to advertising, has never been questioned by this Court until today. Indeed, Semler was
recently cited with approval in Goldfarb v. Virginia State Bar, 421 U.S. 773, 792-793 95
S.Ct. 2004, 2015-2016, 44 L.Ed. 572 (1975).
FN11. The Court's opinion is not without an undertone of criticism of lawyers and the
legal profession for their opposition to price advertising: e. g., (i) the reference to
the profession 'condoning the actions of the attorney who structures his social or civic
associations so as to provide contacts with potential clients,' ante, at 2702 and (ii) the
implication that opposition to advertising derives from the view that lawyers 'belittle
the person who earns his living by the strength of his arm' and 'somehow [are] 'above'
trade,' ante, at 2703. The indiscriminate criticism is unjustified. Lawyers are not
hermits and society would suffer if they were. Members of the legal profession customarily
are leaders in the civic, charitable, cultural, and political life of most communities.
Indeed, the professional responsibility of lawyers is thought to include the duty of civic
and public participation. As a profession, lawyers do differ from other callings. 'This is
not a fancied conceit, but a cherished tradition, the preservation of which is essential
to the lawyer's reverence for his calling.' H. Drinker, Legal Ethics 211 (1963) (footnote
omitted). There certainly can be pride in one's profession without belittling those who
perform other tasks essential to an ongoing society.
FN12. The Court speaks specifically only of newspaper advertising, but it is clear that
today's decision cannot be confined on a principled basis to price advertisements in
newspapers. No distinction can be drawn between newspapers and a rather broad spectrum of
other means--for example, magazines, signs in buses and subways, posters, handbills, and
mail circulations. But questions remain open as to time, place, and manner restrictions
affecting other media, such as radio and television.
Finally, the Court's opinion does not 'foreclose the possibility that some limited
supplementation, by way of warning or disclaimer or the like, might be required of even an
advertisement of the kind ruled upon today so as to assure that the consumer is not
misled.' Ante, at 2709. I view this as at least some recognition of the potential for
deception inherent in fixed price advertising of specific legal services. This
recognition, though ambiguous in light of other statements in the opinion, may be viewed
as encouragement to those who believe--as I do--that if we are to have price advertisement
of legal services, the public interest will require the most particularized regulation.
IV
The area into which the Court now ventures has, until today, largely been left to
self-regulation by the profession within the framework of canons or standards of conduct
prescribed by the respective States and enforced where necessary by the courts. The
problem of bringing clients and lawyers together on a mutually fair basis, consistent with
the public interest, is as old as the profession itself. It is one of considerable
complexity, especially in view of the constantly evolving nature of the need for legal
services. The problem has not been resolved with complete satisfaction despite diligent
and thoughtful efforts by the organized bar and others over a period of many years, and
there is no reason to believe that today's best answers will be responsive to future
needs.
In this context, the Court's imposition of hard and fast constitutional rules as to price
advertising is neither required by precedent nor likely to serve the public interest. One
of the great virtues of federalism is the opportunity it affords for experimentation and
innovation, with freedom to discard or amend that which proves unsuccessful or detrimental
to the public good. The constitutionalizing--indeed the affirmative encouraging--of
competitive price advertising of specified legal services will substantially inhibit the
experimentation that has been underway and also will limit the control heretofore
exercised over lawyers by the respective States.
I am apprehensive, despite the Court's expressed intent to proceed cautiously, that
today's holding will be viewed by tens of thousands of lawyers as an invitation--by the
public-spirited and the selfish lawyers alike--to engage in competitive advertising on an
escalating basis. Some lawyers maygain temporary advantages; others will suffer from the
economic power of stronger lawyers, or by the subtle deceit of less scrupulous lawyers.
[FN13] Some members of the public may benefit marginally, but the risk is that many others
will be victimized by simplistic price advertising of professional services 'almost
infinite in variety and nature ....' Virginia Pharmacy Board, 425 U.S., at 773 n. 25, 96
S.Ct., at 1831. Until today, in the long history of the legal profession, it was not
thought that this risk of public deception was required by the marginal First Amendment
interests asserted by the Court.
FN13. It has been suggested that price advertising will benefit younger lawyers and
smaller firms, as well as the public, by enabling them to compete more favorably with the
larger, established firms. The overtones of this suggestion are antitrust rather than
First Amendment in principle. But whatever the origin, there is reason seriously to doubt
the validity of the premise. With the increasing complexity of legal practice, perhaps the
strongest trend in the profession today is toward specialization. Many small firms will
limit their practice to intensely specialized areas; the larger,
institutionalized firms are likely to have a variety of departments, each devoted to a
special area of the law. The established specialist and the large law firm have advantages
that are not inconsiderable if price competition becomes commonplace. They can advertise
truthfully the areas in which they practice; they enjoy economies of scale that may
justify lower prices; and they often possess the economic power to disadvantage the weaker
or more inexperienced firms in any advertising competition. Whether the potential for
increased concentration of law practice in a smaller number of larger firms would be
detrimental to the public is not addressed by the Court.
Mr. Justice REHNQUIST, dissenting in part.
I join in Part II of the Court's opinion holding that appellant's Sherman Act claim is
barred by the Parker v. Brown, 317 U.S. 341, 63 S.Ct. 307, 87 L.Ed. 315 (1943),
state-action exemption. Largely for the reasons set forth in my dissent in Virginia
Pharmacy Board v. Virginia Consumer Council, 425 U.S. 748, 781, 96 S.Ct. 1817, 1835, 48
L.Ed.2d 346 (1976), however, I dissent from Part III because I cannot agree that the First
Amendment is infringed by Arizona's regulation of the essentially commercial activity of
advertising legal services. Valentive v. Chrestensen, 316 U.S. 52, 62 S.Ct. 920, 86 L.Ed.
1262 (1942); Breard v. Alexandria, 341 U.S. 622, 71 S.Ct. 920, 95 L.Ed. 1233 (1951). See
Pittsburgh Press Co. v. Human Relations Commission, 413 U.S. 376, 93 S.Ct. 2553, 37
L.Ed.2d 669 (1973).
I continue to believe that the First Amendment speech provision, long regarded by this
Court as a sanctuary for expressions of public importance or intellectual interest, is
demeaned by invocation to protect advertisements of goods and services. I would hold quite
simply that the appellants' advertisement, however truthful or reasonable it may be, is
not the sort of expression that the Amendment was adopted to protect.
I think my Brother POWELL persuasively demonstrates in his opinion that the Court's
opinion offers very little guidance as to the extent or nature of permissible state
regulation of professions such as law and medicine. I would join his opinion except for my
belief that once the Court took the first step down the 'slippery slope' in Virginia
Pharmacy Board, supra, the possibility of understandable and workable differentiations
between protected speech and unprotected speech in the field of advertising largely
evaporated. Once the exception of commercial speech from the protection of the First
Amendment which had been established by Valentine v. Chrestensen, supra, was abandoned,
the shift to case-by-case adjudication of First Amendment claims of advertisers was a
predictable consequence.
While I agree with my Brother POWELL that the effect of today's opinion on the professions
is both unfortunate and not required by the First and Fourteenth Amendments, I cannot join
the implication in his opinion that some forms of legal advertising may be
constitutionally protected. The Valentine distinction was constitutionally sound and
practically workable, and I am still unwilling to take even one step down the 'slippery
slope' away from it.
I therefore join Parts I and II of the Court's opinion, but dissent from Part III and from
the judgment.