Court Overturns Rulings on Nike, Lawsuit Proceeds
In a decision by the California Supreme Court, a lawsuit against Nike for false advertising will be allowed to move forward, reversing the decision made by two lower courts that statements made by the company in an advertisement constituted political speech.
Nike had come under fire in 1996 for alleged “sweatshop” conditions in Vietnamese factories that manufacture Nike products. Shortly thereafter, Nike issued public statements in print and electronic ads, disclaiming the allegations.
A lawsuit filed in California Superior Court claims that Nike’s statements were false and misleading. The Beaverton, Ore.-based sneaker giant said the statements were protected under the First Amendment.
Two lower-court rulings found Nike’s statements to be noncommercial, and therefore, protected speech under the First Amendment. The Supreme Court’s decision, however, will allow the lawsuit to proceed in Superior Court in San Francisco. —Darryl James
