Bad Frogs Brewery Inc.

1. Case Name, Citation and Court

Bad Frog Brewery, Inc. v. New York State Liquor Authority

134 F.3d 87 (1998)

United States Court of Appeals, Second Circuit

2. Key Facts

a. Bad Frog Brewery, Inc. makes alcoholic beverages that have a label with a frog “giving the finger.”

b. Bad Frog’s New York distributor applied to New York State Liquor Authority (NYSLA) for brand label approval.

c. NYSLA denied the application.

d. Bad Frog filed a suit against the NYSLA asking for an injunction against the denial of the application.

e. Court granted in favor of the NYSLA and Bad Frog appealed.

3. Issue

Does the NYSLA’s rejection of Bad Frog’s label application demonstrate that its commercial speech limitation is part of an effort to advance valid state interest?

4. Holding

No. The U.S. Court of Appeals held that NYSLA’s ban on the use of Bad Frog’s label lacked a “reasonable fit” with the state’s interest in shielding minors from vulgarity.

5. Court’s Reasoning

The U.S. Court of Appeals held that:

f. NYSLA did not adequately consider alternatives to the label ban.

g. Limitation on commercial speech purpose is to advance state interest, not remove every single aspect of offensive material and vulgarity.

h. It is plainly excessive to prohibit the manufacture’s label from all use.

i. NYSLA has no extent to be concerned about children wandering throughout stores without parental supervision where alcohol is sold.

j. It is not the state’s interest to protect children from profane material.