Both ironic and disturbing: rejecting a First Amendment defense, a New York court says city and state public accommodation law may forbid the left-wing National Lawyers Guild from turning down (in line with its position favoring an Israel boycott) an attempt from a group based in West Bank Israeli settlements to buy an ad in its awards banquet program [Eugene Volokh]
Free speech roundup
- “Lucha Underground Wrestling Sends Legal Threat To Journalists For Publishing ‘Spoilers'” [Tim Geigner, TechDirt]
- Watch what you say about lawyers: politically active Baton Rouge trial lawyer threatens political blog The Hayride over critical coverage [The Hayride, Robert Davis/Louisiana Record]
- Update: Stanford’s Mark Jacobson drops defamation lawsuit against other scientists [Jonathan Adler, earlier]
- Update: federal judge tells town of Sibley, Iowa to stop threatening resident who runs website complaining about way town smells [ACLU of Iowa, earlier]
- Recent topics in FIRE “So To Speak” podcast series include Great Firewall of China, interview with former Evergreen State professor Bret Weinstein, Masterpiece Cakeshop case at SCOTUS, Is there a campus free speech crisis?
- “Spanish Hate/Anti-Terrorism Speech Laws Doing Little But Locking Up Comedians, Artists, And Dissidents” [Tim Cushing, TechDirt; a recent Scottish case]
Political pressure on Facebook intensifies
Will revelations over data use by Cambridge Analytica lead to more intense government regulation of Facebook? Julian Sanchez and I talk to Caleb Brown at the Cato Daily Podcast. Separately, Sanchez writes that we shouldn’t expect regulatory micromanagement to do a good job of safeguarding user privacy. “How Cambridge Analytica’s Facebook targeting model really worked – according to the person who built it” [Matthew Hindman, The Conversation] Note that regulation tends to entrench incumbents [Tyler Cowen linking Stratechery (one consequence of outcry is that social media providers may make it harder for users to export their data to other platforms)]
Related: “In Europe, platforms are incentivized to take down first, ask questions second.” [William Echikson, Politico Europe] Pro-censorship UNC professor and New York Times contributing op-ed writer (and what a phrase that is to type) recalls days when media had but one throat to squeeze [David Henderson on Zeynep Tufekci in Wired] How Facebook recently navigated pressures on hosting a group whose leaders were prosecuted under British hate-speech laws [John Samples, Cato] From LBJ and Nixon to Trump and Elizabeth Warren, “regulation is an inherently political act.” So maybe think twice before putting Facebook and Google under the thumb of your worst political foe? [Donald E. Graham]
Medical roundup
- “Trump Joins Campaign To Force Big Pharma To Pay for Opioid Crisis” [Ira Stoll] “Records show all-out, unsolicited attorney scramble to sign up Texas counties for opioid litigation” [David Yates, Southeast Texas Record] “Plaintiff Lawyers See Nationwide Settlement As Only End For Opioid Lawsuits” [Daniel Fisher, LNL/Forbes] “Leading Opioid Litigation Firm Becomes a Top Donor to McCaskill Leading Up to Report’s Release” [Ethan Stoetzer, Inside Sources]
- NYT columnist David Leonhardt pens column urging cutting back on sweets as a political gesture against “attempts to profit off your body,” and others push back [Ira Stoll; Tamar Haspel, citing this 2016 piece on how the science is more complicated]
- “Study: Medical Expenses Cause Close to 4% of Personal Bankruptcies—not 60%” [Michael Cannon, Cato; earlier here, etc., related here]
- Genetic engineering of animal life: “How the FDA Virtually Destroyed an Entire Sector of Biotechnology” [John Cohrssen and Henry Miller, Cato “Regulation”]
- “Very cheap (tobacco) products should no longer be available.” Why should you get to decide that for other people? [John Stossel, Reason]
- Lawyer ads scare patients out of taking needed medication [download Cary Silverman, U.S. Chamber Institute for Legal Reform via John O’Brien, Forbes]
New Jersey considers launching state-owned bank
“Politicians Want to Start a Bank. What Could Go Wrong?” is the title of my new Wall Street Journal op-ed about New Jersey Gov. Phil Murphy’s very bad idea.
The article will be paywalled for many, but you can read some of the journalistic coverage of the bank issue: Matt Friedman, Politico, Samantha Marcus/NJ Advance Media. Some articles I cite in my piece along with relevant links/research: The Economist on German Landesbanken, Aaron Fernando, The Progressive (citing German example, and noting current campaigns for city-owned banks in Los Angeles, San Francisco, Seattle, and other cities); Erica Jedynak letter, MyCentralJersey.com (“A 2011 report based on research provided by Federal Reserve Bank of Boston and other state agencies recommended the Massachusetts legislature not pursue the idea”).
More: Joseph Lawler, Washington Examiner:
Research on public-owned banks across the world suggests [that lending is politicized]. A 2002 paper from a Northwestern University economist found that areas with stronger political parties get lower interest rates from public banks. Political interference is likely the reason that public banks have been found to underperform compared to private banks in underdeveloped countries, according to a 2012 paper written by Taiwanese researchers.
On corruption rankings, Transparency.org on Germany; Five Thirty-Eight and Harvard Safra Ethics Center on U.S. states. On New Jersey’s outstandingly bad record for corruption: Olivia Nuzzi, Daily Beast and Philip Bump, Washington Post.
Dentist clinic to parents: we could report your kids’ missed checkups as abuse
Pennsylvania dentistry clinic mails reminders to parents: we could report your kids’ missed checkups as child abuse. “To…avoid a report to state authorities, please call Smiles4Keeps.” [Scott Shackford, Reason; WNEP]
Maryland gerrymander before the Supreme Court
This week the Supreme Court heard oral argument (transcript) in Benisek v. Lamone, the challenge to Maryland’s gerrymandered Sixth District. I was there with some critics of the gerrymander in front of the Court steps and spoke to a number of reporters afterward [Danielle Gaines, Frederick News-Post; Bruce DePuyt, Maryland Matters] See also Eric Boehm, Reason. Earlier here. Background links on Maryland case: Cynthia Prairie, Maryland Reporter in January.
California judge: Prop 65 requires warnings on coffee
Los Angeles Superior Court Judge Elihu Berle ruled Wednesday that coffee merchants are liable under Prop 65 for not warning of the possible cancer risks of the beverage. I’ve got a write-up at Cato at Liberty noting that the primary problem is with the law itself, jealously guarded by lawyers who make out well from it. Excerpt:
Almost everyone agrees by now that the over-proliferation of warnings makes it less likely that consumers will pay attention to those few warnings that actually flag notable risks. …
What happens next? As the Post reports, “In addition to the warning signs likely to result from the lawsuit, the Council for Education and Research on Toxics, which brought the lawsuit, has asked for fines as much as $2,500 for every person exposed to the chemical since 2002, potentially opening the door to massive settlements.” And the financial shakedown value here is far from incidental; it’s the very motor that keeps the law going.
Earlier here. See also Michael Marlow, Cato “Regulation,” 2013-14 (study finds “little to no statistical support” that Proposition 65 “significantly influenced cancer incidence in California.”) And a furniture warning via Timothy Lee (link fixed now). More: Omri Ben-Shahar, AICR (evidence that coffee is cancer-protective on net).
Banking and finance roundup
- High cross-border remittance costs for globally mobile workers slow ascent from poverty, and know-your-customer and money-laundering regulations have made things worse [Money and Banking]
- “The Supreme Court should find ALJs to be ‘officers of the United States’ and thus make them subject to presidential appointment and removal.” [Ilya Shapiro on Cato merits amicus filing in Lucia v. Securities and Exchange Commission]
- “Settlement of Lawyer-Driven ‘Merger Tax’ Litigation Stumbles in New York” [Greg Herbers, WLF]
- “Financial Regulation: The Apotheosis of the Administrative State?” 2017 National Lawyers Convention Federalist Society panel with Richard Epstein, Hal Scott, Peter Wallison, and Arthur Wilmarth, moderated by Judge Carlos Bea;
- With advances in Oregon and even California, deregulation of commercial insurance lines is having a moment [Ray Lehmann, Insurance Journal; Lehmann’s 2017 Insurance Regulation Report Card for R Street Institute] Perennially troubled Massachusetts, on the other hand, continues slide in same survey [Agency Checklists]
- Tech companies have been experimenting with old and lawful device of dual class stock and SEC shouldn’t be allowed to use raised eyebrow power to stop that [Bainbridge, WLF]
Update: court strikes down Seattle landlords-must-accept-first-tenant law
A Washington court has struck down Seattle’s new law requiring landlords to rent to the first qualified tenant-applicant who applies, supposedly as a way of countering unconscious or implicit bias. Judge Suzanne Parisien
said the law violated property rights by stripping landlords of their ability to “freely dispose of property” and to choose their own tenant, a “fundamental attribute of property ownership.”
The judge also concluded the law violated landlords’ due process rights by imposing the rule without limitation. “A law that undertakes to abolish or limit the exercise of rights beyond what is necessary to provide for the public welfare cannot be included in the lawful police power of the government,” she wrote.
Finally, the judge said the law violated the First Amendment by broadly banning certain types of advertising by property owners absent individualized suspicion of discrimination. [David Kroman, Crosscut, earlier] More: Ilya Somin.