9th Cir.;
13-56069

The court of appeals affirmed a judgment. The court held that a California state statute prohibiting alcohol manufacturers and wholesalers from providing anything of value to retailers in exchange for advertising does not violate the First Amendment.

Retail Digital Network, LLC (RDN) set up digital advertising display monitors in liquor stores, agreeing to pay the retailers a percentage of its profits. It then sought to contract with liquor manufacturers to display their advertising on the monitors. The manufacturers refused, citing their concern that such an arrangement would run afoul of Cal. Bus. & Prof. Code §25503(f)(-(h), which prohibits alcohol manufacturers and wholesalers from providing anything of value to retailers in exchange for advertising their alcohol products. RDN filed suit for declaratory and injunctive relief against Ramona Prieto, Acting Director of the California Department of Alcoholic Beverage Control.