Austin v. Michigan Chamber Of Commerce

494 U.S. 652 (1990)

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Nature of the Case

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Facts

Under the Michigan Campaign Finance Act, a corporation may not use its treasury funds, but may use funds specifically set aside, to subsidize election campaigns of individuals running for state elective office. Violation of the statute is punishable as a felony offense. The state justifies the law by maintaining it prevents corruption caused by corporate contributions. The state did not want corporations to illegally influence politicians by using its powerful economic resources. In addition, the state asserted that corporate funding of election candidates confers upon one candidate, significant wealth which could be misinterpreted as public support of candidate. The Michigan State Chamber of Commerce financed a full-page newspaper advertisement in support of a candidate for congressional elective office. The advertisement was funded through the general treasury of the Chamber of Commerce. The Chamber of Commerce argued that it should be exempted from the Act as a non-profit organization. The Chamber of Commerce pursued injunctive relief against the state’s enforcement of the Act, asserting the Act was unconstitutional under the First and Fourteenth Amendments. The appeals court agreed with the Respondent. The U.S. Supreme Court reversed in favor of the Petitioners.