Hunt v. Washington State Apple Advertising Commission

432 U.S. 333 (1977)

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Nature of the Case

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Facts

The North Carolina Board of Agriculture adopted a regulation which in effect required all closed containers of apples shipped into or sold in the State to display either the applicable USDA grade or a notice indicating no classification. The Washington State Apple Advertising Commission petitioned the North Carolina Board of Agriculture to amend its regulations to permit the display of state grades. An administrative hearing was held, but no relief was granted. P sought a declaration that the statute violated, the Commerce Clause. The Court found that the North Carolina statute, while neutral on its face, actually discriminated against Washington State growers and dealers in favor of their local counterparts. This discrimination resulted from the fact that North Carolina, unlike Washington, had never established a grading and inspection system. The statute had no effect on the existing practices of North Carolina producers; they were still free to use the USDA grade or none at all. Washington growers and dealers, on the other hand, were forced to alter their long-established procedures, at substantial cost, or abandon the North Carolina market. The District Court then concluded that this discrimination against out-of-state competitors was not justified by the asserted local interest -- the elimination of deception and confusion from the marketplace -- arguably furthered by the statute. It noted that the statute was 'irrationally' drawn to accomplish that alleged goal since it permitted the marketing of closed containers of apples without any grade at all. This appeal followed.