OCTOBER TERM 1937 · DECIDED APRIL 25, 1938 · 6–1

Share

United States v. Carolene Products Co.

ReversedFinal ruling
food regulationcommerce clauseeconomic regulationdue processconstitutional law

Opinion of the Court by Justice Stone

The Court upheld the federal Filled Milk Act, ruling that Congress could ban interstate shipments of a coconut-oil-and-skim-milk product designed to look like condensed milk or cream because lawmakers reasonably believed it was unhealthy and deceptive to consumers.

The decision set out a highly deferential standard for reviewing economic and commercial regulations, one that presumes a law is constitutional if any reasonable set of facts could support it, while flagging in a footnote that laws touching more fundamental rights might deserve closer scrutiny.

Congress is free to exclude from interstate commerce articles whose use in the states for which they are destined it may reasonably conceive to be injurious to the public health, morals or welfare
Justice Stone

Explains why Congress could ban shipment of the milk substitute across state lines.

How it got here: A federal trial court dismissed the indictment on demurrer, following an earlier ruling striking the Act; the government appealed directly to the Supreme Court under the Criminal Appeals Act.

The Case in Depth

What happened

A food company shipped 'Milnut,' a blend of condensed skimmed milk and coconut oil made to look and taste like condensed milk or cream, across state lines. Congress's 1923 Filled Milk Act banned shipping such milk-and-vegetable-oil blends in interstate commerce, declaring them an unhealthy, fraud-inducing substitute for real milk. The company was indicted for violating the Act.

The question before the Court

Could Congress ban interstate shipment of a coconut-oil milk substitute by declaring it unhealthy and a fraud on consumers, without violating the Constitution?

Why it matters

The ruling let Congress keep barring 'filled milk' from interstate commerce, protecting dairy producers and consumers who might be misled by look-alike products. More broadly, it gave lawmakers wide latitude to regulate business and commercial products so long as some plausible factual basis supported the law, making it much harder for companies to challenge economic regulations in court.

What changes now

The case returns to the trial court, where the indictment stands and the prosecution can proceed. Justice Butler's concurrence noted the company could still try to prove at trial that its product isn't actually unhealthy or fraudulent, since the ruling only holds the statute constitutional on its face, not that the company is guilty. This is a final decision on the constitutional question, not an emergency or purely procedural order.

What this does not decide

The Court did not decide whether Milnut was in fact unhealthy or fraudulent — only that Congress could reasonably believe so when passing the law. Justice Butler's concurrence stressed the company could still offer evidence at trial disproving those legislative findings as applied to its specific product.

Concurrences and dissents

Concurrence in part — Justice Black

Justice Black agreed with reversing the dismissal and joined the bulk of the opinion, but declined to join the section discussing when courts may look behind a statute's factual findings and how much weight legislative declarations deserve, without explaining his specific objection.

Concurrence — Justice Butler

Justice Butler agreed the indictment was sufficient on its face to charge a violation, but emphasized this only establishes a prima facie case. He argued the statute's provisions should be read, if possible, to avoid constitutional doubt, and that the company must be allowed to prove at trial that its product is not actually unhealthy or deceptive, since a contrary reading would violate the Fifth Amendment.

Dissent — Justice McReynolds

Justice McReynolds indicated only that he believed the lower court's dismissal of the indictment should be affirmed, without providing accompanying reasoning in the text supplied.

How the Court got there

The legal reasoning, step by step

  1. The Court explained that Congress's power to regulate interstate commerce includes the power to prohibit shipment of goods altogether, not merely to regulate how they move, whenever Congress could reasonably believe the goods harm public health, morals, or welfare.
  2. Turning to the Fifth Amendment due-process challenge, the Court applied a highly deferential presumption of constitutionality for laws regulating ordinary commercial transactions: such a law survives if any set of facts, known or reasonably assumed, could rationally support it.
  3. The Court pointed to congressional committee hearings and reports, featuring testimony from scientists and health experts, showing lawmakers had a factual basis to conclude that filled milk lacked essential nutrients and was easily passed off as real milk or cream, supporting the rational basis for the ban.
  4. The Court held that the statute's own declaration labeling filled milk 'adulterated' and a 'fraud on the public' was not binding proof of guilt against the company, but functioned like a legislative committee report — evidence of Congress's rationale that helps courts assess whether a rational basis existed.
  5. In a footnote, the Court suggested that this deferential presumption might not apply with the same force to laws that restrict specific rights singled out in the Constitution, such as free speech, voting, or protections for religious or racial minorities, though it did not need to resolve that question in this case.
  6. Because the Act was not unconstitutional on its face, the Court concluded the trial court should not have dismissed the indictment on demurrer.

Doctrinal impact

Laws and provisions at issue

Fifth Amendment Due Process Clause

Bars the federal government from depriving people of property without a fair, rational legal basis.

Commerce Clause

Gives Congress power to regulate and restrict goods moving between states.

Filled Milk Act of 1923

Federal law banning interstate shipment of milk blended with non-milk fats made to resemble real milk or cream.

Cases affected by this decision

Reaffirms Hebe Co. v. Shaw (248 U. S. 297)

Relies on this earlier ruling upholding a state ban on a similar coconut-oil milk product as still good law.

Reaffirms Powell v. Pennsylvania (127 U. S. 678)

Cites this case upholding an oleomargarine ban as support for banning look-alike food substitutes.

Supreme Court Opinion

Ask GovernmentReporter about this case

Ask anything about the majority, concurrences, or dissents.

United States v. Carolene Products Co. | SCOTUS Reporter