Felsenheld v. United States

Background

The dispute involves a manufacturer who placed a thin promotional coupon inside packages of goods that bore a federal internal-revenue stamp, and the federal government (through Congress and the internal revenue department) enforcing a statute that forbids packing in, attaching to, or connecting with a package “any article or thing whatsoever” except certain labels and stamps. The coupon was printed on very thin paper, had inappreciable weight, and did not affect the tax owed or its collection, but officials and the parties disagreed about whether such trivial items were covered by the statute.

Reasoning

The central question was whether Congress may prohibit the inclusion of any extra item in a stamped package even when that item is negligible in weight or does not affect tax collection. The Court read the statute’s broad phrase “any article or thing whatsoever” literally and explained that Congress has authority to set rules for manufacture and packaging of taxed goods to secure tax collection. The opinion said Congress may prescribe packaging rules even if they seem arbitrary, and it is not for courts to carve out exceptions for items merely because they are small or light. The Court concluded the coupon falls within the statutory prohibition and that the statute, so construed, does not violate the Constitution.

Real world impact

The ruling means manufacturers of stamped, taxed goods must ensure each separate package contains only the taxed product and may not place promotional coupons inside those individual packages. The opinion also notes manufacturers remain free to include advertising or promotional material in outer shipping boxes that hold multiple packages.

Dissents or concurrances

Justice Peckham dissented, but the opinion text does not summarize his reasoning.