SPOKANE, Wash. (Legal Newsline) – The Washington Supreme Court determined that the Consumer Brands Association, formerly Grocery Manufacturers Association (GMA), intentionally violated the state's Fair Campaign Practices Act (FCPA) during the 2013 election cycle.
GMA obtained more than $14 million in optional contributions from member companies, $11 million of which went to a segregated fund called the “Defense of Brands” (DOB) account to support the “No on 522” Political Action Committee.
Initiative 522 would have required packaged foods with genetically modified organisms to be labeled. The law was rejected by Washington voters in November 2013.
On Oct. 16, 2013, the state filed a complaint against GMA due to its failure to report to the Public Disclosure Commission (PDC) its contributions and expenditures, as well as which of its members contributed to the DOB account.
"No on 522" was not registered as a political committee until the next day, Oct. 17, 2013, which is when GMA also began filing reports with the PDC.
The state’s filing alleged that GMA intentionally violated the FCPA’s registration and disclosure requirements of election-related spending, but GMA countered that the FCPA’s requirements violate the First Amendment, and therefore they could not be subject to them.
After the state court imposed an $18 million penalty on Dec. 2, 2016, GMA filed an excessive fines claim on Jan. 12, 2017.
The Washington Supreme Court affirmed that the FCPA is constitutional. They also found the GMA in intentional violation of FCPA requirements, consenting that the trial court’s original penalty of $18 million be reconsidered by the Court of Appeals.
Supreme Court of the State of Washington case number 96604-4