The Dormant Commerce Clause refers to a legal doctrine derived from the Commerce Clause in the U.S. Constitution. While the Commerce Clause explicitly grants Congress the power to regulate interstate commerce, the Dormant Commerce Clause is an implied restriction that limits the states’ ability to pass legislation that discriminates against or excessively burdens interstate commerce.
The Supreme Court has interpreted the Dormant Commerce Clause to prohibit state laws that unduly restrict interstate commerce, even when there is no congressional legislation. For example, in West Lynn Creamery Inc. v. Healy (1994), the Supreme Court struck down a Massachusetts state tax on milk products because the tax discriminated against non-Massachusetts citizens and businesses.
In National Pork Producers Council v. Ross (2022), the United States Supreme Court addressed the application of the Dormant Commerce Clause to a California law known as Proposition 12. This law set specific standards for the confinement of pigs, effectively requiring out-of-state producers to comply with California’s standards if they wanted to sell pork within the state. The key issue was whether Proposition 12 violated the Dormant Commerce Clause by imposing an undue burden on interstate commerce.
In a closely watched decision, the Supreme Court upheld California’s Proposition 12, ruling that the state law did not violate the Dormant Commerce Clause. The Court reasoned that the law did not explicitly discriminate against out-of-state businesses, nor did it impose an undue burden on interstate commerce that outweighed the state’s interest in promoting animal welfare. The decision affirmed the principle that states have significant leeway to regulate matters within their borders, even if such regulations have extraterritorial effects, as long as they do not discriminate against interstate commerce or create an undue burden.
For additional information, see this Harvard Law Review article on National Pork Producers Council v. Ross and U.S. Constitution Annotated - Article 1 Section 8 Clause 3 Overview of Dormant Commerce Clause
[Last updated in August of 2024 by the Wex Definitions Team]