Seattle will spend $500,000 to settle a lawsuit it lost with phonebook companies over its sensible opt-out program for residents.
Beginning in May 2011, Seattle began allowing residents to opt out of unwanted phonebook deliveries. The program was so popular, the city reports that more than 2 million pounds of paper are saved annually as a result. The phonebook companies sued the city and lost, but won on appeal. The city has chosen not to appeal to the Supreme Court.
The phonebook companies alleged in their complaint that the phonebook ordinance, 'denies [their] rights guaranteed by the First and Fourteenth Amendments to the United States Constitution.'(free speech and due process). If not for the legal concept of 'corporate personhood', the phonebook companies wouldn't be able to sue Seattle to assert Constitutional rights originally written only for people.
Rather than ask the question, 'are the phonebook companies people?'and 'do they have the right to free speech?'the courts have focused largely on whether the content in the phonebooks (advertisements and phone listings) represent free speech which can't be regulated or commercial speech, which can be.
The companies claim, 'The First Amendment to the United States Constitution prohibits government from -- enforcing the desire of citizens to avoid communications [and] from prying into citizens' preferences regarding communications they seek to avoid.'