The Washington Supreme Court has narrowly upheld an $18 million fine levied against an association of large food brands that funneled dark money into a state political campaign.
The 5-4 decision Thursday found that the penalty against the Grocery Manufacturers Association — now known as the Consumer Brands Association — did not violate the U.S. Constitution’s ban on excessive fines. The association said it would petition the U.S. Supreme Court to review the case.
The group, which included companies like Coca-Cola and Nestle, in 2013 collected $14 million from its members. It then contributed $11 million of that to help defeat a Washington state ballot initiative that would have required labeling of genetically engineered ingredients on food packaging.
The association failed to register as a political committee in the state, did not disclose which companies contributed the campaign money and filed no campaign-finance reports until after Attorney General Bob Ferguson sued.
As part of the lawsuit, the state uncovered evidence that one association executive noted during a meeting that having a pooled campaign account would “shield individual companies from public disclosure and possible criticism.”
