Federal Appeals Court Rules Maryland Can’t Block Companies from Disclosing Digital Ad Tax
On August 15, 2025, the U.S. Court of Appeals for the Fourth Circuit unanimously ruled that a provision of Maryland’s digital advertising tax—specifically, a clause prohibiting companies from indicating the tax as a separate line item, surcharge, or fee to customers—violates the First Amendment. The court found in the case, Chamber of Commerce of the United States of America et al. v. Lierman, No. 24-1727 (4th Cir. Aug. 15, 2025), that this restriction constituted unconstitutional censorship by preventing companies from explaining why their prices had increased. The decision reverses an earlier district court ruling and sends the case back to U.S. District Judge Lydia Kay Griggsby to determine next steps.
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