A U.S. appeals court on Monday agreed to reconsider an earlier ruling which had blocked a San Francisco law that mandated health warnings for soda and other sugary drinks.

Insider had reported in June of last year about San Francisco’s desire to become the first city in the U.S. to require health warnings on soda and other sugar-added drinks. The ordinance would have required 20 percent of an outdoor soda ad be outfitted with a black-box warning label saying:

“WARNING: Drinking beverages with added sugar(s) contributes to obesity, diabetes, and tooth decay. This is a message from the City and County of San Francisco.”

A group, led by the American Beverage Association filed a civil complaint in the U.S. District Court for the Northern District of California last July, arguing that the requirement violates free-speech rights under the First Amendment. The California Retailers Association and California State Outdoor Advertising Association joined in on the complaint. A three-judge Ninth Circuit panel ruled in favor of the American Beverage Association this past September, finding the 2015 ordinance requiring warning labels on outdoor soda ads “unduly burdened and chilled protected speech.”

Reuters is reporting  that the appeals court said it would rehear the case before a larger, 11-judge panel.

Insider’s Take – Back in June both the cities of Baltimore and Philadelphia were following this case closely. Seattle also recently put a tax on sugar drinks.  California tends to be the leader on these types of reforms with their desire to add the warning label.  No comments as yet from the American Beverage Association, but we expect them to be active in getting this law dismissed.

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