Ban On Material Support For Foreign Boycotts
A law passed by the U.S. Congress in 1977 prohibits all U.S. persons, defined to include individuals and companies located in the United States and their foreign affiliates, from supporting the boycott of Israel and provides penalties for those who willingly comply with the boycott. The B.I.S. website states:
Conduct that may be penalized under the TRA and/or prohibited under the EAR includes:
- Agreements to refuse or actual refusal to do business with or in Israel or with blacklisted companies.
- Agreements to discriminate or actual discrimination against other persons based on race, religion, sex, national origin or nationality.
- Agreements to furnish or actual furnishing of information about business relationships with or in Israel or with blacklisted companies.
- Agreements to furnish or actual furnishing of information about the race, religion, sex, or national origin of another person.
The TRA does not "prohibit" conduct, but denies tax benefits ("penalizes") for certain types of boycott-related agreements.
On this basis, some American businesses have been punished for answering their customers' question about origin of their products.
Some pro-Israeli activists have construed the law as forbidding speech and expression that supports any boycott of Israel (as opposed to actions taken to comply with the requests of foreign entities to boycott Israel) whether foreign in origin or domestic, and asked the US Anti-Boycott Office to prosecute divestment campaigners against Israel.
However, the law only forbids material participation in or material support of a boycott originated by a foreign nation or organization, not with a domestic boycott campaign, nor can the law be construed as forbidding speech that politically or morally (as opposed to materially) supports any boycott, whether foreign, or domestic. The law only prevents US organizations from being used by alien entities as agents of their foreign policy, when that foreign policy includes the pursuit of boycotting arrangements; it does not prevent US organizations or individuals from choosing how to spend or invest their money based on business or ethical considerations; it only forbids doing so as the result of a foreign entity's request. Material attempts to suppress speech through induction of state action under false pretenses, such as by claiming a domestic boycott campaign is foreign in origin may be unlawful, and may constitute conspiracy against civil rights, a Federal crime, punishable by fine and imprisonment. (Such speech is considered to be core political speech under the US Constitution, and any state actions interfering with core political speech are subject to the strictest Constitutional scrutiny.)
Read more about this topic: Censorship In The United States
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