Whether Congress's power to regulate interstate commerce authorized it to prohibit interstate shipment of ordinary goods because they were produced with child labor.
Holding
No. The Child Labor Act exceeded Congress's power under the Commerce Clause.
Reasoning
The Court distinguished cases in which Congress had prohibited interstate transportation of lottery tickets, impure foods and drugs, women transported for prostitution, and intoxicating liquor. In those cases, the prohibited articles or transactions themselves were harmful, and barring their use of interstate channels was a way to regulate commerce and prevent the evil associated with that commerce.
The goods covered by the Child Labor Act were harmless articles of commerce. The statute did not target a harmful feature of their transportation; instead, it denied interstate access to manufacturers in order to compel compliance with Congress's preferred rules governing child labor in production.
Manufacturing and mining, the Court reasoned, are local activities rather than commerce. Goods do not enter interstate commerce merely because their owner plans to ship them across state lines; commerce begins when their interstate transfer actually commences, such as upon delivery to a carrier. Allowing federal control over all production intended for interstate shipment would, in the Court's view, place virtually all manufacturing under federal authority.
Nor could Congress justify the measure as a response to unfair competition from states with weaker child-labor protections. Different state labor rules and economic conditions may create competitive advantages, but the Commerce Clause does not give Congress a general power to equalize those differences by excluding goods from interstate trade.