The case will go back to the California courts and the crucial question to be decided is if Nike can legally deceive and lie about how its products are made and that the 1st amendment sanctions this behavoir, even when it occurs in a commercial realm.

Here is an excerpt from a Public Citizen press release on the case.

Despite Nike’s predictions that it will be forced to censor itself until this case is finally resolved in its favor, we doubt that Nike will shut down its public relations office and refrain from commenting on all matters of public controversy. What we do expect is that Nike will be much more careful when it tries to influence consumers by making claims about how it treats its overseas workers – which is what this case is all about. While Nike and its supporters denounced the case for its chilling effect on the speech of corporate America, a broad victory of the kind that Nike sought might put a significant damper on efforts by federal and state regulators to assure that sellers of products and services do not seek to avoid laws on truthful advertising and promotion by claiming that an issue involves important public policies.