Commerce Clause Law and Legal Definition

Commerce clause refers to provision which is listed in the U.S. Constitution That vests Congress with the exclusive power to regulate commerce with foreign nations, among several states, and with the Indian tribes. This exclusive federal power carries an implicit consequence for states' powers. When states regulate commerce within their own borders, they cannot enact laws that discriminate against out-of-state economic interests in favor of economic interests of within-the-state competitors.

The commerce clause prohibits discrimination and provides for non-discrimination rule. Discrimination under the commerce clause means differential treatment of in-state and out-of-state economic interests that benefits in-states and burdens out-of-state economic interests, as opposed to state laws that regulate even handedly on interstate commerce.[Family Winemakers of Cal. v. Jenkins, 592 F.3d 1, 20 (1st Cir. Mass. 2010)].