What does "interstate commerce" refer to?

"Interstate commerce" specifically refers to economic activity that occurs between different states. This encompasses the buying, selling, or transportation of goods and services across state lines, and it is a key area of regulation under the Commerce Clause of the United States Constitution. The federal government has the authority to regulate interstate commerce to ensure a seamless economic flow across state boundaries, thereby preventing individual states from implementing laws that could hinder trade between them.

For example, if a business in California sells products to a customer in New York, that transaction is considered interstate commerce because it crosses state lines. This definition is crucial in understanding how economic interactions are structured in the context of federal law. Thus, this concept is fundamental to maintaining a unified economic system among the states.