The legality and constitutionality of offering discounts to holders of transponders issued by Massachusetts as opposed to transponders issued by other states has been upheld twice at the federal appellate level, in 2003 by the First Circuit in a case arising out of Massachusetts and in 2010 by the Third Circuit in a case arising out of New Jersey. Significantly, both courts based their rulings on the fact that Massachusetts transponders are available on equal terms to in-state and out-of-state residents and that anyone is allowed to have a transponder from more than one state at a time, choosing which transponder to use in each toll transaction to obtain the cheaper rate. The court in the New Jersey case noted parenthetically that "...out-of-state residents who commute regularly to Boston each day might very well decide to carry only a [Massachusetts] Fast Lane transponder."
