The Indiana chapter of the American Family Association (AFA) says selling gay cupcakes goes “beyond the pale.”

In weighing in on the controversy over a baker's refusal to sell gay cupcakes to a group of Indiana University-Purdue University at Indianapolis students for an October 11 National Coming Out Day event, the group's spokesman, Micah Clark, defended the baker.

The students were first told the bakery, Just Cookies located inside the publicly-owned City Market, does not sell cupcakes, but when the students asked for rainbow-frosted cookies, they were told to go elsewhere.

“I explained we're a family-run business, we have two young, impressionable daughters and we thought maybe it was best not do that,” David Stockton, co-owner of the bakery, told a reporter.

Stockton then likened colorful cupcakes to something obscene.

“We have our values, and you know, some things … for instance, if someone wants a cookie with an obscenity, well, we're not going to sell that,” he said.

Citing a city ordinance that bans discrimination based on sexual orientation, Wayne Schmidt, president of the City Market Board, told the Indianapolis Star that the bakery could lose its lease.

“That could be grounds for taking away their stand in the market,” he said. “I'd hate to lose them, but we can't tolerate any kind of discrimination like that.”

“If this were a Muslim-owned bakery, what would happen?” Clark told the paper. “I don't think the city would pursue it the way they're pursuing it now.”

“It's one thing if someone walks into a store and buys a cookie off the shelf, but [the Stocktons] were being asked to become part of the celebration. To make rainbow cookies for a special event with which the company has a disagreement – I think that goes beyond the pale of what we should expect companies to do,” he added.