Central Hudson GAS AND Electric Corporation V. Public Service Commission OF NEW YORK 447 U.S. 557 (1980) PDF

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CAPTION: CENTRAL HUDSON GAS AND ELECTRIC CORPORATION V. PUBLIC SERVICE COMMISSION OF NEW YORK 447 U.S. 557 (1980) JUDICIAL HISTORY: Central Hudson challenged ban on commercial advertising in state court. NY Court of Appeals upheld lower court rulings. Central Hudson appealed to the Supreme Court. FACTS: Following energy shortage during winter of 1973-1974, NY Public Service Commission ordered state public utility entities to cease advertising that promoted electric use. 3 years later after shortage eased, commission requested public input on continuing the ban. ISSUE(S): Did ban on advertising violate freedom of speech as protected by first and fourteenth amendments? RATIONALE: 1. Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council 2. Bates v. State Bar of Arizona DISCUSSION/ANALYSIS: The First Amendment applies to ordinary commercial speech if it concerns a lawful activity and is not misleading, although the level of protection is lower than for other forms of speech. The regulation fails the four-step analysis for commercial speech because it is broader than necessary to achieve the goal for which it is designed. It would prohibit speech about products or services that would result in no increase in total energy usage and thus would be unrelated to conserving energy. CONCLUSION: Judgment of New York Court of Appeals is reversed. Cannot approve complete suppression of Central Hudson’s advertising. SIGNIFICANCE: Government can regulate commercial speech under 1st amendment assuming there is substantial government interest that is directly advanced by regulation. Regulation cannot be broader than necessary to achieve that goal....