Commercial Speech

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Commercial Speech
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The Evolution of Protections for Commercial Speech
Valentine v. Chrestensen (1942)
No protections for advertising
Times v. Sullivan (1964)
Protections for editorial advertisements
Virginia State Board of Pharmacy v. Virginia
Citizens Consumer Council (1976) ..free flow of
commercial information is indispensable
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Central Hudson Test
from Central Hudson Gas
Electric Co. v. Public Service Commission of New
York (1980)
In deciding for Central Hudson, the Supreme Court
put forward the following test to determine when
the state may restrict advertising.

1. Whether the commercial speech is eligible
   (truthful, legal, and not misleading or
   deceptive).
2. Whether there is a substantial government
   interest.
3. Whether the restriction directly advances that
   government interest.
4. Whether the restriction is narrowly drawn.

This test was applied in the case of Posadas de
Puerto Rico Associates v. Tourism Company of
Puerto Rico (1986) to uphold a commonwealth ban
on local advertising for gambling.
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The Federal Regulation of Advertising
SUPREME COURT OF THE UNITED STATES
_________________ No. 02575 _________________
NIKE, INC., ET AL., PETITIONERS v. MARC KASKY
ON WRIT OF CERTIORARI TO THE SUPREME COURT OF
CALIFORNIA June 26, 2003 PER CURIAM.
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The Federal Regulation of Advertising
Federal Trade Commission (1914)
And advertiser may be held liable when

1. There is a representation or omission of
   information likely to mislead.
2. The representation or omission is material.
3. The representation or omission must likely
   mislead a reasonable consumer.
4. The representation or omission must be likely to
   cause harm.

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The Federal Regulation of Advertising
Federal Trade Commission Actions
Advisory Opinions Industry Guides Policy
Statements Rulemaking (Trade Regulation
Rules) (Substantiation)
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The Federal Regulation of Advertising
Federal Trade Commission Remedies
Consent Agreements Cease-and-Desist Orders Court
Injunctions Civil Penalties Criminal Penalties