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Regulatory Law Keyed to Shapiro, 4th Ed.
Central Hudson Gas & Electric Corp. v. Public Service Commission of New York
Citation:
447 U.S. 557 (1980)Facts
In December 1973, during the energy crisis, the New York Public Service Commission ordered electric utilities to cease all advertising that promoted the use of electricity. When the fuel shortage eased in 1976, the Commission sought public comment on continuing the ban. Central Hudson opposed the ban on First Amendment grounds. The Commission extended the prohibition in a 1977 Policy Statement, distinguishing between “promotional” advertising (intended to stimulate purchases) and “institutional and informational” advertising (providing information without promoting sales). The Commission acknowledged the ban was imperfect but maintained it would help dampen unnecessary growth in energy consumption. The Commission permitted “informational” advertising designed to encourage shifts in consumption from peak to off-peak periods. The Commission also argued that promotional advertising would give “misleading signals” to the public by encouraging energy consumption during a time when conservation was needed. Central Hudson challenged the order, arguing it violated its First Amendment rights to engage in commercial speech.
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