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Constitutional Law Keyed to Stone
Central Hudson Gas & Electric Corp. v. Public Service Commission of New York
Citation:
447 U.S. 557 (1980)Facts
In December 1973, during a fuel shortage, 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 comments on continuing the ban. Despite Central Hudson’s First Amendment objections, the Commission extended the prohibition in 1977, dividing utility advertising into “promotional” (intended to stimulate purchases) and “informational” categories. The Commission permitted informational advertising that encouraged shifts in consumption from peak to off-peak periods but prohibited all promotional advertising, reasoning that it would stimulate demand, waste energy resources, and increase electricity costs for all consumers. Central Hudson challenged this order, arguing it violated its First Amendment right to commercial speech. The New York Court of Appeals upheld the ban, finding little value in advertising in the “noncompetitive market” of electric utilities and concluding that the governmental interest in energy conservation outweighed the limited constitutional value of the commercial speech.
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