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Commercial Speech Regulation


The Central Hudson Test

Commercial speech is NOT subject to the same First Amendment protections as political speech.  The states may regulate commercial speech if:

  1. The restriction directly advances the state interest involved; the regulation may not be sustained if it provides only ineffective or remote support for the government's purpose.

  2. If the governmental interest could be served as well by a more limited restriction on commercial speech, the excessive restrictions cannot survive.

  3. Finally, the First Amendment mandates that speech restrictions be narrowly drawn.

Central Hudson Gas & Electric Corp. v. Public Service Commission of N.Y., 477 U.S. 557, 564-65 (1980).  The court goes on to apply a four part analysis to advertising restrictions:

  1. Determine whether the expression is protected by the First Amendment. For commercial speech to come within that provision, it at least must concern lawful activity and not be misleading.

  2. Determine whether the asserted governmental interest is substantial.

  3. If both inquiries yield positive answers, determine whether the regulation directly advances the governmental interest asserted, and finally,

  4. Determine whether it is more extensive than is necessary to serve that interest.

Central Hudson, 477 U.S. at 566 (emphasis added). Finally, Central Hudson holds that blanket prohibitions must  not be narrowly drawn.   Id. at 566 n.9.  Other cases address specific examples of improper blanket bans.  See e.g., Virginia Board of Pharmacy v. Virginia Citizens Consumer Council, Inc., 425 U.S. 748, 773 (1976) (holding that a blanket ban on advertising the price of prescription drugs violated the First Amendment); Liquormart, Inc. v. Rhode Island, 517 U.S. 484 (1996) (holding that a blanket prohibition against truthful, non misleading liquor price advertising was unconstitutional).

Therefore, although commercial speech can be regulated, such regulation requires a substantial governmental interest for the regulation to withstand First Amendment analysis.  The court will review regulations on commercial advertising using an "intermediate scrutiny" standard.  The Florida Bar v. Went For It, 515 U.S. 618, 623 (1995).

For more information about advertising and commercial speech, see P. Cameron DeVore and  Robert D. Sack, Advertising and Commercial Speech, 498 PLI/Pat 655 (1997) (giving a lengthy and thorough review of advertising and commercial speech and First Amendment issues in the course handbook series).

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