Central Hudson Gas & Electric Corp. v. Public Service Commission

Central Hudson Gas & Electric Corp. v. Public Service Commission, 447 U.S. 557 (1980), was an important case decided by the United States Supreme Court that laid out a four part test for determining when restrictions on commercial speech violated the First Amendment of the United States Constitution. Justice Powell wrote the opinion of the court. Central Hudson Gas had challenged a Public Service Commission regulation that prohibited promotional advertising by electric utilities. Justice Blackmun and Justice Stevens wrote separate concurring opinions and were joined by Justice Brennan. Justice Rehnquist dissented.

The case presented the question whether a regulation of the New York Public Service Commission violates the First and Fourteenth Amendments because it completely bans promotional advertising by an electrical utility.

Holding

The court ruled that a regulation that completely bans an electric utility from advertising to promote the use of electricity violates the First and Fourteenth Amendments.

The court instituted a four-step analysis for commercial speech to the Commission's arguments in support of its ban on promotional advertising:

1. Is the expression protected by the First Amendment? For speech to come within that provision, it must concern lawful activity and not be misleading.
2. Is the asserted governmental interest substantial?
3. Does the regulation directly advance the governmental interest asserted?
4. Is the regulation more extensive than is necessary to......
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