The Public Service Commission of State X issued a regulation completely banning all advertising that “promotes the use of electricity” by any electric utility company in State X. The commission issued the regulation to conserve energy. Central Electric Corporation of State X challenges the order in the State courts, arguing that the commission has restrained commercial speech in violation of the First Amendment. Was the corporation’s freedom of speech unconstitutionally infringed? Explain.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter16: Government Regulation
Section: Chapter Questions
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The Public Service Commission of State X issued a regulation completely banning all advertising that “promotes the use of electricity” by any electric utility company in State X. The commission issued the regulation to conserve energy. Central Electric Corporation of State X challenges the order in the State courts, arguing that the commission has restrained commercial speech in violation of the First Amendment. Was the corporation’s freedom of speech unconstitutionally infringed? Explain.

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