Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 22

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 had restrained commercial speech in violation of the First Amendment. Was its freedom of speech unconstitutionally infringed? Explain.