Anthony Paul
Central Hudson case summary
05FEB16
In the case of Central Hudson Gas and Electric Corp. v. Public Service Commission of
New York, the Supreme Court ruled that the banning of promotional advertising by the PSC of
NY went against the first and fourteenth amendment and ruled in favor of the Central Hudson
Corp.
The PSC banned Central Hudson from using promotional ads to promote energy use in
the face of and energy shortage in the winter of 1973-1974. When the shortage ended three years
later, the commission voted to extend the ban, prompting Central Hudson to take the commission
to court on the grounds their commercial speech under the first and fourteenth amendment had
been subdued and restrained.
Justice Powell used one citation from First National Bank of Boston v. Bellotti to build
the decision of the court. Justice Powell stated that there is no “constitutional objective” to the
suppression of commercial advertising if it does not accurately inform the public of lawful
activity. However, the commission banned the ads that were to promote energy use and the ads
that were to be placed were not deemed as misleading. Justice Powell also cited that Central
Hudson was going to advertise using energy efficient means that did not worsen the energy
crisis, therefore erasing the argument by the commission that the ads were detrimental to the
energy situation.