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Advertising, Commercial Expression, & the Regulation of Public Relations Communication Law & Regulation “Advertising” and “Commercial Expression”: an expression which proposes a transaction That which materially affects a corporation’s business, property or assets Issues to consider: who is speaking? Is that speech protected? Traditional View: no protection Current Standard: truth in advertising Traditional Legal View – No Protection Valentine v. Chrestensen (1942) Breard v. City of Alexandria (1951) Federal Trade Commission v. Colgate-Palmolive (1965) Federal Trade Commission v. Colgate-Palmolive (1965) Advertisements – “Truth in Advertising” Public Interest Test: 1) Is the information truthful, and not misleading? 2) Does the advertisement concern a legal and lawful activity? Then…. Advertisements – Constitutional Protection New York Times v. Sullivan (1964) lead-in case Bigelow v. Commonwealth of Virginia (1975) establish 1st Amendment protection for ads Virginia Board of Pharmacy v.Virginia Citizens Consumer Council (1976) first application of 1st Amendment protection of commercial expression Advertisements – Can it be restricted? Central Hudson Gas & Electric Corp v. Public Service Commission (1980) Central Hudson Test: 1) Is the ad lawful and not misleading? 2) Is the asserted government interest in the regulation substantial? 3) Does the regulation directly advance that government interest? 4) Is the regulation not more extensive than necessary? Later modified by Board of Trustees of State University of NY v. Fox (1989) – not a “least restrictive means” test Advertisements – With Restrictions Condado Holiday Inn v.Tourism Company of Puerto Rico (1986) gambling Florida Bar v.Went-For-It Inc (1995) direct mail Edge Broadcasting v. US (1993) gambling; govt interest Greater New Orleans Broadcasting v. US (1999) gambling; same statute 44 Liquormart v. Rhode Island (1996) Lorillard Tobacco Company v. Reilly (2001) Regulating Agencies Securities and Exchange Commission (SEC): Food & Drug Administration (FDA): Federal Trade Commission (FTC): Corporate Speech & Campaign Financing Buckley v.Valeo (1976): Corporate Campaign Expenditures First National Bank v. Bellotti (1978): Corporate Political Expression Citizens United v. Federal Election Commission (2010) Corporation free speech regarding political campaign contributions Citizens United vs. Federal Election Commission (2010)