Section X
Regulation of Advertising
Commercial Speech Doctrine
- government must assert a substantial state interest to justify regulation
- government must demonstrate regulation of advertisement directly advances this interest
- regulation must be narrowly drawn
History of Advertising Regulation
- Valentine vs. Chrestensen - 1942
- Times vs. Sullivan - 1964
- *Bigelow vs. VA - 1975
- VA St. Bd. Pharmacy vs. VCCC - 1976
- Central Hudson vs. PSC - 1980
- Posadas de Puerto Rico vs. Tourism Co. - 1986
Regulation of Advertising
- self-regulation
- lawsuits by competitors
- state/local laws
FTC Test for Deceptive Advertising
- must be representation, omission, or practice likely to mislead consumer
- practice must be considered from perspective of a reasonable consumer
- must be likely to affect consumer’s choice of product
FTC Enforcement Powers
- guides
- voluntary compliance
- consent orders
- cease and desist (litigated) orders
- substantiation
- corrective advertising
- injunctions
- trade regulation rules