The winter of 1973-1974 was difficult because of the Organization of Petroleum Exporting Countries (OPEC) oil embargo

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The winter of 1973-1974 was difficult because of the Organization of Petroleum Exporting Countries (OPEC) oil embargo and shortages of natural gas. The Public Service Commission of New York ordered electric utilities in New York to end all advertising that "promotes the use of electricity." The order was based on the commission's finding that New York utilities might not have enough power to meet all customer demands for the winter. The Commission declared all promotional advertising contrary to the national policy of conserving energy. It offered to review any proposed advertising that would encourage energy conservation. The New York high court upheld the constitutionality of the Commission's regulation. The utility appealed to the Supreme Court.


1. Since the Court found that the state had a substantial interest in the subject in question (electricity conservation), why did it find the ad restrictions to be unconstitutional? Which part of the four-part test was not met?

2. Suppose the Commission had said that only advertising designed to promote energy conservation was allowed. Would that have met the Supreme Court test?


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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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