Central Hudson Gas & Electric Corp. v. Public Service Commission
Central Hudson Gas & Electric Corp. v. Public Service Commission is a case from the Supreme Court of the United States about whether a company has a right to advertise for its services—in this case, electricity and natural gas.
Central Hudson Gas & Electric Corp. is a company that makes and supplies electricity and natural gas to people's homes. Because energy is a necessary part of life and the company has a big business, they wanted to tell people about their services so they could make more money. They tried to advertise their products by buying TV and radio ads, sending out mailers, and doing other promotional activities.
The Public Service Commission (PSC) is a group of people who decide what kind of things companies can do to advertise their services. The PSC said Central Hudson Gas & Electric Corp. was not allowed to advertise their services because they said the company was not providing enough information about the costs, risks, and reliability of their services.
Central Hudson Gas & Electric Corp. sued the PSC, saying the PSC did not have the right to tell the company it could not advertise. The Supreme Court of the United States had to decide who was right.
The Supreme Court ruled that Central Hudson Gas & Electric Corp. was allowed to advertise their services as long as the advertisements were not false or deceptive. The Court said the PSC did not have the right to tell the company it could not advertise. The Court said the company has the right to advertise in a way that is honest and not misleading.
Central Hudson Gas & Electric Corp. is a company that makes and supplies electricity and natural gas to people's homes. Because energy is a necessary part of life and the company has a big business, they wanted to tell people about their services so they could make more money. They tried to advertise their products by buying TV and radio ads, sending out mailers, and doing other promotional activities.
The Public Service Commission (PSC) is a group of people who decide what kind of things companies can do to advertise their services. The PSC said Central Hudson Gas & Electric Corp. was not allowed to advertise their services because they said the company was not providing enough information about the costs, risks, and reliability of their services.
Central Hudson Gas & Electric Corp. sued the PSC, saying the PSC did not have the right to tell the company it could not advertise. The Supreme Court of the United States had to decide who was right.
The Supreme Court ruled that Central Hudson Gas & Electric Corp. was allowed to advertise their services as long as the advertisements were not false or deceptive. The Court said the PSC did not have the right to tell the company it could not advertise. The Court said the company has the right to advertise in a way that is honest and not misleading.