ch. 14 advertising

Question 1

Valentine v Chrestensen

Answer 1

Chrestensen bought a submarine and wanted to advertise for tours. Court ruled advertising had no FA protection

Question 2

New York Times v Sullivan

Answer 2

• Court ruled the message communicated information and was not a commercial ad.
• Paid political speech
• Some kinds of commercial speech protected by FA

Question 3

Bigelow v Virginia

Answer 3

• The abortion ads were not purely commercial
• Contained factual information of clear public interest
• Soeech is not stripped of FA protection merely b/c it comes in the form of paid ads

Question 4

VA State Board of Pharmacy v VA Citizens Consumer Council

Answer 4

• Pharmacy board prohibited licensed pharmacists from advertising price of prescription drugs
• Freedom of speech also appllies to the recipient of information
• FA protection had never been denied merely b/c of commercial reasons
• FA protection not lost b/c money is spent to project it
• Commercial speech is not so removed from any exposition of ideas that it lacks protection
• Matter of public interest that economic decisions be intelligent & well-informed
• Some forms of commercial speech may be regulated (i.e. untruthful speech)

Question 5

Hudson Gas & Electric Corporation v Public Service Commission

Answer 5

-Electric company barred from ads during energy crisis
-Hudson test:
Gov may regulate false advertising and ads for unlawful goods/services (side note)
Gov. may also limit speech if
1. gov claims a substantial state interest to justify the regulation
2. the gov demonstrates that the regulation directly advances the claimed interest
3. the regulation directly advances the state interest through the least speech-restrictive means possible

Question 6

44 Liquormart v Rhode Island

Answer 6

Court ruled Rhode Island failed to establish a relationship b/w its abridgement of commercial speech and goal of promising temperance

Question 7

Lorillard Tobacco Co v Reilly

Answer 7

• Massachusetts had created regulations that included attempts to restrict outdoor advertising and point-of-sale ads
• State’s interest was unrelated to the communication of ideas

Question 8

US v Edge Broadcasting

Answer 8

Ban on lottery ads in NC even though the radio station’s audience included Virginians

Question 9

Nike v Kasky

Answer 9

Kasky lost case against nike because he didn’t have standing, meaning he had no suffered from injury from Nike’s speech

Question 10

Lanham Act

Answer 10

Regulates the trademark registration process and also includes a section permitting business competitors to sue one another for false advertising

Question 11

U-Haul International v Jartran Inc

Answer 11

Jartran sued for misrepresenting U-Haul’s trucks and prices in an advertisement

Question 12

Federal Trade Commission

Answer 12

• Independent agency that reports to congress
• Headed by 5 commissioners, nominated by pres and confirmed by senate
• FTC protects consumers from deceptive/unfair practices by business.

Question 13

Puffery

Answer 13

Ads that exaggerate the merit of services/products in such a manner that no reasonable person would take the ad seriously

Question 14

FTC preventive measures

Answer 14

• opinion letters
• advisory opinions
• industry guides
• trade rules
• voluntary compliance

Question 15

FTC corrective measures

Answer 15

• cease & desist orders
• consent orders
• substantiation
• litigated orders
• corrective advertising
• injunctions

Question 16

FTC v Colgate-Palmolive Co

Answer 16

• Rapid Shave commercial showed razor could shave sandpaper

- start of regulatory approach

Question 17

CAN-SPAM act

Answer 17

Prohibits use of false header information in commercial emails and requires unsolicited messages to include opt-out instructions

Question 18

Jaynes v Commonwealth of Virginia

Answer 18

VA supreme court overturned Jaynes’ spamming conviction saying that the law violated a FA right to engage in anonymous speech