ABSTRACT
The Supreme Court placed advertising outside First Amendment protection in 1942, in a case called Valentine v. Chrestensen. With its curt decision in Valentine v. Chrestensen, the Court originated the "commercial speech doctrine", which was to deny constitutional protection to commercial advertising until the mid-1970s. The four-part test for determining the constitutionality of regulations on commercial speech was set forth by the Supreme Court in Central Hudson Gas & Electric Corp. v. Public Service Commission, a case in which the Court upheld a utility's right to promote the use of electricity. The Federal Trade Commission (FTC) primary mission is to protect consumers from unfair or deceptive market practices and to promote vigorous competition. Despite the elaborate legal apparatus for regulating advertising, self-regulation by the advertising industry has been called the most efficient tool for curbing excesses and illegalities. The securities statutes mandate disclosure of financial information about securities that are bought and sold on the stock exchanges.
