The state attempted to justify the law by arguing that the ban on advertising reduced competition in sale of liquor, which resulted in higher prices and reduced consumption. The court ruled that they were not going to restrict truthful speech about a legal product on something that they saw as speculation and conjecture (Pember & Calvert, 2005).
Central Hudson Test Effects
Unsolicited Advertising
From the beginning of federal attempts to restrict unsolicited phone calls, the government has asserted that its primary interest lies in protecting citizens from invasion of privacy. Three different federal appeals courts have upheld the TCPA and the TSR in four separate challenges. These courts have all shown judicial deference in their consideration of the third part of Central Hudson, relying upon legislative findings and "simple common sense" to support the government interest in shielding citizens from invasions of privacy by the telemarketer, saving them from the cost-shifting of unsolicited fax advertisements and mitigating the problem of potentially deceptive and abusive telemarketing calls (Erickson, 2006).
Restrictions on Free Speech
In Hudson, in order for commercial speech to be protected by the First Amendment it must concern lawful activity and not be misleading. It must be determined whether the declared
Governmental interest to be provided by the restriction on commercial speech is substantial. If both questions have positive answers, it must then be decided whether the regulation directly advances the governmental interest asserted, and whether it is...
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