Federal law generally prohibited broadcast lottery advertising, but exempted stations licensed to states that conduct lotteries. North Carolina did not sponsor a lottery, while Virginia did. Edge operated a radio station licensed in Elizabeth City, North Carolina, but broadcast from near the Virginia border; 92.2% of its audience and 95% of its advertising revenue came from Virginia. Because it was licensed in North Carolina, Edge was barred from broadcasting advertisements for the Virginia lottery and claimed substantial lost revenue.
Issue
Whether federal statutes that bar lottery advertising by broadcasters licensed to nonlottery states, while allowing such advertising by broadcasters licensed to lottery states, violate the First Amendment as applied to a North Carolina station whose audience is mostly in Virginia. More specifically, the question was whether the statutory scheme satisfied Central Hudson's requirements for regulation of commercial speech.
Rule
Under Central Hudson, truthful and nonmisleading commercial speech concerning lawful activity may be restricted if the government has a substantial interest, the regulation directly advances that interest, and the restriction is not more extensive than necessary. In applying the third and fourth Central Hudson factors, courts assess the fit between the legislature's ends and means in relation to the overall regulatory problem; the fit need only be reasonable, not perfect, and a regulation need not eliminate the problem entirely or prove effectiveness solely as to one speaker in isolation.
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One of 10 multiple-choice questions for this case. Pick an answer to see why.
Congress enacts a statute barring broadcast advertisements for a state-run sports pool on radio stations licensed in states that prohibit such pools, while allowing those ads on stations licensed in states that run them. Lakefront FM is licensed in Erie, Pennsylvania, which bans the pool, but 88% of its audience is in Cleveland, Ohio, where the pool is legal. Lakefront FM challenges the law as applied to it, arguing the statute does not directly advance the government's interest because most of its listeners are in Ohio.
Under the majority's reasoning, which is the strongest response to Lakefront FM's challenge under the third prong of Central Hudson?
Explanation. The majority held that the lower courts asked the wrong question when they focused only on whether the law directly advanced the government's interest as applied to a single broadcaster. Under Central Hudson's third step, the relevant inquiry is whether the regulation directly advances the governmental interest in light of the overall scheme accommodating differing state policies. A border station's atypical audience mix does not defeat direct advancement when Congress chose a general licensing-based rule for all stations in nonparticipating states.