The First Amendment and Restrictions on Advertising of Securities Under the Securities Act of 1933

Whether the benefits of restricting advertising outweigh any adverse consequences is no longer a question for solely legislative or administrative determination. Restrictions on advertising have become subject to first amendment review as a result of the development since 1976 of the doctrine that commercial is constitutionally protected.1 Commercial has been referred to by the Supreme Court alternatively as expression related solely to the economic interests of the speaker and its audience2 and as speech proposing a commercial transaction.3 Whatever may be the precise meaning of these phrases, commercial plainly includes advertising of commercial products and services.4