People v. Mobil Oil Corp., 48 N.Y.2d 192 (1979)

A county law banning all signs on or near service station premises that refer directly or indirectly to the price of gasoline is unconstitutional as a violation of the First Amendment because it restricts speech based solely on content.

Summary

Mobil Oil Corp. was convicted of violating a Westchester County law that prohibited any signs referring to gasoline prices except those on the pumps themselves. The Appellate Term reversed, finding the law unconstitutional. The New York Court of Appeals affirmed, holding that the law violated the First Amendment because it impermissibly restricted commercial speech based on its content. The court reasoned that the law, when read in conjunction with another section targeting deceptive practices, was aimed at truthful, non-deceptive price advertising, which is protected speech. The court emphasized the importance of free dissemination of truthful price information in a free enterprise system.

Facts

Mobil posted two four-foot by four-foot signs at its Tuckahoe gas station and car wash, stating