In the 1932 case Advance-Rumely Thresher Co., Inc. v. Jackson, the U.S Supreme Court ruled on a dispute involving agricultural machinery manufacturer Advance-Rumely and A.L.A. Jackson, an official of the Federal Trade Commission (FTC). The FTC had ordered Advance-Rumely to cease and desist from certain sales practices that it deemed deceptive and unfair under Section 5 of the Federal Trade Commission Act; specifically, selling its products at different prices in various parts of the country. The company challenged this order arguing that their pricing strategy was not "unfair" within meaning of act as they were merely adjusting prices based on varying market conditions across regions. The Supreme Court held that while price discrimination could be considered unfair if it led to monopoly or restrained competition, there was no evidence suggesting such outcomes in this case. Therefore, it concluded that FTC's application of 'unfairness' exceeded its statutory authority since Congress did not intend for all forms of price discriminations to fall under purview of 'unfair methods'. Thus ruling favored Advance-Rumely by setting aside FTC's cease-and-desist order.

In the dissenting opinion for Advance-Rumely Thresher Co., Inc. v. Jackson, Justice McReynolds disagreed with the majority's interpretation of Congress' power under the Commerce Clause to regulate local activities that may indirectly affect interstate commerce. He argued that such a broad interpretation would allow Congress to control virtually all aspects of life and business in America, which he believed was not intended by the framers of Constitution. Furthermore, he contended that this case did not involve any direct or substantial effect on interstate commerce but rather an indirect and remote one at best; therefore it should be outside federal jurisdiction according to previous precedents set by Supreme Court rulings like Hammer v Dagenhart (1918). The justice also expressed concerns about potential misuse or abuse of this expanded power by future congresses if left unchecked.