In the 1940 case of Fashion Originators' Guild of America, Inc. v. Federal Trade Commission, the U.S Supreme Court ruled against the Fashion Originators' Guild of America (FOGA), a group that sought to control design piracy in the fashion industry by boycotting retailers who dealt with manufacturers copying designs without permission. The Federal Trade Commission (FTC) had previously ordered FOGA to cease and desist from this practice, arguing it was an unfair method of competition under Section 5 of the FTC Act. FOGA appealed this order but lost at both appellate court and then at Supreme Court level where it was found that their practices were indeed in restraint of trade and thus violated antitrust laws. The ruling emphasized that even if an organization's intent is not malicious or its cause seems justifiable, any activity which stifles competition is illegal under federal law.

In the dissenting opinion for Fashion Originators' Guild of America, Inc. v. Federal Trade Commission, Justice McReynolds argued that the majority's decision was a misinterpretation of the Sherman Act and an overreach by the FTC. He contended that there was no evidence to suggest that competition had been stifled or consumers harmed by the actions of The Fashion Originators' Guild - their aim being only to protect original designs from piracy. According to him, this case did not involve price-fixing or monopolistic practices but rather a trade association seeking protection against design thefts which should be considered as fair business practice under copyright laws instead of antitrust violation. Thus he disagreed with ruling it illegal under antitrust law.