In the Federal Trade Commission v. Beech-Nut Packing Company case in 1921, the U.S Supreme Court ruled that false advertising was a form of unfair competition and therefore illegal under Section 5 of the Federal Trade Commission Act. The Beech-Nut Packing Company had been falsely promoting its product as apple juice when it contained little to no apple content at all. The court held that this deceptive practice not only misled consumers but also harmed competitors who were selling genuine apple juice products, thus creating an uneven playing field in the market. This landmark decision established important legal precedent for consumer protection against misleading advertising practices.

In the dissenting opinion for the Federal Trade Commission v. Beech-Nut Packing Company case, it was argued that the majority's decision to uphold a cease and desist order against Beech-Nut Packing Company overstepped its bounds. The dissent emphasized that while false advertising is indeed harmful, there should be clear evidence of such behavior before punitive measures are taken. In this case, they believed that no substantial proof had been presented showing Beech-Nut intentionally misled consumers about their product being an apple juice when it contained other ingredients as well. They also pointed out inconsistencies in how similar cases were handled by different courts and suggested more uniform standards needed to be established for dealing with deceptive practices allegations under Section 5 of the FTC Act.