In the case of Federal Trade Commission v. National Casualty Co., the U.S. Supreme Court ruled in favor of the Federal Trade Commission (FTC). The FTC had accused National Casualty Company, an insurance firm, of deceptive practices under Section 5 of the Federal Trade Commission Act by misleading consumers about its accident and health insurance policies. The company argued that it was not subject to FTC jurisdiction because state law regulated its business activities as part of the insurance industry. However, this argument was rejected by both lower courts and eventually by a unanimous Supreme Court decision which held that Congress intended for such companies to be within FTC's regulatory purview when they engage in unfair or deceptive acts affecting commerce.

The dissenting opinion in the Federal Trade Commission v. National Casualty Co. case argued that the majority's decision to uphold FTC's cease and desist order against National Casualty Company was an overreach of authority, as it went beyond what Congress had intended when they enacted Section 5 of the Federal Trade Commission Act. The dissent contended that this section only gave FTC power to prevent unfair methods of competition, not all deceptive practices or acts regardless if they affect competition or not. They believed that by extending its jurisdiction in such a way, FTC was acting more like a legislative body than an administrative one which is contrary to constitutional principles separating powers among different branches of government.