Company 1: This company doesn't advertise the cigarette package which can hurt Company 2.
Company 2: This company lies about the side effects of cigarettes on their label to deceive consumers.
Our company recommends smoking our special cigars because they are not harmful for your health or teeth, we guarantee your dentist would recommend.
They lied to me! Now I have to do screening for lung cancer because they didn't warn me about the harmful side effects in their advertising! These companies need to be stopped by a law!
The Wheeler-Lea Act
Company 1 will deal with consequences for putting false advertisement to be better than Company 2.
Company 2 will not suffer any penalties because they obeyed the Wheeler-Lea Act because it corrected its deceptive label of side effects.
This company disobeyed The Wheeler-Lea Act by using false advertisement by selling people cigars making them feel safe and cool without mentioning the side effect. Their business is over and they have to deal with the judge.