Abstract: By providing a system for contacting a label and controllably moving the label into direct, secure, adhesive engagement with a container and its flange member, a dependable, effective, and reliable label applying apparatus and label application method is realized which securely affixes a label in its entirety to a product container on a continuous production basis, totally eliminating unwanted tenting of labels. By employing the present invention, a product holding container, having a forwardly protruding lip or flange, is advanced towards a label dispensing zone with the label positioned for contacting the leading-edge of the forwardly protruding flange.