The problem is the information asymmetry, there is always another person for a fraudulent company to exploit due to a dysfunctionally expensive court system. Its why we need market level regulations and public institutions that recover peoples money and fine the organisations for their breaches. This sort of thing works a lot better in the EU than in the US due to the sales laws, the ability to return within 2 weeks, default warranty on goods out to 12 months and expectations of goods to be as advertised forced onto the retailers. They work, they need more enforcement from regulatory bodies but retailers do follow them for the most part and quickly change tune when you go to take legal action when they don’t because courts know these laws inside and out.
The problem is the information asymmetry, there is always another person for a fraudulent company to exploit due to a dysfunctionally expensive court system. Its why we need market level regulations and public institutions that recover peoples money and fine the organisations for their breaches. This sort of thing works a lot better in the EU than in the US due to the sales laws, the ability to return within 2 weeks, default warranty on goods out to 12 months and expectations of goods to be as advertised forced onto the retailers. They work, they need more enforcement from regulatory bodies but retailers do follow them for the most part and quickly change tune when you go to take legal action when they don’t because courts know these laws inside and out.