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by AnthonyMouse 18 days ago
Please try to distinguish these separate things.

Pollution is an externality. If Alice hires a company to do "Hydro Excavation" and they pollute Bob's water, even if Bob knows all about it and is entirely opposed, he can't prevent it by not patronizing them because he isn't a party to the transaction. So the solution to this has to be to prohibit pollution.

Product safety is about information. When Bob knows that a particular brand of milk is adulterated with chalk, he doesn't buy it. Which means that all you need for this is product labeling and liability. If the ingredients list chalk, the customer who doesn't want chalk doesn't buy it. If the ingredients don't list chalk then the seller is not in compliance if the product contains it. If the battery is unsafe then you can both not purchase it because the reviews concluded it was unsafe or sue them if your house burns down. And the compliance process is simple: You list the actual ingredients on the label and have responsibility for damages caused by your product. No massive regulatory bureaucracy with thousands of pages of rules, just liability for fraud and harm.

The problem for all of these is that the perpetrator has to be in your jurisdiction. If companies in China are emitting copious amounts of CO2, regulations in Europe can't do much about it. If those companies are making unsafe products that end up on the world market, you can't sue them in the US because they have no real presence in the US. But complex product regulations don't solve that either, because they too are subject to the same problem; foreign companies drop ship things that don't comply. Nor does putting the liability in the wrong place, because generic transportation or payments intermediaries are in a worse position than the government itself to be the ones evaluating things that come over the border.

Consider it this way: Why doesn't US customs exclude unsafe products from being imported from other countries? Consider what they would have to do to actually accomplish that.

1 comments

> Product safety is about information. When Bob knows that a particular brand of milk is adulterated with chalk, he doesn't buy it. Which means that all you need for this is product labeling and liability.

This is regulation, and it's only as good as enforcement. Meaning it requires government inspections and labs. Again, we've already proven this in history.

> sue them if your house burns down

Sure, if you only care about compensation and not prevention. Also I don't think you've considered the practicalities of your example, in that no regular person will 1. determine the battery cause. 2. prove it. 3. bring a successful suit against a corporation.

> Consider it this way: Why doesn't US customs exclude unsafe products from being imported from other countries? Consider what they would have to do to actually accomplish that.

Well... they do seize millions of products yearly. It's generally sub-$800 packages getting through. Your original point of incumbents targetting upstarts and thus forcing "burner" companies is the wrong causality. Burner companies are incentivized to specifically skirt liability and reputation. Regulating the frontend incentivizes self-policing against sub-companies designed to be dissolved.