[abalone]

Ergo, it is a downside of all unregulated markets.

I would avoid the term "imperfection" for something that is fundamental to markets. The information on conditions of production usually has to come from the seller and there is usually little incentive for them to provide it unless compelled to.

[iacvlvs]

It is fundamental to all markets in the real world. It is also a defining trait of the platonic ideal of a free market, and one of the reasons why the platonic ideal absolute free market is unrealisable. Markets can be more or less free, but never entirely so. Regulation by non-market forces is one way that markets are made less free. Such regulation is often intended to counteract or offset other things that make the market in question less free.

[icebraining]

Ergo, it is a downside of all unregulated markets.

Unregulated? Do regulated markets have perfect information?

[abalone]

Didn't say that. Poor information on the conditions and effects of production is fundamental to unregulated markets. Much like externalities, they are not mere "imperfections" or footnotes which is usually how they are presented in pro-free-market Econ 101 texts. They are fundamental; e.g. much of the environmental threat the planet faces can be contributed to externalities and poor info. Nevermind the poor animal-poop slaves.

Regulations and activism (such as this type of journalism) are some of the non-market forces that can compensate.

[hrjet]

But regulations may lead to bribery and other workarounds.

Activism may be biased. It may also lead to long-winded debates, and ultimately, to polluted information. (Eg, global warming, GM crops, etc).

Ultimately, it doesn't matter if there is regulation or not, activism or not; there is no perfect information.

[malkia]

You have most regulations around kid's toys, and I'm thankful for that!