"Every product they test is at the request, and the expense, of its manufacturer, who seeks out UL not because it has to--no federal law mandates safety tests for most items--but because it's cheaper and easier than a product-injury lawsuit, Drengenberg says. In fact, most retailers won't stock a product that hasn't been safety tested. But it's all voluntary, a tidy case study of the free market at its best: bottom-line drivers of consumer good."
Wednesday, December 17, 2008
CSM on UL's private market regulation
The news is otherwise filled with stories of how the markets "failed" and the need for more (governmental) regulation. Congrats then to the Christian Science Monitor article for pointing out a great example of the private market regulation by United Laboratories (UL).