Cato Institute
Policy Analysis
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Page 32
can protect rights by investigating and prosecuting fraud
when it occurs.  For example, the marketing of a medical
device advertised to consumers as safe and effective but
later shown to be unsafe and ineffective is fraud.  Manufac-
turers of fraudulent medical devices are guilty of crimes
and should be investigated, prosecuted, and punished.
However, fraud cannot be established before a product is
advertised and marketed; it can only be established after a
product has been marketed and evidence exists to prove the
fraudulent act in a court of law.
The concept of justice in America is that one is pre-
sumed innocent until proven guilty.  In the case of medical
devices, this concept of justice implies that the FDA would
have to prove to a court of law that a manufacturer had
engaged in fraud before a product could be legitimately
banned from the market.  Of course, this is not how the
process works under the current system of FDA regulations.
These regulations require manufacturers to "prove their
innocence" by demonstrating that their medical devices are
safe and effective before they market those devices.  This
regulatory process inverts the concept of justice from
"innocent until proven guilty" to "guilty until proven
innocent."
Why the Market Model Will Work for Medical Devices
Third-party certification is an undeniable and unquali-
fied success.  Under the watchful eyes of UL and its compet-
itors, consumers are certain that literally thousands of the
products they use are safe.  Within specified limits, bul-
letproof glass is indeed bulletproof, and smoke detectors go
off in the event of a fire.  Magnetic resonance imaging
(MRI) machines, the Jarvik-7 artificial heart, and cardiac
arrest paddles are different from light bulbs, toasters, and
cordless telephones.  But all are designed to perform spe-
cific functions under specified conditions, and they can be
certified to work as designed without government monopoly of
the certification process.  After all, until about a quarter
century ago, medical devices reached the market without
government approval.  With repeal of the government monopoly
on approval, they can again reach the market as certified
products.  Those that work well will be purchased and used,
and those that do not will languish unsold.  And in cases of
fraud, the manufacturer will be held liable.
Businesses try to attain maximum profits, and harming
customers does not contribute to that goal.  Buying and
selling are rarely single, isolated transactions where the