Sparkle-Bright toothpaste is a new product that advertises it will give you fresh breath and shiny, white teeth. You buy a tube for $1.99, and after brushing, you have both bad breath and dull teeth. Is there a role for the public sector in this situation?
The market should be able to handle the manufacturers of Sparkle-Bright with little difficulty. You, and perhaps other consumers, were lured into purchasing the initial tube of Sparkle-Bright, but none of you will likely buy the second tube. Since toothpaste sellers depend on repeat purchases, it is unlikely that Sparkle-Bright will be in business long.
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