It still affects the buyers, though. If I get hacked because I bought crappy “encrypting” hardware, I may not even care about getting my 20 bucks back because I just lost thousands and my life is ruined.

It’s a beautiful and appealing idea that market forces will regulate everything if you just let things go. But we’ve tried that for long enough now to see that the real world is too complex and the consequences of bad regulation are too serious.