Should be press liable or not

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                      SHOULD PRESS BE LIABLE OR NOT?

       Recent years have increased legal accountability of producers and

    advertisers for providing SAFE products and RELIABLE informationto

   customers.  Agovernmentinfluences      a  widerangeof market

    operations from licensing requirementsto  contractactions.That

    control announces and enforces determined norms of quality.

       Each of these regulations isdesigned  to protect consumers from

    being hurt or CHEATED by defects in the goods and services they buy.

    This  matter,whenproducers  looktothe law rather than to the

    market to establish and maintain new standards of quality (oftheir

    goods),  shows, that modern market has an ability of selfregulation.

    But it also shows another unbelievable feature:consumers areboth

    incapable  ofrationallyassessing  risks and unaware of their own

    ignorance.

       Companies and corporations all over the world aresystematically

    inclined  toSHIRKon quality and that without the threat of legal

    liability may subject their customers or other people to seriousrisk

    of harm from their products if it could save money by doing so.

       According to this point ofview,  formostgoods and services,

    consumers are POWERLESS to get producers to satisfy their demand for

    safe,  high-qualityproducts!The  unregulatedmarket lets unfair

    producers to pass on others the costs of their mistakes.

       Legal liability is ready to correctthese "marketfailures"by

    creating   aspecialmechanism  (feedback),regulatingrelations

    between producers and customers. Unfair producers should be punished

    and their exposure is increasing.

       One market,however, has completely ESCAPED the imposition of legal

    liability.  The market for political information  remainsgenuinely


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    free  oflegallyimposed quality obligations.The electronic mass

    media are subject to more extensive government regulation thanpaid

    media,  butintheir  roleassuppliers of political information,

    nothing is requiredto  meetany externally  establishedquality

    standards.

       In fact, those, who gatherand  reportthe news,have no legal

    obligations to be competent,thorough or disinterested.And those,

    who publish or broadcast it, have no legal obligation to warrant its

    truthfulness,to   guarantee   its   relevance,   to   assure   its

    completeness.

       The thing is: Should the political information they provide fail,

    for example,to be truthful,relevant,  or complete,the costs of

    this  failure will not be paid by press.  Instead they will be borne

    by the citizens.Should the information intrude the privacyofan

    individual   or   destroy   without  justificationanindividual's

    reputation - again, the cost will not be borne by producer of it.

       This side of "activity" ofproducersof  harmfulordefective

    information (goods,services, etc) practically is not acknowledged.

    Producers of most goods and servicesare  consideredworldsAPART

    from  thepress in kind,not just in degree.Holding producers in

    ordinary markets to ever higher standards of liabilityisseen  as

    PROCOMSUMER.   Proposing  holdingthepress  toanystandard  of

    liability for political information is seen asANTIDEMOCRATIC.The

    press is constitutionally obligated to check on the government.

       Most of policymakers justify legal liability for harms, caused by

    goods and services and quite limited liability for harms,caused by

    information. Liability for defective consumer products is PREDICATED

    on a market failure.As for "unfair" producers,power of  possible

    profits  PREVENTconsumersfrom translating their true preferences

    for  safetyandquality  intoeffectivedemand.   So,   customer

    preferences  remainoutsidethe safety and quality decision-making

    process of producers.Today,  it'll be anewmechanism  toforce

    producers to follow customers true preferences.


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       Lack of liabilityfor defective or harmful political information

    can be predicated only on a different kind of supposed market failure

     - not a failure of   the market to SUPPLY the LEVEL of safety that

    customers want but its failure to supplytheamount  ofpolitical

    information that society should have.Some experts say,that free

    market has tendency to produce "toolittle"correct  information,

    especially political information.

       The thing is: political information isa  public good and it has

    many characteristics of a public good. That is a productthatmany

    people  valueanduse  butonlyfew will pay for.Factual(real)

    information cannot easily be restricted to directpurchasers.Many

    people  benefit who do not pay for it because the market cannot find

    the way to charge them.As you  cansee,providers  ofpolitical

    information  try to get as much profit as possible spreading it,so

    they HAVE TO supply "too little" info. Otherwise - the market FAILS!

       Here is another reason. Some analysts consider that the market also

    fails because of low demand. Even if suppliers could "earn all their

    money",they wouldn't provide the socially optimal amount ofinfo!

    Private  demandfor political info will never be the same as social

    demand. And it will never reflect its full social value.

       If it  weretrue,that  politicalinformationwas   regularly

    underproducedby  themarket,there  wouldbecause for serious

    concern that might well justify generous sibsidies - in the formof

    freedom  fromliabilityfor the harms they cuase - for information

    providers.  But a proper look at modern market shows thatproducers

    of political informationhave  developed a wide range of strategies

    for increasing the benefits of their effortstosolve  thepublic

    good problem.

       The most  obviousexampleof  aspontaneously generated market

    solution to the public good problemis  ADVERTISING.Byproviding

    revenue  inproportiontotherelative size of the audience (for

    radio  &TV)or  thereadership(for  magazines&newspapers),

    advertisers play a SIGNIFICANT role in the internalizing process. In


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    effect,  the sale of advertising at a price that varies according to

    the   number   of   recipients   permits informationproducers  to

    appropriate the benefits of providing aproductthat  manypeople

    value  but few would pay for directly.  Advertising has an effect of

    transforming information from a public into a private good. It makes

    possible for information providers to make profits by satisfying the

    tastes of large audiences for whose desiretoconsume  information

    they are unable to charge directly.

       Thus, customer of goods or services and citizen of any country -

    are in the same conditions. Like customers - citizens may have (and

    they have)  differentpreferencesfor political information,but

    citizens do not valueinformation  aboutpolitics only because it

    contributes to their ability to vote intelligently and customers do.

    Like customers - citizens'tastes  differinmany ways and  that

    generate widevariations  intheintensity  oftheir demand for

    political information.

       Since it does not appear to be true, thatpoliticalinformation

    market  isblockedby  anongoingproblem  ofundersupply,the

    conventional justification for granting the press broad freedom from

    legal liability for the harms it causes must give away!It does not

    necessarily mean that the economic case for legal sanctions has been

    made.  Althoughitseems the market could be relied upon to supply

    "enough" information.So that subsidies in the formof  protection

    from  legalliabilityare not needed.Personal responsibility and

    legal accountability would be 100%if the information marketcould

    internalize to producers not only the benefits but also the costs of

    their activities & failures.As for victims,they'll get onemore

    chance  to avoid the harms happened from the production of defective

    information.

       Legal accountability for harm isdesirable  inamarket   that

    systematicallyfails  topunish"unfair"producers for defective

    products. This kind of failure occurs in two quite different cases:


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    1) The first occasion has to do with the market's responsivenessto

       the  demands of consumers.The failure occurs when customers are

       unable to detect defects before purchase or to protect themselves

       by  taking appropriate precautions after purchase,when they are

       unable to translate their willingnesstopay  fornondefective

       products  intoademand  thatsomeproducers will satisfy and

       profit from. It also occurs when suppliers are unable to gain any

       competitivead-  vantageeitherby  exposingdefects in their

       rivals' products or by touting the relative merits of their own.

    2) The second kind of market failure is an inability tointernalize

       harm  to bystanders - third parties who have no dealings with the

       producers but who just happen to be in thewrongplace  atthe

       wrong time when a product malfunctions.Even when these kinds of

       failures occur,legal accountability is problematicif  itin

       turn  entailsinevitableerror  inapplication or requires the

       taking  ofsuchcostly  precautionsthatthey  coverupall

       benefits.

       Conceiving of quality asa  functionof accuracy, relevance and

    comple- teness,consumers of political informationare  notina

    strong  positionwhenit comes to detecting quality defects in the

    political information they receive.Revelance may  wellbewithin

    their ken,  but since they are quite unable to verify for themselves

    either the accuracy or the completeness of any particular account of

    political events.In addition,  since political information usually

    comes bundledwith  otherentertainmentand  newsfeaturesthat

    sustain  theirloyality to particular suppliers,consumers are not

    inclined  topunishinformation  producersby   avoiding   future

    patronage even when they commit an occasional gross error.

       Nevertheless, competitionamong journalistsand  publishersof

    political information tends to createan  environmentthatisin

    general  moreconductiveto  accuracy than to lies or half-truths.

    Journalistic careers can be made byexposing  others'errors,and

    they  canberuined  whena journalist is revealed to be careless


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    about truth.These realities create incentives for journalistsnot

    to make mistakes.

       Moreover, the investment that mainstream publishers and broadcas-

    ters make in their reputations for thoroughness and accuracy attests

    to the  market's perceived ability to detect and reward suppliers of

    consistently high- quality information.Information suppliersthat

    cater  tomorespecialized  tastes play a significant role.  These

    alternative ways of getting info are often probe apparentrealities

    more  deeply,interpreteevents  withgreatersophistication and

    analyse data more thoroughly than the mainstream media areinclined

    to do.

       In doing so, of course,their principal motivation is to satisfy

    their own customers.But while pursuing this goal,they  constrain

    (even  iftheydo not completely eliminate) the mainstream media's

    ability to portray falsehood as truth orto  OMITkeyfacts  from

    otherwise apparently compelete pictures.

       The arrayof  incentiveswithrespect  to at least the general

    quality of political information,with which themarket  confronts

    information  providerscreatessystematic  tendenciesfor them to

    provide political info that is accurate and complete.Or perhaps it

    would  be slightly more precise to say that the market unfortunately

    does not appear systematically to reward producers offalsehoodor

    half-truth information yet,according to their activities.So that

    consumers of political information don'tneedthe  cluboflegal

    liability  toforceinformation  providerstoprovide  them with

    quality information.

       The analysts ought not to be read as an asserting that the reason

    the  market for political information works well is that it provides

    just the right kind and quality of informationtoeach  individual

    citizen  andthat each individual citizen has identical preferences

    for info about government.Indeed,  the premise of this argument is

    that  themarketworks because citizens (or customers) do not have

    identical preferences and producers exploitthatfact  byfinding


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    ways  tocaterto and profit from the varying demands of a diverse

    citizenry.   An   implicit   assumption   provides   the   normative

    underpinnings for the analysis.Obviously, the full implications of

    this assumption cannot be worked out here.

       The claimthat  themarketin  general"works"shouldn't  be

    understood as a claim that the information it generates is uniformly

    edifying and never distorted. As you know many information producers

    pander  to the public's appetite for scandal and still others see to

    it.  These facts do notwarrantthe  conclusionthatthe  market

    doesn't work.

       More significantly,it  seemsinconceivablethat any system of

    government regulation - includingasystemin  whichinformation

    producers  areliablefor  "defective" information - could in fact

    systematicallygenerate  aflowof  politicalinformation   that

    consistentlyprovided  morecitizens with the quality and quantity

  that met their own needs as they themselves defined  thandoesthe

    competition in the marketplace of ideas that we presently enjoy.

       This analysissuggests  thattheworkings of the market create

    situation in which consumers of political informationdonot  need

    the  threatofproducer  liabilitytoguarantee  thattheyare

    systematically getting a TRUSTWORTHY product.

       But consumers are not the onlypotential  victimsofdefective

    information and market incentives are not always adequate to protect

    NONCONSUMER victims from the harm of defective information. Innocent

    bystanders,  suchas pedestrians hit by defective motorcycles,are

    sometimes hurt by products over whose producers they have no control

    either as consumers or competitors. Persons, who find themselves the

    unwitting subjects of defective information,stand in ananalogous

    position.

       For example,   a   storyaboutsexual  assaultmightbevery

    interesting for public and might serve well the publicinterestin

    being  informed about the police efforts or criminal justice system.


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    But the victim's name isNOT  NECESSARYtoitspurposeand  its

    publication both invades her privacy and broke her safety.In cases

    like this, it's not so easy to have confidence in market incentives.

    The  harmfromthe  defectishighly  concentrated on the single

    defamed or exposed individual.

       Now, it's time to ask the major question:Shouldthe  pressbe

    permitted  toexternalize particularized harms?Why should not the

    press,  like other business entities,be liable when defects in its

    products cause  particularized harm to individual third parties who

    have few means of self-protection at their disposal?

       According to the Constitution,defamed public officials orrape

    victims  shouldhaveaccess  tomassmediafor  rebuttal.As for

    everyday practice,the press is not always eager to givespace  to

    claims  that it has erred.There are two objections,why the press

    shouldn't be responsible for the harm of suchkind:accountability

    to  amoredemanding legal standard would compromise its financial

    viability and undermine its independence.

       These objections are tooSELF-SERVING  tobetaken  completely

    seriously:  Thefinancialviability argument is no more persuasive

    when the product of the press harms innocent third partiesthanit

    is   when   other   manufacturers'   malfunctioning   products  harm

    bystanders.  Aspressdoesn't   underproduce   information,   thus

    "freedom" from liability can't be defended as necessary subsidy. The

    "financial viability" objectionpointstoward  theimpositionof

    liability for harm.

       The need  tomaintainthe  press's independence from government

    does providesupport  forthepress's  objectionthatliability

    threatens  themunduly.But  it'shardto sustain the claim that

    government's censorious hand would lurk behind a rule thatrequired

    the  presstocompensete  individuals.Itis  notobviousthat

    enforcing a rule that simply prohibited publishing the names of rape

    victims would signal the beginning of the end of our cherished press

    freedom.


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       Asking whether the press should be more legally accountablethan

    it  is now for publishing defamatory falsehoods about individuals or

    revealing rape victims' names touches a number of difficult,highly

    discussed questions. In spite of the fact, by recasting a portion of

    the debate over legal accountability and byfocusingattention  on

    the   disparity   of   legal  treatmentbetweenproducers  inthe

    information  marketandthose  inothermarkets  forgoodsand

    services,  itdoesseem  possibleto gain some fresh and possibly

    useful insight.

       The reality seems to be that,with respect tothe  qualityand

    quantity   of   political   information,  freecompetitioninthe

    marketplace of ideas performsadmirably,  withinventiveways  of

    overcoming  marketfailureand  withflexibility in adapting to a

    countless consumers preferences.

       In light of this reality it ought not to be amiss to suggest that

    when neither the threat of increasing a supposed undersupply nor the

    looming shadow of government censorship is implicated, the massmedia

    should be liable for egregious errors.