Consumer protection laws are usually based on one of two conceptual arguments. The first argues that consumers do not always know what is best for them. This view is at the heart of the government's efforts to encourage the use of goods worthy of respect and discourage the use of goods with defects.

The second assumes that consumers simply do not have enough information to make the right choice. Laws prohibiting the use of certain products are usually based on the assumption that not all consumers make the right choice.

For this reason, drugs such as cocaine and heroin are illegal. Children are prohibited from consuming products such as cigarettes and alcohol on the grounds that they are unable to make choices in their own interests.

Other rules assume that consumers are rational but may not have enough information to make a choice. Rather than expecting consumers to determine for themselves whether a given prescription drug is safe and effective.