The Emperor's New Vitamins

When something is a credence good, there are two ways the consumer might be protected against fraud. One is through the force of reputation. But because with credence goods people cannot figure out for sure if a product was a fraud even after they use it, they have nothing unequivocal to pass along via word-of-mouth, in chat rooms, or in online product reviews. Consumers who look to reputational sources for helpful information are less likely to find it. Brands that have perpetrated a fraud can get away with it for a long time before enough negative feedback accumulates to effectively bring them down.

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