تقلب در مصرف کننده، سوءاستفاده و اعتماد

Yet, despite the reliance requirement's intuitive appeal, this paper argues that it should be abandoned. It shows that conditioning recovery on reliance leads to inadequate deterrence of misrepresentations, which in turn results in a host of inefficient effects: from allocative inefficiency to wasteful investments and rent-seeking activities. Instead of reliance, recovery should depend on a showing of a ‘price impact’, namely that the statement triggered an increase in market price. Once an effect on price is established, liability should extend to all representees—relying and non-relying alike.