I think this is the big weakness in our current implementation of capitalism/market economy. It's supposed to depend on perfect information about producers and

I think this is the big weakness in our current implementation of capitalism/market economy. It's supposed to depend on perfect information about producers and products, but how can the average person know what's in a firefighting foam, and how it will affect them? Even if you take the government aspect out of it - consider if your bought this foam for your own use. How would anyone know what it would do to them and their family, in time to make an educated decision to avoid poisoning themselves? Are we supposed to all get a degree in chemistry, build a lab in the basement, and analyze every product we bring into our homes? If no one knows it's poison, or if the only ones who know are the producers, or if the purchaser is separated from whoever gets poisoned (i.e. govt purchasing personnel -> people drinking the water at the bases), then there's no incentive for anyone to make an alternate foam, especially if the most effective/cheapest version is the poisonous one. A less effective or more expensive foam would be a hard sell when the people buying are not the people getting poisoned. Without a requirement to verify that a compound is safe for long-term exposure before being sold, this is going to keep happening, no matter who is buying or selling. Unfortunately, you can't say regulation in the USA without getting shouted down as "anti-capitalist" or worse, "socialist."