Another solution might be legislation requiring independent accredited labs to be involved in the testing process, but again you can have massive problems here

Another solution might be legislation requiring independent accredited labs to be involved in the testing process, but again you can have massive problems here as the labs that pass questionable product are the ones who get their contracts renewed. Here's a suggestion: companies are allowed to use in-house testing, but as soon as defective/substandard products are found in the market, the company loses its in-house testing license and must have its products validated by external agencies. Only after X number of years/batches/volume of fault-free product can a company request to reinstate its in-house testing license. And those external agencies may charge whatever they want, of course. And if a competitor finds a fault in an agency's testing procedures, they win said agency's existing contracts. That model creates all the adversarial business relations that small-government aficionados seem to salivate over, I think.