Governments picking winners and losers through legislation is most of what has taken us into the dire straights we're in as a nation. Particularly when insider trading is legal for congress, and back-door deals are made daily which end up being simple money transfers from tax-payers to politicians and their friends.
Legislation in the fashion of this thought experiment would be the same, and the deals would be brokered before the law was even on the public's radar, with appropriate stock purchased or dumped, with last-minute amendment due to those not wanting to lose business bribing lawmakers.
Get rid of laws. Let the free market decide what the best products are. You want people to make better choices? Educate; don't legislate. That only empowers corrupt and greedy lawmakers.
