Disclosures are often used to inform consumers in the early stages of a transaction. They are especially popular when there is thought to be an imbalance of savoir-faire between the parties. The idea is that if the consumers really knew what they were in for, they would have made another decision. This conclusion might have been drawn under suspicion that the vendors are hiding material facts. Or one might think this is a bit haughty and judgy on the part of the regulator putter-togetherers. This implies that consumers cannot do a little research and inform themselves before making a decision. Either way, all other things equal, more information is better than less information, right?
Maybe.
Gathering information is part of any worthwhile transaction. Only after a review of alternatives can a purchasers feel confident that their decision best suits their needs. At the beginning of the process they may feel confident in their priorities only to have them challenged. They may walk in thinking they’re buying a sedan and drive out in an SUV.
In addition to supporting a spirit of investigation, it is to the consumers’ benefit to learn early on that to be vigilant in their interactions. A good shopper will ask questions and compare answers. An environment of abundant disclosures might lead people to believe that they will be told what is best for them. And everytime they feel they could have done better, they will wonder why no one was there to guide them.
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