But capitalism allows for the behavior “let the buyer beware”]. It’s the law that steps in to prevent unethical behavior, but the law is not capitalism.
Well, first of all the idea that a government of currupt, selfish leaders like we have can generate legislation which promotes ethics is itself pretty funny.
Aside from that however, under the current system, if a person has a patent I would be suprised if a chain store could produce the item themeselves without proper licensing, because then they would clearly be set up for a lawsuit. If the man has no patent, then he can be presumed to operate at his own risk. If the government passed laws preventing companies from reproducing similar products then we have the Polaroid dilemma, where, due to their rather narrow patent, they permitted no one else to enter the market. But with no incentive to change and develop their product, they eventually fell behind when the entirely new product, digital photography, came out. Finally, it went bankrupt and disappeared altogether. The market will always ferret out the bad in time.
As someone else pointed out, unjust behaviour by individuals does not make the free market itself unjust. It simply means that there will always be unethical people. Then communism comes and makes the whole system unethical! This I do not feel is a real solution.
This being said, my argument for a free market, unregulated by government, is not an argument for everything that the market produces. Leo XIII correctly condemned market materialism and commercialism, but government regulation will not change this, Faith will. When a culture has right values, the negative aspects of the market economy will decline. Nothing can ever make communism, even virtuous people, a better system.