I agree with what you said here, but the reality is that the industry is not there yet. The vast majority of e-liquid retailers are either not registered with an organization like ECITA or AEMSA or do not mention any independent testing on their website. If I, as a consumer, required diacetyl-free liquid, I would have a difficult time finding vendors who could guarantee this, and limiting my choices so severely may lead me to not having access to the liquid I want in this way. For instance, I need to be able to buy liquid that is higher in PG than VG and has strong flavors, among other things. What if none of the vendors who can verify that their liquid is diacetyl-free meet my other requirements as a consumer? Am I SOL then?
And of course, this is not counting all of the other chemicals I may want my liquid to be free of (acetyl propionyl, etc.).
I agree with the checks and balances of the free market system that we have in place in this industry. But the checks and balances you propose of bringing fraud charges against those who claim their liquid to be diacetyl free when it is not is tough to wrap my head around, because we are talking about thousands of business who sell liquid and flavors they haven't tested, and the number claiming to be diacetyl free is not small. Should we bring charges against them all? How can we even go about doing so? It's a daunting prospect just to think about weeding them all out. And again, it is further complicated by the addition of other chemicals we may want our liquid to be free of.
I am not suggesting by any means that we need government regulation; again, as long as they lack understanding of the industry and fail to work for consumers, they should have no place in this. What I am suggesting is a tightening of industry standards. We should be encouraging all vendors to register with AESMA, ECITA, or another organization that will help them with regular testing, or if they do individual testing that the results be verified by an independent third party and published. Or perhaps we could insist that sources of flavors have all of their products tested, and that vendors/manufacturers verify where they order their flavorings from.