The United States Supreme Court heard argument in a case this week and free enterprise and capitalism are at stake. The case is about a lawsuit that mutual fund investors filed against the funds advisors, claiming that the fees charged by the advisors were “too high.”

They rely on a 1970 amendment to the Federal Anvestment Company act that not to accept excessive compensation. The amendment gives investors the power to enforce the duty in Court.

The problem is that the sets law no standard by which a mutual fund advisor can tell whether he is going to be sued or not. He leaves it to lawsuits (this one now five years old) and the courts to sort through the dispute. This is terribly inefficient.

There are over 8000 mutual funds available to an investor. Moreover, any investor can go online to see the fees paid to advisers and directors. If the investor thanks the fees are too high love they can exercise their voluntary free will and not purchase shares in the fund. It is absurd to think that the government should have any role in regulating mutual fund adviser fees. The free market already protects investors.

What if next time they seek to regulate the fees you charge in your business? What if it fixes the prices of the goods you sell — the goods that consumer voluntarily purchases from you at a price that he deems to be in his best interest?