I find it rather humorous that one would put such trusting faith into ANY company producing consumer products, either branded or generic. Your are right:

We should trust discretion to an INFORMED and INTELLIGENT public of people.

But those are key words: INFORMED AND INTELLIGENT. Sir Thomas More's Utopia has never, in the history of man, come to fruition. The majority of the human race has become so burdened by the calamities of everyday life that they haven't time nor energy (no need in even mentioning resources) to become the former OR the latter. The fact that you would trust a faceless trademark over an elected body proves that point.

Furthermore: the majority of these [branded] companies actually end up using the same materials, and often the same production company/factory, as the generic brands at which you so steadily wag your corporate finger. Sometimes the only significant difference is the quality of the law firm hired to cover their ass.