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The issue here is that there are a lot of things sold that are flat-out scams. I don't think it should make a difference if the product is life threatening or not; there should be measures in place to make sure that governments aren't buying a stupid piece of equipment that doesn't work.
Governments should be able to get their money back via a legal framework, but selling a product that doesn't do the job it claims to do shouldn't be something that ends up with you in jail. It's a slippery slope - what's next? Homeopathy? Tarot card readings? Dick pills? Snake oil? Acupuncture?
All of these things claim to do things that there's no scientific evidence for; why aren't salesman of these products also be prosecuted?
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