modification. delay is not modification. there's actually been one -- charles: would you agree -- >> i just explained it's a delay and change. charles: maybe defeat? >> no, i don't think it's defeat. charles: all right, guys, we had a quasi serious conversation. photograph. [laughter] thanks for watching, see you tomorrow night. >> don't wait, call me today. >> lawyers are making money off this man who says he's too injured to work and this woman who says she can't walk. >> we are the good guys. if you fight her. >> you are completely screwed. john: says the trouble. that's our show tonight when. ♪ >> and now john stossel. ♪ [applause] him. john: and eric and a half has too many laws.

is this the federal rules about 175,000 pages with. her now on not so cynical that i think politicians pass these is to control us. when there were pass someone said this lawyer is needed him. but the cumulative effect is to strangle life, stifle innovation . for every pound of good and they do tons of on-. i should not call him accretion khnum.

you first. >> most of the laws or regulations are things we now except. you guys miss cigarette commercials? [applause] john: he said the smokers can't have any. >> we are winning, banning it in homes. john: a dictatorship of the majority. >> a single judge has looked at the issue and says there is no right to smoke. i don't understand why that has anything to do with anything. you had wonderful laws and not to germany, the soviet union. past mild highs of justice's court.

streets and like their little children on? [applause] >> you have all your fancy theories. recently strengthened. >> who may view this hour? >> you have far more power than i do hon. i have to persuade that i am right. all he does is recycled. you have not achieved anything. what concrete have you received? >> we would be here until next week. >> is not in your fire.

john: achievement is passing a regulation. >> i didn't pass those. john: years are it's fair. your law professor. >> require them. >> professors are supposed to be non-partisan. >> file a complaint or shut up. >> don't insult me. >> as anybody agree. john: you require assistance to some people. >> they're learning and biden.

for the first-time they're learning that they can use their legal skills not just a benefit someone with money but serve what they think is the public interest in. they do what they think is in the public interest. we keep winning. >> the public is a phony term. [applause] the only public measure of the hess and in many is in the declaration of independence. and the government is assigned the job of protecting our individual rights saughs. we can do all this stuff and want to do baring stepping on other people. >> but under the declaration we decide what is and the public

interest through congress, the courts, the regulatory agency. >> you keep talking about this. >> no one -- john: hang on. your students sued the dark in half. >> wondering the same shirt. john: uses the bars features women more for her cat. >> fox business all of those. john: that these places also women are fuzzier. it takes more time. >> the interesting thing is we get the hair dresser for hillary clinton. john: a share herders is that. he just billy people into forming. of the rise to have to preview

the. >> what value do something. john: ladies night band purse but actually, that's been done in the great majority of states. offering cheaper drinks to women because mostly guys were going. there have a half more women. [applause] >> of the men now cropping. in state after state after state they have ruled that it's illegal. >> the history of government is promises to do given tonight. from the pharaoh's some to the monarchs a, the severe here to help you.

they cause major wars and concentration camps. all of this. we abolished -- the next up is the tyrannical state. the next step from that is a more dictatorial state. >> abolish government? >> restrain it, just like the founding fathers did. john: personal injury lawyers went to court and sue companies that may letters. are we safer? >> the studies show we are. if we don't guess who pays and. john: how did these help? their 41 warnings no one reads them.

forty-one. >> how many people go shopping in the grocery store and read the label. john: thank you. stick around most american support try to show the folly of our instinctive reaction. when there's a problem, people think the new law will solve the problem honda. one group of people, those of the pechora open on manage a business. you discover and includes rules the can to achieve. >> i cannot physically complying john: it runs a flower shop. he was just sued.

and a woman in a wheelchair cleanses stow was not excessively. even though he has a bell. >> have iran and. she didn't come to my store. john: it turns out the woman has filed 46 similar lawsuits. >> there was to play in the new. john: she sibila her him it

would live with the fact. john: sounds like extortion will want one. that make us 210 doesn't. he fights -- john: the americans with disabilities. >> well, there are overwhelmingly passed and then when. and didn't. >> let's talk with this issue.

the governments did not have enough time then. in written is under an innocent man who incident. was open along with katz the militant. and in many cases to. john: yes. in wilton has said that was discussed and tennant. hidden the woman beaten told his tender question as one this moi

dahna and -- >> o would agree with him. didn't be. >> if he knows so much in what do you join me, get that of the average salary and. go before legislature, according one. make your arguments in him and he of people who are in a position to judge the and act upon them while will adopt a position. c'mon down endless battle it out john: hostage to giving my opinion nearly. one of them is that this law is just almost impossible who follow. sinks and no higher than 34 inches. the bottom no lower than 34. kinnucan pay attention of this?

de. >> of 2400 points in the average small business and then need to be corrected. john: 2401. >> over 100 measurements and restaurants have to be correct very few deal with many of the small struggling businesses -- if they can get information about the standards the need to meet, i guess it's challenging. in many cases these people would just getting by and these lawsuits are closing. >> again, i would agree. these cases involve a one-way fee structure. if the plaintiff wins they get the fees. l kinds of abuse.lens adulthood. the lawyers to american do anything we want because it jumps up the hours. >> frivolous lawsuit.

john: and almost never happens. he lawyers and judges don't want to punish each other. >> wire you same plaintiffs do better? john: they both make out in the business loses. >> how would you enforce the laws? what is a miracle solution? john: district -- disabled people a good customers. >> you know that's wrong. if the free enterprise system works so well we would need the ada hidden. that kind of thing that when everyone else supports it may e want to rethink your position. john: thank you. stick around. more later. coming up, fraud caught on tape. this man said his fingers were crushed and he was 200 work. here he is working. also. stupid warning labels.

never see this? aplastic warn that people fish with. it comes with a warning that says not for human consumption. tonnght our studio audience gets to vote for our children is something the purwe all share.ter life but who can help prepare them for the opportunities ahead? who can show them how to build on your succes but not rely on it. who can focus on making your legacy last for generations to come? that someone is a morgan stanley financial advisor.

and we're ready to work for you. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small busins solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions c help you do what you do... ev better. ♪

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♪ >> did not actually produce anything themselves. they're just trying to essentially leverage and hijack somebody else's idea to see if they can extort some money out of them courses has been described by some as the single biggest high-tech innovation in this country. >> what they are talking about our patent troll's. [laughter] john: this topic needs some explanation. that's a you invent something, spend your stamina but the new way to a send x-ray images of the internet. your invention makes something better. makes sense to you be rewarded for its discovery which is why we have patents. they inspire people to invent new things. in the constitution, america's founders explicitly said that the federal government may promote the progress of science by giving investors an exclusive right to their discoveries.

great. but even good rules get abused by lawyers. lawyers like patents troll rob burma. one company that he helped start manage to get ahold of a patent on sending any medical image of the internet. the u.s. patent office gives them out liberally. his firm then sued medical imaging companies. the result, an mit study concluded that after the companies were sued innovations stops completely. they stopped inventing things. you kill innovation. >> actually, i think we do just the opposite. i think we give people incentive to innovate. a lot of invention still come from garages and basements and people that put time and effort into inventing something. we assist those people in asserting their patents. in essence we are giving them the same ability that the big companies have when they patton something. john: how many of these have you

filed? >> my current company -- john: both your old and new. >> between 50 and 100. john: and these people actually invented something unique? did not discover fund stuff that was at the office? >> we look at them carefully. we only take on patents that we think a legitimate. and where there is significant infringement going on. john: big companies are just stealing ideas from little people? >> sometimes. history is filled with them. in today's economy is very difficult for a small company to bring a product to market. apple, if it were to start today, could not bring their products to market. what they're forced to do is partner with somebody who has manufacturing and distribution. when a small company partners with a big company, it's a very uneven relationship, and the small company usually gets screwed. patton said the great equalizer. they give us the ability to fight back, and that's a were

doing. john: well, your current company has sued microsoft. your private company -- previous company sued ibm, walmart, office depot, capital one, all these companies are just east? >> well, a couple of things. first, some of these intentionally steel, but not all of them. they can, before they introduce a product, research to see what plans they might beeinfringing on. they choose not to. instead they choose to, in essence, but there had in the sand. that's fine, but then they can't complain when the patent that they are infringing on or the patent owners come after them. john: what do you think of this phrase patents trop? >> no, certainly i have been called worse. [laughter] john: which are you? >> what i am as a capitalist that makes money for inventors like these people and adds value for shareholders.

john: obama and all of the critics are just wrong about associating you with -- >> what is wrong is with a broad brush putting everybody in the same category. i'm not making excuses for those companies that bring lawsuits just for the sake of litigating. pay me because it's cheaper than litigating. i think that's wrong, and we don't engage in that type of activity. john: i look at this chart. it just goes up and up. you collectively trolled. you sued amazon for selling a touch screen. responding when a user writes on it. >> first of all -- john: you on that? you invented the touch screen? >> i didn't. in that instance we acquired the rights from an inventor. let's say an inventor develops the touch screen. let's say they go the amazon. amazon says, you're a small and ventura. zero eight. maybe they even showed the

touchscreen to amazon. maybe, just maybe amazon said d'amato, were not interested in it and then maybe two years later it came out and a product because a lot of patents are just garbage. the patent office does a terrific job with the resources that they have. of 50 got a patent data new message. side by side motion by pulling alternately on one chain and the other. his dad was a patent attorney. he filed this is a joke, but the government approved it as a real patent. >> the problem is, they can always hire the best and brightest. they are the gatekeepers. if we had a better qualified person at the patent office, that would benefit everybody in the system. john: we will solve this year. thank you for taking my abuse. coming up, our studio audience

gets to award a thousand dollars to the person who submitted this year's wacky as warning label. also, this man says he is too injured to work. but does he look disabled to you? disability fraud next. ♪ hot i need to redeem some venture miles before my demise. okay. it's ey to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps, and...it's taken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red button on top. ♪ how did he not see that coming? wh's in your wallet?

♪ and i'll never dert you ♪ ♪ i'll stand by you yeaaaah! yeah. and the longer you stay, the more rewards you get. great! oh! ♪ i'll stand by you ♪ won't let nobody hurt you ♪ isn't there a simpler way to explain the loyalty progr? yes. standing by you from day one. now, that's progressive.

♪ >> have you been injured on the job? >> stop worrying and call us. >> is just that easy. >> collected over one-third of a billion dollars for injured people. >> injured worker. john: lawyers like those guys up you get money if you cannot work or injured. of course if you really are injured we want you helped, if you're really injured. with all those workers compensation lawyers chasing money, and they must make a lot because they buy all those television ads, i wonder, were the people really injured or do they exaggerates just to get money?

, at least a quarter of then she'd, says paul "bear. insurance companies hire him to secretly videotape people who file claims, people like this truck driver who said he hurt his back to work and is now too injured to work. he cannot even do i do -- do light duty. >> we knew that this guy would be active. there were some leads that he might be hanging out with some relatives. before we know what he's in the water swimming, talking, conversing and then decides to climb up to the top of the slides as you can see and jumps off with no sign of disability whatsoever. and the key here is this guy has a neck and back injury that is basically preventing him from being able to work everyday. to me that is quite contradictory to someone who can sit at an office and work on a computer. john: insurance companies don't

hire you to check out everybody come only when there is suspicious. >> we see folks that are answering their telephone and say, well, i'm always at home, but every time they answer the phone your background noise. it might seem like they're some are else. john: when the videotape you find fraud how often? >> 81%. john: 81%? >> some form of fraud. john: this cost america hundred billion, about 9 billion for family. >> direct. john: this happens because? people accept this. as a big company perry they can afford it. members of report them. >> it is an entitlement issue. the problem is all of us are footing the bill for that every single year. ultimately it will be passed on through goods and services, clothing, everything that goes up in terms of price. you will see an increase as to what you're spending of the register. john: let's look at some of your other cases. this woman says she cannot even said at a desk because she has

.o much like pain, pain shoots the company said, we have standup workstations and she said, i can stand either. this video shows are walking around and getting into an argument with her were friend. >> you can see that she takes the leg braces off and attempts to utilize it as a weapon to hit this guy. [laughter] john: and these people are all still collecting money? these cases are pending. >> us why we but the face. john: another case. a man said he was injured, had a crush figure and could not crippen to write or even do sedentary work. you caught him working at another job. >> was indicating that he could not crippen to do his day-to-day work of the office. as you can see, he's picking up broom handles, cleansing, really not showing any form of disability or certainly something that would disable him for showing up to work every day john: does your investigator then jump out of the book and

say we caught you? >> our job is to stay concealed. the last thing we want to do is have someone shoot at us. these folks are banking on these claims. john: here is another case. a person said he felt a pop in his neck travel down to is arm and shoulder. you found them. he can't work. he is in a jam. >> investigator followed him. this guy shows up in jeans and a tank top and begins to work out. the investigator, as you can see, the right hand side of the screen, pedaling his heart out to try to attempt to look like he is working now while he is videotaping this guy and very close quarters. john: one final example. a woman said after a car accident she had vertigo, was busy. she really was suffering. you fall letter to an amusement park where she got on the ride called the slingshot. >> correct. this is a chair where people will strap been on a seat belt and get lost about 200 feet into the air.

i don't know that i wouldn't be quite busy if i had come off of that. john: simply catching them on video often is not enough to win the case? >> no. attorneys have what is called a good daybed a theory. these folks will say, hey, johnny was injured, but you guys got him, you know, and a day that he elt great. the other two days after that he was laid up in a rocking chair and could not move. john: you have to shoot them several times. >> multiple times untypically we try to go a week apart just to show a span over a month or this person has been capable of performing the duties. john: i would think that the new technology would help you. cameras have been easier and smaller. >> technology is our best friend. we're able to put cameras and things they you could not possibly imagine. i've got one in honor of john. we have -- there is a wireless transmitter hidden inside. it is amazing what you can put these things and.

we also brought what appears to be a regular b&w key, but inside there is a small pinhole camera. john: think about that next time you want to cheat workers' compensation. thank you. up next, this extension cord has a warning. wash hands after handling. why is that necessary? you get to award a thousand dollars to this year's stupidest warning label next. ♪

♪ [applause] john: lawsuits and fear of lawsuits creates an unintended side effects. we have cover some of the nasty ones, but let's lighten things up. companies try to protect

themselves from lawsuits by smearing warning labels on their products. they better because lawyers often cite a lack of low warning could have prevented this century. the result is the company's but dubious things on leaders -- labels. the wacky warning label contest. use of medco one floated the dumbest and you when a thousand dollars. second place its $500. after reviewing hundreds of entries he narrowed the submissions to his five favorites. he agrees to let you take the stupidest. you don't get the thousand dollars. what are your five finalists? >> anti fog glass cleaner. net for contact lenses or direct use in i. this is a rubber or arms. it says warning, not for human

consumption. john: people use them to fish with. >> right. john: it is plastic. you would not consummate. >> but if it is out there they could be sued. next, we have a speedometer. this is great. the maker put this in their boxes to encourage kids to get an exercise. the warning label amongst many says not responsible for illness or injury incurred while using this. so somebody is out walking in step and a whole, you can sue them. john: this is made by kellogg. we contacted them. why did they have the test to do this? that did not tell us back. >> everyone uses these around the house. white or brown extension cord. warning. wash hands after handling. well, who washes their hands after putting in an extension cord? john: the call the company and cannot find anyone who spoke

english. we don't know. [laughter] finally. >> a box of matches. the warning label says, mocks -- combustion results and carbon monoxide known to cause reproductive harm. john: the problem is if you don't read the labels in this once you ought to. >> we have warning labels overload. john: thank you. when we return you get to vote and picked the thousand dollar winner. this year's whacky is warning. ♪ the pursuit of a better tomorrow is something we all share. but who can help you find your own path? who can build you a plan, not just a pie chart?

who can help keep your investments on course, whatever lies ahead? that someone is a morgan stany financial advisor. and we're ready to work for you.

♪ [applause] john: your turn. two ways that you get to ask questions. some of my guests. first, who wins that thousand dollars for submitting the stupidest warning label? his top five. again, we will let the studio audience pick the winner. so which is the stupidest? as you to raise your hand as we go through this. first, the glass cleaner that says, not for contact lenses or directing your i? all right.

a bunch of you voted for that. that surprises me actually. >> artificial heart disease debate for fishing, warning, not for human consumption. john: you're on that one. the extension cord. wash hands after haadling. all right. in the running for the thousand dollars. >> a pedometer says the company is now responsible for illness or injury incurred while using the step counter. john: one, two, three, four, five, six. okay. lastly, the matches, combustion results and carbon monoxide known to cause cancer, birth defects to my reproductive harm. [laughter] six. we have five year. so, i think the winner clearly is the extension cord.

[applause] of thousand dollars. and the $500 winner, my off- green vote counters say it is the glass cleaner. that came from melanie champagne in referee, north carolina. third place. the pedometer. that came from justin smith, albuquerque, new mexico. thank you. if you want to submit something for next year's warning label contest, just search bob's organization. that will be there. now, your questions for my guests. bob word john. first from my facebook page. why are there no penalties for filing ridiculous and frivolous suits? daniel spencer says the answer would be the penalty is the

loser pays. why such opposition to loser pays? what is the downside? >> there are penalties for filing frivolous lawsuits. john: there never imposed. >> yes, they are. john: almost never. >> every other country in the world as a loser pay system. all the countries we are competing for up with jobs, europe and asia all have that. they have the ability it sued. john: you should know that they look to us. >> no, they look at us and laugh. john: yes, ma'am. >> you mentioned -- john: before you ask your question now want to point out that you are here in your eyes will student. you are here because he won the second prize in the essay contest for "stossel" in the classroom, that is cool contest where you write about freedom. [applause] sheet one at thousand dollars. >> go ahead.

>> you mentioned many of your accomplishments. which of the laws instituted are you the most proud of? >> the ban on smoking in the back that we have reduced by almost half in the united states something even the surgeon general's report could not do that. john: you did tha >> yes,. [applause] john: wow. you are next. you are the first place winner. [applause] you are in high-school where? >> st. petersburg, florida. >> go ahead. >> my question is, is the trouble really with lawyers or is the trouble with unnecessary law? >> it is the latter. take my word for it. too many laws that are being made mostly because somebody is dissatisfied with something and thinks that somehow government politicians are magicians who will fix things.

it. john: i wrote a book about that. no, they can't. i highly recommend it. >> the bottom line is you get screwed by a large corporation, you better have a lawyer because there is no way you can beat city hall. in more need for a lawyer. john: if you history by a government you do because we have one government, but corporations tend to go out. >> earlier you were saying that banning smoking in homes, how can you do that if homes are kind of like an independent area? [laughter] john: ban them in homes? >> three-fourths of states, court orders for having smoking in homes where a child custody is at issue. twelve states they banned smoking in homes where there are foster children increasingly also in cars. there is no right to smoke in the home. the new york times has reported that every year thousands of children are killed by their

parents' smoking. we are succeeding. that is the ultimate test. john: you are succeeding in banning things. >> if they are bad we ban them. if there good we encourage and. john: can we ban lawyers? >> out talk-show hosts. coming up, i will tell you what really protect consumers. much better. ♪ i want to make things more secure. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to ta your business? i need help selling art. [ male announcer ] from broadbdband to web hostig mobile apps, small business solutions from at&t have thsecurity you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better.

♪

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♪ win! what's in your wallet? ♪ john: the conceit of politicians and lawyers that they think they can manage life through rules, so they keep adding to this pile they don't see that these rules gradually wreck life, tie as in knots, stop innovation. critics of lawsuit abuse focus on the cost of litigation, but the bigger harm is that the fear of lawsuits by itself deprives us of good things that would make our lives better, even save lives. they never get introduced. drug companies invented a vaccine against lyme disease, but they won't sell it because they're scared of lawyers. fearful medical device makers often stick to all technologies because trying something new, even if it is better risks a

lawsuit. monsanto developed a substitute for asbestos, a fire resistant installation that would save thousands, but they decided not to sell it. the same reason. a possible lawsuit. imagine a wonderful life saving products we might have today if innovators did not live in a climate of fear. the trouble with lawyers may be an unfair title for this show. they're just hired guns who try to help people manage rules. the problem is mostly the rules and the number of them. people challenge me. the alternative, just let companies cheat people? no. when i started my career as a consumer reporter, i believe that only rules protect us, but it is not true. they give us a false sense of security. the free market does a better job protecting consumers. the market works your competition and reputation. when you move to a new place you choose new doctors are

restaurants by checking their government license. no, you check consumer reports or ask neighbors and colleagues for opinions. u.s. because you know even with all these laws they are still cheating, and they're is a wide range in quality. and companies know that the best way to insure they will make money tomorrow is keeping a good reputation. they work on that. competition and reputation protect us more than any lawsuit. and that is why i am glad that this young man in the audience is wearing one of those t-shirts that play off of the coca-cola slogan, in toward capitalism. that's right. we should. because if we keep letting the lawyers make the calls, they won't stop until they take all of our time and all of our money and all of our freedom. so let's repeal most of these laws. let the market worked its magic. that is our show.

thank you for watching. see you next week. [applause] ♪ if you cannot catch us live. have a great night. lou: good evening, everybody, thank you for being with us. a record-breaking day on wall street and the rally was underway from the opening bell. dow jones industrial average u up 170 points on the day closing at a new record of 15,461. the 24th recorclose of this year. ve of the past six trading days now up 18% year to date. the s&p setting hiown record at the close of more than 22 points closing at 1675. the broader index 18th record close of the year. up more than 17% year to