You can't give counterfeits away, you'll be sued. You can't give unlicensed or embargoed products away, you'll be fined. Give away damaged or defective goods and you'll see even worse PR than this story.

You can only give away the stuff you "could" sell but can't find a buyer for, which (1) pretty much means no one wants it and (2) will poison your relationship with the people who sell you the stuff you *can* resell!

No producer can predict with absolute accuracy the number of items they are going to sell. If you produce too many items that you don't end up selling, you overspend on production costs. If you produce too few, you cut your revenue. Optimizing the balance between these two extremes is part of running a successful business.

Charging more for waste disposal results in illegal dumping.

>Give them away for free. we should incentivize under-production, not over-production

...and that's how you end up with shortages.