The vast majority of people buying sex toys don't know what they're made of, if/what chemicals the material leeches, or what these chemicals could potentially do to the body in the long term. Same goes for lube and other creams, gels, lotions, and oils that might come in contact with mucous membranes. Yes, you can go online and research the ingredients, but you have to be vary careful about what sites you're getting information from. And it takes a long time to go through even a dozen ingredients for potential issues. I've seen some lubes have twenty or more ingredients! Most people are not going to take the time to do the proper research. Some people think that just because a toy is labelled as phthalate-free it's completely safe. Big deal. No one in their right mind would sell a phthalate-laden toy these days. Phthalates aren't the only chemical leeching out of certain materials.
Manufacturing companies are biased. They want to make their product as cheaply as possible and market it in such a way as it is most appealing to the public. They're not going to label a package with "This material could potentially leech X chemical, which may cause these side effects" unless there is a government body requiring them to. Just like those prescription medication commercials are regulated by federal laws to disclose all potential side effects if they state what the medication is supposed to do/treat/cure.
And there are certain companies who will be...not entirely truthful in their packaging. They'll label an item as "Silicone" when it's either TPR silicone (but because it contains a certain percentage of silicone, they are legally allowed to label it as silicone) or it's just a silicone skin over some kind of core (but because the other material does not come in contact with the body, they don't have to mention it on the package.) And I've even read some reviews where the company will swear up and down that a material or glue that smells like industrial death is non-toxic and body-safe. That's why I refuse to buy toys from one company in particular, because even though they have some neat-looking ideas, the material quality (and in some cases, motor quality) is sub-par at best.
So yes, I would very much like to see a government body--or really, any body that is completely separate from the toy companies--provide strict regulations on how materials are produced, handled, and labelled for sex products. I would be much more confident when purchasing or selling toys...especially to those people who are just looking at price tags. I could flip over the box and say "These are all the potential side effects of this material. Are you sure it's worth saving some money?" As it is, I get the feeling a lot of those people think I'm just pulling this out of my ass in order to upsell them.