"The flaw in the statute is that in all its applications, it operates on a fundamentally mistaken premise that high solicitation costs are an accurate measure of fraud"

This quote by Harry A. Blackmun is referring to a statute, or a law, that is flawed. The flaw is that the statute is based on the presumption that high solicitation costs are an accurate step of fraud. This indicates that the statute is using the cost of getting, or asking for, something as a method to measure the amount of fraud that is happening. Blackmun is suggesting that this is a flawed property, as the cost of solicitation does not necessarily indicate the amount of scams that is taking place. He is indicating that the statute must be revised to consider other elements that are more accurate signs of fraud.