It's clearly a product of liberal democracy, and it's liberal in the sense of allowing such business ventures to exist and to indeed to be voted for by the public (manipulated by advertising and ark money, of course, but nevertheless).
The problem of liberalism is its failure to adequately guard against such institutional abuses, just as the problem of communism is its failure to guard against being hijacked by authoritarians. In the 25 years since the fall of the Soviet Union and the general consensus that communism was an ideological failure, western democracies own ideological limitations have been examined and found wanting in many respects. Chief among these are an incarceration rate that far exceeds that of the most stereotypically autocratic nations, and the deplorable conditions therein.
https://en.wikipedia.org/wiki/List_of_countries_by_incarcera...
Liberalism all too easily degenerates into mere license, and has demonstrably failed to result in liberation for those who suffer unjustly under the yoke of authority. To some extent the blame falls on a myopic utilitarianism that equates its quantitative capability with omniscience, and by assuming its own goodness as axiomatic has lost the ability to evaluate its own moral anchorings, instead drifting about aimlessly on the currents of its own desire.