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U.S. PIRG Release: Advocates from 36 States Head to Congress to Counter Unprecedented Attack on Consumer Protections
Congress Considering Bills to Gut the CFPB & Roll Back Essential Consumer Safeguards
May 09, 2017
Over 100 consumer advocates from 36 states across the country are coming to Washington, D.C. this week to urge lawmakers in Congress to oppose legislation that would harm consumers in their communities. In particular, the advocates are calling on Congress to reject legislation that would weaken the Consumer Financial Protection Bureau and undermine its proposed rules to limit high-cost payday loans and forced arbitration. The advocates are also urging opposition to the Regulatory Accountability Act which will cause agency paralysis by analysis and make it extremely difficult to enact important new health, safety, and pocketbook protections.
The effort is being coordinated by the Consumer Federation of America and is co-sponsored by Consumers Union, U.S. PIRG, National Consumer Law Center, Public Citizen, National Consumers League, National Association Consumer Advocates, and Americans for Financial Reform. "We're facing an unprecedented attack in Congress on sensible consumer protections that help protect our wallets and keep us safe," said Stephen Brobeck, Consumer Federation of America's Executive Director. "Lawmakers should stand with consumers and reject proposals that threaten to weaken the CFPB and block essential safeguards for working families."
Last week, the House Financial Services Committee approved the Financial CHOICE Act, which would essentially gut the CFPB by eliminating much of its authority and enforcement powers. Under the bill, the CFPB would lose its ability to stop unfair, deceptive, and abusive practices, and would no longer have the power to fine companies for breaking the law or order them to provide refunds to consumers cheated out of their money. The bill blocks the CFPB's authority to conduct financial education campaigns and would do away with the CFPB's public complaint database. If the bill is approved, the CFPB's director could be fired at will by the President, unlike other banking regulators, and the agency's budget would be subject to the congressional appropriations process, opening it up to further attack by financial industry opponents determined to shrink its budget.
In January of this year, the House passed numerous bills that would make it more difficult for necessary consumer protections to be finalized. One of these bills, the Regulatory Accountability Act, passed the House in January and was recently introduced in the Senate. Consumers expect that their food and products will be safe and that the financial marketplace will be fair but these bills would make it almost impossible for these rules to ever be finalized. The Regulatory Accountability Act would grind proposed consumer protections to a halt by requiring extensive time-consuming analysis that prioritizes costs over benefits, providing more opportunities for litigation, and undermining the expertise and independence of federal agencies.
Consumer Federation of America's partners and co-sponsors of Consumer Lobby Day discuss why it is so important that Congress hears and heeds the concerns and needs of consumers.
Consumers Union, the Policy and Mobilization Division of Consumer Reports
"The CHOICE Act is the wrong choice for consumers because it strips the CFPB of most of its power to take on banks and other financial firms that engage in unfair and predatory practices," said Pamela Banks, senior counsel for Consumers Union, the policy and mobilization division of Consumer Reports. "This bill neuters this critical consumer watchdog and would leave Americans more vulnerable to getting hit with hidden fees, costly scams, and financial fraud."
Among those coming to D.C. to urge Congress to defend the CFPB are consumers who have been harmed by unfair mortgage foreclosure, payday loan and student loan practices. Consumers Union can connect reporters with these consumers and others who have filed complaints with the CFPB about the problems they've encountered and gotten assistance resolving those issues.
Americans for Financial Reform
"Across the country, communities have mobilized to stand up to Wall Street and predatory lenders," said Jose Alcoff, Campaign Organizer at Americans for Financial Reform. "People have come to Washington today to let their congress members know that if they choose to sell out to Wall Street, people will be paying attention back home."
National Association of Consumer Advocates
"Memories of the dramatic losses of U.S. jobs, homes, and economic security caused by the 2008 financial crisis seem to have faded in Congress," said Christine Hines, legislative director of the National Association of Consumer Advocates. "Thankfully, consumers and advocates across the country are committed to reminding lawmakers that we need an independent Consumer Financial Protection Bureau to fight for a fair and open marketplace that protects our rights and interests."
National Consumer Law Center
"The CPFB is incredibly effective at protecting military servicemembers, seniors, working families, students and other consumers," said National Consumer Law Center Associate Director Lauren Saunders. "Congress should not carry water for Wall Street and predatory lenders by pushing to gut the consumer watchdog."
National Consumers League
"NCL fully supports sensible rules and regulations for companies doing business in the US and reaping profits from American consumers. Without rules of the road, consumers will be further victimized by false and deceptive tactics, rip offs, unsafe financial and consumer products," said Sally Greenberg, Executive Director of the National Consumers League. "The CFPB and our carefully crafted regulatory system makes the US a good place to do business and offer critical consumer protections. History has shown that we must preserve these institutions and uphold these rules to avoid economic disaster."
"It's outrageous that some members of Congress are attempting to strip critical consumer financial regulations," said Lisa Gilbert, Public Citizen's vice president of legislative affairs. "That's why Public Citizen is proud to join with partner groups and activists from around the country to strengthen the unified front defending these essential government safeguards that stabilize markets and provide needed relief to Americans who are ripped-off by unscrupulous financial actors."
U.S. PIRG
"Consumer leaders from around the country are bringing members of Congress a strong message," said Janet Domenitz, MASSPIRG Director (and CFA president). "Don't weaken the CFPB and don't roll back our financial and public health protections."
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Huge Victory for American Consumers: Senate Rejects DARK Act
Senate bill would have made GMO labeling voluntary despite widespread opposition
Mar 16, 2016
Update:
The U.S. Senate on Wednesday rejected a controversial bill that would have made labeling genetically modified organisms (GMOs) in food products voluntary. The bill needed 60 votes to pass and only received 44. Opponents of the bill have referred to it as the Deny Americans the Right to Know (DARK) Act and warned that it would favor corporations over consumers, who widely support labeling GMOs.
"Today, the Senate did the right thing," said Wenonah Hauter, executive director of Food & Water Watch. "People want to know if the food they buy contains GMO ingredients. It's time for Congress to create a mandatory on-package labeling requirement so people can decide for themselves whether they want to eat a food that has been produced using genetic engineering."
Andrew Kimbrell, executive director of the Center for Food Safety, said the vote was a "major victory for the food movement and America's right to know."
"It also is an important victory for Democracy over the attempt of corporate interests to keep Americans in the dark about the foods they buy and feed their families," Kimbrell said.
Had the legislation passed, it would have preempted states from enacting their own GMO labeling requirements. Vermont is poised to put just such a law into effect in July.
Bernie Sanders, the senator from Vermont, said he was "pleased that Congress stood up to the demands of Monsanto and other multi-national food industry corporations and rejected this outrageous bill. Today's vote was a victory for the American people over corporate interests."
""All over this country, people are becoming more conscious about the food they eat and the food they serve their kids. When parents go to the store and purchase food for their children, they have a right to know what they are feeding them. GMO labeling exists in 64 other countries. There is no reason it can't exist here," Sanders said.
Earlier:
Consumer advocates on Wednesday called on the U.S. Senate to reject a bill that would allow food manufacturers to avoid labeling genetically modified organisms (GMOs) in their products.
Similar legislation passed the House of Representatives last summer. Opponents of the bill, who refer to it as the Deny Americans the Right to Know (DARK) Act, warn that it would do nothing to support consumers and favors corporations over people.
The latest version, introduced by Sen. Pat Roberts (R-Kan.) and backed by biotechnology companies like Monsanto, DuPont, and Dow, would make GMO labeling voluntary and block pending state laws that require such standards from being implemented. The Senate is voting on the bill on Wednesday.
| #DARKAct Tweets |
The Consumers Union on Tuesday sent an open letter to senators urging them to vote down the bill, noting that it goes against numerous polls showing that 90 percent of Americans support mandatory GMO labeling.
"Consumers have overwhelmingly said that they want [GMO] food to be labeled as such, and states have begun to respond to their requests," the letter states. "The Senate should not disregard these views by eliminating state laws relating to [GMO] food labeling and failing to replace them with a meaningful national standard for mandatory, on-package labeling."
Opponents of the DARK Act also include celebrity chef Tom Colicchio, who serves as co-founder and board member of Food Policy Action, who writes in an op-ed for The Hill on Wednesday:
Consumers want to know everything about their food--including who made it, what's in it and how it was produced. This is a trend that should be encouraged by policymakers as food and farming have enormous impacts on our health and on the health of our environment.
[....] It's ridiculous to expect the American people to wait on hold to find out what's in their food. But, that exactly what the new version of the DARK act contemplates--even though nine out of ten consumers consistently tell us they want the right to know.
The DARK Act is "a step backward" for growing consumer interest in food issues and support for organic, ethical farming, Colicchio wrote.
As Food & Water Watch executive director Wenonah Hauter wrote in a blog post for EcoWatch on Tuesday:
The majority of Americans, more than 90 percent in many polls, favor GMO labeling. The long-term effects of GMOs are not known, so it only makes sense that consumers should have the option to avoid them if they so choose. Instead, the DARK Act would strip away the power of the states to protect the public's right to know what is in their food.
The bill "sets up a complicated and unrealistic process for allowing companies to use voluntary labeling, QR codes, (800) numbers, or social media to avoid putting simple information about GMO ingredients on food packages," Hauter wrote.
"It's ridiculous to expect the American people to wait on hold to find out what's in their food."
--Chef Tom Colicchio
Jean Halloran, Consumers Union director of food policy initiatives, also noted that "there's little likelihood that this bill will result in GMO labeling in the way consumers think of it and the way numerous surveys show that they want it: on the package."
"Consumers just want to know what's in their food," Halloran said. "Manufacturers and Congress shouldn't make them jump through hoops to get that information."
If passed, it would come at a particularly bad time for states like Vermont, whose own mandatory GMO labeling law is poised to take effect in July.
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Overwhelming Majority of Americans Say: 'Just Label It!'
New Consumers Report poll finds that 92 percent of respondents want the government to require labeling of genetically engineered foods.
Jun 09, 2014
An overwhelming majority of Americans think that genetically engineered (GE) foods should be labeled before they are sold, according to a new Consumer Reports poll released on Monday.
The nationally-representative phone survey found that 92 percent of respondents think that GE foods, or those made with genetically modified organisms (GMOs), should be labeled accordingly. Further, 92 percent also think that the government should legally require the labeling of GE salmon--which may soon be approved and sold in stores--despite the fact that the Food and Drug Administration (FDA) currently requires neither labeling nor pre-market safety assessments of GE food.
The survey, taken in April 2014, assessed the importance of various factors that consumers weigh when purchasing food. According to the results, 72 percent said it was important or very important to avoid genetically engineered ingredients when making purchases.
"This poll underscores that, across the country, consumers want labeling of GE food, including GE salmon, and consider safety standards set by the government of such food imperative," said Jean Halloran, Director of Food Policy Initiatives at Consumers Union.
Growing public opposition to GE foods comes as numerous states have begun to surpass the FDA by passing their own labeling legislation.
Last month, Vermont became the first state to require the labeling of foods with genetically modified ingredients. Similar legislation, which included "trigger clauses" that require a certain number of other states to also enact similar laws, passed in both Connecticut and Maine. Lawmakers in Massachusetts, Oregon, Colorado, and New York are also weighing labeling proposals.
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