NCJ Number
46423
Date Published
1977
Length
249 pages
Annotation
THIS DOCUMENT PRESENTS HEARINGS BEFORE THE SENATE COMMITTEE ON GOVERNMENTAL AFFAIRS CONCERNING S. 1262, A BILL TO ESTABLISH AN INDEPENDENT CONSUMER AGENCY TO SERVE AND PROTECT THE INTEREST OF CONSUMERS.
Abstract
THE PROPOSED AGENCY WOULD REPRESENT CONSUMERS BEFORE FEDERAL AGENCIES AND COURTS, RECEIVE AND TRANSMIT CONSUMER COMPLAINTS TO RELEVANT FEDERAL GOVERNMENT AGENCIES, DEVELOP AND DISSEMINATE INFORMATION TO CONSUMERS, CONDUCT AND SUPPORT RESEARCH, STUDIES, AND TESTING, AND SUCH OTHER FUNCTIONS NECESSARY TO PROTECT CONSUMERS. THE FUNDING LEVEL FOR THE FIRST FISCAL YEAR OF OPERATION WOULD BE $15 MILLION DOLLARS, WITH AN INCREASE OF $5 MILLION DOLLARS MORE FOR EACH OF 2 SUBSEQUENT YEARS. THE BILL HAS A BUILT-IN SUNSET FEATURE, IN THAT THE PROPOSED AGENCY MUST BE REAUTHORIZED AFTER 3 YEARS. TESTIFYING FOR THE WHITE HOUSE SUPPORT OF S. 1262 WAS ESTHER PETERSON, SPECIAL ASSISTANT TO THE PRESIDENT, WHO FAVORED THE COST-BENEFIT SECTION OF THE BILL, A PROVISION TO INSURE THAT THE MASS OF FEDERAL REGULATIONS MUST BE ANALYZED TO ENSURE THAT THEY IMPOSE MINIMAL COST TO INDUSTRY AND THE PUBLIC. TESTIFYING IN FAVOR OF THE PROPOSED BILL WERE SPOKESPERSONS OF A NUMBER OF STATE ATTORNEYS GENERAL OFFICES, CONSUMER ORGANIZATIONS, BUSINESS CONCERNS, AND TRADE ORGANIZATIONS, INCLUDING THE NATIONAL CONSUMERS LEAGUE, THE CONSUMER FEDERATION OF AMERICA, LEVI STRAUSS AND COMPANY, PROFESSIONAL INSURANCE AGENTS, AND THE AMERICAN BAR ASSOCIATION. CONSUMER ADVOCATE RALPH NADER ILLUSTRATED THE NEED FOR A CONSUMER PROTECTION AGENCY BY CITING EXAMPLES OF PRIOR GOVERNMENTAL INACTION. HE ARGUED THAT EXISTING GOVERNMENT AGENCIES ARE TOO CLOSELY ASSOCIATED WITH THEIR CORPORATE CLIENTELE TO PROTECT THE HEALTH, SAFETY, AND ECONOMIC INTEREST OF CONSUMERS. ORGANIZATIONS WHICH TESTIFIED IN OPPOSITION TO THE BILL INCLUDED THE NATIONAL ASSOCIATION OF MANUFACTURERS, THE NATIONAL FEDERATION OF INDEPENDENT BUSINESSES, THE AMERICAN BAKERS ASSOCIATION, AND THE STOCKHOLDERS OF AMERICA, INC. ARGUMENTS AGAINST THE BILL WERE THAT IT WOULD ADD ONE MORE LAYER OF BUREAUCRACY TO GOVERNMENT WOULD BE A NEEDLESS EXPANSION OF GOVERNMENT, BE AN UNWANTED INTERVENTION INTO ALL ASPECTS OF THE RELATIONSHIP OF THE GOVERNMENT TO THE PEOPLE, WOULD ENCOURAGE AN ADVERSARY RELATIONSHIP BETWEEN BUSINESSPEOPLE AND CONSUMERS, AND IN SHORT WOULD BE NEEDLESS, DISRUPTIVE, UNWORKABLE, AND COSTLY. APPENDED TO THE DOCUMENT ARE THE COMPLETE TEXT OF THE BILL, AND THE STATEMENTS AND LETTERS THAT WERE ALLOWED TO BECOME PART OF THE OFFICIAL RECORD. (DJM)