Consumer Federation of California

The Consumer Federation of California (CFC) was founded in 1960 as a non-profit consumer advocacy organization. CFC campaigns for state and federal laws and appears at the California State Legislature in support of consumer focused regulations. Recent CFC legislative issues include protecting consumer financial privacy; reforming accounting industry practices; enabling patients to sue HMOs for denial of care; holding homebuilders accountable for construction defects; prohibiting manufacturers from keeping secret vital safety information about defective products; enacting cell phone users' rights, and strengthening food safety laws. The CFC intervenes in California Public Utilities Commission proceedings representing residential consumer interests. The CFC is currently led by Executive Director Richard Holober.

CFC serves the public in several ways:

• Advocating for laws that ensure consumer protection
• Advising elected officials on laws concerning consumers
• Directing consumer complaints to the appropriate government agency or non-profit

Legislative Scorecard

The Consumer Federation of California issues an annual Scorecard that grades State Senators and Assemblymembers on the percentage of "pro-consumer" votes each lawmaker cast on bills that were considered in the legislature in that year's session. The 2009 Scorecard found that in the California Assembly, Democrats achieved an average 89% pro-consumer score, while Republicans averaged 18% pro-consumer grades. In the State Senate, Democrats averaged 87% pro-consumer grades, with Republicans averaging 21%.

Proposition 10

In 2008, the Consumer Federation of California sponsored the No on Proposition 10 campaign. California Proposition 10 (2008) was a proposed five billion dollar state bond, with most proceeds to be used to subsidize purchases by trucking companies and others of natural gas-powered vehicles. Proposition 10 was written and primarily funded by Clean Energy Fuels Corporation, a major operator of natural gas fueling stations. [1] T. Boone Pickens is the majority shareholder in Clean Energy Fuels Corp.[2] The Consumer Federation of California organized a No on Proposition 10 coalition that included major environmental, labor, business, taxpayer, and consumer groups. Proposition 10 proponents spent $23 million in support of the measure. [3] The Consumer Federation of California raised $175,000 for the opposition campaign. [4] Proposition 10 was defeated on November 4, 2008 with 59.41% of the votes cast against the proposition and 40.59% cast in support. [5]

2009 Legislation

In 2009, The Consumer Federation of California sponsored AB 1512 (Lieu)[6] which would have prohibited grocers and other retailers from selling expired infant formula, baby food and over the counter medications. The bill was prompted by undercover operations by Attorneys General in California and New York that found these expired products for sale at numerous stores operated by major national pharmacy chains. Governor Schwarzenegger vetoed AB 1512.

2010 Legislation

CFC co-sponsored the California Supply Chain Transparency Act (SB 657 - Steinberg). [7] This is the first state law enacted to provide consumers information about businesses’ efforts to eradicate human trafficking and slave labor from their supply chains. [8] The Consumer Federation of California sponsored legislation to strengthen truth in advertising rules for proprietary for-profit colleges (AB 2393 – Ammiano). [9] These schools have faced accusations of luring students to enroll in expensive job training programs courses with misleading information about student success rates and job placement rates. [10] Governor Schwarzenegger vetoed the bill.

2010 Ballot Measures

Consumer Federation of California signed the No on Proposition 16 ballot argument for the June 2010 election. [11] Proposition 16 was placed on the ballot by PG&E in an effort to make it more difficult for local government agencies to bypass PG&E, by requiring new 2/3’s super majority votes before local agencies could enter into bulk purchasing agreements with electricity generators to reduce the electric bills of local residents or to increase the usage of energy generated from renewable sources. PG&E spend $45 million to win its passage. A grassroots coalition of consumer, labor, environmental and government organizations opposed the measure. Proposition 16 was defeated. [12]

History

Legislation that CFC has supported include:

• SB 772, which would ban toxic brominated chemicals from children's furnishings.
• SB 1162, which aims to raise California minimum wage to $7.25.
• SB 1354, which requires corporations to keep detailed records.
• AB 1010, which requires cell phone companies give a 30 day grace period on all contracts.

The CFC publishes educational materials for the public on consumer issues and sponsors the CFC Education Foundation, a 501(C)(3) non-profit that works to serve the public interest.

Criticism

Because of its hard line consumer advocacy stance, CFC has been criticized as being anti-business and as having a liberal bias. By contrast, CFC and its supporters see the group as seeking to balance consumer rights and the economy in a way that is mutually beneficial to the public and private sector.

Press

Los Angeles Times:
http://articles.latimes.com/2010/nov/04/local/la-me-downballot-20101104

Sacramento Bee:
http://www.sacbee.com/static/weblogs/momme/2009/10/new-law-seeks-to-ban-sale-of-expired-baby-food-medicine.html

San Francisco Chronicle:
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2006/03/23/MNGSDHSPK91.DTL

http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2004/09/26/MNGGP8VC851.DTL

San Jose Mercury News:
http://www.mercurynews.com/san-mateo-county/ci_16527854

Contra Costa Times:
http://www.contracostatimes.com/california/ci_13810483

Wired:
http://www.wired.com/news/privacy/0,1848,58064,00.html

Berkeley Daily Planet:
http://www.berkeleydailyplanet.com/article.cfm?archiveDate=07-23-01&storyID=6002

Forbes:
http://www.forbes.com/2004/08/11/cz_ae_0811beltway.html

Grade the News:
http://www.gradethenews.org/pages2/lazarus.htm

California Progress Report:

http://www.californiaprogressreport.com/site/?q=node/8329

http://www.californiaprogressreport.com/2009/10/schwarzenegger_111.html

http://www.californiaprogressreport.com/2006/07/the_new_consume.html

Reuters:
http://www.reuters.com/article/pressRelease/idUS183512+04-May-2009+PRN20090504

External links

• http://www.consumercal.org