Public Citizen Annual Report 2007

www.citizen.org President Joan Claybrook

Board Members Public Citizen Inc. Adolph L. Reed Jr., Chair Joan Claybrook Public Citizen is a national, nonprofit advocacy organization David Halperin that represents people in the halls of power. For more than 35 years, Howard Metzenbaum we have successfully fought for openness and democratic accounta- Joseph A. Page, bility in government; public funding of elections; a more ethical Secretary-Treasurer Congress; clean, safe and sustainable energy; safer trucks and auto- mobiles; stronger worker safety protections; safe, effective and Public Citizen affordable prescription drugs; and fair trade. Foundation Inc. Robert C. Fellmeth, Public Citizen does not take corporate or government money, so Chair we can name names and hold those in power accountable. For that Lisa A. Blue reason, we rely on financial support from our members and founda- Joan Claybrook tions. We also rely on the sale of publications, including our block- Joseph W. Cotchett buster “Worst Pills, Best Pills” book and newsletter, as well as the Liz Figueroa continuously updated Web site WorstPills.org. Jim Hightower, Secretary-Treasurer If you would like to contribute to Public Citizen or become a Steve Skrovan member, please call (202) 588-1000 or visit our Web site at www.cit- izen.org/join.

Directors David J. Arkush, Congress Watch; Marilyn Berger, Administration; Brent Berwager, Development; Angela Bradbery, Communications; Tyson Slocum, Energy; Tom Smith, Texas; Lori Wallach, Global Trade Watch; Sidney M. Wolfe, M.D., Health Research; Brian Wolfman, Litigation

Editor Bridgette Blair

Production Manager James Decker From the president

n the 2006 congressional elec- Itions, the American public – fed up with Washington’s status quo of scandals, ethics abuses and bad policies – showed tection of consumers in medical guarantee for energy companies Republicans the door. Voters malpractice cases and repealing cut in half, and that money must brought in a new guard – the estate tax at a cost of $1 bil- still be appropriated. Democrats, led by House Speak- lion to taxpayers. Another example of a con- er Nancy Pelosi and Senate In 2007, Public Citizen also gressional misstep is the House Majority Leader Harry Reid. saw success outside Congress. A of Representatives’ Energy and Since Democrats took over new rule issued in September by Commerce Committee’s Dec. congressional leadership in the National Highway Traffic 18 approval of an inadequate bill January 2007, they have shown Safety Administration requires reauthorizing the Consumer great promise, ushering through vehicles to protect passengers’ Product Safety Commission pro-consumer legislation, includ- heads in side-impact crashes – (CPSC). Not only does it not ing increased fuel economy stan- something Public Citizen has require safety data on dangerous dards and lobbying and ethics long pushed for. By 2013, all products to be made public, but reforms. Public Citizen helped vehicles will have this protection it does not enable the CPSC to craft and push through these and – most likely side head air bags – block unsafe imported products other important measures, and helping to reduce the 9,000 at the border – before they reach worked to limit federal subsidies deaths caused annually by side- store shelves. Further, its increase for oil, gas, coal and nuclear impact crashes. And in April, in civil penalties is minimal and industries. Public Citizen urged the Food funding is insufficient. With all After much pressure from and Drug Administration (FDA) the headlines about unsafe toys Public Citizen and its ally to reject a new painkiller, and other products, the failure of groups, Congress also voted in Arcoxia, because it is associated the House bill to protect late 2007 to eliminate funding with an increased risk of heart Americans in this case is uncon- for the administration’s danger- problems. An FDA advisory scionable. ous “pilot project” that would committee voted against Public Citizen will continue allow heavy trucks from selected approval, and Arcoxia has not to hold both Democrats and Contents companies in Mexico to travel made it to the market. Republicans in Congress throughout the U.S. even That’s not to say Public accountable for bad policy deci- Congress, 3 though they may not meet our Citizen hasn’t been disappointed sions. In 2008, we’ll continue environmental or safety stan- by some decisions of the new issuing reports chock full of solid dards. Congress. In 2007, Democratic research, walking the halls of Courts, 5 Earlier in the year, Congress lawmakers, who need Republican Congress, holding press confer- handed Public Citizen another support to pass bills that will ences, challenging bad decisions Trade, 7 major victory when it did not withstand a presidential veto, in court and otherwise alerting renew fast track trade authority. weakened several strong meas- the American public. We want to Fast track gives the executive ures. Take, for example, the fail- ensure that Congress puts the Health, 9 branch enormous discretion to ure of the Senate to pass a com- interests of its employers – the negotiate and write trade agree- prehensive energy bill in American people – first. Energy, 11 ments and delegates away December. The bill would have For us to continue our work, Congress’ constitutional power repealed $12.5 billion in recently we need your help. You can sign to set the terms of U.S. trade created subsidies for the oil up for our activist alerts (visit Texas, 12 policy. industry and shifted that money www.citizen.org/action) to stay In addition, Democrats have into renewable energy and ener- up-to-date on our efforts. Or Safety and put an end to the consideration gy efficiency measures. But the you can donate to Public Citizen – or even the mention – of a Senate, pressured by its friends in by visiting www.citizen.org/join Regulations, 13 number of anti-consumer bills the oil and fossil fuel industries, to help us keep the fight strong. that businesses pushed hard for caved, leaving intact these bil- Thank you for your support Financials, 14 in prior Congresses. These lions in unnecessary subsidies. in 2007. Stay tuned in 2008 – include laws lessening the pro- However, we got a huge loan it’s going to be a busy year. 2 Congress Congressional Ethics Reform This Great Law Passed in 2007. Now, Who’s Going to Enforce It?

In 2007, congressional by other members of Congress abuses in Congress, and even short, recommending an Democratic leadership, with through the ethics committee, testified before congressional Office of Congressional Ethics reform-minded congressional whose members are appointed committees about the prob- to oversee ethics violations freshmen, stormed Capitol by the majority and minority lems – but at that time it was without any investigative Hill and passed a lobbying and leaders. all to no avail,” said Joan authority, such as subpoena ethics reform law. With scandals around Claybrook, president of Public power. The office could Public Citizen had worked Capitol Hill and the nation, Citizen. research complaints; however, on lobbying reform since the congressional ethics com- In 2007, when Democrats the public could not file com- 2005, when no attention was mittees did not want to admit took control of Congress, all plaints against lawmakers or given to lobbying abuses. We a problem existed. However, this changed. staffers. Final determinations helped craft and promote the reform groups like Public On Day One, the 110th of a violation would be made final legislation in 2007 to cur- Citizen pushed harder when Congress passed rules banning by lawmakers. tail lobbyist-funded congres- former superlobbyist Jack gifts from lobbyists and This is not an improved sional trips, ban gifts from lob- Abramoff, found guilty for restricting congressional travel. ethics enforcement system; it is byists, rein in earmarks and attempting to bribe public Other sweeping lobbying and the same old system with more disclose lobbyist fundraising officials, agreed to point out ethics reforms passed both bureaucratic layers to shield for lawmakers. those he bribed. chambers and were signed into members from culpability. An But who will monitor and “Public Citizen organized law on Sept. 14. independent enforcement enforce the law? Traditionally, press conferences denouncing But the creation of an office with investigative enforcement of ethics among the inaction by the ethics com- effective ethics enforcement authority is needed to recom- members of Congress has mittees, issued reports docu- agency to ensure compliance mend final enforcement been monitored and enforced menting the egregious ethics to the new rules was excluded actions to congressional ethics from the new law. The Senate committees in public reports rejected Public Citizen’s call and allow the public filing of for an independent Office of complaints. Public Integrity to enforce the Public Citizen condemns new ethics rules – with Sen. the task force recommenda- Ted Stevens (R-Alaska), sub- tions and will appeal to ject of a Department of Justice reform-minded members of ethics investigation, declaring Congress in 2008. We are ethics enforcement is counting on Speaker Pelosi Congress’ job and should not and the congressional fresh- be turned over to an inde- men to come through once pendent agency. again and create a real enforce- House Speaker Nancy ment system for the new lob- Pelosi (D-Calif.) appointed a bying and ethics law. task force, headed by Rep. If not, Public Citizen will Michael Capuano (D-Mass.), monitor compliance on to study ethics enforcement in Capitol Hill and call the pub- Congress and recommend lic’s attention to corruption on reforms. The task force pro- our own. posed changes in ethics Ethics task forces come enforcement on Dec. 19. and go, but we’re not going But the task force fell anywhere.

Craig Holman, lobbyist for Public Citizen’s Congress Watch division, speaks in October about lobbying reform at a European Parliament hearing in Brussels, Belgium.

3 Photo Courtesy of Wilhelm Lehrmann, principal administrator, European Parliament In July, summer interns Brian McGiverin and Xenia Tashlitsky of Public Citizen’s Congress Watch division demonstrate in Washington, D.C., in support of the D.C. Voting Rights Act.

Photo by Greg Berger

Laura MacCleery, former director of Public Citizen’s Congress Watch division, on 2007:

“It’s been a banner year for Public Citizen’s Congress Watch division, as renewed energy from Capitol Hill sped up the pace of our work. In the wake of the Jack Abramoff scandal, Congress opened its new session with the passage of ground- breaking lobbying and ethics reform rules. Later, other reforms, which we helped craft, passed Congress, and the president signed them into law in early September. We are already seeing sharp reductions in travel jun- kets by congressional staff and tighter restrictions on the revolving door between lucrative lobbying jobs and Capitol Hill. And we are working on a more perma- nent and fundamental solution to the money-in-politics problem: public funding of elections. We proudly supported Sens. Dick Durbin and Arlen Specter as they unveiled a promising new bill for publicly funded congressional elections, and we are working at this writing to assist lawmakers as they plan to introduce a similar bill in the House of Representatives. We are also push- ing legislation to update and upgrade the presidential public funding system. We struck gold with a major report revealing the trap that binding mandatory arbitration sets for the unwary in consumer WhiteHouseforSale.org re-introduced in 2007 contracts, showing that consumers lose to credit card companies a stunning 94 percent Big-dollar presidential campaign fundraisers, of the time. Buried in the fine print of known as “bundlers” because they collect a large 2,381: Number of employment, cell phone, cable, credit card number of smaller donations, are stuffing the cof- and other contracts, binding arbitration bundlers for 2008 presi- fers of 2008 presidential candidates. robs consumers of their right to a day in dential candidates Some bundlers are also lobbyists and thus gen- court when companies try to treat them erally expect something in return for their largess – 142: Number of lobbyist unfairly. We are working hard to sign up co- like a swanky political appointment, a lucrative bundlers for 2008 sponsors in Congress for the Arbitration government contract or a juicy earmark. To presidential candidates Fairness Act, a bill to make boilerplate arbi- expose the large number of bundlers gathering $426,521,529: Amount tration clauses unenforceable against con- cash for presidential candidates, Public Citizen re- raised by 2008 sumers, and are anticipating a long battle in introduced its WhiteHouseforSale.org site in July presidential candidates the coming year with the Chamber of 2007. The constantly updated Web site features (including money raised Commerce and other big business groups the latest news articles on money and politics as We are ready for a tussle, and look forward well as in-depth information about the history of by bundlers) Numbers as of Feb. 4 to your help.” bundling and more. 4 Courts

In Court, Public Citizen Defends Consumers, Confronts Corporations Public Citizen has always pre-emption. Although the argued before the U.S. drug manufactured by Wyeth. defended consumers’ rights, patients in both cases sued Supreme Court on Dec. 4 that Levine was left with injuries but 2007 was an especially big under state laws, the corpora- a pre-emption provision in the that led to the amputation of year for this work, both inside tions argued that federal Food, Drug and Cosmetic Act her right arm. She was award- and outside the courts. approval of their products does not bar individuals ed damages by the Vermont In the courts, Public should bar injured consumers injured by medical devices state courts, but Wyeth has Citizen took on two huge cor- from seeking damages. from seeking damages under asked the U.S. Supreme Court porations – medical device Charles Riegel of New state law. A decision is expect- to hear the case, claiming that maker Medtronic and pharma- York state suffered a serious ed by June. In the other case, federal law pre-empts Vermont ceutical giant Wyeth – to sup- injury in 1996 when a balloon Diana Levine, a professional state law in favor of Wyeth. port patients who were badly catheter made by Medtronic musician from Vermont who The Supreme Court has injured after they used the burst during his angioplasty. In went to the hospital in 2000 accepted Wyeth v. Levine; companies’ products. Both Riegel v. Medtronic, Public for treatment of a migraine Public Citizen will argue the cases involve the concept of Citizen attorney Allison Zieve headache, was injected with a case. Public Citizen also has been hard at work outside the courtroom to preserve citizen Lawyers Go to Bat for Consumers in 2007 access to the courts. In fall From pre-emption to constitutional law to Internet free speech, the Public Citizen Litigation 2007, the organization issued Group has protected consumers and their access to the courts in 2007. The following are just a few a report, “The Arbitration key cases the organization’s lawyers handled over the past year: Trap: How Credit Card Companies Ensnare Alexander v. Cahill: Public Citizen challenged New York’s new rules governing attorney adver- Consumers,” that alerted con- tising, saying that they violated lawyers’ First and Fifth Amendment rights. Public Citizen won an sumers to the dangers of bind- injunction against the rules; the case has been appealed. ing mandatory arbitration, which removes a consumer’s Hoormann, et al. v. SmithKline, Beecham Corp.: Public Citizen objected to a proposed right to have disputes with class-action settlement against GlaxoSmithKline because the settlement set up too many hoops for companies heard in court. people to jump through to claim their money. In response, the court increased the financial dam- It requires that disputes go ages for which each class member would be eligible without having to provide proof of purchase. to arbitration instead, which is The plaintiffs had argued that Paxil was dangerous and ineffective in children under 18. expensive and generally unfair to consumers. Mandatory New York State Restaurant Association v. New York Department of Health, et al.: arbitration clauses are buried Public Citizen argued in support of New York City’s right to require restaurants to put calorie con- in the fine print of millions of tent information on menus. The court ruled that cities and states can require menu labeling in most customer-service agreements circumstances, but New York City’s law is pre-empted by federal law. The city is changing its law. for everything from credit cards to cell phones. Public American Historical Association v. National Archives and Records Administration: Citizen is pushing for passage A federal court struck down key parts of President Bush’s executive order limiting public access to of the Arbitration Fairness Act the records of past presidents. Public Citizen had sued in 2001, claiming that the order’s provisions of 2007, which would require violated the Presidential Records Act. The judge struck down the section of the executive order that that agreements to arbitrate granted past presidents, vice presidents and their representatives unlimited time to review documents employment, consumer, fran- before they are made public. chise and civil rights disputes be made after a dispute has Mobilisa v. Doe: The Arizona Court of Appeals held that parties who want to sue an anonymous arisen. Public Citizen will Internet speaker must present evidence to support their claims and show that their interest in identify- continue to fight for con- ing the speaker outweighs the speaker’s interest in remaining anonymous. The court followed the sumer rights on these and recommendation that Public Citizen provided in a brief. other issues. 5 Public Citizen Litigation Group Director Brian Wolfman (far left) and attorney Allison Zieve (left front) exit the U.S. Supreme Court, flanked by family and friends, on Dec 4. Zieve had just argued on behalf of a man injured by a balloon catheter.

Photo by Lindsay Barton

Brian Wolfman, director of The Public Citizen Litigation Group, on 2007:

“In 2007, the Public Citizen Litigation Group focused on work in four main areas, and we plan to continue pressing those issues this year. 1) Consumer access to the courts. Sometimes that means challenging pre-emption, as in the case of Riegel v. Medtronic – our 52nd Supreme Court case – and sometimes that means improving a court remedy, as in our work on the Paxil class-action settlement. 2) Federal regulators who don’t obey the law. We go after federal agencies when they don’t do what Congress has told them to do. Take, for instance, our hours-of-service case, which involves the number of hours truck drivers can legally drive on a daily and weekly basis. Congress told the Federal Motor Carrier Safety Administration to issue a rule that modifies the current rules to protect the health of drivers and public safety. Congress wanted the agency to promote safety, but the agency made things worse. That’s where we stepped in. And even though the courts agreed with us that the feder- al agency should make the rule better, the agency is still trying to make it worse. So we continue our fight. 3) Government secrecy. Using the Freedom of Information Act, we go after the documents the government wishes to keep secret but should be made public. 4) Internet free speech. We defend case after case to assure that “little guys” are able to criticize big corporations and government officials on Internet Web sites and in chat rooms. In addi- tion to continuing our work with these issues, we look forward to arguing our 53rd, 54th and 55th cases before the Supreme Court in 2008, which will, as always, be a very busy year for the Public Citizen Litigation Group.”

6 Trade Perspective on Global Trade Shifts in ‘07 With stories about jobs expansion talks ground to a Congress despite President a clear signal that the modest being sent offshore, wages halt, bringing to fruition Bush’s demands. With this, changes made to the Bush- declining, and unsafe food Public Citizen’s long-stand- Public Citizen achieved negotiated pact were insuffi- and toy imports topping the ing attempt since 1999 to another decade-long goal. cient. As part of that effort, news in 2007, our current halt the spread of this power- However, the year also Public Citizen worked with trade policies – and their ful global commerce agency; brought reminders of future labor, Latino, environmen- harmful effects – became a 3. The Free Trade Area work that needs to be done tal, consumer, faith, family front-burner issue for law- of the Americas – a hemi- and the role Public Citizen farm and other groups in the makers, political candidates sphere-wide NAFTA expan- plays. When Democratic United States and Peru. and the public. sion agreement involving 34 trade committee leaders For years, Public Citizen Last year provided many Latin American and decided to engage the Bush has worked to highlight the examples of the important Caribbean countries that we administration to add labor role that trade agreements shift in perspective on global have battled along with standards to several pending play in jeopardizing the safe- trade: international allies since NAFTA expansion agree- ty of imported food and 1. The Democrats 1995 – was officially ments that Public Citizen products. seized control of both cham- declared dead; had helped derail in the past Sadly, our predictions bers of Congress thanks to 4. Fast track – a in order to revive them, the came true as dire warnings of 37 fair trade supporters uniquely undemocratic organization and allies dangerous imported food replacing incumbents who process that gives the execu- worked to make clear that and products hit the news. had voted for the U.S. trade tive branch enormous discre- this was not an acceptable We prepared key reports on status quo of the North tion to choose trade part- way forward. imported food safety and American Free Trade ners, write trade agreements A majority (117) of toys and offered guidelines Agreement (NAFTA), the and enter into them before Democrats in the U.S. for necessary changes to our Central America Free Trade Congress ever votes, thereby House of Representatives – trade and consumer safety Agreement (CAFTA) and delegating away Congress’ including 12 of 18 commit- laws – and how consumers fast track; constitutional power to set tee chairs and 31 freshmen – can protect themselves as we 2. Globally, the World the terms of U.S. trade poli- opposed the Peru free trade all work together to fight for Trade Organization (WTO) cy – was not renewed by agreement, thereby sending these changes.

Public Citizen Global Trade Watch division staffers David Edeli (left) and Kate Pollard (right) lead protesters in Washington, D.C., as they chant slogans during a May rally against the proposed North American Free Trade Agreement expansion to Colombia.

Photo by Brandon Wu

7 Building Involvement in Trade Policy – One State at a Time

The “New Accountability Project” of vided them technical support so that Several states passed legislation in Public Citizen’s Global Trade Watch they could provide effective input to 2007 to ensure that their legislatures division works to diversify participation federal trade officials. get to vote on whether the state must in the U.S. trade policymaking process- be bound to comply with these con- es and increase the accountability of Many non-tariff, regulatory constraints straints. U.S. officials to promote globalization in today’s trade agreements apply to policies that suit most Americans’ states – even though state officials Also in 2007, 10 states passed resolu- needs. The project does this by helping have had no role in setting these rules, tions calling on the U.S. Congress to state and local officials become much less to agreeing to bind their replace the fast track system of trade involved in the U.S. trade policymak- states to comply. negotiations with a new, more inclusive ing process, which to date has not and accountable system under which included them or many other affected These include policies over which state states cannot be bound to comply with interests. and local governments traditionally non-trade regulatory constraints in have had jurisdiction, such as procure- trade agreements without the prior Since it was launched in 2005, the ment of goods and services for the informed consent of the states. project has educated officials in a num- state’s use, zoning and services such ber of states about how trade agree- as health care, energy, banking and For more information, visit www.citi- ments limit their policy space and pro- local economic development. zen.org/trade/subfederal.

States that have passed legis- Alabama, Maine, Montana, States that passed fast track lation to ensure full democratic Maryland Nevada, Pennsylvania, Utah, replacement resolutions process for agreement binding Vermont, Wisconsin

States that have done both Hawaii, Rhode Island

Lori Wallach, director of Public Citizen’s Global Trade Watch division, on 2007:

“That we succeeded this year in disarming Bush from any further fast track trade authority was a great victory – not just for the sake of Americans but for people around the world who otherwise would be subject to his esca- lation of NAFTA, the WTO and other mechanisms to implement Bush’s vision of global corporate rule. Plus, years of investment in building grassroots power and a terrific staff paid off. I’ve never been so proud than I was when seeing the role Public Citizen’s trade program played in this year’s Peru NAFTA expansion fight. Meanwhile, our long-term, relentless fight to build a broad national demand for a new approach on trade and globalization is playing out as caucus-goers and voters in Iowa and New Hampshire’s early 2008 primaries pushed these issues to the forefront and demanded presidential candidates state their plans for change.”

8 Health

Public Citizen Pushes for Patient Safety Each year, the Health have the FDA review their tect the American public,” transparency in drug infor- Research Group at Public drugs. This presents an obvi- said Dr. Sidney Wolfe, direc- mation, many other problems Citizen issues petitions, ous conflict of interest for the tor of the Health Research still exist with U.S. drug safe- writes letters and testifies FDA: How does an agency Group. “PDUFA has done ty, and Public Citizen spent before the federal govern- fairly assess the safety and too much damage already.” time and resources in 2007 ment to make sure drug com- effectiveness of drugs when it Public Citizen maintains successfully fighting for panies are not endangering needs money from the drug that this essential public serv- patient safety. In April, Public the lives or health of those companies to survive? ice function should be funded Citizen urged the FDA to who take prescription or Since PDUFA’s enact- entirely from the federal reject the approval of a new over-the-counter drugs. ment, there have been an budget. However, in painkiller, Arcoxia. The drug While one would think unprecedented number of September, Congress reau- is in the same class of drugs as that would be the job of the drug withdrawals, according thorized PDUFA for another Vioxx, which was banned in Food and Drug to a May 4 Public Citizen let- five years, voting to continue 2004 because it led to heart Administration (FDA), the ter to Congress asking that charging drug companies attacks. Like Vioxx, Arcoxia is agency’s objectivity in deter- the act be repealed. PDUFA user fees. associated with an increased mining the safety of drugs is compromises the drug In reauthorizing risk of heart problems. Wolfe compromised because it relies approval process by making PDUFA, though, Congress testified before the FDA that on drug companies to fund a what should be independent did make some progress. It the drug should not be large proportion of its activi- FDA reviewers indirectly required the creation of a approved for sale in the ties. The Prescription Drug accountable to the manufac- national database of clinical United States, and, in fact, User Fee Act (PDUFA), a turers of the drugs they are drug trials that will make should be pulled from the 1992 law, requires the FDA supposed to scrutinize. information about all ongo- market in the more than 60 to be funded from user fees “It’s time for Congress to ing clinical trials available to countries where it is sold. the government charges give the FDA the tools and the public on the Internet. A After Wolfe’s testimony, the pharmaceutical companies to funding it needs to best pro- clinical trials database, FDA advisory committee www.clinicaltrials.gov, voted against approval, and already exists, but it lists only Arcoxia has not made it to studies that are beginning the market. and does not provide the In another effort, Public results of the trials. The new Citizen wrote a letter to the database will make available FDA on April 9 calling for a The Prescription Drug User Fee Act information about results for misleading ad about the dan- (PDUFA), a 1992 law, requires the many trials. Public Citizen gerous painkiller Celebrex to has long advocated the cre- be taken off the air. Pfizer, FDA to be funded from user fees the ation of such a new database, the manufacturer of government charges pharmaceutical and did so again in a July Celebrex, released a commer- 2007 report (available at cial in early April 2007 that companies to have the FDA review www.citizen.org/publications misrepresents the risks of tak- their drugs. This presents an obvious /release.cfm?ID=7534) ana- ing Celebrex by asserting, lyzing the quality and accessi- contrary to scientific evi- conflict of interest for the FDA: How bility of all of the currently dence, that the heart dangers does an agency fairly assess the safe- available clinical trial reg- of Celebrex are no greater istries and results databases. than those of any other non- ty and effectiveness of drugs when it The report concluded that steroidal anti-inflammatory needs money from the drug compa- these registries and databases painkillers (such as Advil or are inadequate and require Aleve). The FDA has never nies to survive? strong federal regulations to required that the commercial make them more useful to be taken off the air or in the public. printed form. Even with this increased 9 Dr. Sidney Wolfe, director of the Health Research Group at Public Citizen, speaks at the “Taming the Giant Corporation” conference held in June in Washington, D.C.

Photo by Bridgette Blair

Health Research Highlights Of 2007 February: Public Citizen petitioned the FDA to ban third- generation birth control pills, which are known to double a patient’s risk of potentially life-threatening blood clots. This petition was accompanied by www.NotMyPill.org, an online outreach campaign that included a YouTube video and an opportunity for interested parties to voice their support of our petition to the FDA. So far, more than 20,000 people have signed the petition. The FDA has not yet responded.

March: Public Citizen published an article in The Journal of the American Medical Association (JAMA) that analyzed the accessibility and quality of information about pharmaceutical gifts to physicians in Minnesota and Vermont, the only two states that currently disclose such transactions publicly. Public Citizen researchers concluded that the laws requiring disclosure were inadequate, and Public Citizen went on to testify before the Senate Special Committee on Aging on June 27 about the need for national public disclosure of pharmaceutical company gifts to physicians. Such a bill has been introduced in the Senate.

April: Public Citizen published a major report analyzing Medicaid programs state-by-state. The report found major disparities in the quality of the state programs. The report examined more than 100 factors related to the programs’ eligibility requirements, reimbursement policies, scope of services and quality of care for each of the 51 individual state Medicaid programs. The report was an update of a 20-year- old Public Citizen report on Medicaid, and it again put public pressure on states to improve their Medicaid programs.

October: Public Citizen testified before an FDA advisory committee that children under 12 should not be given over-the- counter cough and cold medications due to a lack of evidence that the medicines are safe or effective for that age group. The FDA panel voted to ban scores of popular cough and cold products intended for children under the age of 6, a measure Public Citizen feels does not go far enough.

Dr. Sidney Wolfe, director of the Health Research Group at Public Citizen, on 2007: “Public Citizen’s Health Research Group devotes much of its time and resources to removing unsafe medications from the market, exposing flaws in the country’s health care delivery system and publicizing the too-cozy relationship between doctors and the drug industry. In 2007, we were involved in efforts to get the diabetes drug Avandia off the market after it was shown to increase the rate of heart attacks. We testified before an FDA advisory committee urging the FDA to take this dangerous drug off the market. We also testified against the approval of the painkiller Arcoxia, which is in the same drug family as Vioxx. After our tes- timony, the FDA advisory committee voted against drug approval. In March, we published an article in The Journal of the American Medical Association describing the gifts that drug companies shower on doctors – ranging from dinners to large consultant fees. The article has led to calls for a national data- base disclosing such gifts, and we testified at a Senate Aging Committee hearing on this issue. A bill calling for such a data- base has now been introduced, with our assistance, by Sen. Herb Kohl (D-Wis.) and Sen. Chuck Grassley (R-Iowa). Our fight to protect the health of the American public continues in 2008. We plan to increase our involvement in issues related to health care delivery – including Medicare and Medicaid, and single-payer national health insurance.”

10 Energy

Public Citizen Battles to Reduce Oil Consumption, Increase Fuel Economy In 2007, American con- well as by increasing fuel passed Dec. 13, contained What we got: Public sumers made it clear that economy standards for cars some consumer-friendly pro- Citizen lobbied long and they were fed up with high and light trucks. visions. Congress improved hard against the loan guaran- prices at the pump, increased Tyson Slocum, director fuel economy standards, tees, citing the fact that pollution and government of Public Citizen’s Energy requiring automakers to nuclear power plants often handouts for Big Oil. And Program, testified before the make vehicles that achieve can’t repay their loans – for a while, it seemed like U.S. House Committee on 35 miles per gallon by 2020. which in this case, would Congress would agree. Energy and Commerce’s But the bill is a faint mean that taxpayers would The big energy issue this Subcommittee on Oversight shadow of what it once was. end up footing the bill. year was Congress’ passage and Investigations on May Here’s what else happened: Congress listened; the of an energy bill that – with 22 about gas prices, oil com- 1. What we wanted: A nuclear loan guarantees were any luck – would have pany profits and price-goug- repeal of $12.5 billion in not included in the final ver- repealed subsidies to oil ing. He explained that even subsidies for the oil industry sion of the energy bill. companies and, instead, with record industry profits so that money could be used (However, $20 billion in would have provided incen- and sky-high gas prices, Big for renewable energy and nuclear loan guarantees did tives for consumers and Oil is not adequately invest- efficiency measures. pass Congress in a funding industry to use renewable ing its windfall into projects What we got: In bill, but the money must still energy. Public Citizen met to help consumers or to ease response to Big Oil’s $315 be appropriated – yet anoth- with key lawmakers through- the nation’s addiction to oil. billion in profits since 2005, er battle.) out the year and asked them Oil companies, he said, the House of 3. What we wanted: to help reduce the nation’s should not be rewarded for Representatives included a More emphasis on renew- dependency on foreign oil this anti-consumer behavior provision in its version of the able energy. by backing financial support with subsidies and tax energy bill that would have What we got: Originally, for renewable fuels like wind breaks. revoked the subsidies and, the House bill included a farms and solar power, as The final energy bill, instead, used the money for provision that required utili- renewable energy and effi- ties to produce or procure ciency measures. 15 percent of their power However, the Senate in needs from renewable ener- December stripped the revo- gy sources by 2020. But cations from its version of industry ties and threats the bill. President Bush also from Republicans led the threatened to veto the ener- Senate to remove the bill’s gy bill if the revocation pro- renewable requirement. vision remained. So Big Oil Thanks to Congress’ got to keep its handouts unwillingness to stand up to from the government. Big Oil on behalf of the 2. What we wanted: American people in 2007, Exclusion of a proposed $50 Public Citizen will be hard at billion loan guarantee pro- work in 2008, pushing for gram for the nuclear power energy independence and industry. innovation.

Public Citizen’s Energy Program Director Tyson Slocum testifies in May before the U.S. House of Representatives’ Energy and Commerce Subcommittee on Oversight and Investigations.

Photo by Collin Baker 11 Texas Fights Dirty Energy, Coal Giants The Texas office of Public Citizen is challenge the new plant proposals, application in the U.S. in 29 years. The a powerhouse – literally. urged 400 companies in the units would be added to the old facility The office is fueled by the desire to Dallas/Fort Worth area to unite against near Bay City, Texas, called the South develop smarter, cheaper, cleaner and the encroaching coal plants and moti- Texas Nuclear Project, also known as cooler energy sources while trying to vated citizen groups statewide to the South Texas Nuclear Generating stop corporate plans to build dirty protest and testify against this super- Station. power plants. sized expansion of dirty power facilities. Tom “Smitty” Smith, director of In 2007, Public Citizen and its The work paid off. When TXU was Public Citizen’s Texas office, and other allies were once again pitted against in the process of being acquired by pri- leaders of environmental and public industry giants. The Lone Star State vate equity firms Kohlberg Kravis interest groups are educating the public had 19 new coal-fired plants on the Roberts and Texas Pacific Group, the about the fact that expanded use of drawing board, 11 of which were pro- firms announced impressive environ- renewable energy – and not new posed by TXU Corp., the largest elec- mental commitments, which included a nuclear reactors – is the way to respond tric utility in the state. pledge to cancel plans for the eight coal to growing energy needs. Construction of that many dirty plants. They lobby and influence legisla- facilities would have resulted in the And Houston-based NuCoastal tors, agencies and industry to pursue additional annual emissions of more Power Corp. agreed to offset 100 per- sounder alternatives, such as wind smog-forming gases than 1 million cars cent of the carbon dioxide and mercu- power. Texas now leads the nation in and more ozone-depleting gases than ry emissions from its new petroleum wind power production and has the 20 million cars. coke facility in Port Comfort, Texas. two largest wind farms in the world in Coal-burning power plants are The agreement was forged between the planning stages. Public Citizen has responsible for 80 percent of the car- NuCoastal, Public Citizen and the taken on the role of mediator between bon dioxide emissions from all U.S. Sustainable Energy and Economic the wind industry and birding groups power plants and are significant sources Development (SEED) Coalition. because of concerns that coastal wind of mercury pollution. Texas power Public Citizen also is working with energy projects might impact migratory plants emit more carbon dioxide and the SEED Coalition, Sierra Club and bird populations. Working with The mercury than the plants in any other other groups to balance the pro-nuclear Wind Coalition, the groups want to state. media attention surrounding the news develop guidelines for carefully select- But thanks to the organizing efforts in September that the state’s oldest ing the location of wind plants to avoid of Public Citizen and a number of like- nuclear power plant, which has operat- any disruption to the flight patterns of minded consumer and environmental ed since 1988, might expand. migratory birds. groups, eight of those 11 TXU plants In September 2007, the Nuclear “We engage stakeholders of every will never see the light of day. The Regulatory Commission accepted an stripe in our determination to improve groups convinced 36 municipalities to application to build two new nuclear the cost, safety and efficiency of energy jointly recruit a volunteer legal team to reactors at the plant – the first such for everyone,” Smith said.

Tyson Slocum, director of Public Citizen’s Energy Program, on 2007:

“We spent a lot of time and resources in 2007 trying to undo some of the damage of the 2005 energy bill. And, for most of the year, we thought we were largely successful. Because of our work – and the work of others in the public interest community – we limited the amount of money that the administration can dish out to nuclear power plants in the form of loan guarantees. However, despite our efforts, oil companies will still receive $12.5 billion in giveaways dur- ing the next decade because Congress did not delete them when it finally passed the energy bill in December. And throughout the year, we continued to build the grassroots networks necessary to stop a new generation of nuclear power plants from being built. We joined with old and new environmentalist friends to educate citizens about the dangers of nuclear power. Global warming and high gas prices are on everyone’s minds as we enter 2008. We know that. So we’ll continue to advocate renewable energy systems, energy efficiency and an end to the current system of tax breaks for oil and energy companies.”

12 Safety and Regulations Public Citizen Presses for Safer Trucks Fact: Truck driver fatigue is a big factor in up to 40 per- Robert Shull, deputy director for auto safety cent of all big truck crashes. and regulatory policy, on 2007: Fact: The risk of a crash “Because 2007 began with a historic power shift in Congress, we started the year expect- increases dramatically after ing an equally historic shift for public safety. Ultimately, though, we had to fight just as hard as eight hours of truck driving. ever – and, with the impressive showing of support from Public Citizen members and activists, For years, Public Citizen we pulled off some amazing victories. Getting the Department of Transportation to do its job has pushed the federal govern- for auto and highway safety was as much of a battle as ever in 2007. Still, when the adminis- ment to make sure tired truck- tration turned a deaf ear to concerns about safety, Public Citizen pressed forward, turning to ers are given adequate rest – to the courts and Congress to force the Department of Transportation to put the public first. We keep the truckers healthy and won important victories in the courts on excessive working hours for truckers and inadequate to keep everyone on the fuel economy regulations, and Congress stepped up to the plate to kill funding for a reckless nation’s roads safe. pilot project that gave selected Mexico-based trucking companies full access to U.S. roads. In 2007 alone, we testified Also, the administration issued a rule in September requiring automakers to protect occupants before Congress, won a law- in side-impact crashes. To meet it, manufacturers likely will install side head air bags. This rule suit, lobbied lawmakers and will help reduce the 9,000 deaths that are caused each year by side-impact crashes. More hosted a press conference to achievements are waiting in the wings. The House just passed a bill to protect children from let the nation know about the non-traffic vehicle hazards such as strangulation in power windows, and the Senate vowed to risks of allowing truck drivers take it up early in 2008. We fully expect the Bush administration to continue its reckless to drive long periods without efforts to erode public protections, but Public Citizen is on the case. We refuse to quit … and rest. But despite a command in 2008, we’re not going to let up one bit.” from Congress a decade ago and two harsh decisions by the their 70-hour weekly driving reckless “pilot project” to give tion because it was not going nation’s second-highest court, requirements, thus driving as a number of Mexico-based to allow the public to com- the federal government has long as 88 hours in eight days. trucks full access to U.S. roads, ment on the pilot project. The continued to spin its wheels, This is the second time this even though those trucks may administration eventually trying to force through busi- court told FMCSA to rewrite be unsafe and may violate U.S. caved, allowing public com- ness-friendly hours-of-service the rules. The first time, in environmental standards. ment. FMCSA moved for- rules that would allow truck- 2004, resulted in FMCSA Before the pilot project, ward with the pilot project ing companies to require their writing a new rule that was vir- Mexico-based carriers were despite opposition – until employees to drive long hours tually identical to the previous permitted to travel only within Congress put a stop to it. – even when tired – and short- one. a limited border zone. But the Nevertheless, the Bush admin- en the rest period between In response to the July rul- North American Free Trade istration insists on defying the work weeks. ing, FMCSA issued an interim Agreement required the U.S. law. In fact, the administration In July 2007, Public final rule in December, keep- to give carriers from Mexico told the media in December Citizen and other safety ing the increased daily and full access to U.S. roads. that it plans to continue the groups thought that they had weekly driving time. Public Public Citizen lobbied project and, in late December, won the hours-of-service Citizen responded by holding ferociously against the ill-con- gave full access to U.S. roads issue, once and for all, when a press conference with victims ceived project, building grass- to yet another Mexico-based the U.S. Court of Appeals for of tired truckers, testifying roots activist support for our truck. The administration the D.C. Circuit struck down before Congress on Dec. 19, position. claimed that Congress banned the Transportation denouncing the not-so-new In December, Congress only the “establishment” of Department’s Federal Motor rule, and asking the court of banned funding for the project the pilot project, not its con- Carrier Safety appeals to enforce its earlier – a move intended to shut it tinued operation. Administration’s (FMCSA) decision striking down the down. This victory came after “We will continue to pro- hours-of-service rules that rule. Public Citizen and other tect the public’s safety in increased truckers’ daily driv- Public Citizen and other groups shined a spotlight on 2008, no matter how daunt- ing time from 10 hours to 11 safety groups were victorious the issue throughout 2007. In ing a task the Bush administra- hours and allowed truck driv- in 2007 on another major April, Public Citizen and other tion tries to make it,” said ers to start driving again a truck safety issue: FMCSA’s environmental and safety Public Citizen President Joan mere 34 hours after meeting plan to push ahead with a groups sued the administra- Claybrook. 13 Fiscal Year 2007 Financials

Support From Foundations/Organizations Bequests The Arca Foundation Irene Diamond Fund In sympathy for people who have lost a loved one and in deep The Center for Study of Janelia Foundation appreciation for those who made an ultimate gift to protect our health, safety and democracy. Responsive Law Litman Foundation Clean Air Task Force Magnolia Charitable Trust Jacqueline Hall Thora Rose Common Cause Education Fund The Moriah Fund Susan Hamill Helen Schmieg CS Fund Park Foundation Jack and Kay Hansma Irene Schmitt Edna Wardlaw Charitable Trust The Pittsburgh Foundation Miriam Lukens Alfred Silverton The Educational Foundation of Ploughshares Fund Verna Norman Richard Trexler America The Prentice Foundation Inc. Stanley Rappeport Pauline Vainstein The Energy Foundation Rockefeller Brothers Fund James Rasmussen Eve Vieregge Environmental Defense Alfred P. Sloan Foundation Rose Robbins Yvonne Wiener Equal Justice Works Solidago Foundation Wayne Wiley The Ettinger Foundation Inc. Barbra Streisand Ford Foundation Foundation Inc. We acknowledge with deep gratitude those annuitants who have The Abraham Fuchsberg Family Tamarind Foundation made gifts that will ensure the continuation of Public Citizen’s work for the benefit of future generations. Foundation Wallace Global Fund Grassroots International

FINANCIAL STATEMENT Public Citizen Inc. and Public Citizen Foundation Inc.

Combined Statement of Revenue Support and Expenses for the Year Ended Sept. 30, 2007

Revenue and Support Contributions and Membership fees ...... $6,933,290 Publications/Subscriptions ...... $2,225,104 Grants...... $1,136,054 Program Income*...... $146,313 Rental Income** ...... $253,038 Other...... $21,167 Income from Investments...... $616,616 Total Revenue and Support ...... $11,331,582 Expenses Programs ...... $6,295,216 Publications ...... $2,660,061 Support Services...... $2,347,965 General and Administrative...... $1,579,883 Development...... $768,082 Total Expenses ...... $11,303,242 Change in net assets***...... $28,340

*Court awards **Net of Operating Expenses *** In accordance with Statement of Financial Standards No. 116, Accounting for Contributions Received and Contributions Made, Public Citizen is required to record all grants and contributions in the current fis- cal year even if the monies have not been received or related expenses have not been expended. As of Sept. 30, 2007, Public Citizen had temporarily restricted net assets of $1,417,428, which represent restricted grants and contributions whose donor-stipulated time or purpose restriction has not been accomplished. Several of the net assets included in this amount are intended to be expended over several subsequent years.

14