Join in Food Day, April 17,1975
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Join In Food Day, April 17,1975 SPECIAL REPORT neu n<u / Consumers and the kl "r*uWoeu"neu»/ ' 94th CONGRESS con/umer federation of omerico Washington, D. C. April,1975 Supermarket Ripoff Fought By Local Consumer Groups A New Supermarket Ripoff: Packages Without CFA also urges that whenever and whereever a Prices is hot off the presses from Consumer store opens with computerized check-out stands Federation of America. The pamphlet describes and no prices on the merchandise, consumers the supermarket industry's new computerized should let the store manager and tne general check-out system and outlines an action program public know that there is objection to the to help consumer and labor groups meet the elimination of price marking. challenge of disappearing prices. Perhaps the strongest argument for leaving In the introduction, CFA explains consumers' prices on is the fact that the cost is minimal. A outrage at the new gimmick, "The supermarket store with $3 million in annual sales could keep industry takes the attitude that if the consumers prices on packages for about $225 per week. Yet, want prices on merchandise it will give them the supermarket industry continues its plans for grease pencils so they can mark the prices for their removing prices in spite of expressed outrage by own information. This is typical of the "public-be- consumers throughout the country. Last year, for damned" attitude the industry takes. It equates on example, shopper ranked "all prices clearly the PR equivalency scale with "let them eat labeled" as the second most important character- cake." istic of a store. Cleanliness was first. CFA has outlined a two point program for Packages Without Prices answers the basic action. In the legislative area. CFA urges that questions about the computerized check-out consumers and workers support Federal, state system and includes a summary chart of the pros county and municipal legislation to require that and cons. Copies are available from Consumer every packaged consumer product have the price Federation of America, 1012 14th St., N.W., plainly marked on it. Washington, D.C. 20005. Local UPC report p. 3. ACA Bill Begins Crusade Through Congress On March 12, 1975 the Government Operations the ACA initiates a judicial review without having Committee voted eleven to one to report S. 200 participated in the agency's proceeding, it must (The Consumer Protection Act) to the Senate floor explain this failure to participate to the court. by March 21, 1975. The bill would establish an 4) Complaints which are unsigned may not be independent, non-regulatory Agency for Consumer placed in the public document room as a result of Advocacy (ACA) to represent the interests of an amendment by Senator Lawton Chiles (D-FIa). consumers before federal agencies and courts and This amendment denies the consumer public to provide the public with information on access to facts and issues contained in unsigned consumer matters. letters which are often the only method by which On the opening day of hearings, CFA testified an "insider" can draw attention to an abuse that the Agency for Consumer Advocacy is its top without jeopardizing his own job. legislative priority for the year. 5) Fortunately, the language of S. 200 was Several amendments to S. 200 were passed. brought in line with the Freedom of Information 1) Exempted from the requirement of answering Act and accordingly there will be no prohibition interrogatories are "small businesses" which, as on the disclosure of trade secrets. defined under the Act, are those with assets under 6) Finally, a statement of principles presented $7,500,000.00, a net worth not exceeding by Senator William Brock (R-Tenn) will be drafted $2,500,000.00, and an average annual net income during the coming week into final amendment (after taxes) for the preceding two years of not language which will require every federal agency more than $250,000.00. Under the amendment to issue a consumer cost impact statement with an sponsored by Senator Sam Nunn (D-Ca), the new regulation it promulgates. This amendment is previous requirement that the business have an of great concern to the consumer because it could average of no more than 25 full-time employees substantially increase the paperwork of agencies over the preceding two years has been deleted. without a corresponding benefit to the consumer. 2) The ACA will be allowed to communicate Of special interest to the backers of the ACA was with and provide information or assistance to state the historic change of the filibuster rule on March agencies or courts. This compromise amendment 1, 1975. Formerly, a two-thirds vote of the Senators offered by Senator Charles Percy (R-lll) was present and voting was required to cut off floor substituted for an amendment by Senator Lee debate. Under the new rule, a flat vote of 60 Metcalf (D-Mont) which would have permitted (three-fifths of all Senators) will suffice. As the ACA to intervene in state regulatory proceedings two-thirds filibuster vote had been a major at the invitation of a state official. obstacle to passage of the Consumer Protection 3) An amendment was adopted which was Act in the last Congress, it is hoped that the recent An angry consumer joins in a protest led by San offered by Senator Richard Stone (D-FIa), a change will enhance the likelihood of passage Fransisco Consumer Action against Lucky Super- co-sponsor of S.200, although not a member of the when the bill reaches the Senate floor—probably market which has removed prices from packages. Committee. The amendment provides that when after the Easter recess. Nothing Fair SPEAK OUT ! Consumer Centered Car Insurance by lames I. Sheera n, Commissioner of Insurance About Fair Trade Laws for the State of New jersey Ideally, any driver ought to be able to walk into Commissioners Demlow and Monroe and I share The Antitrust and Monopoly subcommittee of an agent's office and purchase the auto insurance a common disenchantment with the ability of the the Senate Judiciary committee recently com- he wants from the company of his choice at a price NAIC to meet head-on the consumer-related pleted four days of hearing on a bill that would he can afford to pay. Unfortunately, that's not the problems in insurance regulation. We believe the repeal "fair trade" exemptions in the antitrust laws. story of the marketplace as it exists today. In New NAIC is industry-dominated, and its approach to An additional two days of hearings have been Jersey, for instance, more than one in every 10 insurance regulation is still wedded to the scheduled for April 9 and 10. Carol Tucker drivers do not enjoy this full availability of auto traditional, industry-knows-all concept. Today, Foreman, CFA's executive director, testifying insurance at affordable costs —and, more often insurance is big business that, in a variety of forms, before the subcommittee on February 19, than not, for reasons that do not relate at all to has become indispensable to the consumer. It emphasized CFA's support and approval of this driving ability, driving habits, or driving record. requires not the traditional approach, but a special legislation, sponsored by Sen. Edward Brooke The problem of assuring full availability is a approach by the regulators, who must never forget (R-Mass.) national one, and it's growing more urgent every that they are the representatives of the consumer Under "fair trade" laws manufacturers are day. Before it becomes a full-scale disaster, two of (in fact, the only voice the consumer may ever allowed to set a price at or above which brand my fellow state commissioners, Ark Monroe of have) and what they do should not be the name items must be sold. No standards are Arkansas and Daniel J. Demlow of Michigan, and I by-product of the industry's expertise but should established or defined by "fair trade" laws to have given it a high number in our listing of arise from their obligation to make sure that the guarantee fair prices. Instead, according to Ms. consumer priorities that will be discussed in a consumer gets a fair shake. Forman, "with "fair trade" there is no competition series of working conferences that we have Under the usual NAIC procedure, the industry with regard to price." initiated among ourselves. It is typical of the kind always bats first, proferring pre-packaged pro- "Fair trade" laws force retailers into the role of of problem that challenges us at what I call our grams with a solemn avowal that they'll be great distribution agents for manufacturers, claimed Ms. |AM (Jersey, Arkansas, Michigan) Session. The for the consumer. We want to reverse this Foreman, making it impossible for the retailers to session is actually an informal alliance of the three procedure. We want to devise legislation from a act as effective purchasing agents for consumers. states to mount a common effort to find solutions consumer's point of view, and then let the industry By setting standard product prices manufacturers to problems of insurance regulation outside the do all the commenting and criticizing it wants. deprive the retailers of the ability to generate traditional vehicle for such interstate cooperation We want the consumer to get his licks in first. volume by taking a smaller mark-up. — the National Association of Insurance Commis- According to calculations in the 1969 Economic sioners. Report of the President, Ms. Foreman estimated consumers suffer to the tune of about $2.1 billion a year because of "fair trade" laws. A Department of Justice survey found consumers in "fair trade" CFA Wins Appeals Court Victory states pay as much as 19 to 27 per cent more for "fair traded" items than do consumers in non "fair trade" states.