PUBLIC CITIZEN NEWS 5 • Jan/Feb 2017

2016: ADVANCING A PROGRESSIVE AGENDA

the rhythms of the nation’s capital, election years are unique. They present challenges—members of Congress spend less time Inlegislating and more time campaigning, and the country and media are focused on the daily developments of races. But election years also offer unique opportunities—more attention is focused on attacks on our democracy and the problem of big money in politics, as well as the need to curb the power corporations hold over government.

In 2016, Public Citizen took ad- patients and medical profession- vantage of these opportunities als from the dangers of powdered and drove forward an agenda of gloves; blocking from a budget bill a more just and inclusive democ- hundreds of riders that would have racy; a trade policy that benefits gutted many environmental and people, not multinational corpora- consumer safeguards; and sending tions; safe workplaces; access for a strong message to pharmaceuti- all to affordable medications and cal companies that they can’t keep safer health care; energy policies price gouging. that benefit people, not major utili- We continue to press our lawsuit ties; access to the courts so people against the Federal Election Com- can hold corporations accountable mission (FEC), contending that the for wrongdoing; and much more. agency was wrong when it failed to We did so by tapping the energy investigate Crossroads GPS for not of activists, building coalitions registering as a political committee. with local and national organiza- We are urging the court to direct tions, conducting research, argu- the FEC to reconsider. ing consumers’ interests in courts, November’s elections showed petitioning agencies and lobbying that Public Citizen is needed now members of Congress. more than ever. President-elect One of the year’s highlights was Donald Trump quickly began iden- the three-day mobilization we tifying corporate insiders and bil- helped organize in April called “De- lionaires he wants in his Cabinet mocracy Awakening.” Thousands and as top agency heads. They of people came to Washington, are sure to put corporate inter- D.C., from throughout the country ests ahead of the public interest. to rally to get big money out of poli- A Congress dominated by corpo- tics and restore voters’ access to the rate-minded lawmakers already ballot box. We continue to build on is targeting critical and hard-won the energy ­generated at that event. protections, putting safeguards in Other highlights include halting their crosshairs. the dangerous Trans-Pacific Part- We have proven in the past that we nership agreement; successfully can accomplish much despite a hos- persuading agencies to curb the use tile administration and Congress. We of forced arbitration clauses, which intend to resist Trump and the corpo- shut consumers out of courts; win- rate agenda at every turn. ning state measures that help to A single “Year in Review” issue curb money in politics; winning alone cannot do justice to the en- major court cases that help en- ergy and dedication of our support- sure consumers can band together ers, but this one highlights mile- to hold corporations accountable stones of 2016, all united under a for wrongdoing; gaining stronger common banner of progressivism (Top) Thousands march past the U.S. Capitol as part of the Democracy Awakening mobilization in April. Participants called for an end to big money in politics. Photo protections for workers exposed that maintains ambitious hopes for courtesy of Rich Kessler. (Bottom) Activists rally at the White House in June 2016, to beryllium and silica; protecting tomorrow’s possibilities. u demanding democracy reforms. Public Citizen file photo. 6 • Jan/Feb 2017 PUBLIC CITIZEN NEWS

Power to #WeThePeople espite the nearly $7 billion spent on dorsed by 300 organizations and de- November, it is clear that we are enter- Dthe presidential elections, strides manded that every voter have access ing an era of unprecedented conflicts were made in 2016—especially at the to the ballot box and that big money be of interest and potential for corrup- local and state level—to get big money purged from the political system. tion. Public Citizen’s role as a watchdog out of politics and restore democracy In 2016, Public Citizen also worked in the nation’s capital is more essential to the people. with allies and local leaders to help than ever, and we will be even more re- Since the U.S. Supreme Court’s di- two states call for a constitutional lentless and vigilant. sastrous 2010 Citizens United ruling, amendment to overturn Citizens Unit- Among the things we have done which gave corporations and the su- ed—bringing the total to 18 states plus since the election include calling on perwealthy the green light to spend the District of Columbia in favor of an Trump to sell his business to avoid un- unlimited sums in elections, Public amendment. precedented and far-reaching conflicts Citizen has been fighting to get it over- Additionally, six ballot initiatives of interest, releasing research showing turned. We’ve been part of building a around the country were passed on the extent of corporate ties of his Cabi- large and diverse movement of people Election Day in support of campaign net nominees and running an ad dur- and organizations that have come to- finance reform and government trans- ing Fox & Friends highlighting Trump’s gether to restore our democracy. parency, from Washington state to hypocrisy in appointing wealthy, elite In April 2016—following months of South Dakota. Washington insiders to his team. We’ve organizing and coalition building— Public Citizen is leading the coalition been prominent in the media and have more than 5,000 people converged effort to pass a small-donor public fi- helped lead efforts among allies to de- on Washington, D.C., for Democracy nancing measure in Washington, D.C. velop strategies to fight back. Awakening—a historic three-day mass The bill has a majority of Councilmem- Follow Public Citizen's work to ex- mobilization. Public Citizen was a lead bers in support going into 2017. pose the real Donald Trump at www. organizer of the effort, which was en- Following Donald Trump’s victory in citizen.org/trump. u

DEMOCRACY Public Citizen’s 2016 democracy reports include:

• “Disrupting Democracy: How Uber Deploys Corporate Power to Overwhelm and Undermine Local Government” (May): Uber uses its vast wealth to lobby and undermine local governments. • “District Development: D.C. Contractors Dominate 2016 District Primaries, Fair Elections Proposal Provides a Viable Alternative“ (June): In a city famed for corruption, 40 percent of D.C. Council candidates' funding came from the construction and real estate sectors. Public fi nancing of elections would restore balance. • “Big Business Ballot Bullies: In 2016 State Ballot Initiative Races, Corporate-Backed Groups’ Campaign War Chests Outmatch Their Opposition by an Average of 10-to-1” (September): Corporations spent nearly $140 million in eight state ballot initiative races, crushing the opposition by as much as 24-to-1. • “Promoting a Transparent and Democratic Presidential Transition” Series: A series of reports outlining good government principles that the new presidential transition team should adopt. • “Corporation-Backed Ballot Initiative Campaigns Spent More than $335 Million, Won 62% of Races Where One Side Was Mostly Funded by Corporate Interests” (November): Of 37 ballot initiative races in 17 states where at least one side was mostly funded by corporations and business interests, the corporation-backed side was victorious in 23 contests. • “Corporate Interests Infest Trump Transition at Federal Agencies” (November): Of the 75 landing team members announced by the Trump transition, 70 percent have a corporate affi liation.

“Public Citizen fights the good fight, taking right action with no frills, no boasting – just knowing what has to be done and doing it. Honest, moral, hard working. They keep their eye on the most important thing – the promotion of equal rights, the defense of the individual, with compassion for all.” – Polly Cherner, Public Citizen member PUBLIC CITIZEN NEWS 7 • Jan/Feb 2017

On previous page: Thousands march past the U.S. Capitol as part of the three-day Democracy Awakening mobilization in April. Photo courtesy of Rich Kessler. Above: A group demonstrates during a march in April. Public Citizen file photo.

State voices rise • California passed a ballot measure requir- tions bill, which would empower small against big money: ing that all bills be publicly available for 72 donors in District of Columbia races by hours before they are put to a vote in the providing a public match for small dollar • Public Citizen led grassroots groups in state legislature. Public Citizen endorsed contributions. The organization will con- New York to help make that state the the measure. tinue to push for this in 2017. u 17th to call for a constitutional amend- • Public Citizen worked to build national ment to rein in election spending. New support for South Dakota’s IM-22. Voters York’s legislature is the first with at least passed the campaign finance and ethics Pushing for disclosure of one chamber controlled by Republicans to reform package, designed to increase ac- dark money in elections: do so—signaling that the public’s biparti- countability and transparency in state san dismay over Citizens United is finally government and set up a small donor pub- In August, Public Citizen appeared in catching up with our elected officials. lic financing system for state offices. court for a key hearing in Public Citizen • Washington state residents voted 64 percent • With Public Citizen staff and volunteer v. Federal Election Commission (FEC). We to 36 percent in favor of I-735, which made it support Howard County, Md., and Berke- asked the court to declare that the FEC the 18th state to formally call for a constitu- ley, Calif., voters passed robust public fi- was wrong when it failed to investigate tional amendment to overturn Citizens Unit- nancing measures. Karl Rove's Crossroads GPS for not reg- ed. Public Citizen worked with groups in the • In November, Public Citizen experts and istering as a political committee, and to state and nationally to get the initiative on dozens of other organizations testified in direct the FEC to reconsider. the ballot and to mobilize voters. favor of the Washington, D.C., fair elec-

Activists rally at the White House in June, demanding democracy reforms and an executive order disclosing political spending. Public Citizen file photo. 8 • Jan/Feb 2017 PUBLIC CITIZEN NEWS

Fighting Back Against Corporate Power rom Wells Fargo’s fake accounts presidential administration take even public protections and rig the rules in Fscandal to Volkswagen’s emissions longer. favor of big business. cheating, and from increased corporate Excessive delays and misleading To push back on corporate political political spending to the hundreds of rhetoric weren’t the only threats to power, Public Citizen urged the U.S. special favors for big business that con- public protections in 2016. Congressio- Securities and Exchange Commission gressional Republicans tried to sneak nal Republicans tried to add more than to craft a rule requiring publicly traded into the federal budget, the onslaught 750 poison pill policy riders to 2017 companies to disclose their political of corporate crime and corruption in budget legislation. Many of these riders spending to shareholders. As part of 2016 was unrelenting. were sneak attacks on government and that campaign, Public Citizen pushed That’s why Public Citizen stepped financial reforms as well as consumer Vanguard, the nation’s largest manager up efforts to hold big businesses ac- and environmental protections that of retirement savings, to support politi- countable for wrongdoing and defend Public Citizen fought to create. But a cal spending disclosure by the compa- public protections. During 2016, Public Public Citizen-led coalition successful- nies in which it invests. Public Citizen Citizen fought for greater disclosure of ly repelled the threat of riders—for now. delivered nearly 60,000 petitions in corporate political spending, stronger The attacks on regulatory protec- favor of disclosure from current and and more effective regulation of big tions were part of a coordinated assault prospective Vanguard customers, pres- business and tougher enforcement of backed by corporate-funded groups sured the company on Twitter and Wall Street reforms, and pushed back like the U.S. Chamber of Commerce. pushed the company in traditional and against industry attacks on the public Public Citizen released a report this social media to advocate disclosure. interest. year showing that most of the fund- With corporate crime on the upswing After Wells Fargo was caught open- ing for the Chamber comes from just a and an incoming administration packed ing millions of fake accounts, Public handful of corporate megadonors, and with corporate titans, Public Citizen’s Citizen’s policy experts were among the another report showing how the Cham- government and financial reform work loudest voices calling for a multiagency ber uses small business owners as un- is going to be more important than ever investigation into the bank’s wrongdo- witting pawns in its fight to dismantle in 2017. ing, a clawback of executive bonuses, prosecution of top bank executives, an end to forced arbitration rip-off clauses that blocked victims from suing and a breakup of the bank. As Public Citizen’s financial policy advocate Bart Nay- lor argued in a book released in June, megabanks have grown “too big to fail, too big to jail and too big to manage.” Wells Fargo’s widespread fraud was just a case in point. We need regulatory protections and tougher enforcement to hold big banks and other bad corporate actors ac- GOVERNMENT & FINANCIAL REFORM countable, but it’s taking far too much time to write the rules that would do so. Public Citizen released a series of re- ports this year illustrating the problem of excessive regulatory delay. Contrary to the claims made by big business and Republican politicians, public protec- tions now take more than three years on average to work their way through Top photo: Speakers gather in front of the U.S. Capitol for a press conference in July on a financial transaction tax bill to curb speculative Wall Street trading. Lisa Gilbert, director of Public Citizen's Congress the federal rulemaking process, and Watch division, is fourth from the left. Lower photo: Bart Naylor, financial policy advocate at Public Citizen, rules finished in the final months of a speaks at the "Too Big to Fail" book release in June. Public Citizen file photos. PUBLIC CITIZEN NEWS 9 • Jan/Feb 2017

Fighting Back Against Corporate Power Exposing the U.S. er administrations. The report effectively lebrities, athletes and average consumers on Chamber of Commerce debunked claims that rules finalized near Instagram that most likely were paid ads. Pub- While the U.S. Chamber of Commerce may the end of a presidential administration are lic Citizen has continued to call on the FTC to claim to represent the interests of hundreds rushed or sloppily drafted. enforce its policy requiring paid ads and en- of thousands of small businesses, two reports While conservative scholars, activists and dorsements to be identified as such. from Public Citizen’s U.S. Chamber Watch pro- elected officials like to claim fealty to the idea gram prove that it is, in fact, a mouthpiece of that “midnight regulations” are “rushed,” Campaigning against ads huge corporations. “flawed” and the product of “cutting corners,” in national parks According to the “The Gilded Chamber” the report exposed this alarmist rhetoric for The National Park Service (NPS) proposed report, just 74 entities provide almost 60 per- what it is: a simple ploy to prevent agencies a policy to actively seek donations from cor- cent of the Chamber’s funding, making it ap- from promulgating regulations in the final porate vendors, liberalize rules on “donor rec- parent that the Chamber is not a voice for the months of an administration. ognition,” drop the current policy that parks vast majority of American businesses, but in- must be free of commercialism and lift restric- stead is a tool for those whose ultimate aim is Combating hidden ads tions on naming rights in parks. Public Citizen the corporate capture of our government. on Instagram opposed the NPS’ plan to sell naming rights The second report, “The Chamber of Litiga- In 2016, Public Citizen pushed for the gov- and advertising space within America’s parks, tion,” proves that of the 1,110 lawsuits in the ernment to help ensure greater disclosure in because to do so would dishonor and degrade past 10 years that the Chamber has been in- digital advertising. In a letter to the Federal these national treasures now and for future volved in, the Chamber’s legal filings support- Trade Commission (FTC), Public Citizen ex- generations. ed at least one Fortune 500 company almost horted the agency to strengthen oversight and Working with allies, Public Citizen delivered 60 percent of the time, but supported a small bring enforcement actions to stop the perva- more than 200,000 signatures opposing the business only 7 percent of the time. sive practice of hidden ads on Instagram, a proposed ad policy, with a particular focus on picture-sharing social media platform. the dangers of permitting alcohol ads in parks. Debunking myths about Instagram ads disguised as endorsements Despite the massive public outcry, on Dec. 28, “midnight regulations” lead consumers to believe that their favorite 2016, NPS Director Jonathan Jarvis finalized In July, Public Citizen issued a study con- celebrities are making enthusiastic product the policy, including the permission of part- cluding that regulations completed during endorsements, when in fact, those celebrities nering with alcohol companies. But NPS did the transition periods at the end of the past were paid and may not even use the touted remove a provision from the draft document two presidential administrations took more brand. Public Citizen’s research documented that would have permitted corporate logos on time to be developed than those during oth- more than 100 examples of posts made by ce- exhibits and waysides within parks. u

MEMBER HIGHLIGHT “We have long been supporters of the wonderful work done by Public Citizen. There are groups that try hard to do the right thing, but are so marginalized as to have almost no effect; others seem to lose sight of their true goals because they are so intent on gaining or maintaining influence. To our mind, Public Citizen represents the ideal of a group that sticks to its (our) best principles while continuing to be an important public voice in the fight for social justice. Public Citizen has always fought for things that matter, and while it is most important that each of us participates actively, in our own communities, to whatever extent we can, it is also imperative Jerome & Annie Hoffman that we do what we can to support larger and more influential groups, of which Public Citizen is a shining example.” 10 • Jan/Feb 2017 PUBLIC CITIZEN NEWS Standing Up to BigPharma

ne of Public Citizen’s hallmarks is which makes it a little easier for India to for corporate greed in 2016 was Mylan, Ostaying power; we push for policies continue to supply lifesaving affordable the pharmaceutical giant that became no- that benefit the public until we win. In generic medicines to the world. torious for hiking up the price of EpiPens, 2016, persistence paid off. First, the U.S. Another organizational hallmark is which millions of allergy sufferers carry Food and Drug Administration (FDA) standing up to companies that put the in case of a severe reaction to a bee sting, banned powdered gloves—18 years after profit over public safety. The poster child peanuts or other allergen. After jacking we first called for them to be removed up the price of a pair of EpiPens from $100 from the market. Second, the U.S. Oc- to more than $600, Mylan faced swift and cupational Safety and Health Adminis- unrelenting national outrage. tration (OSHA) beefed up its protection Public Citizen launched a petition call- of workers exposed to silica dust, which ing for the pharmaceutical company to Public Citizen had urged for years. (See reverse course, and the organization de- below.) Similarly, Public Citizen in 2016 livered more than 700,000 signatures continued its 15-year campaign to press to Mylan headquarters outside of Pitts- OSHA to lower its workplace beryllium burgh. Public Citizen also released re- limit from an outdated level set in 1971 search showing that Mylan’s EpiPen price and achieved victory in January 2017. in the United States was between three Public Citizen’s access to medicines and nine times higher than the price in group has long worked with partners other wealthy countries. Mylan respond- in developing countries, to help them ed to the outrage by offering discounts to improve health policies and save lives customers. Our demands for meaningful at home while defending against Big change at Mylan continues. Pharma bullying out of Washington. The focus on Mylan was part of Pub- This year, our work helped Colombia lic Citizen’s expanded emphasis on high significantly reduce the price of a lifesav- drug prices, which will continue into ing cancer medicine, and shame the U.S. 2017. Public Citizen is calling for solutions Senate Finance Committee for interfering ranging from a windfall profits tax on Big on behalf of Novartis. We helped Ecua- Pharma to empowering Medicare to ne- dor’s government begin taking competi- gotiate drug prices. Public Citizen used tive bids on medicines for the first time in In August, Public Citizen and other activists delivered research to advance other public health years. And we narrowed U.S. government more than 700,000 petition signatures to Mylan's initiatives in 2016, ranging from limits on corporate headquarters outside of Pittsburgh, Pa., opposition, driven by pharma lobbyists, demanding Mylan stop price gouging American medical residents’ work hours to access to a lifesaving provision of Indian law, consumers. Public Citizen file photo. to health care information. u

Win! Powdered gloves banned: In December, the U.S. Food Poll shows patients want limits on work hours for medical and Drug Administration (FDA), prompted in part by a 2011 residents: A national opinion poll commissioned by Public petition from Public Citizen, banned powdered surgical and Citizen and released in September showed that the vast medical examination gloves from the market because they majority of Americans favor restricting the work shifts pose unacceptable dangers to both patients and health care of medical residents to no more than 16 straight hours workers, and because safer alternatives exist. Now, health without sleep. The poll came as a national accrediting body care workers and patients will be spared life-threatening considered allowing fi rst-year residents to work up to 28 adverse reactions. Public Citizen fi rst petitioned for the ban hours straight – far more than the current 16-hour limit. in 1998. Industry favors are stripped from the 21st Century Cures Win! Workers get stronger silica protections: The U.S. Act: In December, Congress passed and the president signed Occupational Safety and Health Administration (OSHA) the 21st Century Cures Act. This gift to the pharmaceutical made history in March by updating workplace protections and medical device industries undermines rules that help to reduce illnesses and deaths related to crystalline silica ensure safe and eff ective medications and medical devices. dust. Public Citizen pushed for years for an updated However, because of the eff orts of Public Citizen and allies, standard. the industries did not receive all the goodies they had wanted. Our pressure helped eliminate provisions that Public hospitals end formula marketing: Nearly all of the would have increased medication prices and cost taxpayers largest public hospitals in the country have ended infant an estimated $12 billion over 10 years; encouraged hospitals

CONSUMER HEALTH & SAFETY CONSUMER HEALTH formula marketing, according to a Public Citizen study to overuse the newest antibiotics; and allowed medical released in April. device manufacturers to make changes to high-risk medical devices without oversight. County jails are ill-equipped to handle mentally ill inmates: A comprehensive national survey of staff in Study shows the need for greater vigilance of state medical county jails released in July by Public Citizen and the boards: For years, Public Citizen has pushed state medical Treatment Advocacy Center revealed that county jails boards to be more accountable in disciplining dangerous are unequipped to deal with mentally ill inmates. The doctors. A groundbreaking study by Public Citizen health study described challenges faced by county jail staff, researchers underscored the need for continued vigilance. as well as solutions including programs to prevent the Using data from the National Practitioner Data Bank, Public mentally ill from entering the criminal justice system Citizen researchers discovered that 70 percent of U.S. in the first place, the provision of adequate mental physicians who had engaged in sexual misconduct that led health treatment for seriously mentally ill inmates in to malpractice payments or sanctions by hospitals or other jails, and diversion of these inmates to treatment in the health care organizations were not disciplined by state community. medical boards for their unethical behavior. PUBLIC CITIZEN NEWS 11 • Jan/Feb 2017 Preserving Access to Courts onsumers rely on a variety of tools vidual consumers backing the proposal. tion institution. Cto hold corporations accountable for The CFPB is expected to finalize the rule Nursing home contracts are a third wrongdoing: for example, filing individ- in early 2017, although its fate in a Trump arena where arbitration clauses have ual lawsuits against a corporation, band- administration remains uncertain. harmed people. Public Citizen and oth- ing together as a group to sue and writing Students at predatory for-profit col- ers last year called on the Centers for online criticisms to warn others of bad leges also have been victimized by forced Medicare and Medicaid Services (CMS) to service or fraudulent behavior. In recent arbitration clauses embedded in enroll- prevent nursing homes from taking away years, corporations have tried to blunt the legal rights of their residents through these tools. Public Citizen has fought the use of forced arbitration. Such claus- back, working to preserve consumers’ es have blocked seniors and their loved access to the civil justice system and to ones from accessing the court system preserve their First Amendment right when they are victims of severe neglect, to criticize companies for poor prod- abuse, serious injury or death at a facility. ucts or service. In 2016, the organization In September 2016, CMS issued a rule achieved several key victories. that would block the use of forced arbi- A few of our achievements involve our tration in admission contracts, but in continuing effort to eliminate “forced ment paperwork. Many for-profit schools November, a federal judge in Mississippi arbitration” clauses from consumer con- target specific populations of students— blocked its implementation. Public Citi- tracts. Corporations routinely hide these articularly people of color, low-income zen will continue to push for it to be fully “rip-off clauses” in the fine print of take- individuals and veterans—using ques- implemented and enforced. In addition, it-or-leave-it contracts to block consum- tionable recruitment practices. Many of the U.S. Supreme Court is considering a ers from suing in court if they are victims these schools provide an inferior educa- case involving the use of forced arbitra- of hidden fees, fraud, or other illegal or tion with low-quality programs, few sup- tion clauses in powers of attorney signed abusive behavior. Instead, these clauses port services and abysmal graduation by family members of patients in nursing require consumers to file grievances and job placement rates. homes, and Public Citizen has submit- through corporate-friendly arbitration. In 2016, Public Citizen spearheaded an ted an amicus curiae brief supporting the In that private system, consumers gener- effort to pressure the U.S. Department of lower court’s decision that the arbitra- ally have no right to appeal. Education to curb the use of forced arbi- tion clauses at issue in that case are un- JUSTICE For several years, Public Citizen has tration clauses by colleges. In February, enforceable. led a coalition to persuade the Consumer Public Citizen submitted a citizen peti- On the online front, Public Citizen in Financial Protection Bureau (CFPB) to tion to the department asking it to bar 2016 continued to protect the right of curb the use of arbitration clauses in fi- the use of forced arbitration by colleges consumers to criticize companies on- nancial contracts. In April 2016, Public that receive federal funding. Public Citi- line. A key victory came when Congress Citizen wrote a letter joined by 163 allies zen then submitted extensive comments passed—and President Barack Obama calling on the agency to restrict forced and suggestions on the department’s signed into law—the Consumer Review arbitration in consumer contracts. The subsequent proposed rule. In October, Fairness Act. The act voids “non-dis- CFPB responded in May by proposing to the department finalized a rule prohibit- paragement clauses,” which often are prohibit forced arbitration clauses that ing colleges that participate in the federal tucked into the fine print of the terms prevent consumers from participating Direct Loan program from using forced of an agreement to do business with a in class-action lawsuits in court—a cru- arbitration clauses in enrollment forms. company and prohibit customers from cial step forward. During the rule’s pub- The new rule is a game-changer for thou- criticizing the company online. The leg- lic comment period, Public Citizen and sands of students who will finally have a islation also voids penalties imposed by a allied groups flooded the agency with realistic opportunity to have their day in company on customers who post critical more than 100,000 comments from indi- court if defrauded by their higher educa- reviews. u

Appellate court reverses decision shielding complaints Public Citizen wins precedent-setting Yelp case: A Texas about immigration judges: More than three years after state court dismissed a lawsuit against a couple who was Public Citizen filed a public records lawsuit on behalf of being sued for criticizing a Dallas pet-sitting business on an immigration group seeking information on alleged Yelp. The case is believed to be the first involving a non- misconduct by immigration judges, an appellate court disparagement clause in a consumer contract in which a reversed a lower court decision ruling against us. The court has held the clause unenforceable. Companies are U.S. Court of Appeals for the District of Columbia Circuit increasingly using such clauses—which forbid the consumer disagreed with the government’s contention that the from posting criticisms online—to silence dissatisfied privacy interests of immigration judges categorically consumers. Public Citizen represented the couple, arguing outweigh the public’s interest on disclosure, particularly that they had a First Amendment right to criticize the when the complaints concern on-the-bench conduct and company online. repeat offender judges. The court sent the case back to the district court with instructions that the government make Win! Preserving class actions: In Campbell v. Ewald, the a more specific showing. U.S. Supreme Court rejected a corporate push to block the use of class actions for wrongdoing that inflicts small losses Win! U.S. Supreme Court upholds class-action suit against on large numbers of people. In this case, consumers sued a Tyson Foods: In a victory benefiting thousands of workers, company that sent thousands of marketing text messages the U.S. Supreme Court in March ruled 6-2 in Tyson Foods without their consent. The company offered the named Inc. v. Bouaphakeo that Tyson Foods workers were entitled plaintiff $1,503 to settle the case. Although the plaintiff to litigate, as a class, their claims for lost wages due to rejected the offer, the company argued that the case should violations of wage and hour laws. The company had argued be dismissed because of the offer. In January, the Supreme that the workers should not have been able to join together Court held that a defendant in a class-action lawsuit cannot in a single lawsuit because each worker’s claimed loss avoid liability to an entire class by offering to pay damages was different. Public Citizen served as co-counsel for the only to the named plaintiff. Public Citizen served as co- workers in the Supreme Court. counsel for the plaintiff in the Supreme Court.

12 • Jan/Feb 2017 PUBLIC CITIZEN NEWS

Public Citizen helped organize a protest at the D.C. Public Service Commission in 2016 over a proposal by the energy giant Exelon to take over Pepco, the local utility. Public Citizen file photo. Protecting Consumers Against Predatory Energy Corporations

n 2016, Public Citizen challenged big was authorized by Congress in 1978 Addressing climate change Ienergy corporations in a number of but never created. Among the duties Last year was the hottest year on record arenas, making significant gains. of such an office would be to provide globally. With climate change continuing In Texas, Public Citizen helped ensure financial compensation to public interest to pose an existential threat to the planet, that electricity rates will decrease for intervenors. Public Citizen worked on multiple fronts all residential Austin customers. When Another agency that is tough to navigate to move the country away from fossil Austin Energy, the city-owned electric for consumers is the U.S. Commodity fuels and toward renewable energy. utility, went through a process to adjust Futures Trading Commission (CFTC). In Texas, Public Citizen ramped up rates earlier this year, Public Citizen’s Public Citizen’s Energy Program director, its campaign to ensure that when the Texas office made sure that rate Tyson Slocum, is a member of the CFTC’s Panama Canal expansion sends more decreases will extend to all residential Energy and Environmental Markets traffic into the Port of Houston, it doesn’t customers and that Austin Energy Advisory Committee, and watchdogs the also increase diesel emissions at the port develops a financial plan to retire at least agency from that perch. through additional truck and rail traffic. one unit of the coal-fired Fayette Power In February, The New York Times As part of the campaign, Public Citizen Project by the end of 2022. covered his successful efforts to blow released a poll showing that air pollution The outcome of another initiative the whistle on and stop an effort by is a serious problem for Houstonians and bodes well for Illinois energy consumers. the lone Republican commissioner to they support emissions reductions. In January 2016, the Federal Energy collude with Wall Street and the oil Public Citizen in 2016 continued Regulatory Commission (FERC) ruled industry to undermine critical Dodd- to promote the U.S. Environmental that the Midcontinent Independent Frank consumer protections in energy Protection Agency’s (EPA) Clean Power System Operator (MISO) rules for the markets, called position limits. Position Plan, the first-ever federal rule curbing 2016-17 power auction were not just limits stop a single or small group of carbon pollution from power plants. In and reasonable. This came after Public energy traders from controlling too September, Public Citizen filed a brief in Citizen filed a complaint alleging that much of a given market, and they are support of the EPA with the U.S. Court of the auction for 2015-16 violated the critical to protecting consumers from Appeals for the D.C. Circuit, which heard Federal Power Act’s requirement that efforts by speculators to corner a market an industry challenge to the plan. Because all electric rates be just and reasonable, and drive up prices. Texas refused to adopt a plan to implement because Houston-based Dynegy, Inc. Finally, Public Citizen worked on the the new federal rules, our Texas office has had manipulated the capacity auction. A state and federal front to stop the state been hosting meetings with more than a future order will address Public Citizen’s of New York from providing $8 billion dozen other groups to develop strategies allegations surrounding the 2015-16 in ratepayer-funded payments to three to comply with the Clean Power Plan auction; Illinois residents could see a of the state’s old nuclear reactors via tax absent state leadership. refund of tens of millions of dollars. credits. Public Citizen also participated in a Because FERC is difficult to navigate, The unprecedented bailout would coalition demanding the U.S. Department especially for individuals, in March, prop up a financially unsustainable of Justice investigate Exxon’s climate Public Citizen led a coalition of more industry and divert resources away from science cover-up, and we led a coalition than 30 consumer and environmental investments in renewable energy and letter with 30 other groups to Fox News,

ENERGY & ENVIRONMENTENERGY organizations in petitioning the energy efficiency. urging it to use the summer management agency to create and fund an Office Public Citizen is challenging the shakeup as an opportunity to start of Public Participation. Such an office bailout at the FERC. reporting accurately on climate change. u

Watchdogging the oil and gas industry Protecting people from nuclear waste When it comes to regulating the oil and gas industry, Public Citizen, along with three other leading national other oil and gas producing states outshine Texas, a Public and Texas groups, in October called on the U.S. Nuclear Citizen study released in August shows. Public Citizen Regulatory Commission to terminate its review of the license looked at the best practices of eight states that produce oil application for a controversial nuclear waste dump. Waste and gas and are facing similar issues to Texas in terms of Control Specialists wants to build an interim high-level seismic activity and water contamination. Public Citizen nuclear waste dump in Andrews County, West Texas, is calling for the Texas agency that oversees the industry that would require up to 40,000 metric tons of highly to undergo significant changes in structure, transparency, dangerous nuclear waste to be shipped by rail to Texas funding, inspections and environmental protection. from throughout the country. PUBLIC CITIZEN NEWS 13 • Jan/Feb 2017

Delegates protesting the TPP at the Democratic National Convention in Philadelphia in July 2016. Credit: exposethetpp.org GLOBALIZATION & TRADE Victory: Stopping the TPP in 2016 hroughout 2016, Public Citizen’s public education, grassroots organizing Laying out a positive trade agenda TGlobal Trade Watch focused relent- and lobbying. Public Citizen organized In September, Lori Wallach, director lessly on stopping the Trans-Pacific dozens of local meetings with members of Public Citizen’s Global Trade Watch, Partnership (TPP). Ultimately, we were of Congress, rallies and press events worked with Jared Bernstein, former successful (see related story, page 1). while also preparing the research and chief economist for Vice President Joe Staffers worked with allies to inform the campaigning materials used nationwide. Biden, to publish a booklet laying out U.S. public about the how the final deal But that’s not all our trade program did progressive “rules of the road” for trade could affect their daily lives and some of in 2016. and globalization and write a cover story our most pressing global challenges from for The American Prospect. Public Citizen climate change to income inequality. Highlighting dangers of the Investor- has released a short video on this agen- Despite the Obama administration’s State Dispute Settlement system da, available at tradewatch.org. intense effort, campaigners ensured Staffers helped to raise mainstream that a majority in Congress opposed the concern about Investor-State Dispute Stalling a dangerous European pact deal from the day it was signed in Feb- Settlement (ISDS), a previously little- We continued to support European ruary 2016. In November 2016, the White known provision in corporate-rigged allies’ efforts to derail negotiations for House finally admitted that there was “trade” deals. This system empowers the Transatlantic Trade and Investment insufficient support in the U.S. Congress multinational companies to sue the U.S. Partnership (TTIP), a pact modeled af- to submit the agreement for a vote. This government before a panel of three cor- ter the TPP. TTIP faces growing politi- followed upon an unprecedented focus porate lawyers to obtain unlimited sums cal backlash in key European countries, during the 2016 presidential election of money from taxpayers when a corpo- with significant public opposition to its cycle by Democratic and Republican can- ration believes U.S. laws or policies vio- inclusion of the ISDS regime. didates alike about the threats posed by late their special foreign investor privi- the TPP and the need to revisit the U.S. leges. Public Citizen intensified a public Monitoring results of trade agreement model. education campaign through social me- past “trade” deals No single politician killed the TPP. The dia and a website, ISDScorporateattacks. In 2016, Public Citizen’s Global Trade TPP died under the weight of its own org. Watch continued to track the outcomes terms, thanks to millions of Americans Collaborating with the Columbia Law of past pacts and produced economic educating their colleagues, neighbors School’s Center for Sustainable Invest- and analytical materials for civil society and friends about the deal’s dire threats ment, we organized a letter to Congress and policymaker allies. and organizing a mass movement against ISDS, signed by more than 200 Among the key outcomes of this work to hold Congress accountable. Well preeminent legal and economics schol- were regular press releases tracking the before Donald Trump’s election, the ars, including President Barack Obama’s failings of the free trade agreements presidential primary campaign and the Harvard law mentor Lawrence Tribe, (FTA) with Colombia, Peru, Korea and halls of Congress resounded with the former California Supreme Court Justice Panama that helped prove the North American public’s rejection of trade Cruz Reynoso and Nobel-winning econ- American Free Trade Agreement (NAF- proposals that not only failed to live up to omist Joseph Stiglitz. That letter was TA) model was a failure that should not the proponents’ promises over the past released in a press event with U.S. Sen. be expanded via the TPP. 20 years, but threatened further damage Elizabeth Warren (D-Mass.). The group also maintained the only to working people and the environment. Public Citizen’s Global Trade Watch complete summary and tracking of Public Citizen helped organize this also created a live web feature that allows all U.S. FTA investor-state cases; and powerful opposition. people to find the firms in their state and launched new web features providing To derail the TPP, Public Citizen community that could attack domestic state-level breakdowns of the outcomes helped to build a broad and diverse public interest policies were pacts like of past agreements on jobs, wages, agri- coalition that engaged in an extensive the TPP implemented. culture and more. u

“I support Public Citizen because it is one of the few organizations that focuses on the core principle of democracy: One person, one vote. Campaign finance reform, fair and representative districting, automatic voter registration, and a constitutional amendment to make the presidency based on the total popular vote are all practical steps toward equal representation that Public Citizen supports.” – Jay McClelland, Public Citizen member 14 • Jan/Feb 2017 PUBLIC CITIZEN NEWS 2016 LEADERSHIP GIFTS Public Citizen Salutes Our 2016 Major Donors (Oct. 1, 2015-Sept. 30, 2016)

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