45YEARS NEWS Vol. 36, No. 3 • May/June 2016 Investors Call Answering the Call for Democracy on Vanguard to By Angela Bradbery We called. You came. Support Political And by the time Democracy Awakening, a three-day mass Spending mobilization in mid-April, ended, thousands from across the coun- Disclosure try had taken the movement for a stronger, better democracy to the By Rachel Curley next level. This proxy season, sharehold- People poured into the na- ers are turning up the heat on tion’s capital for the historic con- the major mutual fund company vergence from all corners of the Vanguard, calling on it to support country — from California and political spending disclosure at New Jersey, Michigan and Texas, the thousands of companies in Iowa and Florida. They chanted, which it invests. marched, lobbied and even were As the largest manager of re- arrested on the Capitol steps. tirement savings in the country, They came to deliver a message Vanguard should be leading the to policymakers: Our democracy way in supporting sharehold- is being stripped away and needs Photo courtesy of Rich Kessler ers who are calling for big com- to be fixed. Robert Weissman, president of Public Citizen, rallies Democracy Awakening supporters panies to disclose their political on April 18 before marching to the Capitol and engaging in civil disobedience. Held April 16-18, Democracy spending, Public Citizen main- Awakening was organized by tains. But instead, Vanguard Public Citizen, with help from NAACP, People For the American felt passion of people from either abstains from voting or groups ranging from the Com- Way and Student Debt Crisis. In around the country,” said Rob- votes against disclosure resolu- munications Workers of America, all, more than 300 groups partici- ert Weissman, president of Pub- tions. Democracy Initiative, Every Voice pated. lic Citizen, who was among the Public Citizen is working with Center and the Franciscan Ac- “It is truly awe-inspiring to hundreds arrested as part of the tion Network to Greenpeace, the see the commitment and heart- see Rally, page 8 see Vanguard, page 13 Proposed CFPB Rule Could Minimize Rip-Off Clauses By Don Owens that block consumers from tak- money back when companies for such a rule since the CFPB When you get a credit card, ing corporations to court when tack on illegal fees or hidden opened its doors in 2011. take out a loan or open a bank they break the law. These con- charges that are too small for “Over the past decade, large account, you are likely signing tract terms force consumers to consumers to challenge on their corporations have converted the away your legal rights without use industry-friendly arbitration own but add up to enormous cor- fine print in standard form and realizing it. But the Consumer systems instead of courts. Worst porate profits. consumer contracts into a way to Financial Protection Bureau of all, they prevent consumers Public Citizen helped win the escape liability for wrongdoing,” (CFPB) is working to restore your from joining together in class ac- provision in the Dodd-Frank Act said Robert Weissman, presi- rights. tions, making it practically im- financial reform legislation that dent of Public Citizen. “Compa- The agency unveiled a pro- possible to bring cases involving gives the CFPB the authority to nies have discovered that these posal in May that would dramati- low-dollar scams. address forced arbitration provi- rip-off clauses let them commit cally curtail the use of take-it-or- The rule would allow consum- sions, and the organization has leave-it terms in form contracts ers to join together to get their been at the forefront of the push see Rip Off, page 16 INSIDE After 18 years, the powdered gloves are finally off, page 4 ADDRESS SERVICE REQUESTED Firefighters’ rights violated when police searched controlled substance database, page 5 May/June 2016 2 May/June 2016 PUBLIC CITIZEN NEWS IN THIS ISSUE Vol. 36, No. 3 Get to Know Public Citizen An ongoing series profiling Public Citizen leaders and staffers Democracy Cathleen Gallagh- private foundation grant proposals, but I actu- Answering the call for democracy ......................1 er, Public Citizen’s ally work more closely with program staff than foundation officer, with my development counterparts by keeping Globalization and trade is one of the rare up to date on what’s going on in the field from and elusive Wash- behind the scenes. That is to say, a big part of U.S. trade deficit doubled under Korea pact .....10 ington, D.C., area my job is knowing just about everything that is natives. She grew going on at Public Citizen — and there’s a lot! — Litigation up in Cheverly, and distilling and communicating that informa- U.S. Supreme Court upholds class-action suit .....5 a small town in tion to our funders. Public Citizen is working Prince George’s for consumers on a wide array of “wonky” Firefighters’ rights violated when police searched controlled substance database ...........................5 County, Md., issues, some of which are quite technical, so I right across D.C.- need to be able to translate them into terms our Maryland border. funders can relate to. It can be a lot to juggle at Health and safety There, Gallagher first learned the importance of times, but I wouldn’t have it any other way! After 18 years, the powdered gloves are off ....... 4 civic engagement. From a very young age, she I also should mention that Public Citizen does OSHA moves to protect workers from silica ....... 4 helped her mother distribute leaflets and knock not take any corporate (including corporate on doors for political campaigns and clubs foundations) or government funding — which Pharmaceutical industry continues to defraud federal, state governments ................................7 around town. makes us a rarity among even public advocacy Gallagher attended Oberlin College in Ohio, groups. I’m proud to work for an organization Public hospitals end formula marketing ...........10 whose recruitment slogan was, “Think one that has taken such a strong moral stance. person can change the world? So do we.” — a Energy sentiment that resonates with many of Gallagh- Q: What do you find most rewarding about er’s Public Citizen colleagues. She joined Public your work? Public Citizen kills industry-backed report ..........6 Citizen nearly three years ago and just finished GALLAGHER: Because I support all program her first year as a part-time graduate student at departments, I follow everything, and I mean Government and financial reform George Washington University, going to classes EVERYTHING, that Public Citizen does — pre- Investors call on Vanguard to support political at night to get a Masters of Public Administra- scription drug safety at the Health Research spending disclosure ..........................................1 tion degree. Group, Global Trade Watch’s fight for equitable Proposed CFPB rule could minimize trade policies, Congress Watch’s efforts to keep rip-off clauses ...................................................1 Q: What brought you to Public Citizen? the federal government honest, the Energy Pro- Bill could expose insider trading on the Hill ......11 GALLAGHER: In college, my driving academic gram’s advocacy for clean, sustainable energy interests were centered abroad. I focused on — I could go on and on. Making sure they have Slowing the Wall Street revolving door ............ 12 modern Chinese history, language and politics, the support and resources to do what needs SEC nominees blocked by concerns over which included a stint studying abroad in Bei- to get done is reward enough! I am constantly political spending disclosure ........................... 13 jing. I still enjoy language studies and work on inspired by the depth and breadth of what my my Chinese skills. But after graduating, I found colleagues do every day. Other my interests increasingly centered on reform efforts closer to home — particularly on the dis- Q: What do you do outside of work? Get to Know Public Citizen ................................2 turbing trend of Congress and the courts plac- GALLAGHER: I like to keep myself as busy President’s View ...............................................3 ing the rights of corporations over the rights as possible! When I’m not at work or doing Public Citizen @45 ...........................................11 of people. (I’m referring to Citizens United, in graduate school work, you can find me outside Public Citizen in Your State ............................. 12 particular, but also subsequent rulings in Mc- running around or at the gym — I’m training In the Spotlight ..............................................14 Cutcheon v. FEC and Hobby Lobby). I jumped at for an obstacle course race in the fall — the the chance to get involved at Public Citizen, an sort of military style thing where you jump Public Citizen Crossword ................................ 15 organization that has for so long championed over hurdles, under fences, and get absolutely Public Citizen Recommends ........................... 15 issues that I care deeply about. covered in mud. I am looking forward to hitting the hiking trails around D.C. and Virginia on Q: What do you do at Public Citizen? the weekends now that the weather has gotten Connect with Public Citizen online! GALLAGHER: I’m a part of the team in the nicer. I also am an avid knitter. development department working primarily on — Compiled by Karilyn Gower About the Contributors Dr. Sammy Almashat, health researcher Public Citizen is a national non- President profit membership organization based Robert Weissman Angela Bradbery, communications director in Washington, D.C. Since its founding by Ralph Nader in 1971, Public Citizen Executive Vice President Margrete Strand Rangnes Rachel Curley, democracy associate has fought for corporate and govern- ment accountability to guarantee the Public Citizen Inc. Board of Directors individual’s right to safe products, a Jason Adkins (chair), Joan Claybrook, Andrew S. Friedman, Karilyn Gower, press officer healthy environment and workplace, Danny Goldberg, Jim Hightower, Joy Howell, Shannon Liss-Riordan, fair trade, and clean and safe energy sources.