Bridgewater Review Volume 2 | Issue 1 Article 5 Oct-1983 The onsC umer Movement in the United States Kathleen Browne Ittig Bridgewater State College Recommended Citation Ittig, Kathleen Browne (1983). The onC sumer Movement in the United States. Bridgewater Review, 2(1), 7-11. Available at: http://vc.bridgew.edu/br_rev/vol2/iss1/5 This item is available as part of Virtual Commons, the open-access institutional repository of Bridgewater State University, Bridgewater, Massachusetts. ~ . HE CONSUMER MOVEMENT\\l ~nf1(k4_ In The United States hat ever happened to the consumer of the Attorney General have been W movement in the United States? In ineffective in getting convictions in most stark contrast to the high visibility and cases. The weaknesses of government widespread support enjoyed by the bureaucracy, not to mention the well­ consumer movement during the last two documented industry bias in most decades, overt concern for consumer government agencies, seems to work protection seems to have disappeared since continually to the disadvantage of the election of President Ronald Reagan. consumers. To answer this question it is necessary first to identify the market conditions that abor, as well, has reacted to oligopoly currently dominate the U. S. economy and L by organizing workers into unions so second to review the history of the that union members are effectively consumer movement as it has evolved in protected on the job and in the face of a this country during the last eighty years. rising cost of living. Once labor had While most modern economic theory is established its own power base it showed little interest in controlling oligopoly or in based largely on the ideal of the competitive economy, in actuality the U. S. economy is recognizing its dual role as consumer­ producer. increasingly moving toward domination by oligopolies. Oligopoly is the market Consumers, then, are the least powerful condition in which an industry is dominated segment of the national economy. by relatively few firms in matters of price and Consumers have been the least organized output. Some of the effects of oligopoly are sector in the economy and thus easily clearly to the disadvantage of consumers. esides controlling our oligopolistic dominated by the other sectors. Because of Some economists argue that oligopoly B economy, most industries in this its lack of power and inability to organize fosters non-price competition and that this country are well organized and well effectively, the consumer movement got a results in economic waste. Economist represented inside and outside local, state late start in this country and experienced Almarin Phillips has written in the Journal of and federal agencies. Of course, this uneven growth. Since its initial phase that Economic Literature (December, 1971) that concentration of power has not been began in 1890, the consumer movement economic "waste appears in the use of too ignored by other sectors in the economy. seems to be following a cyclical pattern of many resources in the production of a Both government and labor have made evolution in which periods of consumer multiplicity of differentiated products, in attempts to halt or at least countervail this influence on the economy were followed by excessive sales promotion, in high trend. For example the federal government periods where the American public distribution costs, in excess capacity and in enacted anti-trust legislation but both the appeared tired of pushing for quality, safety slow rates of innovation." Federal Trade Commission and the Office and reform. 7 I)ecent ORT LOWER FOOD THE INl11AL PHASE Hoosinq The Early 19005 SUMER PRICES NOW! .~ sA. Riqht NCY uring this period there was a great interest in a variety of consumer D protection laws and regulations, including weights and measures standards, usury laws, rudimentary pure food and drug regulations, meat inspection laws and laws against misbranding. III .S The initial pressure for these laws, ~ however did not come from consumers but I from b~siness interests attempting to III <: protect themselves and their industries .:! from the escalating bad publicity being &I ===:::::=;;,~"_II~fl!lm~ generated by less scrupulous competitors. I':: A look at some of the events surrounding the passage of the Pure Food and Drug Act Pure Food and Drug Bill many citizen institutionalize consumer representation of 1906 provides some insight into forces groups, although not primarily consumer and passage of a stronger Pure Food and operating to improve consumer welfare at organizations, became involved. These Drug Act. the beginning of this century. In this period, groups included the Federated Women's Apart from government activities there the advent of both refrigeration and new Clubs of America and the National were several other significant developments chemical preservatives fostered the Consumers League. Belying what its name that took place in the private sectorthat had development of a centralized food industry might imply and despite its support of such a positive influence on consumer welfare. and a national food distribution system. As pro-consumer legislation, the main thrust of Consumers Research was formed in 1929 the industry expanded there were the National Consumers League was by F. J. Schlink and Stuart Chase following increasing complaints of adulterated foods. improving the working conditions and wage the publication of their book, Your Money's The most common problem seemed to be policies of the garment and food industries. Worth, which attacked advertising and the use of chemicals to make rancid food high-pressure salesmanship and called for salable in interstate commerce. State scientific testing and product standards to regulations governing the local food supply s a result of the passage of the Pure provide consumers with technical became increasingly ineffective in the face of Food and Drug Act, however, information they needed to make decisions. the burgeoning national food market. Initial A several consumer organizations did Schlink and Chase also formed Consumers pressure for the law came from organized form in an attempt to see that the law was Research to carry out this needed testing farmers interested in protecting their enforced, and to lobby for additional work. Then in 1935 after a bitter struggle reputations as quality food producers. consumer legislation. These short-lived between Consumers Research and its However, the most publicity was generated organizations consisted mainly of employees during which the Consumers by the chief chemist of the U.S. Department housewives; in Chicago, for example, the Research management refused to of Agriculture, Harvey W. Wiley, and his group was called the Housewives League. acknowledge a National Labor Relations "poison squad" through a series of Their primary concern was the "sanitary Board or engage in collective bargaining, a experiments designed to show the effects of conditions of food stores" but their concern group of subscribers broke off and formed a preservatives in the diet on human expanded to include excessive pricing new organization called Consumers Union. development. In addition, the timely practices. Their activities in 1912 to break Consumers Union concerned itself with publication of Upton Sinclair's expose on the high price of storage eggs provides an both consumer and related social problems. the unhealthy conditions in the meat example of their method ofaction. To break In three years it was bigger than Consumers packing plants, The Jungle, served as the the price of storage eggs which were being Research and was able to help other new final catalyst for the passage of the bill. sold as fresh at thirty-four cents a dozen, consumer organizations including the Milk Throughout the campaign for passage of the they sold eggs on street corners at ten cents Consumers Protective Commmittee of below the prevailing price. Interest in consumer issues dissipated during the period that included World War I, the soaring inflation of the twenties, and the Great Depression. Family energy was focused first on the war effort and subsequently on economic survival. THE SECOND CONSUMER MOVEMENT hirty years after the birth of the consumer movement, it experienced T a resurgence that was fueled by the New Deal. The policies of President . Franklin D. Roosevelt included the first federal govenment attempts to Consumer rights crusader Ralph Nader 8 New York, High Cost of Living 1 The Right to Safety· econdly, he required twenty-two Conferences, and the Consumers National to be protected against the marketing agency heads whose actions could Federation, an information clearinghouse of goods which are hazardous to Saffect consumer welfare to appoint a on consumer issues. health of life; special assistant "to insure adequate and 2 The Right to Be Informed· effective attention to consumer interests in to be protected against fraudulent, the work of the agency...." onsumer groups oriented to local deceitful, or grossly misleading The Consumer Advisory Council was problems were also organized during information, advertising, labeling or C this period. Such an organization other practices, and to be given the assigned the task of translating Kennedy's originated in Detroit in 1935 in response to facts he needs to make an informed consumer message into action. To do this the rising price of meat. Housewives choice; they selected six topics mentioned in the message for priority. These were: organized a meat-buying strike which 3 The Right to Choose' involved picketing to demand a twenty to be assured, wherever possible, 1 Consumer' standards, grades and percent cut in meat prices. Although their access to a variety of products and labels. twenty percent demand was not met, meat services at competitive prices; and in those industries where competition is 2 Two-way flow of information and supplies increased, prices stabilized, and opinion between government and the idea spread to other major cities. not workable and government regulation is substituted, an assurance consumer. The growing influence of the consumer of satisfactory quality and service at fair 3 Effective consumer representa­ movement was temporarily stunted by prices.