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This is not the time to let our Consumer Protection Laws be eroded

Posted: November 09, 2011

by Jeffrey Freedman, senior partner, Jeffrey Freedman Attorneys at Law

Prior to the Consumer Protection Act (CPA) of 1968, consumers were at the mercy of manufacturers, advertisers, predatory lenders, and credit card issuers. Since then the Federal government and individual states have protected American citizens by regulating the safety, quality, performance, repairability, truthfulness and costs of goods, services, and credit agreements. Now, however, those protections are being undermined by corporations with deep pockets who are lobbying to have regulators consider their needs ahead of the needs of the average consumer.

Enforcement of consumer protection laws has become almost impossible as agencies such as the Consumer Product Safety Commission (CPSC), the Federal Trade Commission’s Bureau of Consumer Protection, and the Food and Drug Administration, have been gutted by budget cuts.

We live in an extremely competitive, globalized economy. To see that we should be more vigilant -- not less -- we need look no further than the 2007 recall of 25 million toys manufactured in China which were laced with lead. You may also remember the recent turmoil over the drug Vioxx. Vioxx was marketed heavily to arthritis sufferers even though its developer, Merck, knew that clinical trials proved the drug had lethal side effects. The sub-prime mortgage crisis resulted from poor enforcement of lending laws that would have stopped unscrupulous lenders from enticing homebuyers into loans that were beyond their means. And today, many consumer contracts include forced arbitration clauses preventing consumers from filing lawsuits if they are injured as the result of a defective product.

Instead of easing up on consumer protection regulations, America should be clamping down. Yet, according to the U.S. PIRG, a nonprofit organization that advocates for consumer protection, the CPSC (which is charged with ensuring the safety of consumer goods) has half the staff it had 20 years ago, and its funding is at an all-time low. The National Chamber of Commerce is lobbying those in political office to erode federal and state consumer protection regulations under the guise of “ensuring that businesses receive the fair, efficient, and consistent justice system they deserve.”

Consumer protection laws are common throughout the world with good reason: consumers work hard for their money and are entitled to safe cars, reliable products, and truthfulness in advertising and lending. Average middle-class families cannot compete with well-paid lobbyists to protect their interests in Washington and state capitals. Our law firm has taken an active role advocating for consumer interests. We believe America’s consumers deserve a system of consumer justice based on fairness, equity and honesty. Some things are worth paying for -- including product safety, honest lending, and fair debt collection practices. Congress should reinstate funding for agencies such as the CPSC and the FDA and stop listening to lobbyists who work for corporations that would put profit ahead of safety for the people who purchase their products.

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