Sunday, January 4, 2009

Give Some Protection to the American Consumer

A New York Times editorial suggests: "The time has come to give the American consumer a much stronger voice in Washington. President-elect Barack Obama has already named what amounts to an energy and environmental czar in the White House, and America’s beleaguered consumers deserve no less." The editorial implores that: "Mr. Obama should restore the White House Office of Consumer Affairs, which vanished during the Clinton years, and appoint a director who has both the president’s ear and the authority to rebuild the consumer protection agencies that were undercut or hollowed out by the fiercely anti-regulatory Bush administration." The Times recognizes: "There is no shortage of agencies ostensibly designed to protect consumers. But without an emergency like killer spinach or lead in children’s toys, the Bush administration has mostly failed to hear customers’ complaints. The consumer safety net is simply far too weak." Under Bush: "The Food and Drug Administration has suffered cutbacks in expert personnel, and still relies too heavily on industry to police itself. Credit-card holders who have been subject to all kinds of Dickensian tricks and traps were finally told by the Federal Reserve that relief is in sight — in 2011. Not so long ago, there was only one official toy tester at the Consumer Product Safety Commission, and oversight generally was so weak that Congress was forced to step in with new protections, which still could be strengthened." The Times places it's hopes for reform at the feet of the incoming administration and recognizes: "It will be up to the Obama administration to bring these agencies back to life. In part this means restoring the morale of government workers who have too often been stymied by the anti-regulators at the top. It will also mean stronger consumer protection policies and hiring more skilled people. It will mean giving one official responsibility for coordinating the entire apparatus." Under the leadership of the Johnson and Carter Administrations, Ester Peterson produced admirable results "during about eight years in office (Ms Peterson) pushed for then-radical ideas like nutritional labeling on food and truth in advertising." Unfortunately a sea change occurred under Reagan's watch when the "anti-government era began, (and) the consumer protection job steadily lost clout until it was shuttered in the late 1990s." The recently concluded presidential campaign included Mr. Obama's promise to consumers "that he would help them get a fairer deal." The Times editorial reminds Mr. Obama: "As the victims of lead toys and predatory lenders can attest, they certainly need one. Restoring the Office of Consumer Affairs and appointing a director as strong and capable as Mrs. Peterson would be an encouraging first step."

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