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Corporate Accountability

CFC exposes unfair business practices and fights for justice in the marketplace in the face of big business efforts to maximize profits at the consumer's expense.

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Bills to Watch
CFC is Sponsoring AB 2393 - Private Post-Secondary Proprietary School Reform - On Gov's Desk!
AB 2393 insures that a private post-secondary proprietary school that reports or disseminates information on student success, job placement rates or graduates’ salaries in any apprenticeable occupation, bases that information on the standards for job duties and mastery of job training curriculum that the California Division of Apprenticeship Standards has developed.
CFC Supports SB 933 (Oropeza) - Debit Card Surcharges
SB 933 would prohibit retailers from imposing a surcharge on consumers who use their debit cards to make a purchase.
CFC Supports SB 885 (Corbett) - Gift Certificate Redemption
SB 885 would allow consumers to redeem the remaining value of their gift card if the cash value is up to $20.
CFC Supports SB 1264 (Leno) - Commercial Airline Passenger Rights
SB 1264 would provide protections for passengers who are forced to remain on a plane for more than two hours by requiring airlines to provide water, food, fresh air, and functioning restrooms.

CFC Articles
Toyata/NUMMI Blue Ribbon Commission White Paper
A white paper on the NUMMI plant closing was recently prepared by Professor Harley Shaiken from the University of California, Berkeley entitled "Commitment Is a Two-Way Street: Toyota, California, and NUMMI".
Insurance-rate-hike foes can recoup legal fees
by Bob Egelko, Chronicle Staff WriterSan Francisco Chronicle
January 5th, 2010
Consumer groups that successfully challenge insurance rate increases can recoup their legal fees from the insurers, even when the companies drop their requests or agree to a compromise, a state appeals court has ruled.
CFC to Governor: Sign SB 340 - Restrict Deceptive Marketing of Product Subscriptions
by Consumer Federation of California
October 5th, 2009
Consumers deserve to know the terms and conditions of any product advertisement, and should have the information they need to terminate an automatically renewing subscription. SB 340 (Lee) would help restrict the deceptive marketing of product subscriptions.
CFC to Governor: Veto AB 1200 - Increasing Insurance Industry Profits at Consumer Expense
by Consumer Federation of California
September 17th, 2009
AB 1200 is insurance-industry sponsored legislation designed to increase the profits of insurance industry at the expense of the policy holder. We urge you to veto this anti-consumer bill.

CFC Editorials
PG&E Customers Killed Prop 16
by Richard Holober, CFC Executive DirectorCalifornia Progress Report
PG&E spent $46 million of its ratepayer dollars on Prop 16 to make sure our electric rates remain high, without asking the consent of its ratepayers.
California Needs The FCC To Restore The Fairness Doctrine
by Richard Holober, Consumer Federation of California and Roy Ulrich, California Tax Reform AssociationHuffington Post
May 6th, 2010
...the effect of broadcasters' refusal to provide under-funded campaigns free response time since the repeal of the Fairness Doctrine for ballot measures...has been to increase the amount of one-sided information voters receive before entering the voting booth.
A 2009 Consumer Review, New Laws Going into Effect, and the Challenge Ahead
by Zack Kaldveer, Consumer Federation of CaliforniaCalifornia Progress Report
January 4th, 2010
In addition to reforming our pay-to-play campaign finance system, we progressives must redouble our efforts if we expect to pose any kind of challenge to the moneyed interests that dominate the state capitol.
Schwarzenegger Receives Failing Grade from Consumer Rights Organization
by Richard Holober, Executive Director, Consumer Federation of CaliforniaCalifornia Progress Report
October 13th, 2009
Governor Schwarzenegger's final verdict on a host of critical consumer protection bills this past weekend left consumer advocates disappointed. Of the 14 bills identified by the Consumer Federation of California (CFC) as most important, in only six instances did the Governor take the side of the consumer.

CFC in the News
State bill aims to halt sale of booze at self-checkout stands
by Michael GardnerSan Diego Union Tribune
August 16th, 2010
A move to ban alcohol sales at market self-checkout counters in California is being fueled by two San Diego studies that suggest they make it easier for underaged buyers. Legislation to enact such a ban could come up on the state Senate floor as early as Wednesday.
Colleges Weigh In on Rules
by Jennifer Epstein and Doug LedermanInside Higher Ed
August 4th, 2010
In their shared comment submission, Consumer Federation of California, the Legal Aid Foundation of Los Angeles and Margaret Reiter...voiced support for the proposed rules but offered up amendments aimed at tightening consumer protections.
Wells Fargo Facing Lawsuit Over Deposit Errors
by Elizabeth WengerCBS Channel 5
July 23rd, 2010
Richard Holober of the Consumer Federation of California said.."It's an effort to say 'we have a cost and we have chosen not to fix these errors because it's more expensive to fix than ignore...all those little ATM mistakes could be a windfall for Wells.
Protecting California consumers from unfair ‘checkout’ fees
by State Senator Jenny OropezaCapitol Weekly
June 17th, 2010
Current California law prohibits merchants from applying checkout fees to credit card purchases. But the law is silent on debit cards, allowing merchants to bill debit-card users an additional fee set by the retailers. To halt these debit-card surcharges, I authored Senate Bill 933.

Breaking News and Alerts
Restaurant chains, vending machines will have to post calories
by Andrew ZajacLos Angeles Times
August 25th, 2010
In an effort to tackle national obesity, the FDA's draft guidelines require any businesses with more than 20 locations to post the calorie information in the same size type as the menu item or price.
For-profit colleges slammed by student loan repayment data
by Julia LoveLos Angeles Times
August 17th, 2010
Overall, the repayment rates at these for-profit schools was only 36% in fiscal 2009, according to an analysis of the data conducted by the Institute for College Access and Success, a student-advocacy group. By comparison, the repayment rate at private nonprofit schools was 56%, the group found. At public state colleges and universities, the rate was 54%.
Advocates urge FTC to stop defective car rentals at Enterprise that killed Santa Cruz sisters
by Jondi GumzSan Jose Mercury News
"It shouldn't matter if you're buying or renting - the car should be safe," said Rosemary Shahan of Consumers for Auto Reliability and Safety, based in Sacramento. "There should be a uniform standard." The group has approached State Sen. Ellen Corbett, D-San Leandro, who chairs the Senate Judiciary Committee, to propose a bill to require repairs of rental cars in California if there is a safety recall.
Big banks resisting changes to overdraft fee policies
by David LazarusLos Angeles Times
August 13th, 2010
But you have to wonder: How much could it really cost to digitally record some value on the magnetic strip of a piece of plastic? A few taps on the keyboard, a swipe through the machine — that's a few bucks' worth of service?

CFC Press Releases
Consumer Protection Bills Going into Effect on January 1, 2010
December 28th, 2009
"These are a few bright spots in a pretty dismal year for consumers. The most far reaching, pro-consumer legislation failed to even pass the legislature," said Richard Holober, Executive Director of the CFC. "Of the 14 bills we identified as most important that did reach the Governor’s desk, he took the side of the consumer in only six instances..."
Schwarzenegger Receives Failing Grade from Consumer Rights Organization
October 16th, 2009
"We are disappointed that the Governor sided with big business interests and against consumers on the majority of bills that reached his desk. The Governor turned a deaf ear to California consumers on key food safety, automobile insurance and financial privacy proposals."
Consumer Federation of California Issues 2009 Interim Scorecard
by Consumer Federation of California
August 17th, 2009
2009 Interim Consumer Scorecard provides a snapshot of state lawmakers’ votes on several key consumer protection bills. The scorecard includes votes cast before the legislature adjourned for the summer recess.
Coalition of Nine Consumer Groups List Legislative Priorities
August 17th, 2009
Lawmakers returning from summer recess today will be greeted by a letter from nine consumer rights organizations outlining legislative priorities during the final month of the 2009 session.


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