Groups Call On FTC to Require MPG Ratings in Car Ads

CFA joined with a diverse group of consumer, energy efficiency, science, safety, and environmental organizations to file comments with the Federal Trade Commission (FTC) last week urging that agency to require Environmental Protection Agency (EPA) mileage ratings to be included in passenger vehicle advertising and to prohibit non-EPA ratings from being included in the ads.  The comments called for changes to the FTC’s Fuel Economy Advertising Guide and included recommendations for the most effective ways to present MPG ratings.

“Auto advertising is a powerful market force that goes a long way to influence consumer purchase decisions.  Including accurate, fair MPG rating information will serve both consumers and those manufacturers who have made significant investments in fuel efficiency improvements,” said CFA Public Affairs Director Jack Gillis in a press statement.

Surveys, including one released by CFA last month, show that consumers clearly want more fuel efficient vehicles, Gillis said.  Along with the survey results, CFA released the results of new research, which found that consumers are purchasing more fuel efficient cars more than ever, and car manufactures are meeting this demand my making improvements and complying with new federal standards. From 2008 to 2014, the average fuel economy of new cars increased from 21 to 25.6 miles per gallon, a 20 percent increase.

“Consumers want and expect the vehicles they intend to purchase to get significantly higher fuel economy,” noted CFA’s director of research Mark Cooper. “Many Americans struggle to live within their budgets, and a large majority are troubled about future gasoline prices. Insuring that advertisements contain mpg data will help enormously in the vehicle purchase process,” he added.

Legislation Would Give USDA More Authority on Foodborne Pathogens

Representatives Rosa DeLauro (D-CT) and Louise Slaughter (D-NY) introduced legislation (H.R. 4966) last month to give the U.S. Department of Agriculture (USDA) clear authority to keep dangerous pathogens out of the meat and poultry supply. Introduction of the Pathogen Reduction and Testing Reform Act came in the wake of a large-scale outbreak of antibiotic-resistant Salmonella linked to chicken which sickened over 600 consumers.

“Consumers are shocked to learn that it is currently perfectly legal for companies to sell meat and poultry that is contaminated with pathogens like Salmonella or Campylobacter,” said Chris Waldrop, Director of CFA’s Food Policy Institute, in a press statement. “This is not a preventive approach to food safety. And this is something we should not tolerate.”

Reps. DeLauro and Slaughter are currently seeking co-sponsors for the bill, which would give stronger authority to the Department of Agriculture’s Food Safety and Inspection Service to declare any foodborne pathogen an adulterant and recall contaminated products.

New Financial Coalition Formed to Help Returning Vets

CFA has joined Consumer Action, Visa Inc., and the Association for Financial Counseling and Planning Education^® to form The Veterans Financial Coalition to address the unique financial challenges facing military veterans when returning to civilian life. Formation of the coalition was announced last month, with a shared mission of improving the financial security and wellbeing of the nation’s growing veteran population.

Service members have many consumer protections and financial support systems available to them while in the military, but once they separate, many no longer have access to such critical resources and protections. In response, the coalition developed three key goals:

• educate veterans and the community organizations that serve them;
• research and advocate for consumer protections for veterans; and
• raise awareness for veterans’ financial needs.

Coalition members are committing to these shared goals through individual development and delivery of new resources, programs and research.  “Whether it’s expanding opportunities to build assets or protecting assets through safeguards like the Military Lending Act, we are excited to bring our research and education efforts to this important effort,” said CFA Director of Financial Services Tom Feltner.

Consumer Action announced that it is developing a new train-the-trainer program for community based organizations who serve veterans. “There is a critical need to reach and educate veterans who are often preyed on by bad actors and to provide them with the knowledge they need to protect themselves and prosper financially,” said Consumer Action Executive Director Ken McEldowney. “With proper training, education and access to appropriate resources, we believe veterans can make informed decisions about their financial futures.”

The coalition launched www.VeteransFinancialCoalition.com which will serve as a clearinghouse of important personal finance resources provided by coalition members and veterans.

House Approves Harmful CFTC Reauthorization Bill

The House voted 265 to 144 last month to approve legislation that would seriously impede the ability of the Commodity Futures Trading Commission (CFTC) to effectively oversee and regulate commodities and derivatives markets. “By hamstringing the agency, the Consumer Protection and End User Relief Act (H.R. 4413) would leave consumers exposed to fraud, manipulation, and abusive practices and put the safety and stability of the U.S. financial system at risk,” said CFA Financial Services Counsel Micah Hauptman.

CFA sent a letter to members of the U.S. House of Representatives urging opposition to the bill on the grounds that it would impose an assortment of new, onerous cost-benefit analysis requirements on the CFTC which are likely to delay and obstruct agency action, as well as subvert the Commission’s authority to regulate foreign derivatives activities that have a direct and significant effect on U.S. commerce.

In addition, as part of its separate consideration of the Agriculture Appropriations Bill (H.R. 4800), the House defeated on a 227-194 vote an amendment by Representatives Rosa Delauro (D-CT), Maxine Waters (D-CA) and Jim Himes (D-CT) that would have helped reduce the harmful impact of CFTC underfunding.  CFA sent a letter in support of the amendment, which would have reduced the amount of restricted funds in the agency’s budget to current levels, providing the agency much needed flexibility to deploy its resources in a manner that best fulfills its mission.

“It seems pretty clear from these two votes that the House is setting the CFTC up to fail, first by imposing unduly burdensome obligations upon the agency, then by withholding funding from the agency so it is incapable of carrying out those obligations,” Hauptman said.

Groups Call on DOJ to Update Privacy Assessment for FBI Program

In a letter submitted last month to U.S. Attorney General Eric Holder, CFA joined consumer, privacy, and civil liberties groups in urging the Department of Justice (DOJ) to quickly update the Privacy Impact Assessment (PIA) for the Federal Bureau of Investigation’s Next Generation Identification System (NGI). The privacy impact of the face recognition program was last assessed in 2008, since which time the program has undergone radical transformation.

“The capacity of the FBI to collect and retain information, even on innocent Americans, has grown exponentially,” stated the groups. “It is essential for the American public to have a complete picture of all the programs and authorities the FBI uses to track our daily lives, and an understanding of how those programs affect our civil rights and civil liberties.”

The groups noted that PIAs are an important check against the encroachment on privacy by the government because they allow the public to see how new programs and technology are utilized and assess whether the government has done enough to mitigate the privacy risks. “Facial recognition technology can be helpful to fight crime but it also raises concerns about the potential for racial and ethnic profiling, social stigma, and individuals being misidentified,” said Susan Grant, CFA Director of Consumer Protection. “The FBI needs to publicly acknowledge those concerns and explain how it will address them.”