CFA News

CFAnews Update – March 12, 2015

FCC Proposes to Expand Consumer Choice and Competition in Video Markets

The Federal Communications Commission (FCC) is proposing a pro-consumer rule to modernize the definition of multi-channel programming distribution (MVPD) that includes providers of linear video programming. “The Commission has the opportunity to remove a major barrier to competition in the video programming space,” stated CFA’s Director of Research Mark Cooper in a press statement. “By granting online video providers the same access to programming afforded to traditional MVPDs, the Commission is poised to unleash a new generation of innovation in online video, creating greater choice and value for consumers.”

According to the current definition, video services providers are required “to control a transmission path” in order to be considered an MVPD, Cooper stated. This allowed cable operators to act as gatekeepers and toll collectors. If the “control of the transmission path” requirement is removed, online video distributors would have a fair opportunity to negotiate for content, which would lead to greater experimentation and competition.

“In the digital information age, new forms of media enable the principle of consumer choice,” Cooper stated in comments submitted to the FCC. “Eliminating the barriers between incumbent MVPDs and emerging online video technologies will allow consumers to choose among many flexible, cost­effective options for content distribution.”

Injuries Decrease, but ATVs Continue Their Deadly Toll

The U.S. Consumer Product Safety Commissioner (CPSC) released its 2013 annual report of all-terrain vehicle (ATV) related deaths and injuries last week and found that child deaths increased slightly in 2013, while serious injuries to ATV riders of all ages decreased slightly in 2013. At least 62 children lost their lives and 25,000 were injured seriously enough to require treatment in a hospital emergency department.

“Over 100,000 families every year are impacted by ATV deaths and serious injuries. ATVs are one of the most dangerous products CPSC regulates, causing more deaths and injuries than almost any other product under CPSC’s jurisdiction,” stated CFA’s Legislative Director Rachel Weintraub in a press statement. “While data indicates that injuries from ATVs have decreased, more extensive efforts must be undertaken to significantly reduce the tragic deaths and injuries caused by ATVs.”

Major findings of CPSC report include: serious injuries requiring emergency room treatment among all people decreased from 107,900 in 2012 to 99,600 in 2013; overall injuries decreased 34 percent from 2007 to 2013; and the number of children younger than 16 killed from ATVs rose slightly from 59 in 2012 to 62 in 2013.

In March 2014, CFA released a report, “ATVs on Roadways: A Safety Crisis,” documenting the growing trend of states’ permitting ATV use on roads, a practice that contradicts recommendations from the CPSC, public health experts, consumer and ATV industry groups.  “CPSC’s data in the Annual Report of ATV-Related Deaths and Injuries is a critical source of information for those working to decrease ATV deaths and injuries,” stated Weintraub.  “We urge CPSC to include information about ATV deaths and injuries taking place on and off road.”

Mechanically Tenderized Beef Label May be Introduced in 2016

In testimony before the House Appropriations Subcommittee last month, U.S. Department of Agriculture (USDA) Secretary Tom Vilsack said that the final rule on labeling mechanically tenderized (MT) beef should be implemented in 2016 and not delayed until 2018. “This is good news,” said CFA’s Director of Food Policy Institute Chris Waldrop. “There is a strong public health rationale for labeling these products as soon as possible.” Currently, the rule is at the Office of Management and Budget (OMB) for a final review. Consumer, public heath, and labor groups sent a letter to Secretary Vilsack supporting his comments.  Once OMB returns the rule to USDA, the groups urged Secretary Vilsack to immediately finalize the rule and suspend the Food Safety Inspection Services’ (FSIS) uniform compliance regulation so that implementation can begin in 2016.

“Multiple scientific studies show that mechanically tenderized beef is not an intact beef product, and as such, the interior portions of treated steaks and roasts can be contaminated with deadly pathogens,” the groups wrote. “Products with internal contamination – like ground beef and MT beef – are higher risk and pose a serious health threat to consumers, but especially to those individuals in the vulnerable populations…Labeling MT beef provides consumers and retail purchasers with necessary information about this higher risk product.”

Senators Urged to Allow DOL Conflicted Advice Rulemaking to Proceed

In the wake of President Obama’s announcement last month directing the Department of Labor (DOL) to proceed with rulemaking to strengthen protections for retirement savers, financial services firms and their congressional allies have intensified their efforts to kill the rule before it is ever formally re-proposed.  Currently, the rule is at the Office of Management and Budget (OMB) undergoing a final regulatory review before it is published for public comment.

“Research shows that financial firms earn billions of dollars a year in excess profits by steering retirement savers into high-cost investment products that can seriously erode their retirement savings over time,” said CFA Director of Investor Protection Barbara Roper.  “With so much money at stake, the firms are fighting back hard to kill the rule and enlisting allies on the Hill to assist them.  They have been taking advantage of the period when the details of the rule are unknown to fight it based on misinformation and mischaracterizations, a tactic that will become more difficult once the rule is published for public comment.”

CFA and Better Markets sent a letter to members of the Senate last month refuting industry arguments against the rule and urging senators to allow the rulemaking process to proceed.  “It is … imperative that the rulemaking process be allowed to go forward, so that the public and all stakeholders have an equal opportunity to see the actual content of the rule, evaluate it, and offer comment,” the groups wrote. “Efforts to prevent the proposed rule from even being publicly released are especially troubling, since, as you know, retirement savings, security, and dignity are issues of enormous importance to the American people.”