Category: Consumer advocacy

Finally, A Law Firm that Helps the Beleaguered Working Class

Sharon Y. Eubanks, who helped start new law firm that advocates for regular working people. She headed up the United States’ 1999 legal case against the major tobacco companies.

An entirely new kind of law firm has opened up in Washington, D.C. and New York City. Its stated mission is to take the side of average working people against the big dogs: the corporate polluters, discriminatory employers and unsafe manufacturers whose policies, behaviors, products and activities make life difficult for the rest of us. The new, high-powered public interest law firm specializes in fighting for beleaguered, regular working-class clients and on the way getting court rulings that will benefit entire communities. The group, Advocates for Justice Chartered Attorneys (AFJ), is made up of activist-minded attorneys who have extensive experience litigating against big corporations in specialty areas like labor and employment, consumer rights, environmental justice and civil rights. “Our mission is to ensure that high-quality legal representation is not limited to the wealthy, but is available to those who need it most.  We represent regular, working people who suffer the bulk of our country’s legal problems,” says Sharon Y. Eubanks, one of the firm’s founding attorneys.  Ms. Eubanks is an example of the high caliber of attorneys at AFJ — she served as lead counsel for the United States in the largest civil Racketeer Influenced and Corrupt Organizations (RICO) enforcement action ever filed, United States v. Philip Morris USA, et al., also known as the federal tobacco litigation. Other attorneys at AFJ are Arthur Z. Schwartz, Cate Edwards, Richard Soto and Tracey Kiernan. AFJ’s website is afjlaw.com. In one of the firm’s current cases, AFJ is representing 170 parents and community members in a civil rights action against a school district in New York. The suit alleges that the school district violated the plaintiffs’ constitutional rights by intentionally segregating white students into private schools, while cutting funds to the primarily black and Hispanic student population of the public schools. AFJ Law in D.C. is located at 11 Dupont Circle, Washington, D.C. 20036. The group also has an office on Broadway in New York City. If you need help or want a consultation, contact information is on the firms’ web site.

Rush on the Ropes in Missoula

Rush Limbaugh

RushOutOfMissoula.com, the grassroots effort to push  Rush Limbaugh off the air in Missoula, Montana, reports making “fabulous headway” this week in their effort. Six more advertisers have opted to pull their advertising from Limbaugh’s show on KGVO radio in just the last week, bringing the total of businesses shunning his show in Missoula to 41.  “They made a good decision, but only because we made our voices heard,” said Dave Chrismon, who organized RushOutOfMissoula.com. Some of the remaining local advertisers include Adair Jewelers, Bagels on Broadway, The BBQ Pit and Big Sky Glass, Montana Republican Party/Denny Rehberg for Senate and Montana Pro Life Coalition. National advertisers include Allegiant Airlines, Blackjack Pizza, and MaxMuscle.

Biotech Giant Syngenta Facing Criminal Charges Over GM Corn

Spontaneous abortion, one of the symptoms seen in livestock eating genetically-modified corn feed.

The big biotechnology firm Syngenta is facing criminal charges for covering up a U.S. study that showed cows died after eating the company’s genetically-modified (GM) corn. The charges came after a long struggle by Gottfried Gloeckner, a German dairy farmer and former supporter of genetically-modified crops, agreed to participate in authorized field tests of “Bt176,” a corn variety manufactured by Syngenta that was genetically-modified to express an insect toxin and a gene that made the corn resistant to glufosinate herbicides.  Gloeckner allowed the GM corn to be grown on his farm from 1997 to 2002, and fed the resulting corn to his dairy herd. By 2000, Gloeckner was feeding his cows exclusively Bt176 corn. Shortly after, several of Gloeckner’s cows became sick. Five died and others had decreased milk yields. Syngenta paid Gloeckner 40,000 euros as partial compensation for his losses and veterinary costs. Gloeckner brought a civil suit against Syngenta over the loss, but Syngenta refused to admit its GM corn could be in any way related to the illnesses and deaths of Gloeckner’s cows. The court dismissed the civil case and Gloeckner received no further payments from Syngenta, leaving him thousands of Euros in debt. Gloeckner stopped using the GM feed in 2002, but continued to lose cows. In 2009, Gloeckner discovered Syngenta had commissioned a study in the U.S. of its GM feed in 1996. In that study, four cows died within two days of eating the GM feed, and the study was abruptly ended.

Three More Businesses Drop Limbaugh Show in Missoula

Rush Limbaugh

Three more businesses have pulled their ads from Rush Limbaugh’s radio show in Missoula, Montana in response to a grassroots effort by Missoula citizens to let KGVO Radio, broadcaster of the show, know they have had enough of Limbaugh. The latest advertisers to drop their sponsorship brings the total number of advertisers who have dumped Limbaugh’s show in Missoula to 33. Supporters of the effort to push Limbaugh off the air in Missoula, have been called “radicals” for contacting businesses to let them know they disapprove of their sponsorship of Limbaugh’s show. “Fighting bullies and speaking our minds doesn’t make us radicals. It makes us good, patriotic Americans,” responds Dave Chrismon, organizer of RushOutOfMissoula.com. Chrismon has instructed people contacting businesses over their ads to be polite and respectful when they call. “Be an anti-bully,” he says, urging people to “Drive your point home by being respectful.” RushOutOfMissoula.com says it is the voice of the free market and of a “new, bully-free community standard.” KGVO Radio has not yet responded to the news about the most recent three businesses to pull their ads off the show. The station’s last web post about the fracas is dated May 1, 2012. It thanks Limbaugh supporters for their passionate defense of his show.

Skechers Pays $40 Million for Deceptively Advertising “Butt Toning” Shoes

Kim Kardashian helped market Skechers "toning shoes"

Skechers, the maker of those roly-poly  “toning shoes” that were a big craze back in 2010, will shell out $40 million to settle charges that it deceived consumers with phony claims the shoes conferred health benefits like weight loss, muscle strengthening and butt toning.  Back in 2010, fitness footwear companies like Skechers, Nike and Reebok raked in about $1.1 billion from the “toning shoe” market by charging between $100 and $200 a pair for the shoes. Skechers controlled about 60 percent of the market, and Reebok had about a 33 percent share. The companies created demand for the shoes by running ads that falsely claimed they would help wearers “shape up while you walk” or  “get in shape without setting foot in a gym.” The Federal Trade Commission (FTC) alleged that the shoe manufacturers fudged studies and statistics to make claims about the shoes that they could not support. Last  September, Reebok agreed to pay $25 million to settle charges that it deceptively advertised roly-poly shoes with names like TrainTone, RunTone and EasyTone.  The companies are paying the millions of dollars into a fund to which shoe purchasers can apply for a refund. If you bought Reebok toning shoes, you can click here to apply for a refund. People who fell for Skechers “butt toning” shoe ads and bought them can keep an eye on this website to get refunds when the account it set up.

Main source: Advertising Age, May 16, 2012

Is the Limbaugh Show on the Ropes in Missoula?

Rush Limbaugh

Twenty advertisers have now officially pulled their ads from Rush Limbaugh’s show on KGVO talk radio in Missoula, Montana, and the airwaves went dead during his show not once, but twice — and for more than a minute each time — on Friday, May 20th. Another sign Limbaugh could be in trouble in Missoula: KGVO has started broadcasting brief comedy bits during what would normally be blocks of advertising time on Limbaugh’s show, according to listeners from RushOutOfMissoula.com, the effort to push Limbaugh off the radio in Missoula.  RushOutOfMissoula.com posts a frequently-updated list of current advertisers on Limbaugh’s show on their web page, along with the businesses’ contact information, and asks people to contact the businesses and ask them to “stop putting money in that bully’s pocket” by pulling their ads. The web page urges callers to remain polite and respectful. Many advertisers have pulled their ads as a way to remain neutral in the conflict. Businesses still advertising on Limbuagh’s show on KGVO include Allegiant Airlines, Adair Jewelers, Air Quality Mechanical, Bagels on Broadway, Edward Jones, Furniture Row, Hoagieville, Lithis Chrysler, The Montana Club, the Ravalli Family of Banks and Time Rental.  Jim Adair, owner of Adair Jewelers — one of the remaining local advertisers on Limbaugh’s show in Missoula — is fighting back by increasing his ads on the show, and running ads saying he is being blackmailed by people who want to take all talk radio off the air.  RushOutOfMissoula.com reports that 1,751 people have now signed their petition asking KGVO to take Limbaugh off the radio in their town.  RushOutOfMissoula.com was organized after Limbaugh carried on a three day tirade against Georgetown law student Sandra Fluke late last February in which he called her a “slut” and repeatedly derided and insulted her for testifying before Congress about the need to fund women’s health care.

“Robin Hood Tax” Proposal Gains Global Support

Nurses rally in Chicago to support the Robin Hood Tax

Nurses led a rally in Chicago May 18 ahead the NATO summit to boost the idea of instituting a “Robin Hood Tax,” a tiny tax on financial institutions’ transactions that would be used to offset drastic cuts in education and social services, and provide health care to Americans. Also called a Financial Speculation Tax, the tax has the support of Warren Buffett and Bill Gates, as well as President Hollande of France, Chancellor Merkel of Germany, Prime Minister Zapatero of Spain and other world leaders, as well as Nobel prize winning economists Joseph Stiglitz and Paul Krugman. The Robin Hood Tax on bankers would be less than one-half of one percent on deals over $100, and would apply to transactions like trades in derivatives, stocks, bonds and foreign currency exchanges. The charge would total less than one half on one cent on every $100 worth of transactions. Most ordinary people worldwide would never feel it, but experts estimate it would generate hundreds of billions of dollars each year to fight poverty and support public services like education and health care. National Nurses United teamed with National Peoples’ Action and local community groups to organize the rally. The were joined by veterans, members of the Occupy Movement, unions and others. The rally was part of a “global week of action” in support of the Robin Hood tax, with rallies also happening in Europe, Africa and on Mount Fuji in Japan.

The Bottled Water Scam

Some beverage companies secretly bottle tap water and then charge 1,900 times more for it

People who buy bottled water pay up to 1,900 times what tap water costs, but get less access to key information about the pricey water than they do for tap water. Big companies that sell bottled water, like Pepsi (Aquafina) and Coke (Crystal Geyser), want you to think their water is special, but refuse to reveal where their water comes from, the methods used to purify it or whether their own testing revealed any contaminants in the water. According to the Environmental Working Group (pdf), the makers of the top ten best-selling brands of bottled water refuse to answer at least one of those questions. Only one — Nestle, maker of Pure Life Purified water — willingly discloses the specific source of its water, treatment method and gives consumers access to a water quality test report. Digging for information reveals that at at least one brand of bottled water, Aquafina, is bottled from a public water source. California passed a law in 2007 ordering bottle water manufacturers to publicly disclose quality information about their bottled water, but as of 2011 only 34 percent of companies were complying with the law. When asked to supply water quality information, the makers of Aquafina claimed it was “proprietary information” that was “not for the public.” Bottled water companies make claims like their water is purely from rainfall, purified by “equatorial winds” (Fiji Water) or can help you live longer, but cannot and do not substantiate these claims. In the mean time, every 27 hours, Americans drink enough bottled water to circle the Earth with plastic bottles stacked end to end. EWG recommends drinking filtered tap water instead of bottled water. Municipalities issue annual tap water quality reports that are always available to the public.

Source: Environmental Working Group report 2011 Bottled Water Scorecard (pdf)

Online Petition Battles Junk Mail

The U.S. Post Office, suffering from reduced mail volume, has started a new program aimed at encouraging businesses to send junk mail, or “direct mail.” The program is called “Every Door Direct Mail,” and for a greatly reduced price it lets businesses blast out mailings like coupons, fliers and menus to every single household within a specific Zip code or mailing route. Business owners don’t even have to address their ads. The program is the source of fliers packing mail boxes that are addressed to “Our Neighbor,” “Postal Customer” or Current Resident.” Your name gets added to junk mail lists whenever you unwittingly turn over your name and address to a merchant, for example when you buy a big-ticket item like a car or a house, order something from a catalog, donate to a charity, fill out a product registration form or sign up for a grocery store surveillance card (euphemistically called “loyalty cards.”). Any time you hand your name and address over to a merchant, you can expect to start getting more junk mail, and mailing lists are valuable. Companies that sell or rent mailing lists make a lot of money off them. But a nonprofit consumer advocacy group called Catalog Choice, that helps people stop getting junk mail, has started on online petition asking the U.S. Postmaster General to let people opt out of getting unaddressed advertising mail.  Catalog Choice doesn’t fault the USPS for its junk mail program, but says it should give people a choice to opt out of such mass-mailing programs.  Right now, under USPS’s new program consumers must contact each individual business if they would rather not receive their mail ads — a cumbersome burden to place on people. The USPS defends their new junk mailing program by saying it lets people “know what’s going on in their own neighborhood.”

Can Wall Street Fund Universal Healthcare in U.S.?

National Nurses United support a tiny financial transaction tax to pay for universal healthcare in the U.S.

Over a thousand activists including members of National Nurses United marched in New York City April 26 to demand the government levy a tiny tax — just 0.5 percent — on speculative financial trades to fund universal health care in the United States. The idea is to add a small sales tax to Wall Street transactions of stocks, dividends and other financial deals, just like the tax ordinary consumers pay when they buy goods at a department store. The proposed tax, just one-half of one percent, would amount to just 50 cents on every $100 worth of financial transactions, but it would add up to a huge amount of money: about $350 billion each year. The tax wouldn’t apply to ordinary consumer transactions like ATM use, debit card purchases or home loans, and traders would be barred from passing the costs of the tax on to consumers. The main targets of the a tax are the big financial firms whose risky trading led to the meltdown of the global economy, like Citibank, JP Morgan, Goldman Sachs and Morgan Stanley. These four firms alone account for almost a quarter of the entire global market volume on trades of currency. The tiny tax would take advantage of a huge increase in speculative financial activity over the past decade to benefit Americans’ access to health care. A financial transaction tax isn’t a new idea. The U.S. had such a tax in place from 1914 to 1966. The idea of a financial transaction tax is gaining acceptance has been endorsed by conservative presidents in France and Germany, as well as former United Nations Secretary General Kofi Annan.

Activists Gain Against Limbaugh in Missoula

Rush Limbaugh

Anti-Rush Limbaugh activists racked up another successful week after six more businesses vowed to drop sponsorship of the Rush Limbaugh Show on KGVO Radio in Missoula, Montana. Their success brings the total to 13 businesses that have pulled their support of the show since April 13, 2012, when a grassroots effort to push Limbaugh off Missoula’s airwaves began. The current effort to kick Limbaugh off the air in Missoula started the day after citizens delivered a 1,600-signature petition KGVO Radio asking them to take Rush Limbaugh off the local air. The radio station refused to pull the show, and the next day, on April 13, activists unveiled a website, RushOutOfMissoula.com, that lists the show’s local and national sponsors, with each business’ contact information. Citizens began dialing the business owners to express their displeasure for the businesses’ support of Limbaugh and his persistent, hate-filled rhetoric. Dave Chrismon, organizer of the Missoula anti-Limbaugh effort, posted an upbeat email update in which he reported getting positive feedback from the community for the effort. “This is from an email,” Chrismon wrote, ” ‘I just wanted to inform you that as of today, we requested our ads not be run during the Rush Limbaugh Show. . . Thank you for letting us know that our ads were being run . . . The owner had no idea and was very upset when she found out.’ Shopping yesterday, I met someone who works at one of the past advertisers. She thanked me for the effort and told me, ‘We want to avoid controversy. After we pulled our ad, a longtime supporter called and thanked us on behalf of her daughter.'” Missoula activists aren’t letting up on their effort. Their current goal is to persuade a total of 20 advertisers to drop the show. They are also  thanking the businesses that have withdrawn their ads for “saying no to bullying.”

BREAKING: South Carolina State Senator Ted Vick (D) Resigns from ALEC

SC State Rep. Boyd Brown

On Monday, April 23, 2012, State Rep. Boyd Brown of South Carolina sent an email to all SC state legislators in which he urged his fellow legislators to leave the American Legislative Exchange Council (ALEC). Brown called ALEC a Koch-funded special interest group that wields too much power and causes legislators to neglect their constituents. Brown wrote that money continues to “be the cancer on the body politic, and with ALEC it has taken over.” He called “scholarships” through which ALEC funds legislators’ trips to conferences at fancy resorts a “pay-for-play scheme.” Brown’s plea had an effect. Today, April 24, South Carolina State Rep. Ted Vick (D) announced he is resigningfrom ALEC. In a public statement regarding his decision, Vick wrote in part, “Over the years, ALEC has steadily drifted to the right and away from its original purpose . . . I have found myself voting against their legislation more and more . . . Recent revelations concerning ALEC’s funding sources from radical elements

SC State Rep Ted Vick

have proven to be the final straw for me. ALEC has become too partisan and too extreme. . . . ALEC has become part of the problem and I can no longer be a member of this organization.” In press releases on its website, ALEC maintains that it has been the target of an organized intimidation campaign and harassment tactics carried out by “liberal front groups” that are simply attacking ALEC’s free market policies, without addressing any of issues raised by the groups regarding problems with the legislation ALEC has been spreading.

Federal Court Says Groups Can’t Keep Campaign Donors Secret

U.S. District Court Judge Amy Jackson, Washington, D.C.

A District Court in Washington, D.C, ruled (pdf) earlier this month that it is illegal for groups to keep secret who funds their political attack ads.  At the heart of the case was a regulation promulgated by the Federal Elections Commission (FEC) in December of 2007 that required disclosure of the names and addresses funders who donate $1,000 or more to organizations for electioneering communications. But the FEC, in interpreting the law, deferred to the argument that keeping track of such donations would inordinately burden corporations. In attempting to clarify the law, the FEC created a huge loophole by promulgating a follow-up rule that allowed groups to circumvent disclosure provisions required by campaign finance laws, like the Bipartisan Campaign Reform Act, and the Supreme Court’s 2010 Citizens United ruling.  The disclosure provisions in Citizens United have largely been overlooked.  In Citizens United, justices wrote that “the public has an interest in knowing who is speaking about a candidate shortly before an election,” and “transparency enables the electorate to make informed decisions and give proper weight to different speakers and messages.”   U.S. Rep. Chris Van Hollen, Jr. (D-Maryland) challenged FEC’s loophole in a lawsuit brought against the FEC in 2011.

How Many Millionaires Pay a Higher Tax Rate than You?

The White House Buffett Rule calculator

The White House has posted a new online tool people can use to calculate how many millionaires pay a lower effective tax rate than they do. Citizens enter their wages, salary and other income and how much income tax they have paid, click a button and see the estimated number of millionaires who paid a lower effective tax rate than they did in 2009. The calculations demonstrate how under the current U.S. tax system, many millionaires are paying a lower effective income tax rate than most middle class families. In 2009, fully 22,000 American households made over $1 million, but paid the lowest effective tax rate such top earners have paid in 50 years. Of those top-earners, 1,470 paid no federal income tax at all on their million-dollar-plus incomes, according to data supplied by the Internal Revenue Service.

Missoula Citizens Deliver Petition Against Rush Limbaugh

Banner logo from RushOutOfMissoula.com

On April 12, 2012 a group of citizens in Missoula, Montana delivered a “Take Rush Limbaugh off the air in Missoula” petition containing more than 1,600 signatures to KGVO Radio in Missoula, which broadcasts the show.  KGO representatives politely explained to meeting attendees why they did not want to end the Rush Limbaugh show, saying too many people support Rush, and they have contracts to broadcast the show.  Shortly after the meeting, though, Dave Chrismon, who headed up the petition project, unveiled a new website, RushOutOfMissoula.com, that lists Rush’s sponsors on KGVO as of April 13, 2012, along with their contact information. Local sponsors include Triple Play Family Fun Park, Grizzly Fence and the Computer Guys, among others. Some national sponsors on the list are Tax Resolution Services, Fram Oil Filters, Curves for Women, Match.com, Lear Capital, Insperity, and LifeLock. The site pledges to update the list of advertisers regularly and list any advertisers that drop their support of the show.  RushOutOfMissoula.com also includes a link to a YouTube video message by Dave Strohmaier, who is running for the U.S. House of Representatives in Montana, condemning Rush’s negative discourse and hateful rhetoric, and supporting the effort to get him off the air.  RushOutOfMissoula.com urges people to be kind when they contact advertisers, saying “We are all very passionate, but don’t lose your cool. We don’t want anyone to act like Rush.”

FDA Orders Sexual Dysfunction Warning Added for Merck Baldness Drug Propecia

If your hairline is receding and you’re are thinking about taking Merck’s baldness drug Propecia, you might want to think again. The U.S. Food and Drug Administration (FDA) ordered drug maker Merck to change the warning labels for Propecia and its prostate drug Proscar to include “libido disorders, ejaculation disorders and orgasm disorders,” conditions that FDA notes may continue well after patients stop taking the drugs.  While FDA says it isn’t clear whether finasteride, the active chemical in Propecia and Proscar, is what causes the persistent sexual problems, side effects reported by those using the drugs “suggest a broader range of adverse effects than previously reported in patients taking these drugs.” FDA approved Proscar in 1992 and Propecia in 1997.  Since then, the agency has reviewed 421 post-marketing reports of sexual dysfunction from those taking Propecia between 1998 and 2011. Of those, 59 cases described sexual dysfunction lasting a minimum of three months after discontinuing Propecia. FDA reviewed 131 reports of similar problems associated with Proscar. In 2011, FDA ordered the warning labels of both product be revised to include erectile dysfunction that continues after patients stop taking the drug.  People can report adverse side effects of prescription drugs to FDA’s MedWatch hotline at 1-800-332-1088, report them online at MedWatch Online or through the U.S. mail using the MedWatch form (pdf) available at FDA’s website.

Source: U.S. Food and Drug Administration, April 11, 2012

Johnson & Johnson Fined $1.2 Billion for Illegal Drug Marketing

The state of Arkansas has ordered Johnson & Johnson and one of its subsidiaries, Janssen Pharmaceuticals, to pay $1.2 billion in fines for deceptively marketing the antipsychotic drug Risperdal, approved to treat conditions like schizophrenia and bipolar disorder. The companies were accused of failing to provide adequate warning about potential side effects of the drug, which include diabetes, weight gain, neurological problems and increased risk of strokes and death in elderly patients with dementia.   Fletch Trammell, a lawyer in the case who had used Risperdal, said that J&J hid studies that showed Risperdal caused diabetes at a higher rate than a competing drug. The court also found nearly 240,000 instances in which the companies violated the state laws against Medicaid fraud, with each count representing one prescription for Risperdal written to a state Medicaid patient over a 3 1/2 year period. The fine for the Medicaid fraud portion of the case, at $5,000 per prescription, was the state’s minimum.  A 12 person jury deliberated for three hours before finding against J&J. Arkansas is just one of several states suing over Risperdal. South Carolina and Texas have already reached settlements with J&J in their lawsuits. J&J plans to appeal the Arkansas ruling, claiming it did not break the law and that the package insert that comes with the medication was approved by the U.S. Food and Drug Administration.

Main source: New York Times, April 11, 2012

Campaign Urges Hospitals to Evict McDonalds Restaurants

Corporate Accountability International (CAI), a group that challenges corporate abuses, posted an  open letter on its website asking hospitals that house McDonalds restaurants to end their contracts with the fast food chain to “stop fostering a food environment that promotes harm, not health.” The letter points out that the rates at which children suffer from diet-related illnesses like diabetes are “staggering,” and the problem is related in part to the consumption of junk food. Locating McDonalds stores in  hospitals is part of a marketing strategy, CAI says, that is aimed at imparting an aura of healthfulness to the food — a goal that is inconsistent with the goals of a health institution.  “Health professionals are devoted to caring for sick children and adults and to preventing illness. But these efforts cannot compete with the profit-driven mechanisms by which McDonalds and the fast food industry operate their business, and the toll that McDonalds’ practices have had on children’s health,” the letter states. CAI’s petition to get McDonalds out of hospitals is here.