by Ami Gadhia and Jean Halloran
You may have heard a lot recently about Washington D.C. and its ‘regulations’ – probably not much of it good.
Politicians and others have been talking about doing away with federal regulations, and the Senate is set to consider several bills that will make it a lot tougher for these rules be put in place. But if these bills pass, it will become almost impossible to adopt common sense consumer protections, and your health and safety will be at risk.
Essentially, regulations are how federal agencies carry out their responsibilities as directed by Congress. For instance, Congress may pass a law directing the Food and Drug Administration to take steps to make our produce safer, but these laws usually only set out broad goals.
To reach those goals, regulations – or rules – have to be written. In this instance, FDA will spell out the specific steps food producers need to take to keep our produce free from bacteria that can make us sick. Before being adopted, these rules undergo public review and comment, so anyone can weigh in.
While not all regulations work to protect consumers, there are many important rules that help keep our food, toys, and cars safe, that oversee our financial products, and that help keep our air clean. Without these types of rules, the marketplace could be a virtual free-for-all when it comes to your safety and getting a fair deal:
- The Consumer Product Safety Commission makes sure children’s toys are tested for lead and other safety concerns before they reach store shelves and kids’ hands.
- USDA regulations make sure food processors and meat producers keep their facilities clean, so bugs like Salmonella and E. coli in chicken or beef don’t make us sick, or worse.
- Health insurance companies have to give you understandable information free of double-speak, so you can make better choices about your health coverage.
- The EPA monitors drinking water for the presence of toxic chemicals and sets limits on air pollution from industrial and commercial sources.
And important new rules are on the table. Among them: making sure medical devices like pacemakers and replacement hips are traceable so if there’s a recall patients can be easily notified, and allowing you to take your mobile phone or device with you when changing wireless companies, so you can shop for a better deal.
But late last year the House of Representatives passed three bills that would create enormous hurdles for federal agencies issuing regulations. And the Senate is slated to take them up soon.
Consumers Union, the public policy and advocacy arm of Consumer Reports, opposes these bills because they would undermine standards that keep our air and water clean, our food, drugs, cars, and other products safe, and our marketplace fair. To subject these rules to second-guessing would not only be wasteful; it could be damaging or even deadly. We urge consumers to join us as we work against these bills:
- The Regulatory Accountability Act (H.R. 3010, S. 1606) would require an agency adopt the least-costly rule, unless it can show both a compelling need to protect public health and safety and benefits that justify the additional costs. While this may sound good in theory, in reality a rule could only require a toy manufacturer to warn against a particular hazard, instead of designing the safety problem out of the toy in the first place.
- The REINS Act, Regulations from the Executive in Need of Scrutiny, (H.R. 10/S. 299) would force Congress to vote on all new rules having an annual economic impact of $100 million or more. Agencies could implement only those rules approved by both houses of Congress and signed by the President within an implausibly tight deadline of 70 legislative days. Rules that are not approved by then would be automatically rejected. Not only does Congress already have the ability to determine what regulations should look like when it passes a law, it also has the power to undo a rule that both chambers find objectionable. This bill also places an unrealistic burden on Congress to consider and vote on the 50-100 major rules agencies typically finalize each year.
- The Regulatory Flexibility Act (H.R. 527, S. 1938) would require all regulations that might conceivably have even an indirect impact on small businesses to undergo additional and unnecessary analyses. Virtually any action an agency proposes – even guidance designed to help a business comply with a rule – could be subject to a lengthy regulatory process. This bill could make it difficult for federal agencies to protect the public and respond to new safety hazards.
We will continue to keep you informed as we work to fight against these damaging measures, and hope you will join us in the battle for fair and commonsense marketplace rules.
Not in My Food.org : Know what you're eating







Is ALEC (American Legislative Exchange Council) of the Koch Bros behind the changes in regulations?? They are certainly behind legislative changes in states across the country.
Koch Brothers: Covert Operations
The billionaire brothers who are waging a war against Obama.
by Jane Mayer Au
http://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer
http://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer?printable=true#ixzz0xcAvDCvc
Here is another example of how regulations to protect us get watered down or defeated:
Great job so far!!
I just got a 53% premium increase on my John Hancock Long Term Care Insurance policy. The “decent” premium I got a few years ago upon signing was increased; I’m sure, because the “group” rate was raised. I’m certain that the insurance companies well know that they can raise the group’s rate every few years because their insureds are older, and may have new medical conditions, so switching companies is not an option.
This is one more example of how “regulations” will “kill the marketplace & stop new jobs, blah blah” that is spewed from the mouth of well meaning politicians who just happen to have received nice $$$ from the industry.
I want to subscribe without commenting. Thank you
..DR. Rauchwerger…? Is that a medical doctorate? (Just curious).
This 53% increase on your LTC Policy from John Hancock makes the “probable rate increase” letter I got (last fall from my LTC company, Genworth), not look so bad. However, it does make me decide that your company is not one I want to trust for any type of insurance.
Upon my personal observation: You are right.
It seems that every large organization out there is not “answering to a higher power”; is thoughtlessly moving jobs overseas; has no regard for consequences beyond those of this week; and even is engaging in unconscionable, and/or extortionists tactics.
One of my personal experiences:
I have a good (above average), to very good credit rating, around 750 last time I checked. But since 2009, Discover has doubled my interest rates on both the accounts I have with them. The only reason I could find was that in 2009 I had a payment on one of my 2 Discover cards arrive 3-4 days after the due date. At the time I called and asked for my late fee back; the lady was ever so nice about saying that I had been a “valued customer” since and she’d gladly refund the $35 late fee. How warm and fuzzy I felt then. Only to figure out that sure, they’ll be glad to give my $35 back since it’s a pittance compared to a year or two of doubled interest on both my cards.
This week I firmly told them off, and paid them off (transferred all balances to my USAA 7% interest rate credit card)
It will be a “Cold Day in …” before Discover gets a significant amount of my business again. I’ll just buy gas once a month, alternating use of each card, and pay the previous day’s gas charge off, the very next day. Since they won’t be robbing me the regular way, they will probably start charging for “inactivity” or some other bunk. So rather than pay them another extortionists fee, I’ll cancel my 2 cards…But then they “win again” since credit ratings are weighted against consumers. Available credit limits are calculated from the combined totals of all credit cards owned. My personal credit limits will decrease by 42% and my debt to credit ratio will move into the “too much debt, for the total credit available” and my credit score will take a dive.
Therefore, it’s a lose-lose situation for consumers.
Now the National banks are trying to charge account holders for using their DEBIT cards (probably because so many people are trying to stop using credit cards, and get back to sound personal economics again). That’s partially why I use small locally owned banks, they have to operate on a personal level so they have not yet attempted to work us over as badly
Moral of the story: Financial institutions / Banks are NOT your friends.
Sorry about the rant….
Back to LTC ..
Genworth, has a long history of being rated in the top 10% of insurance companies (fiscally sound)….In spite of their warning letter, so far, my premium has not yet gone up. However, I signed up with them in the last 4-5 years (before I turned 60 and during the time when it was becoming obvious that hospital and personal care costs were on a sharp, and steady incline).
The premiums for my policy started out steep (Genworth was anticipating the increase in future health care costs). If my premium goes up, I can not afford to continue an adequate level of LTC coverage. The only alternatives I’ll have are: to drastically reduce my coverage to get down to a premium that I’m able to afford; try to get LTC with another company (Yer right, that is not a realistic option); or cancel LTC completely, and consume all of my daughter’s potential inheritance (which is what I was trying to protect by getting LTC in the first place !).
Oh, BTW: I am not disciplined enough to pay Genworth once a year. I pay quarterly, which means they charge me $90-100 more each year than the actual yearly premium I was initially quoted …? Why ? Surely it doesn’t cost them that much to automatically withdraw their payments from my checking account each quarter ….I have surmised that banks, credit cards, and various other entities do this because they’ve decided they can (and heretofore, we’ve gone along with it).
MESSAGE TO ALL ELECTED OFICIALS—TREAT OTHERS HOW YOU WANT TO BE TREATED. LET ALL OF THE PEOPLE HAVE HEALTH INSURANCE JUST LIKE OUR ELECTED OFFICIALS. LET US JOIN TOGETHER TO STOP THE MAIN PROBLEM OF THE BUYING AND CONTROLLING FAR TO MANY OF OUR ELECTED OFFICIALS. IF WE HAD 1/2 THE REGULATIONS OF CANADA NONE OF THESE PROBLEMS WE HAVE HAD AND ARE STILL HAVING WOULD NOT HAVE HAPPENED.
Corporations have a constitutional right to NOT tell us that food is Genetically modified!! (See #1 below).
The real problem is that Corporations have many of the rights that natural people have. Corporations should be answerable to the people, not the people should be answerable to the corporations. Corporations have fought and gained many rights under the constitution, including being considered a ‘Person’. We need to get together to support a constitutional amendment declaring that corporations are Not people and do not have the same inalienable rights as natural people do. then, we can get somewhere regarding protecting our food, our health and environment.
When we fight against or for individual laws or regulations we dilute our power. We need to join together with other organizations and take back our Democracy – regardless of whether you are a Republican, Democrat, Independent or ‘Other’. We need a Constitutional amendment as stated above.
Here is a short synopsis of the ;rights’ of corporations (from http://WWW.POCALD.com):
* 1st Amendment Free Speech rights. Corporations use these rights, meant to protect human beings from the power of the state, to influence elections through political “contributions” (more like “investments”); to advertise for guns, tobacco and other dangerous products over the objections of communities; to avoid having to label genetically modified foods.
* 4th Amendment Search and Seizure rights. Corporations have used these rights to avoid subpoenas for unlawful trade and price fixing, and to prevent citizens, communities and regulatory agencies from stopping corporate pollution and other assaults on people or the commons.
* 5th Amendment Takings, Double Jeopardy and Due Process corporate rights. Corporations must be compensated for property value lost (e.g. future profits) when regulations are established to protect homeowners or communities. Corporations cannot be retried after a judgment of acquittal in court. The granting of property to a corporation by a public official cannot be unilaterally revoked by a subsequent public official or Act of Congress. ”
Its disgusting what has happened to our Democracy over the last 125 years. Gen informed!!!!
I agree with the poster who pointed out the “rights” of corporations. It is a ridiculous concept for a legal construct to have the same rights as people. People should always take precedence and our laws should always favor individuals over corporations. And please don’t point out that corporations are made up of people.
While I certainly see the value in some regulations, there are also plenty that are without common sense and cost our nation many millions (billions?) of dollars each year in unnecessary expenses. Congress DOES need to reel in the regulators and put in safeguards to make sure the regulations make sense. Also, out-of-date regulations need to be amended or discarded.