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Consumers (3)
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Consumers (3)
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James M. Cannon Files (Ford Administration)
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The original documents are located in Box 8, folder "Consumers (3)" of the James M. Cannon Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 8 of the James M. Cannon Files at the Gerald R. Ford Presidential Library [3/27/75] DRAFT NOTES FOR TALKING TO CABINET MEMBERS The Consumer Advocate Bill discussed yesterday at the Cabinet Meeting, S.200, may be reported out right after the Congressional Recess. The President has asked the Domestic Council to develop alternatives. I am sending over by messenger today, a copy of S.200, and a budget bureau summary of the bill. Section 6, beginning on Page 12 of the bill specifically authorizes the Consumer Advocacy Agency to intervene in behalf of a consumer's interest it', he can define/in your department's proceedings and activities. This bill has tremendous support in the Senate and probably will have in the House. The President has directed the Domestic Council to develop alternatives. FORD NEBARY 1. what import # 2 Z. One thing we need to know is what specific efforts you are making now to better represent the consumer in your department's decisions and activities? 3. Secondly, what are additional efforts you might take to better represent the consumer in your department's decisions and activities? Thirdly, what regulatory reforms would you suggest to assist the consumer? We are trying to get your ideas to the President before he leaves on Saturday. It would be very helpful to us if you erther by phone or memo- could have your thoughts on these three points - ^ back to us by 3:00 p.m. tomorrow afternoon, FRIDAY. THE WHITE HOUSE WASHINGTON March 27, 1975 Dear (Cabinet Member) : As a follow up to our conversation today, here is a copy of the Consumer Advocate Bill, S.200, and a summary of the bill. The President has asked the Domestic Council to develop alternatives to the bill, and we would like to get your ideas to the President before he departs on Saturday. Accordingly, could I please have your thoughts - by phone or memo - onthe following three points by 3:00 p.m. tomorrow afternoon - Friday, March 28? 1. We need to know what specific efforts you are making now to better represent the consumer in your department's decisions and activities? 2. What additional efforts could you take to better represent the consumer in your department's decisions and activities? 3. What regulatory reforms would you suggest to assist the consumer? Many thanks. Sincerely, James M. Cannon Assistant to the President for Domestic Affairs Honorable Attachments Dear (Cabinet Member) : As a follow up to our conversation today, attached you will find a copy of the Consumer Advocate Bill, S.200, and a budget bureau summary of the bill. The President has asked the Domestic Council to develop alternatives to the above bill and we would like to get your ideas to the President before he departs on Saturday. Accordingly, could I please have your thoughts on the following three points by 3:00 p.m. tomorrow afternoon - Friday, March 28? 1. We need to know what specific efforts you are making now to better represent the consumer in your department's decisions and activities? 2. What additional efforts you might take to better represent the consumer in your department's decisions and activities? 3. What regulatory reforms would you suggest to assist the consumer? Thank you. Sincerely, James M. Cannon Assistant to the President for Domestic Affairs Dear (Cabinet Member) : have is As a follow up to our conversation today, attached you will find a copy of the Consumer Advocate Bill, S.200, and a budget bureau summary of the bill. The President has asked the Domestic Council to develop alternatives to the drove bill and we would like to get your ideas to the President before he departs on Saturday. - by phone 00 meno - Accordingly, could I please have your thoughts on the following three points by 3:00 p.m. tomorrow afternoon - Friday, March 28? 1. We need to know what specific efforts you are making now to better represent the consumer in your department's decisions and activities? 2. What additional efforts cinced you might take to better represent the consumer in your department's decisions and activities? 3. What regulatory reforms would you suggest to assist the consumer? Mony Thank your Sincerely, FORD LIBRARY y BERALD James M. Cannon Assistant to the President for Domestic Affairs DRAFT NOTES FOR TALKING TO CABINET MEMBERS The Consumer Advocate Bill discussed yesterday at the Cabinet Meeting, S.200, may be reported out right after the Congressional Recess. The President has asked the Domestic Council to develop alternatives. I am sending over by messenger today, a copy of S.200, and a budget bureau summary of the bill. Section 6, beginning on Page 12 of the bill specifically authorizes the Consumer Advocacy Agency to intervene in behalf of a consumer's interest it if he can define/in your department's proceedings and activities. This bill has tremendous support in the Senate and probably will have in the House. The President has directed the Domestic Council to develop alternatives. FORD LIBRARY 'If 2 One thing we need to know is what specific efforts you are making now to better represent the consumer in your department's decisions and activities? Secondly, what are additional efforts you might take to better represent the consumer in your department's decisions and activities? Thirdly, what regulatory reforms would you suggest to assist the consumer? We are trying to get your ideas to the President before he leaves on Saturday. It would be very helpful to us if you could have your thoughts on these three points D(Lc back to us by 3:00 p.m. tomorrow afternoon. THE WHITE HOUSE WASHINGTON March 27, 1975 Dear : As a follow up to our conversation today, here is a copy of the Consumer Advocate Bill, S.200, and a summary of the bill. The President has asked the Domestic Council to develop alternatives for consumer protection, and we would like to get your ideas to the President before he departs on Saturday. Accordingly, could I please have your thoughts -- by phone or memo -- on the following four points by 3:00 p.m. tomorrow afternoon - Friday, March 28? 1. What specific problems does the bill present to your department? 2. We need to know what specific efforts you are making now to better represent the consumer in your department's decisions and activities? 3. What additional efforts could you take to better represent the consumer in your department's decisions and activities? 4. What regulatory reforms would you suggest to assist the consumer? Many thanks. Sincerely, LIBRARY James M. Cannon Assistant to the President for Domestic Affairs Enclosures HAND CARRIED BY SPECIAL MESSENGER Departed JMC's Office 3:40 p.m. Thurs., March 27, 1975 The Honorable William E. Simon Secretary of the Treasury Department of the Treasury 15 th and Pennsylvania Avenue Washington, D.C. 26220 Attention: Mr John Gartland The Honorable Edward H. Levi Attorney General Department of Justice Room 5111 Constitution and Tenth Streets, N.W. Washington, D.C. 20530 The Honorable Rogers C.B. Morton Department of the Interior Room 6151 C Street between 18th and 19th Streets Washington, D.C. 20240 ATTENTION: Mr. John Whitaker The Honorable Earl L. Butz Secretary of Agriculture Room 200 A Administration 14th and Independence Avenue S.W. Washington, D.C. 20250 The Honorable John K. Tabor Acting Secretary of Commerce Department of Commerce 14th Street between Constitution and E. Streets Room 5425 Washington, D.C. The Honorable John T. Dunlop Secretary of Labor Department of Labor Room 3136 14th and Constitution Avenue N.W. Washington, D.C. 20210 The Honorable Casper W. Weinberger Secretary of Health, Education, and Welfare 330 Independence Avenue S.W. Washington, D.C. page 2 The Honorable Carla Anderson Hills Secretary of Housing and Urban Development Department of Housing and Urban Development 451 Seventh Street, S.W. Washington, D.C. 20410 The Honorable William T. Coleman Secretary of Transportation Department of Transportation 400 Seventh Street, S.W. Room 10000 Washington, D.C. 20590 The Honorable Frank G. Zarb Energy Resources Council Federal Energy Administration Room 3400 Twelvth and Pennsylvania Avenue Washington, D.C. 20461 The Honorable Russell Train Administrator Environmental Protection Agency 401 M Street S.W. Room 1201 West Tower Washington, D.C. 20460 THE WHITE HOUSE WASHINGTON March 27, 1975 Dear : As a follow up to our conversation today, here is a copy of the Consumer Advocate Bill, S.200, and a summary of the bill. The President has asked the Domestic Council to develop alternatives for consumer protection, and we would like to get your ideas to the President before he departs on Saturday. Accordingly, could I please have your thoughts -- by phone or memo -- on the following four points by 3:00 p.m. tomorrow afternoon - Friday, March 28? 1. What specific problems does the bill present to your department? 2. We need to know what specific efforts you are making now to better represent the consumer in your department's decisions and activities? 3. What additional efforts could you take to better represent the consumer in your department's decisions and activities? 4. What regulatory reforms would you suggest to assist the consumer? Many thanks. Sincerely, James M. Cannon Assistant to the President for Domestic Affairs Enclosures HAND CARRIED BY SPECIAL MESSENGER Departed JMC's Office 3:40 p.m. Thurs., March 27, 1975 The Honorable William E. Simon Secretary of the Treasury Department of the Treasury 15 th and Pennsylvania Avenue Washington, D.C. 26220 Attention: Mr John Gartland The Honorable Edward H. Levi Attorney General Department of Justice Room 5111 Constitution and Tenth Streets, N.W. Washington, D.C. 20530 The Honorable Rogers C.B. Morton Department of the Interior Room 6151 C Street between 18th and 19th Streets Washington, D.C. 20240 ATTENTION: Mr. John Whitaker The Honorable Earl L. Butz Secretary of Agriculture Room 200 A Administration 14th and Independence Avenue S.W. Washington, D.C. 20250 The Honorable John K. Tabor Acting Secretary of Commerce Department of Commerce 14th Street between Constitution and E. Streets Room 5425 Washington, D.C. The Honorable John T. Dunlop Secretary of Labor Department of Labor Room 3136 14th and Constitution Avenue N.W. Washington, D.C. 20210 The Honorable Casper W. Weinberger Secretary of Health, Education, and Welfare 330 Independence Avenue S.W. Washington, D.C. page 2 The Honorable Carla Anderson Hills Secretary of Housing and Urban Development Department of Housing and Urban Development 451 Seventh Street, S.W. Washington, D.C. 20410 The Honorable William T. Coleman Secretary of Transportation Department of Transportation 400 Seventh Street, S.W. Room 10000 Washington, D.C. 20590 The Honorable Frank G. Zarb Energy Resources Council Federal Energy Administration Room 3400 Twelvth and Pennsylvania Avenue Washington, D.C. 20461 The Honorable Russell Train Administrator Environmental Protection Agency 401 M Street S.W. Room 1201 West Tower Washington, D.C. 20460 FINAL DRAFT THE WHITE HOUSE WASHINGTON March 27, 1975 Dear (Cabinet Member) : As a follow up to our conversation today, enclosed is a copy of the Consumer Advocate Bill, S.200, and a summary of the bill. The President has asked the Domestic Council to develop alternatives for consumer protection, and we would like to get your ideas to the President before he departs on Saturday. Accordingly, could I please have your thoughts - by phone or memo - on the following four points by 3:00 p.m. tomorrow afternoon - Friday, March 28? 1. What specific problems does the bill present to your department? 2. We need to know what specific efforts you are making now to better represent the consumer in your department's decisions and activities? 3. What additional efforts could you take to better represent the consumer in your department's decisions and activities? 4. What regulatory reforms would you suggest to assist the consumer? Many thanks. Sincerely, James M. Cannon Assistant to the President for Domestic Affairs Honorable Enclosures ADDRESSEES: Honorable William E. Simon Dear Bill: The Secretary of the Treasury Room 330 Department of the Treasury Washington, D.C. 20220 The Honorable Edward H. Levi Dear Ed: The Attorney General Room 5115 Department of Justice Washington, D.C. 20630 Rog: The Honorable Rogers C.B. Morton Dear John: The Secretary of the Interior Room 6151 Department of the Interior Washington, D.C. 20240 Attention: John Whitaker The Honorable Earl L. Butz Dear Earl: The Secretary of Agriculture Room 200-A Independence Avenue, Washington, D.C. 20240 The Honorable John K. Tabor Dear John: The Acting Secretary of Commerce Room 5851 Department of Commerce WAshington, D.C. 20330 The Honorable John T. Dunlop Dear John: The Secretary of Labor Department of Labor WAshington, D.C. 20210 The Honorable Caspar Wein berger Dear Cap: The Secretary of Health, Education and Welfare Room 5246, North Building 330 Independence Avenue, S.W. Washington, D.C. 20201 GERALD FORD VERARY 2 or Dear Carla: The Honorable Carla A. Hills The Secretary of Housing and Urban Development Department of Housing and Urban Development 471 7th Street, S.W. WAshington, D.C. 20410 The Honorable William T. Coleman Dear Bill: The Secretary of Transportation Department of Transportation Washington, D.C. 20590 The Honorable Frank Zarb Dear Frank: Administrator Federal Energy Agency Honorable Russell Train Dear Russ: Administrator, Environmental Protection Agency Commer THE CABINET Secretary of the Treasury William E. Simon Attorney General Edward H. Levi Secretary of the Interior Rogers C.B. Morton Sehr Whiter Secretary of Agriculture Earl L. Butz Secretary of Commerce (Vacant) Secretary of Labor John T. Dunlop Secretary of Health, Education, and Welfare Caspar W. Weinberger Secretary of Housing and Carla A. Hills Urban Development Secretary of Transportation William T. Coleman Administrator, Federal Frank Zarb Energy Agency Administrator, Environmental Russell Train Protection Agency THE CABINET OF PRESIDENT GERALD R. FORD (As of March 1975) The Vice President, The Honorable Nelson A. Rockefeller Room 275, Old Executive Office Building Washington, D. C. 20500 The Secretary of State, The Honorable Henry A. Kissinger Room 7226, Department of State, Washington, D. C. 20520 The Secretary of the Treasury, The Honorable William E. Simon Room 330, Department of the Treasury, Washington, D.C. 20220 The Secretary of Defense, The Honorable James R. Schlesinger The Pentagon, Washington, D. C. 20301 The Attorney General, The Honorable Edward H. Levi Room 5115, Department of Justice Washington, D. C. 20630 The Secretary of The Interior, The Honorable Rogers C. B. Morton Room 6151, Department of The Interior, Washington, D. C. 20240 The Secretary of Agriculture, The Honorable Earl L. Butz Room 200-A, Independence Avenue, Washington, D. C. 20250 The Server of Commerce, The Honorable John K. Tabor Room 5851, Department of Commerce, Washington, D. C. 20330 The Secretary of Labor, The Honorable John T. Dunlop Department of Labor, Washington, D. C. 20210 The Secretary of Health, Education and Welfare, The Honorable Caspar Weinberger Room 5246, North Building, 330 Independence Avenue, S. W., Washington, D.C. 20201 The Secretary of Housing and Urban Development, The Honorable Carla A. Hills Department of Housing and Urban Development, 471 7th Street, S. W., Washington, D.C. 20410 The Secretary of Labor, The Honorable William T. Coleman Department of Transportation, Washington, D. C. 20590 94TH CONGRESS 1ST SESSION S. 200 IN THE SENATE OF THE UNITED STATES JANUARY 17, 1975 Mr. RIBICOFF (for himself, Mr. PERCY, Mr. JAVITS, Mr. MAGNUSON, Mr. CRAN- STON, Mr. Moss, Mr. WEICKER, Mr. ABOUREZK, Mr. BAYH, Mr, BIDEN, Mr, Mr. BROOKE, Mr. CASE, Mr. CLARK, Mr. CULVER, Mr. FORD, Mr. GRAVEL, Mr. GARY W. HART, Mr. PHILIP A. HART, Mr. HASKELL, Mr. HATFIELD, Mr. HATHAWAY, Mr. HUMPHREY, Mr. INOUYE, Mr. JACKSON, Mr. KENNEDY, Mr. LEAHY, Mr. MATHIAS, Mr. McGEE, Mr. McGovern, Mr. MONDALE, Mr. MUSKIE, Mr. NELSON, Mr. PASTORE, Mr. PROXMIRE, Mr. STAFFORD, Mr. STEVENSON, Mr. STONE, Mr. TUNNEY, and Mr. WILLIAMS) introduced the following bill; which was read twice and referred to the Committee on Government Operations A BILL To establish an independent consumer agency to protect and serve the interest of consumers, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Consumer Protection Act 4 of 1975" 5 STATEMENT OF FINDINGS AND PURPOSES 6 SEC. 2. (a) The Congress finds that the interests of FORO LIBRARY 7 consumers are inadequately represented and protected within 8 the Federal Government; and that vigorous representation VII-O 2 3 1 and protection of the interests of consumers are essential to 1 supersede, supplant, or replace the jurisdiction, functions, or 2 the fair and efficient functioning of a free market economy. 2 powers of any other agency to discharge its own statutory 3 Each year, as a result of this lack of effective representation 3 responsibilities according to law. 4 before Federal agencies and courts, consumers suffer per- 4 (3) It is the purpose of this Act to promote protection 5 sonal injury, economic harm, and other adverse consequences 5 of consumers with respect to the- 6 in the course of acquiring and using goods and services 6 (A) safety, quality, purity, potency, healthfulness, 7 available in the marketplace. 7 durability, performance, repairability, effectiveness, de- 8 (b) The Congress therefore declares that- 8 pendability, availability, and cost of any real or personal 9 (1) A governmental organization to represent the 9 property or tangible or intangible goods, services, or 10 interests of consumers before Federal agencies and courts 10 credit; 11 could help the agencies in the exercise of their statutory 11 (B) preservation of consumer choice and a com- 12 responsibilities in a manner consistent with the public interest 12 petitive market; 13 and with effective and responsive government. It is the 13 (C) prevention of unfair or deceptive trade 14 purpose of this Act to protect and promote the interests 14 practices; 15 of the people of the United States as consumers of goods 15 (D) maintenance of truthfulness and fairness in the 16 and services which are made available to them through 16 advertising, promotion, and sale by a producer, distrib- 17 commerce or which affect commerce by SO establishing an 17 utor, lender, retailer, or other supplier of such property, 18 independent Agency for Consumer Advocacy. 18 goods, services, and credit; 19 (2) It is the purpose of the Agency for Consumer 19 (E) furnishing of full, accurate, and clear instruc- 20 Advocacy to represent the interests of consumers before 20 tions, warnings, and other information by any such 21 Federal agencies and courts, receive and transmit consumer 21 supplier concerning such property, goods, services, and 22 complaints, develop and disseminate information of interest 22 credit; and 23 to consumers, and perform other functions to protect and 23 (F) protection of the legal rights and remedies 24 promote the interests of consumers. The authority of the 24 of consumers. 25 Agency to carry out this purpose shall not be construed to 25 (4) This Act should be SO interpreted by the executive 5 4 1 by the President for inefficiency, neglect of duty or malfea- 1 branch and the courts so as to implement the intent of Con- 2 sance in office. 2 gress to protect and promote the interests of consumers; and 3 (b) No employee of the Agency while serving in such 3 to achieve the foregoing purposes. 4 position may engage in any business, vocation, other em- 4 ESTABLISHMENT 5 ployment, or have other interests, inconsistent with his of- 5 SEC. 3. (a) There is hereby established as an independ- 6 ficial responsibilities. 6 ent agency of the United States within the executive branch 7 (c) There shall be in the Agency a General Counsel 7 of the Government the Agency for Consumer Advocacy. The 8 who shall be appointed by the Administrator. 8 Agency shall be directed and administered by an Adminis- 9 (d) The Administrator is authorized to appoint within 9 trator who shall be appointed by the President, by and with 10 the Agency not to exceed five Assistant Administrators. 10 the advice and consent of the Senate, for a term ooterminous 11 POWERS AND DUTIES OF THE ADMINISTRATOR 11 with the term of the President, not to exceed four years. The 12 SEC. 4. (a) The Administrator shall be responsible for 12 Administrator shall be an individual who by reason of train- 13 the exercise of the powers and the discharge of the duties of 13 ing, experience, and attainments is exceptionally qualified to 14 the Agency, and shall have the authority to direct and su- 14 represent the interests of consumers. There shall be in the 15 pervise all personnel and activities thereof. 15 Agency a Deputy Administrator who shall be appointed by 16 (b) In addition to any other authority conferred upon 16 the President, by and with the advice and consent of the 17 him by this Act, the Administrator is authorized, in carrying 17 Senate. The Deputy Administrator shall perform such func- 18 out his functions under this Act, to- 18 tion, powers, and duties as may be prescribed from time to 19 (1) subject to the civil service and classification 19 time by the Administrator and shall act for, and exercise the 20 laws, select, appoint, employ, and fix the compensation 20 powers of, the Administrator during the absence or disability 21 of such officers and employees as are necessary to carry 21 of, or in the event of a vacancy in the office of, the Adminis- 22 out the provisions of this Act and to prescribe their aú- 22 trator. On the expiration of his term, the Administrator shall 23 thority and duties; 23 continue in office until he is reappointed or his successor is 24 (2) employ experts and consultants in accordance 24 appointed and qualifies. The Administrator may be removed 6 7 1 with section 3109 of title 5, United States Code, and 1 committee, subject to such reasonable rules or regula- 2 compensate individuals SO employed for each day (in- 2 tions as the Administrator may prescribe; 3 cluding traveltime) at rates not in excess of the maxi- 3 (4) promulgate, in accordance with the applicable 4 mum rate of pay for Grade GS-18 as provided in section 4 provisions of the Administrative Procedure Act, title 5, 5 5332 of title 5, United States Code, and while such ex- 5 United States Code, such rules, regulations, and proce- 6 perts and consultants are SO serving away from their 6 dures as may be necessary to carry out the provisions of 7 homes or regular place of business, pay such employees 7 this Act, and assure fairness to all persons affected by the 8 travel expenses and per diem in lieu of subsistence at 8 Agency's actions, and to delegate authority for the per- 9 rates authorized by section 5703 of title 5, United States 9 formance of any function to any officer or employee 10 Code, for persons in Government service employed in- 10 under his direction and supervision; 11 termittently; 11 (5) utilize, with their consent, the services, per- 12 (3) appoint advisory committees composed of such 12 sonnel, and facilities of other Federal agencies and of 13 private citizens and officials of the Federal, State, and 14 State, regional, local, and private agencies and instru- 14 local governments as he deems desirable to advise him 15 mentalities, with or without reimbursement therefor, and 15 with respect to his functions under this Act, and pay 16 to transfer funds made available under this Act to Fed- 16 such members (other than those regularly employed by 17 eral, State, regional, local, and private agencies and 17 the Federal Government) while attending meetings of 18 instrumentalities as reimbursement for utilization of such 18 such committees or otherwise serving at the request of 19 services, personnel, and facilities; 19 the Administrator compensation and travel expenses at 20 (6) enter into and perform such contracts, leases, 20 the rate provided for in paragraph (2) of this subsection 21 cooperative agreements, or other transactions as may 21 with respect to experts and consultants: Provided, That 22 be necessary to carry out the provisions of this Act, on 22 all meetings of such committees shall be open to the 23 such terms as the Administrator may deem appropriate, 23 public and interested persons shall be permitted to at- 24 with any agency or instrumentality of the United States, 24 tend, appear before, or file statements with any advisory 8 9 1 with any State, or any political subdivision. thereof, or 1 personnel, and facilities available to the greatest practicable 2 with any person; 2 extent within its capability to the Agency in the performance 3 (7) accept voluntary and uncompensated services, 3 of its functions. 4. notwithstanding the provisions of section, 3679 (b) of the 4 (d) The Administrator shall prepare and submit simul- 500mg Revised Statutes (31 U.S.C. 665 (b) ) ; 5 taneously to the Congress and the President, not later than 6 (8) adopt an official seal, which shall be judicially 6 April 1 of each year beginning April 1, 1976, an annual 7: noticed; I report, which shall include a description and analysis of- 8-m (9) establish such regional offices as the Adminis- 8 (1) the activities of the Agency, including its rep- 9 trator determines to be necessary to serve the interests 9 resentation of the interests of consumers before Federal 10 of consumers 10 agencies and Federal courts; 11nd (10) conduct conferences and hearings and other- 11 (2) the major Federal agency actions and Federal 12 bas wise secure data and expression of opinion 12 court decisions affecting the interests of consumers; 13 (11) accept unconditional gifts or donations of 13 (3) the assistance given the Agency by other Fed- 14.00 miservices, money or, property, real, personal, or mixed, 14 eral agencies in carrying out the purposes of this Act; 15 tangible or intangible 15 (4) the performance of Federal agencies and the 16. 12) designate representatives to serve {or assist on 16 adequacy of their resources in enforcing consumer pro- 17.00 In such committees as he may, determine to be necessary to: 17 tection laws and in otherwise protecting the interests of 18 maintain effective liaison with Federal agencies and with 18 consumers, and the prospective results of alternative 19 State and local agencies carrying out programs and activ- 19 consumer protection programs; 20mm ities: related to the interests of consumers; and 20 (5) the appropriation by Congress for the Agency, 21, (13) perform such other administrative activities as 21 the distribution of appropriated funds for the current be necessary for the effective fulfillment, of his duties 22 fiscal year, and a general estimate of the resource re- 23mm2 and functions 23 quirements of the Agency for each of the next three 24 (c) Upon request made by the Administrator, each Fed- 24 fiscal years; and 25 eral agency is authorized and directed to make its services, S. 200-2 10 11 1 (6) the extent of participation by consumers in 1 operation of the Federal Government in the protection 2 Federal agency activities, and the effectiveness of the 2 and promotion of the interests of consumers; 3 representation of consumers before Federal agencies, 3 (4) obtain information and publish and distribute 4 together with recommendations for new legislation, new 4 material developed in carrying out his responsibilities 5 budget authority for the Agency, and administrative 5 under this Act in order to inform consumers of mat- 6 actions to deal with problems discussed in the report, 6 ters of interest to them, to the extent authorized in 7 to protect and represent the interests of consumers more 7 this Act; 8 effectively, and to carry out the purposes of this Act. 8 (5) receive, transmit to the appropriate agencies 9 FUNCTIONS OF THE AGENCY 9 and persons, and make publicly available consumer 10 SEC. 5. (a) The Agency shall, in the performance of 10 complaints to the extent authorized in section 7 of 11 its functions, advise the Congress and the President as to 11 this Act. 12 matters affecting the interests of consumers; and shall pro- 12 (6) conduct conferences, surveys, and investiga- 13 tect and promote the interests of the people of the United 13 tions, including economic surveys, concerning the needs, 14 States as consumers of goods and services made available 14 interests, and problems of consumers: Provided, That 15 to them through the trade and commerce of the United 15 such conferences, surveys, or investigations are not 16 States. 16 duplicative in significant degree of similar activities con- 17 (b) The functions of the Administrator shall be to— 17 ducted by other Federal agencies; 18 (1) represent the interests of consumers before 18 (7) cooperate with State and local governments 19 Federal agencies and courts to the extent authorized by 19 and encourage private enterprise in the promotion and 20 this Act; 20 protection of the interests of consumers; 21 (2) conduct and support research, studies, and 21 (8) keep the appropriate committees of Congress 22 testing to the extent authorized in section 9 of this Act; 22 fully and currently informed of all the Agency's activi- 23 (3) submit recommendations annually to the Con- 23 ties, when asked or on his own initiative; 24 gress and the President on measures to improve the 24 (9) publish, in language readily understandable by 12 13 1 consumers, a consumer register which shall set forth the 1 provided in paragraph (2) or (3) of this subsection. In 2 time, place, and subject matters of actions by Congress, 2 any proceeding, the Administrator shall refrain from inter- 3 Federal agencies, and Federal courts, and other infor- 3 vening as a party, unless he determines that such interven- 4 mation useful to consumers; 4 tion is necessary to represent adequately an interest of 5 (10) encourage the adoption and expansion of effec- 5 consumers. The Administrator shall comply with Federal 6 tive consumer education programs; 6 agency statutes and rules of procedure of general applicabil- 7 (11) encourage the application and use of new 7 ity governing the timing of intervention or participation in 8 technology, including patents and inventions, for the 8 such proceeding or activity and, upon intervening or partic- 9 promotion and protection of the interests of consumers; 9 ipating therein, shall comply with laws and agency rules 10 (12) encourage the development of informal dis- 10 of procedure of general applicability governing the conduct 11 pute settlement procedures involving consumers; 11 thereof. The intervention or participation of the Adminis- 12 (13) encourage meaningful participation by con- 12 trator in any Federal agency proceeding or activity shall 13 sumers in the activities of the Agency; 13 not affect the obligation of the Federal agency conducting 14 (14) promote the consumer interests of farmers in 14 such proceeding or activity to assure procedural fairness to 15 obtaining a full supply of goods and services at a fair 15 all participants. 16 and equitable price; and 16 (2) Whenever the Administrator determines that the 17 (15) perform such other related activities as he 17 result of any Federal agency proceeding which is subject 18 deems necessary for the effective fulfillment of his duties 18 to the provisions of section 553, 554, 556, or 557 of title 5, 19 and functions. 19 United States Code, relating to administrative procedure, or 20 REPRESENTATION OF.CONSUMERS 20 which involves a hearing pursuant to the administrative 21 SEC. 6. (a) (1) Whenever the Administrator deter- 21 procedural requirements of any other statute, regulation, or 22 mines that the result of any Federal agency proceeding or 22 practice, or which is conducted on the record after oppor- 23 activity may substantially affect an interest of consumers, he 23 tunity for an agency hearing, or which provide for public 24 may as of right intervene as a party or otherwise participate 24 notice and opportunity for comment, may substantially affect 25 for the purpose of representing an interest of consumers, as 25 an interest of consumers, he may as of right intervene as a 14 15 1 party or otherwise participate for the purpose of representing 1 manner prescribed by law, initiate any civil proceeding in 2 an interest of consumers in such proceeding. 2 a Federal court which involves the review of a Federal 3 (3) With respect to any Federal agency proceeding not 3 agency action that the Administrator determines may sub- 4 covered by paragraph (2) of this subsection, or any other 4 stantially affect an interest of consumers. If the Administrator 5 Federal agency activity, which the Administrator determines 5 did not intervene or otherwise participate in the Federal 6 may substantially affect an interest of consumers, the Ad- 6 agency proceeding or activity out of which such agency 7 ministrator may participate by presenting written or oral 7 action arose, the Administrator, before initiating a proceed- 8 submissions, and the Federal agency shall give full consid- 8 ing to obtain judicial review, shall petition such agency for 9 cration to such submissions of the Administrator. Such sub- 9 rehearing or reconsideration thereof, if the statutes or rules 10 missions shall be presented in an orderly manner and with- 10 governing such agency specifically authorize rehearing or 11 out causing undue delay. Such submission need not be 11 reconsideration. Such petition shall be filed within sixty days 12 simultaneous with that of any other person. 12 after the Federal agency action involved, or within such 13 (b) At such time as the Administrator determines to 13 longer period as may be allowed by applicable procedures. 14 intervene or participate in a Federal agency proceeding 14 The Administrator may immediately initiate a judicial re- 15 under subsection (a) (2) of this section, he shall issue 15 view proceeding if the Federal agency does not finally act 16 publicly a written statement setting forth his findings under 16 upon such petition within sixty days after the filing thereof, 17 subsection (a) (1), stating concisely the specific interest of 17 or at such earlier time as may be necessary to preserve the 18 consumers to be protected. Upon intervening or participat- 18 Administrator's right to obtain effective judicial review of 19 ing he shall file a copy of his statement in the proceeding. 19 the Federal agency action. Where the Administrator did not 20 (c) To the extent that any person, if aggrieved, would 20 intervene or otherwise participate in the Federal agency 21 by law have such right, the Administrator shall have the 21 proceeding or activity out of which the judicial proceeding 22 right, in accordance with the following provisions of this 22 arises, the court shall determine whether the Administrator's 23 subsection, to initiate or participate in any Federal court 23 initiation of such judicial proceeding pursuant to this sub- 24 proceeding involving a Federal agency action- 24 section would impede the interests of justice. 25 (1) The Administrator may, as of right, and in the 25 (2) The Administrator may, as of right, and in the 16 17 1 manner prescribed by law, intervene or otherwise partici- 1 statement or showing is required by the Federal agency's 2 pate in any civil proceeding in a Federal court which in- 2 rules of procedure) of general relevance and reasonable 3 volves the review or enforcement of a Federal agency 3 scope of the evidence sought, issue such orders, as are 4 action that the Administrator determines may substantially 4 authorized by the Federal agency's statutory powers, for the 5 affect an interest of consumers. 5 copying of documents, papers, and records, summoning of 6 (3) The initiation or other participation of the Ad- 6 witnesses, production of goods and papers, and submission of 7 ministrator in a judicial proceeding pursuant to this sub- 7 information in writing. 8 section shall not alter or affect the scope of review otherwise 8 (g) The Administrator is not authorized to inter- 9 applicable to the agency action involved. 9 vene in proceedings or actions before State or local agencies 10 (d) When the Administrator determines it to be in the 10 and courts. 11 interest of consumers, he may request the Federal agency 11 (h) Nothing in this section shall be construed to prohibit 12 concerned to initiate such proceeding, or to take such other 12 the Administrator from communicating with Federal, State, 13 action, as may be authorized by law with respect to such 13 or local agencies and courts at any time and in any manner 14 agency. If the Federal agency fails to take the action re- 14 consistent with law or agency rules. 15 quested, it shall promptly notify the Administrator of the 15 (i) Each Federal agency shall review its rules of pro- 16 reasons therefor and such notification shall be a matter of 16 cedure of general applicability, and, after consultation with 17 public record. 17 the Administrator, issue any additional rules which may be 18 (e) Appearances by the Agency under this Act shall 18 necessary to provide for the Administrator's orderly inter- 19 be in its own name and shall be made by qualified representa- 19 vention or participation, in accordance with this section, in 20 tives designated by the Administrator. 20 its proceedings and activities which may substantially affect 21 (f) In any Federal agency proceeding in which the 21 the interests of consumers. Each Federal agency shall issue 22 Administrator is intervening or participating pursuant to 22 rules determining the circumstances under which the Admin- 23 subsection (a) (2) of this section, the Administrator is 23 istrator may be allowed to make simultaneous submissions 24 authorized to request the Federal agency to issue, and the 24 under subsection (a) (3) of this section. Any additional 25 Federal agency shall, on a statement or showing (if such S. 200-3 18 19 1 rules adopted pursuant to the requirements of this subsection 1 information to any Federal, State, or local agency which has 2 shall be published in proposed and final form in the Federal 2 the authority to enforce any relevant law or to take appro- 3 Register. 3 priate action. Federal agencies shall keep the Administrator 4 (j) The Administrator is authorized to represent an 4 informed to the greatest practicable extent of any action 5 interest of consumers which is presented to him for his con- 5 which they are taking on complaints transmitted by the 6 sideration upon petition in writing by a substantial number 6 Administrator pursuant to this section. 7 of persons or by any organization which includes a substan- 7 (b) The Administrator shall promptly notify producers, 8 tial number of persons. The Administrator shall notify the 8 distributors, retailers, lenders, or suppliers of goods and serv- 9 principal sponsors of any such petition within a reasonable 9 ices of all complaints of any significance concerning them 10 time after receipt of any such petition of the action taken or 10 received or developed under this section unless the Adminis- 11 intended to be taken by him with respect to the interest of 11 trator determines that to do SO is likely to prejudice or im- 12 consumers presented in such petition. If the Administrator 12 pede an action, investigation, or prosecution concerning an 13 declines or is unable to represent such interest, he shall notify 13 alleged violation of law. 14 such sponsors and shall state his reasons therefor. 14 (c) The Administrator shall maintain a public docu- 15 CONSUMER COMPLAINTS 15 ment room containing, for public inspection and copying 16 SEC. 7. (a) Whenever the Administrator receives from 16 (without charge or at a reasonable charge, not to exceed 17 any person any complaint or other information which 17 cost), an up-to-date listing of all consumer complaints of 18 discloses— 18 any significance which the Agency has received, arranged 19 (1) an apparent violation of law, agency rule or 19 in meaningful and useful categories, together with annota- 20 order, or a judgment, decree, or order of a State or Fed- 20 tions of actions taken in response thereto. Unless the Admin- 21 eral court relating to an interest of consumers; or 21 istrator, for good cause, determines not to make any specific 22 (2) a commercial, trade, or other practice which is 22 complaint available, complaints listed shall be made avail- 23 detrimental to an interest of consumers; 23 able for public inspection and copying: Provided, That- 24 he shall, unless he determines that such complaint or infor- 24 (1) the party complained against has had a reason- 25 mation is frivolous, promptly transmit such complaint or 25 able time to comment on such complaint and such 20 21 1 comment, when received, is displayed together with the 1 cial and trade practices which may adversely affect con- 2 complaint; 2 sumers; and 3 (2) the agency to which the complaint has been 3 (4) notices of Federal hearings, proposed and final 4 referred has had a reasonable time to notify the Admin- 4 rules and orders, and other pertinent activities of Federal 5 istrator what action, if any, it intends to take with re- 5 agencies that affect consumers. 6 spect to the complaint; 6 (b) All Federal agencies which, in the judgment of the 7 (3) the complaint's identity is to be protected 7 Administrators, possess information which would be useful to 8 when he has requested confidentiality. Whenever the 8 consumers are authorized and directed to cooperate with the 9 complainant requests that his identity be protected, or 9 Administrator in making such information available to the 10 the complaint is unsigned, the Administrator shall place 10 public. 11 an appropriate designation on the complaint before 11 STUDIES 12 making it available to the public. 12 SEC. 9. The Administrator is authorized to conduct, 13 CONSUMER INFORMATION AND SERVICES 13 support, and assist research, studies, plans, investigations, 14 SEC. 8. (a) In order to carry out the purposes of this 14 conferences, demonstration projects, and surveys concerning 15 Act the Administrator shall develop on his own initiative, 15 the interests of consumers. 16 and, subject to the other provisions of this Act, gather from 16 INFORMATION GATHERING 17 other Federal agencies and non-Federal sources, and dissemi- 17 SEC. 10. (a) (1) The Administrator is authorized, to 18 nate to the public in such manner, at such times, and in such 18 the extent required to protect the health or safety of con- 19 form as he determines to be most effective, information, 19 sumers, or to discover consumer fraud and substantial eco- 20 statistics, and other data including, but not limited to, 20 nomic injury to consumers, to obtain data by requiring any 21 matter concerning- 21 person engaged in a trade, business, or industry which 22 (1) the functions and duties of the Agency; 22 substantially affects interstate commerce and whose activities 23 (2) consumer products and services; 23 he determines may substantially affect an interest of con- 24 (3) problems encountered by consumers generally, 24 sumers, by general or specific order setting forth with par- 25 including annual reports on interest rates and commer- 25 ticularity the consumer interest involved and the purposes 22 23 1 for which the information is sought, to file with him a report 1 United States within the jurisdiction of which such person 2 or answers in writing to specific questions concerning such ac- 2 is found, or has his principal place of business, shall issue 3 tivities and other related information. Nothing in this sub- 3 an order, on conditions and with such apportionment of costs 4 section shall be construed to authorize the inspection or 4 as it deems just, requiring compliance with a valid order of 5 copying of documents, papers, books, or records, or to compel 5 the Administrator. The district court of the United States 6 the attendance of any person. Nor shall anything in this sub- 6 shall issue such an order upon petition by the Administrator 7 section require the disclosure of information which would 7 or on a motion to quash, and upon the Administrator's car- 8 violate any relationship privileged according to law. Where 8 rying the burden of proving in court that such order is for 9 applicable, chapter 35 of title 44, United States Code, shall 9 information that may substantially affect the health or safety 10 govern requests for reports under this subsection in the 10 of consumers or may be necessary in the discovery of sub- 11 manner in which independent Federal regulatory agencies are 11 stantial economic injury to consumers, and is relevant to the 12 subject to its provisions. 12 purposes for which the information is sought, unless the per- 13 (2) The Administrator shall not exercise the authority 13 son to whom the interrogatory or request is addressed shows 14 under paragraph (1) of this subsection if the information 14 that answering such interrogatory or request will be un- 15 sought- 15 necessarily or excessively burdensome. 16 (A) is available as a matter of public record; or 16 (4) The Administrator shall not have the power to re- 17 (B) can be obtained from another Federal agency 17 quire the production or disclosure of any data or other in- 18 pursuant to subsection (b) of this section; or 18 formation under this subsection from any small business. 19 (C) is for use in connection with his intervention in 19 For the purpose of this paragraph, "small business" means 20 any agency proceeding against the person to whom the 20 any person that (A) together with its affiliates, including 21 interrogatory is addressed if the proceeding is pending 21 any other person with whom such person is associated by 22 at the time the interrogatory is requested. 22 means of a franchise agreement, does not have assets exceed- 23 (3) In the event of noncompliance with any interroga- 23 ing $7,500,000, does not have net worth in excess of $2,500,- 24 tories or requests submitted to any person by the Adminis- 24 000, and does not have an average net income, after Federal 25 trator pursuant to paragraph (1), any district court of the 25 income taxes, for the preceding two years in excess of $250,- 24 25 1 000 (average net income to be computed without benefit of 1 (1) information classified in the interest of national 2 any carryover loss), and (B) has had over the preceding 2 defense or national security by an individual authorized 3 two years an average number of full-time employees not in 3 to classify such information under applicable Executive 4 excess of twenty-five. Nothing in this paragraph shall be con- 4 order or statutes, and restricted data whose dissemina- 5 strued to prohibit the Administrator from requesting the vol- 5 tion is controlled pursuant to the Atomic Energy Act 6 untary production of any such data or information. Notwith- 6 (42 U.S.C. 2011 et seq.) ; 7 standing this paragraph, the Administrator shall have the 7 (2) policy and prosecutorial recommendations by 8 power, pursuant to paragraph 1, to obtain information from 8 Federal agency personnel intended for internal agency 9 a small business if necessary to prevent imminent and sub- 9 use only; 10 stantial danger to the health or safety of consumers and the 10 (3) information concerning routine executive and 11 Administrator has no other effective means of action. 11 administrative functions which is not otherwise a matter 12 The Administrator shall, not later than eighteen months 12 of public record; 13 after the date on which this Act becomes effective, submit 13 (4) personnel and medical files and similar files the 14 to Congress a detailed report with respect to the effect of the 14 disclosure of which would constitute a clearly unwar- 15 limitations contained in this paragraph on the purposes of 15 ranted invasion of personal privacy; 16 this Act, for such action as the Congress may deem 16 (5) information which such Federal agency is ex- 17 appropriate. 17 pressly prohibited by law from disclosing to another 18 (b) Upon written request by the Administrator, each 18 Federal agency, including, but not limited to, such ex- 19 Federal agency is authorized and directed to furnish or allow 19 pressly prohibited information contained in or related 20 access to all documents, papers, and records in its possession 20 to examination, operating, or condition reports concern- 21 which the Administrator deems necessary for the perform- 21 ing any individual financial instituton prepared, by, on 22 ance of his functions and to furnish at cost copies of specified 22 behalf of, or for the use of an agency responsible for reg- 23 documents, papers, and records. Notwithstanding this sub- 23 ulation or supervision of financial institutions; 24 section, a Federal agency may deny the Administrator ac- 24 (6) information which would disclose the financial 25 cess to and copies of- 26 27 1 condition of individuals who are customers of financial 1 and commercial or financial information described in section 2 institutions; and 2 552 (b) (4) of title 5, United States Code, the agency shall 3 (7) trade secrets and commercial or financial in- 3 notify the person who provided such information of its in- 4 formation described in section 552 (b) (4) of title 5, 4 tention to do SO and the reasons therefor, and shall, notwith- 5 United States Code— 5 standing section 21 (b), afford him a reasonable opportunity, 6 (A) obtained prior to the effective date of this 6 not to exceed ten days, to comment or seek injunctive relief. 7 Act by a Federal agency, if the agency had agreed 7 Where access to information is denied to the Administrator 8 to treat and has treated such information as privi- 8 by a Federal agency pursuant to this subsection, the head 9 leged or confidential and states in writing to the Ad- 9 of the agency and the Administrator shall seek to find a 10 ministrator that, taking into account the nature of 10 means of providing the information in such other form, or 11 the assurances given, the character of the informa- 11 under such conditions, as will meet the agency's objections. 12 tion requested, and the purpose, as stated by the Ad- 12 (c) Consistent with the provisions of section 7213 of 13 ministrator, for which access is sought, to permit 13 the Internal Revenue Code of 1954 (26 U.S.C. 7213), 14 such access would constitute a breach of faith by the 14 nothing in this Act shall be construed as providing for or au- 15 agency; or 15 thorizing any Federal agency to divulge or to make known 16 (B) obtained subsequent to the effective date of 16 in any manner whatever to the Administrator, solely from an 17 this Act by a Federal agency, if the agency has 17 income tax return, the amount or source of income, profits, 18 agreed in writing as a condition of receipt to treat 18 losses, expenditures, or any particular thereof, or to permit 19 such information as privileged or confidential, on the 19 any Federal income tax return filed pursuant to the provi- 20 basis of its reasonable determination set forth in 20 sions of the Internal Revenue Code of 1954, or copy thereof, 21 writing that such information was not obtainable 21 or any book containing any abstracts or particulars thereof, 22 without such an agreement and that failure to ob- 22 to be seen or examined by the Administrator, except as pro- 23 tain such information would seriously impair per- 23 vided by law. 24 formance of the agency's function. 24 LIMITATIONS ON DISCLOSURES 25 Before granting the Administrator access to trade secrets 25 SEC. 11. (a) No officer or employee of the Agency 28 29 1 shall disclose to the public or to any State or local agency- 1 concerning consumer products and services, shall deter- 2 (1) any information (other than complaints pub- 2 mine that (A) such information, SO far as practicable, 3 lished pursuant to section 7 of this Act) in a form which 3 is accurate, and (B) no part of such information is pro- 4 would reveal trade secrets and commercial or financial 4 hibited from disclosure by law. The Administrator shall 5 information as described in section 552 (b) (4) of title 5 comply with any notice by a Federal agency pursuant 6 5, United States Code, obtained from a person and privi- 6 to section 11 (a) (2) that the information should not be 7 leged or confidential unless the Administrator determines 7 made available to the public or should be disclosed only 8 that the release of such information is necessary to pro- 8 in a particular form or manner. 9 tect health or safety; or 9 (2) In the dissemination of any test results or other 10 (2) any information which was received solely 10 information which directly or indirectly disclose product 11 from a Federal agency when such agency has notified 11 names, it shall be made clear that (A) not all products 12 the Administrator that the information is within the 12 of a competitive nature have been tested, if such is the 13 exceptions stated in section 552 (b) of title 5, United 13 case, and (B) there is no intent or purpose to rate prod- 14 States Code, and the Federal agency has determined 14 ucts tested over those not tested or to imply that those 15 that the information should not be made available to 15 tested are superior or preferable in quality over those 16 the public; except that if such Federal agency has spec- 16 not tested. 17 ified that such information may be disclosed in a par- 17 (3) Notice of all changes in, or any additional 18 ticular form or manner, such information may be dis- 18 information which would affect the fairness of, informa- 19 closed in such form or manner. 19 tion previously disseminated to the public shall be 20 (b) The following additional provisions shall govern 20 promptly disseminated in a similar manner. 21 the release of information pursuant to any authority con- 21 (4) Where the release of information is likely to 22 ferred by this Act, except information released through the 22 cause substantial injury to the reputation or good will of 23 presentation of evidence in a Federal agency or court pro- 23 a person, the Administrator shall notify such person of 24 ceeding pursuant to section 6- 24 the information to be released and afford him a reason- 25 (1) The Administrator, in releasing information 25 able opportunity, not to exceed ten days, to comment or 30 31 1 seek injunctive relief, unless immediate release is neces- 1 statement of the subject at issue and a summary of pro- 2 sary to protect the health or safety of the public. The 2 posed measures concerning such subject; and 3 district courts of the United States shall have jurisdiction 3 (2) such other relevant notice and information, the 4 over any action brought for injunctive relief under this 4 provision of which would not be unreasonably burden- 5 subsection, or under section 10 (b) (7). 5 some to the agency and which would facilitate the Ad- 6 (c) In any suit against the Administrator to obtain 6 ministrator's timely and effective intervention or partici- 7 information pursuant to the provisions of section 552 of title 7 pation under section 6 of this Act. 8 5, United States Code, where the sole basis for the refusal to 8 (c) Nothing in this section shall affect the authority 9 produce the information is that another Federal agency has 9 or obligations of the Administrator or any Federal agency 10 specified that the documents not be disclosed in accordance 10 under section 10 (b) of this Act. 11 with the provisions of subsection (a) (2) of this section, the 11 SAVING PROVISIONS 12 other Federal agency shall be substituted as the defendant, 12 Sec. 13. (a) Nothing in this Act shall be construed to 13 and the Administrator shall thereafter have no duty to defend 13 affect the duty of the Administrator of General Services to 14 such suit. 14 represent the interests of the Federal Government as a con- 15 NOTICE 15 sumer pursuant to section 201 (a) (4) of the Federal Prop- 16 SEC. 12. (a) Each Federal agency considering any 16 erty and Administrative Services Act of 1949 (40 U.S.C. 17 action which may substantially affect an interest of consum- 17 481 (a) (4) ) 18 ers shall, upon request by the Administrator, notify him of 18 (b) Nothing in this Act shall be construed to relieve 19 any proceeding or activity at such time as public notice is 19 any Federal agency of any responsibility to protect and 20 given. 20 promote the interests of consumers. 21 (b) Each Federal agency considering any action which 21 (c) Nothing in this Act shall be construed to limit the 22 may substantially affect an interest of consumers shall, upon 22 right of any consumer or group or class of consumers to 23 specific request by the Administrator, promptly provide FORD LIBRARY 23 initiate, intervene in, or otherwise participate in any Federal 24 him with- 24 agency or court proceeding or activity, nor to require any 25 (1) a brief status report which shall contain a 25 petition or notification to the Administrator as a condition 32 33 1 precedent to the exercise of such right, nor to relieve any 1 tween the several States and commerce with foreign 2 Federal agency or court of any obligation, or affect its discre- 2 nations; 3 tion, to permit intervention or participation by a consumer 3 (7) "consumer" means any individual who uses, 4 or group or class of consumers in any proceeding or activity. 4 purchases, acquires, attempts to purchase or acquire, or 5 DEFINITIONS 5 is offered or furnished any real or personal property, 6 SEC. 14. As used in this Act, unless the context other- 6 tangible or intangible goods, services, or credit for per- 7 wise requires- 7 sonal, family, agricultural, or household purposes; 8 (1) "Administrator" means the Administrator of 8 (8) "Federal agency" or "agency" means "agency" 9 the Agency for Consumer Advocacy; 9 as defined in section 551 of title 5, United States Code. 10 (2) "Agency" means the Agency for Consumer 10 The term shall include the United States Postal Service, 11 Advocacy; 11 the Postal Rate Commission, and any other authority 12 (3) "agency action" includes the whole or part 12 of the United States which is a corporation and which 13 of an agency "rule," "order," "license," "sanction," 13 receives any appropriated funds, and, unless otherwise 14 "relief," as defined in section 551 of title 5, United 14 expressly provided by law, any Federal agency estab- 15 States Code, or the equivalent or the denial thereof, or 15 lished after the date of enactment of this Act, but shall 16 failure to act; 16 not include the Agency for Consumer Advocacy; 17 (4) "agency activity" means any agency process, 17 (9) "Federal court" means any court of the United 18 or phase thereof, conducted pursuant to any authority or 18 States, including the Supreme Court of the United 19 responsibility under law, whether such process is formal 19 States, any United States court of appeals, any United 20 or informal; 20 States district court established under chapter 5 of title 21 (5) "agency proceeding" means agency "rulemak- 21 28, United States Code, the District Court of Guam, the 22 ing", "adjudication", or "licensing", as defined in section 22 District Court of the United States Customs Court, the 23 551 of title 5, United States Code; 23 United States Court of Customs and Patent Appeals, the 24 (6) "commerce" means commerce among or be- 34 35 1 United States Tax Court, and the United States Court 1 presentation or communication of relevant evidence, 2 of Claims; 2 documents, arguments, or other information. 3 (10) "individual" means a human being; 3 CONFORMING AMENDMENT 4 (11) "interest of consumers" means any health, 4 SEC. 15. (a) Section 5314 of title 5, United States 5 safety, or economic concern of consumers involving real 5 code, is amended by adding at the end thereof the follow- 6 or personal property, tangible or intangible goods, serv- 6 ing: 7 ices, or credit, or the advertising or other description 7 (60) Administrator, Agency for Consumer Ad- 8 thereof, which is or may become the subject of any busi- 8 vocacy." 9 ness, trade, commercial, or marketplace offer or transac- 9 (b) Section 5315 of such title is amended by adding 10 tion affecting commerce, or which may be related to any 10 at the end thereof the following: 11 term or condition of such offer or transaction. Such offer 11 " (100) Deputy Administrator, Agency for Con- 12 or transaction need not involve the payment or promise 12 sumer Advocacy." 13 of a consideration; 13 (c) Section 5316 of title 5, United States Code, is 14 (12) "participation" includes any form of submis- 14 amended by adding at the end thereof the following new 15 sion; 15 paragraphs: 16 (13) "person" includes any individual, corporation, 16 (135) General Counsel, Agency for Consumer 17 partnership, firm, association, institution, or public or 17 Advocacy." 18 private organization other than a Federal agency; 18 " (136) Assistant Administrators, Agency for Con- 19 (14) "State" means each of the several States of 19 sumer Advocacy." 20 the United States the District of Columbia, the Com- 20 EXEMPTIONS 21 monwealth of Puerto Rico, the Virgin Islands, Canal 21 SEC. 16. (a) This Act shall not apply to the Central 22 Zone, Guam, American Samoa, and the Trust Territory 22 Intelligence Agency, the Federal Bureau of Investigation, or 23 of the Pacific Islands; and 23 the National Security Agency, or the national security or in- 24 (15) "submission" means participation through the 24 telligence functions (including related procurement) of the 37 36 1 ried on or receiving Federal assistance under this Act. This 1 Departments of State and Defense (including the Depart- 2 provision will be enforced through agency provisions and 2 ments of the Army, Navy, and Air Force) and the military 3 rules similar to those already established, with respect to 3 weapons program of the Energy Research and Develop- 4 racial and other discrimination, under title VI of the Civil 4 ment Administration, to any agency action in the Federal 5 Rights Act of 1964. However, this remedy is not exclusive 5 Communications Commission with respect to the renewal 6 and will not prejudice or cut off any other legal remedies 6 of any radio or television broadcasting license, or to a 7 available to a person alleging discrimination. 7 labor dispute within the meaning of section 13 of the Act 8 FAIRNESS FOR SMALL BUSINESS 8 entitled "An Act to amend the Judicial Code and to define 9 SEC. 18. (a) It is the sense of the Congress that small 9 and limit the jurisdiction of courts sitting in equity, and for 10 business enterprises should have their varied needs consid- 10 other purposes", approved March 23, 1932 (29 U.S.C. 113) 11 ered by all levels of government in the implementation of 11 or of section 2 of the Labor Management Relations Act (29 12 the procedures provided for throughout this Act. 12 U.S.C. 152), or to a labor agreement within the meaning 13 (b) (1) In order to carry out the policy stated in sub- 13 of section 201 of the Labor Management Relations Act, 1947 14 section (a), the Small Business Administration (A) shall 14 (29 U.S.C. 171) 15 to the maximum extent possible provide small business en- 15 (b) Nothing in this Act shall be construed, and no au- 16 terprises with full information concerning the procedures 16 thority in this Act shall authorize, the Administrator to 17 provided for throughout this Act which particularly affect 17 intervene in any United States Department of Agriculture 18 such enterprises, and the activities of the various agencies 18 proceeding without considering the consumers' interest in an 19 in connection with such provisions, and (B) shall, as part 19 adequate supply of food, and without considering the inter- 20 of its annual report, provide to the Congress a summary of 20 ests of farmers in maintaining an adequate level of income 21 the actions taken under this Act which have particularly af- 21 and production. 22 fected such enterprises. 22 SEX DISCRIMINATION 23 (2) To the extent feasible, the Administrator shall seek 23 SEC. 17. No person shall on the ground of sex be excluded 24 the views of small business in connection with establishing 24 from participation in, be denied the benefits of, or be sub- 25 jected to discrimination under any program or activity car- 38 39 1 the Agency's priorities, as well as the promulgation of rules 1 of the provisions of this Act by the Agency for Consumer 2 implementing this Act. 2 Advocacy. 3 (3) In administering the programs provided for in this 3 (b) Not less than thirty months nor more than thirty- 4 Act, the Administrator shall respond in an expeditious man- 4 six months after the effective date of this Act, the Comp- 5 ner to the views, requests, and other filings by small busi- 5 troller General shall prepare and submit to the Congress a 6 ness enterprises. 6 report on his audit conducted pursuant to subsection (a) 7 (4) In implementing this Act, the Administrator shall, 7 which shall contain, but not be limited to, the following: 8 insofar as practicable, treat all businesses, large or small, in 8 (1) an evaluation of the effectiveness of the Agen- 9 an equitable fashion; due consideration shall be given to the 9 cy's consumer representation activities; 10 unique problems of small business SO as not to discriminate 10 (2) an evaluation of the effect of the activities of 11 or cause unnecessary hardship in the administration or im- 11 the Agency on the efficiency, effectiveness, and proce- 12 plementation of the provisions of this Act. 12 dural fairness of affected Federal agencies in carrying 13 AUTHORIZATION OF APPROPRIATIONS 13 out their assigned functions and duties; 14 SEC. 19. There are authorized to be appropriated to 14 (3) recommendations concerning any legislation 15 carry out the provisions of this Act not to exceed $15,000,- 15 he deems necessary, and the reasons therefor, for im- 16 000 for the fiscal year ending June 30, 1976, not to exceed 16 proving the implementation of the objectives of this Act 17 $20,000,000 for the fiscal year ending June 30, 1977, and 17 as set forth in section 2. 18 not to exceed $25,000,000 for the fiscal year ending June 30, 18 (c) Copies of the report shall be furnished to the Admin- 19 1978. Any subsequent legislation to authorize appropria- 19 istrator of the Agency for Consumer Advocacy, the chairmen 20 tions under this Act for the fiscal year beginning on July 1, 20 of the Senate Committees on Commerce and on Government 21 1978, shall be referred in the Senate to the Committee on 21 Operations, and the chairman of the Committee on Govern- 22 Government Operations and to the Committee on Commerce. 22 ment Operations of the House of Representatives. 23 EVALUATION BY THE COMPTROLLER GENERAL 23 (b) Restrictions and prohibitions under this Act appli- 24 SEC. 20. (a) The Comptroller General of the United 24 cable to the use or public dissemination of information by the 25 States shall audit, review, and evaluate the implementation 25 Agency shall apply with equal force and effect to the General 40 41 1 Accounting Office in carrying out its functions under this 1 intervened or participated may, where judicial review 2 section. 2 of the final agency action is otherwise accorded by law, 3 MISCELLANEOUS PROVISIONS 3 obtain judicial review following such final agency action 4 SEC. 21. (a) Nothing in this Act shall be construed to 4. on the ground that the Administrator's intervention or 5 limit the discretion of any Federal agency or court, within 5 participation resulted in prejudicial error to such party 6 its authority, including a court's authority under Rule 24 of 6 or participant based on the record viewed as a whole; 7 the Federal Rules of Civil Procedure, to grant the Adminis- 7 and 8 trator additional participation in any proceeding or activity, 8 (C) any person who is substantially and adversely 9 to the extent that such additional participation may not be as 9 affected by the Administrator's action pursuant to sec- 10 of right, or to provide additional notice to the Administrator 10 tion 6 (f), 10 (a), or 11 of this Act may obtain judicial 11 concerning any agency proceeding or activity. 11 review, unless the court determines that such judicial 12 (b) (1) No act or omission by the Administrator or any 12 review would be detrimental to the interests, of justice, 13 Federal agency relating to the Administrator's authority 13 (2) For the purposes of this subsection, a determination 14 under sections 6 (a), (d), (f), (i), and (j), 7, 10, 11, and 14 by the Administrator that the result of any agency proceed- 15 12 of this Act shall affect the validity of an agency action or 15 ing or activity may substantially affect an interest of consum- 16 be subject to judicial review: Provided, That- 16 ers or that his intervention in any proceeding is necessary to 17 (A) the Administrator may obtain judicial review 17 represent adequately an interest of consumers shall be 18 to enforce his authority under sections 6 (a), (d), (f) 18 deemed not to be a. final agency action. 19 (i) and (j), 10, and 12 of this Act: Provided, That he 19 TRANSFER OF CONSUMER PRODUCT INFORMATION 20 may obtain judicial review of the Federal agency deter- 20 COORDINATING CENTER 21 mination under section 6 (f) of this Act only after final 21 SEC. 22. (a) All officers, employees, assets, liabilities, 22 agency action and only to the extent that such determi- 22 contracts, property, and records as are determined by the 23 nation affected the validity of such action; 23 Director of the Office of Management and Budget to be em- 24 (B) a party to any agency proceeding or a partic- 24 ployed, held, or used primarily in connection with the func- 25 ipant in any agency activity in which the Administrator 25 tions of the Consumer Product Information Coordinating 42 43 1 Center in the General Services Administration are transferred 1 (4) obtain information from the agency; and 2 to the Agency and all functions of the Administrator of Gen- 2 (5) participate in agency proceedings for the pur- 3 eral Services administered through the Consumer Product 3 pose of representing their interests. 4 Information Coordinating Center are transferred to the 4 Such interpretations, guidelines, standards, criteria, and rules 5 Agency. 5 of procedure shall be published in proposed and final form in 6 (b) (1) Except as provided in paragraph (2) of this 6 the Federal Register. 7 subsection, personnel engaged in functions transferred under 7 (b) Each Federal agency shall take all reasonable meas- 8 this section shall be transferred in accordance with applicable 8 ures to reduce or waive, where appropriate, procedural re- 9 laws and regulations relating to transfer of functions. 9 quirements for individuals for whom such requirements would 10 (2) The transfer of personnel pursuant to this section 10 be financially burdensome, or which would impede or prevent 11 shall be without reduction in classification or compensation 11 effective participation in agency proceedings. 12 for one year after such transfer. 12 (c) Any rules of procedure issued by any Federal 13 PUBLIC PARTICIPATION 13 agency pursuant to this section shall be published in a form 14 SEC. 23. (a) After reviewing its statutory authority and 14 and disseminated in a manner that is designed to inform, 15 rules of procedure, relevant agency and judicial decisions, and 15 and that is able to be understood by, the general public. 16 other relevant provisions of law, each Federal agency shall 16 EFFECTIVE DATE 17 issue appropriate interpretations, guidelines, standards, or 17 SEC. 24. (a) This Act shall take effect ninety calendar 18 criteria, and rules of procedure, to the extent that such rules 18 days following the date on which this Act is enacted, or 19 are appropriate and are not already in effect, relating to the 19 on such earlier date as the President shall prescribe and pub- 20 rights of individuals who may be affected by agency action 20 lish in the Federal Register. 21 to- 21 (b) Any of the officers provided for in this Act may 22 (1) petition the agency for action; 22 (notwithstanding subsection (a) be appointed in the man- 23 (2) receive notice of agency proceedings; 23 ner provided for in this Act at any time after the date of the 24 (3) file official complaints (if appropriate) with 24 enactment of this Act. Such officers shall be compensated 25 the agency; 44 1 from the date they first take office at the rates provided for 2 in this volage ni (6) of 3 Services SEPARABILITY Produpt 4h If anynprovision bE this Act is declared uncon- ,5 stitutional or the applicability thereof to any, person or 6 circumstance is held invalid, the constitutionality and effec- 7. tiveness of the remainder of this Act and the applicability 8 thereof to any persons and circumstances shall not be affected mothereby thereing TOL Sheqmi WII 11 be lo aelin VILA (a) SI 8 ni bedeildung of ini 15 16 18° -Maq bith the 20 of (Six WA sidt ai behivorq lo (d) IS -HAM ni diff lo 100 88 dd³ Malle with the agency: 94TH CONGRESS 1ST SESSION S. 200 A BILL To establish an independent consumer agency to protect and serve the interest of consumers, and for other purposes. By Mr. RIBICOFF, Mr. PERCY, Mr. JAVITS, Mr. MAGNUSON, Mr. CRANSTON, Mr. Moss, Mr. WEICKER, Mr. ABOUREZK, Mr. BAYH, Mr. BIDEN, Mr. BROOKE, Mr. CASE, Mr. CLARK, Mr. CULVER, Mr. FORD, Mr. GRAVEL, Mr. GARY W. HART, Mr. PHILIP A. HART, Mr. HASKELL, Mr. HATFIELD, Mr. HATHAWAY, Mr. HUMPHREY, Mr. INOUYE, Mr. JACKSON, Mr. KENNEDY, Mr. LEAHY, Mr. MATHIAS, Mr. McGEE, Mr. McGovern, Mr. MONDALE, Mr. MUSKIE, Mr. NELSON, Mr. PASTORE, Mr. PROXMIRE, Mr. STAFFORD, Mr. STEVENSON, Mr. STONE, Mr. TUNNEY, and Mr. WILLIAMS JANUARY 17, 1975 Read twice and referred to the Committee on Government Operations Listed below are objectionable provisions found in S. 200, the Consumer Protection Act of 1975: 1. Term of Administrator: Section 3 (a) states that the Administrator of the Agency for Consumer Advocacy (ACA) can be removed from office only for inefficiency, neglect of duty or malfeasance and that his term is coterminous with that of the President. The result of this provision is to effectively insulate the Administrator of the ACA from oversight by the Administration. S. 707, as introduced in the 93rd Congress, had a similar provision which was deleted from the later versions. 2. Simultaneous Budget Submissions: Section 3(d) (5) would preclude OMB oversight and participation in the formulation of the agency's budget and spending as the provision allows the Administrator to submit agency annual reports and appropriation requests simultaneously to the Congress and to the President. 3. Representation of Consumers: Section 6(a) (1) allows the Adminis- trator to participate or intervene in any action which may affect an interest of a consumer. This should be contrasted with S. 707 which arguably required the Administrator to reach a consensus of competing consumer interests. This provision allows the ACA to selectively pick and choose which consumer interest he will represent. His determinations as to which interest of consumers is to be represented are not reviewable by anyone. 4. Informal Activities: As with last year's S. 707, the ACA under S. 200 would be able to monitor all the informal activities of the various Federal agencias. This is especially true in light of the fact that "agency activity" is defined more broadly in S. 200 than it was defined in S. 707 FORD & LIBRARY GERALD (S. 707 defined activity as any "agency process or phase thereof conducted pursuant to any authority or responsibility under law, whether such process is formal or informal, but does mean each particular event within such pro- cess; 11 The underscored portion has been deleted from the definition of agency activity in S. 200.) The affect of ACA involvement in informal activities may very well be to discourage Federal agencies from communicating informally with private enterprise thereby eliminating an important source of information and encouraging regulatory decisions to be made in a vacuum without taking into consideration the problems that businesses face. 5. Dual Prosecution: 6(c) (2) authorizes the ACA to intervene or participate in enforcement proceedings of another Federal agency. This dual prosecution provision is totally inappropriate since it means that a company will have to defend itself in a proceeding with prosecutors represent- ing not only the Federal regulatory agency but also prosecutors representing the ACA. This provision will impact on the recently enacted Warranties/ FTC Improvement Act, One provision of this act will allow the FTC to seek civil penalties of up to $10,000 a day against any person, partnership or corporation which engages in a previously declared unfair or deceptive act or practice. In this regard, officials of the FTC have stated that they will not allow potentially interested parties to intervene in an on-going FTC proceeding to determine that the initial act was in fact unfair and deceptive. Yet the ACA would have full right to intervene in such a pro- ceeding as a dual prosecutor. 6. Judicial Review: Section (c) (1) authorizes the ACA to seek judicial review of any agency action which the Administrator determines in his discretion may affect an interest of consumers. Where the ACA did not participate below it must file a petition for rehearing or reconsideration. Presently most agencies' Rules of Practice make reconsideration available in limited circumstances. For example, often reconsideration is available if the petitioner can show good reason why it was impossible for him to participate in the original proceeding or can show new evidence or changed circumstances. These circumstances would not be applicable to the ACA under its automatic right to seek reconsideration at its own discretion. Consequently, regulatory agencies would have to change their rules in this respect. 7. Anonymous Consumer Complaints: Section 7(c) (3) authorizes the Administrator of the ACA to make public anonymous consumer complaints. A similar provision was contained in S. 707. Fairness dictates that when a complaint is unsigned it should not be made available to the public. 8. Interrogatories: Section 10 (a) (1) authorizes the ACA to issue interrogatories directly to companies whenever the Administrator determines that the information requested is necessary to "protect the safety or health of consumers, or to discover consumer fraud and substantial economic injury to consumers " Such authority is totally inappropriate for an agency whose primary function is advocacy rather than regulation. Further, this section continues to treat the agency as a regulator in that it makes the Federal Reports Act applicable to the ACA in the exact same manner as independent Federal regulatory agencies. Examination of the safeguards contained in Section 10 (a) (2) show then to be totally empty. S. 200 in Section 10(a) (4) "exempts" small business from ACA inter- rogatory authority. However, this exemption is not a total one and the ACA is free to intervene when, in its singular discretion, it determines that such information is needed from small businesses to "prevent imminent and substantial danger to the health or safety of consumers and the Administrator has no other effective means of action,' It should be emphasized that this determination is again within the sole discretion of the ACA. Further, the bill authorizes the ACA to affirmatively lobby for the repeal of this provision within 18 months after enactment. 9. Inter-agency Information Gathering: Section 10(b) generally authorizes the ACA to collect information from other government agencies. The Federal regulatory agency may deny ACA access to information under specified conditions which are narrower than the exemptions now found in the Freedom of Information Act. Of particular interest is Section 10(b) (6) which states that the ACA cannot collect information which would disclose financial conditions of individuals who are customers of financial institutions. This is a change from S. 707 which was not limited to individuals. Further, the ACA will be denied access to trade secrets only when the regulatory agency has gained access to such information under a pledge of confidentiality and only if such information would not have otherwise been available to it. Consequently, it would appear that the ACA will be able to acquire trade secrets from any Federal agency that has subpoena authority. 10. Exemptions: Because of the exemptions found in this bill, it can be duly classified as special interest legislation. broadcast license from theory I Divadcast audienses Of concern also is the labor exemption found in Section 16(a) which exempts all labor disputes from ACA scrutiny. Although it can be argued that many labor disputes do not involve an interest of consumers, some obviously do. For example, an illegal secondary boycott has a direct impact on the cost and availability of consumer goods but such a proceeding would be exempt from ACA purview. GERALD R. FORD Possible Activities for Improving Consumer Representation In Executive Departments I. Broaden Hearing Opportunities. More notice publicity and more encouragement of public to comment. Extend length of hearings to include all interested participants. Utilize hearings in important matters even though not required by law. II. Simplify Comment Procedures. Make it easy and inexpensive for the public to -file written comment. Have some mechanism for acknowledging receipt and assuring due consideration. III. Establish Intra-Agency Appeal Process. Provide a method to insure that all major lower level decisions relating to consumers be reviewed by the Secretary himself. IV. Provide Assurance of Due Consideration. Publicize extensively the mechanisms available for consumer input. Certify that consideration has been given to con- sumer views prior to exercising discretionary powers. V. Streamline Consumer Complaint Handling. Organizationally structure so that it can both: - produce substantive responses in reasonable period of time; and - provide input at policy level based on information derived from complaints. THE WHITE HOUSE WASHINGTON March 27, 1975 Dear : As a follow up to our conversation today, here is a copy of the Consumer Advocate Bill, S.200, and a summary of the bill. The President has asked the Domestic Council to develop alternatives for consumer protection, and we would like to get your ideas to the President before he departs on Saturday. Accordingly, could I please have your thoughts -- by phone or memo -- on the following four points by 3:00 p.m. tomorrow afternoon - Friday, March 28? 1. What specific problems does the bill present to your department? 2. We need to know what specific efforts you are making now to better represent the consumer in your department's decisions and activities? 3. What additional efforts could you take to better represent the consumer in your department's decisions and activities? 4. What regulatory reforms would you suggest to assist the consumer? Many thanks. Sincerely, James M. Cannon Assistant to the President for Domestic Affairs Enclosures HAND CARRIED BY SPECIAL MESSENGER Departed JMC's Office 3:40 p.m. Thurs., March 27, 1975 The Honorable William E. Simon Secretary of the Treasury Department of the Treasury 15 th and Pennsylvania Avenue Washington, D.C. 26220 Attention: Mr John Gartland The Honorable Edward H. Levi Attorney General Department of Justice Room 5111 Constitution and Tenth Streets, N.W. Washington, D.C. 20530 The Honorable Rogers C.B. Morton Department of the Interior Room 6151 C Street between 18th and 19th Streets Washington, D.C. 20240 ATTENTION: Mr. John Whitaker The Honorable Earl L. Butz Secretary of Agriculture Room 200 A Administration 14th and Independence Avenue S.W. Washington, D.C. 20250 The Honorable John K. Tabor Acting Secretary of Commerce Department of Commerce 14th Street between Constitution and E. Streets Room 5425 Washington, D.C. The Honorable John T. Dunlop Secretary of Labor Department of Labor Room 3136 14th and Constitution Avenue N.W. Washington, D.C. 20210 The Honorable Casper W. Weinberger Secretary of Health, Education, and Welfare 330 Independence Avenue S.W. Washington, D.C. page 2 The Honorable Carla Anderson Hills Secretary of Housing and Urban Development Department of Housing and Urban Development 451 Seventh Street, S.W. Washington, D.C. 20410 The Honorable William T. Coleman Secretary of Transportation Department of Transportation 400 Seventh Street, S.W. Room 10000 Washington, D.C. 20590 The Honorable Frank G. Zarb Energy Resources Council Federal Energy Administration Room 3400 Twelvth and Pennsylvania Avenue Washington, D.C. 20461 The Honorable Russell Train Administrator Environmental Protection Agency 401 M Street S.W. Room 1201 West Tower Washington, D.C. 20460 STATE UNITED DEPARTMENTOR DEPARTMENT OF AGRICULTURE OFFICE or THE SECRETARY WASHINGTON. D: C. 20250 March 28, 1975 Subject: Consumer Advocate Bill, S.200 To: James M. Cannon Assistant to the President for Domestic Affairs In response to your request of March 27, 1975, attached are two copies of the Department of Agriculture's answers to your questions. Wallumi a Carbon William A. Carlson, Director Office of Planning and Evaluation FOR OFFICIAL USE ONLY UNITED STATES DEPARTMENT OF AGRICULTURE Comments on S. 200 and Consumer Representation in USDA 1. Impact of S.200 on USDA Programs S. 200 could impact significantly on over 700 USDA regulatory actions, proceedings and decisions, including such actions as -- CCC commodity supply and price support decisions, and CCC inventory operations -- Commodity procurement and distribution operations under Sec. 32 -- Decisions on commodities available and shipped under P.L. 480 -- Export promotion, export credit and market development decisions -- Forest Service timber sales and use permits -- Marketing agreement and order rulemaking -- Regulatory decisions and rulemaking proceedings for packers and stockyards regulations -- Decisions regarding commodity grades and standards -- Ajudication under various statutory authorities for licensing, issuance of cease and desist orders, withdrawal of meat and poultry inspection, etc. -- Appointment of advisory committees -- Decisions on food assistance programs (Food Stamps, food distribution, school lunch program, etc.) -- Decisions on plant and animal disease and pest control programs The adverse effects of the activities of the Agency for Consumer Advocacy would include -- Significant and potentially costly delays in reaching decisions on rules, regulations and program actions -- Possible negation of USDA statutory responsibilities relating to protection of the public and certain industries, with potential danger to health, safety FORD LIBRARY & GERALD -2- and food supplies (many USDA actions are extremely time- sensitive, and unwarranted delays or interruptions can negate program objectives -- such as outbreaks of damaging plant and animal diseases, changes in marketing orders or commodity purchases geared to rapidly changing economic events, etc.) -- Duplication and confused lines of responsibilities for consumer representation (e.g., the Secretary of Agriculture represents the interests of farmers in transportation rate- making proceedings, and in other matters involving farmer interest in supplies and prices of purchased inputs; S. 200 would officially authorize the ACA to represent the same interests of farmers.) -- Substantially increased workload, with requirement for increased Federal employment and budgets 2. USDA Actions to Better Represent Consumers During the past two years USDA has initiated a broad range of actions to improve the opportunities for obtaining informed consumer viewpoints on USDA operations, including -- Established (July 1973) the first full-time consumer affairs specialist reporting directly to the Secretary for any Federal Department -- Initiated consumer-oriented briefings, seminars and conferences on USDA programs, in Washington and the field (typical subjects covered: nutritional labeling, net weight information proposals, milk-marketing orders, export policies, grain reserves, meat marketing margins, etc.) -- Expanded level-of-effort with public information media (TV, Press, Radio, etc.) providing consumer-oriented information kits, TV films and slide sets, special features, reprints, etc.) -- Published special consumer-oriented editions of the annual Agriculture Yearbook -- Conducted a national public opinion survey to measure consumer opinion and understanding about food and agriculture -- Expanded research on food production, food safety and nutrition Feel & LIBRARY GERALD -- Initiated inflationary impact analyses for a broader range of program decisions to assess potential effects on consumer prices -3- -- Reviewed marketing agreement and order programs, and other regulatory programs to identify those with potential for increasing consumer prices -- Enlisted participation by consumer representatives on advisory committees and task forces (e.g., National Industry Cattle Advisory Committee, Nutrition Standards Task Force, Labeling Standards Advisory Committee) -- Enlisted wider participation by consumers and other interest groups in program planning and decisions on the use of the 187 million acres of National Forests. 3. Additional USDA Administrative Actions Being Considered A. Establish an Office of Consumer Affairs in USDA. B. Establish a special national public advisory committee to represent consumer viewpoints to the Secretary of Agriculture C. Add a consumer representative to selected existing USDA public advisory committees that now include farmer and agribusiness representatives D. Review USDA commodity grading and product labeling standards and procedures to assure responsiveness to consumer needs. E. Further expand consumer-oriented public information activities. F. Improve the administrative processes for obtaining consumer viewpoints in key regulatory and rulemaking proceedings. 4. Possible Regulatory Reforms A. Review and revise Federal regulatory policies and procedures that create restrictions, rigidities, and costly inefficiencies in the marketing of agricultural products (e.g., ICC and FTC rules and regulations, labor standards and practices, maritime regulations, etc.). B. Establish formal mechanism in the Executive Office of the President to encourage more effective coordination between Federal regulatory agencies. GERALD FORD LIBRARY