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Consumers (3)
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16987753
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Consumers (3)
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James M. Cannon Files (Ford Administration)
James Cannon's Issues Files
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Consumption (Economics)
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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States of America his copyrights in all of his unpublished writings in National Archives collections.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
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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
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-- 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