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Link to: THE CONSUMER AND SHAREHOLDER
PROTECTION ASSOCIATION ACT. THE NEED FOR AN ORGANIZATION TO PROTECT CONSUMERS AND SHAREHOLDERS The policies and practices of the nation’s large corporations have a critically important impact on the lives of consumers and shareholders. Unfolding scandals involving deceptive and fraudulent practices are causing a loss of public confidence in the integrity and fairness of many corporations and threatening the basic strengths of our economic system. Contributing to the loss of public confidence are revelations of lax oversight and a cozy relationship between the corporations and their regulators at both the federal and state levels of government. The collapse of major corporations resulting from fraudulent practices has caused the loss of jobs of thousands of workers and billions of dollars of their life time savings in 401 (k) plans and pensions. Workers, consumers and families whose livelihoods and futures are threatened by the fraudulent practices of these corporations lack adequate representation before Congress, state legislatures and state and federal regulatory agencies to make their views known and seek remedies. Resources available for representation of consumers, workers and community interests need to be expanded so that in the tradition of self-government citizens can better monitor the performance of state and federal agencies which regulate corporations and become active participants in the public debate concerning the oversight of these corporations.
HOW CAN CITIZENS BE GIVEN A BIGGER AND MORE EFFECTIVE VOICE? Broader and more effective representation of citizens can be accomplished through the establishment of a democratically controlled membership organization—THE CONSUMER AND SHAREHOLDER PROTECTION ASSOCIATION. Congress needs to enact legislation which would authorize the Association to be chartered. The legislation would also require that corporations enclose a notice in billings, statements and related mailings informing consumers of the existence of the Association and inviting them to become members of the organization.
WHAT EVIDENCE IS THERE THAT THE CONCEPT WOULD WORK? In Illinois a similar organization known as the "Citizen Utility Board" was formed by citizens. The CUB organized advocacy groups that gave consumers a voice in the regulatory proceedings which control the monopoly utilities. The result: Illinois consumers saved more than $3 billion on utility bills in eight years and, in addition, helped educate the public about energy conservation. In California, the San Diego CUB received 50,000 memberships from enclosures in the first two utility company billing cycles and within a year had 160,000 active members.
WHAT COULD THE CITIZEN ASSOCIATIONS DO? 1. Represent broad citizen and local community interests before regulatory agencies, legislative bodies, the courts, and in negotiations with providers of financial and other services. 2. Develop data that would provide consumers with the facts needed to deal with problems in the marketplace. 3. Assist citizens as a class in the resolution of consumer complaints. 4. Evaluate the performance of corporations in providing goods and services in a fair manner. 5. Monitor the availability of financial and other services to less affluent and minority citizens. 6. Provide policymakers, workers, shareholders, taxpayers and the news media with information on how corporate and government actions affect citizens.
WHAT CAN YOU DO TO SPEED THE FORMATION OF CITIZEN ASSOCIATIONS?
1. Contact your two U. S. Senators and your Representative in the House of Representatives and ask them to co-sponsor THE CONSUMER AND SHAREHOLDER PROTECTION ASSOCIATION ACT.(S. 3143) 2. Talk to your neighbors and fellow workers and get them to join you in forming a group in support of the citizen organization. |