1973 - GOV (Senate) - Consumer Redress - John V. Tunney (R-CA)

  • (p166-167) - Neil Gendel, Chairperson, San Francisco Consumer Action - I think we have to look at the big picture for just a minute.
    • I noticed a quote from then President Wilson in 1914 when he talked about our Federal Government.
      • He said:  Suppose you go to Washington and try to get to your government. You will always find while you are politely listened to, the men really listened to are the men who have the biggest stake: the big bankers, the big manufacturers, the big masters of commerce. The government of the U.S. at the present is a foster child of special interests.
    • Much more recently, Dr. Denenberg, the commissioner of insurance in Pennsylvania, made the following statement to the Consumer Federation of America.
      • He said, "Government has been the biggest consumer fraud around.”
      • He also said, "Government has been placed on sale to the highest bidder."
    • I think in part what he meant was that consumers expect to be protected and represented by their Government. They are flabbergasted when they find out they aren't. Usually, that's too late.
  • (p174) - Neil Gendel, Chairperson, San Francisco Consumer Action - That is why, as I quoted before, Dr. Denenberg, the Insurance Commissioner of Pennsylvania, indicated he felt the role that regulatory agencies were playing now was almost useless. Even their actual existence sometimes results in a fraud on the consumer. 
  • (p177) - Neil Gendel, Chairperson, San Francisco Consumer Action - In fact, Congress should require that all agencies with comparative price information make that data public in a manner which will enable consumers to make reasonably informed choices between products and services being sold in the marketplace.
    • Our anti-trust laws have failed to make companies compete in terms of price and quality. A strong incentive to reverse this situation is the release of such comparative price data.
    • The Pennsylvania Insurance Commissioner did so and the life insurance industry was turned on its proverbial ear when consumers discovered that some companies are charging twice as much for the exact same service. Industries and their regulators must be stopped from hiding behind claims of confidentiality when it comes to revealing the prices consumers are charged.
    • Senate Bill 1512 appears to be moving in this direction, although I have not had the opportunity to review its current provisions and cannot endorse it for that reason.