This is the second article of a series exploring the rise and fall of consumer advocacy.
Consumer protection comes from two sources: government regulation and lawsuits.
CONGRESS PASSES A LAW –> REGULATION –> GOVERNMENT MONITORING
The government sets criteria for certain activities. For example, before a prescription drug is released into the market it must undergo a certain number of tests (read my post on the role of the FDA for more info). This government set criteria is called regulation. Consumer protection regulations ensure that there is a free flow of truthful information about products introduced into the marketplace. Since the government cannot monitor everything, it usually relies on the self reporting by companies to access whether these regulations are satisfied.
So our system basically relies on the openness and honesty of profit seeking corporations. This works 95% of the time, however when a company fails to comply with standards resulting in someone being injured then a lawsuit is the only other option. That option is slowly being taken away largely thanks to the US Chamber of Commerce.
US Chamber of Commerce = Not A Government Organization
The US Chamber of Commerce is a lobbying group for some of the nations largest corporations. They are not a government agency. In the early 1990s the US Chamber started an advertising champaign against “frivolous lawsuits”. This campaign is nicely described in the documentary “Hot Coffee”.
The Chamber was successful in convincing the American public that trial lawyers, not corporations, were the problem with the economy. The US Chamber’s marketing campaign resulted in many states enacting limits on money that could be awarded in a lawsuit and negative feelings towards lawyers and injured people.
As a result of over 20 years of anti-lawyer drivel, consumers are now faced with not only limits on the amount of money that can be awarded in a lawsuit in many states but now also the threat of losing their ability to sue large corporations.