March, 13 2019, 12:00am EDT
For Immediate Release
Contact:
Mike Stankiewicz, mstankiewicz@citizen.org, (202) 588-7779
David Rosen, drosen@citizen.org, (202) 588-7742
Federal Consumer Protection Enforcement Drops 37 Percent Under President 'Tough-on-Crime' Trump
Enforcement of protection laws at three agencies has fallen steeply under Trump, Public Citizen finds
WASHINGTON
Law enforcement activity at three large U.S. consumer protection agencies has fallen sharply under President Donald Trump - evidence that the White House continues to put corporate interests ahead of the middle class, Public Citizen said today.
A new Public Citizen report, "Consumer Carnage," examined enforcement activity at the U.S. Consumer Financial Protection Bureau (CFPB), Consumer Product Safety Commission (CPSC) and Federal Trade Commission (FTC) regarding cases that resulted in fines of $5,000 or more.
The analysis found that during Trump's first two years in office, these agencies completed a total of 84 enforcement cases combined, a 37 percent decline from 133 cases completed during President Barack Obama's last two years in office.
More specifically, Public Citizen found that enforcement activity against corporations:
- Sank by more than 50 percent at the CFPB once the Trump administration assumed control over the agency in late 2017. The CFPB completed 11 enforcement actions in 2018 under Trump-appointed leadership, compared with 24 the prior year, when the CFPB was led by an Obama-appointed official.
- Fell to only seven cases at the CPSC during Trump's first two years in office, compared with 13 cases in Obama's final two years.
"Members of the Trump administration have made abundantly clear they perceive their function as serving and assisting corporations instead of holding them accountable for lawbreaking," said Robert Weissman, president of Public Citizen. "Under this president, federal agencies have slashed fines, declined to bring cases against corporate wrongdoers and gutted enforcement programs. The result is a government that is eager to throw consumers under the bus."
The change at the CFPB has been especially egregious. Public Citizen found that under Trump, the CFPB has moved to terminate investigations, settled cases, lowered fines or imposed no fines at all in at least 10 instances. In one recent case, the CFPB fined a lender accused of swindling veterans out of their benefits just one dollar after the lender claimed he couldn't pay.
At the CPSC, two Democrats on the commission have written strong dissents to the agency's settlements in cases involving defective jogging strollers whose front wheels could detach suddenly during use (at least 50 children and 47 adults were injured) and trash cans whose back protective collars could become dislodged, exposing a sharp edge (at least 60 people have been injured). And the FTC has yet to sanction Facebook over potential violations of a 2011 FTC consent decree over privacy issues.
For the report, Public Citizen examined enforcement cases at the three agencies from 2015 through 2018 and used the Violation Tracker database compiled by the Corporate Research Project of Good Jobs First.
"Trump's appointees' apparent belief that enforcement of consumer protection laws should be a last resort represents a dramatic about-face from Trump's claim of populism during his campaign," said Alan Zibel, research director for Public Citizen's Corporate Presidency Project. "Trump, who once asserted that he was 'not going to let Wall Street get away with murder,' now is allowing industry after industry to get away with just about anything."
Read the report (PDF).
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
(202) 588-1000LATEST NEWS
Texas Lawsuit Against New York Doctor Tests Abortion Provider Shield Laws
"It is important to remember that Dr. Carpenter did nothing wrong," said one legal expert. "Texas is trying to apply its laws extraterritorially."
Dec 13, 2024
"Time for shield laws to hold strong," said one reproductive rights expert on Friday as Texas Attorney General Ken Paxton announced a first-of-its-kind lawsuit against an abortion provider in New York.
Paxton is suing Dr. Margaret Daley Carpenter, co-founder of the Abortion Coalition for Telemedicine (ACT), for providing mifepristone and misoprostol to a 20-year-old resident of Collin County, Texas earlier this year.
ACT was established after the U.S. Supreme Court overturned Roe v. Wade in 2022, with the intent of helping providers in "shielded states"—those with laws that provide legal protection to doctors who send abortion pills to patients in states that ban abortion, as Carpenter did.
New York passed a law in 2023 stipulating that state courts and officials will not cooperate if a state with an abortion ban like Texas' tries to prosecute a doctor who provides abortion care via telemedicine in that state, as long as the provider complies with New York law.
Legal experts have been divided over whether shield laws or state-level abortion bans should prevail in a case like the one filed by Paxton.
"What will it mean to say for the GOP to say abortion should be left to the states now?"
"It is important to remember that Dr. Carpenter did nothing wrong," said Greer Donley, a legal expert and University of Pittsburgh law professor who specializes in reproductive rights. "She followed her home state's laws."
The Food and Drug Administration also allows telehealth abortion care, "finding it safe and effective," Donley added. "Texas is trying to apply its laws extraterritorially."
In the Texas case, the patient was prescribed the pills at nine weeks pregnant. Mifepristone and misoprostol are approved for use through the 10th week of pregnancy and are more than 95% effective.
The patient experienced heavy bleeding after taking the pills and asked the man who had impregnated her to take her to the hospital. The lawsuit suggests that the man notified the authorities:
The biological father of the unborn child was told that the mother of the unborn child was experiencing a hemorrhage or severe bleeding as she "had been" nine weeks pregnant before losing the child. The biological father of the unborn child, upon learning this information, concluded that the biological mother of the unborn child had intentionally withheld information from him regarding her pregnancy, and he further suspected that the biological mother had in fact done something to contribute to the miscarriage or abortion of the unborn child. The biological father, upon returning to the residence in Collin County, discovered the two above-referenced medications from Carpenter.
In the lawsuit, Paxton is asking a Collin County court to block Carpenter from violating Texas law and order her to pay $100,000 for each violation of Texas' near-total abortion ban.
Carpenter and ACT did not immediately respond to a request for comment on the case.
Caroline Kitchener, who has covered abortion rights for The Washington Post, noted that lawsuits challenging abortion provider shield laws were "widely expected after the 2024 election."
President-elect Donald Trump has said abortion rights should be left up to the states, but advocates have warned that the Republican Party, with control of the White House and both chambers of Congress, is likely to push a national abortion ban.
"The truce over interstate abortion fights is over," said legal scholar Mary Ziegler, an expert on the history of abortion in the U.S. "Texas has sued a New York doctor for mailing pills into the state; New York has a shield law that allows physicians to sue anyone who sues them in this way. What will it mean for the GOP to say abortion should be left to the states now?"
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Dr. Oz Had Up to Tens of Millions Invested in Companies Involved With CMS
"Seniors deserve a CMS leader who will protect and strengthen Medicare—not someone like Dr. Oz who wants to privatize this vital and hugely popular program for great personal gain," said the head of Accountable.US.
Dec 13, 2024
Dr. Mehmet Oz, the "former daytime television fixture" who U.S. President-elect Donald Trump picked to lead the Centers for Medicare and Medicaid Services, reported "up to $56 million in investments in three companies" with direct CMS interests, the watchdog Accountable.US highlighted Friday.
The celebrity heart surgeon is already under fire for his record of peddling "baseless or wrong" health advice and pushing Medicare Advantage (MA)—an alternative to the government-run program administered by private health insurance companies—on The Dr. Oz Show, as well as his stake in UnitedHealth and CVS Health.
The new Accountable.US report—based on disclosures from Oz's unsuccessful 2022 run against U.S. Sen. John Fetterman (D-Pa.)—adds to conflict of interest concerns and fears that Oz may thwart the Biden administration's new rule intended to rein in privatized Medicare Advantage plans.
"Dr. Oz's conflicts of interest pose a serious threat to seniors' health security."
"In 2022, Oz's 'single biggest healthcare holding' was up to $26 million in Sharecare, a digital health company Oz co-founded that became the 'exclusive in-home care supplemental benefit program' for 1.5 million MA enrollees across 400 MA plans through its CareLinx service in 2022," the watchdog detailed. "By 2023, CareLinx was available to over 2 million MA enrollees. Sharecare was taken private in a $518 million private equity deal in 2024, and it is unknown if Oz still holds a stake."
Nick Clemens, Oz's spokesperson on the Trump transition team, told USA TODAY—which first reported on the Accountable.US findings—that Oz sold his stake in Sharecare but did not address further questions.
The group noted that "in 2022, Oz disclosed holding up to $25 million in Amazon and up to $5 million in Microsoft, which CMS called its 'two primary cloud service providers' in its FY 2025 budget document, which requested over $3.3 billion in information technology funding for the year. Notably, Amazon Web Services hosted 74 million Medicaid records as early as 2017 and the company has been contracted to streamline Healthcare.gov, the federal health insurance portal run by CMS."
Accountable.US "reviewed filings with the Securities and Exchange Commission and was unable to find evidence that Oz sold stocks in Amazon or Microsoft since the 2022 filing," according to USA Today—which found that Oz's stakes could be as high as $26.7 million for Amazon and $6.3 million for Microsoft.
When asked if Oz still owned the stocks in the two tech giants, Trump transition spokesperson Brian Hughes only said that "all nominees and appointees will comply with the ethical obligations of their respective agencies."
Given the nominee's TV and investment history, Accountable.US executive director Tony Carrk declared Friday that "seniors deserve a CMS leader who will protect and strengthen Medicare—not someone like Dr. Oz who wants to privatize this vital and hugely popular program for great personal gain."
"If Dr. Oz and Project 2025 had their way, Medicare as we know it would end, replaced with private insurance plans that cost taxpayers more and leave patients vulnerable to denials of care and higher premiums," Carrk continued, citing the Heritage Foundation-led playbook for the incoming Republican president.
"Dr. Oz's conflicts of interest pose a serious threat to seniors' health security," he added, "but as long as big insurance industry megadonors are happy, President-elect Trump doesn't seem to mind."
While Trump has the power to pick the next CMS administrator, the selection requires Senate confirmation—unless the president-elect works around it to install his most controversial nominees.
On Tuesday, Sen. Elizabeth Warren (D-Mass.) and six colleagues wrote to Oz to express their concerns about his qualifications, "advocacy for the elimination of traditional Medicare," and "deep financial ties to private health insurers."
"As CMS administrator, you would be tasked with overseeing Medicare and ensuring that the tens of millions of seniors that rely on the program receive the care they deserve, including cracking down on abuses by private insurers in Medicare Advantage," they pointed out. "The consequences of failure on your part would be grave. Billions of federal healthcare dollars—and millions of lives—are at stake."
The lawmakers sent Oz a list of questions, requesting responses by December 23. They inquired about his views on traditional Medicare and revelations that "private companies overcharge taxpayers and unlawfully deny care." They also asked whether, as administrator, he would commit to "fully divesting of any and all financial holdings related to the insurance industry" and "recusing from any decisions that may impact insurers" in which he has a stake.
Sharing the letter on social media Wednesday, Accountable.US said that Warren "is right: this glaring conflict of interest endangers seniors and puts billions in corporate pockets."
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Study Finds 96% of Gaza Children Fear Imminent Death—And Half Want to Die
"The world's failure to protect Gaza's children is a moral failing on a monumental scale," said one advocate.
Dec 13, 2024
Amid a relentless Israeli onslaught that has wrought monumental physical and psychological destruction in Gaza, a report published this week revealed that nearly all children in the embattled Palestinian enclave believe their death is imminent—and nearly half of them want to die.
The Gaza-based Community Training Center for Crisis Management, supported by War Child Alliance, surveyed more than 500 Palestinian children in Gaza last June and found that 96% of them fear imminent death, 92% are not accepting of reality, 79% suffer from nightmares, 77% avoid discussing traumatic events, 73% display signs of aggression, 49% wish to die because of the war, and many more "show signs of withdrawal and severe anxiety, alongside a pervasive sense of hopelessness."
"This report lays bare that Gaza is one of the most horrifying places in the world to be a child," War Child U.K. CEO Helen Pattinson said in a statement. "Alongside the leveling of hospitals, schools, and homes, a trail of psychological destruction has caused wounds unseen but no less destructive on children who hold no responsibility for this war."
In a first of its kind report, our Gaza based partner Community Training Centre for Crisis Management asked injured, separated and disabled children and their caregivers about the toll of the ongoing war on their lives. Their answers are devastating but sadly not a surprise. 1/5
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— War Child UK ( @warchilduk.bsky.social) December 12, 2024 at 3:31 AM
Israel's 434-day assault on Gaza—which is the subject of an International Court of Justice genocide case—has left tens of thousands of children dead, maimed, missing, or orphaned and hundreds of thousands more forcibly displaced, starved, or sickened. Doctors and others including volunteers from the United States have documented many cases in which they've concluded Israeli snipers and other troops have deliberately shot children in the head and chest.
"The harm caused to Gaza's children goes beyond statistics. Behind every number is a name, a life, and a future that is being extinguished before it can even begin," Iain Overton, executive director of the U.K.-based group Action on Armed Violence, said in response to the new report.
"The world's failure to protect Gaza's children is a moral failing on a monumental scale," he added. "We must act decisively and compassionately to ensure that these children's voices are heard and their futures protected."
In October, the U.K.-based charity Oxfam International said that Israel's yearlong assault on Gaza has been the deadliest year of conflict for women and children anywhere in the world over the past two decades. A year ago, the United Nations Children's Fund called Gaza "the world's most dangerous place to be a child." Earlier this year, U.N. Secretary-General António Guterres for the first time added Israel to his so-called "List of Shame" of countries that kill and injure children during wars and other armed conflicts.
"The international community must act now before the child mental health catastrophe we are witnessing embeds itself into multi-generational trauma, the consequences of which the region will be dealing with for decades to come," Pattinson stressed. "A cease-fire must be the immediate first step to allow War Child and other agencies to effectively respond to the intense psychological damage children are experiencing."
Addressing the complicity of allies like the United States, Germany, and Britain, who provide weapons and diplomatic cover for Israel, progressive U.K. parliamentarian Jeremy Corbyn wrote on social media in response to the new report, "Every single supplier of arms to Israel has blood on its hands—and the world will never forgive them."
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