Friday, December 18, 2015

5 Anti-Consumer Provisions That Didn't Make It Into the Omnibus Spending Bill

5 Anti-Consumer Provisions That Didn’t Make It Into the Omnibus Spending Bill

Congress has reached an agreement on a year-end spending bill and tax package to keep the government funded through September 2016. The House and Senate are expected to start casting votes on the deal today and Friday.

Because the spending bill must pass to avoid a government shutdown, many lawmakers saw it as an opportunity to slap on last-minute riders to gut or weaken a variety of consumer protections. Many of these proposals were the result of behind-the-scenes efforts by the banking industry, food companies, and other business groups to advance their special interests. Fortunately, several of the most anti-consumer proposals were firmly rejected, after lawmakers who support these issues pushed back on the riders. Plus, there was an outcry (and some well-placed public pressure) from consumers and advocacy groups, including Consumers Union, the policy and advocacy arm of Consumer Reports. In a statement, Consumers Union said, “Some industries tried to strong-arm Congress and roll back some important consumer safeguards. Consumers stood up and made their voices heard, and we’re pleased that several of these riders were kept out of the agreement.”

However, a deal this size is rarely perfect, and Congress did include a few clunker provisions that we’re not fond of. But we’ll get to those in a minute. First, the happy victories. 

Labeling GMOs. Despite a heavy push by food manufacturers, lawmakers rejected a proposal to preempt mandatory labeling of genetically modified foods by state and local governments. The agreement also contains full funding to implement the Food Safety Modernization Act, a landmark law to crack down on deadly foodborne illnesses. Plus, the deal requires the FDA to develop labeling for genetically engineered salmon before it can be introduced in the marketplace.

Keeping the consumer watchdog on the beat. A controversial proposal backed by banks would have undermined the Consumer Financial Protection Bureau, the watchdog that protects consumers from financial rip-offs, by changing its funding and restructuring it as a commission. These efforts failed. The banks also tried to get Congress to weaken reforms aimed at abusive mortgage lending and other problems—that didn’t make it in the final bill, either.

Keeping retirement advisers honest. Lawmakers rejected an item that would have blocked the Department of Labor’s proposed rule to eliminate potential conflicts of interest among retirement advisers.

Preserving net neutrality. The deal almost contained a proposal that would have prevented the FCC from implementing its Open Internet rules to protect consumer rights to net neutrality. That language was left out.

Boosting green power. The agreement extends tax incentives for consumers to install solar panels, and legislators rejected a rider that would have blocked the Environmental Protection Agency from implementing its Clean Power Plan to improve public health and promote energy efficiency.

Stopping these measures represents a definite victory for consumer advocates, but the agreement still has some provisions Consumers Union finds objectionable. For example, language in the bill repeals mandatory country-of-origin labeling for beef and pork, although the repeal was not extended to poultry as some lawmakers wanted. On the health reform front, the agreement imposes a two-year moratorium on the medical device tax and a one-year halt to the insurance tax, which are critical funders for the Affordable Care Act.

The agreement is now teed up for Congress to debate and approve in a matter of days, and the White House says the President will sign it.

By the way, if you’re the type of person who enjoys reading pages and pages of federal legislation, you can plow through the text of the agreement here and here.

Consumer Reports has no relationship with any advertisers on this website. Copyright © 2006-2015 Consumers Union of U.S.

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