WASHINGTON, D.C. - The U.S. Senate Committee on Commerce, Science, and Transportation continued the fight for American consumers and held a subcommittee hearing today on The Economy and Fraud: Protecting Consumers During Downward Economic Times.

 

 

The Honorable Chris Koster, Attorney General, State of Missouri

 

Mr. David Vladeck, Director, Bureau of Consumer Protection, Federal Trade Commission
 
Mr. Chuck Bell, Director of Programs, Consumers Union
 
Ms. Sally Greenberg, Executive Director, National Consumers League
 
Mr. Timothy J. Muris, Foundation Professor of Law, George Mason University School of Law and Of Counsel O'Melveny & Myers LLP

 

 

“The reality is that with the economic challenges we face, families are more vulnerable than ever to financial scams, predatory marketing practices, and economic fraud. We all see the news every day about more layoffs, plant closings, soaring prices and more cutbacks in West Virginia and across the nation.  No one deserves the potential ruin these schemes threaten. We have a responsibility to uncover them and provide consumers with the tools they need to avoid becoming victims of fraud and abuse.”

“In my six months as Missouri’s Attorney General I have been continually amazed at the lengths individuals will go in an attempt to scam innocent people out of their money. I am certain it has always been so; I saw it in my ten years as a county prosecutor. But these tough economic times, with desperate consumers needing help and an array of new government programs, seem the perfect climate for frauds and scams to thrive. False hope is notoriously easy to provide.”

“The economic downturn has shown how quickly and easily opportunists adopt schemes to take advantage of individuals in financial distress. The Commission is committed to using its law enforcement authority aggressively to bring these schemes to a halt, and to continue deploying public alerts and educational materials to help consumers avoid being victimized in the first instance. The Commission supports legislation that would help it do more to protect consumers by authorizing it to issue consumer protection rules and obtain civil penalties for violations of those rules.”

“These diverse financial come-ons and ripoffs come in a variety of forms and permutations, and unfortunately do not lend themselves to a one-size-fits all, silver bullet solution. However, we believe that given the risks to consumers, everyone must do more…”
Mr. Chuck Bell, Director of Programs, Consumers Union
 

“The impact of fraud nationally is stunning. According to FTC estimates, 30.2 million consumers were victims of fraud in a single year. The impact of fraud on businesses is equally staggering. According the Association of Certified Fraud Examiners, a 50,000 member professional organization, it is estimated that fraud costs organizations approximately seven percent of annual organizations revenues, or approximately $994 billion annually. Given these sobering statistics, we believe it is imperative that public policy makers at all levels of government -- and particularly at the federal level -- redouble their efforts to educate consumers about the threat of fraud and to vigorously enforce existing statutes and regulations pertaining to fraud.”
Ms. Sally Greenberg, Executive Director, National Consumers League
 

“The costs of fraud to consumers are enormous. Fraud takes many forms from fraudulent credit repair services, to unauthorized billing, to deceptive weight loss products. A survey released by the FTC in 2007 showed that an estimated 13.5 percent of U.S. adults, approximately 30.2 million consumers, were victims of one or more of the frauds covered in the survey, and that an estimated 48.7 million incidents of these frauds had occurred during the previous year.”
Mr. Timothy J. Muris, Foundation Professor of Law, George Mason University School of Law and Of Counsel O'Melveny & Myers LLP

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