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For Immediate Release
07/22/09
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Jena Longo - Democratic Deputy Communications Director 202.224.7824
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Hearing Summary: Advertising Trends and Consumer Protection
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WASHINGTON, D.C. - The U.S. Senate Committee on Commerce, Science, and Transportation held a subcommittee hearing today on Advertising Trends and Consumer Protection.
Witness List:
Mr. David Vladeck, Director, Bureau of Consumer Protection, Federal Trade Commission
Ms. Sally Greenberg, Executive Director, National Consumers League
Dr. Urvashi Rangan, Director for Technical Policy, Consumers Union
Mr. C. Lee Peeler, President and CEO, National Advertising Review Council
Mr. Greg Renker, Co-Chairman, Guthy-Renker LLC
Mr. Jon Congdon, President, Product Partners, LLC
Key Quotations from Today’s Hearing:
“Unfortunately, there is no limit to the tricks and ploys that deceptive advertisers may use to rope consumers into bogus opportunities and dangerous investments: elaborate “bait and switch” techniques, advertisements masquerading as news articles, advertisers paying bloggers to endorse certain products, false or deceptive testimonial advertising, “free” product advertising and false or deceptive marketing of “green” products. With each false claim or inflated promise, consumers lose faith in the marketplace, the information they use to make decisions and the government they expect to keep these scam artists in check.”
Chairman John D. (Jay) Rockefeller IV
“Over and over again, consumers purchase products from companies that claim to make us a little trimmer, stronger or healthier. If these advertising claims were just about eliminating pimples or fat, it would be one thing. However, many of the deceptive practices employed are increasingly putting safety at risk so a company can make a quick buck. My goal with today’s hearing is to find out what resources and authority are necessary to help consumers make informed decisions and preserve the integrity of our marketplace.”
Senator Mark Pryor, Chairman of the U.S. Senate Subcommittee on Consumer Protection, Product Safety, and Insurance
“Developments in science and technology, as well as in marketing strategies, have led to a proliferation of products and services and a parallel burgeoning of advertising claims about how these products will make us thinner, better looking, and healthier; improve the quality of our lives; make us richer; and even improve our environment. The substantiation of advertising claims has itself become a business opportunity, with a variety of labs and testing facilities – some legitimate and others less so – offering this service.”
Mr. David Vladeck, Director, Bureau of Consumer Protection, Federal Trade Commission
“Now more than ever, consumers need to be assured that products and services advertised to them deliver on what they promise. Where extreme results are promoted, typical results should be clearly disclosed. When an “expert” unequivocally stakes her or his reputation on an endorsement of a product, consumers should be informed whether that person is qualified to make the statement. Readers of a product review on a blog or Facebook page deserve to know if the reviewer’s opinion may have been swayed by a free gift or a hefty check. Finally, citizens of a democratic society should have confidence that the media is not passing off advertisements as hard news.”
Ms. Sally Greenberg, Executive Director, National Consumers League
“Consumers are currently faced with a huge learning task that better guidance and regulation could reduce. Requirements for transparency in standards and product information, such as ingredient lists, should be standard for all products being sold with green claims. Government regulation and guidance would be helpful in maintaining universal requirements for credible green marketing practices.”
Dr. Urvashi Rangan, Director for Technical Policy, Consumers Union
“The advertising industry has a strong, longstanding commitment to self-regulation as a tool to foster high standards of truth and accuracy in national advertising. These CBBB-administered programs provide an expert, fast and effective mechanism to address concerns about a wide range of advertising claims, and are supplemented by the work of BBBs to promote truthful advertising in their communities. The system represents a substantial benefit to consumers and it has earned the support of the advertising industry and the FTC. We work every day to assure, through the quality of our decisions and clarity of our guidance, that we continue to deserve that support.”
Mr. C. Lee Peeler, President and CEO, National Advertising Review Council
“The success and ongoing growth of the direct response industry and broader advertising industry is due in large part to the effectiveness of consumer testimonials and endorsements. Testimonials by users of our products and services are a very powerful form of communication, and studies have found that consumers find statements by other consumers to be, in many cases, more credible than direct statements about products by the advertiser.”
Mr. Greg Renker, Co-Chairman, Guthy-Renker LLC
“Although we share common goals with the Federal Trade Commission, we have concerns regarding the Commission’s proposed modifications to its guidelines on the use of testimonials in advertising. In particular, as the Subcommittee knows, the Commission proposes to require companies that use testimonials in advertising to disclose the average result experienced by consumers that use a given product or service. I am certain that the Commission acted with the best of intentions in suggesting modifications to its longstanding guidelines. However, I fear that the Commission’s proposal will have significant unintended and negative consequences for marketers and consumers.”
Mr. Jon Congdon, President, Product Partners, LLC
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30th - |
Rockefeller, Boxer Applaud Funding for Rail Safety Grants
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The committee passed the Transportation, Housing and Urban Development Appropriations bill, which includes $50 million for the Railro...
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30th - |
Hearing Summary - Climate Services: Solutions from Commerce to Communities
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Witness List:
The Honorable Gary Locke, Secretary, U.S. Department of Commerce
The Honorable John P. Holdren, Director, Office of Science and Technology Policy, Executive Office of the President
Key ...
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30th - |
Chairman Rockefeller's Remarks on Climate Services: Solutions from Commerce to Communities
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Climate change is happening—the scientists agree—we have observed rising temperatures and sea levels, reduced snow and ice...
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29th - |
Hearing Summary: Nominations Hearing
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Witness List:
Mr. Christopher P. Bertram, to be Assistant Secretary for Budget and Programs and Chief Financial Officer at the United States Department of Transportation
Ms. Susan L. Kurland, to be Assistant Secretary for Aviation and International A...
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28th - |
Hearing Summary - Weathering the Storm: The Need for a National Hurricane Initiative
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Witness List:
Dr. Kelvin K. Droegemeier, Co-Chairman, Task Force on Hurricane Science and Engineering, National Science Board
Dr. Richard W. Spinrad, Assistant Administrator, Office of Oceanic an...
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27th - |
Nominees Confirmed
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Ms. Mignon L. Clyburn, to be a Member of the Federal Communications Commission (FCC)
Ms. Meredith Attwell Baker, to be a Member of the Federal Communications Commission (FCC)
Ms. Deborah A.P. Hersman, to be Chairman and Member of the National Transportation Safety Board (N...
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24th - |
Rockefeller Calls for Audit of General Motors and Chrysler Terminations
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22nd - |
Chairman Rockefeller's Remarks on Advertising Trends and Consumer Protection
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Today, we will examine deceptive advertising and its power to undermine consumers’ c...
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22nd - |
current Press Release |
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21st - |
Rockefeller Applauds Senate Commerce Committee's Approval of FAA Reauthorization Bill
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21st - |
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The Senate Commerce Committee approved a bill to extend the Nation...
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21st - |
Executive Session Committee Legislation Summary
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Nomination of Polly Trottenberg, to be Assistant Secretary for Transportation Policy of the United States Department of Transportation (PN 549)
Nomination of Deborah A.P. Hersman, to be Chairman and Memb...
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20th - |
Chairman Rockefeller on the 40th Anniversary of the First Moon Landing
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17th - |
Rockefeller and Hutchison Press DOT on Antitrust Immunity Cases
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16th - |
Hearing Summary: Competition in the Health Care Marketplace
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Witness List:
Mr. Richard A. Feinstein, Director, Bureau of Competition, Federal Trade Commission
Dr. Len M. Nichols, Director, Health Policy Program, New America Foundation
Mr. David Balto, Senior Fellow, Center For ...
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15th - |
Chairman Rockefeller Alarmed by Magnitude of Cyber Attacks
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14th - |
Hearing Summary-The Economy and Fraud: Protecting Consumers During Downward Economic Times
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Witness List:
The Honorable Chris Koster, Attorney General, State of Missouri
Mr. David Vladeck, Director, Bureau of Consumer Protection, Fed...
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14th - |
Rockefeller, Hutchison, Dorgan, Demint Introduce Bipartisan Aviation Bill
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13th - |
Chairman Rockefeller and Ranking Member Hutchison Statements on the Nomination of Chris Bertram
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“Mr. Bertram brings a ...
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10th - |
Chairman Rockefeller Adds Another Company to His Online "Mystery Charges" Investigation
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Today, Senator Rockefeller sent a letter to the President of Affini...
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9th - |
Hearing Summary: Nominations Hearing
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Nominations Include:
Panel I
Mr. Charles F. Bolden, Jr., to be Administrator of the National Aeronautics and Space Administration (NASA)
Ms. Lori Garver, to be Deputy Administrator of the National Aeronautics and Space Administration (NASA)
...
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8th - |
Executive Session Committee Legislation Summary
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S. 588, Cruise Vessel Security and Safety Act of 2009
S. 649, Radio Spectrum Inventory Act
S. 668, Northwest Straits Marine Conservation Initiative Reauthorization Act of 2009
S. 1194, Coast Guard Authorizati...
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