Consumer Watchdog | In The Media

Justice Is Probing Google's Book Deal

Fri, 03 Jul 2009 10:15:00 PDT

The Justice Department on Thursday said it had launched a formal antitrust investigation into the proposed settlement over the Google Inc. project to scan millions of books into a digital format. In recent months, a number of parties have objected to the settlement, including Consumer Watchdog in Santa Monica, the American Library Assn. and the Internet Archive, a nonprofit organization that seeks to digitize public domain books and make them freely available online. Many of the objections involve concerns that Google would create a monopoly on digital books.

Suit Alleges California Lets Insurers Deny Treatment For Autistic Kids

Thu, 02 Jul 2009 10:23:00 PDT

A nonprofit consumer group has filed a lawsuit against state regulators alleging they allow insurance companies to deny necessary but expensive treatment for autistic children in violation of state law. Santa Monica-based Consumer Watchdog filed the lawsuit against the California Department of Managed Health Care Tuesday in Los Angeles Superior Court.

Mercury General Using Guise Of Benevolence To Assault Prop. 103

Thu, 02 Jul 2009 09:17:00 PDT

...one should wonder why Mercury, which is already one of the leading insurers in the state, would spend heavily to make its home market more competitive. I'm inclined to think the company has something else on its mind, and I'd bet that giving customers a break isn't it. Forewarned is forearmed: Hang on to your wallets.

Autism Patients' Treatment Is Denied Illegally, Group Says

Wed, 01 Jul 2009 17:24:00 PDT

Consumer Watchdog asks a judge to order the state Department of Managed Health Care to enforce the law and require insurers to serve autistic members. The agency says it's doing its job.

"Californians, including those stricken with autism and their parents and caregivers, expect regulators to enforce the law, not to side with insurance companies seeking to boost their profits by denying patients the care they need," said Harvey Rosenfield, founder of the nonprofit Consumer Watchdog and author of the landmark automobile insurance reform initiative Proposition 103.

Group Sues Calif. Regulators Over Autism Care

Wed, 01 Jul 2009 14:00:00 PDT

Consumer Watchdog, a Santa Monica group that monitors insurance practices, has asked the court to order the Department of Managed Health Care to require insurers to provide autistic children with treatments ordered by their doctors. The group also wants the department to turn over records showing the agency's violations in this area.

State Sued Over Handling of Autism Complaints

Wed, 01 Jul 2009 12:02:59 PDT

LOS ANGELES, CA -- California regulators are being challenged in court for siding with insurance companies, rather than patients, over some costly autism therapies. In a lawsuit filed Tuesday, consumer advocates complain that the Department of Managed Health Care broke state law by precluding expert doctors from deciding whether an insurer must provide treatments for autism.

State Agency Sued Over New Policy On Autism

Wed, 01 Jul 2009 09:20:00 PDT

Consumer Watchdog filed a lawsuit Tuesday against the state agency that oversees HMOs, accusing it of violating state law by siding with insurance companies in denying treatment for children with autism. The suit accuses the department of changing its policies, forcing parents to appeal insurance denials through an internal grievance process rather than letting an independent panel of doctors make treatment decisions. "We want the department to follow the law. Doctors - not insurance companies and government lawyers - decide what care kids should get," said Jerry Flanagan, Consumer Watchdog's director of health policy.

Google Makes a Case That It Isn't So Big

Mon, 29 Jun 2009 11:26:00 PDT

Eyes are rolling, especially in reaction to the idea that Google is a relatively small player in a giant market. “They describe where they are in a market under a kind of a fairy-tale spun gloss that doesn’t reflect their dominance of key sectors,” said Jeff Chester, executive director of the Center for Digital Democracy. “Google search is an absolute must-have for every marketer in the world.”

'Pay-As-You-Drive' Auto Policies Could Become Option By Year's End

Sat, 27 Jun 2009 10:53:00 PDT

Doug Heller, executive director of Consumer Watchdog, a Santa Monica advocacy group, complained that Poizner's proposal would give insurance companies too much leeway to decide whether or not to offer a pay-as-you-drive option to potential customers. He said he feared that the regulations would allow companies to offer smaller discounts than they should for people who cut their driving by only modest amounts.

State Panel Critical Of Stem Cell Institute -- Commission Offers Structural Changes

Sat, 27 Jun 2009 10:32:00 PDT

John Simpson of the Santa Monica group Consumer Watchdog said many of the recommended changes could be implemented without delay. One example would be setting up a program to discipline board members who regularly miss meetings.

Treasury, GM Close to Reaching Deal on Legal Claims -- Accident Victims, Dealers at Issue

Sat, 27 Jun 2009 10:01:00 PDT

"It's hard for me to comprehend why, when taxpayers are funding so much of the transition, and we're making specific choices about who gets money, that there's no money for these accident victims," said Douglas Heller, executive director of Consumer Watchdog. He expressed outrage that GM is requesting court approval to pay more than $100 million to its financial advisers, Evercore Partners, a New York boutique investment bank headed by former deputy Treasury secretary Roger Altman, and AlixPartners, a turnaround consultancy.

State Stem Cell Board Needs Overhaul, Group Says

Fri, 26 Jun 2009 17:21:04 PDT

To reduce potential conflicts of interest in the state's $3 billion stem cell research program, a government watchdog group called Friday for an overhaul of the program's governing board. The recommendations drew praise from John Simpson of Consumer Watchdog, who had sought such changes. "This is a thoughtful and thorough analysis from a bipartisan group with no ax to grind," he said.

Little Hoover: Reform Calif. Stem Cell Agency

Fri, 26 Jun 2009 17:17:00 PDT

California’s good-government agency approved a series of recommendations to reform the operation and governance of the state’s stem cell research funding organization. “This is a thoughtful and thorough analysis from a bipartisan group with no ax to grind,” John Simpson, a frequent critic of CIRM’s policies and stem cell project director for Consumer Watchdog in Santa Monica, said in a prepared statement. “CIRM’s management and board should listen to its advice.”

Marie Csete Resigns as CIRM Chief Scientific Officer, 15 Months Into the Job

Fri, 26 Jun 2009 14:42:50 PDT

Marie Csete will resign Aug. 1 as the chief scientific officer of the California Institute for Regenerative Medicine after 15 months in the $310,000-a-year post, Consumer Watchdog, a nonprofit group that monitors developments at the state stem cell agency, reported on Wednesday.

Chief Scientific Officer Resigns from S.F.-Based State Stem Cell Agency

Fri, 26 Jun 2009 12:09:40 PDT

The chief scientific officer at California's stem-cell agency has announced that she will step down from her position in a little over a month. John Simpson of Consumer Watchdog says Csete's resignation "speaks volumes about CIRM's management... One doesn't walk away from a $310,000 a year job at the California Institute for Regenerative Medicine (CIRM) without a very good reason."

Reaction To CIRM Science Boss Resignation

Thu, 25 Jun 2009 12:11:00 PDT

The resignation of the top science officer at California's stem cell research funding agency, some say, is exposing deeper management problems at the San Francisco-based agency. Says John Simpson, a frequent CIRM critic at Consumer Watchdog: "One doesn't walk away from a $310,000 a year job at the California Institute for Regenerative Medicine (CIRM) without a very good reason. Members of CIRM's oversight board, the Independent Citizens Oversight Committee (ICOC), must demand an explanation from Chairman Bob Klein and President Alan Trounson."

My View: HB 1171 Is Simply A Gift To Insurers

Wed, 24 Jun 2009 17:37:30 PDT

This My View was co-signed by Birny Birnbaum, executive director of the Center for Economic Justice; Douglas Heller, executive director of Consumer Watchdog; and Amy Bach, executive director of United Policyholders.

In the strongest possible terms, we urge Gov. Charlie Crist to veto the home insurance deregulation bill, SB2036/HB1171. This bill is an invitation for insurers to game the Florida regulatory system and abuse consumers.

State Farm Florida: We Will Re-Examine Departure if 'Consumer Choice' Bill Signed

Mon, 22 Jun 2009 11:15:00 PDT

Consumer groups have sent letters to Crist urging him to veto the measure. In addition, Insurance Commissioner Kevin McCarty has warned of the bill's potential adverse effects in the state's property insurance market, specifically Florida's domestic insurers that do not qualify to charge deregulated rates as outlined in the bill. Most recently a joint letter was sent by the Consumer Federation of America, the Center for Economic Justice, Consumer Watchdog, and United Policyholders. The groups said the bill "is an invitation for insurers to game the Florida regulatory system and abuse consumers."

Hill Mulls Online Privacy Rules -- And Which Agency Would Oversee

Fri, 19 Jun 2009 11:33:00 PDT

Consumer groups want rules requiring a standard disclosure and opt-in form, a ban on tracking information on a consumer's health, sexual orientation and financial condition and a "do-not-track" registry that would enable people to declare they don't want to be tracked, according to a written statement from the Consumer Federation of America. That group, the Center for Digital Democracy, Consumer Watchdog and the Privacy Rights Clearinghouse have agreed on the principles and are urging policymakers to adopt them. Allowing industry to self-regulate won't work, they say, because most companies rely on "opt-out" mechanisms that are hidden from consumers. And the FTC's principles for behavioral advertising "don't provide a basis for action to stop abuses," the statement said.

Gas In State Up 10� In Week Investors, Weak Dollar, Refinery Problems Fuel Rise

Fri, 19 Jun 2009 10:47:00 PDT

Although experts have maintained for weeks that supply and demand levels don't support the nearly two-month-long rise in prices, the persistent increase has been fueled by investments in the futures markets, the declining value of the dollar, refinery problems and other seemingly unrelated factors. And consumers are feeling the pressure, said Judy Dugan, research director for Consumer Watchdog, a California-based group that identifies itself as fighting "corrupt corporations and crooked politicians." "Prices at the pump have risen for more than 50 days straight, which is a record and the reverse of other prices in the recession. This is very tough on consumers who are struggling with flat pay, fewer hours of work and layoffs," Dugan said.

Health Insurers Refuse To Limit Rescission Of Coverage

Wed, 17 Jun 2009 10:48:00 PDT

Lawmakers Ask Three Executives If They'll Stop Dropping Honest Customers. All Say No.

"This could reshape the debate," said Jerry Flanagan, a patient advocate with Santa Monica-based Consumer Watchdog. "When health insurance companies go under oath and admit they are canceling innocent patients when they get sick, it makes it very difficult for lawmakers to pass a law that requires every American to buy a policy or face a tax fine. It opens the way for a public option to hold the companies in check."

Google Praised For Agreeing To Improve E-mail Security

Tue, 16 Jun 2009 10:10:00 PDT

Consumer Watchdog praised Google on Tuesday for agreeing to offer improved security for users of its online e-mail services like Gmail.

No Solidarity For Labor

Mon, 15 Jun 2009 10:02:16 PDT

SEIU head Andrew Stern dismisses the idea that the infighting is derailing labor's progress in Washington. It's a sign of union strength, he argues, that discussions on card check continue. "No other bill could have withstood this kind of opposition and still survived," he says. Still, labor supporters like Jamie Court, president of Consumer Watchdog, an advocacy group, are worried. "Any time you have labor fighting, it gives politicians an excuse to buy big business' argument," he says.

Bob Klein To Leave CIRM Chairman Job

Fri, 12 Jun 2009 16:51:50 PDT

Bob Klein, the architect of California’s $3 billion stem cell research funding program, will not seek a new term as chairman of the agency. Klein’s six-year term expires at the end of 2010. Klein made the announcement at the California Institute for Regenerative Medicine’s finance subcommittee meeting today, reported the California Stem Cell Report blog. It cited a blog item written by John Simpson of Consumer Watchdog, which tracks CIRM spending and policies.

Mandating Health Insurance Purchase is Not Reform

Fri, 12 Jun 2009 12:32:33 PDT

“Requiring Americans to buy insurance coverage from insurers who face no legal accountability will only lock them into the same problems plaguing consumers today,” Consumer Watchdog protested in a letter it recently sent to key members of Congress. Amen to that. According to the California-based non-profit organization, health insurers routinely stick it those who pay for their products in a variety of ways...

Google Says It Loves Competition

Thu, 11 Jun 2009 11:23:00 PDT

With Justice Department scrutiny over the Google Books Settlement only the the leading edge of antitrust regulators’ attention to Google, the company has launched a dog-and-pony show dedicated to combating the impression that more control is needed. In a presentation (PDF) acquired by Consumer Watchdog, Google public affairs lead Adam Kovacevich argued that Google is anything but anti-competitive. Its success comes from “learning by doing,” the presentation says.

Google Polishes Competition Charm Offensive

Wed, 10 Jun 2009 16:35:00 PDT

SAN FRANCISCO, CA -- Google continued to lay the groundwork Wednesday for an antitrust defense in the event that the federal government decides to take a formal look at its core business. Inside a conference room in Google's San Francisco office, executives ran through essentially the same presentation leaked last month by the consumer activist group Consumer Watchdog, focusing most of their efforts on trying to paint a picture of Google as just one part of a large Internet ecosystem, as opposed to a dominant search giant.

Reports: DOJ Turns Up The Heat On Google's Book Deal

Wed, 10 Jun 2009 10:14:00 PDT

The U.S. Department of Justice has stepped up its review of a deal that would settle a lawsuit publishers and authors filed against Google over the latter's book search engine, according to published reports. Consumer Watchdog has charged that the proposed settlement gives Google special protections against lawsuits over orphan works.

Google Receives Federal Request For Book Settlement Info

Wed, 10 Jun 2009 10:03:00 PDT

The U.S. Justice Department is reportedly investigating Google's digital books settlement with publishers, which Google claims will make millions of volumes accessible to all but which has critics crying antitrust issues. Google's books project has run into opposition from a number of groups, including Consumer Watchdog, arguing that it gives the search engine company too much control over content with little oversight.

Body Of Lies: Patients Aren't 100% Honest With Doctors

Mon, 08 Jun 2009 17:52:00 PDT

When patients aren't truthful, misled doctors may give a wrong diagnosis or treatment.

Patients can refuse to release the records, but if they do, the company can refuse to sell them a policy or refuse to pay claims. This is part of the deal patients agree to by signing on to the insurance contract. And it doesn't take much in a patient's records to nix the sale of a policy. "A case of acne can do it," says Jerry Flanagan, an advocate with Consumer Watchdog.

Private Insurance Companies Push For 'Individual Mandate'

Sun, 07 Jun 2009 12:46:00 PDT

In a recent letter to Senate Finance Committee Chairman Max Baucus (D-Mont.), Jerry Flanagan of the Santa Monica-based advocacy group Consumer Watchdog wrote that adopting an individual mandate without a public alternative would amount to "a bailout for HMOs -- whose greed, waste and indifference to our health have created the current mess."

Consumer Groups Challenge Obama's Appointment Of Google Executive

Sat, 06 Jun 2009 10:20:00 PDT

Two consumer groups are seeking to throw a roadblock in front of President Obama's pending appointment of Google's top global public policy official, arguing that it would violate Obama's ethics rules aimed at eliminating the influence of lobbyists on the federal government.

John M. Simpson, a consumer advocate at Consumer Watchdog, said McLaughlin is good at what he does – "lobbying around the world for Google's interests," he said. "That's not what this job requires. It should not go to any person whose most recent position has been advocating policy for a technology company," he said.

Obama Urged To Halt Google Government Takeover - Stop The Revolving Door

Fri, 05 Jun 2009 11:38:56 PDT

Two consumer watchdogs - including the aptly-named Consumer Watchdog - have urged US President Barack Obama to avoid appointing Google's director of global public policy as the country's deputy chief technology officer.

Fighting Healthcare Rescissions

Fri, 05 Jun 2009 10:03:09 PDT

A just-passed bill in Sacramento, and a proposal by California's insurance commissioner, would help end abuses by insurers.
One advocacy group, Consumer Watchdog of Santa Monica, estimates that up to 30% of the people who apply for individual policies get rejected. Cracking down on bad-faith rescissions will help some people maintain their insurance, but others may just find out sooner that they can't get coverage for the illnesses for which they're most at risk, if they can get coverage at all.

Poizner Takes Action Against Arbitrary Health Insurance Cuts - Says Unfair Rescissions Must Stop

Fri, 05 Jun 2009 09:48:37 PDT

"The rules proposed by the Department of Insurance go a long way to protect innocent patients from losing their coverage when they are sick and need it most," says Jerry Flanagan of Consumer Watchdog. "The Schwarzenegger Administration must also follow through with its planned rules applying to HMOs and PPOs, which are separately overseen by the Department of Managed Health Care. Without such rules, health insurers will be able to discriminate against patients on the basis of which agency regulates their insurer.”

Google Lobbyist Unfit for Deputy CTO Job, Say Critics

Thu, 04 Jun 2009 10:32:00 PDT

President Obama reportedly is poised to name Andrew McLaughlin, a former Google executive, as U.S. deputy CTO. The choice rankles the heads of two advocacy groups, who maintain that McLaughlin's work as a lobbyist on behalf of Google makes him unsuitable for the government policy development role.

Growing White House Ties To Google Draw Protest

Thu, 04 Jun 2009 09:43:24 PDT

Consumer Groups Object To Expected Selection Of Google Exec To Deputy CTO Post

Andrew McLaughlin, Google's director of global public policy, is expected to be appointed U.S. deputy chief technology officer, reporting to federal CTO Aneesh Chopra. Both are new White House positions. Two groups, the Center for Digital Democracy and Consumer Watchdog, yesterday urged Obama not to appoint McLaughlin to the post. In a letter signed by Jeffrey Chester, executive director of the Center for Digital Democracy and and John Simpson, consumer advocate at Consumer Watchdog, the groups said that McLaughlin "has been a lobbyist for the biggest digital marketing company in the world, and we believe no special-interest connected person should assume a position of vital importance to the country's future."

Regulation May Bar Insurers From Dropping Policies

Thu, 04 Jun 2009 09:08:51 PDT

Proposed state regulations announced Wednesday call on health insurers to provide clearer applications and proactively collect medical information before granting policies. However, the new policies would not affect the 22 million managed-health care policies — typically obtained through employers — that are regulated by the Department of Managed Health Care, said Jerry Flanagan, health advocate for Consumer Watchdog, a Santa Monica-based consumer advocacy group. "The problem is if the Department of Managed Health Care doesn't act, then the insurers can discriminate based on what regulates their policy," Flanagan said.

Obama's Googler Draws Fire

Wed, 03 Jun 2009 16:50:31 PDT

A pair of consumer advocacy groups sent the White House a letter on Wednesday urging the administration not to appoint Google’s Andrew McLaughlin to the post, a move reported to be in works by several media outlets. McLaughlin is Google’s director of global public policy. That means he has been “responsible for Google’s worldwide lobbying efforts,” said the letter from Consumer Watchdog and Center for Digital Democracy. Obama has issued an executive order barring anyone who has worked as a lobbyist in the past two years from serving in a federal agency that they lobbied.

Ex-Googler's New White House Job Rankles Some

Wed, 03 Jun 2009 16:41:00 PDT

Andrew McLaughlin’s departure from Google to the Obama administration has prompted a little grumbling among some consumer advocates and the search giant’s corporate foes. “We do not object to Mr. McLaughlin’s appointment because he is associated with Google per se. The problem is that he has been a lobbyist for the biggest digital marketing company in the world, and we believe no special-interest connected person should assume a position of vital importance to the country’s future,” wrote John M. Simpson, founder of Consumer Watchdog, and Jeffrey Chester, founder of the Center for Digital Democracy.

Google's influence grows in the W.H.

Wed, 03 Jun 2009 16:34:40 PDT

Consumer groups urged the White House on Wednesday to back off its reported pick for deputy chief technology officer because he was listed as a registered lobbyist for Google. Consumer Watchdog and the Center for Digital Democracy said Andrew McLaughlin, the head of Google’s global public policy, would break President Barack Obama’s executive order barring lobbyists from serving in policy areas they lobbied in the previous two years.

Health Care Ruling Raises Questions for Other Cases

Wed, 03 Jun 2009 15:36:53 PDT

California's health insurance industry claimed victory and vindication last week when Blue Shield of California won the first ever jury trial in a health insurance rescission lawsuit, brought by an injured policyholder and his wife. Some health care advocates saw the Hailey verdict as a good sign for future lawsuits. "Blue Shield lost by winning here," said Jerry Flanagan, health advocate for the Santa Monica-based Consumer Watchdog. "Blue Shield said all along that the standard is too high, we can't meet it--and then they did it here."

Google's Former Policy Exec Faces Objections To Appointment As Deputy CTO

Wed, 03 Jun 2009 13:39:00 PDT

Two consumer groups object to Andrew McLaughlin's potential appointment, saying it would violate President Obama's ethics guidelines.

Andrew McLaughlin is slated to become the new deputy CTO, under federal CTO Aneesh Chopra, according to a New York Times report citing two unnamed sources. Google has acknowledged McLaughlin's departure, but not his destination. The White House has not yet announced plans to appoint McLaughlin. Nonetheless, the Center for Digital Democracy and Consumer Watchdog on Wednesday asked President Obama in a letter not to complete the rumored pending appointment because doing so would violate the President's ethics guidelines.

Critics Rip Obama's Proposed Google Pick

Wed, 03 Jun 2009 13:35:00 PDT

As rumors swirl that President Obama plans to appoint Google's Andrew McLaughlin as White House deputy chief technology officer, consumer watchdogs bay over possible ethics violations. "Mr. McLaughlin is very good at what he does — lobbying around the world for Google’s interests," said John M. Simpson, consumer advocate at Consumer Watchdog. "That's not what this job requires. It should not go to any person whose most recent position has been advocating policy for a technology company."

Obama's Rumored Tech Pick Panned

Wed, 03 Jun 2009 10:49:34 PDT

A pair of watchdogs on Wednesday urged the White House not halt the pending appointment of Google's top global public policy executive to the position of deputy chief technology officer under CTO Aneesh Chopra, saying it would violate the intent of President Obama's ethics rules. Although the choice of Google's Andrew McLaughlin for the position has been widely reported, it has yet to be announced.

Opposing Obama's Deputy CTO Pick

Wed, 03 Jun 2009 10:41:00 PDT

Two consumer groups have lined up to oppose President Obama's pending appointment of Google's Andrew McLaughlin as deputy chief technology officer in the White House. In a letter to Obama, John Simpson, consumer advocate at Consumer Watchdog (formerly the Foundation for Taxpayer and Consumer Rights), and Jeffery Chester, executive director of the Center for Digital Democracy, said McLaughlin's position as Google's director of global public policy violates the intent of the president's ethics rules to stop the revolving door between lobbyists and the executive branch.

Veto The Anti-Consumer Property Insurance Bill

Wed, 03 Jun 2009 10:31:00 PDT

Gov. Crist has already indicated some reservations about signing this bill. We implore him to continue that smart thinking and to continue looking out for the best interests of Florida's insurance consumers. Consumer advocates across the state are expressing similar concerns, including the Florida Public Interest Research Group, the Consumer Federation of the Southeast, the Florida Consumer Action Network, Consumer Watchdog, the Center for Economic Justice, United Policyholders, Insured's Public Action Coalition, Floridians In Action as well as Florida's Insurance Consumer Advocate Sean Shaw.

Proposal Would Combat Rescissions of Health Insurance Policies In California

Wed, 03 Jun 2009 10:19:00 PDT

Steve Poizner, the state insurance chief, plans to unveil rules today that would deter insurers from dropping policyholders who develop costly ailments. Consumer advocates said they planned to keep the pressure on Poizner, a Republican who is running for governor. "The test for Poizner is not introducing a strong regulation but finishing the process and standing up to the insurance companies," said Jerry Flanagan, an advocate with Consumer Watchdog. "The public will be watching to see if Poizner sticks to his guns."

Chevron Gives Schwarzenegger Another Big Check, An Advocate Cries Foul

Tue, 02 Jun 2009 17:28:48 PDT

Just days after the package of ballot measures that Schwarzenegger supported flopped in the May 19 special election, Chevron donated $250,000 to the governor’s California Dream Team political account. The big check came on top of $500,000 the oil company had already contributed to the push for the ballot measures. All that loot prompted Doug Heller, executive director of Consumer Watchdog, to dispatch a letter today to the Legislature’s top Democrats, saying Chevron is “seeking protection” from a potential oil extraction tax that could help California with its cash troubles.

Single-Payer Health Care Supporters Plea for Consideration from Baucus

Tue, 02 Jun 2009 16:06:59 PDT

Whitefish Forum Discusses Reform with Senator’s Staff

Some in the audience also questioned whether the amount of campaign contributions Baucus has received from the insurance industry plays any role in the senator’s reluctance to consider a single payer system. Baucus is the third highest recipient of contributions from the insurance industry in the Senate, according to a study by the group Consumer Watchdog.