Big Business Lied To Voters, Says FTCR

[The Straight Story]

Big Business Lied To Voters, Says FTCR; Corporations Use Prop 64 to Attack Pending Consumer Protection Suits

12/27/2004 1:54:00 PM


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To: State Desk

Contact: Doug Heller, 310-392-0522 ext. 309, Jamie Court, 310-874-9989, both of the Foundation for Taxpayer and Consumer Rights

SANTA MONICA, Calif., /U.S. Newswire/ -- Big corporations charged with violating patients' medical privacy, marketing alcohol to minors and overcharging wireless phone customers are among the defendants trying to apply Prop 64 retroactively to avoid accountability under lawsuits filed before the law was approved in November. This attempt contradicts representations made by Prop 64 proponents to voters that the law would not be retroactive and would not apply to pending lawsuits.

Prop 64 proponents also told the electorate the initiative was aimed at stopping baseless suits against small businesses, not legitimate consumer protection cases against big business. It is, however, large corporate donors to the initiative that are aggressively seeking to dismiss unfair business competition lawsuits filed against them prior to the election, according to consumer advocates.

The Foundation for Taxpayer and Consumer Rights (FTCR) today released a list of pending cases under attack, including suits against 15 corporations that gave $2.2 million to the Prop 64 campaign. At least 55 consumer and public health protection cases are under assault by defendants who claim Prop 64 is retroactive. Among the pending cases that big business donors to Prop 64 are seeking to have dismissed using the initiative:

-- Albertsons and the nation's largest pharmaceutical companies, which together gave $352,000 to the Prop 64 campaign, are charged with illegally sharing pharmacy patients' private medical information as part of drug marketing efforts;

-- Anheuser-Busch and Miller Brewing Co. are challenged with targeting new alcoholic products at, and marketing to, minors in a suit brought by parents whose 20-year-old daughter was killed by an 18-year-old drunk driver. The brewers gave $125,000 to the initiative;

-- Cingular Wireless, owned by SBC Communications ($35,000 to Prop 64), faces suit to stop it from charging cell phone customers international rates for domestic calls that the company routes through cell towers in Mexico.

http://releases.usnewswire.com/GetRelease.asp?id=41045