Advertisement

THE GOODS : A Muckraker for the ‘90s : As Head of the Consumer Federation of America, Stephen Brobeck Sees a More Educated Shopper Unafraid to Take On a More Complex Marketplace

Share
TIMES STAFF WRITER

Stephen Brobeck’s office on the sixth floor of his building near Dupont Circle gives him a view of consumer activity throughout the country.

What he sees are a lot of smart shoppers. “Americans are far more sophisticated shoppers today than they were 20 years ago,” he says. “They have information coming from all directions.”

Brobeck is executive director of the nonprofit Consumer Federation of America. Established in 1968 to represent consumers in Washington by lobbying Congress and appearing before regulatory agencies, the federation now links 240 consumer groups representing 50 million people.

Advertisement

“Our growth reflects the maturation of the American consumer movement,” Brobeck says.

He’s not only talking about the increase in advocacy and regulatory groups monitoring the marketplace, but also a mountain of specialized magazines, newsletters, brochures and books. And the mass media have developed a taste for consumer stories too, which he applauds.

“One of the encouraging trends is the rise of the TV network news magazines--like ’48 Hours’ or ‘20/20’--which cover consumer issues, especially hidden hazards and scams. And the network morning shows all have consumer reporters. They reach millions of viewers.”

Furthermore, he says, most metropolitan daily newspapers have added such information as mortgage interest rates, a service that would have been “unthinkable” 15 years ago.

Of progress over the last couple of decades, his list continues: Products have better safety warnings. Food labels provide enough nutritional information to improve anybody’s health. Auto manufacturers supply fuel efficiency figures. Banks promote the annual yields on savings accounts.

As a result of all these developments, he says, “Consumerism has become ingrained in American society over the last 20 years.” The federation’s cluster of offices--jammed with computers, metal file cabinets and cardboard boxes--houses a staff of experts in household product safety, indoor air quality, telecommunications, financial services and other specialties.

Churning out studies on all these subjects, the group provides a constant flow of consumer material--books, pamphlets and an occasional hot line--that serves members of Congress, members of the media and American shoppers.

Advertisement

“People are aware of themselves as consumers today in a way that is unprecedented,” Brobeck says. A social historian as well as consumer activist, he is editing an encyclopedia of the American consumer movement, which he traces to the late 19th Century. He provides a quick breakdown:

* The Progressive Period at the turn of the century produced “muckraker” reformers such as Upton Sinclair, whose book “The Jungle” exposed the vile conditions in the meat-packing industry. Political leaders took the lead in reform, establishing the Food and Drug Administration and the Federal Trade Commission, which “remain our two most important consumer agencies,” Brobeck says.

* The Reform Period, part of the 1930s New Deal, “didn’t get a lot of press coverage,” Brobeck says, “but Consumers Union was created, and so were the co-ops such as the Rural Electrification Administration and the credit unions that provided alternatives to banks.”

* The current phase of consumerism started in the activist 1960s, Brobeck says, when the public imagination was captured by the publication of Ralph Nader’s “Unsafe at Any Speed,” critiquing the automobile industry. “When General Motors tried to suppress the book, it really made headlines and energized Nader, who recruited hundreds of bright law students to do consumer work and started forming consumer groups.”

*

Brobeck is a product of that period, having been active in the anti-war movement as a college student in the late ‘60s. “My parents were teachers and do-gooders, and passed on humanistic values to their children,” he says. “I grew up in Swarthmore, Pa., and many of my friends were Quakers.”

In 1970, while teaching at Case Western Reserve University in Cleveland, he was encouraged to form a consumer protection group. With the help of the Cleveland Legal Aid Society, he and his wife, Susan, set up a self-help organization to hear consumer complaints, investigate them and try to negotiate a settlement. “If a new car didn’t run right, we’d try to talk to the seller.”

Advertisement

If they believed that the consumer had gotten unfair treatment and talks broke down, the group would conduct a picket line. “My wife and I spent most Saturdays for nine years walking in front of car dealers and banks and other businesses.”

The organization grew into the Cleveland Office of Consumer Affairs, which is still active.

American consumers today have a whole battalion of such groups working on their behalf. Washington is the headquarters for scores of lobbying groups, led by Congress Watch, Consumers Union and Brobeck’s own Consumer Federation. They have made a vast difference in our lives, Brobeck says: “The most important thing that has happened is that consumer consciousness has increased throughout the population.”

In an unprecedented way, he explains, American shoppers are aware of themselves as individual consumers with interests that can differ from those of sellers. “As a result, customers today are much more willing to negotiate a lower price and, if there is a problem, to complain.”

But despite the arsenal of collective protection, consumerism eventually comes down to personal lifestyle choices and the patience to pick your way through a complex marketplace, Brobeck says. “You really have to sort out the options, call the vendors, make the comparisons and decide which one offers the best value to you. If you don’t, over the course of the year, you could easily lose thousands of dollars. Certainly you will lose hundreds.”

Faced with a trade-off of time versus money, many people won’t take the time, he acknowledges. “For a product that may cost less than $50, my wife and I may not conduct an extensive search. On the other hand, before we would purchase a mortgage or a new car, we would spend quite a lot of time to learn about the choices and to negotiate the best deal.”

Advertisement

*

As we approach the end of the century, Brobeck foresees consumers becoming increasingly knowledgeable, a necessity as markets become increasingly competitive.

Although his basic advice to the American consumer is to maintain a “healthy skepticism,” his outlook from his office is optimistic.

“This is a wonderful marketplace,” he says, “and there have been tremendous advances in consumer products over the last several decades, in large part due to technological advances.”

The average consumer drives a car that is much better than 30 years ago and enjoys household appliances and services, such as electronic banking, that were only on the drawing board in the 1960s, he says.

“I value such conveniences and I suspect others do, too,” Brobeck says. “In general, there have been many improvements in the marketplace. Sellers are more responsive to consumers and less willing to take advantage of them, but that’s because consumers are more aware and more demanding. And they should continue to be.”

Advertisement