Showing posts with label Center for Media and Democracy’s PR Watch. Show all posts
Showing posts with label Center for Media and Democracy’s PR Watch. Show all posts

Monday, April 23, 2012

Largest auto and home insurer STATE FARM refuses to dump ALEC

Think State Farm Insurance is “Like a Good Neighbor,” as the slogan brags in their advertising?  Think again.  They are a part of the largest anti-consumer group in the country and even after numerous requests from its customers and pro-consumer groups State Farm says it will not budge in its support of the American Legislative Exchange Council (ALEC).  They continue to maintain both their membership and leadership in the organization.

SF VP Louise Perrin said, "(O)ur work with ALEC is limited to research projects for use by public officials considering matters that impact the affordability and accessibility of insurance," according to the Center for Media and Democracy who has been bird dogging ALEC for some time now.  My interpretation of Perrin’s remark is that SF works with ALEC to wring every dollar out of their policyholders with limited coverage in return.

CMD states that Corporations like State Farm pay a hefty amount to participate in ALEC’s business-favored programs, somewhere around $50,000—plus additional money to serve on specific task forces—some of which is spent to promote NRA causes like the “stand your ground” law that has been deemed responsible for the killing of teen ager Trayvon Martin by George Zimmerman. 

ALEC was also involved in the creation of and passing of Arizona’s anti-immigration law, SB-1070.  They have been active in passing voter ID legislation that confuses and discourages the poor and ethnic groups to vote.  ALEC wants to privatize the prison system and education across the country when it has been proven that the public system is just as sufficient and less-expensive.

So just remember, every time you pay your premiums for auto and/or homeowner insurance to State Farm, a portion is going to ALEC to support pro-corporate legislation that puts the consumer at the bottom of the priority list.  And some of these may be bills that reflect just the opposite of what you believe on the issue.  ALEC’s control over conservative Republican state legislators is now legend; in many cases they pass ALEC legislation word for word.

A U.S. Rep. Mark Pocan, (D) Wisconsin, comments on ALEC:
CMD says, “State Farm's participation on ALEC's insurance committee has put the insurer in a position to benefit from several major pieces of insurance industry model legislation.”  This includes the Consumer Choice Motor Vehicle Insurance Act.  The Act, “lowers the minimum amount that insurance companies typically must insure motorists for under state law in auto accidents.”  Further, “the law can mean lower payouts for insurance companies, yielding higher profits.”

BINGO!  State Farm is interested in its profitability over the quality of coverage it provides for its policyholders.

CMD adds, “The lower minimum coverage can also mean that consumers who thought they had insurance for serious accidents do not have enough to cover the injured parties.”  It happened in Wisconsin where ALEC worshipper Governor Scott Walker signed legislation that “…reduced the state's minimum coverage for auto liability insurance by half.”  This is a secret collusion between corporations and state legislators led by ALEC with the consumer always on the losing end.

CMD reports on other ALEC-sponsored auto insurance bills that leave consumers holding the bag:

  • The After Market Crash Parts Act, which leads to lower costs for insurers transferring “…the risk to policy holders that after-market replacement parts might be inferior to the manufacturer's part.”

  • Create an industry-controlled registry of insured motorists for states to identify motorists who flout mandatory insurance laws (a model law which effectively creates the same kind of public-private partnership in mandated auto insurance that many ALEC members would oppose when it comes to health insurance).

  • Restrict or prohibit non-economic damages (such as pain and suffering) if an individual in a car accident did not have insurance* -- an industry effort to ratchet up the sale of policies.

  • Prohibit state governments from being involved in the private insurance market (a theoretical proposition that may be a preemptive strike against policy makers who have considered taxing gas to cover uninsured motorists).

Other companies on the Fortune 500 list with State Farm have dumped ALEC.  They are McDonald’s, Coca Cola and Kraft.  Currently a total of 10 consumer-oriented companies have cut the cord with ALEC, and CMD forecasts more will follow.

Now I am not suggesting that you drop your State Farm insurance and switch to another company because casualty insurance today is such a tediously technical issue and you need a company track record.  And also, if you have the kind of agent I do, you wouldn’t part with him or her for anything.  Just call Bob Lapinski at State Farm (309) 735-8621, and tell him to get out of ALEC now.

You can see a series of my posts on ALEC here.

Monday, April 9, 2012

Corporate stampede to dump ALEC – Do your part today

Unfortunately it took the death of Trayvon Martin in Florida at the hands of George Zimmerman to convince at least some of the corporate world just how despicable the American Legislative Exchange Council (ALEC) is.  When the National Rifle Assn. (NRA) brought the “stand your ground” law to the them, it was originally passed in 2005 in Florida, later being passed by 20-something other states.  The law’s efficacy is being questioned nationwide.

This is all the result of the dedicated reporting of the Center for Media and Democracy (CMD) on ALEC’s activities in an expose that finally put this reprehensible organization in the spotlight, drawing attention to its lobbying efforts on the state level that favor big business at the expense of the consumer.  The very consumer that supports these large corporations that also support ALEC.  Well the tide has turned and they are dropping like flies.

It was announced late last Thursday that Coca Cola and Pepsico had dumped ALEC, then on Friday Kraft and Intuit decided to bail.  No doubt more are on the way and this list will need to be updated regularly today.  But there were holdouts, some you deal with every day, and you should know who they are (below), and I will show you later how you can add your voice to the referendum.

Wal-Mart refused to withdraw its support of ALEC claiming, "Our membership in any organization does not affirm our agreement with each policy created by the broader group."  Not good enough and you should let the retailer know by your future shopping habits.

According to Reuters, due to “political risk,” Pfizer, Reynolds American, Altria/Philip Morris and non-board ALEC member Procter & Gamble refuse to leave ALEC.  Customers of these companies should decide whether they want to leave them.

Exxon Mobil and British alcohol firm Diageo (makers of Smirnoff products and Johnnie Walker whisky) declined to comment.


Pfizer drugs

Pfizer, the world largest drug manufacturer, said, "We don't agree with every ALEC position, but we participate in ALEC's healthcare forums because state legislators that are the members in ALEC, they make decisions that impact our business and the country's business every day."  Not added is the fact that state lawmakers pass the laws dictated by ALEC, unfavorable to drug users.

Reynolds (Camel cigarettes) said ALEC provides "a valuable forum for sharing of ideas and fostering better understanding of a broad range of both legislative and business issues."  In other words, we let them do our dirty work.

Others who weren’t talking when this was posted are Bayer, GlaxoSmithKline, Johnson & Johnson, AT&T, State Farm, plus others.

Now this may all change during the day, adding more dropouts, and you can check the progress of this issue by going to CMD’s site, ALEC Exposed.  And in case you aren’t mad enough yet to participate, here are a few priority items on ALEC’s agenda:

  • Suppress voting by students, the poor and ethnic minorities through restrictive Voter ID laws.

  • Push climate change denial and restrict protections for our environment.

  • Undermine public schools by using tax dollars to subsidize for-profit schools.

  • Limit consumers' rights and the basic right of workers to organize.

  • And privatize and ration Medicare and Social Security, as well as other government services.

Get the scoop on ALEC below from a U.S. Representative:



So now that you are mad enough, here are some sites to visit where you can learn more about the antics of ALEC.  First check out the ALEC Corporations that are involved in this conspiracy and you will see a wide array of the U.S. corporate world.  It’s alphabetized for easy reference.  Next, find your state lawmakers that do just what ALEC mandates and tell them to stop this practice and start representing the people or you will vote them out of office.

Now that you are fully armed with information, you are ready to take action on your own.  Go to CMD’s Dump ALEC site and you can send your own letter to corporate America that says you are sick and tired of these underhanded methods to undermine your rights as a consumer and a customer.  You’ll feel better and it will help CMD in its fight to oust ALEC.  Do it today!

Tuesday, March 27, 2012

NRA pushed “stand your ground” law that may be responsible for Trayvon Martin’s death

The Florida law that is currently protecting watch captain George Zimmerman, termed “stand your ground,” was brought to the organization American Legislative Exchange Council (ALEC) by the National Rifle Assn.  ALEC, a national organization that fosters legislation primarily anti-consumer, has promoted the concept to states nationwide resulting in several laws passed similar to Florida’s. 

It is one of the bills supported by ALEC disproportionately impacting communities of color, according to the Center for Media and Democracy’s PR Watch.  The question is whether it prompted Zimmerman to take vigilante justice into his own hands resulting in action that he was not authorized to carry out.

The American Legislative Exchange Council (ALEC) is a front for back-room closed-door sessions between big business and state legislatures to draft legislation that benefits business.  The center for Media and Democracy has been fighting this organization for some time now, and I have done two past articles you can see here and here.  One of the major problems with ALEC is its secrecy in bringing biased legislation to states that is often passed as presented.

This law, also known as the “Castle Doctrine,” changes state criminal justice and civil law codes by giving legal immunity to a person who uses deadly force if they reasonably believe it is necessary to do so to prevent death or great bodily harm to themselves or another or to prevent the commission of a forcible felony.  It also bars the deceased's family from bringing a civil suit.  Additional information suggests Zimmerman acted as he did because the teen was black.

Florida Senator Durell Peadon introduced the law with NRA lobbyist, Marion Hammer, reportedly staring down legislators as they voted, according to CMD.  Afterwards Hammer presented the bill to ALEC where the NRA “boasted” it was “well-received,” after which all corporations and state legislators on the Task Force unanimously approved the bill as an ALEC model.  At last count, 25 states had the “stand your ground law.”

See Al JaZeera video below of Former federal prosecutor Michael Wildes discussing the NRA's power and the need for improved gun safety and control laws:



Wisconsin governor Scott Walker, a devoted ALEC alum, signed a bill into law in his state in 2011 with the key elements of the Castle Doctrine included.  On March 3 of this year, 20-year-old college student Bo Morrison was shot and killed by a homeowner in Slinger, Wisconsin as the young man hid from police after attending an underage drinking party.  Because of the Castle Doctrine, no charges will be filed in the shooting. Like Trayvon Martin, Morrison was black.


Trayvon Martin

Former U.S. attorney Kendall Coffey says the “stand your ground” law is “a license to kill,” noting that the number of justifiable homicides in Florida has tripled since the law was passed in 2005.  CMD says, “The Castle Doctrine and its ‘stand your ground’ provisions give license for people to engage in vigilantism without liability.  As such, the ALEC bill can put the decision to take a life in the hands of a person whose fears are motivated by prejudice and racial bias.

To my knowledge and at this writing, the NRA has made no official comment about the Trayvon Martin death, nor has it commented on the “stand your ground” law in relation to whether George Zimmerman acted correctly in his shooting of the black teen ager.  I read somewhere recently a headline that said, “George Zimmerman is the NRA.”  If that statement is correct, the Florida incident could well be the catalyst to more gun control in the future.

Read more here.

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