Consumer Groups Denounce Attack On Consumer Watchdog

Mercury Insurance is only beneficiary of smear campaign

From Consumer Federation of California

SACRAMENTO, Calif., Feb. 10, 2012 /PRNewswire-USNewswire/ -- Eight California Based consumer organizations issued this statement in response to a press release announcing the launch of a website attacking Consumer Watchdog:

The latest attack on Consumer Watchdog proves that when you take on powerful corporate interests and beat them, you make enemies.

Consumer Watchdog is a courageous and remarkably successful advocate for consumer rights.  An attack dog website was launched today that serves as a preview of the campaign against Consumer Watchdog we anticipate from George Joseph, the billionaire chairman of Mercury Insurance.  The site features personal attacks on Consumer Watchdog employees.

Mercury Insurance and its billionaire chairman George Joseph have a long standing goal of weakening consumer protections that voters enacted in Proposition 103. Consumer Watchdog is the direct descendent of the organization founded by Harvey Rosenfield that won the Proposition 103 campaign. A national study found that thanks to Prop 103, California consumers have saved tens of billions of dollars in premiums for automobile insurance.[1]

Insurance billionaire George Joseph contributed $8.2 million to qualify an insurance deregulation initiative for the November 2012 ballot. It is modeled on Mercury Insurance's failed Proposition 17 of 2010.  Mercury Chairman Joseph's 2012 initiative would raise auto insurance rates on millions of California motorists, including drivers with perfect records.

Despite Mercury's $16 million campaign, Consumer Watchdog defeated Proposition 17 in 2010. Consumer Watchdog stopped every other effort of Mercury Insurance and billionaire George Joseph to eliminate protections against unfair insurance rate hikes.

Consumer Watchdog stands up to powerful corporations, exposing fraud and abuse.  Time after time, Consumer Watchdog has demonstrated that it won't cave in to pressure from any quarter. This caused occasional friction with a few politicians when they deviated from their overall pro-consumer stance to do the bidding of corporate patrons, and who foolishly expected consumer groups to stay silent.