| FORM 990, PART III, LINE 4A |
CONSUMERS INFORMATION: CONSUMER REPORTS PUBLISHES AND DISSEMINATES INFORMATION AND ADVICE TO CONSUMERS REGARDING TOPICS SUCH AS CONSUMER GOODS, SERVICES, HEALTH AND PERSONAL FINANCE IN ORDER TO EFFECT ITS EDUCATIONAL PURPOSE. THE NUMBER OF PAID SUBSCRIBERS FOR EACH AS OF 5/31/19 INCLUDE CONSUMER REPORTS MAGAZINE 3,425,085; CONSUMER REPORTS ON HEALTH 585,419; AND CR ONLINE 2,828,651. CONSUMER REPORTS DOES NOT ACCEPT OUTSIDE ADVERTISING IN ANY OF ITS PUBLICATIONS. IN ADDITION, CONSUMER REPORTS DISSEMINATES CONSUMER INFORMATION THROUGH OTHER PRINT, RADIO, TELEVISION, ELECTRONIC PUBLISHING AND INTERACTIVE MEDIA. PRODUCT INFORMATION: CONSUMER REPORTS CONDUCTS INDEPENDENT AND IMPARTIAL TESTS AND ANALYSES ON A WIDE RANGE OF CONSUMER PRODUCTS AND SERVICES, SUCH AS ELECTRONICS, APPLIANCES, HOUSEHOLD PRODUCTS, INSURANCE, RECREATIONAL GOODS, AND CARS. THE TESTS AND SURVEYS EVALUATE HOW THE PRODUCTS AND SERVICES PERFORM AND EDUCATE CONSUMERS ON THE EXTENT TO WHICH THEY ARE CONVENIENT, SAFE, AND ECONOMICAL. DURING THE FISCAL YEAR ENDED 5/31/19, CONSUMER REPORTS CONDUCTED TESTS AND EVALUATIONS ON MORE THAN 2,600 MODELS OF VARIOUS CONSUMER PRODUCTS, MAKING USE OF ABOUT 60 LABORATORIES AND ITS AUTO TRACK. THE INFORMATION GATHERED AS A RESULT OF THESE TESTS IS DISSEMINATED TO THE GENERAL PUBLIC AS DESCRIBED ABOVE. FORM 990, PART III, LINE 4B EDUCATION AND ADVOCACY PROGRAMS: CONSUMER REPORTS IS DEDICATED TO IMPROVING THE LIVES OF CONSUMERS AND PROMOTING A FAIR, SAFE AND TRANSPARENT WORLD. WE ARE AN INDEPENDENT NONPROFIT ORGANIZATION THAT SEEKS TO EDUCATE CONSUMERS IN ORDER TO DRIVE A NEW ERA OF CONSUMER POWER AND PROTECTION. FOR MORE THAN 80 YEARS, WE HAVE BUILT A LEGACY OF TRUST AMONG CONSUMERS BY CONDUCTING RIGOROUS SCIENCE-BASED TESTING OF PRODUCTS, CHAMPIONING THE RIGHTS OF CONSUMERS IN THE HALLS OF GOVERNMENT, MOVING CORPORATE ACTORS TO PROVIDE CONSUMERS WITH GREATER TRANSPARENCY AND SAFETY, AND HELPING CONSUMERS TO NAVIGATE AN INCREASINGLY COMPLEX MARKETPLACE. WE PROVIDE OUR MILLIONS OF MEMBERS WITH INFORMATION THROUGH TESTING, RATINGS, AND REVIEW, AND WE HAVE MULTIPLE PLATFORMS FOR THE PUBLIC TO GET OUR INFORMATION AND ADVICE, INCLUDING VARIOUS ONLINE AND PRINT OUTLETS AND THE TELEVISION/VIDEO-ON-DEMAND PROGRAM "CONSUMER 101". ADDITIONALLY, CONSUMER REPORTS PROVIDES SUBSTANTIAL FREE CONSUMER EDUCATION INFORMATION AS A PUBLIC SERVICE THROUGH ONLINE ADVICE, ADVOCACY EFFORTS, SOCIAL MEDIA CAMPAIGNS, AND OTHER EFFORTS. THESE COMBINED EFFORTS LEVERAGE CONSUMER DEMAND TO PUSH THE MARKETPLACE TO PROVIDE SAFE, RELIABLE, AND HIGH-PERFORMING PRODUCTS. CONSUMER REPORTS' LONGSTANDING COMMITMENT TO EDUCATING CONSUMERS AND ADVOCATING FOR LAWS, POLICIES AND PRACTICES THAT BENEFIT CONSUMERS IS EXEMPLIFIED BY OUR FY19 (JUNE 1, 2018 THROUGH MAY 31, 2019) ACCOMPLISHMENTS, SOME OF WHICH INCLUDE: PRODUCT SAFETY CR INVESTIGATION LEADS TO RECALL OF MILLIONS OF INFANT INCLINED SLEEPERS - A CONSUMER REPORTS INVESTIGATION INTO THE SAFETY OF INFANT INCLINED SLEEPERS FOUND THAT THEY WERE TIED TO DOZENS OF INFANT DEATHS. TODAY THE OFFICIAL COUNT STANDS AT 73 DEATHS, ACCORDING TO THE CONSUMER PRODUCT SAFETY COMMISSION. CR'S INVESTIGATION PROMPTED A RECALL OF MORE THAN 5 MILLION PRODUCTS, INCLUDING FISHER-PRICE ROCK 'N PLAY SLEEPERS AND THE KIDS II ROCKING SLEEPERS. CR ALERTED CONSUMERS TO THE DANGERS ASSOCIATED WITH THE INCLINED SLEEP PRODUCTS, AND URGED ANYONE WITH A PRODUCT OR ACCESSORY TO STOP USING IT IMMEDIATELY. INFANT INCLINED SLEEPERS ARE DESIGNED TO HAVE BABIES SLEEP AT AN INCLINE BETWEEN 10 DEGREES AND 30 DEGREES. THE AMERICAN ACADEMY OF PEDIATRICS SAYS ALL SUCH PRODUCTS INCREASE THE LIKELIHOOD OF AIRWAY COMPRESSION AND SUFFOCATION. MEMBERS OF CONGRESS, SAFETY ADVOCATES, DOCTORS AND OTHER STAKEHOLDERS CREDITED CR FOR ITS WORK TO GET THESE PRODUCTS REMOVED FROM THE MARKETPLACE. CR WORKS TO RAISE THE STANDARDS FOR FURNITURE SAFETY AND PREVENT TIP-OVER DEATHS - THE CONSUMER PRODUCT SAFETY COMMISSION SAYS ONE CHILD IS KILLED EVERY TWO WEEKS WHEN A PIECE OF FURNITURE, TV, OR APPLIANCE TIPS OVER ONTO THEM. CR HAS FOUND THAT DRESSER TIP-OVERS ARE PARTICULARLY DEADLY; THEY ARE ASSOCIATED WITH AT LEAST 206 DEATHS SINCE 2000, AND MOST OF THE VICTIMS WERE CHILDREN UNDER 6. CONSUMER REPORTS' TESTING OF DRESSERS FOUND IT IS FEASIBLE FOR MANUFACTURERS TO MAKE SAFER, MORE STABLE DRESSERS ACROSS A RANGE OF PRICE POINTS. CR ADVISES PEOPLE TO SECURE DRESSERS TO THE WALLS TO AVOID TIP-OVERS, BUT POINTS OUT THAT IT IS NOT ALWAYS POSSIBLE FOR THOSE WHO RENT, OR WHO ARE NOT HANDY WITH TOOLS. CR SAYS THE FURNITURE INDUSTRY HAS A RESPONSIBILITY TO MAKE SAFER AND MORE STABLE PRODUCTS, AND THAT SAFETY SHOULD NOT DEPEND ON A PERSON'S SKILL AT ANCHORING A DRESSER TO THE WALL. IN FY19 CR WORKED WITH NEW YORK STATE LEGISLATORS IN ALBANY TO PASS "HARPER'S LAW," NAMED FOR 3-YEAR-OLD HARPER FRIED, WHO DIED FROM A TIP-OVER INCIDENT. THE BILL REQUIRES NEW YORK RETAILERS TO SELL ONLY DRESSERS AND OTHER CLOTHING STORAGE UNITS THAT MEET MINIMUM STABILITY STANDARDS, IF SUCH STANDARDS EXIST FOR THE TYPE OF FURNITURE BEING SOLD. FOR OTHER CLOTHING STORAGE UNITS, RETAILERS NEED TO ENSURE THE PRODUCTS COME WITH WALL-ANCHORING KITS. THE NY GOVERNOR SIGNED THE BILL IN FY20. CR IS ALSO WORKING ON FURNITURE SAFETY STANDARDS AT THE NATIONAL LEVEL. IN FY19 A U.S. HOUSE COMMITTEE PASSED THE STURDY ACT, A CR-BACKED BILL TO REQUIRE SAFETY STANDARDS FOR DRESSERS AND OTHER CLOTHING STORAGE UNITS TO REDUCE THE RISKS OF TIP-OVERS. THE FULL HOUSE PASSED THE BILL IN FY20, AND CR IS URGING THE SENATE TO TAKE UP THE MEASURE. SELF-DRIVING CARS LEGISLATION STALLS IN CONGRESS - CONSUMER REPORTS SAYS SELF-DRIVING CARS HAVE GREAT POTENTIAL TO DRAMATICALLY REDUCE THE NUMBER OF DEATHS ON THE ROAD, AS WELL AS IMPROVE MOBILITY FOR PEOPLE WHO CANNOT DRIVE TRADITIONAL VEHICLES. HOWEVER, SELF-DRIVING CARS WILL ONLY SUCCEED IF PEOPLE ARE CONFIDENT THAT THESE VEHICLES ARE SAFE, WITH MEANINGFUL STANDARDS TO HOLD MANUFACTURERS ACCOUNTABLE. AUTOMAKERS AND OTHER COMPANIES HAVE URGED CONGRESS TO PASS A BILL CALLED THE AV START ACT. THIS BILL WOULD SET POLICIES FOR THE DEVELOPMENT AND SALE OF SELF-DRIVING CARS, AND ACCELERATE THE DEPLOYMENT OF THESE CARS ON U.S. ROADS. CR SAYS THE AV START ACT IS DEEPLY FLAWED AND INCOMPLETE, BECAUSE IT DOES NOT PROVIDE THE NECESSARY STANDARDS TO ENSURE SELF-DRIVING CARS ARE DEMONSTRATED TO BE SAFE. CR URGED LAWMAKERS TO OVERHAUL THE BILL, OR REJECT IT. IN DECEMBER 2018 SENATORS WHO SUPPORT THE AV START ACT TRIED TO ATTACH IT TO GOVERNMENT SPENDING LEGISLATION AND PASS IT JUST BEFORE CONGRESS ADJOURNED. BUT SENATORS WHO OPPOSE THE AV START ACT PREVAILED, AND THE BILL FAILED TO ADVANCE. WHILE CR WAS PLEASED THAT THE BILL DID NOT BECOME LAW, THE BILL'S SUPPORTERS CONTINUE TO SEEK WAYS TO ADVANCE IT IN FY20, AND CR WILL CONTINUE TO SPEAK OUT FOR CONSUMER SAFETY. CR FINDS HEAVY METALS IN BABY FOOD, ADVISES PARENTS ON ALTERNATIVES - IN AUGUST 2018 CONSUMER REPORTS PUBLISHED TESTS THAT REVEALED TROUBLING LEVELS OF HEAVY METALS, SUCH AS ARSENIC, LEAD, AND CADMIUM, IN MANY POPULAR BABY AND TODDLER FOODS. OVER TIME, EXPOSURE TO HEAVY METALS CAN HARM THE HEALTH OF CHILDREN AND ADULTS. ONE OF THE BIGGEST CONCERNS IS COGNITIVE DEVELOPMENT IN VERY YOUNG CHILDREN. CR CALLED ON THE FOOD AND DRUG ADMINISTRATION TO SET LIMITS FOR HEAVY METALS IN FOOD, ADVISED COMPANIES ON WAYS TO ADDRESS THE PROBLEM, AND RECOMMENDED WAYS FOR PARENTS AND CAREGIVERS TO LIMIT CHILDREN'S EXPOSURE. |
| MCDONALD'S ANNOUNCES PLANS TO REDUCE ANTIBIOTIC USE IN BEEF - |
IN DECEMBER 2018 MCDONALD'S ANNOUNCED PLANS TO REDUCE THE USE OF ANTIBIOTICS IN ITS GLOBAL BEEF SUPPLY CHAIN. THE GOAL IS TO HELP COMBAT THE GROWING PUBLIC HEALTH PROBLEM OF ANTIBIOTIC RESISTANCE, WHICH UNDERMINES THE ABILITY OF THESE LIFESAVING DRUGS TO FIGHT DISEASE IN HUMANS. INFECTIONS FROM ANTIBIOTIC-RESISTANT BACTERIA AFFECT AT LEAST 2 MILLION PEOPLE AND CAUSE AT LEAST 23,000 DEATHS A YEAR, ACCORDING TO THE CENTERS FOR DISEASE CONTROL AND PREVENTION. THE NEW POLICY CAME AFTER MCDONALD'S, ALONG WITH 21 OTHER FAST-FOOD BURGER CHAINS, RECEIVED A FAILING GRADE IN OCTOBER 2018 FROM CONSUMER REPORTS AND OTHER GROUPS FOR ITS APPROACH TOWARD ANTIBIOTIC USE IN THE BEEF IT SERVES. THESE GRADES WERE PART OF THE ANNUAL "CHAIN REACTION" REPORT ON THE ANTIBIOTICS POLICIES OF THE NATION'S BIGGEST RESTAURANT CHAINS. CR WILL BE WATCHING CAREFULLY AS MCDONALD'S DEVELOPS TARGETS FOR REDUCTION IN THE COMING YEAR. DIGITAL PRIVACY AND DATA SECURITY CALIFORNIA GOVERNOR SIGNS PRIVACY LAW - IN JUNE 2018 THE CALIFORNIA GOVERNOR SIGNED A LAW TO MANDATE NEW PRIVACY PROTECTIONS FOR STATE RESIDENTS, INCLUDING THE RIGHT TO OPT OUT OF DATA COLLECTION AND DEMAND THAT COMPANIES DELETE DATA THAT HAS ALREADY BEEN COLLECTED. CONSUMER REPORTS' ADVOCATES WORKED WITH STATE LEGISLATORS, PRIVACY GROUPS, LOCAL CONSUMERS, AND OTHERS TO SHAPE AND IMPROVE THE LAW. WHEN SOME COMPANIES LOBBIED TO WEAKEN THE LAW BEFORE IT TAKES EFFECT IN 2020, CR TESTIFIED BEFORE THE LEGISLATURE IN FAVOR OF PRESERVING THE PROTECTIONS. LEGISLATORS AGREED WITH CR'S POSITION AND REJECTED THE INDUSTRY ATTEMPTS TO WATER DOWN THE LAW. CR EXPOSES FACEBOOK PRIVACY PROBLEM - IN MAY 2019 CONSUMER REPORTS PUBLISHED AN INVESTIGATION INTO FACEBOOK'S PRIVACY SETTINGS. CR FOUND THAT SOME FACEBOOK USERS DID NOT HAVE ACCESS TO AN IMPORTANT SETTING TO CONTROL WHETHER FACEBOOK COULD COLLECT FACIAL RECOGNITION DATA. THE SETTING WAS MISSING FOR SOME USERS, DESPITE THE FACT FACEBOOK HAD ANNOUNCED IT AND STARTED ROLLING IT OUT NEARLY 18 MONTHS EARLIER. CR REPORTED THE PROBLEM TO FACEBOOK AND FILED A COMPLAINT WITH THE FEDERAL TRADE COMMISSION, WHICH WAS ALREADY INVESTIGATING FACEBOOK FOR PRIVACY LAPSES. WHEN THE FTC ANNOUNCED A $5 BILLION SETTLEMENT WITH FACEBOOK IN JULY 2019, THE AGENCY CITED CR'S COMPLAINT AS ONE OF THE EXAMPLES OF THE COMPANY'S FAILURE TO PROTECT USERS' PRIVACY. AFTER THE INVESTIGATION WAS PUBLISHED AND THE SETTLEMENT WAS ANNOUNCED, FACEBOOK SAID IT WAS ROLLING OUT THE SETTING TO ALL USERS. FINANCIAL SECURITY AND TRANSPARENCY CR LAUNCHES "WHAT THE FEE?!" CAMPAIGN; ADVANCES BILLS IN CONGRESS TO CURB HIDDEN FEES - HIDDEN FEES COST CONSUMERS BILLIONS OF DOLLARS A YEAR. A RECENT NATIONALLY REPRESENTATIVE CR SURVEY FOUND 85 PERCENT OF RESPONDENTS HAD BEEN HIT WITH AN UNEXPECTED OR HIDDEN FEE IN THE PAST TWO YEARS. IN JUNE 2018 CR LAUNCHED THE "WHAT THE FEE?!" CAMPAIGN TO SHINE A LIGHT ON THE PROBLEM, URGE COMPANIES TO BE MORE TRANSPARENT AND HONEST ABOUT FEES, EDUCATE CONSUMERS ON WAYS TO SPOT AND AVOID FEES, AND ADVOCATE FOR REFORMS. THOUSANDS OF CONSUMERS HAVE COME TO OUR WEBSITE WHATTHEFEE.COM TO SHARE THEIR STORIES AND GET FREE TIPS FOR FIGHTING FEES. A CR COVER STORY PUBLISHED IN MAY 2019 TAKES AN IN-DEPTH LOOK AT CONSUMER FRUSTRATIONS, ADVICE, AND THE MOST COMMON SOURCES OF HIDDEN FEES. CONGRESS IS NOW CONSIDERING TWO BILLS CHAMPIONED BY CR: A BILL TO REQUIRE CABLE, PHONE AND INTERNET COMPANIES TO INCLUDE ALL FEES IN THE ADVERTISED PRICE, AND A BILL THAT PUTS SIMILAR REQUIREMENTS ON HOTELS. CR IS ALSO CALLING ON THE FTC TO INVESTIGATE AND STOP HOTELS THAT CHARGE HIDDEN RESORT FEES, WHILE WORKING WITH OFFICIALS IN MULTIPLE STATES THAT ARE TAKING LEGAL ACTION AGAINST HOTEL RESORT FEES. TECH/TELECOMMUNICATIONS CR HELPS ADVANCE BIPARTISAN BILLS IN CONGRESS TO CRACK DOWN ON ROBOCALLS - IN MARCH 2019 CONSUMER REPORTS PUBLISHED THE COVER STORY "MAD ABOUT ROBOCALLS?" ABOUT THE GROWING PROBLEM OF UNWANTED ROBOCALLS THAT DISRUPT PEOPLE'S DAILY LIVES. TOO OFTEN, THESE ROBOCALLS ARE SCAM CALLS TRYING TO TRICK PEOPLE INTO SHARING VALUABLE PERSONAL INFORMATION OR DEFRAUD THEM OUT OF THEIR MONEY. THE CR STORY INCLUDES TIPS FOR CONSUMERS TO AVOID THESE PREDATORY CALLS, PLUS RECOMMENDATIONS FOR ACTIONS BY INDUSTRY AND GOVERNMENT. CR ADVOCATES WENT TO THE U.S. CAPITOL IN APRIL 2019 TO HOST A ROUNDTABLE DISCUSSION ON ROBOCALLS WITH LAWMAKERS, BUSINESSES, AND OUTRAGED CONSUMERS. AFTER YEARS OF ADVOCACY BY CR AND OTHER GROUPS, THE U.S. HOUSE AND SENATE OVERWHELMINGLY APPROVED SEPARATE BILLS TO CURB ROBOCALLS, INCLUDING TOUGHER PENALTIES AND REQUIREMENTS FOR PHONE COMPANIES TO PROVIDE FREE TOOLS TO SPOT AND BLOCK CALLS. CR IS NOW WORKING WITH MEMBERS OF CONGRESS WHO ARE DRAFTING A FINAL VERSION OF THE BILL. CR ADVOCATES FOR NET NEUTRALITY - CONSUMER REPORTS IS A LONGTIME SUPPORTER OF NET NEUTRALITY, THE PRINCIPLE THAT INTERNET SERVICE PROVIDERS SHOULD ENABLE ACCESS TO ALL ONLINE CONTENT AND APPLICATIONS, AND WITHOUT FAVORING OR BLOCKING PARTICULAR WEBSITES OR PRODUCTS. CR WENT TO SACRAMENTO TO ADVOCATE FOR A CALIFORNIA STATE LAW TO PROVIDE NET NEUTRALITY PROTECTIONS, FOLLOWING THE FCC'S REPEAL OF NATIONAL RULES. THE CALIFORNIA GOVERNOR SIGNED THE LAW, BUT IT WAS IMMEDIATELY CHALLENGED BY THE U.S. JUSTICE DEPARTMENT. MEANWHILE, CR AND OTHER GROUPS HELPED ADVANCE A RESOLUTION IN CONGRESS TO REVERSE THE FCC'S NET NEUTRALITY REPEAL. THE U.S HOUSE APPROVED THE RESOLUTION, BUT SENATE LEADERS HAVE YET TO BRING IT UP FOR A VOTE. CR SAYS T-MOBILE-SPRINT MERGER COULD HARM CONSUMERS - CONSUMER REPORTS HAS URGED STATE AND FEDERAL OFFICIALS TO OPPOSE THE MERGER OF T-MOBILE AND SPRINT, TWO OF THE NATION'S LARGEST WIRELESS COMPANIES. CR SAYS THE DEAL COULD LEAD TO HIGHER PRICES, FEWER CONSUMER CHOICES, AND LESS COMPETITION IN THE WIRELESS MARKET. WHILE FEDERAL REGULATORS HAVE COME OUT IN SUPPORT OF THE PROPOSED MERGER, SEVERAL STATE ATTORNEYS GENERAL HAVE MOUNTED A LEGAL CHALLENGE. CONSUMER REPORTS STRONGLY SUPPORTS THIS LEGAL CHALLENGE. ENERGY CR FINDS FEDERAL ROLLBACK OF AUTO FUEL ECONOMY STANDARDS WOULD INCREASE CONSUMER COSTS - THE EPA AND DEPARTMENT OF TRANSPORTATION ARE MOVING FORWARD ON PLANS TO ROLL BACK THE FEDERAL STANDARDS FOR AUTOMOBILE FUEL ECONOMY AND EMISSIONS. CONSUMER REPORTS UNVEILED A SERIES OF STUDIES ABOUT HOW THIS MOVE WOULD AFFECT CONSUMERS. CR FOUND THAT 73 PERCENT OF AMERICANS AGREE THAT THE FEDERAL GOVERNMENT SHOULD BE SETTING HIGHER STANDARDS FOR VEHICLE EFFICIENCY. CR ANALYSIS SHOWED THAT THE CURRENT STANDARDS HELP CONSUMERS SAVE MONEY, BECAUSE IMPROVED MILEAGE IN NEW CARS MEANS FEWER TRIPS TO THE GAS PUMP, AND LOWER EMISSIONS HELP IMPROVE PUBLIC HEALTH. BY CONTRAST, THE FEDERAL PLANS TO ROLL BACK THE STANDARDS WOULD COST CONSUMERS THOUSANDS OF DOLLARS PER VEHICLE ON AVERAGE. POLICYMAKERS, NEWS MEDIA AND OTHERS HAVE CITED CR'S FINDINGS IN THE DEBATE OVER THE STANDARDS. HEALTHCARE CALIFORNIA APPROVES CR-ENDORSED LAW TO REQUIRE DOCTORS ON PROBATION TO NOTIFY PATIENTS - IN SEPTEMBER 2018 THE CALIFORNIA GOVERNOR SIGNED A LANDMARK LAW TO REQUIRE DOCTORS ON PROBATION FOR CERTAIN SERIOUS OFFENSES TO NOTIFY THEIR PATIENTS. CONSUMER REPORTS FIRST HELPED BRING PUBLIC ATTENTION TO THIS ISSUE WHEN IT PETITIONED THE MEDICAL BOARD OF CALIFORNIA TO ADOPT A PATIENT NOTIFICATION REQUIREMENT IN 2015. WHEN THE BOARD DECLINED THE PETITION, CR WORKED WITH STATE LEGISLATORS TO ADVANCE A BILL. A 2016 CR NATIONAL SURVEY FOUND 82 PERCENT OF AMERICAN CONSUMERS FAVORED THE IDEA OF DOCTORS ON PROBATION HAVING TO TELL TO TELL THEIR PATIENTS, AND WHY. CR CITED DATA IN FY19 THAT SHOWED NEARLY 500 CALIFORNIA DOCTORS WERE ON PROBATION BUT ALLOWED TO CONTINUE PRACTICING. WITH THE PASSAGE OF THIS LAW, CALIFORNIA IS THE FIRST STATE IN THE NATION TO REQUIRE PATIENT NOTIFICATION. |
| MEMBERS, STOCKHOLDERS |
FORM 990, PART VI, LINE 6 AND 7A CONSUMER REPORTS IS A NEW YORK STATE NOT-FOR-PROFIT MEMBERSHIP CORPORATION. THE MEMBERS FOR NEW YORK NOT-FOR-PROFIT LAW PURPOSES ARE ANY INDIVIDUAL WITH A PAID MEMBERSHIP TO THE CONSUMER REPORTS MEMBERSHIP PROGRAM. MEMBERS CAN ELECT THE BOARD OF DIRECTORS AT THE ANNUAL MEETING OF MEMBERS; ADOPT, AMEND OR REPEAL THE BY-LAWS OF THE CORPORATION; CALL A SPECIAL MEETING OF THE MEMBERS UNDER CERTAIN CIRCUMSTANCES; AND EXERCISE SUCH OTHER POWERS AS ARE PROVIDED BY LAW. FORM 990 REVIEW PROCESS FORM 990, PART VI, LINE 11 THE 990 IS PREPARED UTILIZING THE ASSISTANCE OF AN INDEPENDENT ACCOUNTING FIRM, KPMG. THE RELATED SERVICES FROM KPMG ARE APPROVED BY THE AUDIT COMMITTEE AS PART OF THE AUDIT APPROVAL PROCESS. AFTER THE 990 IS PREPARED BY CR FINANCE DEPARTMENT WITH COORDINATION WITH KPMG, IT IS REVIEWED BY THE CONTROLLER AND CFO BEFORE IT IS REVIEWED AND APPROVED BY THE AUDIT COMMITTEE. A COPY OF THE 990 IS THEN PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO ITS FILING. |
| CONFLICT OF INTEREST COMPLIANCE PROCESS |
FORM 990, PART VI, LINE 12C CONSUMER REPORTS' BOARD OF DIRECTORS AND STAFF MEMBERS ARE REQUIRED TO FILL OUT AND SIGN A DISCLOSURE OF INTEREST STATEMENT AND ATTESTATION OF COMPLIANCE EACH YEAR. BOARD MEMBERS' FORMS ARE REVIEWED BY A COMMITTEE OF THE BOARD; STAFF MEMBERS' FORMS ARE REVIEWED BY AN OUTSIDE INDEPENDENT REVIEWER. ANY CONFLICTS WILL BE ADDRESSED WITH THE APPLICABLE BOARD OR STAFF MEMBER, WITH UNRESOLVED CONFLICTS ADDRESSED BY THE APPROPRIATE CONFLICT OF INTEREST COMMITTEE. REMEDIES FOR CONFLICTS OF INTEREST INCLUDE RECUSAL FROM PARTICIPATION IN THE MATTER GIVING RISE TO THE CONFLICT, DISPOSING OF AN INVESTMENT, TERMINATION OF EMPLOYMENT OR RESIGNATION. |
| PROCESS FOR DETERMINING EXECUTIVE COMPENSATION |
FORM 990, PART VI, LINES 15A AND 15B THE GOVERNANCE COMMITTEE OF THE BOARD OF DIRECTORS REVIEWS THE COMPENSATION PROVIDED TO CR'S PRESIDENT AND SENIOR EXECUTIVE STAFF TO ENSURE THAT THEY ARE CONSISTENT WITH CR'S MISSION, ARE DESIGNED TO ATTRACT AND RETAIN THE HIGH LEVELS OF LEADERSHIP TALENT NEEDED TO ACHIEVE CR'S OPERATING PLANS, AND ARE COMPLIANT WITH LAW. TO THAT END, THE GOVERNANCE COMMITTEE (1) RECOMMENDS TO THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS COMPENSATION PLANS AND PAY LEVELS FOR THE PRESIDENT, TAKING INTO ACCOUNT PEER GROUP PRACTICES AND ANY SPECIAL CONSIDERATIONS, AS WELL AS EMPLOYMENT AGREEMENTS; (2) REVIEWS THE COMPENSATION OF THE PRESIDENT AND SENIOR EXECUTIVE STAFF TO ENSURE COMPLIANCE WITH THE IRS INTERMEDIATE SANCTION REQUIREMENTS; AND (3) REVIEWS AND APPROVES (A) FOR EXECUTIVES REPORTING DIRECTLY TO THE PRESIDENT, ANY PROPOSED COMPENSATION INCREASE FOR THE PROPOSED COMPENSATION FOR ANY NEW HIRE AND (B) FOR EXECUTIVES NOT REPORTING DIRECTLY TO THE PRESIDENT, (I) ANY PROPOSED COMPENSATION INCREASE THAT EXCEEDS THE ANNUAL SALARY INCREASE GUIDELINES ESTABLISHED BY HUMAN RESOURCES AND (II) THE PROPOSED COMPENSATION FOR ANY NEW EXECUTIVE HIRE THAT EXCEEDS THE MARKET MEDIAN AS REPORTED IN EXECUTIVE COMPENSATION STUDIES CONDUCTED BY A THIRD PARTY EXECUTIVE COMPENSATION CONSULTING FIRM. THE EXECUTIVE COMMITTEE'S RECOMMENDATION ON THE PRESIDENT'S COMPENSATION PLANS AND PAY LEVELS IS VOTED ON BY THE FULL BOARD OF DIRECTORS. DELIBERATIONS AND DECISIONS REGARDING THE FOREGOING COMPENSATION ARRANGEMENTS ARE CONTEMPORANEOUSLY RECORDED IN THE ORGANIZATION'S MINUTES. THE FOREGOING PROCESS FOR ESTABLISHING COMPENSATION FOR THE INDICATED PERSONS WAS LAST UNDERTAKEN IN APRIL AND MAY OF 2019. |
| PUBLIC AVAILABILITY OF FINANCIAL STATEMENTS AND GOVERNING DOCUMENTS |
FORM 990, PART VI, LINE 19 CONSUMER REPORTS' ANNUAL FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC ON ITS WEBSITE, WWW.CONSUMERREPORTS.ORG. OUR GOVERNING DOCUMENTS, FORM 1023, AND CONFLICT OF INTEREST POLICY ARE AVAILABLE TO THE PUBLIC UPON REQUEST. |
| NET ASSET CLASSIFICATION |
FORM 990, PART X, LINES 27-29 THE FASB ISSUED ACCOUNTING STANDARDS UPDATE (ASU) 2016-14 NOT-FOR-PROFIT ENTITIES (TOPIC 958), PRESENTATION OF FINANCIAL STATEMENTS OF NOT-FOR PROFIT ENTITIES, WHICH AMONG OTHER THINGS, CHANGES HOW NOT-FOR-PROFIT ENTITIES REPORT NET ASSET CLASSES. THE SIGNIFICANT REQUIREMENTS OF ASU 2016-14 INCLUDE REDUCTION IN THE NUMBER OF NET ASSET CLASSES FROM THREE TO TWO: WITH DONOR RESTRICTIONS (FORMERLY REPORTED AS TEMPORARILY RESTRICTED NET ASSETS) AND WITHOUT DONOR RESTRICTIONS (FORMERLY REPORTED AS UNRESTRICTED NET ASSETS). THE 2018 FORM 990, PART X WAS NOT UPDATED TO REFLECT THE CHANGE IN NET ASSET CLASS TERMINOLOGY; THEREFORE, CONSUMER REPORTS HAS REPORTED NET ASSETS WITHOUT DONOR RESTRICTION AS UNRESTRICTED NET ASSETS AND NET ASSETS WITH DONOR RESTRICTIONS AS TEMPORARILY RESTRICTED NET ASSETS. OTHER CHANGES IN NET ASSETS OR FUND BALANCES PART XI, LINE 9 UNREALIZED LOSS INTEREST RATE SWAP $ (913,000) PENSION RELATED CHANGES $ (2,299,000) CHANGE IN VALUE OF SPLIT INTEREST AGREEMENT $ 132,888 ROUNDING $ (1,494) ----------------- TOTAL OTHER CHANGES IN NET ASSETS OR FUND BALANCES $ (3,080,606) |
Attach to Form 990 or 990-EZ.