| FORM 990, PART III, LINE 4A |
CONSUMER 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 IT'S EDUCATIONAL PURPOSE. THE NUMBER OF PAID SUBSCRIBERS FOR EACH AS OF 5/31/23 INCLUDE CONSUMER REPORTS MAGAZINE 2,632,673; CONSUMER REPORTS ON HEALTH 464,376; AND CR ONLINE 2,785,245. 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 5/31/23, CONSUMER REPORTS CONDUCTED TESTS AND EVALUATIONS ON MORE THAN 2200 MODELS OF VARIOUS CONSUMER PRODUCTS, MAKING USE OF ABOUT 60 LABORATORIES AND ITS AUTO TRACK. THE INFORMATION GATHERED AS RESULT OF THESE TESTS IS DISSEMINATED TO THE GENERAL PUBLIC AS DESCRIBED ABOVE. |
| FORM 990, PART III, LINE 4B |
CONSUMER REPORTS IS DEDICATED TO IMPROVING THE LIVES OF CONSUMERS AND CREATING A FAIR AND JUST MARKETPLACE FOR ALL OF US. WE ARE AN INDEPENDENT, NONPROFIT ORGANIZATION WITH 6 MILLION MEMBERS ACROSS THE U.S. CR SEEKS TO EMPOWER CONSUMERS WITH INFORMATION TO MAKE INFORMED DECISIONS ABOUT THE PRODUCTS THEY BUY, AS WELL AS INFORMATION TO ADVOCATE FOR CONSUMER RIGHTS. IN THE 87 YEARS SINCE CR WAS FOUNDED, WE HAVE BUILT A LEGACY OF TRUST AMONG CONSUMERS BY CONDUCTING EXPERT RIGOROUS SCIENCE-BASED TESTING OF PRODUCTS AND SERVICES, INCENTIVIZING CORPORATIONS TO PRIORITIZE SAFETY AND TRANSPARENCY, AND WORKING WITH POLICYMAKERS TO ENSHRINE THE RIGHTS AND INTERESTS OF CONSUMERS IN LAWS AND REGULATIONS. WE PROVIDE TRUSTED INFORMATION THROUGH TESTING, RATINGS, AND REVIEWS; SURVEYS, REPORTS AND ANALYSES; AND INVESTIGATIVE AND SERVICE JOURNALISM - ALL OF WHICH IS DISSEMINATED THROUGH MULTIPLE DIGITAL AND PRINT PLATFORMS THAT REACH MORE THAN 15 MILLION PEOPLE EACH MONTH. THE PUBLIC CAN ACCESS SUBSTANTIAL FREE CONSUMER EDUCATION INFORMATION AS A PUBLIC SERVICE THROUGH CONSUMERREPORTS.ORG, CR SOCIAL MEDIA CHANNELS, WEBINARS, PARTNERSHIPS WITH 170 ENGLISH AND SPANISH LOCAL TV STATIONS, AND MEDIA COVERAGE. THESE COMBINED EFFORTS LEVERAGE CONSUMER DEMAND TO SHAPE A PRO-CONSUMER MARKETPLACE, AND WE ENGAGE DIRECTLY WITH INDUSTRY TO SET STANDARDS AND PROMOTE SAFETY, DIGITAL RIGHTS, FINANCIAL FAIRNESS AND SUSTAINABILITY PRINCIPLES IN THE DESIGN AND DELIVERY OF PRODUCTS AND SERVICES. CONSUMER REPORTS' LONGSTANDING COMMITMENT TO EDUCATING CONSUMERS AND ADVOCATING FOR LAWS, POLICIES AND PRACTICES THAT BENEFIT CONSUMERS IS EXEMPLIFIED BY OUR FY 23 (JUNE 1, 2022 THROUGH MAY 31, 2023) ACCOMPLISHMENTS, SOME OF WHICH INCLUDE: PRODUCT SAFETY: - CR CHAMPIONS LANDMARK LAW TO HELP PREVENT DEADLY FURNITURE TIP-OVERS EVERY YEAR, MORE THAN 5,000 PEOPLE GO TO THE ER BECAUSE OF DRESSERS AND OTHER CLOTHING STORAGE UNITS THAT TIP OVER AND FALL ONTO THEM. AT LEAST 234 PEOPLE HAVE DIED OVER THE LAST TWO DECADES, ACCORDING TO THE CONSUMER PRODUCT SAFETY COMMISSION. TRAGICALLY, THE LARGE MAJORITY OF TIP-OVER VICTIMS ARE YOUNG CHILDREN. CR HAS WARNED CONSUMERS, FURNITURE MANUFACTURERS, AND POLICYMAKERS ABOUT THE DANGERS OF TIP-OVERS FOR YEARS. ONE OF THE FUNDAMENTAL PROBLEMS HAS BEEN THE LACK OF RULES FOR DRESSER STABILITY. MANUFACTURERS ONLY HAD A VOLUNTARY STANDARD TO GUIDE THEM. CR TESTED DOZENS OF DRESSERS, AND WE FOUND THAT COMPANIES WERE CAPABLE OF MAKING SAFE, STURDY PRODUCTS ACROSS A RANGE OF PRICE POINTS, BUT OTHER DRESSERS WERE UNSTABLE AND PRONE TO TIPPING OVER. WE PROVIDED FREE INFORMATION FOR HOW TO SECURE A DRESSER TO THE WALL WITH ANCHORS. MANY CONSUMERS TOLD US THEY WERE UNAWARE OF ANCHORS OR COULDN'T FIND THEM AT RETAILERS. SOME PEOPLE THOUGHT ANCHORS WERE UNNECESSARY OR TOO COMPLICATED TO USE, AND SOME HAD RENTAL HOMES WITH RULES FOR PUTTING HOLES IN WALLS. IT WAS CLEAR THAT OFFERING ANCHORS ALONE WAS NOT A SOLUTION, AND A VOLUNTARY SAFETY STANDARD WAS NOT SUFFICIENT. WE NEEDED A LAW. CR'S EXPERTS WENT TO CAPITOL HILL TO WORK WITH MEMBERS OF CONGRESS ON A BILL CALLED THE STURDY ACT. THE WORD "STURDY" STANDS FOR "STOP TIP-OVERS OF UNSTABLE, RISKY DRESSERS ON YOUTH." IT CREATES THE FIRST MANDATORY STABILITY STANDARD FOR DRESSERS AND SIMILAR FURNITURE, AND IT ALSO REQUIRES THEM TO BE SOLD WITH WALL ANCHORS. WE MET WITH PARENTS WHOSE CHILDREN HAD BEEN KILLED IN TIP-OVER INCIDENTS. THEY WANTED TO TURN THEIR GRIEF INTO ACTION, AND WE HELPED THEM ORGANIZE THE GROUP "PARENTS AGAINST TIPOVERS." THEY BECAME POWERFUL ADVOCATES FOR THE STURDY ACT, WORKING WITH CR AND OTHER SAFETY AND HEALTH GROUPS. WE ORGANIZED MORE THAN 20,000 PEOPLE TO SIGN PETITIONS TO CONGRESS, AND GENERATED MORE THAN 25,000 PHONE CALLS FROM CONSUMERS TO THEIR SENATORS AND REPRESENTATIVES. WE GOT COMPANIES LIKE HOME DEPOT AND IKEA TO JOIN US IN SUPPORTING THE BILL, AND LAWMAKERS FROM BOTH POLITICAL PARTIES CAME TOGETHER TO CO-SPONSOR IT. IN DECEMBER 2022, CONGRESS APPROVED THE STURDY ACT WAS AS PART OF A LARGER BILL, AND THE PRESIDENT SIGNED IT INTO LAW. IT OFFICIALLY TOOK EFFECT ON SEPTEMBER 1, 2023. - ENSURING THAT SAFETY COMES STANDARD IN EVERY CAR CR IS A LONGTIME ADVOCATE FOR AUTOMATIC EMERGENCY BRAKING (AEB) SYSTEMS. WE BELIEVE THIS LIFE-SAVING TECHNOLOGY SHOULD BE INSTALLED IN EVERY NEW CAR. FOR A VEHICLE TO BE NAMED A CR "TOP PICK," AEB MUST COME AS STANDARD EQUIPMENT. THIS IS PART OF OUR LONG TRADITION OF CREATING INCENTIVES FOR AUTOMAKERS TO MAKE SAFER VEHICLES. WE ALSO MEET REGULARLY WITH INDUSTRY AND REGULATORS TO ADVANCE POLICIES THAT PUT AEB SYSTEMS IN MORE CARS AND TRUCKS. IN MAY 2023 THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION (NHTSA) PROPOSED A RULE THAT WOULD REQUIRE ALL NEW PASSENGER VEHICLES TO COME WITH AEB SYSTEMS THAT CAN PREVENT OR MITIGATE FRONTAL CRASHES WITH CARS AND PEDESTRIANS INCLUDING AT HIGHER SPEEDS, AND AT NIGHT. THIS PROPOSED RULE COULD PREVENT OVER 24,000 INJURIES PER YEAR, ACCORDING TO NHTSA. CR WELCOMED THE PROPOSAL, AND WE'RE NOW RECOMMENDING WAYS FOR NHTSA TO IMPROVE AND STRENGTHEN THE RULE. CR IS ALSO ORGANIZING CONSUMERS TO PETITION AUTOMAKERS TO MAKE ANOTHER SAFETY FEATURE AUTOMATIC CRASH NOTIFICATION AVAILABLE FOR FREE IN EVERY NEW VEHICLE. THIS FEATURE CAN AUTOMATICALLY CALL FOR HELP IN AN EMERGENCY AND GIVE THE PRECISE LOCATION OF THE VEHICLE, EVEN IF THE DRIVER CAN'T. IT'S ALREADY MANDATORY IN NEW CARS SOLD IN MOST OF EUROPE. PLUS, CR OPENED OUR NEW AUTO TEST LOOP IN CONNECTICUT TO EVALUATE THE LATEST DRIVER-ASSIST FEATURES. THE LOOP LETS US SAFELY TEST CAR FUNCTIONS SUCH AS LANE CENTERING ASSISTANCE, LANE DEPARTURE WARNING, AND ADAPTIVE CRUISE CONTROL IN REAL-WORLD DRIVING SCENARIOS. THESE TECHNOLOGIES CAN MAKE DRIVING EASIER AND SAFER WHEN THEY ARE DONE CORRECTLY. BUT A POORLY DESIGNED SYSTEM CAN PUT DRIVERS AT SERIOUS RISK. FOOD AND WATER SAFETY: - EXPOSING HEAVY METALS IN DARK CHOCOLATES CR FOUND LEAD AND CADMIUM IN 23 POPULAR DARK CHOCOLATE BRANDS FROM COMPANIES LIKE HERSHEY'S, THEO, AND TRADER JOE'S. STUDIES HAVE SUGGESTED THAT HEAVY METALS LIKE LEAD AND CADMIUM ARE LINKED TO A HOST OF HEALTH PROBLEMS IN CHILDREN AND ADULTS. WE INFORMED CONSUMERS ABOUT WHICH CHOCOLATES HAD THE HIGHEST LEVELS OF HEAVY METALS, AND WHICH ONES WERE FOUND TO BE SAFER. WE ADVISED PEOPLE ON WAYS THAT THEY CAN STILL ENJOY CHOCOLATES WHILE AVOIDING THE RISKS. MORE THAN 75,000 PEOPLE SIGNED CR'S PETITION TO URGE COMPANIES TO GET HEAVY METALS OUT OF THEIR CHOCOLATE PRODUCTS. - WORKING TO REMOVE HARMFUL CHEMICALS FROM OUR FOODS CR IS LEADING THE FIGHT TO REMOVE TOXIC CHEMICALS LIKE RED DYE NO. 3 FROM OUR FOOD. MORE THAN 30 YEARS AGO, THE FOOD AND DRUG ADMINISTRATION BANNED THE USE OF RED DYE NO. 3 IN COSMETICS, CITING STUDIES THAT LINKED THE ADDITIVE TO THYROID CANCER IN ANIMALS. HOWEVER, THE CHEMICAL IS STILL USED IN THOUSANDS OF FOOD PRODUCTS, INCLUDING CANDIES, COOKIES, AND OTHER FOODS MARKETED TO KIDS. IN FY23 CR CO-SPONSORED A BILL IN THE CALIFORNIA LEGISLATURE TO BAN RED DYE NO. 3 IN FOOD, ALONG WITH THREE OTHER FOOD CHEMICALS LINKED TO A RANGE OF HEALTH HARMS. THE HISTORIC BILL WAS SIGNED INTO LAW IN OCTOBER 2023, AND IT WILL GO INTO EFFECT IN JANUARY 2027. WHILE THE LAW APPLIES TO FOODS IN CALIFORNIA, ITS EFFECT COULD BE FELT MUCH FURTHER, AS COMPANIES MAY DECIDE TO OFFER THE SAME FOOD PRODUCTS TO CONSUMERS NATIONWIDE. CR IS ALSO GOING DIRECTLY TO FOOD COMPANIES TO PRESS THEM TO DROP THESE CHEMICALS IMMEDIATELY, AS MANY ARE ALREADY BANNED OR RESTRICTED FROM FOOD SOLD IN EUROPE. THE COMPANY JUST BORN, WHICH MAKES THE POPULAR PEEPS CANDIES, TOLD CR IT WILL NO LONGER USE RED DYE 3 IN ANY OF ITS PRODUCTS AFTER EASTER 2024. - RAISING THE BAR FOR SAFER WATER IN MARCH 2023 THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED ITS FIRST-EVER ENFORCEABLE LIMITS ON PFAS IN WATER. PFAS ARE OFTEN CALLED "FOREVER CHEMICALS" BECAUSE THEY DON'T BREAK DOWN EASILY. PFAS HAVE BEEN ASSOCIATED WITH HEALTH PROBLEMS SUCH INCREASED RISK OF SOME CANCERS, DECREASED FERTILITY, AND REDUCED ABILITY TO FIGHT INFECTIONS. THE EPA'S PROPOSAL FOLLOWED CALLS BY CR FOR STANDARDS TO REDUCE PEOPLE'S EXPOSURE TO PFAS. WE ARE NOW PETITIONING EPA TO FINALIZE AND IMPLEMENT STRONG LIMITS. IN FY23 CR COMPLETED AN INVESTIGATION INTO THE SAFETY OF DRINKING WATER IN MISSISSIPPI, WHICH HAS A HISTORY OF FAILING TO PROVIDE CLEAN, RELIABLE DRINKING WATER FOR RESIDENTS. WE COLLECTED TAP WATER FROM PEOPLE IN ALL 84 COUNTIES ACROSS THE STATE. IN FY24 WE REPORTED THE TROUBLING LEVELS OF PFAS, LEAD, AND OTHER CONTAMINANTS IN THE WATER, WORKING WITH THE LOCAL NEWS ORGANIZATION MISSISSIPPI SPOTLIGHT. WE CALLED ON STATE AND FEDERAL OFFICIALS TO TAKE SPECIFIC ACTIONS TO REDUCE THE RISKS. DIGITAL RIGHTS: - WINNING BIG VICTORIES FOR THE "RIGHT TO REPAIR" YOUR DIGITAL DEVICES |
| FORM 990, PART III, LINE 4B (CONTINUED) |
WHEN YOUR SMARTPHONE IS BROKEN, YOU OFTEN HAVE TWO CHOICES: GET IT FIXED BY THE MANUFACTURER'S REPAIR SERVICE FOR A PREMIUM PRICE, OR THROW IT AWAY AND BUY A NEW ONE, WHICH ADDS TO THE TONS OF ELECTRONICS IN LANDFILLS. MANY COMPANIES HAVE REFUSED TO LET PEOPLE TAKE THEIR BROKEN PRODUCTS TO INDEPENDENT REPAIR SHOPS THAT MAY CHARGE MORE COMPETITIVE PRICES, AND MANY WON'T LET CONSUMERS GET THE PARTS THEY NEED TO FIX THEIR DEVICES THEMSELVES. THIS INDUSTRY PRACTICE HAS SPARKED A GRASSROOTS MOVEMENT FOR THE "RIGHT TO REPAIR." THE ISSUE TOUCHES ON THREE OF CR'S PRIORITY AREAS: DIGITAL RIGHTS, SUSTAINABILITY AND FINANCIAL FAIRNESS. CR WROTE A MODEL RIGHT-TO-REPAIR BILL. IT SAYS MANUFACTURERS MUST PROVIDE REPAIR TOOLS, MANUALS, AND REPLACEMENT PARTS TO CONSUMERS AND INDEPENDENT REPAIR SHOPS. OUR MODEL HAS BEEN USED TO CRAFT LEGISLATION IN CONGRESS AND MORE THAN A DOZEN STATES. IN THE NEW YORK LEGISLATURE, OFFICIALS WORKED WITH CR ON A BILL CALLED THE DIGITAL FAIR REPAIR ACT, WHICH FOCUSES ON SMARTPHONES, LAPTOPS, AND TABLETS. THE BILL PASSED OVERWHELMINGLY, BUT COMPANIES CALLED ON THE GOVERNOR TO VETO IT. OUR NEW YORK MEMBERS MADE HUNDREDS OF PHONE CALLS AND SENT THOUSANDS OF EMAILS TO THEIR LEGISLATORS AND THE GOVERNOR. THE NEW YORK DAILY NEWS PUBLISHED AN OP-ED BY CR TO URGE THE GOVERNOR TO SIGN THE BILL. THE GOVERNOR ULTIMATELY DID SIGN IT, AND NEW YORK BECAME THE FIRST STATE WITH A BROAD RIGHT TO REPAIR LAW. BUILDING ON THIS MOMENTUM, CR TOOK THE FIGHT TO MINNESOTA, WHERE THE GOVERNOR SIGNED AN EVEN STRONGER LAW THAT GUARANTEES THE RIGHT TO REPAIR PHONES, APPLIANCES, BUSINESS COMPUTERS, AND OTHER PRODUCTS. IN FY24 THE STATE OF CALIFORNIA PASSED A STRONG RIGHT TO REPAIR LAW OF ITS OWN, AND CR CONTINUES TO PUSH FOR LAWS AT THE STATE AND NATIONAL LEVEL. - A CR INVESTIGATION LEADS TO "GAME CHANGER" FOR DATA PRIVACY FOR THE FIRST TIME EVER, THE FEDERAL GOVERNMENT PUNISHED AN ONLINE COMPANY FOR SHARING ITS USERS' SENSITIVE HEALTH DATA WITH ADVERTISERS. OFFICIALS CREDITED CR FOR DISCOVERING THE PROBLEM. IT STARTED IN 2020, WHEN CR INVESTIGATED GOODRX, AN ONLINE PLATFORM THAT OFFERS DISCOUNTS FOR PRESCRIPTION DRUGS. WE FOUND THAT GOODRX WAS SHARING CONSUMERS' PERSONAL DETAILS WITH MORE THAN 20 OTHER INTERNET-BASED COMPANIES, INCLUDING GOOGLE AND FACEBOOK. THE DATA INCLUDED THE NAMES OF MEDICATIONS PEOPLE WERE RESEARCHING, AND OTHER DETAILS THAT COULD LET THEM PINPOINT WHOSE PHONE OR LAPTOP WAS BEING USED. SHORTLY AFTER OUR STORY WAS PUBLISHED, GOODRX ANNOUNCED THAT IT WOULD TAKE STEPS TO ADDRESS SOME OF THE PROBLEMS RAISED BY CR. IN 2023 THE FEDERAL TRADE COMMISSION ANNOUNCED AN UNPRECEDENTED ENFORCEMENT ACTION AGAINST GOODRX. UNDER A PROPOSED ORDER, THE FTC SAID GOODRX AGREED TO PAY A $1.5 MILLION CIVIL PENALTY FOR FAILING TO REPORT ITS UNAUTHORIZED DISCLOSURE OF CONSUMER HEALTH DATA TO COMPANIES, AND IT AGREED TO STOP THE SHARING PRACTICES. THE FTC SAID IT WAS CR THAT BROUGHT THE ISSUE TO LIGHT. THIS IS THE FIRST TIME THE FTC HAS TAKEN ACTION UNDER A MEASURE CALLED THE HEALTH BREACH NOTIFICATION RULE. IT'S A POTENTIAL GAME-CHANGER FOR DIGITAL RIGHTS. AS CR PRESIDENT MARTA TELLADO TOLD THE ASSOCIATED PRESS: "THIS IS A WIN FOR CONSUMERS, AND IT COULD HAVE A PROFOUND EFFECT ON HOW OUR HEALTH INFORMATION IS KEPT PRIVATE MOVING FORWARD." - SHINING A LIGHT ON THE TRUE COST OF INTERNET SERVICE WITH INPUT FROM CR, THE FEDERAL COMMUNICATIONS COMMISSION PROPOSED A RULE TO MANDATE A "NUTRITION" LABEL FOR INTERNET SERVICES. THE RULE WOULD REQUIRE INTERNET PROVIDERS TO DISPLAY EASY-TO-READ, NUTRITION-STYLE LABELS ABOUT THE ACTUAL COSTS AND TERMS OF SERVICE WHEREVER THEY ADVERTISE THEIR PLANS. IT WOULD HELP CONSUMERS COMPARE PRICES AMONG PROVIDERS, AND BE BETTER INFORMED BEFORE THEY GET LOCKED INTO A CONTRACT. THE FCC ANNOUNCED THE PROPOSAL ON THE SAME DAY THAT CR UNVEILED OUR MASSIVE REPORT ON MORE THAN 22,000 BILLS WE COLLECTED FROM BROADBAND USERS ACROSS THE U.S. WE FOUND FRESH EVIDENCE OF CONFUSING BILLS, HIDDEN FEES, AND A LACK OF COMPETITION AMONG PROVIDERS. WE CITED THIS DATA IN ADVOCATING FOR THE FCC LABEL. MORE THAN 30,000 PEOPLE SIGNED CR'S PETITION TO URGE THE FCC TO FINALIZE A STRONG LABEL. FINANCIAL FAIRNESS: - INVESTIGATING DIGITAL FINANCIAL SERVICES AND EDUCATING CONSUMERS ABOUT THE RISKS IN FY23 CR INTRODUCED THE "FAIR DIGITAL FINANCE FRAMEWORK." THIS FRAMEWORK IS DESIGNED TO EVALUATE THE FAST-GROWING NUMBER OF FINANCIAL APPS AND WEBSITES. THE EVALUATIONS FOCUS ON SAFETY, SECURITY, PRIVACY, TRANSPARENCY, AND OTHER PRINCIPLES. WITH THIS DATA, WE CAN EDUCATE AND EMPOWER CONSUMERS, AND WE CAN ADVOCATE FOR MEANINGFUL STANDARDS. WE FIRST APPLIED THE FRAMEWORK TO FOUR POPULAR PEER-TO-PEER PAYMENT APPS: APPLE CASH, CASH APP, VENMO AND ZELLE. WE FOUND THAT THE APPS CAN BE CONVENIENT, BUT THEY CARRY REAL RISKS. IF YOU GET STUNG BY FRAUD OR YOU SEND A PAYMENT TO THE WRONG PERSON, NONE OF THE APPS WE EVALUATED WOULD INTERVENE OR REIMBURSE YOU. ALL OF THEM COLLECTED A SIGNIFICANT AMOUNT OF PERSONAL INFORMATION, WHICH MAY BE SHARED WITH UNDISCLOSED COMPANIES. IT CAN BE HARD FOR USERS TO DELETE THEIR OWN DATA, AND SOME APPS WERE NOT CLEAR ABOUT WHETHER A CERTAIN PAYMENT WAS COVERED BY FEDERAL INSURANCE. MONTHS LATER, WE USED THE SAME FRAMEWORK TO SIZE UP "BUY NOW, PAY LATER" SERVICES, WHICH HAVE EXPLODED IN POPULARITY. WE FOUND PROBLEMS WITH CONFUSING RATES, MURKY FEES, AND SUBPAR SECURITY. WE PROVIDED TIPS AND ADVICE FOR CONSUMERS TO PROTECT THEMSELVES WHEN USING THESE PRODUCTS. THE EVALUATIONS MADE IT CLEAR THAT FINANCIAL RULES WERE NOT KEEPING PACE WITH THE FAST CONSUMER ADOPTION OF THESE SERVICES. CR HELD A SERIES OF MEETINGS WITH COMPANIES AND GOVERNMENT OFFICIALS TO WALK THROUGH THE FINDINGS AND RECOMMEND SOLUTIONS. THESE STAKEHOLDERS GAVE CR IMPORTANT VALIDATION, SAYING THE FRAMEWORK OFFERS INSIGHTS THAT CAN FILL CRITICAL GAPS IN OVERSIGHT, AND IT PROVIDES CONCRETE DATA ON WHICH POLICIES ARE WORKING, AND WHICH ONES ARE COMING UP SHORT. - CRACKING DOWN ON "JUNK FEES" THE WHITE HOUSE ANNOUNCED A SERIES OF INITIATIVES TO STOP HIDDEN FEES THAT COMPANIES SNEAK ONTO CONSUMERS' BILLS. THE PRESIDENT AND OTHER OFFICIALS CITED CR'S WORK TO EXPOSE AND ELIMINATE THESE KINDS OF FEES OVER THE LAST SEVERAL YEARS. WE ARE NOW ORGANIZING CONSUMERS TO PRESSURE CONGRESS TO PASS BILLS SUCH AS THE JUNK FEE PREVENTION ACT, WHICH AIMS TO GET RID OF EXCESSIVE, HIDDEN, AND UNNECESSARY FEES IMPOSED ON CONSUMERS BY THE TICKETING, HOTEL, AIRLINE, INTERNET, AND PAY-TV INDUSTRIES. CR PROVIDED CONSUMER STORIES AND INPUT TO THE FEDERAL TRADE COMMISSION AS IT DRAFTED A PROPOSED RULE TO ADDRESS JUNK FEES. SUSTAINABILITY: - ASKING AMERICANS ABOUT THE DRIVE TO GO ELECTRIC, AND ADVOCATING FOR CLEAN, AFFORDABLE TRANSPORTATION. CR CONDUCTED OUR LARGEST NATIONALLY REPRESENTATIVE SURVEY EVER TO UNDERSTAND WHAT CONSUMERS THINK ABOUT ELECTRIC VEHICLES (EVS), AND WHAT FACTORS WOULD MAKE PEOPLE MORE OR LESS LIKELY TO GET ONE. THE 2022 SURVEY FOUND THAT 71 PERCENT OF AMERICANS HAD SOME LEVEL OF INTEREST IN BUYING OR LEASING AN EV. THIRTY-FOUR PERCENT SAID THEY WOULD "DEFINITELY OR "SERIOUSLY" CONSIDER GETTING AN EV IF THEY WERE TO BUY A VEHICLE TODAY. AMONG THE REASONS: MORE THAN 3 IN 10 U.S. ADULTS SAID THAT IT COSTS LESS TO CHARGE AN EV THAN TO REFUEL A GAS CAR (33 PERCENT), OVERALL LIFETIME COSTS ARE LOWER (31 PERCENT), AND MAINTENANCE COSTS ARE LOWER (28 PERCENT). FOR THE PEOPLE WHO DID NOT SAY THEY'D "DEFINITELY" BUY OR LEASE AN EV, THE TOP THREE BARRIERS THEY GAVE WERE CHARGING LOGISTICS (SUCH AS WHERE AND WHEN TO CHARGE IT), THE NUMBER OF MILES THE VEHICLE COULD GO BEFORE NEEDING A CHARGE, AND THE COSTS INVOLVED WITH BUYING, OWNING, AND MAINTAINING AN EV. CR SHARED OUR FINDINGS WITH AUTOMAKERS, AND WE TESTIFIED BEFORE CONGRESS, THE ENVIRONMENTAL PROTECTION AGENCY, AND THE DEPARTMENT OF TRANSPORTATION. WE RECOMMENDED WAYS TO REDUCE VEHICLE EMISSIONS, HELP DRIVERS SAVE MONEY ON FUEL, EXPAND THE NUMBER OF EV CHARGING STATIONS, AND EXTEND TAX CREDITS TO HELP LOWER THE COST OF GETTING A NEW OR USED EV. CR WAS INVITED BY THE WHITE HOUSE TO PARTICIPATE IN DISCUSSIONS ABOUT THE TRANSITION TO CLEANER TRANSPORTATION. IN FY23 CR ALSO LAUNCHED A NEW ONLINE HUB TO HELP CAR BUYERS WHO ARE LOOKING INTO EVS AND HYBRIDS AT CR.ORG/HYBRIDS-EVS. - PUSHING FOR NEW STANDARDS TO MINIMIZE THE IMPACT OF GIANT E-COMMERCE WAREHOUSES ON RESIDENTIAL NEIGHBORHOODS. THE EXPLOSIVE GROWTH OF E-COMMERCE HAS LED TO A DRAMATIC INCREASE IN INDUSTRIAL WAREHOUSES TO FULFILL ONLINE ORDERS. A 2021 CR INVESTIGATION FOUND THAT AMAZON OPENED MOST OF ITS WAREHOUSES IN NEIGHBORHOODS WITH A DISPROPORTIONATELY HIGH NUMBER OF PEOPLE OF COLOR AND LOW-INCOME RESIDENTS. WE HEARD FROM RESIDENTS ABOUT POLLUTION, TRAFFIC, AND NOISE IN THEIR COMMUNITIES SINCE THESE WAREHOUSES OPENED. |
| FORM 990, PART III, LINE 4B (CONTINUED) |
IN FY23 CR TOOK A CLOSE LOOK AT TWO HUGE AMAZON WAREHOUSES IN BROOKLYN'S RED HOOK NEIGHBORHOOD. WE WORKED WITH RESIDENTS AND LOCAL BUSINESSES TO INSTALL POLLUTION AND TRAFFIC SENSORS. THE SENSORS RECORDED DAILY SPIKES IN TRUCK AND VAN TRAFFIC ON NARROW TWO-LANE STREETS, AND LOGGED MANY DAYS WITH ELEVATED AIR POLLUTION. WITH THESE FINDINGS, CR IS NOW WORKING WITH RESIDENTS AND OFFICIALS TO FIND WAYS TO REDUCE THE ENVIRONMENTAL IMPACT OF THESE WAREHOUSES. MANY OF TODAY'S REGULATIONS WERE WRITTEN DECADES AGO, LONG BEFORE THESE LARGE, ROUND-THE-CLOCK E-COMMERCE FACILITIES EXISTED. IN NEW YORK, CITY AND STATE POLICYMAKERS ARE CITING CR'S INVESTIGATIONS AS THEY INTRODUCE PROPOSALS TO REIN IN THESE BIG OPERATIONS IN THEIR COMMUNITIES. |
| FORM 990, PART VI, SECTION A, LINE 6 |
MEMBERS, STOCKHOLDERS 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, PART VI, SECTION A, LINE 7A |
SEE EXPLANATION ON LINE 6 ABOVE. |
| FORM 990, PART VI, SECTION B, LINE 11B |
FORM 990 REVIEW PROCESS 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. |
| FORM 990, PART VI, SECTION B, LINE 12C |
CONFLICT OF INTEREST COMPLIANCE PROCESS 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. |
| FORM 990, PART VI, SECTION B, LINE 15 |
THE EXECUTIVE 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 EXECUTIVE COMMITTEE (1) RECOMMENDS TO THE BOARD OF DIRECTORS COMPENSATION PLANS AND PAY LEVELS FOR THE PRESIDENT AND CHIEF EXECUTIVE OFFICER, 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 CURRENT EXECUTIVES AND 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 PEOPLE AND CULTURE 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. TO ENSURE COMPLIANCE WITH THE IRS INTERMEDIATE SANCTIONS AS REQUIRED AND MEET THE CONDITIONS FOR THE REBUTTABLE PRESUMPTION UNDER TREASURY REGULATION 53.4958-6, THE COMMITTEE THAT DETERMINES COMPENSATION OF EXECUTIVES ARE COMPOSED OF MEMBERS WHO ARE INDEPENDENT WITH RESPECT TO THE COMPENSATION ARRANGEMENTS. THE FOREGOING PROCESS FOR ESTABLISHING COMPENSATION FOR THE INDICATED PERSONS WAS LAST UNDERTAKEN IN JULY 2023. |
| FORM 990, PART VI, SECTION C, LINE 19 |
PUBLIC AVAILABILITY OF FINANCIAL STATEMENTS AND GOVERNING DOCUMENTS 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. |
| FORM 990, PART XI, LINE 9: |
UNREALIZED GAIN INTEREST RATE SWAP 1,113,666. PENSION RELATED CHANGES -1,822,822. CHANGE IN VALUE OF SPLIT INTEREST AGREEMENT -179,105. ROUNDING -727. |
Attach to Form 990 or 990-EZ.