Consumer Reports facts for kids
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| Founded | January 1936 (as Consumers Union) |
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| Founders |
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| Type | Nonprofit organization |
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Key people
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Marta Tellado (president) |
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Revenue
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$241.7 million (2017) |
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Employees (2019)
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592 |
Consumer Reports (CR) is a special group in America. It used to be called Consumers Union. This group is a nonprofit organization. This means it doesn't try to make money for owners. Instead, it works for you, the consumer!
CR helps people by testing products and services. They do their own research and share what they find. They also teach people about their rights. Plus, they speak up for consumers to help make things better.
Consumer Reports started in 1936. Its main goal was to give people honest information. This info helped people know if products were safe and worked well. Since then, CR has kept testing products. They also try to help make laws that protect consumers. For example, they helped with seat belt laws. They also showed how dangerous cigarettes were. More recently, they helped make sure people get fair financial services. They also worked to improve access to good health care.
CR's main office is in Yonkers, New York. It has 50 labs there where they test things. Their special track for testing cars is in East Haddam, Connecticut. Consumer Reports gets its money from people who subscribe to its magazine and website. They also get money from gifts and donations. Marta L. Tellado is the current CEO of Consumer Reports. She joined in 2014 to help the group reach more people.
The Consumer Reports website and magazine share reviews. They compare products and services. These reviews are based on tests done in their own labs. They also use surveys to get information. CR does not accept ads. They pay for all the products they test. Since they are a nonprofit, they don't have shareholders. They also publish guides to help you buy products and services.
Contents
How Consumer Reports Helps People
Consumer Reports has many online supporters. These supporters help by writing to people who make rules. They also take action on important issues. The group is growing, with millions of members. These members get special online tools. For example, they can track car recalls. They also get personalized content. Many other people join for free. They get advice on products like gas grills and washing machines.
CR has also made websites to help people. One site, HearUsNow.org, helps with phone and internet rules. In 2005, they launched GreenerChoices.org. This website helps people find products that are good for the environment. It also shares tips for being more eco-friendly.
Consumer Reports also supported the Safe Patient Project. This project helped people find the best health care. It pushed for hospitals to share how many patients get infections. It also wanted them to share information about medical mistakes. The US Centers for Disease Control says about 2 million patients get an infection in the hospital each year. This leads to many deaths and high costs.
The Safe Patient Project worked in every state. It asked for laws that make hospitals share infection rates. This project also works on medical devices and prescription drugs. It also helps make sure doctors are held responsible.
GreenerChoices.org gives reliable information. It helps you buy "greener" products. These products have less impact on the environment. The site has articles about many different products. It rates them on how "green" they are. It also talks about recycling electronics and appliances. It shares tips on saving energy and preventing global warming.
Consumer Reports has spoken out on important topics recently. They supported consumer choice and fair competition. This was during the debate about the Sprint T-Mobile merger. They also wanted to keep rules that ensure fair internet access for everyone. They showed how data can be used to unfairly price things for people. They also pushed for stronger privacy laws after the Cambridge Analytica issue.
Staying Independent
Consumer Reports is known for being very independent. They say they want to "maintain our independence and impartiality." This means CR only cares about what's best for consumers. They have strict rules to stay fair. For example, they once stopped a car dealer from buying many subscriptions. They did this to avoid looking like they were favoring anyone.
Consumer Reports does not allow ads in its magazine. But its website does have ads from retailers. Consumer Reports says that PriceGrabber places these ads. PriceGrabber pays CR a small fee when people click on them. CR says it has no direct link with the retailers. CR also reviews its business partners. It has even recommended them sometimes. CR has had similar deals with other companies like Amazon.com and Yahoo!. CR also accepts money from other groups.
Consumer Reports says its secret shoppers buy all products they test. They buy them at regular store prices. They do this secretly. CR does not accept free samples. This helps them avoid being biased. It also stops companies from giving them special, better samples. For most of its history, CR avoided talking to government or industry experts. This was to keep their opinions independent. But in 2007, they started getting advice from experts. This was to help design tests better. But they still make their own final decisions. Sometimes, CR lets companies review their criticisms before they are published. CR also gets small fees from websites like Amazon. This happens when they link to places where customers can buy reviewed products.
Some tests by Consumer Reports are part of a larger group. This group is called International Consumer Research & Testing. CR also uses other labs for testing. In 2006, about 11% of their tests were done this way.
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Testing how long electric lights last and how bright they are.
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A lab where televisions are tested.
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Testing headphones in a special quiet room called an anechoic chamber.
History of Consumer Reports
How It Started
In 1927, F.J. Schlink and Stuart Chase wrote a popular book. It was called Your Money's Worth. Many people read it because they wanted to know more about products. This led Schlink to start a company called Consumers' Research in 1927. This company published a bulletin with product info. By 1933, it had over 42,000 subscribers.
In 1936, some employees at Consumers' Research went on strike. They said they were not paid fairly. Schlink fired them. These former employees then joined with journalists, engineers, and scientists. Together, they started Consumers Union in February 1936. This group is now known as Consumer Reports.
Consumers Union wanted to be different. They wanted to build a community with their readers. They worked with women's clubs and other groups. Their goal was to help people make smarter choices. By 1940, Consumers Union had more subscribers than Consumers' Research. They had 71,000 readers.
Facing Challenges
Many businesses tried to stop Consumers Union. For example, The New York Herald Tribune started an institute. It tried to show that consumer groups were not needed. They said businesses already tested products well. This institute tried to make consumer groups look bad.
The New York Times also caused problems for Consumers Union. It refused to let CU advertise. Other big newspapers did the same.
In 1938, a committee looked into Consumers Union. They accused CU and its CEO, Arthur Kallet, of having Communist ideas. They even called CU a "Communist front." But these claims were not true. They just made the committee look bad. Later, another committee put Consumers Union on a list of "subversive organizations." But they removed it in 1954.
Helping the Consumer Movement
Consumers Union became a strong voice for consumer rights. This happened during the years between World War I and World War II. Many women's groups also became interested in what they bought. The government started to pay attention to consumer rights during the New Deal. This showed that the consumer movement was important.
During World War II, Consumers Union supported the war effort. They told their supporters to buy less. They also asked them to follow government rules about buying things. They also criticized businesses that used the war to advertise too much. After the war, the government became even more interested in what people bought. They encouraged people to buy things. They also put rules in place to protect individual buyers.
Consumer Reports has helped start other consumer groups. In 1960, they helped create Consumers International. This is a global consumer group. In 1974, they helped Consumers' Checkbook. This group is like Consumer Reports but for local services.
Other Changes Over Time
Ralph Nader, a famous consumer advocate, was on the board of directors. But he left in 1975. He wanted Consumer Reports to focus more on rules and speaking up for products. The new leader, Rhoda Karpatkin, wanted to focus on product testing. Karpatkin led the group until the early 2000s.
In 2009, Consumer Reports bought The Consumerist blog. They paid about $600,000 for it.
Before 2012, the group was called Consumers Union. They changed the name to "Consumer Reports." This was because more people knew that name.
In 2017, The Consumerist blog was closed. Its content was moved to the Consumer Reports website.
Products That Changed Because of Consumer Reports Tests
Consumer Reports tests have led to many product improvements. Here are some examples:
- In 1978, Consumer Reports said the Dodge Omni car was "not acceptable." They found it could swing from side to side if the steering was suddenly moved. The company said this wasn't a real problem. But the next year, they added a lighter steering wheel and a special part to the steering. Consumer Reports then said the problem was gone.
- In 2003, CR tested the Nissan Murano SUV. They did not recommend it because of a steering problem. The steering would get very stiff when turning hard. CR recommended the 2005 model. This model had fixed the problem.
- BMW changed the software for its stability control in the X5 SUV. This was after CR found a possible rollover problem during a test.
- In 2010, CR said the 2010 Lexus GX 460 SUV was unsafe. It failed one of their emergency safety tests. Toyota stopped selling the car for a short time. They did their own test and agreed there was a problem. They recalled the car. Later, it passed CR's re-test.
- In 2016, CR found very different battery life in Apple's 2016 MacBook Pro. This led to finding a bug in the Safari web browser. Apple quickly fixed it with a software update.
- In 2018, CR could not recommend the Tesla Model 3. This was because the car took too long to stop. Within days, Tesla sent a software update to the cars. CR retested the brakes. Then, they gave the Model 3 a "recommended" rating.
Other Issues and Corrections
Sometimes, Consumer Reports has made mistakes or had issues.
- In 1998, they tested pet food. They said Iams dog food didn't have enough nutrients. Later, they said this was wrong. They found a mistake in how they measured minerals like potassium and calcium.
- In 2006, Consumer Reports said six hybrid vehicles would not save owners money. Later, they found they had miscalculated how much value cars lose over time. They updated their report. They then said four of the seven vehicles would save buyers money if kept for five years. This was also if they got a special federal tax credit.
How Consumer Reports Shows Ratings
Consumer Reports used to use special circles called Harvey balls for ratings. These circles showed how good or bad something was. The red circle meant the best rating. A half red and white circle was the second best. A white circle was neutral. A half black circle was the second-lowest rating. And a completely black circle was the lowest rating.
In 2016, Consumer Reports changed its rating system. The Harvey balls were replaced with new colored circles. Green means excellent. Lime green means very good. Yellow means good. Orange means fair. And red means poor. This new system helps make the ratings clearer. It uses colors that everyone understands.
See also
In Spanish: Consumer Reports para niños
- Euroconsumers and ICRT International Consumer Research and Testing
- Good Housekeeping Institute
- Stiftung Warentest
- Underwriters Laboratories
- Which?
- Consumer protection
- Consumer education
- Consumers International
- Australian Consumers' Association
- Consumers' Institute of New Zealand
- UFC Que Choisir, France's most important consumers' group.
