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Consumer Reports, Inc.
Consumer Reports logo 2016.svg
Founded January 1936; 89 years ago (1936-01) (as Consumers Union)
Founders
  • Arthur Kallet
  • Colston Warne
Type Nonprofit organization
Location
Key people
Marta Tellado (president)
Revenue
$241.7 million (2017)
Employees (2019)
592

Consumer Reports (CR) is a special organization in the United States. It used to be called Consumers Union. CR is a nonprofit group, which means it doesn't try to make money for owners. Instead, it works to help people.

Consumer Reports does many things to help you. It tests products to see how well they work and how safe they are. It also does investigative journalism, which means it looks deeply into important topics. CR also teaches people about products and speaks up for consumers.

This organization started in 1936. Its main goal was to give people honest information about products. This information helped people decide what to buy. Since then, CR has kept testing products and services. It also works to change laws to protect consumers. For example, CR helped make seat belt laws. It also showed the dangers of cigarettes. More recently, it has worked to protect your money and help you get good health care. Consumer Reports now also uses digital tools to reach more people.

The main office of Consumer Reports is in Yonkers, New York. This is where its 50 testing labs are located. It also has a special track in East Haddam, Connecticut, for testing cars. CR gets its money from people who subscribe to its magazine and website. It also gets money from grants and donations. Marta L. Tellado is the current CEO of Consumer Reports. She started working there in 2014.

Consumer Reports has a website and a magazine. They share reviews and comparisons of products and services. These reviews are based on tests done in their own labs. They also use information from surveys. CR does not accept ads from companies. It buys all the products it tests. This helps them stay fair and unbiased.

Helping Consumers and Campaigns

Consumer Reports has many online supporters. These supporters help by writing to lawmakers about important issues. CR has 6 million paid members. These members can use online tools, like a car recall tracker. They also get special content. Many other people join for free. They get advice on products like gas grills or washing machines.

CR has also created websites to help people. For example, HearUsNow.org helps with phone and internet rules. In 2005, CR launched GreenerChoices.org. This website helps people learn about products that are good for the environment. It helps them make "greener" choices.

Helping Patients and the Environment

Consumer Reports supported the Safe Patient Project. This project wanted to help people find the best health care. It pushed for hospitals to share information. This included how many patients get infections in the hospital. The US Centers for Disease Control says about 1 in 20 patients get an infection in the hospital. This can lead to many deaths and high costs.

The Safe Patient Project worked in every state. It asked for laws that make hospitals share infection rates. The project also works on medical devices, medicines, and doctor accountability.

GreenerChoices.org gives reliable information on buying "greener" products. These products have less impact on the environment. The site has articles about many products. It rates them on how "green" they are. It also talks about recycling electronics and saving energy.

Consumer Reports has spoken out on important issues recently. It supported consumer choice in the Sprint T-Mobile merger debate. It also wanted to keep net neutrality rules. CR has also shown how data can be used unfairly. It also supports stronger privacy laws.

Staying Independent

Consumer Reports is known for being very independent. This means they want to be fair and unbiased. They say their only goal is to help consumers. CR has strict rules to stay independent. For example, they once stopped a car dealership's subscription. This was because it looked like the dealership was trying to influence them.

In 2021, Consumer Reports received a grant from an environmental group. This grant helped them study gas stoves and air quality. They published an article about it in October 2022. The article mentioned that the grant helped fund the research. Other groups like the Hewlett Foundation and the Ford Foundation have also given money to CR.

How CR Stays Fair

Consumer Reports magazine does not have outside advertisements. However, its website does show ads from retailers. CR says that PriceGrabber places these ads. CR gets a small fee if someone buys something after clicking an ad. CR says it has no direct link with the stores.

Consumer Reports uses "secret shoppers." These people buy all the products CR tests. They buy them at regular prices, just like anyone else. They do this anonymously. CR does not accept free samples from companies. This helps them avoid favoritism. It also prevents companies from giving them special, better samples.

For most of its history, CR did not talk much with government or industry experts. This was to keep their opinions independent. But after some errors in car seat testing in 2007, they started asking experts for advice. This advice helps them design better tests. However, experts do not help with the final ratings. Sometimes, CR also lets companies review their criticisms before they are published. CR also gets small fees from websites like Amazon. This happens when they include links to buy products they have reviewed.

Some of CR's tests are done with an international group called International Consumer Research & Testing. CR also uses other labs for testing. In 2006, about 11% of their tests were done by outside labs.

History of Consumer Reports

3612-FirstConsumerReportsAd-NewMassesv19n08-pg24
An advertisement for the first issue of Consumer Reports from 1936.

How It Started

In 1927, two people named 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 information. 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. They started a new company called Consumers Union in February 1936. This is the group we now know as Consumer Reports.

Consumers Union was different because it built a community with its readers. It worked with women's clubs and citizen groups. By 1940, Consumers Union had more subscribers than Consumers' Research. It had 71,000 readers.

Facing Challenges

Many businesses tried to stop Consumers Union. For example, The New York Herald Tribune started an institute. It wanted to show that consumer groups were not needed. It said businesses already tested products well. This institute tried to make consumer groups look unimportant. The New York Times also refused to let Consumers Union advertise. Other big publications did the same.

In 1938, Consumers Union was investigated by a committee. This committee looked into "unpatriotic propaganda." A former member of Consumers' Research accused CU of having Communist ideas. He even called CU a "Communist front." But this accusation was not true. It actually made Consumers' Research and the congressman look bad. Later, another committee also listed Consumers Union as a "subversive organization." But they removed it from the list in 1954.

Role in 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 consumer issues. The government started to support consumer rights during the New Deal programs. These programs aimed to help consumers buy more.

During World War II, Consumers Union supported the war effort. They told their supporters to buy less. They also followed government rules about what to buy. They also criticized businesses that used the war to advertise too much. After the war, the government continued to encourage people to buy things. They also put in place protections to help individual consumers.

Consumer Reports has helped start other consumer groups. In 1960, it helped create Consumers International, a global consumer group. In 1974, it helped financially support 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 policy and advocacy. But the new Executive Director, Rhoda Karpatkin, wanted to focus on product testing. Karpatkin became executive director in 1974. She retired as president in the early 2000s.

In 2009, Consumer Reports bought The Consumerist blog. This blog was about consumer issues. In 2017, The Consumerist closed. Its content was moved to the Consumer Reports website.

Before 2012, the organization was known as Consumers Union. They changed the name to "Consumer Reports." This was because more people knew the name "Consumer Reports."

Product Changes After Consumer Reports Tests

Consumer Reports - product testing - auto test track in East Haddam, Connecticut
The Consumer Reports auto test track in East Haddam, Connecticut.

Consumer Reports' tests have led to real changes in products.

  • In 1978, Consumer Reports said the Dodge Omni car was "not acceptable." This was because it could become unstable when steering suddenly. The next year, the car was changed. It had a lighter steering wheel and a special part to make it more stable. CR then reported the problem was gone.
  • In 2003, CR tested the Nissan Murano SUV. They did not recommend it because of a problem with its power steering. The steering would get very stiff when turning hard. Nissan fixed this problem. CR recommended the 2005 model.
  • BMW changed the software for its stability control in the X5 SUV. This happened after CR found a possible rollover problem during a test.
  • In 2010, CR rated the 2010 Lexus GX 460 SUV unsafe. It failed one of their emergency safety tests. Toyota stopped selling the car for a short time. They found the problem and recalled the vehicle. After the fix, it passed CR's re-test.
  • In 2016, CR found that Apple's 2016 MacBook Pro had very different battery lives. This led to Apple finding and fixing a bug in its Safari web browser.
  • In May 2018, CR could not recommend the Tesla Model 3. This was because of concerns about its long stopping distance. Within days, Tesla sent a software update to the cars. CR retested the brakes. They then gave the Model 3 a "recommended" rating.

Other Issues or Corrections

Sometimes, Consumer Reports has made mistakes or had issues.

  • In 1998, they tested pet food. They said Iams dog food was missing important nutrients. Later, they said this was wrong. They had made a mistake in measuring 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 the cars would lose value. They updated their report. They said four of the six vehicles would save buyers money over five years. This was true if the buyers got a federal tax credit for hybrid cars.

How Consumer Reports Shows Ratings

Harveyballs red black modification
Harvey balls – red/black modification used by Consumer Reports

Consumer Reports used to use special circles called Harvey balls to show ratings. These circles went from best to worst. A 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. A black circle was the lowest rating.

In September 2016, Consumer Reports changed its rating system. They replaced the Harvey balls with new color-coded circles.

  • Green means excellent.
  • Lime green means very good.
  • Yellow means good.
  • Orange means fair.
  • Red means poor.

This new system helps make the ratings clearer and easier to understand.

See also

Kids robot.svg In Spanish: Consumer Reports para niños

  • Consumer protection
  • Consumer education
  • Australian Consumers' Association
  • Consumers' Institute of New Zealand
  • Consumers International
  • Consumers' Research
  • Euroconsumers and ICRT International Consumer Research and Testing
  • Good Housekeeping Institute
  • Stiftung Warentest
  • UFC Que Choisir, France's most important consumers' group.
  • Underwriters Laboratories
  • Which?
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