Who is Richard Berman?

Richard Berman

Richard Berman is the longtime president of the Washington, D.C.-based lobbying and consulting firm, Berman & Company, Inc. ("BCI") which specializes in strategic research and communications. Throughout the years Berman has been a stalwart supporter of business and industry over consumer, safety and environmental groups. Berman has fought unions, Mothers Against Drunk Driving, PETA and other watchdog groups in their efforts to raise awareness about obesity, the dangers of smoking, mad cow disease, drunk driving, the minimum wage and other causes. He has been described in the press as a "notorious D.C. lobbyist."

Berman founded and runs four tax-exempt front groups and a number of linked projects, focusing on food, tobacco, alcoholic beverages and labor. He is well-paid by the represented industries to serve as the executive director of all four organizations. Berman then uses his own lobbying and public relations firm to do work for the organizations, thereby channeling between 49% and 79% of all donations made to the groups into his own pocket.

These organizations include:

• The Center for Consumer Freedom ("CCF", formerly Guest Choice Network, "GCN"), which attacks anyone who criticizes smoking, fast food or alcohol;
• The Employment Policies Institute ("EPI") which opposes increasing the minimum wage and promotes the specious concept that an increased minimum wage would drive the poor and uneducated out of the job market;
• The American Beverage Institute ("ABI") which fights laws designed to curb drunk driving;
• The Center for Union Facts ("CUF") which promotes disparaging information about unions;
• Bowling Proprietors Association of America, which lists the same word-for-word issues as the ABI on their lobbying disclosure forms; and
• First Jobs Institute, which promotes personal finance advice to young people from a pro-business perspective.

Berman was also executive vice president of public affairs for the Pillsbury Restaurant Group and was once director of labor law for the U.S. Chamber of Commerce.

Berman's Career Highlights

Berman was honored by the food service industry as "Motivator of the Year" at the 19th annual Elliot Leadership conference for foodservice executives. When accepting his award, Nation's Restaurant News reported that, "For a moment the usually voluble Berman seemed at a loss for words...But once seated before the audience with Elliot Group founder Alice Elliot, he again was warning the audience about how the industry needs to defend itself against attacks by "self-interest" and consumer groups. "In all of these debates, whether minimum wage or health care, the activists are always making the problem larger than it is," he said. "We need to argue effectively about the nature of the problem. For example, obesity is the only epidemic that you could cure by keeping your mouth shut."

CENTER FOR UNION FACTS / EMPLOYEE FREEDOM ACTION COMMITTEE

Launched in 2006, the Center for Union Facts aims to influence public opinion against labor unions, running provocative paid media campaigns against organized labor and working against legislation making it easier to form unions.

A spin-off of Berman's Center for Union Facts, the Employee Freedom Action Committee (EFAC) emerged in 2008. While the organization has c4 status, its work appears to have been focused on a number of election-related activities. In addition to a national "nonprofit," EFAC established "local" organizations in several states with contested Congressional campaigns. EFAC aggressively targeted candidates who supported the Employee Free Choice Act, spending millions of dollars in several states.

Multi-million dollar campaigns.

• When Berman & Company officially launched the Center in 2006, Berman planned to spend $5 million on an initial launch of print, radio, television, and internet ads to spread the campaign's anti-union messages to national and regional markets.
• In 2008, CUF & EFAC planned to spend $30 million on television, radio and print advertising in states with competitive Senate races, according to a news report. Berman's groups produced TV, radio, and print ads, direct mail, robocalls and tracked candidates with video cameras-to smear candidates who supported the Employee Free Choice Act.

Corporate connections.

Berman has consistently refused to disclose his funders, but CUF has been repeatedly linked to corporate interests.

• State Chamber of Commerce supporting CUF. According to The New York Times, "A.F.L.-C.I.O. officials said the president of a state chamber of commerce told them that at a conference in Florida on Jan. 26, the state chambers had pledged several million dollars to back Mr. Berman's effort."
• Unionbusting Companies. Coinciding with a notorious anti-union campaign by Smithfield Foods, CUF ran a website called "UFCW Exposed," smearing the union organizing at Smithfield. Berman was retained by Smithfield Foods, and CUF pays Berman and Co. for "management services," according to The Hampton Roads Business Journal.

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GUEST CHOICE NETWORK/CENTER FOR CONSUMER FREEDOM

Guest Choice Network founded in 1995 with Philip Morris seed money. GCN was formed in 1995 "to fight bans on smoking in restaurants and bars" and received considerable funding from tobacco companies, including $600,000 in seed money from Philip Morris. "The company said it needed a consultant who was both a "hospitality industry insider as well as a legislatively astute individual," according to documents collected as part of the multi-state lawsuit against tobacco companies. Under the 1998 settlement, the documents were made public. Philip Morris continued to give money to Berman for several years." In fact, according to Philip Morris documents, Berman has received at least $2,950,000 from the company.

• GCN attacked Mothers Against Drunk Driving, calling MADD a group of "professional fund-raisers" who try to "scare us away from even responsible drinking."
• GCN characterized former New York Mayor Rudy Giuliani's proposal to confiscate the vehicles of people convicted for drunk driving as a "car-theft ring."
• GCN criticized the U.S. Centers for Disease Control and Prevention (CDC) for its warnings about salmonella-related food poisoning, stating "For nearly three decades, [CDC] has been whipping up fear over food while remaining virtually unchallenged by the press or the scientific community. By generating more heat than light, [CDC] helps create fear . . . over . . . food products."
• In an editorial appearing on Center for Consumer Freedom's website, Berman referred to a "lack of evidence that second-hand smoke causes cancer."

GCN became CCF in 2001, shifted focus to food & beverage issues. Guest Choice Network changed its name to the Center for Consumer Freedom in 2001 and shifted its focus to "food and beverage issues, raised by concerns about obesity, mad cow disease and genetically modified products."

CCF: "primary propaganda arm" for food & dairy industry. According to the American Prospect, the group is "the primary propaganda arm for the food and dairy industries in the emerging battle over the politics of food."

Berman admits bulk of CCF's funding comes from food & restaurant companies. Berman admits that CCF is "financed by the food and restaurant industries" and that some of those who fund CCF are also clients of his lobbying firm. However, he "has always declined to name the specific companies that support Consumer Freedom. He said in an interview that there were roughly 100 companies, including some that control very large brands, but that identifying them would serve no purpose." Berman said the organization collected about $2.7 million in contributions in 2003.

• Food industry officials seek to keep donations anonymous. The Washington Post reported that, "Food industry officials who spoke only on the condition that they not be identified by name or by where they work said that by keeping the sponsors anonymous, Berman's group can be more vociferous, provocative and irreverent in its criticisms than a trade association. Berman's 'stuff is factual, but everyone chooses the facts they represent,' one executive said."
• Donors include Coca-Cola, Wendy's, Tyson's Foods, Cargill, Outback Steakhouse. According to The New York Times "A watchdog group in Washington, the Center for Media and Democracy, has posted data about Consumer Freedom's financing on its Web site. According to documents they say were obtained from a former Consumer Freedom staff member, corporate contributors to the group as of 2002 included Coca-Cola, Wendy's and Tyson Foods, each of which gave $200,000. Cargill gave $100,000, according to the documents, and Outback Steakhouse gave $164,600."
• Other alleged donors include Brinker Int'l, and RTM Restaurant Group. "PRWatch, a nonprofit critic of the public relations industry, lists what it claims are the Center for Consumer Freedom's sponsors on its Web site. Those companies include Brinker International; RTM Restaurant Group, the owner of Arby's; Tyson Foods Inc.; HMSHost Corp.; and Wendy's International Inc."
• Tyson's, Pilgrim's Pride & Cargill each give CCF $100K annually. According to the Arkansas Democrat-Gazette, "Tyson Foods Inc., Pilgrim's Pride Corp. and Cargill Inc. have been among the major financial backers of Washington lobbyist Richard Berman and his Center for Consumer Freedom." All three corporations "each give at least $100,000 a year to fund Berman and his nonprofit center, according to documents obtained by PR Watch, a Wisconsin group that monitors corporate public relations."

CCF is Berman's "brainchild" -- BCI received $1.1M from CCF in 2003. According to The Washington Post, CCF and its ad campaigns "are the brainchild of Richard Berman, a Washington lobbyist and lawyer who is the center's executive director. Berman is also president of Berman & Co., a public affairs firm that in 2003 received more than $1.1 million in compensation from the nonprofit group -- more than a third of its revenue that year, According to its most recent tax returns."

CREW charged Berman and BCI received $7M from CCF since 1997. Watchdog group Citizens for Responsibility and Ethics in Washington (CREW) charged that Berman and his firm have received more than $7 million since 1997 from CCF and EPI. Based on that, in 2004, the group asked the IRS to revoke CCF's tax-exempt 501(c)(3) status, arguing that Berman used the center "to funnel money to himself and his company, a violation of federal tax law that bars companies or individuals from running a nonprofit for their private benefit."

• CCF hired BCI in a no-bid contract. CREW charged that CCF had hired Berman and Company "on a no-bid contract, without finding out whether another firm might charge less or whether the work could be done with in-house employees." According to Frances Hill, a Miami University law professor who specializes in nonprofit groups, "This kind of arrangement should certainly trigger scrutiny" from the IRS.
• CREW challenged CCF's tax-exempt status. In November 2004, CREW filed a complaint with the Internal Revenue Service alleging that CCF had violated its tax-exempt 501(c)(3) status in three ways: "By engaging in prohibited electioneering against presidential candidate Dennis Kucinich; by making substantial payments to the founder of the organization Richard Berman and to Berman's wholly owned for profit entity Berman & Co.; and by engaging in activities with no charitable purpose."

CCF's Actions:

CCF wages PR war against "nannies." According to the Arkansas Democrat-Gazette, CCF "wages public-relations warfare against animal welfare organizations and other groups that it contends act as self-appointed 'nannies' to the American public."

CCF sponsored website attacks against MADD. CCF sponsors a website, ActivistCash.com, that features in-depth profiles of other non-profits and groups, including Mothers Against Drunk Driving, that included information on their funding and key players. "Despite their innocent-sounding names, many of these organizations are financial Goliaths that use junk science, intimidation tactics, and even threats of violence to push their radical agenda," the site says. Berman has alleged that some groups have "a violent side to them" and vowed to attempt to shut down firms whose activities run counter to CCF's goals.

CCF launched 2005 ad campaign challenging "myth" of obesity crisis. CCF purchased ad space in Washington DC's Metro rail during the summer of 2005 and ran ads charging that the obesity epidemic in the United States is a myth propagated by the "food police."

2004 CCF ad campaign was critical of nutritionists. In 2004, CCF "ran television ads that featured the Soup Nazi of 'Seinfeld' fame ordering overweight people to eat salad -- a clear jab at what the group considers pushy nutritionists who are trying to suck the joy out of eating."

CCF attacked researcher's study on childhood obesity. CCF "trashed a seminal 2001 Harvard study co-authored by Dr. David Ludwig, director of the obesity program at Children's Hospital Boston, as 'dubious science.'" The study found that every additional can of soda kids drink daily increases their risk of becoming obese by 60 percent. Ludwig asserted that his own research techniques were "commonly used," and that his "methodology has been validated, and can provide important and useful information if used accurately." He also said that Berman and his staff never contacted him to clarify his research before widely attacking it.

• "Highly selective quoting"- Dr. Ludwig, director of the obesity program at Children's Hospital Boston asserted that Berman and the Center for Consumer Freedom engaged in "highly selective quoting" of his research.
• "Missed main point"- Dr. Ludwig also suggested that Berman's extrapolations from his research "missed the main point." Berman criticized Ludwig's study, which found that every additional can of soda kids drink daily increases their risk of becoming obese by 60 percent.
• "Nobody in academia takes their arguments seriously."- Dr. Ludwig also argued that CCF makes "a lot of noise, but nobody in academia takes their arguments seriously. They stand for food industry freedom, not Consumer Freedom."

CCF Maintains Fishscam.com website. Fishscam.com aims to dismiss concerns about mercury in fish. In a news report covering FishScam.com's efforts to dissuade consumers from fearing mercury poisoning from fish consumption, Berman's tactics were described as "hyperbolic, aggressive attacks. He once told a reporter his strategy is to "shoot the messenger".

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EMPLOYMENT POLICIES INSTITUTE

EPI supports argument against employee-provided healthcare. "'Demanding employers provide healthcare will not effectively increase healthcare coverage in today's economy,' said Richard Berman, executive director of the Employment Policies Institute, as reported in Medical News Today in 2006. 'Instead of mandates on businesses, lawmakers need to look toward consumer-driven solutions that won't result in job loss or reduced income for the nation's low-skilled employees.' Berman is believed to currently double as director of the Center for Union Facts."

EPI funded by industry. EPI is described by Nation's Restaurant News as a "research organization funded by restaurants, retailers and manufacturers."

EPI studies suggest that employer provided healthcare results in loss of jobs. On February 1, 2006, EPI put out a press release stating that "Three studies released by the Employment Policies Institute reveal mandates requiring businesses to provide healthcare coverage are ineffective and ultimately result in job loss for the nation's low-skilled employees."

EPI lobbied against the 1996 minimum wage increase. According to The Christian Science Monitor, "when Congress was busy passing a hike in the federal minimum wage in 1996, an opponent, Richard Berman, wrote to two congressmen, claiming the legislation would threaten the jobs of 'more than 621,000 employees' across the United States. Nothing of that magnitude happened."

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AMERICAN BEVERAGE INSTITUTE

Berman is executive director of the American Beverage Institute (ABI), a trade association representing bars, restaurants, alcohol distributors and manufacturers. The group reportedly works against Mothers Against Drunk Driving (MADD).

ABI opposes drunk driving laws. According to at least one report, ABI is a group that principally "opposes drunk driving laws."

ABI opposes DUI checkpoints. During the 2005 Holiday Season, John Doyle, the group's current executive director, wrote: "Sadly, the holidays are always accompanied by an increase in alcohol-related fatalities. The American Beverage Institute believes this is due, in part, to misdirected drunk-driving policies which often fail to target the high BAC (blood alcohol content) drivers who cause the vast majority of drunk-driving accidents."

• American Beverage Institute has said that alcohol-related traffic deaths dropped in the 11 states that don't allow checkpoints while they increased in Ohio.

ABI opposes ignition interlock systems for cars. In December 2005, it was reported that ignition interlock systems (a sophisticated system that tests for alcohol on a driver's breath) came under some scrutiny the U.S. in the wake of a report issued by California Department of Motor Vehicles. ABI contended that the report showed ignition interlock systems were not effective and actually increased the risk of accidents by 130 percent. The Department, however, "strongly refuted this interpretation."

• The California Department of Motor Vehicles wrote "[i]t's true that our study showed that court orders to first offenders to install an ignition interlock device are not effective in reducing recidivism among that group perhaps because many first offenders tend to be in denial, resent the devices and refuse to install them. But ... the devices can have a real effect on repeat offenders who are beginning to come to grips with their alcohol problem and who often find the mechanical devices to be helpful in keeping them out of cars when they've been drinking."

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BOWLING PROPRIETORS ASSOCIATION OF AMERICA

Berman and a colleague lobbied on behalf of Bowling Association that lists same concerns as liquor industry on disclosure forms. Berman and Kristen Eastlick, both of BCI, lobbied on behalf of the Bowling Proprietors Association of America on small business issues and "any provision relating to drunk-driving countermeasures." According to Congressional Quarterly, the Bowling Proprietors Association and the American Beverage Institute list the same lobbying issues, word for word, on their lobbying disclosure forms.

• Eastlick, who lobbies for the Bowling Association and ABI, denied that bowling alleys were fronting for the liquor industry.

Berman helped establish GOP-friendly political action committee (PAC). Berman and Eastlick created a Republican-friendly PAC for the Bowling Proprietors Association, which contributed $93,000 to GOP candidates in the 2003-2004 election cycle.

BCI paid $20K by Bowling Association. For its work, BCI was paid $20,000 from July through December 2004

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FIRST JOBS INSTITUTE

• In his April 25, 2005, column in Nation's Restaurant News, Berman announced that his PR firm was supporting an organization called the First Jobs Institute. According to Berman, the organization's "mission is to increase economic literacy by teaching the 'hows' and 'whys' of a free-market economy. The First Jobs Institute is focusing special attention on helping young people develop a more sophisticated understanding of economics. The First Jobs ECON4U program presents short economics questions and answers in unique venues frequented by youths, such as movie theaters and bowling centers. Restaurant chains are considering using tray liners to deliver the message."
  
  
• Berman listed a number of individuals involved with the organization, including: "Larry Lindsey, economic adviser to former presidents Reagan and Bush, is chairman. Dell Computer founder Michael Dell, Jack Schuessler of Wendy's, former Marine Corps Commandant General RX. Kelley and oil industry executive and major Republican donor Boone Pickens are only a few of the people supporting the FirstJobs Institute."