Editorials from Oregon newspapers
Democrat-Herald, May 22, on the Sketchers settlement:
In the name of consumer protection, Oregon took part in the latest shakedown of a company for millions of dollars.
Last Wednesday the state Justice Department announced a "$45 million global resolution of allegations that Skechers made unsubstantiated health claims about certain brands of athletic shoes."
The Federal Trade Commission and the attorneys general of 44 states including Oregon had alleged that Skechers USA Inc. made unsubstantiated claims about "rocker bottom shoes," namely that they would help consumers lose weight, burn calories and tone their leg muscles, among other things.
The states and the government complained that in 2008, the company ran an ad campaign using various celebrities and making those claims.
The average consumer knows, of course, that most advertising claims are to be taken with a grain of salt. If that were not so, bathtubs and showers would practically clean themselves, baldness could be easily and painlessly fixed, and the right kind of fitness equipment would make people strong and good-looking with hardly any effort at all.
In the case of shoes, everybody knows that just wearing them does nothing. You have to do a lot of walking or running if you want to tone anything. Standing around won't do it, no matter what kinds of shoes you wear or what the ads may imply.
The settlement with Oregon, the other states and the FTC is costing the company $40 million, supposedly to be returned to shoe buyers filing a claim through the Federal Trade Commission, plus $5 million to the states, plus another $5 million in class-action attorney fees, according to the Associated Press.
The company had denied the allegations. It paid up anyway. The AP quoted a company officer: "Skechers could not ignore the exorbitant cost and endless distraction of several years spent defending multiple lawsuits in multiple courts across the country."
That is what actions of this sort count on, which makes them come fairly close to extortion. Oregon will receive $89,752 for its role in this unseemly scheme. The attorney general's office announced it with pride, but it's hard to see why.
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The Bulletin, May 22, on private investment in infrastructure:
Oregon's roads, bridges and other infrastructure may need billions in upgrades over the next 20 years.
Who is going to pay?
The state can't count on a never-ending river of stimulus from the federal government.
The state shouldn't count on its own tax revenue, either.
Meanwhile, at OSU, Norris says the goal for this year is to shatter last year's mark and hit 10 tons.
There's also doubt that what has worked for the last 50 years — state and municipal bonds — will be able to raise enough to fill the size of the need. There are concerns about debt levels and the magnitude of the investment needed.
A solution from State Treasurer Ted Wheeler is to have the state play matchmaker between projects and private capital investment.
Private investors could be enticed. Investing in infrastructure does not traditionally earn eye-popping returns, but it tends to generate a stable return. It also adds diversity to an investor's portfolio, better immunized against poor market performance than more conventional investments.
Wheeler told us that investors may not be interested in investigating smaller infrastructure projects — such as a $7 million one being considered in Independence. So Oregon is looking for ways to bundle several smaller projects together.
The Treasurer's Office got a grant shared with California and Washington to investigate the possibilities. It's hired a consulting firm. There may be a proposal for the Legislature to consider during next year's session.
There are still many unanswered questions. What kind of help would small municipalities need to participate? What's the best way to bundle projects and present investors with information they need to make a decision?
Then, of course, there are questions about risk. If a project collapses, who gets stuck with the bill?
The idea of an infrastructure matchmaker is like catnip to a desperate tiger. While it's full of potential, it's far too early to say if it is going to work.
There's also no free lunch and no free road. Taxpayers will still be paying.
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Corvallis Gazette-Times, May 22 on discarded furniture and household items:
It's getting to be that time: A lonely mattress or two left out in the rain soon will blossom into a forest of other furniture - and other household items - left abandoned by students and other folks who must move away from Corvallis at the end of the academic year.
It doesn't have to be that way. Many of the items that we often find waiting for someone - anyone - to cart them away or, perhaps, simply set ablaze could well find second lives in households that could use, say, a mattress in reasonable shape or a couch.
At Oregon State University, campus recyclers have done amazing work convincing dormitory residents to recycle goods that otherwise would have gone to the trash: Last year, reports the university's Andrea Norris, workers were able to divert 18,000 pounds of material - that's nine tons - from the landfill.
OSU's efforts are, of course, limited to its residence halls, but Norris still has some tips for residents who might otherwise be tempted to haul out to the curb, under cover of darkness, items that could be reused.
Some organizations in the mid-valley (Furniture Share and The Arc of Benton County are two excellent examples) might be able to accept items that are still in reasonably good shape. Even better, they have the resources to help haul away larger items, a frequent roadblock for students. You can find more information about those organizations on their websites: http://www.furnitureshare.org and http://www.arcbenton.org.
An essential guide for reuse of items is the ReUse Directory sponsored by the Corvallis Sustainability Coalition and compiled by volunteers who do plenty of legwork to find out which organizations and businesses will accept what sorts of items. Just point your browser to this website: corvallis.org/action-teams/waste-prevention/corvallis-area-reuse-directory/">http://sustainablecorvallis.org/action-teams/waste-prevention/corvallis-area-reuse-directory/
Meanwhile, at OSU, Norris says the goal for this year is to shatter last year's mark and hit 10 tons. The recovered goods are donated to an array of organizations that this year includes the Cat's Meow Thrift Shop and the OSU Folk Club Thrift Shop. Nonperishable food items and sealed toiletries are donated to Linn Benton Food Share. Some of the recycled material is sold at OSU's surplus store, and money raised goes to offset some of the expenses of the recycling program.
It all makes sense. And it makes a lot more sense to find a new home for a gently used sofa than to leave it sitting in the rain on the front lawn. A little bit of planning and a couple of phone calls over the next month could easily make a lot of difference - for Corvallis neighborhoods and for our residents in need.