Rick Berman

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Rick Berman

Richard B. (Rick) Berman is a former labor management attorney and restaurant industry executive who currently works as a lobbyist for the food, alcoholic beverage, and tobacco industries. He is the sole owner of Berman & Co., which sponsors many non-profit front groups that defend his corporate clients' interests by attacking their critics, allowing his paying clients to remain out of public view.

He "receives millions of dollars from business to fight unions and oppose a higher minimum wage," according to the New York Times.

He is the President, Executive Director, and Director of the Center for Organizational Research and Education (CORE, called the Center for Consumer Freedom/CCF until early 2014). CCF's 2012 IRS return states that Berman works 8.9 hours a week for the group, for which he is paid $4,725. In spite of its former name, CORE is more concerned about industry than the consumer.

Berman is also the Executive Director and President of the Employment Policies Institute, the Employment Policies Institute Foundation, the American Beverage Institute, and the Center for Union Facts.

According to a July 31, 2006, profile of Berman in USA Today, his company has 28 employees and takes in $10 million dollars a year, but "only Berman and his bookkeeper wife" know how much of the $10 million ends up in their own pockets.

Rick Berman has earned the nicknames "Dr. Evil," the "Conservatives' Weapon of Mass Destruction" and the "Astroturf Kingpin" for his repeated use of the strategy of forming non-profit front groups that advocate for the interests of big business while shielding those same businesses from disclosing financial support for these efforts.

Rick Berman, Dubbed "Dr. Evil" by 60 Minutes

Although Berman used to fly under the media radar, he has since been the subject of a 2007 60 Minutes piece that dubbed him "Dr. Evil," a public takedown on the Rachel Maddow Show, and years of research documenting his close ties to industries looking for a well paid hired gun to defend the indefensible. He has attacked respected scientists and scholars, food safety experts, and even Mothers Against Drunk Driving (MADD).

Despite this documented dearth of credibility, Berman continues to work through a variety of research-for-hire front groups to remain relevant by creating a façade of academic respectability for extreme policies that many mainstream companies, scientists, and voters have rejected.

Berman has raised millions of dollars from companies, trade associations, and individuals, but refuses to name them. According to the National Journal, the Employment Policies Institute was started "by a group of restaurant companies" that at the time (1995) got "95% of its budget from corporate sources -- primarily restaurateurs and retailers." Several years ago, an unnamed former Berman employee revealed a list of Berman's 2001-2002 corporate funders, including Coca-Cola, Cargill, Monsanto, Tyson Foods, Wendy's, Outback Steakhouse, and Applebee's.

"We always have a knife in our teeth," Berman has said, and his approach is "to shoot the messenger." Restaurant industry spokespeople have praised his "outstanding work as an industry Doberman." 60 Minutes called him "the booze and food industries' weapon of mass destruction."

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Before striking out in 1986 with his own consulting company, Berman worked as a lawyer for Bethlehem Steel and Dana Corporation (1967-72), as labor law director for the U.S. Chamber of Commerce (1972-74), and for the late Norman Brinker's restaurant empire (Steak and Ale and the Pillsbury Restaurant Group, 1975-86). Berman & Company now has about 30 employees and runs the Employment Policies Institute and a number of other industry-backed secretive front groups such as the Center for Consumer Freedom, Center for Union Facts, and American Beverage Institute.

Berman has had a long association with the National Restaurant Association and frequently worked together with its former lobbyist Lee Culpepper in the 1990s.

Berman Heads Phony Think Tank, Employment Policy Institute

Rick Berman created the Employment Policies Institute (EPI) in 1991 to "argue the importance of minimum wage jobs for the poor and uneducated."

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The Employment Policies Institute (EPI) is headed by Richard Berman, according to tax filings. It shares the same office as Berman's PR firm and it funnels money to the PR firm, as the New York Times reported in a front page story in 2014: "the Employment Policies Institute has no employees of its own. Mr. Berman's for-profit advertising firm, instead, 'bills' the nonprofit institute for the services his employees provide to the institute. This arrangement effectively means that the nonprofit is a moneymaking venture for Mr. Berman, whose advertising firm was paid $1.1 million by the institute in 2012, according to its tax returns, or 44 percent of its total budget, with most of the rest of the money used to buy advertisements."

In 2013-2014, EPI has become a primary industry attack dog, fighting minimum wage as dangerous to the economy, fighting living wages and advocating a low road economic development policy.

The Center for Media and Democracy outed EPI as a phony think tank in a Salon article in 2013 and critiqued media coverage of EPI, which consistently failed to note that EPI was run by a PR firm: "We recently analyzed three years of newspaper stories from across the country that quoted from EPI or Michael Saltsman. In 83 percent of the stories we examined, reporters provided readers with no information about EPI's relationship with Berman and Co. In most cases, journalists stated that EPI is a 'Washington DC nonprofit' and called Saltsman a 'research director.' In some instances, reporters took tentative steps in the right direction and called EPI 'conservative' or 'pro-business.' Only about 3 percent of the time did they correctly link EPI to Berman and Co." The Salon article prompted an amusing interview on MSNBC's Chris Hayes show where Hayes demanded to know how many economists EPI had on staff and the qualifications of its "Research Director," who has no training in economics:

In February 2014, EPI ran a full-page ad in the New York Times attacking the over 600 economists who publicly favor raising the minimum wage to $10.10 an hour, who had been referenced by President Barack Obama, Senator Tom Harkin (D-IA), and the New York Times editorial board. The ad said, "Many of the 600 economists you rely on are radical researchers or full-time employees working at union-backed groups. Of those who support a higher minimum wage, 45 percent don't specialize in labor economics." An article published by Businessweek the same day pointed out, "The vast majority of the letter's signers, organized by the labor-backed Economic Policy Institute, are in the mainstream of the profession. They include some of the most prominent living economists, including seven Nobel Prize winners and eight former presidents of the American Economic Association."

Then in March 2014, EPI started running a commercial attacking the minimum wage. The group planned to spend between $500,000 and $1 million on an "educational campaign" on the minimum wage, CNN reported in February 2014.

The Employment Policies Institute (EPI) calls itself a "non-profit research organization dedicated to studying public policy issues surrounding employment growth." In reality, EPI's mission is to oppose any increases in the minimum wage so that restaurants can continue to pay their workers as little as possible, according to CNN.

EPI also owns the internet domain names to MinimumWage.com and LivingWage.com, websites that attempts to portray the idea of a living wage for workers as some kind of insidious conspiracy. "Living wage activists want nothing less than a national living wage," it warns.

Attacks on Raising the Minimum Wage

In February 2014, EPI ran a full-page ad in the New York Times attacking the over 600 economists who publicly favor raising the minimum wage to $10.10 an hour, who had been referenced by President Barack Obama, Sen. Tom Harkin (D-IA), and the New York Times editorial board. The ad said, "Many of the 600 economists you rely on are radical researchers or full-time employees working at union-backed groups. Of those who support a higher minimum wage, 45 percent don't specialize in labor economics." An article published by Businessweek the same day pointed out, "The vast majority of the letter's signers, organized by the labor-backed Economic Policy Institute, are in the mainstream of the profession. They include some of the most prominent living economists, including seven Nobel Prize winners and eight former presidents of the American Economic Association."

For several years, Berman fought efforts by the voter registration/community organizing group ACORN (Association of Community Organizations for Reform Now) to raise the minimum wage at the state and federal levels. To assist with his efforts, Berman created a Web site, www.rottenacorn.com, slamming the group. Contact information on RottenACORN.com directs readers to the Employment Policies Institute, a Berman front group which shares the same address as Berman's lobbying business, Berman & Company.

In the fall of 2008, prior to the general election, a full-page, anti-ACORN ad appeared in the New York Times that accused ACORN of a list of abuses that would make the group appear hypocritical: intimidating and firing its own employees when they try to unionize, misappropriating millions of dollars from taxpayer-funded government grants and advocating minimum wage hikes while paying its own employees less than minimum wage. The ad did not indicate what person or organization had funded it.In an October 29, 2008 article, the investigative journalism group ProPublica revealed that the ad and the Web site "RottenACORN.com" are funded by Rick Berman's Employment Policies Institute, which has among its clients, the American Beverage Institute, a trade group for bars and restaurants.

Advocating for Food Industry

As head of the Center for Consumer Freedom (CCF), a front group for the restaurant, tobacco, and alcohol industries, Berman has specialized in the no-holds-barred intimidation tactics pioneered by Big Tobacco. Berman confirms that organizations like his, by keeping their corporate sponsors anonymous, can engage in edgier PR by providing safe shelter for individual corporations: "There's no doubt about that. Most trade associations try to insulate individual companies and brand names from cutting-edge rhetoric." In 2000, the Center for Media and Democracy found that Berman and Co., Inc. was paid $256,077 by CCF for "management services," although CCF did not report paying any income to any of its employees.

Berman has written a number of strategically placed op-ed articles in leading newspapers on behalf of CCF. On August 26, 2004, for example, the Atlanta Journal-Constitution printed "Soft Drink Hysteria Hard to Swallow," in which Berman trashed a study published that week in the Journal of the American Medical Association that showed a clear connection between soda consumption and diabetes: "Frankly, the contortions that the authors went through to demonize soda would make our own gold medal gymnasts proud."

Attack on Food & Water Watch, Sierra Club, and NRDC

On March 6, 2014, the Berman-run Environmental Policy Alliance ran a full-page ad in the Wall Street Journal attacking Food & Water Watch, the Sierra Club, and the Natural Resources Defense Council (NRDC) as "big green radicals" and announced its new website, BigGreenRadicals.com Food & Water Watch responded with a blog post saying:

"He's been called an 'arch-enemy of do-gooders' by 60 Minutes. Thanks to his orchestration of massive corporate PR campaigns using 'deceptive corporate front groups' to discredit public interest efforts, he's earned the nickname 'Dr. Evil.'

"And now, thanks to our outsized effectiveness in relation to our relatively small budget, he's targeting us.

"We're honored to be called one of the 'Big Green Radicals' by notorious corporate lobbyist Rick Berman through his apparent latest astroturf operation, the Environmental Policy Alliance, a 'project of the Center for Organizational Research Education.' Ever heard of it? We hadn't either. After doing a bit of digging, we found out that the Center for Organizational Research Education was recently known as the Center for Consumer Freedom led by the head of Berman & Co. -- Rick Berman."

Deceptive Berman Campaign for Tanning Industry

Berman's history of industry spin and deceit is a long one. A new report by Citizens for Responsibility and Ethics in Washington (CREW) shows how Berman & Company misled the public regarding the health risks of indoor tanning, leading to an Federal Trade Commission (FTC) crackdown on his clients.

In 2007, the Indoor Tanning Association (ITA) hired Berman and Co. to counteract new research documenting the adverse health effects linked to indoor tanning beds and new legislation restricting tanning bed access. Berman used a long standing front group called Center for Consumer Freedom to run misleading op-eds to distort science behind the cancer-linked tanning beds. In 2010, the FTC announced it would charge the ITA for violating FTC rules against deceptive advertising, and the suit was later settled.

According to the American Academy of Dermatology and the World Health Organization, indoor tanning heightens the risk of developing dangerous skin cancers as much as 59 percent. Now that the FDA has announced stricter rules for tanning beds, especially to protect vulnerable teens, get ready for more Berman spin on the topic.

Opposing the Americans with Disabilities Act

In an October 9, 1989 commentary for Nation's Restaurant News, Berman opposed the passage of the Americans with Disabilities Act ("ADA"). He wrote, "The ADA in its present form will cost our industry untold millions in added construction and labor costs" He begins the article with a reference to the ADA and AIDS. He stated, "Congress ... is seriously considering passage of a new law that would require employers to ignore AIDS infections among cooks and servers [2].

Defending Alar

An article in the December 15, 1999 copy of the Cleveland Plain Dealer describes Berman's support for Uniroyal, the company that produces Alar(tm), slow-ripening chemical (deminozide) used on apples to delay ripening until the markets paid higher prices. Through his Guest Choice Network (currently the Center for Consumer Freedom) Berman published a newsletter that minimized the risks of Alar to children. The newsletter stated, "According to the Environmental Protection Agency, one would have to eat 50,000 pounds of apples a day over a lifetime to contract cancer from Alar." In response, EPA spokeswoman Denise Kearns said, "To my knowledge, EPA never issued that kind of statement." In the end Berman admitted that the source of his information was a statement made by Uniroyal. Alar has since been banned due to cancer risks. In 1989, the EPA decided to ban Alar on the grounds that "long-term exposure" posed "unacceptable risks to public health." However, in June 1989, before the EPA's preliminary decision to ban all food uses of Alar went into effect, Uniroyal agreed to voluntarily halt all domestic sales of Alar for food uses.

Ethics Violations

In the early 1990s, Berman was tied to former Speaker of the House Newt Gingrich through possible ethics violations involving Gingrich's PAC (GOPAC). In 1993, Berman made a $25,000 contribution to Kennesaw State College for Gingrich's class on "Renewing American Civilization" on condition that Gingrich teach ideas supported by Berman's Employment_Policies_Institute_Foundation. House Ethics Committee reports revealed that Berman's contribution was solicited by GOPAC and that Berman had already helped GOPAC in recruiting big donors. In the cover letter to the check, Berman thanked Gingrich for his "help" in enabling Berman to testify at a Congressional hearing on another matter of interest to the industry.

Court Ruling against Berman

In the fall of 2009, the American College of Surgeons filed a legal complaint in Illinois' Northern District alleging that the Berman-formed Employee Freedom Action Committee had violated trademark law and defamed the group when it included the organization's name on a scrolling list headed "Doctors Against the Plan" in an anti-health care reform television advertisement. The court granted a temporary restraining order to the surgeons, finding the group would likely prevail on the merits in a trial. The court order enjoined Berman's front group from placing ads citing the American College of Surgeons on television or the Internet. The ad was run by a group called Committee to Rethink Reform, which is a 501(c)4 not required to disclose its donors -- one of the hallmarks of a Berman-operated group. The ad has been removed from TV and the Internet.

Tobacco Industry Involvement

Rick Berman conceived the idea of the Guest Choice Network, a front group to help advance the goals of Philip Morris' Accommodation Program while appearing to be more of a grass-roots-led effort, in 1995. Berman became head of the Guest Choice Network. Berman cites an Oak Ridge National Laboratory/Roger Jenkins study that downplays the effects of secondhand smoke. Berman is also counsel for the American Beverage Institute, which also fronts for the tobacco industry.

Philip Morris funded Guest Choice Network, also known in PM's files as "Vendor #340875." Evidence of PM funding is a check for $200,000 dated May 29, 1996, to fund "Guest Choice Network and its activities." and a check for $600,000 dated December 15, 1995. A March 28, 1996 PM "privileged and confidential" email from Marty Barrington to Denise F. Keane, both of PM, states,

"You'll remember that PM USA Corp. Affairs contributed $600,000 in '95 to get this Network, organized by Rick Berman, up and running. Berman is now looking for another $300,000, principally for an educational newsletter, and Corp. Affairs wants to contribute. As of this writing, PM USA is still the only contributor, though Berman continues to promise others any day now..."

Philip Morris saw Berman as a "hospitality industry insider as well as a legislatively astute individual" who could help them achieve their goal of preserving smoking in restaurants. Barbara Trach at PM wrote in an October 1995 memo that "Berman's current client list is a virtual who's who in the chain restaurant industry." Berman was introduced to Philip Morris through employees of Miller Beer, who were familiar with him and his work. Berman originated PM's strategy of broadening the focus of the "smoking issue," and "expanding it into the bigger picture of over-regulation."

Pro-Alcohol Industry Activity

Berman formed a group called "Beverage Retailers Against Drunk Driving" (BRADD), a pro-social drinking group, in response to Mothers Against Drunk Driving (MADD).

People to Call Concerning Experiences with Richard Berman

• Naomi Seligman, Citizens for Responsibility and Ethics in Washington www.citizensforethics.org 202.408.5565
• Simon Chaitowitz, Physicians Committee for Responsible Medicine: 202-686-2210, ext. 309
• Lisa Graves, Center for Media and Democracy: 608-260-9713
• Theresa Hart, Mothers Against Drunk Driving (MADD): 800-438-6233
• Jeff Nelson, VegSource Interactive, Inc: 818-349-5600 and see: http://www.vegsource.com/articles2/berman_cspi.htm and http://www.vegsource.com/articles/berman_release.htm
• Michael Jacobson, Center for Science in the Public Interest (202) 332-9110

Work History

• 1967-1969: Labor Law attorney, Bethlehem Steel
• 1969-1972: Corporate law attorney, Dana Corp. (automotive parts)
• 1972-1974: Labor law director, U.S. Chamber of Commerce
• 1975-1984: Senior Vice President, Steak and Ale (restaurant chain)
• 1984-1986: Executive Vice President, Pillsbury Restaurant Group
• 1986-present: President, Berman & Co. (lobbying group)

Contact

Berman & Company
1090 Vermont Avenue, NW
Suite 800
Washington, DC 20005

Telephone: 202.463.7100
Fax: 202.463.7107
Email: info@bermanco.com
Web: http://bermanco.com/

Articles & Resources

Related SourceWatch Articles

• ActivistCash.com
• American Beverage Institute
• A Visit to the ActivistCash.Com Web Site
• Berman & Co.
• Center for Consumer Freedom
• Center for Economic and Entrepreneurial Literacy
• Employment Policies Institute
• Employment Roundtable
• Environmental Policy Alliance
• FishScam.com
• The Center for Union Facts
• Richard Berman cares about animals: clients exposed
• Front Group King Rick Berman Gets Blasted by his Son David Berman

External Articles

• Richard Berman, "Disability Act Threatens to Cripple Hospitality Industry," Nation's Restaurant News, October 9, 1989, p. F4.
• Richard Berman, "Animal Groups Callous, Not Cute," USA Today, April 15, 2003.
• Greg Sargent, "Berman's Battle," The American Prospect, January 3, 2004.
• John N. Frank, "ABL ups efforts slamming GM for its support of MADD", PR Week, February 28, 2005. (Sub req'd).
• Nancy Goldstein, "Biting the Hand that Spins You," PageOne, March 17, 2005.
• Caroline E. Mayer and Amy Joyce, "Nonprofit's Tactics, Funding Sources Spark Controversy", Washington Post, April 27, 2005.
• Melanie Warner, "Striking Back at the Food Police", New York Times, June 12, 2005.
• Seth Lubove, "Food Fight," Forbes, September 23, 2005.
• Aina Hunter, "Mercury in Fish? Baloney!: Lobbyist tells pregnant women to eat more tuna", Village Voice, January 17th, 2006.
• Harold Meyerson, "Our Pious Babylon", Washington Post, April 6, 2006; A29.
• Mark Matthews, Lobbyists Hide Behind Non-Profit Fronts, KGO TV, San Francisco, CA, May 3, 2006.
• Jayne O'Donnell, "Got a nasty fight? Here's your man", USA Today, July 31, 2006.
• Meet Rick Berman, A.K.A. "Dr. Evil", CBSnew.com, April 5, 2007
• Sam Stein, "Bailout Recipients Hosted Call To Defeat Key Labor Bill", Huffington Post, January 27, 2009.
• Stephanie Strom Nonprofit Advocate Carves Out a For-Profit Niche, New York Times, June 2010
• Ron Moore The Humane Society and MADD file ethics charges against corporate front group lobbyist Rick Berman, The Examiner, May 2010

External Resources

• BermanExposed.org, Citizens for Responsibility and Ethics in Washington, accessed January 2011

References

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