Consumerist: The Rise and Fall of the Digital Consumer Watchdog
In the early 2000s, the internet became a powerful tool for consumers to voice their frustrations and hold massive corporations accountable. One of the most prominent pioneers in this space was Consumerist (also known as The Consumerist), a non-profit consumer affairs website that blended investigative reporting with a sharp, satirical edge. For over a decade, it served as a digital hub for U.S. consumers to navigate the complexities of corporate bureaucracy and product quality.
Launched in 2005, Consumerist evolved from a snarky blog under the Gawker Media umbrella into a professional arm of Consumer Reports. By leveraging crowdsourced journalism—a method where the public contributes tips, photos, and stories—the site transformed individual complaints into national conversations about corporate ethics and consumer rights.
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Key Facts
- Founded: 2005 by Nick Denton and Joel Johnson.
- Ownership: Originally Gawker Media; acquired by Consumers Union (Consumer Reports) in December 2008.
- Mission: Focused on consumer experiences, corporate issues, and consumer-oriented news.
- Notable Contribution: Coined the term "grocery shrink ray" to describe what is now known as shrinkflation.
- Closure: Shut down on October 30, 2017, with coverage integrated into the main Consumer Reports website.
The Evolution of Consumerist
The Gawker Era (2005–2008)
Consumerist began as a property of Gawker Media, designed to deliver "consumer-oriented news nuggets" with the same irreverent and snarky tone found on other Gawker sites like Wonkette. Under the early leadership of Joel Johnson and later Ben Popken, the site focused heavily on reader complaints and shopping tips. During this period, the site operated as a loss leader, meaning it was not intended to be profitable on its own but instead drove traffic to other revenue-generating Gawker properties.
The Consumer Reports Era (2008–2017)
In December 2008, Consumers Union, the parent organization of Consumer Reports, purchased the site. This transition shifted the site's status to a non-profit consumer news outlet. To avoid conflicts of interest, Consumerist stopped running display ads for outside advertisers. While the tone remained engaging, the site's resources grew, employing a full team of reporters and editors including Meg Marco and Ben Popken.
Throughout its tenure under Consumer Reports, the site maintained steady traffic, averaging approximately 10 million pageviews per month as late as 2014.
Signature Features and Cultural Impact
Consumerist was well-known for its recurring segments that turned consumer advocacy into a community event:
- Worst Company In America: An annual single-elimination tournament, similar to March Madness, where readers voted to determine the worst corporation. The winner received a "Golden Poo" trophy.
- Friday Flickr Finds: A weekly showcase of reader-submitted photographs.
- Christmas Creep: A seasonal feature documenting retail stores that displayed holiday decorations and music far too early in the year.
- Above and Beyond: A rare section dedicated to praising corporations that actually did something right.
- Great Moments In Commercial History: A look at strange and entertaining local advertisements.
The "Grocery Shrink Ray" and Shrinkflation
One of the site's most enduring legacies is the term "grocery shrink ray," coined by editor Meghann Marco. This described the practice of manufacturers reducing the size or quantity of a product while keeping the price the same. This phenomenon, now widely known as shrinkflation, gained national attention through Consumerist's reporting and interviews with outlets like National Public Radio (NPR).
High-Profile Exposés
The site frequently broke stories that reached national media like CNN and The New York Times. Notable examples include:
- Facebook Terms of Service: In 2009, Consumerist revealed a clause suggesting Facebook could use user content "forever," sparking a massive privacy controversy.
- The AOL Cancellation Tape: The site posted a viral audio recording of a user, Vincent Ferrari, struggling to cancel his AOL account, which eventually led to the termination of the AOL representative involved.
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Worst Company In America Hall of Fame
The annual tournament highlighted the companies most disliked by the public. The following table shows the top three finalists from the tournament's later years.
| Year | Winner (Golden Poo) | Runner-up | Third Place |
|---|---|---|---|
| 2006 | Halliburton | Choicepoint | Wal-Mart / US Government |
| 2007 | RIAA | Halliburton | Wal-Mart / Exxon |
| 2008 | Countrywide Financial | Comcast | Diebold / Wal-Mart |
| 2009 | AIG | Comcast | Bank of America / Ticketmaster |
| 2010 | Comcast | Cash4Gold | Bank of America / Ticketmaster |
| 2011 | BP | Bank of America | Comcast / Ticketmaster |
| 2012 | Electronic Arts | Bank of America | AT&T / Wal-Mart |
| 2013 | Electronic Arts | Bank of America | Comcast |
| 2014 | Comcast | Monsanto | Wal-Mart / SeaWorld |
Frequently Asked Questions
What happened to Consumerist?
Consumerist was shut down on October 30, 2017. Consumer Reports decided to merge its consumer issues coverage into the main Consumer Reports website rather than maintaining a separate entity.
What is the "grocery shrink ray"?
It is a term coined by Consumerist to describe the practice of reducing a product's size while maintaining its original price, a trend now commonly referred to as shrinkflation.
Who owned Consumerist?
The site was originally founded by Gawker Media in 2005 and was later acquired by Consumers Union (the publishers of Consumer Reports) in December 2008.
How did the "Worst Company In America" contest work?
It was a reader-driven, single-elimination tournament similar to the March Madness basketball format. The winning company was awarded a "Golden Poo" trophy.
Did Consumerist use advertisements?
While under Gawker, it used text ads via Google AdWords and linked to other Gawker sites. After being acquired by Consumer Reports, it stopped running display ads for outside advertisers to avoid potential conflicts of interest.