Fraud on Venmo threatens consumer trust in the emerging P2P payments space – National Consumers League

Fraud in the peer-to-peer (P2P) money transfer space is an all-too-common occurrence and is growing by leaps and bounds. One of the biggest players in the P2P space is Venmo, which is owned by PayPal. Last quarter, the company reported $17 billion in transactions on Venmo, an increase of 78 percent over the same period last year.Unfortunately, wherever money is exchanged, fraudsters will try to find ways to lure consumers into faux deals and fake transactions, particularly when new and potentially unfamiliar technologies are used to make payments. At NCL’s Fraud.org, we hear from thousands of consumers who have either fallen victim to fraud or want advice about avoiding it.

Venmo is no exception to this rule. PayPal reported a spike in fraud on Venmo earlier this year, leading to wider-than-expected operating losses. As TheStreet.com reported this week, many PayPal investors are bullish on Venmo’s potential for monetization but were taken aback by reports that Venmo’s “transaction loss rate”, an internal metric that includes fraud-related losses, rose from 0.25 percent to 0.40 percent of overall Venmo volume between January and March. This was one of the factors that played a part in Venmo’s operating loss of $40 million during the first quarter, according to The Wall Street Journal. Why the spike in early 2018? That is hard to know.

To their credit, as loss patterns emerged, the Venmo team quickly “updated the new features to prevent losses and protect customers,” said Amanda Miller, a PayPal spokesperson. “With the new instant transfer feature, that meant suspending the new feature for a few days and then reintroducing it. Suspending that feature temporarily was the right thing to protect customers.” Venmo also raised fees from a small flat fee to a percentage-based fee.

We hope these changes will help but what have consumers lost in the process?  Scammers have been long abusing P2P services, including Venmo, with scams ranging from reversing payments for goods purchased to using stolen credit cards or hacked accounts to make Venmo transactions. 

But is that enough? And will consumers be left holding the bag when they get caught in fraudulent payment schemes? That’s a question that PayPal and Venmo must answer. It is widely expected that P2P payment systems like Venmo will continue to grow exponentially in the coming years. To maintain consumer trust, they must do all they can to protect consumers from the inevitable scams and frauds that will continue to pop up and harm consumers. If P2P companies like Venmo can’t get fraud under control on their own, it may soon be time for Congress to step in a consider requiring zero-liability regulations such as those that protect users of debit or credit cards.

Consumer groups: DOT’s aviation consumer protection advisory committee tilted in favor of industry

November 28, 2018

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—America’s leading consumer and passenger rights organizations today expressed deep concern at the lack of appropriate balance in the new membership of the Department of Transportation’s (DOT) aviation consumer protection advisory group. Specifically, the groups called on Transportation Secretary Elaine Chao to reconsider the appointments of Frances Smith of the Competitive Enterprise Institute and Maryland Transportation Secretary Pete K. Rahn to the DOT’s Aviation Consumer Protection Advisory Committee (ACPAC). The groups pointed out that the current makeup of the four-person advisory committee may violate both the Federal Advisory Committee Act (FACA) and the FAA Modernization and Reform Act of 2012.

The groups’ letter cited the failure of the ACPAC’s membership to meet FACA’s requirement that federal advisory committees be “fairly balanced” in the views represented. Smith spent the past 12 years with CEI, a pro-business think tank, and has never worked on aviation consumer protection issues. Secretary Rahn’s agency is statutorily preempted from working on consumer protection issues related to airline travel. The ACPAC’s other two representatives are the general counsel of the airlines’ largest trade association and executive director of the Indianapolis Airports Authority. In light of this industry-friendly slant in the makeup, the groups indicated that it is unlikely that the views of the flying public will be adequately considered by the committee.

“Congress created the ACPAC as an important venue for the flying public to hold the DOT and the airline industry accountable for everything from rising ancillary fees to shrinking seat sizes,” said John Breyault, vice president, public policy, telecommunications and fraud at the National Consumers League, which organized the letter. “Unfortunately, Secretary Chao has chosen to pack the ACPAC with members whose first interests are likely to be the airlines’ bottom lines, not consumers’ pocketbooks. Such a makeup is unlikely to be ‘fairly balanced,’ as required by the law.”

The FAA Modernization and Reform Act of 2012 requires that DOT appoint a “consumer representative” and a “state or local government representative” with expertise in aviation consumer protection to the ACPAC. Historically the committee’s members included an experienced and committed advocate for aviation consumers and a state attorney general to represent the interests of the flying public. This enabled the ACPAC to make balanced recommendations on important consumer protection issues like accessibility for customers with disabilities, improving consumer complaint handling, and the need to educate flyers about their rights regarding delays and lost baggage.

“To our knowledge, none of Ms. Smith’s extensive career experience has involved consumer protection matters pertaining to aviation,” wrote the groups. Similarly, the Maryland Department of Transportation aviation responsibilities are directed to management of Baltimore/Washington International Thurgood Marshall and Martin State airports, not consumer protection. As such, Secretary Rahn’s perspective is likely to be “essentially duplicative” of Mario Rodriguez’s, the Executive Director of the Indianapolis Airport Authority, noted the letter.

In addition to the National Consumers League, the letter was signed by the Business Travel Coalition, Consumer Action, Consumer Federation of America, Consumer Reports, EdOnTravel.com, Public Citizen, Travelers United, and U.S. PIRG.

To read the letter, click here (pdf).

###

About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Women’s health groups join opposition to State Department banning of terms – National Consumers League

November 21, 2018

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC–Seven national women’s health groups have joined the chorus of those calling on Secretary Mike Pompeo and the Department of State to reconsider a proposed ban on decades’ old terminology dealing with sexual and reproductive health issues. Responding to reports in Politico, the groups expressed “deep concern” that diplomats around the world would be barred from using the terms “sexual and reproductive health” and “comprehensive sexuality education.” The groups signing the letter to Secretary Pompeo include the North American Menopause Society, the National Consumers League, American Medical Women’s Association, American Sexual Health Association, the International Society for the Study of Women’s Sexual Health, Healthy Women, and the National Association of Nurse Practitioners in Women’s Health.

The groups wrote in their letter, “This proposal is counter-productive, banning widely accepted language that has been in use for decades. We strongly oppose any such change.”

The groups also noted that “sexual and reproductive health” encompasses a broad array of issues affecting both women and men, including pregnancy, prepartum and postpartum care, maternal and perinatal health, perimenopause and menopause issues, puberty issues, pap smears and cervical cancer testing, contraception, abortion, Ebola, Zika, stillbirths, female genital mutilation, infertility, adolescents and sex education, testing and treatment of sexually transmitted diseases including GC and Chlamydia (both on the rise according to the Centers for Disease Control) and HIV prevention, testing and treatment, posttraumatic stress syndrome, depression related to hormone changes, and importantly, violence against women.

The groups are joining a chorus of others, including five members of the House of Representatives who wrote last week to Secretary Pompeo: “It is critical the U.S. continue its leadership in helping to save millions of lives and protect Americans from infectious threats.”

###

About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Seven groups join chorus of elected officials, organizations in challenge of U.S. State Departments decision regarding ubiquitous health termsSeven groups join chorus of elected officials, organizations in challenge of U.S. State Departments decision rega

November 15, 2018

The Honorable Michael R. Pompeo
Secretary of State U.S. Department of State

Dear Mr. Secretary,

The undersigned groups are deeply concerned by reports from several sources that the U.S. Department of State is considering a proposal to prohibit U.S. diplomats around the world from using the terms “sexual and reproductive health” and “comprehensive sexuality education.” This proposal is counterproductive, banning widely accepted language that has been in use for decades. We strongly oppose any such change.

The term “sexual and reproductive health” encompasses a broad array of issues affecting both women and men, including pregnancy, prepartum and postpartum care, maternal and perinatal health, perimenopause and menopause issues, puberty issues, pap smears and cervical cancer testing, contraception, abortion, Ebola, Zika, stillbirths, female genital mutilation, infertility, adolescents and sex education, testing and treatment of sexually transmitted diseases including GC and Chlamydia (both on the rise according to the Centers for Disease Control) and HIV prevention, testing and treatment, posttraumatic stress syndrome, depression related to hormone changes, and importantly, violence against women.

The United States has tremendous influence around the world in promoting better health outcomes for all of the world’s citizens. Efforts to change or control the language and restrict the use of certain words that U.S. diplomats are permitted to use is unwise as we believe that by prohibiting the terms “sexual and reproductive health” and “comprehensive sexuality education” will undo decades of global progress for women’s access to healthcare and basic human rights.

We are committed to lifting the stigma related to sexual reproductive health communications, especially between women and their healthcare providers. Sexual health issues are very common for both sexes, with about 7 in 10 women having experienced a sexual health issue and 15-20% of men having described some kind of sexual problem when meeting with their healthcare provider.

Reproductive health is specific to reproductive processes, functions, and the reproductive system across all stages of life. Sexual and reproductive health issues are frequently preventable or treatable, yet a multitude of barriers often stand in the way of women and men discussing their concerns with a healthcare provider, leaving them to suffer in silence. Among those barriers is the culture of embarrassment or stigma that already exists in discussions about sexual and reproductive health.

Breaking down barriers that hinder or prevent conversations about sexual and reproductive health requires support and education at many levels. We believe the U.S. Department of State’s proposal to prohibit the terms “sexual and reproductive health” and “comprehensive sexuality education” will only hurt, not help, the progress that has been made and hinder ongoing efforts to further break down barriers.

For these reasons, we urge the Administration to abandon the proposal to prohibit the use of “sexual and reproductive health” and “comprehensive sexuality education.”

Thank you for your attention to our concerns about the damage this proposed prohibition of terms will have. The United States should be a leader in promoting sexual and reproductive health for men and women.

Sincerely,

Sheryl A. Kingsberg, PhD
Immediate Past President
The North American Menopause Society

Ms. Sally Greenberg
National Consumers League
Healthy Women International

Other Groups Endorsing this Request

American Medical Women’s Association
American Sexual Health Association
Healthy Women International
Society for the Study of Women’s Sexual Health
National Association of Nurse Practitioners in Women’s Health

What California is doing to lower maternal mortality

Nissa ShaffiThe United States currently has the worst maternal mortality rate in the developed world, at 26.4 deaths per 100,000 live births, compared to 9.2 in the United Kingdom, 8 in France, and 5.5 in Australia. To put this in perspective, the United States currently has a higher maternal mortality rate than Saudi Arabia and Libya and is barely better than Mexico, Iran, and Russia. An even more devastating reality is the maternal mortality rate among black women, who are 243 percent more likely to die from pregnancy- or childbirth-related causes than women of any other race in America.

There is some good news amid these grim numbers. The state of California has successfully worked in collaboration with public and private healthcare stakeholders to decrease the maternal mortality rate to seven deaths per 100,000 live births.

In 2006, the California Department of Public Health (CDPH) and the California Maternal Quality Care Collaborative (CMQCC) worked together to assemble a multidisciplinary committee of clinical experts to investigate this epidemic. This committee’s focus was to determine the causes of maternal deaths and the demographics of women most affected, along with identifying opportunities to turn the numbers around.

Within the first two years of its launch, the committee was able to identify placenta accreta and preeclampsia (pregnancy-induced high blood pressure) as the two most preventable causes of maternal mortality.  Placenta accreta is a condition in which the placenta affixes to the uterine wall and fails to separate postpartum, which results in severe obstetric hemorrhaging. Upon discovering a correlation between the rise in cesarean sections (C-sections) and placenta accreta cases, the CMQCC sought to reduce the number of C-sections that were medically unnecessary.

Additionally, the CMQCC revamped California’s hemorrhage guidelines to help make childbirth safer for mothers in the state. As a result, California has created a state model that has resulted in a dramatic decrease in maternal mortality, while the rest of the country continues to experience an increase in rates.

California has set an example for the rest of the country. Other states would do well to take a page from its example and turn around this alarming trend of increased maternal fatalities. In addition, a bill currently being voted on in Congress, the Maternal Health Accountability Act (S.1112), would be a federal remedy to help address this issue. The bill would require states to monitor and assess pregnancy-associated deaths and develop appropriate measures to improve the quality of maternal care. We should all ask our members of Congress to help pass the Maternal Health Accountability Act (S.1112), a bipartisan bill that could potentially save countless lives and reverse the damaging trend of maternal mortality in the United States.

Increased Consumer Risks from Purchasing Erectile Dysfunction Medicine on the Gray Market Exposed in New Research – National Consumers League

November 14, 2018

Bayer and the National Consumers League release white paper that explores the risks consumers face when purchasing erectile dysfunction (ED) medicines from illegal online pharmacies and provides policy recommendations for increasing safe access to ED medicines.

Washington, DC–Bayer and the National Consumers League (NCL) today released a white paper, Increased Consumer Risk from Erectile Dysfunction Medication Advertised and Sold on the Gray Market, which exposes the dangers to consumers who purchase ED medication from illegal online pharmacies – also known as the gray market.

The white paper was commissioned by Bayer, and NCL, the nation’s pioneering consumer advocacy organization, served as a reviewer and research consultant. Findings from the white paper were presented today at the Alliance for Safe Online Pharmacies (ASOP) Global Foundation’s Spotlight on Illegal Online Drug Sales Research Symposium in Washington, D.C.

“Online pharmacies offer convenient access to prescription medicines, but without proper precautions and guardrails, convenience can come at the cost of safety and security,” said NCL Executive Director Sally Greenberg, who authored a foreword to the white paper and presented the findings at the ASOP Symposium. “When consumers cut corners by shopping at illegitimate online sources, they inadvertently place themselves at risk. We are committed to ensuring access to safe, effective medicines for all Americans and contributing to recommendations that place the gray market front-and-center in health policy decision making in order to reduce consumer reliance on these illicit online channels.”

“Certain medicines, particularly those used to treat ED, are commonly sought after through illegitimate internet pharmacies, despite known risks to consumers,” said Raymond F. Kerins Jr., Senior Vice President of Corporate Affairs at Bayer in the U.S. “Consumer and patient safety, health and well-being are at the heart of our life science mission. It’s our hope that this research helps to create additional awareness and actionable steps to deter online purchasing in today’s digital age.”

Erectile dysfunction medications are among the most common medications offered by illegal online pharmacies. Many men with ED choose not to visit a doctor for consultation or to obtain prescriptions for these medications due to embarrassment over discussing the issue, because they lack sufficient insurance coverage or simply out of a preference for convenience. Increasingly, men are turning to online pharmacies, however, a 2018 review conducted by the National Association of Boards of Pharmacy found 94.8 percent of online pharmacies do not comply with U.S. pharmacy laws and practice standards, placing consumer health and safety at risk. The drugs sold through these illegal channels may contain too much, too little or no active pharmaceutical ingredients. Likewise, these products may contain substitutes and altogether different pharmaceutical compounds or ingredients found to be ineffective, harmful or even deadly.

To address these serious risks to consumers, the white paper concludes that gray market deterrents should be an integral component of health policy in the digital age and offers steps for policymakers to take action. These policies include enhancing consumer awareness about the gray market and promoting health literacy; encouraging healthcare providers to talk about the risks of illegal online pharmacies with their patients; increasing access by making ED medicines available over-the-counter, which includes consumer education and information programs; and collaborative law enforcement actions to combat illegal sales on the gray market.

This white paper and the Ipsos Gray Market Survey were developed with funding provided by Bayer. Bayer, the National Consumers League and Faegre Baker Daniels Consulting contributed research and reviewed the content of this paper.

Please visit Bayer at www.bayer.us and the NCL at www.nclnet.org to learn more about the research and access the white paper.

###

About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

About Bayer
Bayer is a global enterprise with core competencies in the Life Science fields of health care and agriculture. Its products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen. In fiscal 2017, the Group employed around 99,800 people and had sales of EUR 35.0 billion. Capital expenditures amounted to EUR 2.4 billion, R&D expenses to EUR 4.5 billion. For more information, go to www.bayer.com.

Forward-Looking Statement
This news release may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Contact:

Carol McKay, National Consumers League

carolm@nclnet.org, (412) 945-3242 

 

Jennifer Brendel, Bayer

Jennifer.brendel@bayer.com, (862) 246-5028

Public interest privacy legislation principles – National Consumers League

November 13, 2018

Unregulated data collection and use in the United States has eroded public trust in companies to safeguard and use data responsibly. Surveys show that, while individuals often try to remove or mask their digital footprints,[1] people think they lack control over their data,[2[ want government to do more to protect them, [3] and distrust social media platforms.[4]

The current U.S. data privacy regime, premised largely upon voluntary industry self regulation, is a failure. Irresponsible data practices lead to a broad range of harms, including discrimination in employment, health care, and advertising, data breaches, and loss of individuals’ control over personal information. Existing enforcement mechanisms fail to hold data processors accountable and provide little-to-no relief for privacy violations.

The public needs and deserves strong and comprehensive federal legislation to protect their privacy and afford meaningful redress. Privacy legislation is essential to ensure basic fairness, prevent discrimination, advance equal opportunity, protect free expression, and facilitate trust between the public and companies that collect their personal data. Legislation should reflect at least the following ideas and principles:

1. Privacy protections must be strong, meaningful, and comprehensive

Privacy concerns cannot be fully addressed by protecting only certain classes of personal data held by some companies. Legislation should mandate fairness in all personal data processing, respect individuals’ expectations for how data should be treated, provide for data portability, and include safeguards against misuse of data, including de-identified and aggregate data. Legislation should advance fundamental privacy rights and require all entities that collect, store, use, generate, share, or sell (collectively, “process”) data both online and offline to comply with Fair Information Practices [5] (collection limitation, data quality, purpose specification, use limitation, security safeguards, openness, access and correction rights, and accountability) across the complete life cycle of the data. Legislation should require all data processing to be clearly and accurately explained, justified, and authorized by the individual. People should have the right to know when their data has been compromised or otherwise breached. Additionally, legislation should require entities processing data to adopt technical and organizational measures to meet these obligations, including risk assessments of high-risk data processing.

2. Data practices must protect civil rights, prevent unlawful discrimination, and advance equal opportunity

Legislation should ensure fundamental fairness of and transparency regarding automated decision-making. Automated decision-making, including in areas such as housing, employment, health, education, and lending, must be judged by its possible and actual impact on real people, must operate fairly for all communities, and must protect the interests of the disadvantaged and classes protected under anti-discrimination laws. Legislation must ensure that regulators are empowered to prevent or stop harmful action, require appropriate algorithmic accountability, and create avenues for individuals to access information necessary to prove claims of discrimination. Legislation must further prevent processing of data to discriminate unfairly against marginalized populations (including women, people of color, the formerly incarcerated, immigrants, religious minorities, the LGBTQIA/+ communities, the elderly, people with disabilities, low-income individuals, and young people) or to target marginalized populations for such activities as manipulative or predatory marketing practices. Anti-discrimination provisions, however, must allow actors to further equal opportunity in housing, education, and employment by targeting underrepresented populations where consistent with civil rights laws. Moreover, decades of civil rights law have promoted equal opportunity in brick-and-mortar commerce; legislation must protect equal opportunity in online commerce as well.

3. Governments at all levels should play a role in protecting and enforcing privacy rights

The public consistently call for government to do more, not less, to protect them from misuse of their data. Legislation should reflect that expectation by providing for robust agency oversight, including enhanced rulemaking authority, commensurate staff and resources, and improved enforcement tools. Moreover, no single agency should be expected to police all data processors; therefore, legislation should empower state attorneys general and private citizens to pursue legal remedies, should prohibit forced arbitration, and importantly, should not preempt states or localities from passing laws that establish stronger protections that do not disadvantage marginalized communities.

4. Legislation should provide redress for privacy violations

Individuals are harmed when their private data is used or shared in unknown, unexpected, and impermissible ways. Privacy violations can lead to clear and provable financial injury, but even when they do not, they may, for example, cause emotional or reputational harm; limit awareness of and access to opportunities; increase the risk of suffering future harms; exacerbate informational disparities and lead to unfair price discrimination; or contribute to the erosion of trust and freedom of expression in society. In recognition of the many ways in which privacy violations are and can be harmful, legislation should avoid requiring a showing of a monetary loss or other tangible harm and should make clear that the invasion of privacy itself is a concrete and individualized injury. Further, it should require companies to notify users in a timely fashion of data breaches and should make whole people whose data is compromised or breached.

Signed,

Access Humboldt
Access Now
Berkeley Media Studies Group
Campaign for a Commercial-Free Childhood
Center for Democracy & Technology
Center for Digital Democracy
Center for Media Justice
Center on Privacy & Technology at Georgetown Law
Color of Change
Common Cause
Common Sense Kids Action
Consumer Action
Consumer Federation of America
Consumers Union
Customer Commons
Demand Progress
Free Press Action Fund
Human Rights Watch
Lawyers’ Committee for Civil Rights Under Law
Media Alliance
Media Mobilizing Project
National Association of Consumer Advocates
National Consumer Law Center
National Consumers League
National Digital Inclusion Alliance
National Hispanic Media Coalition
New America’s Open Technology Institute
Oakland Privacy
Open MIC (Open Media and Information Companies Initiative)
Privacy Rights Clearinghouse
Public Citizen
Public Knowledge
U.S. PIRG United Church of Christ, OC Inc.

———

1 The State of Privacy in Post-Snowden America, Pew (Sept. 21, 2016), https://www.pewresearch.org/facttank/2016/09/21/the-state-of-privacy-in-america.

2 Bree Fowler, Americans Want More Say in the Privacy of Personal Data, Consumer Reports (May 18, 2017), https://www.consumerreports.org/privacy/americans-want-more-say-in-privacy-of-personal-data/.

3 Lee Rainie, Americans’ Complicated Feelings About Social Media in an Era of Privacy Concerns, Pew (Mar. 27, 2018), https://www.pewresearch.org/fact-tank/2018/03/27/americans-complicated-feelings-about-social-media-in-an-era-of-privacy-concerns/.

4 Id.

5 Fair Information Practices are similar to those adopted by the OECD. See OECD Privacy Framework, https://www.oecd.org/sti/ieconomy/oecd_privacy_framework.pdf.

NCL applauds FTC and DOJ settlement against MoneyGram for failing to police scammers

November 9, 2018

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League (NCL), the consumer group known for its expertise in fraud, is commending the Federal Trade Commission’s (FTC) fine of $125 million imposed on MoneyGram for failing to police fraudulent transactions.

Under the agreement, the company said it would take steps to crack down on scammers who trick victims into wiring money in schemes that often target grandparents, seniors, and others in phony sweepstakes, lottery, and other scams, including impersonating IRS government officials.

“MoneyGram’s alleged failure to implement key provisions of the order allowed scammers to continue to use its money transfer system to rip off consumers,” said FTC Chairman Joe Simons in a news release. The FTC found that from January to September of this year, 54 percent of government-impostor scams involved the use of a gift card or reloadable payment card.

The following statement can be attributed to NCL’s Executive Director Sally Greenberg:

“MoneyGram is a repeat offender. We hear from consumers every day that the service was used to delivered cash or money on a gift card wired at a scammer’s request. Once that’s done, the funds cannot be recovered. Companies like MoneyGram know how to reduce fraud, but they haven’t taken the steps necessary to do so. Some of the MoneyGram outlets had incidences of fraud at 50 percent of their transactions. We are disappointed at the failure of this company to act responsibly. While NCL works to educate the public, we rely heavily on federal law enforcement to police this type of fraud. We are grateful to the dedicated civil servants at the FTC and the Department of Justice (DOJ) for bringing these cases and holding companies accountable.

As reported in The Washington Post, MoneyGram has agreed to take the following steps as part of the settlement:

  • Reported fraudsters will be blocked from using MoneyGram’s transfer system within two days of receiving a complaint identifying those individuals.
  • Individuals worldwide will be required to show government-issued identification to send or receive money transfers.
  • Money transfers from the United States will be monitored.
  • Agents who are found to have processed a high volume of transactions connected to reported fraudsters will be terminated, disciplined or restricted.

If you think you were a victim, the DOJ is directing consumers to MoneyGramRemission.com or providing this number to call: (844) 269-2630. Consumers can sign up for updates that will include how to request compensation.

###

About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL commends FTC for crackdown on ‘shoddy’ healthcare plans

November 6, 2018

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League (NCL) has issued praise for the Federal Trade Commission’s (FTC) recent action against Simple Health Plans LLC, a Hollywood, FL-based company duping consumers into purchasing shoddy healthcare plans purporting to be Affordable Care Act-compliant. At the request of the FTC, a federal judge temporarily shut down the company that allegedly bilked consumers out of more than $100 million by selling worthless plans and simultaneously leaving victims uninsured.

In August, NCL expressed concern that the Short-Term Limited Duration Insurance (STLDI) Plan rule would allow for the sale of short-term health insurance plans that do not comply with the requirements of the Affordable Care Act—and allow insurers to offer junk insurance policies that fail to meet consumers’ healthcare needs. 

The following statement can be attributed to NCL Executive Director Sally Greenberg:

“We commend the FTC for its swift action against Simple Health Plans and the con artists disguised as health care company executives. This company has gone further than just preying on consumers’ finances — they’ve misled consumers into believing they were buying legitimate insurance coverage. Instead, they’ve left their victims without basic coverage for  doctors’ visits and pre-existing conditions, and many with mounting debt. We appreciate the FTC’s efforts to protect consumers from false advertising and unscrupulous actors in this industry and hope justice is served for these fraudsters and others who prey on vulnerable healthcare consumers.”

###

About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Healthcare Open Enrollment starts today

Nissa ShaffiOpen Enrollment is back! From November 1, 2018 to December 15, 2018, consumers will be able to shop for insurance coverage options through the individual health insurance marketplace. Even if you are currently insured, you can still take advantage of the Open Enrollment period to compare plan options and select a plan that better suits your budget and needs.

The Centers for Medicare & Medicaid Services (CMS) recently announced that marketplace premiums have dropped by 1.5 percent nationally. With regard to pre-existing conditions, all marketplace plans sold through HealthCare.Gov are required to provide comprehensive coverage to consumers and cannot discriminate against enrollees on the basis of health status. In addition, when you apply for insurance via the marketplace, you will be able to determine if you qualify for a premium tax credit. To find out if your monthly income range qualifies for a premium tax credit, please click here.

The National Consumers League encourages consumers to seek coverage via the Affordable Care Act (ACA) compliant plans offered on the marketplace. These plans are required to cover the essential health benefits mandated by the ACA, ensuring that you have access to comprehensive care.

If you need assistance navigating the marketplace, you can find a healthcare navigator in your area to help in comparing coverage options that meet your needs. To find a navigator in your area, please click here. Most importantly, in order to have coverage that is effective by January 1, 2019, you must sign up by December 15, 2018.