Consumer group calling on Congress to pass Hot Cars Act on Heat Stroke Prevention Day, July 31

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July 31, 2019

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

Washington, DC—Washington, DC—Just days after the tragic deaths of one-year-old twins who were accidentally left behind by a parent in a car in the Bronx over the weekend, advocates pointing to today’s observance of Heat Stroke Prevention Day to call attention to a bill in Congress that would mandate new cars come with technology to prevent such tragedies.

The Hot Car Act would require that all new cars come equipped with an alarm system that reminds drivers to check the car after exiting. The bill calls for “a distinct auditory and visual alert to notify individuals inside and outside of the vehicle of the presence of an occupant.” This alarm will only occur when the vehicle senses a physical presence in the back seat.

Heatstroke is the leading cause of deaths in vehicles (excluding crashes) for children 14 years old and younger, according to Consumer Reports. Although some may believe that hot car tragedies could never happen to them, more than 900 children have died in hot cars since 1990, and 17 fatalities have been recorded in 2019 alone, according to safety advocacy group KidsAndCars.org.

“This lifesaving technology is already available, so why wouldn’t we expedite its implementation and allow children and their families to benefit from it?” said NCL Executive Director Sally Greenberg. “Just as we have overcome other dangers in cars–kids dying in trunks, backover accidents, deadly electric car windows–the auto industry now has the technology available to prevent these tragedies. Kids shouldn’t pay with their lives when we can readily fix the problem. The auto industry can do something about this and should.”

The Hot Cars Act alert system follows in the tradition of other essential vehicle alarm systems that have become commonplace for consumers, such as chimes that remind drivers to use a seat belt, indicate that headlights have been left on, or doors have been left ajar.

The alarm system also has relevance beyond the summer months. Sensors and alarms in new cars will also prevent children from being left unattended in dangerously cold temperatures. The proposed technology would also alert pet-owners if their furry friend is about to be left behind.

“These hot car deaths have happened for many years to many doting, devoted, and loving parents. Human beings make mistakes, but we now have the technology that can prevent these mistakes and help protect children, so let’s use it,” said Greenberg.

The Senate introduced its version of the bill in May, which was sponsored by Senators Roger Wicker (R-MS), Richard Blumenthal (D-CT), and Maria Cantwell (D-WA). 

The National Consumers League once again commends Representatives Tim Ryan (D-OH), Jan Schakowsky (D-IL) and Peter King(R-NY) for their continued leadership on this issue and urge members of Congress to support this important children’s protection legislation.

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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.

Consumer group: Capital One breach highlights need for Congressional action on data security legislation

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July 30, 2019

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

Washington, DC—Just one week after consumers received relief from the massive Equifax breach, yet another massive breach—this time at Capital One bank—is placing consumers at risk, yet again, of identity theft.

In one of the largest financial breaches in history, more than 100 million Capital One accounts and 140,000 Social Security numbers were reportedly compromised. As was the case in previous breaches, the Capital One breach appears to have stemmed from a third-party cloud hosting vendor that stored Capital One’s data.

The National Consumers League (NCL), the nation’s pioneering consumer and worker advocacy organization, is calling on Congress to immediately pass comprehensive privacy legislation and protect highly personal data.

“Consumers are sitting ducks if big banks like Capital One, giant hotel chains like Marriott, and credit scoring companies like Equifax don’t take the necessary steps to protect our data,” said John Breyault, NCL’s vice president of public policy, telecommunications, and fraud. “When companies like Capital One are sloppy in protecting consumers’ data, it allows hackers steal consumer information which ultimately fuels identity theft and other frauds against us.”

“More than five years after hackers compromised the personal information of nearly 110 million Target customers, criminals are still breaking through supposedly strong firewalls and stealing consumers’ personal data from companies. Any data security legislation must require that consumer data be protected with strong fines and criminal penalties for failing to do so,” said NCL Executive Director Sally Greenberg.

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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.

DOT green lights more concentration, less competition in American-Qantas alliance

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July 24, 2019

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), America’s pioneering consumer and worker advocacy organization, is disappointed in the Department of Transportation’s (DOT) decision to approve a grant of antitrust immunity to a new international alliance between American Airlines and Qantas Airways. The following statement is attributable to Sally Greenberg, NCL executive director:  

“In 2016, the Obama DOT found that an American-Qantas tie-up would ‘reduce competition and consumer choice.’ Less than three years later, the Trump DOT has decided that the American-Qantas alliance will be ‘procompetitive’ and ‘likely to generate substantial benefits for the traveling public’ in the U.S.-Australia market. We are at a loss to understand how allowing the Big Three airline alliances to control 86 percent of the U.S.-Australia market will generate substantial benefits for flyers. This decision is yet more evidence that the Trump DOT is intent on putting the interests of big airlines ahead of the interests of the flying public. The woeful absence of competition in the airline industry today has led to higher prices, poor service, and nowhere for the flying public to go. This decision only adds insult to injury for consumers.”

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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.

The ‘tampon tax’: an unconstitutional loss to American consumers

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headshot of NCL LifeSmarts intern Alexa

By NCL LifeSmarts intern Elaina Pevide

Bingo supplies in Missouri, tattoos in Georgia, cotton candy in Iowa, gun club membership in Wisconsin; what do these products and services have in common? They are all treated as tax-exempt by states that still put a tax on tampons.

Sales taxes on menstrual products, often referred to as “tampon taxes”, are still present in 35 states. Tampon taxes are cited as a major contributor to the “pink tax”, the heightened cost of products and services marketed toward women. For example, a purple can of sweet-smelling shaving cream for women will almost always cost more than its male counterpart across the aisle. This trend translates across industries. A 2015 study from the Joint Economic Committee found that women pay more 42 percent of the time for products from pink pens to dry cleaning. These pricier goods and services serve no benefit to the consumer and have no apparent improvement in function or quality. The pink tax cuts into women’s spending power and takes advantage of consumers simply on the basis of gender.

Tampon taxes and the pink tax have both been making waves recently as pressing feminist issues. While markups on products for women are unjust, activists are targeting the tampon tax as priority number one. Menstrual products, they argue, are necessities and states have the power to cut sales taxes on them by labeling them as such. States give tax exemptions to other items– like bingo supplies, tattoos, and cotton candy–that are far less vital to the health and success of consumers. Today, five states do not have sales taxes on any products, five states have always given hygiene products tax-exemption status, and five states have successfully fought to eliminate the tampon tax. Currently, 35 states remain with 32 having tried–and failed–to pass legislation on the matter.

States resistance to eliminate the tampon tax, typically for fiscal reasons, is at odds with the interests and demands of consumers. A survey of 2,000 women, conducted on behalf of menstrual cup company Intimina, found that three out of four women believe the tampon tax should be eradicated. Nearly 70 percent of those surveyed interpreted taxes on feminine products as a form of sexism.

Countless advocacy organizations have been established out of the need to provide consumers with affordable menstrual products and eliminate the tampon tax. One such group, Period Equity, recently launched a campaign with reproductive care company LOLA called “Tax Free. Period.”. Their campaign calls for the remaining 35 states with a tampon tax to eliminate it by Tax Day 2020. In the meantime, they’re gearing up for a legal battle to challenge the states that refuse to comply. Their argument? Taxes on a product that affect only women and other individuals who menstruate is a form of discrimination and thereby unconstitutional.

As reproductive rights groups await the response of state legislatures and federal courts on this issue, the half of Americans that use menstrual products in their lifetime are suffering. Women make less in wages than men but are forced to spend more. The tampon taxes expound gender inequality and costs American consumers millions of dollars each year–dollars that could benefit their families and stimulate the economy elsewhere. Period Equity’s tagline says it best: “Periods are not luxuries. Period.” It’s about time for American tax policy to reflect that reality.

Elaina Pevide is a student at Brandeis University where she majors in Public Policy and Psychology with a minor in Economics. She expects to graduate in May of 2020.

NCL heralds House passage of Raise the Wage

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July 19, 2019

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), celebrating its 120th Anniversary of fighting for minimum wage workers, and author of the first minimum wage bills in America,  praised the  actions of the US House of Representatives in the passage July 18, 2019 Raise the Wage Act of 2019 (H.R. 582) by a 231 to 199 vote.  

“I just know that Florence Kelley is smiling upon us today,” said Sally Greenberg, NCL’s Executive Director. Kelley, NCL’s pioneering champion for the League’s first 33 years, wrote the nation’s first of these bills in the early decades of the 20th Century. “She had many setbacks along the way,” said Greenberg, “including when DC’s minimum wage law was found unconstitutional in 1918 by the Supreme Court.”

But she persisted, and today the minimum wage is recognized as both constitutional and necessary to protect the lowest–paid workers in America. NCL advocates for the $15 an hour minimum wage in today’s legislation and supports a long overdue increase to a wage that is fair, livable, and conducive to a dignified quality of life.  

The bill would raise the minimum wage–stuck at $7.25 for nearly 10 years–to $15 an hour by 2025, helping lift millions out of poverty. In addition, Raise the Wage will decrease the wage gap between minimum and median wage workers, as after 2025, the wage will continue to increase indexed to the median wage. Raise the Wage will also ensure fair wages for people with disabilities, who currently could make mere pennies an hour. The current exemptions for disabled employees is “legalized discrimination,” NCL believes. Raise the Wage has the added potential to decrease unemployment and reduce poverty, as shown by the University of California at Berkeley research examining the results of raising the minimum wage in the city of Berkeley.  

Democratic Members reminded their colleagues that Congress set the minimum wage since 1938 when it was enacted in the Fair Labor Standards Act. Representative Rosa DeLauro (D-CT) called the Republican claim of federal interference “hogwash.”  

NCL congratulates and thanks the House Members who supported this landmark overdue legislation. “We salute Speaker Nancy Pelosi (D-CA) for her towering leadership,” said Greenberg. “She noted that the bill ‘grows our economy and creates economy, increases families’ purchasing power and drives economic growth that lifts up all communities.’ Affording people a livable minimum wage benefits local economies, since workers will have higher earnings to spend at local businesses.” 

NCL was founded in 1899 on the principles of promoting a fair marketplace for workers and consumers. More than a century–120 years—later, NCL continues to work to ensure progressive reforms take place in communities and workplaces across the country. NCL is also proud of its history of championing state minimum wage laws. Our founder, Florence Kelley, led a campaign that saw 14 states pass some of the first minimum wage laws. Following those victories, NCL worked to pass the 1938 federal Fair Labor Standards Act, which established federal minimum wage. Since then, we have advocated – and will continue to advocate – for increased federal minimum wages. 

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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.

Raise the Wage Act 2019: House majority looking to lift millions out of poverty

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headshot of NCL Health Policy intern Alexa

By NCL Health Policy intern Alexa Beeson

June 16 marked the longest period the United States has gone without an increase in the federal minimum wage. The federal wage floor was last raised a decade ago, in 2009. The current minimum wage is just $7.25 an hour, which is a poverty wage by federal standards, but tipped workers and people with disabilities often make even less. Worse yet, the value of this wage has decreased by 13 percent since its enactment due to inflation.

Many states have increased their minimum wages, including some red states like Arkansas and Missouri. These states have done so through the popular-vote referendum process. There is widespread support from all Americans–Democrats and Republicans alike–on this issue. In fact, 70 percent of Republican voters want a raised federal wage floor. There are still 21 states, however, whose workers receive only the bare minimum federal wage or, even worse, a tipped wage.

The U.S. House of Representatives, now led by a Democratic majority for the first time in many years, will be taking up the Raise the Wage Act (H.R. 582), and there is a companion bill by the same name in the Senate (S. 150).

The Raise the Wage Act will incrementally lift the federal wage floor to $15 an hour over the next five years. If enacted, the legislation would reduce levels of poverty across the nation without driving vulnerable populations into unemployment. It will also help decrease the wage gap between minimum and median wage workers. The House is expected to have a roll call vote on H.R. 582 before the August recess. If it does pass in the House, the act will have a hard time making it through the Republican-controlled Senate. However, this is still a progressive step in the right direction.

This act will also end subminimum wages for tipped employees. If employees make less than the $7.25 federal minimum wage, including tips, employers are supposed to add the rest to their paycheck. However, some employers fail to do so. The affected employees can make as little as $5 less than the minimum wage. The way the system works now, customer gratuities act as wage subsidies that we believe should be covered by the employer. For those concerned with whether raising the minimum wage will stop customers from tipping, studies show that eliminating the tiered wage system will not stop patrons from leaving tips.

Raise the Wage will end the subminimum wage for people with disabilities, some of whom make mere pennies an hour. Subminimum wages act as a form of legalized discrimination, and this bill will make it impossible for employers to get new special exemptions to pay their employee’s subminimum wages. It will also end current exemptions because all wages will be increased to $15 an hour in the next seven years.

Some fiscally conservative groups have claimed that raising the wage to $15 an hour would lead to high unemployment or business closures, with small businesses burdened by the extra costs. However, studies contradict those claims. Many show that raising the minimum wage would have little or no impact on employment. A study conducted by the University of California at Berkeley Institute for Research on Labor and Employment found that when the town of Berkeley raised the minimum wage, it actually saw a decrease in unemployment and a reduction in poverty. Further research showed that wage increases in 51 counties over 45 states had no adverse effect on employment hours or weeks worked.

NCL has been a long-standing advocate for fair minimum wages. In the early 1900s, the League’s General Secretary Florence Kelley ran a minimum wage campaign, which passed laws in 14 states. We are encouraged to see the House of Representatives taking affirmative steps to raise the federal minimum wage.

Alexa is a student at Washington University in St. Louis where she studies Classics and Anthropology and concentrates in global health and the environment. She expects to graduate in May of 2020.

NCL to USDA: Portion control must be key strategy for fighting America’s highest-ever obesity rates

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July 11, 2019

Media contact: National Consumers League – Shaunice Wall, MS, RD, shaunicew@nclnet.org, (202) 835-0331, Carol McKay, carolm@nclnet.org, (412) 945-3242, or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League (NCL) presented oral comments to the USDA’s Dietary Guidelines Advisory Committee today in Washington, DC, urging the committee to focus on portion control as a key strategy to address the rise of obesity.

“Unfortunately, while the current version of the Dietary Guidelines mentions portion size – it appears to be mostly an afterthought among the various strategies to improve diets and fight obesity,” said NCL Executive Director Sally Greenberg. “Portion balance is not mentioned in the guidelines’ executive summary; this is despite the fact that larger portion sizes have greatly contributed to the problem of overweight and obesity.”

Nationally, 39.6 percent of adults and 18.5 percent of children were considered obese in 2015-2016, the most recent period for which NHANES data were available. These figures represent the highest percentages ever documented and obesity rates are projected to affect half of all adults, or 115 million adults, by the year 2030. There are also substantial economic losses associated with obesity. The estimated annual medical cost of obesity in the United States was $147 billion in 2008 U.S. dollars; the medical cost for people who have obesity was $1,429 higher than those of normal weight. 

“One promising, and we think underutilized, strategy for tackling the obesity epidemic is helping consumers understand and implement appropriate portion control,” said Greenberg. “This simple step to improving public health should not be marginalized in the forthcoming edition of the Guidelines; rather it should be one of the key points stressed by the Dietary Guidelines Advisory Committee and form a cornerstone of the Dietary Guidelines.”

NCL’s full testimony is available here (PDF).

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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.

DC takes lead in fight against deceptive hotel resort fees

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July 10, 2019

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) is applauding District of Columbia (DC) Attorney General Karl Racine for his action this week to rein in Marriott International’s use of deceptive “resort fees.” According to the consumer group, the fees hide the true cost of a hotel stay and are too often presented to consumers in a “take it or leave it” fashion at the end of their hotel stays. On Tuesday, Racine filed a lawsuit against Marriott alleging that the hotel chain violated consumer protection laws by not including resort fees in the advertised room rates, luring consumers with deceptively low prices.

“Hotel resort fees tacked on at the end of a hotel stay are deceptive, plain and simple,” said NCL Executive Director Sally Greenberg. “That’s why NCL and other consumer groups have been raising the alarm about these anti-consumer practices for years. We are grateful to General Racine for leading the charge against Marriott and putting other hotels on notice that deceptive hotel resort fees have no place in the District.”

Advocates’ issue with resort fees is that they prevent consumers from being able to accurately compare the cost of a hotel room when they don’t know what the all-in costs will be until the end of their stay. Mandatory hotel resort fees leave consumers stuck paying extra costs that may have discouraged the booking had they been disclosed up-front.

Marriott owns, manages, and franchises more than 5,700 hotels and 1.1 million hotel rooms in more than 110 countries, including at least 29 hotels in the District of Columbia. In 2012 the Federal Trade Commission (FTC) warned Marriott and nearly two dozen other hotel chains that their pricing practices around resort fees may violate federal consumer protection laws by misrepresenting the true price of hotel rooms. In 2017, the FTC’s Bureau of Economics issued a report concluding that “separating mandatory resort fees from posted room rates without first disclosing the total price is likely to harm consumers.”

Marriott has charged resort fees to tens of thousands of District consumers over the years, totaling millions of dollars. Racine’s lawsuit alleges that over the past decade, Marriott has violated the District’s Consumer Protection Procedures Act and harmed District consumers.

“Marriott had fair warnings on several occasions but continued this unfair and deceptive business practice. We are so pleased that General Racine is seeking monetary relief for residents of the District who have been forced to pay these fees,” said John Breyault, NCL Vice President of Public Policy, Telecommunications, and Fraud. “We urge other state attorneys general to enforce their consumer protection laws against Marriott and other hotel chains whose are sticking millions of consumers with these deceptive, unwanted fees.”

The complaint is available at: https://oag.dc.gov/sites/default/files/2019-07/Marriott-Complaint.pdf

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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 applauds Ryan, Schakowsky, and King for House introduction of Hot Cars Act (HR 3593)

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July 8, 2019

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, the nation’s pioneering consumer advocacy organization, applauds Representatives Tim Ryan (D-OH), Jan Schakowsky (D-IL), and Peter King (R-NY) for reintroducing the Hot Cars Act (H.R. 3593) on July 1. By mandating that all new cars come equipped with technology that detects and alerts the presence of a child left in a vehicle, the Hot Cars Act would help stop dozens of tragic and preventable child deaths annually.

The Hot Car Act would require that all new cars come equipped with an alarm system that reminds drivers to check the car after exiting. The bill calls for “a distinct auditory and visual alert to notify individuals inside and outside of the vehicle of the presence of an occupant.” This alarm will only occur when the vehicle senses a physical presence in the back seat.

Heatstroke is the leading cause of deaths in vehicles (excluding crashes) for children 14 years old and younger, according to Consumer Reports. Although some may believe that hot car tragedies could never happen to them, more than 900 children have died in hot cars since 1990, and 17 fatalities have been recorded in 2019 alone, according to safety advocacy group KidsAndCars.org.

“This lifesaving technology is already available, so why wouldn’t we expedite its implementation and allow children and their families to benefit from it?” said NCL Executive Director Sally Greenberg.

The Hot Cars Act alert system follows in the tradition of other essential vehicle alarm systems that have become commonplace for consumers, such as chimes that remind drivers to use a seat belt, indicate that headlights have been left on, or doors have been left ajar.

The alarm system also has relevance beyond the summer months. Sensors and alarms in new cars will also prevent children from being left unattended in dangerously cold temperatures. The proposed technology would also alert pet-owners if their furry friend is about to be left behind.

The Senate introduced its version of the bill in May, which was sponsored by Senators Roger Wicker (R-MS), Richard Blumenthal (D-CT), and Maria Cantwell (D-WA). 

The National Consumers League once again commends Representatives Tim Ryan (D-OH), Jan Schakowsky (D-IL) and Peter King(R-NY) for their continued leadership on this issue and urge members of Congress to support this important children’s protection legislation.

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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.

Oral argument for ACA case will determine the fate of millions

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Nissa ShaffiOn Tuesday, July 9, the U.S. Court of Appeals for the 5th Circuit will hear oral arguments that will determine whether or not the Affordable Care Act (ACA) may be overturned. Throughout the course of its life, the ACA has been under the specter of possible repeal. While there have been piecemeal attempts to strike down the legislation over time, none have been as concerning as the most recent Texas v. United States case, which argues that since the individual mandate is no longer enforced, ACA  would be unconstitutional.

The individual mandate requires that most people maintain a minimum level of health insurance or be subject a financial penalty. In 2017 however, the Tax Cuts and Jobs Act (TCJA), set the individual mandate to $0 as of 2019. As a result of this ruling, the Texas v. United States case was filed by 20 Republican state attorneys general and governors. The plaintiffs argue that the ruling rendered the individual mandate futile, as it no longer produces revenue for the federal government, and since Congress declared the individual mandate to be “essential” when enacting the ACA, this would now make the entire law invalid.

In an ideal situation, the court would maintain the ACA as it exists today, absent the individual mandate. If the ACA is repealed along with the protections that come with it, close to 20 million people would lose their health coverage. Those affected will include mostly low-income adults and children with chronic or pre-existing conditions, dependent adult children ages 26 and younger, Medicare and Medicaid enrollees, employer and employee groups, and more.

Repealing the ACA would jeopardize Medicaid expansion, further burdening uncompensated care and provider reimbursement. In addition, repealing the ACA would increase health care costs among the uninsured by $50.2 billion, result in more than 9 million people losing federal subsidies to purchase health insurance via the marketplace, and would endanger consumers’ ability to obtain essential health benefits.

California’s Attorney General, Xavier Beccerra, is leading a coalition of 21 Democratic attorneys general who have intervened to defend the ACA. Advocates interested in joining these efforts can contact izzy@xavierbecerra.com – please do so and sign the petition by July 14. In addition, organizations can participate in the TXvUS Tweetstorm to express their concerns regarding this case, using the hashtags #TXvUS and #WhatsAtStake, on July 9th at 2 pm EST/ 11 am PST.

NCL is a zealous supporter of the ACA and notes that it is still the law of the land. We are following the developments of this case closely and will continue to fight for access to affordable healthcare for all Americans. For more information on developments of this case, please click here.