NCL urges House Transportation Committee to demand answers from FAA on aviation safety

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February 7, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — Today, the House Committee on Transportation and Infrastructure will hold a hearing focused on the need to enhance America’s aviation safety system. The committee calls the U.S. system a “gold standard” for the world. Unfortunately, the Federal Aviation Administration’s (FAA) previously sterling record in this area has been badly tarnished by the Boeing 737 Max scandal, operational meltdowns, and scary near-misses. 

In particular, Congressional leaders must hold the FAA accountable for its failure to implement statutorily-required minimum dimensions for passenger seats. For decades, air carriers have reduced seat sizes across all fare classes. The result is that millions of travelers must fly under conditions that the FAA’s own advisory has deemed unsafe.  

Fortunately, thanks to advocacy by NCL and other passenger rights organizations, momentum is growing for reform. In November, NCL along with a coalition of six public interest groups, filed comments with the FAA calling for a moratorium on airlines reducing seat sizes until the FAA can update its emergency evacuation standards. In December, Senators Baldwin and Duckworth introduced legislation requiring the FAA to update evacuation standards to reflect the modern cabin environment. 

The following statement is attributable to NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault: 

“Shrinking seats on airplanes have serious consequences, from impeding emergency evacuations to raising the risk of serious negative health effects. The FAA is more than three years overdue in complying with the law and addressing this problem. As the only agency in the nation responsible for aviation safety, the House Transportation Committee must ensure that the FAA does not continue to slow-walk critical aviation safety issues like setting minimum seat size standards.  

We are disappointed that the first hearing on this issue in the new Congress will not feature any witnesses representing those who are most directly impacted by such safety oversight – namely, passengers. Nonetheless, NCL urges Congress to use this opportunity to ensure the executive branch’s compliance with air safety mandates.” 

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About the National Consumers League (NCL)
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 https://nclnet.org.

Top Ten Scams Report: Consumers reported massive uptick in crypto-linked fraud losses in 2022

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February 6, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — Reports of scams tied to cryptocurrencies drove a significant increase in median losses in 2022, according to the National Consumers League’s annual Top Ten Scams report. The report, published annually, analyzed more than 3,500 consumer fraud complaints filed with NCL’s Fraud.org campaign last year. 

The report found that the median loss for investment frauds reported to Fraud.org was $18,700, compared to $1,750 in 2021. The complaints in this category frequently described schemes where victims were encouraged to put money into cryptocurrencies and cryptocurrency-linked investments that later turned out to be fraudulent. Such scams drove an increase in the median loss for all frauds reported to Fraud.org to $950, an eleven-year high. 

“Both median losses and the share of incidents reporting losses are up,” said John Breyault, NCL vice president of public policy, telecommunications, and fraud and the director of the Fraud.org campaign. “New technologies seem to be driving these trends, from crypto-related schemes to scammers using new technology to move victims’ money around.” 

Bank account debit, which includes peer-to-peer platforms like Zelle and Venmo, was the second most frequently mentioned way that victims reported sending money to fraudsters in 2022 (27.17% of complaints that included a loss). Compare this to 2021 when bank account debit was mentioned in 11.2% of complaints that included a loss. 

The top ten scam categories reported to Fraud.org in 2022 were: 

  1. Prizes/Sweepstakes/Free Gifts 
  2. Internet: General Merchandise 
  3. Phishing/Spoofing 
  4. Fake Check Scams 
  5. Investments: Other (incl. cryptocurrency) 
  6. Advance Fee Loans, Credit Arrangers 
  7. Friendship & Sweetheart Swindles 
  8. Family/ Friend Imposter 
  9. Computers: Equipment/Software 
  10. Scholarships/Grants 

“While we’re collecting data to better inform our efforts to combat fraud, we’re also aiding victims and connecting them with resources,” said NCL Consumer Services Coordinator James Perry. “It’s important to remember the person behind each report.” 

Notably, the share of reports involving romance scams declined by 31%. This trend may be attributable to last year’s significant media coverage of this type of fraud following the success of fraud-focused shows like “The Tinder Swindler” and “Inventing Anna.”  

“In real time, we are seeing the benefits of a national discussion around these types of fraud” said NCL Public Policy Manager Eden Iscil. “Having an open conversation about something as sensitive as romance scams helps to destigmatize the issue, provide space for victims to seek help, and put pressure on digital platforms to prevent misconduct.” 

To view the full 2023 Top Ten Scams report, click here. 

Methodology 

The National Consumers League Top Ten Scams report analyzed 3,503 complaints submitted by consumers to NCL’s Fraud.org campaign in 2022. This data is self-reported by victims and should not be considered a nationally representative sample. NCL shares complaint data with a network of law enforcement and consumer protection agency partners who combine it with other data sets to identify trends in fraud and build cases. 

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About the National Consumers League (NCL)
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 https://nclnet.org.

White House Competition Council announcement is a big deal

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By John Breyault, Vice President of Public Policy, Telecommunications and Fraud 

Ask almost any consumer and they will tell you that junk fees are one of the banes of their existence. Not only do these fees add often unexpected costs to the price of goods and services, but they also inhibit competition; contributing to higher prices, worse service, and poorer product quality. Add to this the lost time and aggravation that comes with fighting companies that try to charge these fees and we have a recipe for constant consumer frustration. 

Fortunately, the Biden Administration seems to be hearing these concerns loud and clear. Last week, the White House Competition Council announced a range of executive actions and legislative proposals targeting junk fees and competition concerns that NCL have made a priority for years. These actions build on commitments the Administration made last fall to go after junk fees and other anti-consumer practices.  

So, what is in this announcement for consumers? The short answer is quite a bit. 

First, the Consumer Financial Protection Bureau announced a new rulemaking to close a loophole in the law that allows banks to get away with charging outrageously high fees for late credit card payments. Thanks to this loophole, banks have been able to get away with charging late fees as high as $41. This is big money for the banks. In 2020, banks charged around $12 billion in such fees, representing more than 10% of all fees and interest revenue. Under the new rule, the maximum fee a consumer will be hit with will be $8. This change is expected to save American consumers as much as $9 billion annually. As far back as 2009, NCL was calling for legislation to protect consumers from these “gotcha” fees, so this announcement is great news.  

Second, the Department of Transportation (DOT) will soon propose a rule to prohibit airlines from charging passengers for the “right” to sit next to their young children. Separating children from their parents in the air not only creates safety risks in an evacuation scenario, but it puts kids at increased risk of sexual assault. Back in 2016, Congress directed DOT to review airline family seating policies and, “if appropriate” act. Under the regulation-averse Trump DOT, the agency did the minimum possible to comply with the law by creating a new consumer education web page that described airlines’ family seating policies. This week’s action, however, will ban family seating fees outright, fulfilling a demand that NCL and other advocates have worked towards for years. Thanks to this new rule, parents should soon be protected from having to choose between an affordable seat and their kids’ safety in the air. 

Finally, the Administration called on Congress to pass a Junk Fee Prevention Act to crack down on a range of anti-competitive junk fees. Fees targeted by the legislation would include: 

  • Cell phone and broadband early termination fees – These fees, which can exceed $200, lock consumers into service they may not want or no longer need for years. They also make it harder for new entrants in the marketplace to compete with the big wireless and broadband carriers. 
  • Live event tickets – For more than a decade, NCL has advocated for action to control the fees that can add 50% or more to the price of a concert or sporting event ticket. The Junk Fee Prevention Act would prohibit excessive fees, require that all fees be included in the advertised price, and mandate disclosure of ticket holdbacks that keep more than 50% of tickets for a typical event from ever making it to market. 
  • Hotel resort fees – Resort fees (also called “destination fees”) are increasingly used to hide the actual cost of a hotel room. Instead of being included in the advertised price of a room, sneaky hotel chains charge the fee when a consumer checks out. Not only does this cost consumers billions annually, but it also harms honest hotels that advertise the full price. Thanks to NCL’s advocacy, state and federal regulators have taken aim at these deceptive fees. Now it is time for Congress to step up. 

Taken together, this package of regulatory and legislative reforms show that the Biden Administration is putting companies on notice that their days of raking in billions in profits by nickel-and-diming consumers with unfair and deceptive fees are numbered. NCL, along with our allies in the consumer community, will continue to be on the front line to make sure the Administration and Congress follow through on these ambitious and long-overdue plans. 

Do children in America ever work in deplorable, dangerous, Dickensian conditions? The short answer is “yes.”

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Reid Maki is the director of child labor advocacy at the National Consumers League and he coordinates the Child Labor Coalition.

Most Americans are unaware that the U.S. still has child labor, but 2022 made it abundantly clear that we do, and stories in the news made it clear that conditions can be downright shocking. Here are 10 child labor stories or developments that indicate child labor in the U.S. is not something in the past. Through the Child Labor Coalition, which the National Consumers League founded in 1989, we bring together 39 groups to work collectively to reduce international and domestic child labor and to protect working teens from occupational dangers. Our top 2022 U.S. developments:

  • Minors found working illegally in Brazilian-owned JBS meatpacking facilities in Nebraska and Minnesota. Several children suffered caustic chemical burns, including one 13-year-old. The children worked on the killing floor in cleaning crews, toiling long nights in the graveyard shift and used dangerous pressure-washing hoses while they stood in water mixed with animal parts. Initially, the number of children numbered 31 in Nebraska and Minnesota, but U.S. DOL has suggested the number of illegally employed teens in processing plant cleaning crews may be much larger. The CLC has expressed concerns about teens illegally working in meat processing plants since a large immigration raid in Iowa in 2003 found 50 minors working illegally in the plant.
  • Teens found working in an Alabama factory that supplied parts to Hyundai. In July, labor officials found three siblings, aged 12, 14, and 15, working in an Alabama stamping plant that supplied part to the car manufacturer Hyundai. According to reports, a larger number of minors worked in the factory in recent years. The story drew enormous publicity because factory-based child labor in the U.S. has become rare.
  • The Wisconsin legislature passed a bill to weaken child labor laws by expanding the hours of teen work, which endangers children’s educational development and presents certain health risks. The CLC amplified the work of labor unions on social media, we also wrote a letter to Gov. Tony Evers, urging him to veto the proposed legislation, which he did in February. According to research, high school age workers who toil more than 20 hours a week get lower grades and have an increased risk of dropping out.
  • An estimated 300,000 children still work for wages in agriculture, performing backbreaking labor in searing heat. Currently, federal law allows children who are only 12 to work unlimited hours as long as they are working when school is not in session. Federal legislation which would protect child farmworkers, the Children’s Act for Responsible Employment and Farm Safety (CARE), H.R. 7345, would raise the minimum age of farm work from 12 to at least 14 and lift the age of hazardous work from the current 16 to 18—the same as all other sectors. CARE saw some promising developments in 2022, including the holding of a congressional hearing on the bill—the first since 2009. We also secured over 200 organizational endorsements for CARE and we worked with CLC-members Human Rights Watch, Justice for Migrant Women, and First Focus Campaign for Children to obtain 47 CARE legislative cosponsors.
  • The Children Don’t Belong on Tobacco Farms Act, H.R. 3865 –and its companion bill S.2044—would ban child labor on U.S. tobacco farms where children toil long hours and routinely suffer symptoms of nicotine poisoning such as vomiting, fainting, dizziness, headaches and nausea. In a desperate attempt to keep nicotine off their skin, many teen tobacco workers toil while wearing black plastic garbage bags with holes punched out for their arms and head. Some teens work at great heights and great danger in tobacco drying barns. In the U.S., you have to be 21 to buy cigarettes but at age 12, you can work on tobacco farms and suffer poisoning from toxic nicotine. In this congressional session, we helped secure 32 cosponsors for H.R. 3865—more than double the amount of cosponsors in the 116th.
  • Enforcement of domestic child labor laws in 2022 through mid-November saw an almost 40 percent increase in the number of child workers involved in a violation of child labor rules—nearly 4,000 children, according to reporting by com, using Department of Labor data. Nearly 20 percent of the violations involved teens performing hazardous work.
  • USDOL and state labor agencies frequently found child labor violations among fast food restaurants. Massachusetts Attorney General Maura Healey fined Dunkin’, the donut franchises, $145,000 for over 1,200 child labor violations in 14 stores. U.S. DOL found violations in 13 Pittsburgh area McDonalds restaurants in which teens worked too many hours or too late, as well as a case of a teen doing prohibited hazardous work
  • In September, Human Rights Watch, a CLC member, issued a child rights report card for all U.S. states related to child marriage, child labor, juvenile justice, and corporal punishment, and how well they meet the standards set by the Convention on the Rights of the Child. Alarmingly, only four states earned passing grades: 20 received an “F”; 26 received a “D”; four received a “C” and none received a “B” or and “A.”
  • In July, Massachusetts became the seventh US state to ban entirely child marriage. Like child marriage globally, U.S. child marriage has substantial health, educational, and financial impacts on teens who marry. Most states have broad exemptions that allow teens to marry with the approval of parents or the courts. Massachusetts joins six other states that passed legislation to end child marriage: New York, Delaware, New Jersey, Rhode Island, Pennsylvania and Minnesota. The CLC is a member of the National Coalition to End Child Marriage, headed by the NGO Unchained at Last.
  • The CLC and HRW held a series of meetings with Wage and Hour in 2022 to secure the reopening of the occupational child safety rules for agriculture called “Hazardous Occupation Orders.” These rules have not been updated for agriculture in roughly four decades despite many lessons-learned about farm injuries during that time. We also helped Rep. Roybal-Allard and Rep. David Cicilline (D-RI) draft a letter to DOL Secretary Walsh urging enhanced safety precautions. The letter had 47 congressional signatories.

White House “taking the gloves off” in latest competition push

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February 1, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. – The National Consumers League (NCL) today applauded the White House Competition Council’s announcement of a new slate of executive actions to protect consumers and rein in corporate power. NCL has long championed many of the solutions that the White House today supported, including prohibiting family seating fees on airlines, mandating all-in pricing and greater transparency in the live event marketplace, and getting rid of deceptive hotel resort fees.

The following statement is attributable to Sally Greenberg, Executive Director of the National Consumers League:

“More than 60 years ago, President Kennedy launched the modern consumer movement with a call to hold corporations accountable when they put profits over the public interest. We are thrilled today to see the Biden White House following in those footsteps. This Administration is taking the gloves off and putting corporate wrongdoers on notice that anti-consumer behavior will not go unchallenged. From airlines to banks to ticketing companies, businesses are leveraging their market dominance to squeeze every penny they can from hard-working families. We are thankful to have allies in the White House who are channeling consumers’ frustration into action.”

NCL has been pushing for reforms in the live-event ticketing industry for over a decade, including changes to the ticket purchasing process (some of which were adopted by the Competition Council) and the breakup of the Live Nation-Ticketmaster merger. In 2019, the League testified to Congress about the need for federal action to ensure that children are seated with their parents and caregivers without cost, something the Department of Transportation announced it would begin working towards today. Lastly, the Competition’s push to ban hotel resort fees and mandate all-in pricing echoes NCL’s previous calls on the matter.

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About the National Consumers League (NCL)
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 https://nclnet.org.