Flying high on consumer protections: Transforming air travel

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Even as the widespread availability of air travel has become one of the hallmarks of modern civilization, frequent negative passenger experiences have become one of modernity’s most familiar headaches. From impromptu conversations I’ve had while waiting for a flight, to formal complaints submitted to the Department of Transportation, where I serve as Secretary, I have heard countless stories of frustrating experiences that range from irritation or inconvenience to serious harm and profound violations of passenger rights. These stories, coupled with a belief that air travel can and should be a consistently better experience, have propelled us during this Biden-Harris Administration to commit ourselves to the largest expansion of passenger protections and airline enforcement in the Department’s history.

The strides we have made thus far, and they are substantial, are a credit to the civil servants of our Department and the leadership of our Administration. They also reflect tireless advocacy and important insights from pro- consumer organizations like the National Consumers League (NCL).

NCL has been protecting the interests of consumers for 125 years, and in recent years, the organization has been a tremendously important voice in the effort to ensure airlines treat their customers fairly. Recently, these contributions have included the service of NCL’s John Breyault as the consumer representative on the Department’s Aviation Consumer Protection Advisory Committee.

In recent years, we have proudly delivered a number of important victories for consumers:

● Since President Biden took office, we have increased oversight of the airline industry and have been holding airlines accountable when they fail consumers. This has resulted in securing nearly $4 billion in refunds and reimbursements owed to airline passengers.

● The Biden-Harris Administration issued a final rule, which was then fortified by the Federal Aviation Administration (FAA) Reauthorization Act, to make it easy for consumers to obtain cash refunds when owed. If an airline cancels or significantly changes a flight, passengers are now entitled to an automatic refund within seven business days for credit card purchases if the passenger is not offered or does not accept alternative transportation or travel credit. We have made good on the principle that consumers should not have to navigate a patchwork of cumbersome processes to request and receive a refund. No more searching through airline websites to figure out how to make the request or being misled to accept a travel credit when you are entitled to a full refund.

● Another final rule we issued protects consumers against costly surprise airline junk fees. It requires airlines and ticket agents to tell consumers up front about the fees they charge for transporting bags and canceling or changing a reservation. I did not expect the concept of providing customers with the information they need to make an informed decision to be controversial, but the airline industry has decided to challenge this rule in court rather than make the necessary disclosures to their customers. We will continue to defend in court a rule that we view as commonsensical and that is expected to save consumers more than $500 million every year.

● We have also proposed a new rule that would ban airlines from charging junk fees to seat families together on a flight. Today, many airlines still don’t guarantee family seating, which means parents face concerns that they may have to pay extra just to be seated with their young child. Flying with children is already complicated enough without that added uncertainty, so we are acting to address this.

We are proud of our efforts to date, and the bipartisan FAA Reauthorization Act signed by President Biden earlier this year builds further on our work to improve the travel experience for airline passengers. But much work remains to be done. Good policy, and strong advocacy for consumers, will matter more than ever in the years ahead.

I want to congratulate NCL on its 125th anniversary. I look forward to continuing to work alongside NCL towards our shared goal of making aspects of everyday life, like air travel, more affordable, more manageable, and less stressful for American consumers.

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Pete Buttigieg is the Secretary of the U.S. Department of Transportation.

NCL applauds CFPB final rule on overdraft fees

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December 12, 2024:  NCL Applauds CFPB Final Rule on Overdraft Fees

Contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

Washington, DC— Consumers across the U.S. burdened by abusive overdraft fee practices will receive some relief after today’s announcement that the Consumer Financial Protection Bureau (CFPB) has finalized its overdraft rule. The rule will curb many large banks’ fees from $35 to approximately $5, and is estimated to save American consumers up to $5 billion annually.

The National Consumer League (NCL) applauds the CFPB’s rule as it will prevent big banks and credit unions with more than $10 billion in assets from charging junk overdraft fees that burden families with hundreds of dollars a year in unfair charges and push marginalized communities out of the banking system. The rule will push banks to offer straightforward, affordable forms of coverage protection instead.

“Predatory overdraft fees disproportionately harm communities of color and low-income families, but no one is immune to the damaging effects of these exploitative practices,” says Sally Greenberg NCL’s CEO. “By finalizing its overdraft rule, the CFPB is standing up to big banks, protecting American consumers and their hard-earned money.”

The CFPB’s action to protect consumers provides clear rules of the road to ensure consistency and clarity regarding overdraft products. The final rule requires financial institutions with over $10 billion in assets to choose from one of three options for overdraft fees:

  1. Cap fees at $5 to cover the actual costs to oversee an overdraft program.
  2. Charge fees based on actual costs and losses as a service, rather than a profit center.
  3. Treat overdraft coverage like loans, with disclosures, opt-in options, and payment flexibility.

Read the comments submitted by NCL and 143 organizations submitted in support of this rule here.

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Protecting consumers from junk fees and unfair pricing

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Fighting to lower costs for Amer-icans is at the heart of President Biden’s economic agenda—just as it is for the National Consumers League (NCL). The last few years have been especially challenging for a lot of families, as the pandem-ic-era disruptions and Putin’s war have driven up costs in every part of a household budget, from rent to groceries to childcare.

Since taking office, President Biden has called on big corporations to pass along savings to consumers; secured historic legislation lowering the costs of prescription drugs, childcare, utility bills, and health insurance; directed his Cabinet to use every administrative tool to lower costs; and gone after hidden junk fees in nearly every area of a family’s budget—from banking overdraft fees and credit card late fees to attending live events. 

These junk fees are everywhere, whether in the form of mysterious “resort fees” that are tacked onto bills for ordinary hotel stays or “processing fees” attached to concert tickets at the last minute. While hidden fees might not matter to the wealthiest Americans, they add up for hard-working Americans. Research shows that consumers pay upwards of 20% more when faced with junk fees than if they had access to the all-in price up front. It is hard for honest companies that show the all-in price up front to compete fairly when competitors post prices without the hidden fees that consumers will ultimately have to pay.

This is why the President launched a Strike Force on Unfair Pricing and has charged his Competition Council with eliminating junk fees across industries. The Administration has implemented rules against junk fees related to air travel, cable TV, broadband, and financial services—like banking overdraft fees. This is putting hundreds of dollars back into the pockets of American families.

The Administration’s actions to cut credit card late fees will save the estimated 45 million Americans who regularly incur these fees an average of $220 per year. Our actions to ban family seating fees could save a family of four $200 on a round-trip ticket. Another proposed action would require businesses—including online ticket sellers, apartment rental companies, hotels, and car rentals—to provide consumers with the all-in price up front and to disclose any mandatory fees, what they are for, and whether they are refundable. The Administration’s actions are projected to save Americans more than $20 billion annually—and we are just getting started.

So much of the progress we have made to crack down on junk fees would not be possible without the advocacy and research of organizations like the NCL, which has a distinguished 125-year history of advocating on behalf of American consumers.

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Lael Brainard is an economist who serves as the Director of the National Economic Council.

The push to advance consumer product safety

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I wholeheartedly subscribe to the philosophy espoused by Dr. Martin Luther King, Jr. when he said that “human progress is neither automatic nor inevitable” and that it is dependent upon “the tireless exertions and passionate concern of dedicated individuals.”

We do, in fact, live in a safer world today because of the tireless exertions and unyielding passion of Sally Greenberg and her team at the National Consumers League (NCL) to make it so. Even if achieving a lifesaving product safety improvement requires years of determined effort to overcome the fierce opposition of powerful interests, we have seen that NCL does not stop working until progress is achieved.

I first met Sally back in the late 1990s when I was the executive director of the Consumer Product Safety Commission (CPSC), and Sally had just come to Washington, DC, to work for Consumers Union, which is now Consumer Reports. People thought with our shared interest in consumer protection, we would get along well. It was the beginning of a beautiful friendship and a productive one.

For the past 15 years, we have been engaged in an effort to make table saws less dangerous. This is an issue of considerable and devastating magnitude. Each year, there are approximately 30,000 table saw accidents that require medical treatment, including about 4,000 amputations.

Dr. Steve Gass, an attorney, physicist, and amateur woodworker, came up with an idea to fix this. He developed a sensor and a braking mechanism that would stop a saw blade immediately upon contact with skin, rendering what would have been a severe laceration into the equivalent of a paper cut. At first, Steve and his partners tried to get the table saw industry to license his new technology and incorporate safety into the saws they sell to the public. But the industry wasn’t interested in spending money to protect their own customers. So, Steve and his partners founded a table saw company called SawStop. These saws have prevented tens of thousands of injuries in the 20 years they have been on the market.

Dr. Gass and his partners believed that safety technology should become the standard for the industry, but larger table saw manufacturers fought back and were successful in keeping federal action from occurring. Sally Greenberg, an amateur woodworker herself, heard about this on National Public Radio and got involved. It has been a difference maker.

NCL has been a key player in a decades-long campaign that involved, in part, bringing victims of table saw accidents face-to-face with members of Congress and CPSC commissioners. It’s one thing to hear about a problem. It’s quite another to meet a firefighter who could no longer hold a fire hose and couldn’t do the job he loved, a musician who could no longer play guitar and became suicidal, or a high school student who lost fingers in shop class.

It has been a long battle against an entrenched and powerful industry, but we’re now in the final stages of federal rulemaking that will not just mitigate the risk of table saw accidents, but virtually eliminate that risk. This would not have happened if not for Sally Greenberg and NCL.

But that is what NCL has done for 125 years. It’s thanks to this organization’s work, for example, that rearview backup cameras are now standard in cars. When the technology was developed, it was only available as an option for luxury vehicles. It took NCL and other advocates years of determined advocacy, pointing out that the lack of these cameras was leading to hundreds of deaths—mostly of small children—and thousands of injuries each year. Today, thanks to this work, cars are safer, and more children are alive.

Referring again to Dr. King’s words, we can never take progress for granted or assume it will occur, not without the determination of those who will never give up, no matter how fierce the opposition or how difficult the fight. That is Sally Greenberg and her team, and that is the history of the National Consumers League.

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Pamela Gilbert is a Partner in the law firm of Cuneo Gilbert & LaDuca LLP and previously served as Executive Director of the Consumer Product Safety Commission, Consumer Program Director at the U.S. Public Interest Research Group, and Executive Director at Public Citizen’s Congress Watch. 

FTC’s win in lawsuit against the makers of dietary supplement Prevagen

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December 11, 2024

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

Washington, DC – The National Consumers League (NCL) commends the Federal Trade Commission for its successful action against Quincy Bioscience, the makers of Prevagen, a supplement marketed as improving memory. By holding companies accountable for deceptive health claims, the FTC continues to protect consumers—particularly older Americans—from misleading marketing. Quincy Bioscience is just one of many dietary supplement manufacturers with a long history of making false claims, and we are so grateful to the FTC for pursuing this case successfully.  It should serve as a cautionary tale to all companies who engage in false and deceptive marketing and advertising.  This victory reaffirms the importance of rigorous scientific evidence in health-related advertising and demonstrates the FTC’s unwavering commitment to consumer protection.

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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 www.nclnet.org.

Leveling the playing field: Advocating for fair and competitive markets

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When the marketplace works as it should, it’s a wonderful thing for consumers. Free and fair competition generates value in the form of higher quality and affordable pricing. Consumers have the power of their pocketbooks to reward those companies that offer a square deal and force others to do better. It’s a system that works most of the time.

But sometimes markets run astray of these fundamental principles. They need a nudge, or something a little more forceful, to get back on track. This is where the National Consumers League (NCL) has been so valuable for so long, sounding the alarm when corporate malefactors distort our markets, and keeping the pressure on until solutions are put in place.

After having had the privilege of chairing the Federal Trade Commission (FTC), becoming affiliated with NCL seemed a natural step because of the similarities of the two organizations’ missions. The FTC is all about keeping the marketplace free of distortions such as monopolization and deceptive advertising that put consumers at an unfair disadvantage. And this is what NCL has been doing throughout its century-plus history, insisting upon corporate accountability, the preservation of competitive marketplaces, and strong and sensible regulations to protect consumers.

In recent years, we’ve seen NCL’s influential voice and determined actions come into play where they are needed most. For example:

● NCL has been a leading force in protecting consumers who buy tickets for live events, shining a spotlight on Live Nation- Ticketmaster’s monopolization of the marketplace and the excessive costs that lack of competition is imposing upon ticket buyers. NCL has been on the front lines of this fight, encouraging both legislation and antitrust action by the federal government.

● Lack of competition in the healthcare industry has been a long-standing problem and one that NCL continues to address. Not only have persistent hospital consolidations led to higher costs for patients, but the control of the prescription drug marketplace by three giant pharmacy benefit managers is pushing consumers to buy higher-priced medicines and denying them access to cheaper generics and biosimilars. NCL was a critical player in encouraging the FTC to open an investigation into pharmacy benefit managers practices.

● When this nation experienced an infant formula crisis from both contamination and shortage, NCL persistently cited the fact that only three manufacturers control 98% of the market—and that this problem could occur again if we don’t incentivize more companies to compete.

● And it was NCL that raised the alarm that more than 90% of the nation’s largest airports are dominated by just one or two airlines, leading Americans to pay higher travel costs than consumers in other countries. Also, NCL is out front urging the Department of Transportation to force airlines to be clearer and less deceptive about their add-on fees so that consumers can make apples-to-apples price comparisons.

These are just a few examples of the essential work that NCL is performing to complement the efforts of the FTC and other federal and state agencies and, in many cases, to draw the regulators’ attention to anticompetitive situations that warrant action.

As I mentioned in my board chair letter at the beginning of this book, NCL has done this with a staff and resources immensely smaller than the industries it’s working to hold accountable. NCL punches far above its weight. Impressive seems like an understatement in describing not only the great work NCL is doing on behalf of Americans today, but also the great work it has been doing over the past 125 years. NCL is truly a vigilant guardian, never leaving its post in making sure that marketplaces work as they should for generations of consumers.

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Jon Leibowitz is former Chairman of the Federal Trade Commission (FTC) and President of the National Consumers League Board of Directors. 

The U.S. Department of Education’s role is critical for consumers

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December 9, 2024

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

Washington, DC – The National Consumers League (NCL) rejects proposals to abolish the U.S. Department of Education (ED) and urges Members of Congress to strengthen the agency and its critically important role for consumers.

ED provides irreplaceable services for our public schools, alongside programs administered by other agencies like Head Start at the Department of Health and Human Services and the National School Lunch program at the Department of Agriculture. Despite making up only 3% of the federal budget, ED plays an outsized role in supporting K-12 and college education. Many underserved schools across the nation rely on ED’s Title I funding to continue operating a full range of educational and care services.

The US has long recognized a need for a limited but important federal role ineducation. Indeed, the original Department of Education was created in 1867 to collect information on schools and teaching that would help the States establish effective school systems. ED has evolved and changed with the times, but this early emphasis on getting vital information to teachers and education policymakers continues into the present.

Moreover, ED supports the essential role played by our public schools across America, schools that teach reading, writing, math and science, and are free to all students. The public school system represents the best of American democracy, fostering civic engagement and opportunity for all.

ED also pursues its twin goals of access and excellence through programs that cover every area of education and range from preschool education through postdoctoral research: including civil rights protections, Title IX rights, and  over $150 billion in new and consolidated loans annually. Without these loans, millions of students would not have access to higher education, so ED plays a truly essential consumer support role.

Finally, while ED’s programs and responsibilities have grown substantially over the years, the Department has the smallest staff of the 15 Cabinet agencies and has suffered funding cuts from Congress.

NCL calls on leaders across the political spectrum to reject proposals that would jeopardize the future of our nation’s children and instead focus on improving, refining, and supporting ED’s many positive contributions. NCL continues to advocate for policies to minimize the costs associated with seeking higher education, including legislation to bring the US in line with other developed nations by making college affordable for all.

Further reading

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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 www.nclnet.org.

Nancy Glick

Science should drive obesity care

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Nancy GlickBy Nancy Glick, Director of Food and Nutrition Policy

Today, over 100 million Americans, or 40.3 percent of adults, are living with obesity. This makes obesity the nation’s most widespread chronic condition, impacting many more people than diabetes, heart disease, stroke, certain cancers, chronic lung disease, and chronic kidney disease.

Yet, the sad fact is obesity still gets short shrift from health professionals and policymakers, even though it worsens the outcomes of more than 230 chronic diseases, is responsible for an estimated 400,000 premature deaths annually, and costs society an estimated $1.72 trillion a year.  As a consequence, only 10 percent of people with obesity get help from medical professionals, meaning the disease remains largely undiagnosed and undertreated.  This is occurring even though leading medical societies, including the American Medical Association (AMA), agree that obesity is a serious disease requiring comprehensive care.

It doesn’t have to be this way, which is why the National Consumers League worked with the National Council on Aging and leading obesity experts to issue the first Obesity Bill of Rights for the nation, which establishes eight essential rights so people with obesity will be screened, diagnosed, counseled, and treated according to medical guidelines. The goal is to put an end to the prejudice, incorrect beliefs about obesity, misinformation about treatment options, and outdated government policies that keep Americans from getting the same standard of care as those with other chronic diseases.

It will take time for the Obesity Bill of Rights to be incorporated into clinical practice, but specific rights already have significance. This is the case with new “blockbuster” injectable medicines called GLP-1 (glucagon-like peptide-1 receptor) agonists that work by mimicking a hormone produced in the small intestine to reduce appetite and slow digestion. Considered a game-changer in chronic obesity treatment, GLP-1s can help people lose up to 20 percent of their weight in 26 months. Thus, The Right to Coverage for Treatment reinforces calls from obesity specialists and medical societies for an end to exclusionary coverage policies by insurers and government agencies, so GLP-1 medications are a treatment option for adults at higher risk for living with weight-related diseases.

The major challenge has been the Medicare program, which excludes coverage for weight loss drugs due to past safety concerns that no longer exist today. But this could change. On November 26, 2024 the Centers for Medicare and Medicaid Services (CMS) published a proposed rule to allow seniors on Medicare and adults with Medicaid to have coverage for GLP-1s, thereby removing one of the biggest obstacles impeding access to quality obesity care in the country. If CMS’s proposal is finalized, the right to coverage for obesity treatment will become a reality for 7.4 million Americans – a good start in ensuring that people with obesity receive individualized quality care.

However, there is a lot of misinformation about GLP-1 medications, so The Right to Accurate, Clear, Trusted, and Accessible Information is also important, especially because disinformation is raising concerns among health professionals and the public. To date, the Food and Drug Administration (FDA) has approved four GLP-1 drugs based on evidence from large-scale clinical trials that these medicines are safe and achieve substantial weight loss. Yet, critics of these drugs assert these compounds cause severe side effects in all users, claim GLP-1 medications cause depression and suicidal thoughts, and allege the European Union (EU) is investigating this matter.

Responding to these allegations, experts in obesity treatment have assembled the facts from scientific journal articles and government reports. In furtherance of the right of the public to have this information, here is a summary of these findings:

  • Regarding the potential side effects of GLP-1s, several studies dispute the assertion that GLP-1 drugs cause severe adverse effects in all people. The consensus is that because these drugs slow stomach emptying, they can cause gastrointestinal problems that are usually mild to moderate and often go away within one to two months.
  • As to GLP-1s causing suicidal ideation, a recent commentary in JAMA Open Network concludes that large-scale studies do not show any increased risk of suicidal ideation while a 2024 study by researchers at Case Western Reserve University School of Medicine found that people taking a GLP-1 drug had a lower risk of suicidal thoughts compared to those taking a non-GLP-1 compound.  Similarly, the FDA published a detailed report in January 2024 also finding no association. FDA reached this conclusion after analyzing information on adverse events from the FDA Adverse Event Reporting System (FAERS), reviewing a meta-analysis of GLP-1 clinical trials data, and analyzing post-marketing data in the FDA’s Sentinel System.
  • Concerning the investigation by the EU’s European Medicines Agency, EMA’s Pharmacovigilance Risk Assessment Committee conducted a review of health records and issued a finding that no causal association exists between GLP-1s and suicidal thoughts or self-injurious actions.

The Rand Corporation coined the term “truth decay” to call attention to the blurring of the line between opinion and fact. It is important that “truth decay” not become a new obstacle to Americans receiving quality obesity care.

NCL applauds DOT advancement of delay compensation rules

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December 5, 2024

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

Washington, DC – Today, the U.S. Department of Transportation (DOT) issued an advanced notice of proposed rulemaking (ANPR) on compensating travelers for significant flight delays and cancellations. The Department is exploring remedies for passengers who are affected by disruptions that occur due to reasons within an airline’s control. Should DOT finalize a rule requiring cash compensation alongside food, lodging, and ground transportation when necessary, the U.S. would join other jurisdictions that have had similar regulations for decades, like the European Union and Canada.  

“Passengers shouldn’t bear the costs of poor business performance. Especially if you’re traveling with a family, expenses add up quickly for last-minute rebooking and accommodations when an airline has a meltdown,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “In taking this step, the Department is continuing its important work to protect airline travelers. We look forward to supporting DOT’s rulemaking effort.” 

NCL has supported a delay compensation mandate for years. In recent airline meltdowns, it has become commonplace for families to lose significant sums of money in out-of-pocket expenses, with reports highlighting losses of $2,000 to $7,500 in costs associated with rebooking flights, finding lodging, and contending with price gouging. U.S.-based air carriers already pay compensation for significant delays and cancellations when servicing certain overseas routes, like those in Europe, but do not provide those same protections when flying domestically.  

Additional reading: 

Consumer groups file amicus brief supporting DOT’s airline fee transparency rule 

NCL urges Congress to strengthen consumer protections against aviation cyber incidents, including delay compensation 

Advocates call on Biden Administration to act on airline passenger protection mandates 

NCL applauds Congress’s passage of aviation consumer protection improvements 

Full list of advocates’ legislative priorities for aviation consumer protection 

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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 www.nclnet.org.

Congress must protect consumers from PBM abuse

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By Sally Greenberg, Chief Executive Officer

The post-election lame duck session of Congress could be one of the most influential for consumers – if our elected officials are willing to act. As Americans struggle with high prescription drug costs, insurance middlemen pharmacy benefit managers (PBMs) siphon dollars from the drug pricing system into their own pockets. Two bills sitting in Congress aim to change this by increasing transparency, ensuring PBM rebates are passed directly to consumers, and disconnecting PBM profits from the price of medicines.

S. 3973: The Pharmacy Benefit Manager Transparency and Accountability Act, would require PBMs to pass on rebates from drug manufacturers directly to consumers, ensuring they benefit from cost savings at the point of sale. It also delinks PBM profits from drug prices, eliminating the incentive to drive up costs.

S. 3430: The Prescription Drug Price Relief and Consumer Protection Act establishes stronger regulations on PBMs, ensuring transparency in drug pricing and rebate negotiations, and making sure PBMs act in the best interests of consumers.

These bills will create a much fairer system, ensuring that savings reach consumers and medications are made more affordable. Congress must advance these bills this year to protect consumers from PBM exploitation now and lay the groundwork for additional healthcare reforms next session.

Although this session – and year – is coming to a close, meaningful healthcare reforms that directly benefit consumers can start now.