NCL applauds Congressional oversight of the live event ticketing industry

/in , , , /by

November 22, 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) the nation’s pioneering consumer and worker advocacy organization, today applauded the House Energy and Commerce Committee’s bipartisan oversight of the live event ticketing industry. The committee’s decision to launch an investigation into the live event industry’s opaque ticketing practices represents an important step forward in empowering fans by providing the transparency needed to encourage competition and fix the broken live event ticketing industry.  

The following statement is attributable to John Breyault, Vice President of Public Policy, Telecommunications and Fraud at the National Consumers League:

“In the absence of competition in the primary ticket market, consumers are forced to deal with a litany of unfair trade practices that create a rigged game. This includes secret holdbacks that trick fans into paying more for tickets by creating a sense of false scarcity and outrageous service fees which are often not disclosed until near the end of the purchase process. Today’s bipartisan oversight of the ticketing industry is a positive step towards restoring sanity and fairness into the live event marketplace.

Oversight alone, however, will not be enough to fix a rigged live event ticket market. Legislative action is sorely needed. Fortunately, the Better Oversight of Secondary Sales and Accountability in Concert Ticketing Act of 2019 (“BOSS ACT”), which is currently pending in both chambers of Congress, will provide a comprehensive fix to the ticketing industry. This bill will end the use of deceptive holdbacks and ridiculous undisclosed fees. It will also require ticket sellers to be upfront on whether they are affiliated with a venue and ensure that ticket holders can sell or give their ticket away as they see fit.”

###

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.

NCL: Cars need to come with data deletion buttons to enhance consumer privacy protections

/in , , , , , , , , , , /by

October 3, 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, America’s pioneering worker and consumer advocacy organization, today called on Congress to take steps to rein in car manufacturers’ data collection practices and ensure that consumers have a mechanism to easily delete personal information collected about them by their vehicles.

Thanks to a proliferation of sensors, cellular connectivity and powerful in-car infotainment systems, modern cars can reportedly generate 25 gigabytes every hour and 4,000 gigabytes of data per day. In its new white paper, the consumer group examined the vast scope of personal information being collected about drivers by automobile companies to power a vast data engine that could be worth $750 billion by 2030.

“Every time a consumer gets in a car — whether it’s a vehicle she owns, rents, or rides in – huge amounts of personal data get shared with car companies with practically no oversight or consumer protections,” said NCL Executive Director Sally Greenberg. “We want to shine a light on car companies’ data practices and encourage Congress to create common-sense rules of road for this growing marketplace.”

The NCL white paper examines several existing laws and proposed bills to offer a framework to legislators for steps they can take to better protect the privacy and data security of the driving public. In particular, NCL is urging Congress to mandate that car manufacturers include an easy-to-use data deletion functionality in all new cars to help consumers take control over their in-car data.

“Consumers just want to get from point A to point B safely,” said Greenberg. “While the data generated by our cars can help fuel innovation in the auto industry, that shouldn’t come at the expense of our privacy. Consumers are looking to Congress to take the lead and ensure that car company’s data collection practices have some sensible guardrails.”

Read NCL’s new white paper 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.

DOT inaction leaves kids at risk, NCL tells Congress

/in , , , , , , , /by

September 26, 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, today called on the House Aviation Subcommittee to compel the Department of Transportation (DOT) to follow through on its Congressionally-mandated passenger protection rulemakings.

The Federal Bureau of Investigation recently warned that in-flight sexual assaults have increased by 66 percent and that children as young as 8 have been victims of such crimes in the air. New data uncovered by Consumer Reports found that children as young as two years old and kids who have autism or who suffer from seizures have been separated from their parents on airplanes. Airlines have pressured parents to pay expensive seat reservation fees or buy priority board passes so that they can be sure to sit with their small children. Incredibly, the DOT earlier this year decided that creating a consumer education website would be sufficient to fulfill Congress’ intent that it act to ensure that families can sit with their young children.

“How many children will have to be assaulted on aircraft before the DOT acts?” asked John Breyault, NCL’s vice president of public policy, telecommunications and fraud at a House Aviation Subcommittee hearing today. “The DOT’s inaction on this issue has put children at greater risk. Congress should demand answers from the DOT on the process it used to determine that it should do nothing substantive on this important children’s safety issue and mandate that the agency follow through on Congress’ clear intent.”

Read Breyault’s full testimony here.

The consumer group also highlighted the Federal Aviation Administration’s (FAA) inaction on setting minimum seat size standards despite a looming deadline to do so. The FAA has actively. The FAA is required to issue regulations no later than October 2019, yet consumer groups have seen no indication that the agency is prepared to initiate such a rulemaking. Instead, the FAA has actively resisted judicial efforts by consumer advocates pressing it to take action on the important safety issue.

“Congress must not allow the FAA to simply adopt whatever inhumane seat size standard the airline industry favors,” said Breyault.

Breyault also testified about the impact of a lack of action by the DOT on Congressional mandates related to fee refunds, denied boarding (“bumping”), and the availability of fare, fee, and schedule data.

“The DOT’s actions and inactions on important rulemakings paint a picture of an agency that places consumer protection and consumer safety at the bottom of its list of priorities,” said Breyault. “It is imperative that Congress act to ensure that its mandates are not unduly delayed, or worse, ignored completely.”

###

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 groups applaud congressional action to improve live event ticketing marketplace

/in , , , , , , , , /by

September 20, 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—Today, the National Consumers League (NCL), along with seven other leading consumer and public interest groups, sent a letter to Congressmen Bill Pascrell (D-NJ) and Chairman Frank Pallone (D-NJ) and Senator Richard Blumenthal (D-CT) to applaud the lawmakers’ leadership in fixing the opaque live event industry by reintroducing the Better Oversight of Secondary Sales and Accountability in Concert Ticketing Act of 2019 (BOSS ACT). 

The following statement is attributable to Brian Young, public policy manager at the National Consumers League: 

“Unchecked consolidation in the live event industry has led to an opaque ticket marketplace that is rigged against consumers. In addition to undisclosed holdbacks designed to create a false sense of ticket scarcity, consumers are forced to grapple with a litany of fake websites which pose as legitimate box offices, and ridiculous fees that increase the cost of a ticket by an average of 27-31 percent. These outrageous fees typically prevent comparison shopping as they are often not disclosed until near the end of the purchase process. Likewise, despite the passage of legislation in 2016 which banned the use of ticket–buying BOTS, consumers have witnessed an increase of illegal ticket-buying bot usage of nearly 17 percent.  Fortunately, Congressman Bill Pascrell, Congressman Frank Pallone, and Senator Richard Blumenthal are working to bring transparency and competition back into the live event ticket marketplace. Today’s letter from 8 leading consumer advocacy groups applauds their efforts.” 

To add transparency to the live event ticketing marketplace and empower consumers to make informed purchasing decisions, the BOSS ACT would: 

  • Prevent primary and secondary ticket marketplaces from slamming consumers with hidden fees during checkout process; 
  • Prohibit scalpers from impersonating venues’ and teams’ websites to charge higher prices for less-desirable seats; 
  • Require primary ticket sellers to be honest about the number of tickets they plan on selling; and
  • Require the Federal Trade Commission (FTC) to identify ways to improve enforcement against illegal ticket-buying bots. 

To read the full letter, and learn more about the BOSS ACT, click here. 

###

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.

Calling an end to the health and humanitarian crisis at the border

/in , , , , , /by

Nissa ShaffiFlorence Kelley, first general secretary of the National Consumers League (NCL), was a pioneer in progressive social reform during a time in our nation’s history that was defined by mass immigration and egregious health violations. 120 years later, we bear witness once again to the unconscionable transgressions occurring in migrant detention centers across the border with regards to immigrant rights and access to health care. 

At this very moment, people who are exercising their legal right to seek asylum, according to international and U.S. law, are being systemically dehumanized. The atrocities occurring at our border completely tarnish the social protections that NCL has historically fought to solidify.

On July 10, the House Oversight Committee held a hearing to examine the humanitarian crisis at the border. The investigation followed the release of a July 2 report by the Office of Inspector General (OIG) detailing the dangerous and unsanitary conditions migrant detainees are experiencing at Custom and Border Patrol (CBP) and Immigration Customs Enforcement (ICE) facilities.

Images of children sprawled across cold concrete floors in overcrowded holding cells, wrapped in nothing but flimsy mylar blankets, prompted members of Congress, immigration lawyers, and physicians to visit various migrant detention centers throughout Texas to witness the matter firsthand.

Visitors noted a stench that could be detected immediately upon entry into the facilities, which was attributed to detainees being sardined into holding cells, in conditions that have been classified as inhumane and in violation of international law. A majority of detainees have been denied access to basic toiletries like soap and toothbrushes to help them maintain their hygiene. Additionally, individuals have not been able to shower in weeks, are sleep deprived, and are housed in frigid temperatures in rooms that have been given the apt moniker of the “ICE Box.” Many migrants have claimed that they were wearing the same soiled clothes that they wore during their long passage into the country.

These facilities were not designed to house migrants for prolonged detainment. Regulations prohibit the detention of detainees for longer than 72 hours, yet OIG reported that migrants had been held indefinitely, some even as long as several weeks. The unsanitary conditions prevalent in the detention centers have resulted in outbreaks of the flu, lice, shingles, scabies, and chickenpox. The processing centers in the facilities are housed beyond infrastructural capacity, leading border officials to take desperate measures to hold detainees in cages and under overpasses. These dangerous conditions will inevitably advance the spread of disease, endangering the lives of detainees as well as the general public who will come into contact with CBP and ICE agents.

These facilities are privatized, for-profit migrant detention centers that function outside the purview of federal oversight and accountability. Shareholder interests call for incentivized cuts to medical staffing, which as a result, has led to cruel and negligent practices that have encouraged the spread of disease, the proliferation of trauma, and the violation of human rights.

NCL calls on Congress to address the harrowing health and human rights violations taking place at our borders. NCL strongly advocates for a principled, comprehensive immigration reform that treats all immigrants with respect and dignity, no matter their legal status in the United States. NCL’s immigration policy advocates to:

  • keep families together;
  • ensure a humane pathway to citizenship and builds upon the success of Deferred Action for Childhood Arrivals (DACA) to incorporate young immigrants into mainstream society; and
  • ensure effective enforcement that protects our borders, fosters commerce, and promotes the safe and legitimate movement of people and goods at our ports of entry.

To learn about NCL’s immigration policy, click here.

The National Consumers League calls on lawmakers to work together to enact humane immigration policy reform that genuinely encompasses the promise of American values. Congress must act swiftly and in the best interest of migrants detained to collectively bring an end to this humanitarian crisis.

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

/in , , , , /by

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.

DC takes lead in fight against deceptive hotel resort fees

/in , , , , /by

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

###

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 role of technology in meeting consumer demands for product info – National Consumers League

/in , , , , , , , /by

Entering the grocery store, more than 40,000 products are right at your fingertips. As our Food Policy Fellow Haley Swartz has written about previously, choice overload and the “tyranny of too much” are increasingly common for consumers in grocery store aisles.

In an age when nutrition, health, and product safety are major consumer priorities, it becomes increasingly important to know what are in the items you purchase, and how they compare to the many other options on the grocery shelf.

Transparency itself is in high demand, as some have even called it the must-have ingredient for successful food companies in the modern era. Substantial consumer research data also indicates consumer demand for industry transparency, particularly in food and beverage manufacturing. The 2016 Label Insight Food Revolution Study found that 71 percent of consumers believed product transparency influences their purchasing decisions at the grocery store. A July 2017 survey found even more striking results, that 70 percent of purchases were influenced by transparency content.

A more recent survey from May 2018 found that if consumers were provided with additional information about a product, 80 percent said they would be more likely to buy it. In fact, more than two-thirds of respondents said that their interest about the information on product labels has increased over just the past two years.

Shoppers across the country are hungry for detailed information about what is in a product, why it is there, how it is produced, and what impact it has on the environment and their health. This call for more product information could be a result of the increasing complexity of food manufacturing, occurrence of allergies in the United States, and heightened awareness about the effect food has on our health.

A variety of tools aim to help anxious consumers wade through the noise to find the information they seek. But product packaging is becoming increasingly complex, enough so that some have called it a “competitive piece of real estate.” Only some of the information consumers want can be available directly in sight during grocery shopping experiences or when they are at home making out their shopping lists.

One tool that answers this question is SmartLabel, a digital disclosure tool which makes more information than can ever fit on a label available to consumers. SmartLabel works using a smartphone to scan barcodes or QR codes on food, beverages, personal care, and household products in the grocery store. Once the barcode is scanned, a SmartLabel website page provides detailed information about a range of things: ingredients, nutritional facts, allergens, usage instructions, third-party certifications, such as Kosher, and other information such as whether a food contains genetically modified organisms (GMOs). The information can also be found by going to www.smartlabel.org on a computer while you’re at home.

As of June 2018, SmartLabel is being used on nearly 28,000 food, beverage, personal care and household products in grocery stores, with many more products on the way.

The National Consumers League food policy team applauds the grocery manufacturers and retailing industry for responding to consumer demand and working to create a way for consumers to find more transparent information about the products they are purchasing. We hope that the industry will continue to roll out similar initiatives that promote the best interests of consumers and respond to demand in the marketplace.