NCL supports President Biden’s nominee for Administrator of the Federal Aviation Administration

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October 3, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, D.C. – Today, the National Consumers League (NCL) urged the U.S. Senate to swiftly confirm President Biden’s nominee for Administrator of the Federal Aviation Administration (FAA), Michael G. Whitaker. Despite a growing number of problems under the FAA’s jurisdiction—including an alarming number of near-misses involving passenger aircraft—the Administration has lacked a Senate-confirmed Administrator for eighteen months. 

The following statement is attributable to NCL Chief Executive Officer Sally Greenberg: 

“The FAA has been without a permanent administrator for too long. Without strong leadership, the agency will struggle to fulfill critical consumer protection mandates, including Congress’s 2018 directive that the agency set minimum seat sizes on airplanes. The Senate should act to restore the full strength of the Administration and confirm Mr. Whitaker as FAA Administrator.”  

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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 nclnet.org.

NCL supports CFPB’s proposal to remove medical debt from credit reports

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September 28, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, DC – The National Consumers League (NCL) supports the bold proposal from the Consumer Financial Protection Bureau (CFPB) to remove medical bills from Americans’ credit reports.

According to a CFPB report released in March 2022, $88 billion of outstanding medical bills are currently in collections—affecting one in five Americans. Medical debt constitutes a majority (57 percent) of all collections on credit reports.

“This proposal will help families financially recover from medical crises and prevent debt collectors from coercing people into paying bills they may not even owe,” said Sally Greenberg, CEO of the NCL. “It will ensure that creditors are not relying on data that is often plagued with inaccuracies and mistakes.”

Approximately 20 percent of Americans report having medical debt, according to the March 2022 report, but previous research by the CFPB shows that consumers with medical debt generally paid back their loans or bills at the same rate as consumers with higher credit scores.

If finalized, the CFPB proposal will do the following:

  • Remove medical bills from consumers’ credit reports: Consumer reporting companies would be prohibited from including medical debts and collection information on consumer reports that creditors use in making underwriting decisions.
  • Stop creditors from relying on medical bills for underwriting decisions: The proposal would narrow the 2005 exception and prohibit creditors from using medical collections information when evaluating borrowers’ credit applications.
  • Stop coercive collection practices: As unpaid medical bills would no longer appear on consumers’ credit reports used by creditors in making underwriting decisions, debt collectors would no longer be able to use the credit reporting system as leverage to pressure consumers into paying questionable debts.

Greenberg added, “Medical debt is not caused by profligate spending. Americans incur this debt because of emergencies or because they are uninsured or underinsured. We believe that this proposed rule will allow consumers weighed down by medical debt through no fault of their own and help them to restore their access to sustainable credit.”

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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 nclnet.org.

 

NCL stands with Swifties in testimony before Congress

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September 27, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, DC – Testifying before a Congressional committee, the National Consumers League (NCL) today urged support for comprehensive ticketing reform legislation to fix a “rigged” live event industry. NCL, America’s oldest consumer and worker advocacy organization, described how the November 2022 meltdown of Ticketmaster’s ticketing system during the on-sale for Taylor Swift’s Era’s Tour exposed the “ugly underbelly” of the industry.

“There has never been a better time to reform live event ticketing,” said John Breyault, NCL’s Vice President for Public Policy, Telecommunications, and Fraud. “While the Taylor Swift meltdown may have been an anomaly, it exposed the ugly underbelly of a live event industry that is rigged to maximize profits for a select few and frustration for everyone else.”

Of the three event ticketing bills considered by the subcommittee, Breyault called the “BOSS and SWIFT ACT of 2023,” sponsored by Representatives Bill Pascrell (D-NJ9), Frank Pallone (D-NJ6), Julia Brownley (D-CA26), and Delegate Eleanor Holmes Norton (D-DC) “the single most comprehensive pro-fan and pro-competition ticketing legislation before Congress.” NCL supports the BOSS and SWIFT ACT because it includes a range of ticket industry reforms, including requiring better disclosure of ticket refund policies, shedding daylight on ticket “holdbacks” that siphon tickets away from the average fan, clamping down on unauthorized speculative ticket sales, and helping protect consumers from Ticketmaster’s anti-competitive efforts to extend its monopoly into the secondary ticket market.

NCL also voiced support for two other ticketing bills: Representatives Gus Bilirakis’ (R-FL12) and Jan Schakowsky’s (D-IL9) TICKET ACT, which would mandate all-in pricing of tickets and better disclosure of speculative ticket sales, as well as draft legislation that would ban speculative ticketing outright, while carving out ticket-buying services.

In addition to the ticketing bills, NCL testified in support of Representative David Valadao’s (D-CA22) Online Dating Safety Act of 2023 which would notify users of online dating apps that someone they messaged on the app was banned; Representative Young Kim’s (R-CA40) No Hidden Fees on Extra Expenses for Stays Act, which would mandate all-in pricing in the hotel and short-term lodging industries; and Representative Lisa McClain’s (R-MI9) and Representative Mary Peltola’s (D-AK) WIPPES Act, which would require manufacturers of cleaning wipes to label their cleaning wipes as non-flushable in order to protect wastewater infrastructure and consumers’ plumbing systems from damage.

NCL’s written testimony is available here.

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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 nclnet.org.

NCL supports updated merger guidelines

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September 20, 2023

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

Washington, DC – The National Consumers League sent a letter in support of the draft merger guidelines that the U.S. Department of Justice  and the Federal Trade Commission proposed in July of this year. The guidelines reflect an approach to antitrust enforcement that is grounded in statute and judicial precedent and are a significant improvement from the narrower focus of previous enforcement regimes. By centering market competition as the goal of antitrust law, the DOJ and FTC can appropriately act to protect consumers and workers when mergers pose a threat to the public. 

The full letter can be found here.

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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 nclnet.org.

Unveiling the flaws in the 340B Drug Pricing Program: Hospitals, medical debt, and consumer struggles

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Sally Greenberg

By Sally Greenberg, Chief Executive Officer

In 1992, Congress created the 340B Drug Pricing Program to help ensure vulnerable patients would be able to access medications they need but may not be able to afford. This program provides steeply discounted drugs to health care providers – mostly hospitals – serving low-income patients with the intent that the providers would pass those discounts along to patients. Unfortunately, that is not what is happening. The National Consumers League (NCL) is increasingly concerned about this program, especially as it relates to hospitals’ abusive and aggressive debt collection practices, and how those practices lead to consumer medical debt. A recent letter from a bipartisan group of Senators underscores hospitals’ role in this growing problem.

We find it particularly troubling that many hospitals benefiting from 340B are not only nonprofit entities but are designated as charity hospitals – supposedly caring for low income and indigent patients. A 2022 report by the Alliance for Integrity and Reform of 340B found that charity care spending for nearly two-thirds of 340B hospitals was less than the national average for similar hospitals. Further, a December 2019 Government Accountability Office (GAO) report found that “some nongovernmental hospitals that do not appear to meet the statutory requirements for program eligibility are participating in the 340B program and receiving discounted prices for drugs for which they may not be eligible.” One report found that 82% of nonprofit hospitals spent less on community programs than the value of their tax exemptions.

Consumers are not benefiting from the 340B program in the way Congress intended. A patient whose income is above 200 percent of the Federal Poverty Level (FPL) is expected to pay full price for a drug they receive at the hospital, even though the care center from which they are “buying” the drug did not pay full price for it. Hospitals participating in the 340B program saved an average of $11.8 million per year, according to a 2019 report from Beckers Hospital Review, and multiple studies have found that a majority of hospitals markup medicines between 200-500 percent. Under the current program, an individual who makes $29,200 per year has to pay that price.

What is even more alarming is the fact that if a patient can’t pay, the hospitals that have benefited enormously from discounted drugs intended for vulnerable patients are aggressively suing these same patients. This illustrates a major disconnect between the intent of the 340B program and the way it is operating today.

While estimates differ, medical debt is believed to cause more than 60 percent of bankruptcies in America. Most consumers facing medical debt did not end up in that situation because of bad decisions or profligate spending. Most have had some kind of injury or unexpected illness and don’t have insurance – or don’t have sufficient insurance – to cover their medical and hospital costs. Patients who need financial assistance should be processed when entering the hospital for medical care. Many are not given the chance to do so and as a result, can be sued for debt after services are rendered. Medical debt collection practices are debilitating for low-income consumers and can destroy their credit ratings, subjecting them to subprime rates and a never-ending spiral of debt.

Even if patients don’t start out poor, because of excessive fees, penalties, and other costs added onto what may or may not be actual medical debt on the part of patients, aggressive debt-collection practices can leave them destitute. Many don’t have funds to hire a lawyer, and if summoned, they often don’t know they need to actually go to court; in fact, sometimes debt collectors advise them not to show up in court. As a result, default judgments are filed against them, leading to garnishments of wages, and liens on homes, cars, and other properties. In 2019, the Journal of the American Medical Association studied the garnishment of wages by hospitals in the state of Virginia and found that 71% of the hospitals were nonprofit and the gross mean annual revenue of hospitals engaged in garnishments was $806 million, with 8,399 patients having wages garnished.

Below are just a few stories illustrating hospitals’ medical debt collection practices playing out in communities throughout the nation.

  • A woman in Knoxville, Tennessee, was diagnosed with cancer and underwent surgery and chemotherapy. Even though she had health insurance, she was left with almost $10,000 in medical bills that she couldn’t pay. Financial counselors told her she couldn’t schedule cancer checkup appointments with her doctor until she has a plan to pay her bills, according to a December 2022 story by NPR.
  • As reported by the Washington Post in May 2019, an investigation by the Baltimore Sun found that 46 hospitals in Maryland filed more than 132,000 lawsuits for unpaid medical bills from 2003 to 2008 and won at least $100 million in judgments. In some cases, hospitals added annual interest at twice the rate permitted for other types of debts or placed liens against patients’ homes.
  • The Washington Post reported in 2019 that the University of Virginia (UVA) Health System sued former patients more than 36,000 times for over $106 million over a six-year period. During that time, UVA’s Medical Center earned a $554 million profit and held stocks and other investments worth $1 billion. One of the patients the UVA Health System sued was Heather Waldron. Following emergency surgery and other treatment in 2017 to address an intestinal malformation, Waldron received a bill from the University of Virginia Health System for $164,000, more than twice what a commercial insurer would have paid for the care. When she was unable to pay, the UVA Health System pursued her with a lawsuit and a lien on the home she shared with her then-husband and five children. In the fall of 2019, the family lost their home, and the “financial disaster” contributed to Waldron and her husband divorcing earlier that year.

We support the critical role hospitals play in communities across the country and understand many dutifully provide charity care to those who cannot pay. However, we believe that if hospitals are designated charity entities and are receiving 340B discounts, they should be required to prove that those discounts have been passed along to patients. The current situation is unacceptable and merits an in-depth investigation and tightening up of the 340B rules. Charity hospitals should not be able to both claim 340B status and drag the very populations they are pledged to serve into debt collection proceedings, taking their homes, their cars, and their possessions in the process. Changes need to be made to ensure that only eligible hospitals are allowed to participate in the 340B program and that the deep discounts for medicines are passed along to patients, as Congress intended.

National Consumers League urges Ticketmaster to refund Springsteen fans

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September 11, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, D.C. – The National Consumers League (“NCL”) today urged Ticketmaster to immediately offer refunds to fans who purchased tickets to Bruce Springsteen’s postponed concerts. Due to illness, the rock icon recently announced indefinite postponements of the remainder of the concerts currently scheduled for September. According to Ticketmaster’s Purchase Policy, consumers will only be able to obtain refunds when the postponed concerts are rescheduled for a date to be determined.

The following statement is attributable to NCL Chief Executive Officer, Sally Greenberg:

“Like millions of other fans, our best wishes go out to Bruce Springsteen in light of his pressing medical issues, and we wish him a speedy recovery. Throughout his career, he has put his fans first. However, given the announcement that multiple upcoming concerts have been postponed to a date to be determined, we are concerned that consumers are not being given the option by Ticketmaster to obtain refunds for their tickets. Due to Ticketmaster’s policies, millions of dollars in fans’ funds are stuck in limbo, potentially for months or even longer.

We understand that many of Springsteen’s fans may opt to hold onto their tickets and will plan to see The Boss when his concerts are rescheduled. Until then, Ticketmaster will almost certainly be earning interest on fans’ funds that are locked up due to the company’s refund policy. Essentially, due to its policies, Ticketmaster is forcing fans to give the company an interest-free loan for an indeterminate period. It is a bedrock consumer protection principle that when a consumer does not get a product she paid for, a prompt refund should be issued. Ticketmaster should give consumers the option to immediately obtain refunds not just for Bruce Springsteen’s concerts, but for all postponed events going forward.”

 

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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 nclnet.org.

NCL urges Senate committee to pass the College for All Act

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August 28, 2023

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

Washington, DC – Today, the National Consumers League (NCL) urged the U.S. Senate Committee on Finance to favorably report the College for All Act of 2023.

” The National Consumers League1 (NCL) urges the U.S. Senate Committee on Finance to favorably report S.1963, or the College for All Act of 2023, without delay. The College for All Act would transform the nation’s system of higher education by allowing millions of students to pursue college degrees that they otherwise could not afford. Additionally, it would prevent student debt from continuing to burden future attendees of higher learning, a significant issue currently affecting graduates, individuals with partial educational attainment, and parents of students.” 

The full letter can be found here.

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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 nclnet.org.

NCL response to the Request for Information regarding FDA regulation of CBD

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August 25, 2023

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

Washington, DC – On August 17, the National Consumers League responded to the Request for Information regarding FDA-Regulation of CBD.

“In 2019, in response to the proliferation of unreviewed and untested CBD products, NCL identified the need for greater education among consumers about CBD and better enforcement of regulations in the CBD marketplace. NCL created Consumers for Safe CBD to address the need, champion the rights of consumers, and call on government and industry to do better – to ensure safety and promote a pathway for new products through clinically tested scientific research. Since then, action has been taken on the state and federal levels to increase access to cannabinoids beyond CBD. In response, NCL expanded our educational campaign and established Cannabis Consumer Watch.” 

The full letter can be found here.

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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 nclnet.org.

NCL sends letter to Illinois Attorney General on mass arbitration

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August 18, 2023

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

Washington, DC – The National Consumers League sent a letter to Illinois Attorney General Kwame Raoul on the practice of mass arbitration. NCL CEO Sally Greenberg urged the office to look into these issues to avoid denying consumers the redress and remedies to which they are entitled under the law and further delays in justice and accountability.

The full letter can be found here.

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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 nclnet.org.

National Consumers League Live Event Ticketing Principles

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

The ticketing industry is the gatekeeper to much of our nation’s arts, sports and culture. What should be an exciting moment—securing a seat for your favorite event —has become exceedingly frustrating for many consumers as they navigate a confusing ticket-buying process laden with hidden fees.

NCL works on behalf of fans for all live events to ensure that consumers get the best possible experience, the best bargain for their hard earned dollars and don’t feel they’ve been ripped off with gotcha added costs, like mandatory “convenience fees” “processing fees” “venue fees” or the like when purchasing live event tickets.

Consumers are at the mercy of a rigged ticket marketplace. One company – Live Nation Entertainment (LNE) — dominates the marketplace. The company was created after Ticketmaster and Live Nation were given the green light to merge by the Department of Justice in 2009, despite strong consumer and business opposition.  LNE today controls around 80% of primary ticketing services, owns or has exclusive rights to operate many venues, and has major positions in artist management and event promotion. In 2022, LNE reported $4.5 billion in revenue from ticket resale, more than double what it earned in 2019, making it one of the largest players in the secondary ticket market.

Not surprisingly, LNE engages in practices typical of monopolies, working to drive out competitors. NCL and other consumer groups are leading the charge to unwind the ill-advised 2009 merger of Live Nation and Ticketmaster and restore healthy competition to the marketplace.

NCL believes that ticket resale has a legitimate place in the live event marketplace. The availability of ticket resale services provides a hedge for consumers who buy season tickets or non-refundable tickets, and is also a source for ticket buyers to get bargains when supply outpaces demand, allowing them to save money on below-face value tickets.

Below are some general principles on ticketing that NCL supports.

  1. We want the DOJ and Congress to unwind the Ticketmaster-Live Nation merger.
  2. Hidden ticket fees, deceptive dark patterns, and other anticompetitive ticketing practices should be prohibited. “All in” ticket pricing should be required so that consumers can compare prices from one site to another.
  3. Ticket holdbacks (also known as allocations) should be disclosed to ticket buyers prior to purchase.
  4. Secondary ticket exchanges should be required to disclose the face value of tickets offered for sale on their platforms.
  5. Ticket resellers should be prohibited from engaging in deceptive practices that are deliberately intended to confuse consumers into believing they are buying tickets from the primary seller. Deceptive design practices such as using URLs or other indicia of affiliation with a venue, team, or artist and by paying for search engine optimization that results in resale websites appearing higher in search results than the official box offices should be prohibited.
  6. Secondary ticket exchanges should be required to closely monitor their ticket inventory to ensure that they are not listing tickets obtained in violation of federal or state laws.
  7. All stakeholders in the live event industry should be required to assist enforcement agency’s efforts to stop illegal automated ticket buying and resale.
  8. Federal or state law enforcement agencies should investigate how tickets appear on the secondary ticket market at prices far above face value before offered for sale by primary ticket sellers and whether such sales violate applicable laws.

To these ends, NCL has endorsed legislative reforms to protect ticket buyers and promote competition in the live event industry, such as the BOSS and SWIFT Act and the TICKET Act.