Consumer and passenger rights organizations send letter to Congress urging inclusion of airline reforms in 2023 FAA Reauthorization

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July 5, 2022

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

Washington, D.C. — The National Consumers League (NCL), along with eight other consumer advocacy groups, sent a joint letter to the House Committee on Transportation & Infrastructure and to the Senate Committee on Commerce, Science, & Transportation urging action on travelers’ urgent needs and priorities that have been exacerbated by the pandemic. In the letter, the nine organizations identified a range of legislative reforms needed to address consumers’ concerns—all of which can be enacted via next year’s reauthorization of the Federal Aviation Administration (FAA). This includes allowing minor children to be seated with their parents and caregivers at no extra cost, enabling travelers to board the next available flight (regardless of airline) when their original flight is delayed, and requiring ancillary fees to be transparent and proportional to the cost of the service provided.

The full list of passenger priorities can be found in the letter to Congress below.

 

July 1, 2022

 

The Honorable Peter DeFazio

Chairman

Committee on Transportation & Infrastructure

United States House of Representatives

Washington, DC 20515

 

The Honorable Maria Cantwell

Chair

Committee on Commerce, Science, & Transportation

United States Senate

Washington, DC 20510

 

The Honorable Sam Graves

Ranking Member

Committee on Transportation & Infrastructure

United States House of Representatives

Washington, DC 20515

 

The Honorable Roger Wicker

Ranking Member

Committee on Commerce, Science, & Transportation

United States Senate

Washington, DC 20510

 

RE:        Consumer and Passenger Rights Organizations’ Priorities for the 2023 FAA Reauthorization Legislation

Dear Chairman DeFazio, Chair Cantwell, Ranking Member Graves, and Ranking Member Wicker,

The undersigned consumer and passenger rights organizations urge you to use the opportunity of reauthorizing the Federal Aviation Administration (FAA) next year to address a range of urgently needed consumer protections and industry reforms. Following Congress’s appropriation of more than $50 billion to the air travel industry during the pandemic,[1] travelers across the United States have been clear in their demands for changes to the business practices of air carriers. We believe the following legislative reforms are urgently needed to address consumers’ concerns.

Minimize Flight Cancellations and Delays

Congress should institute an industry-wide reciprocity requirement. When a flight is significantly delayed or cancelled for any reason, passengers of that flight should be transferred to another carrier if the second carrier could transport the travelers more quickly than the original carrier. This would benefit travelers by ensuring minimal disruption to their schedules and incentivize airlines to reliably maintain their flight schedules, increasing competition in the airline industry.

Hold airlines accountable for chronically delayed and cancelled flights. Air carriers should be required to maintain a minimum percentage of on-time flights per month based on a review of the carrier’s published schedule and actual performance. This would allow the Department of Transportation (DOT) to hold airlines accountable when they routinely publish inoperable flight schedules.

Require plain language notices of passenger compensation rights under U.S. and international law throughout public airports. Such notices should specifically include rights afforded by the Montreal Convention[2] and the EU’s Flight Compensation Regulation[3], as many American travelers may be unaware of the international rights to which they are entitled.

Reform Airline Fees, Seating, and Rewards

Include the Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act in the 2023 FAA Reauthorization. The FAIR Fees Act would prohibit air carriers from charging fees (including baggage, seating, and reservation change fees) that are not reasonable and proportional to the costs of the services provided.[4]

Ensure that parents and caregivers can be seated with their minor children at no additional charge. Congress has previously urged the DOT to act on family seating requirements in the 2016 FAA Reauthorization[5], yet the only action the Department took was to update a web page on the issue. Parents and caregivers should not be required to pay a fee to ensure they can sit next to their minor children on a flight.

Establish basic services standards for air travel. Passengers should be entitled to, at a minimum: a seat, a boarding pass, check-in services, a personal item, a carry-on item, water, and an accessible lavatory included in the ticket price. Additionally, air carriers should be required to maintain a toll-free customer service phone number, with adequate staffing to ensure wait times do not exceed 30 minutes.

Require transparent, upfront pricing of airfare at the outset of the purchase process. Consumers respond to an advertised ticket price, but are then faced with additional fees for basic services like baggage, seat reservation, and other ancillary charges throughout the purchase process. This often results in a much higher total cost than originally advertised. Clearly displaying what is included in the fare from the onset will help alleviate the sticker shock many travelers face by the end of their purchase and promote competition between airlines.

End the excise tax exemption for ancillary service fees. Ancillary fees—a multi-billion dollar source of revenue—currently escape excise taxation, depriving the Airport & Airway Trust Fund (AATF) of resources needed to maintain critical infrastructure.[6] This loophole is a significant incentive for airlines to pass ever more ancillary fees on to consumers.

Narrowly define “service” as it relates to federal preemption and the Airline Deregulation Act of 1978 (ADA). Judicial interpretations of the ADA’s preemption of the regulation of conduct which “relates to service” are expansive and preclude the regulation of virtually any action an air carrier takes during a flight or customer service operation. This effectively preempts states from protecting travelers in most situations. Removing the phrase “relates to” and clarifying that “service” only includes the frequency and scheduling of transportation on a certain route will reinstate Congress’s original intent in the ADA while enabling state consumer protection agencies to backstop the DOT’s role in protecting the flying public.

Establish a minimum passenger seat size. Shrinking seat sizes cause health risks, passenger discomfort, and create potential evacuation hazards. The 2018 FAA Reauthorization required the FAA to set minimum passenger seat width and pitch within one year of the Reauthorization’s enactment. Almost four years later, the FAA still has not fulfilled this mandate. Congress must act when the agency will not.

Require reasonable notice to consumers before devaluation of their frequent flyer program miles. Currently, miles accrued via frequent flyer programs lack important consumer safeguards. A minimum of 60-day notice before devaluing travelers’ frequent flyer miles will increase transparency and allow consumers to make better informed decisions.

Enable Stronger Enforcement of Passenger Protections

Empower state attorneys general to enforce federal consumer protection laws. The DOT lacks the resources to address many valid complaints from travelers. For example, despite a record surge in consumer complaints during the pandemic, the DOT has initiated only a single enforcement action against an airline.[7] Allowing state attorneys general to share enforcement of federal consumer protection laws with the DOT will provide additional avenues for consumers to seek redress.

Establish a private right of action to allow consumers to enforce federal consumer protection laws. Empowering passengers to bring their own actions in response to unfair, deceptive, and discriminatory practices will help to hold air carriers accountable without waiting for federal intervention.

Direct the Government Accountability Office (GAO) to report on DOT rulemaking efficiency. The DOT’s failure to issue statutorily required regulations regarding passenger seat size is not an isolated instance. Congress should direct the GAO to produce a report examining the reasons that the DOT has not yet completed statutorily mandated regulations from previous FAA reauthorization bills.

Prioritize Consumer Voices and Experiences

Renew the charter for the Aviation Consumer Protection Advisory Committee (ACPAC). The ACPAC has provided expertise on matters of consumer protection to the DOT for over a decade. It will continue to play a critical role as the air travel industry recovers from the COVID-19 pandemic. The ACPAC has been an important venue for consumers to make their voices heard at the DOT. Absent Congressional action, the authorization for the ACPAC will expire on June 28, 2023.

Require at least two passenger representatives on airport authority governing boards. Underrepresentation of passenger interests on airport authority governing boards has allowed many airports to deprioritize passenger convenience, faster travel time, and consumer expenses. Conditioning federal subsidies and licensure for airports on passenger representation on airport authority governing boards would incentivize airports to make travelers’ airport experience a priority.

Ease the creation of new airports. The last major airport was built in 1995; increasing the number of airports would help with congestion and create new, possibly shorter flight paths. Ending the prohibition on federal ownership of airports would free up additional resources for airport construction projects. Additionally, state and local governments should be encouraged to build new airports, especially at major hubs.

The undersigned consumer and travel advocacy organizations thank you for your attention to these important passenger protection issues as you begin the process of reauthorizing the FAA.

Sincerely,

 

American Economic Liberties Project

Business Travel Coalition

Consumer Action

Consumer Federation of America

EdOnTravel.com

FlyersRights.org

National Consumers League

Travelers United

U.S. Public Interest Research Group

 

[1] Politico. Congress to airlines: Where did all the Covid money go? 2021. https://www.politico.com/news/2021/11/20/airlines-pandemic-bailout-cancellations-523100

[2] The International Air Transport Association. Convention For The Unification Of Certain Rules For International Carriage By Air. 1999. https://www.iata.org/contentassets/fb1137ff561a4819a2d38f3db7308758/mc99-full-text.pdf

[3] EUR-Lex. Regulation (EC) No 261/2004 of the European Parliament and of the Council of 11 February 2004 establishing common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights, and repealing Regulation (EEC) No 295/91 (Text with EEA relevance) – Commission Statement. (2004). https://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex:32004R0261

[4] Congerss.gov. H.R.6215 – FAIR Fees Act of 2021. (2021). https://www.congress.gov/bill/117th-congress/house-bill/6215

[5] Congress.gov. Public Law 114–190—July 15, 2016: Sec. 2309. Family Seating. (2016). https://www.congress.gov/114/plaws/publ190/PLAW-114publ190.pdf

[6] U.S. Department of Transportation, Office of Inspector General. Changes in Airline Service Different Significantly for Smaller Communities but Limited Data on Ancillary Fees Hinders Further Analysis. (2020). https://www.oig.dot.gov/sites/default/files/Airline%20Service%20to%20Small%20Communities%20Final%20Report_0.pdf

[7] U.S. Department of Transportation. Air Canada Settlement Agreement. (2021). https://www.transportation.gov/individuals/aviation-consumer-protection/air-canada-settlement-agreement

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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.

National Consumers League urges Congress to strengthen Bipartisan Privacy Bill

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June 17, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832 

WASHINGTON, D.C. – The National Consumers League is encouraged by the bipartisan, bicameral American Data Privacy and Protection Act (“ADPPA”), a long-overdue step to protect the privacy and security of consumers’ personal information. However, there remain some concerns that must be addressed to ensure that the bill provides basic consumer remedies for failure to comply with the rules of the road and preserve the best aspects of the privacy laws that are already in place in the states.

“The lack of a comprehensive data protection law has left Americans at the mercy of criminal hackers who are making billions of dollars stealing consumers’ personal data,” said NCL Executive Director Sally Greenberg. “At the same time, many companies have built their business models on the collection of sensitive data that exacerbates existing inequities in our economy.”

NCL has long pushed for stronger protections for consumer data. In 2011, NCL supported a bill to regulate the use of sensitive location data. In the wake of the Target data breach in 2013, NCL launched the #DataInsecurity Project to raise awareness about how the lack of data security standards increases the risks to consumers of identity fraud and other scams. Most recently, NCL released a genetic privacy reform roadmap detailing actions Congress, the Biden administration and industry could take to protect consumers’ genetic data.

NCL shares the concerns about the ADPPA raised by privacy and consumer advocates. Importantly, we believe that the bill’s private right of action provisions should be strengthened and a prohibition on mandatory binding arbitration clauses should be included in the legislation.

In addition, NCL supports allowing states with strong privacy and data security laws to preserve those provisions where they provide additional consumer protections.  NCL also supports preserving the Federal Communication Commission’s role in regulating the privacy practices of common carriers. Given the bill’s proposal to expand the role of the Federal Trade Commission in protecting consumer data, Congress must ensure that the FTC has the resources it needs to be effective in that role.

“We applaud members of Congress for putting forward a bipartisan bill to provide comprehensive privacy and security protections,” said John Breyault, NCL’s Vice President of Public Policy, Telecommunications and Fraud. “Compromises by all sides in this debate have led us to this moment. There is much promise in this legislation, but key consumer protections need to be addressed before the bill moves 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 www.nclnet.org.

NCL urges Judiciary Committee to report the Equality Act to the full Senate

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June 10, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

 

The Honorable Dick Durbin

Chair

Committee on the Judiciary

Unites States Senate

 

The Honorable Chuck Grassley

Ranking Member

Committee on the Judiciary

Unites States Senate

 

Dear Chair Durbin and Ranking Member Grassley,

Over a year has passed since the Senate Committee on the Judiciary held hearings for HR5, also known as the Equality Act. The National Consumers League (NCL), the United States’ oldest consumer advocacy organization, urges the Judiciary Committee to report the Equality Act to the full Senate without further delay. This legislation would codify important consumer protections for the LGBT community, notably in housing, credit lending, and public accommodations.

Non-discrimination is a core component of consumer protection that all other safeguards rely upon; access to service is the most basic consumer issue. Studies have shown the challenges still facing the LGBT community, with over half of LGBT Americans having faced discrimination generally and 22% of LGBT consumers having experienced housing discrimination.[1] Regardless of gender identity or sexual orientation, every individual deserves access to housing and financial services, as well as the ability to purchase goods and services at restaurants, lodging, and retail stores.

By passing the Equal Rights Act, Congress can cement consumer protections for the LGBT community nationwide. NCL urges the Judiciary Committee to finish their work on the Equality Act and report this critical legislation to the full Senate.

[1] Harvard T.H. Chan School of Public Health. Poll finds a majority of LGBTQ Americans report violence, threats, or sexual harassment related to sexual orientation or gender identity; one-third report bathroom harassment. (2017). https://www.hsph.harvard.edu/news/press-releases/poll-lgbtq-americans-discrimination/

 

Sincerely,

Sally Greenberg

Executive Director

National Consumers League

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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.

 

New York ticketing legislation is a victory for fans

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June 9, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

Washington, DC— The National Consumers League (NCL) applauded the New York State Assembly for approving S.B. S9461, landmark consumer protection legislation that makes New York the first state to require all-in pricing of live event tickets. The bill also requires ticket brokers to disclose how much was originally paid for a ticket when they resell a ticket, prohibits the resale of tickets that were originally offered for free, and prohibits “print-at-home” fees.

“Fans in New York are the real winners from this bill,” said John Breyault, Vice President of Public Policy, Telecommunications, and Fraud at the National Consumers League. “Hidden fees and outrageous markups are some of consumers’ biggest pain points when it comes to buying tickets. While this bill will not solve every problem within the ticketing industry, getting rid of hidden fees addresses one of fans’ biggest complaints.”

A 2018 Government Accountability Office (GAO) report found that on average, consumers paid an extra 27% of the ticket’s original cost in fees. Media reporting has found instances where hidden fees were 78% of the fare’s starting price.

“Ticketing companies have long known that all-in pricing was a better solution for consumers, but they hesitated to provide it for fear of losing market share to competitors who hid their fees,” said Breyault. “That is the definition of market failure, which the New York bill fixes. We urge other states and the U.S. Congress to follow New York’s example and enact similar legislation.”

NCL applauded, in particular, the leadership of New York Senator James Skoufis whose investigative report on the ticketing industry was an important catalyst for this legislation.

“Senator Skoufis championed this important bill in the face of intense industry opposition and made sure it didn’t get watered down,” said Breyault. “Fans in New York will benefit immensely from his leadership.”

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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.

 

The National Consumers League calls on Congress to enact the Bipartisan Background Checks Act to address the gun violence epidemic

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June 2, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

Washington, DC— The National Consumers League (NCL) strongly supports The Bipartisan Background Checks Act (H.R. 8) and urges members of Congress to enact this common-sense gun legislation. Introduced by Representative Mike Thompson (CA-5), NCL views H.R. 8 as the first significant step to safeguarding consumers against the rampant gun violence in America.

Gun violence is disproportionally higher in the United States compared to other industrialized nations. In this respect, it is a uniquely American problem and one that policy-makers have an obligation to address. According to the Center of Disease Control and Prevention (CDC), guns are now the leading cause of death among youth. As a leading organization representing consumers, NCL is dedicated to supporting legislation designed to ensure that gun violence, from the recent tragedy in Uvalde, Texas to the racially motivated massacre in Buffalo, New York, never happen again.

One of the first steps to begin mitigating this epidemic is requiring more thorough background checks. Recent studies conducted by the School of Public Health, University of California, Berkeley and Johns Hopkins Bloomberg School of Public Health, highlight how background checks can significantly reduce gun related deaths. This is why the passage of H.R. 8 is so important. The bill will establish new background check requirements, making them a mandatory practice in all transactions, including those between private parties.

While the passage of H.R. 8 is significant, NCL is deeply disappointed by policy-makers’ refusal to adopt more robust gun safety legislation. It is imperative that Congress institute an automatic assault rifle ban to limit access to firm-arms deliberately designed to kill humans. Furthermore, a national gun registry must be established to increase gun owners’ accountability and help law enforcement solve and prevent crimes.  As our most cherished institutions continue to be targeted and consumers continue to fear for not only their lives, but their children’s lives, NCL strongly urges Congress to use their power to enact legislation aimed at ending this epidemic.

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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.

 

NCL issues recommendations to avoid another baby formula shortage

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May 19, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

Washington, D.C. – The National Consumers League shares the very real concerns of new parents regarding the recent shortage of infant formula. Our hearts also go out to parents who have lost babies due to contaminated powdered formula and those whose infants suffered devastating health consequences from the contaminated product.

We appreciate the FDA’s multifaceted approach to increase infant formula supply, including allowing foreign manufacturers of baby formula to sell their products in the U.S. Additionally, the Biden Administration has implemented the Defense Production Act, which will be important in increasing production by requiring suppliers to prioritize getting needed inputs to the infant formula manufacturers. Initiating the DPA also allows the Administration to use Department of Defense contracts with commercial cargo lines to speed the transport of foreign products into the U.S. and onto store shelves across the country. These actions are critical steps in combatting this formula shortage issue.  We applaud Congress for supporting emergency legislation to address the formula shortage.

However, while addressing the shortage is the most pressing issue, first and foremost, the responsibility lies with the Abbott facility in Michigan whose reckless actions set events into motion. Abbott failed to follow safety protocols, falsified documents to the FDA and then shipped contaminated formula exposing our most vulnerable little consumers to foodborne illnesses. Those actions triggered an FDA investigation and subsequent recall, leading to the current shortage.

We are also troubled that the FDA, for its part, took almost two months to act on the whistleblower complaint sent to the agency in October 2021. That report cited unsanitary conditions, contamination of formula, and serious allegations against company officials at the Abbott Facility in Michigan. This complaint should have received immediate attention given the vulnerability of infants, whose immune systems are just developing. This plant is also responsible for producing a great deal of the formula sold to federal WIC program. (The Special Supplemental Nutrition Program for Women, Infants, and Children). We think both civil and criminal charges are in order. The shortage demands that the FDA source infant formula from countries already approved for importing formula. It’s also time to create a single food safety agency and create an office to oversee the safety and supply of infant formula.

A summary of NCL’s recommendations include:

  1. Immediate sourcing of infant formula from countries that are already approved to import the product
  2. Opening the Abbott plant once the FDA can reach an agreement with the company to ensure production of infant formula will be under strictest safety and quality control.
  3. A full investigation of the Abbott facility, and criminal and civil charges brought against those who falsified data or knowingly allowed the shipment of contaminated formula
  4. Expansion of the number of companies making infant formula
  5. Creation of a single food safety agency and appointment of a baby formula safety and supply chain expert

Infants are our most vulnerable and precious consumers and they rely on us to protect them. We have let them down and safety provisions must be put in place to ensure that this never happens again. NCL stands ready to work with Congress, consumers, businesses, and the FDA to ensure the safety of infant formula is never compromised again.

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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.

 

National Consumers League urges Congress not to allow credit bureaus’ credit scoring company to dominate the credit scoring system

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May 13, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

Washington, D.C. –

The National Consumers League has sent a letter to the Chairs of the Senate Banking and House Financial Services Committees asking these leaders to conduct adequate oversight on the nation’s credit bureaus, TransUnion, Equifax, and Experian. “The three bureaus keep financial records and establish credit scores for hundreds of millions of Americans. For years, consumer organizations like ours have been raising questions about the behavior and actions of these entities, who in recent years have together created their own credit scoring company called VantageScore.”

The letter noted that “On April 12th of this year, the Consumer Finance Protection Board (CFPB) filed a lawsuit against credit bureau TransUnion and their long-time CEO for willfully violating the law and defrauding consumers, with CFPB’s director saying that ‘TransUnion is an out-of-control repeat offender that believes it is above the law.’  The letter also noted that “In September of 2017, the nation learned that another of the big three, Equifax, had been breached and the financial records of close to 150 million Americans had been compromised. “Investigations …found that Equifax had failed to protect the data that they had been entrusted with and a global settlement was reached.”  The letter goes on to say “… the three credit bureaus own a credit scoring company called VantageScore. Vantage Score is vigorously lobbying the FHFA to spend millions of dollars to change the credit scoring system for the GSEs in order to win market share.”

The letter urges these members of Congress to “ask tough questions and share your concerns directly with the FHFA, especially before that agency takes any action that could send millions of dollars into the pockets of VantageScore.”

Read the letter 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 www.nclnet.org.

 

Breyault and Amazon’s Alyssa Betz discuss policing fake reviews and counterfeits

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By NCL Staff

 

This week, John Breyault, our Vice President of Public Policy, Telecommunications, and Fraud, sat down with Amazon’s Director of Public Policy, Alyssa Betz. On this episode of NCL’s We Can Do This! podcast, Alyssa and John discussed fake reviews, Amazon’s product liability, and more. This has been the latest collaboration between Amazon and NCL in our partnership towards improving consumer safety and online experiences.  

Fake Reviews 

With users increasingly relying on user reviews to make buying decisions, having access to trustworthy reviews is critical for consumers. Last month, Amazon *sued a group of review brokers who were allegedly paying for fake reviews at large scale. In addition to discussing the suit, Betz outlined some of the steps they have taken to ensure that user reviews are trustworthy and accurately reflect consumers’ experiences. 

Counterfeits 

Given the vast number of products sold through nearly two million sellers worldwide, Amazon has an enormous responsibility to ensure consumer safety. Alyssa discussed some of the measures Amazon has taken to reduce criminals’ ability to operate on their platform, including investing over $700 million and employing more than ten thousand people to protect its store from fraud and abuse, including counterfeit products.

To hear the full episode, including John and Alyssa’s conversation about product liability and how to spot those phony Amazon delivery phishing texts, click here. 

If you have received suspicious communications or packages claiming to be from Amazon, you can find Amazon’s support page here. 

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

NCL applauds action to rein in deceptive marketing of contact lenses

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February 3, 2022

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC –The National Consumers League (NCL), America’s pioneering consumer advocacy organization, welcomed the enforcement action undertaken by the Federal Trade Commission (FTC) and the Department of Justice (DOJ) to end the deceptive marketing of contact lenses by Vision Path, Inc.

Vision Path, a direct-to-consumer seller of Hubble contact lenses, will pay penalties and redress totaling $3.5 million to settle charges that it violated the FTC’s Contact Lens Rule and put consumers at risk by failing to obtain proper prescriptions, and neglecting to properly verify prescription information, and by substituting Hubble lenses for those actually prescribed to consumers.

“This action against Vision Path should serve as a warning to any company that disregards laws intended to protect consumers. NCL has been at the forefront of efforts to get Congress and federal regulators to crack down on companies that deceptively market to consumers and illegally substitute their contact lenses in place of those originally prescribed by a patient’s eye doctor,” said NCL Executive Director Sally Greenberg.

The FTC’s complaint alleges that Vision Path engaged in other deceptive practices, such as failing to disclose that “independent” consumer reviews were actually solicited by the company. The FTC also alleges that Vision Path engaged in a deceptive negative-option billing model that encouraged consumers to sign up for 15 pairs of daily-wear contact lenses and then automatically enrolled them in a subscription plan. NCL has long supported legislation, such as the District of Columbia’s landmark Structured Settlements and Automatic Renewal Protections Act of 2018, that would require a consumer’s explicit affirmative consent before such automatically-renewing contracts could kick in.

“Consumers are best served when they work with their health care providers to ensure the most appropriate and safest use of FDA-regulated medical devices, like contact lenses,” said Greenberg. “We are grateful to the DOJ and the Consumer Protection Bureau at the FTC, which led this effort, for their rigorous enforcement of consumer protection laws. While this is an important development, violations of the Contact Lens Rule continue. We will continue to press Congress and federal agencies to ensure that the CLR is being implemented and enforced as Congress intended.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Airline executive testimony conflicts with travelers’ reality

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By Eden Iscil, Public Policy Associate

Last month, the Senate Committee on Commerce, Science, and Transportation held a hearing titled “Oversight of the U.S. Airline Industry,” which featured the CEOs of the major domestic airlines (American, Delta, Southwest, and United). With the federal government’s $50 billion bailout of the aviation industry serving as the primary focus of the hearing, airline CEOs managed to avoid serious scrutiny despite the massive service failures seen in 2021 and early 2022.  

The underlying problem centers around the air traffic companies choosing to incentivize employees to leave their jobs, despite receiving billions of dollars in assistance from the federal government with the primary condition being not to fire workers. The bailout, officially known as the Payroll Support Program, served as an undeniably central piece to America’s quick economic rebound from the early COVID-19 recession. Yet, airlines still could not service hundreds of thousands of flights over the past seven months due to a lack of staffing. This caused a meltdown of delays and cancellations in the summer and early fall of 2021 and again during the end-of-year holidays over the previous two weeks. 

While certain conditions understandably contributed to flight schedule changes, such as the Omicron variant, the airlines’ lack of preparation remains a consistent problem. For example, in October 2021, Southwest Airlines cancelled more than 2,000 flights, blaming weather and FAA issues. But these excuses do not hold water, as consumers quickly pointed out that while Southwest cancelled 28 percent of its schedule, competitors only cancelled around 3 percent of their flights. A couple weeks later, CEO Gary Kelly acknowledged staffing shortages that had led to Southwest’s service problems. 

The reality travelers have faced does not match the rosy picture airline executives painted at the Senate hearing. Southwest’s Kelly expressed pride in not cutting hours or laying off employees throughout the pandemic. Yet, his airline was still understaffed at the end of October (according to Southwest’s own hiring goals) after the airline reduced its workforce by 28 percent at the onset of the pandemic. To get around the prohibition on involuntary firing, air traffic carriers like Southwest incentivized early retirement and extended time off packages. The results of these practices are visible in every major airport nationwide. 

Additionally, American Airlines CEO Doug Parker told senators that “large events” of cancellations “don’t happen very often” and that a shortage of employees is not a problem. Just a week later, airlines began experiencing staffing troubles, which led to more than 18,000 flight cancellations between Christmas Eve and January 3. Given the predictable spike in COVID infections we have seen during periods of high travel for almost two years, especially during the winter holidays, it is unclear why airlines were entirely unprepared for the latest holiday traffic.  

To be clear, employees absolutely should not report to work when they are ill (hopefully by taking paid sick leave). Given the record-breaking transmissibility of the Omicron variant, workers’ safety needs to remain paramount. It is unfortunate that airlines did not take steps to rectify previous mistakes and increase staffing ahead of the winter travel season in order to avoid the enormous wave of cancellations. In addition to the headaches and last-minute adjustments stranded travelers needed to make, the service failures were especially impactful as this was the first holiday season for many people to enjoy with loved-ones since before the pandemic.