Price gouging a threat to consumers in new economy

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In past natural and man-made disasters, whether in the aftermath of Hurricane Katrina or the 2008-09 financial crisis, opportunistic bad actors have sought to squeeze every last penny from desperate consumers. Unfortunately, the COVID-19 crisis seems to be a little different in this respect.

In the earliest days of pandemic panic, reports of overpriced goods were widespread; products were flying off of shelves, and those that remained were often dramatically marked up. NCL learned of $10 milk, $100+ dollar masks, and outrageous prices on toilet paper. Two Tennessee brothers who stockpiled 17,700 bottles of hand sanitizer with the intent to sell them at a mark-
up online earned instant national notoriety.

“Like moths to the flame, profiteers cannot resist the allure of easy money. In this time of national emergency, it should perhaps come as little surprise that those who wish to make a quick buck off the desperation of consumers are finding few obstacles in their way,” said NCL Executive Director Sally Greenberg.

This spring, price gouging proved to be an immediate threat to consumers across the nation, as unscrupulous sellers increased pricing online and in-person of essentials ranging from personal protective equipment, hand sanitizer, disinfectant products, and even toilet paper and paper towels.

According to the National Law Review, “in normal times, there would be nothing problematic about a seller’s unilateral decision to increase its prices in response to higher consumer demand. However, with emergency declarations in most—if not all—states, such price increases may lead to hefty civil fines and even imprisonment under state laws prohibiting price gouging.”

Indeed, price gouging in times of crisis is illegal in most states. For example, Maryland’s anti-gouging statute prohibits raising the price of many consumer goods and services that increase the seller’s profit by more than 10 percent while the COVID-19 emergency, declared by Governor Larry Hogan, is in effect. California has a similar statute, punishable by up to a year in jail and a $10,000 fine.

“While state laws are important, enforcement alone won’t solve this problem,” said Greenberg. “Reputable businesses must also play their part to keep price gouging off their shelves. We are encouraged when we see sellers committing to stomping out price gouging, such as Amazon’s announcement in April of a ‘zero tolerance’ policy against it.”

In practice, Amazon’s policy means the company is working to remove price gougers from its marketplace, forwarding reports of price gouging to law enforcement, and making it clear to their sellers that price gouging is not allowed. Amazon has removed more than half a million products and suspended thousands of seller accounts in the United States since its commitment to stopping price gougers in its ecommerce platform.

Others are fighting against gouging in different ways. In May, in response to more than 500 complaints from residents about price gouging on essential goods, the Los Angeles County Department of Consumer and Business Affairs announced the launch of a mobile app to make it easier to report cases of price gouging and phony COVID-19 remedies.

“The overwhelming majority of sellers on sites like Amazon, eBay, and other online marketplaces are honest,” said Greenberg. “But these e-commerce marketplaces are where millions of consumers are going to find much-needed products. Particularly for consumers who are at high risk, these online services can be a lifeline, enabling them to stay home, avoid going out into public, and decreasing their chances of contracting the virus. We call on retailers to do the right thing during this terrible pandemic.”

Advocating for emergency air transport coverage

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This spring, NCL sent a letter to the CEOs of Cigna, Aetna, and UnitedHealth Group, urging them to enter into productive negotiations with air medical service providers to ensure coverage of emergency air medical transportation. The ask came as the COVID-19 pandemic spread across the country, making air medical services even more essential, particularly in rural America.

“We are increasingly concerned about emergency air medical access during this crisis, and believe this life-saving care should be covered by every insurance plan,” said NCL Associate Director of Health Policy Nissa Shaffi.

“We are asking that insurers review the robustness of their coverage policies and immediately enter into network negotiations with air medical providers so that this critical service is covered, and patients are never left with a bill they cannot pay.”

Sorting through bogus health claims

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Across the United States, people are rising to the historic health needs and challenges posed by coronavirus, with healthcare workers on the frontlines risking their lives, and businesses pivoting to manufacture much-needed medical and protective supplies.

But deep concerns about the health implications—what happens to people who contract the disease from a health and financial perspective—are top of mind for many of us. And a cynical minority has seized on the crisis to employ unscrupulous, and frankly dangerous, marketing tactics to promote bogus products claiming to protect users against the coronavirus or provide relief for those infected—as well as peddling downright phony coronavirus testing products.

“These false claims touting unproven medical benefits are nothing more than craven attempts to take advantage of fearful consumers,” said NCL Executive Director Sally Greenberg.

“Moreover, they spread misinformation among consumers anxiously seeking ways to stay safe and healthy amidst the coronavirus crisis.”

In an op-ed in The Hill published in May, Greenberg noted that a number of CBD manufacturers and stores are falsely promoting unproven medical benefits of CBD products.

A CBD store in Portland, OR, for example, was recently ordered by the office of the state’s attorney general to take down signs claiming that its products could boost immunity against COVID-19.

“False claims such as this are particularly dangerous as consumers anxiously attempt to stay safe and healthy amidst the coronavirus crisis,” said Greenberg. “The need for science-backed treatments is significant and we must ensure products are tested and regulated for safety.”

Contrary to claims being made by CBD marketers that products containing cannabidiol can help those suffering from coronavirus, recent studies have actually found potential harmful side effects of cannabis products on infected coronavirus patients. Aurelius Data cautions the public against the potential harmful side effects that can come from consuming cannabis products with Tetrahydrocannabinol (THC) if a patient is infected with COVID-19. And studies have shown that many unregulated CBD products have been found to contain THC, though the labels may not disclose this.

“In these uncertain times, we urge consumers to continue to take precautions,” said Greenberg. “We urge everyone to follow CDC guidelines for COVID-19, practice safe social distancing, and at the same time avoid THC products and all untested, unregulated CBD products to help keep your family, friends, and communities safe.”

Price gouging and usury and fraud, oh my!

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Ben Wiseman, director of the Office of Consumer Protection at the Office….

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NCL hails sweeping Supreme Court decision protecting LGBTQ employees

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June 19, 2020

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—With a mission of protecting workers and consumers, the National Consumers League (NCL) applauds the Supreme Court’s landmark employment protection decision this week finding that employment discrimination on the basis of sexual orientation or gender identity is prohibited under federal civil rights law. This statement is attributable to Sally Greenberg, NCL’s executive director:

We are applauding this week’s landmark 6-3 Supreme Court decision finding that the law’s prohibition on sex discrimination in employment extends to those who identify as LGBT (lesbian, gay, bisexual, transgender). We commend and thank Justice Neil Gorsuch and his five fellow justices for concluding that ‘An employer who fires an individual for being homosexual or transgender fires that person for traits or actions it would not have questioned in members of a different sex. Sex plays a necessary and undisguisable role in the decision, exactly what Title VII forbids.’ NCL was founded to advocate for the rights of workers to receive decent pay, work in safe conditions and be free from discrimination in the workplace. This decision further extends these critical protections to the LGBT community.

Title VII of the 1964 Civil Rights Act prohibits discrimination in the workplace on the basis of race, religion, national origin and sex. We are pleased that the court found that “sex” is a distinct characteristic but inseparable from the concepts of sexual orientation and gender identity.

The decision is the most significant affirmation of LGBT rights in the United States since the 2015 Supreme Court decision that legalized same-sex marriage and the Court’s first decision addressing transgender civil rights.

Before the decision, LGBT job discrimination was still technically legal in much of the nation. Less than half the states have laws explicitly prohibiting workplace discrimination on the basis of sexual orientation or gender identity. An estimated 11 million Americans identify as LGBT, according to the Williams Institute.

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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 applauds Supreme Court decision protecting DREAMERS

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June 18, 2020

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) applauds the Supreme Court’s decision today to block the Trump Administration’s attempt to end the DACA (Deferred Action for Childhood Arrivals) program for so-called “DREAMERS”—young people who came to the United States as children with parents who were not documented citizens at the time. Millions of these young people grew up in the United States, but their citizenship status is precarious. Thus, under this Obama-era program established in 2012, DACA is critically important to protect these young people and give them a path to citizenship.

This statement is attributable to NCL Executive Director Sally Greenberg:

NCL applauds the 5-4 decision of the U.S. Supreme Court today blocking the Trump Administration’s efforts to undo the protections of DACA. Thousands of aspiring and promising young people who arrived in the United States as children of undocumented immigrants will not, as a result of this decision, lose critical protections DACA provides. Today we join with them in celebrating the Supreme Court’s decision to block Mr. Trump from undermining these essential protections. NCL’s long history of fighting for the rights of workers and consumers includes the rights of immigrants, who remain among the most vulnerable targets of workplace and marketplace abuses. They deserve the same protections that flow to all American citizens. NCL’s policy position on this issue was adopted in 2013.

The Development, Relief, and Education for Alien Minors Act—the proposal to grant temporary conditional residency, with the right to work, to qualifying immigrants who entered the United States as minor—and, if they later satisfy further qualifications, they would attain permanent residency.  

DACA was introduced by President Barack Obama in 2012 and allows young people who were brought to the U.S. illegally as children to stay in the country and work without being deported on a two-year, renewable term. As of March 31, 2020, 640,000 people have active DACA status, and since 2012, more than 825,000 people have utilized the program. The 5-4 Supreme Court majority, written by Chief Justice John Roberts, determined that President Trump and DHS did not adequately consider the impact on the DACA recipients themselves and the potential hardships for the some 700,000 young immigrants brought to the U.S. illegally as children by their parents. 

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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 statement on murder of George Floyd

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June 3, 2020

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 deeply saddened by the recent unjustified killing of an African American man by police in Minneapolis—just the latest in a long, tragic chain of unwarranted deaths of African Americans by police around the nation. The following statement may be attributed to NCL Executive Director Sally Greenberg:

The callous murder of George Floyd, an African American devoted father, husband, brother, and friend is especially devastating to me personally because it occurred only a few miles from the Minneapolis home I grew up in. Like millions of Americans, I watched as a police officer choked to death a man who was accused by a local store owner of a minor charge of passing off a counterfeit $20 bill.

Like many consumers of color, Mr. Floyd was suspected of a crime by just walking in the door. White Americans must grapple with this reality: African Americans are often followed in stores for no reason, pulled over by police for no reason, and have police called on them for no reason. NCL champions consumer protection and especially for those who suffer from discrimination and predatory practices when they engage in the everyday activities we all take for granted: shopping, walking, driving, jogging, playing music in our cars, or pumping gas. We have also seen how COVID-19 has had the most devastating impact on communities of color. These oppressive disparities must stop.

NCL’s first leader Florence Kelley, raised in an abolitionist Quaker family, refused to stay in hotels that didn’t admit African Americans and appeared on the original charter of the NAACP. To this day NCL has carried forth her legacy and stood alongside African Americans fighting for equality and fair treatment under the law.   

NCL supports the peaceful protesters advocating for systemic change. We pledge to be part of the solution as we try to move on from this devastating moment in American history and will seek out like-minded allies and friends to join us in this struggle.

We are all Americans, and we are all interconnected. It is time to listen and time for each of us to take responsibility to heal the nation. No more delays.

We can do this!

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneering 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.

Grocery stores and safety measures needed to protect workers and customers during COVID-19

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By Nailah John, Linda Golodner Food Safety and Nutrition Fellow

It was a rainy Thursday afternoon when I decided to take a trip to Mom’s Organic Market (MOM’s) in College Park, Maryland. MOM’s CEO, Scott Nash, was the subject of NCL’s We Can Do This! podcast a few months ago because he is infamous for consuming food whose “sell by” date is expired and living to tell the tale.

As expected, the parking lot was partially empty due to many neighboring businesses being forced to close due to coronavirus. I exited my car, pulled my mask over my mouth and nose, and walked in. I was greeted by a store employee also wearing a mask. He politely asked me if I needed a cart, disinfected it, and handed it to me. As I entered the grocery store, there were two signs: one that highlighted measures “Helping Each Other” during COVID-19, and the other noted that it is mandatory by law to wear a mask. It was good to read that if you forgot your mask, Mom’s Organic Market may be able to provide you with a disposable version.

In the produce section, everyone was practicing social distancing and wearing masks. I continued my journey through the grocery store from aisle to aisle, picked up a few things that I needed for my pantry, and went to pay for my items. As my turn to check out was approaching, I decided to engage the staff member who was standing on the side guiding customers on social distancing. I introduced myself and asked if she was a manager, and she responded with enthusiasm that she was. I asked her a few questions regarding the safety measures MOM’s is taking during COVID-19 and whether any staff members at the College Park location had tested positive. She said no but that if any staff member does test positive for COVID-19 or presents a doctor’s note stating that they need to quarantine for 14 days because they have been exposed,  they will be given 14 days of paid sick leave. Also if they want to stay home for longer, they could choose to do so without being paid, but would not be terminated. She also told me that if any staff member comes to work feeling sick, they would be sent home. All staff members are outfitted with masks and gloves and protective glass at check out counters. It was reassuring to know the safety measures that Mom’s Organic is taking during COVID-19 to protect workers and customers.

The experience I had at Mom’s Organic Market was one that I could relate to at other grocery stores across Maryland. But to understand what other stores are doing, across the country, I embarked on creating a survey, which we distributed to NCL Board Members who reside in different States. The grocery stores patronized were Safeway, Whole Foods Market, Trader Joe’s, Harris Teeter, Costco, and Gelson’s Market. According to our board, 80 percent of these grocery stores require that all customers are mandated by law to wear a mask while shopping. 13 percent of the grocery stores provide a mask if you do not have one. and 88 percent did not provide a mask. Among the stores, there is no mandated policy for customers to wear gloves while shopping. 89 percent of the grocery stores did not provide gloves to customers while 11 percent did. Regarding social distancing, 90 percent practice social distancing while 10 percent did not. 75 percent of grocery stores sanitized the carts and then handed a cart to the customer while 25 percent did not.

When asked the question: Does your preferred grocery store limit the number of customers that enter at each given time? 80 percent said yes while 20 percent said no. When asked if grocery store cashiers wear masks, 90 percent said yes and 10 percent said no. 70 percent of the grocery stores in this survey have a protective glass at the cashiers while 30 percent did not. 89 percent of the grocery stores have hand sanitizing stations for customer use while 11 percent did not. It is safe to conclude that most grocery stores are taking the necessary measure to protect customers and staff during COVID-19.

As luck would have it, the daughter of one of my NCL colleagues works at the Safeway bakery. I also talked to her about grocery store COVID-19 related safety precautions. She told me that each staff member at Safeway was provided with a mask, made of either medical or reusable cloth and that some staff who requested face shields were also provided with it. All cash registers were outfitted with protective glass and employees must practice social distancing—six feet apart.  Each hour, the intercom prompts workers to stop working and wash their hands while cashier wash their hands more frequently because they interact more with customers.

Safeway staff go through a checklist daily prior to their shift, with these questions asked:

Do you have any symptoms pertaining to COVID-19 or is there anyone in your family who has tested positive for COVID-19? If any staff member answers yes to any of the questions they are immediately sent home for 2 weeks of paid sick leave. Again, social distancing markers appear on floors at Safeway, and wipes are provided to sanitize shopping carts. Many of us visit grocery stores once or twice a week. It’s great to know that most of the grocery stores we visited or learned about are taking the necessary safety measures to protect workers and customers during COVID-19 and providing generous sick leave protections to ensure workers can afford to stay home if they are experiencing symptoms of the COVID-19 virus.

National Consumers League statement of support for Emergency Broadband Connectivity Fund

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May 12, 2020

Contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC–Leaders in the U.S. House of Representatives today unveiled a new COVID-19 stimulus bill, the HEROES Act, that includes a new $50 per month subsidy ($75 per month for Tribal lands) to support access for low-income Americans to broadband. At time when the effects of the Digital Divide have never been more apparent, NCL is proud to support this effort.

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

“We have long known that affordability is a significant barrier to millions of American families who lack access to broadband. The COVID-19 pandemic, has highlighted as never before the societal costs of cutting off millions of families from the Internet. The inability to connect to distance learning, support networks and online government resources will make recovering from this pandemic even tougher for consumers who lack affordable access to broadband. It is for this reason that NCL strongly supports the proposed Emergency Broadband Connectivity Fund subsidy.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneering 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.

Protecting consumers from COVID-19 Scams: A virtual panel event with Pennsylvania Attorney General Josh Shapiro and fraud experts

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May 8, 2020

Watch recording here


Contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC –Washington, DC / Harrisburg, PA—Next Monday, May 11, the National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, will host a virtual fireside chat with Pennsylvania Attorney General Josh Shapiro and a panel of consumer protection experts on the growing threat of scams linked to the COVID-19 pandemic. The consumer watchdog organization aims to raise awareness in Pennsylvania about the risk of COVID-19 related fraud and arm consumers with information they can use to spot and avoid these scams.

Since the pandemic began, NCL, which operates the website Fraud.org, has seen an uptick in complaints about a variety of scams preying on increasingly vulnerable, financially strapped, and fearful consumers. Scammers running phishing schemes, stimulus check fraud, and even pet adoption scams have all been working overtime to use the COVID-19 pandemic as a way to defraud consumers. The experts at NCL forecast these scams will continue to increase and evolve and are eager to work with AG Shapiro to get the word out about how Pennsylvanians can protect themselves.

WHAT
Virtual “fireside chat” featuring Pennsylvania AG Josh Shapiro and NCL, followed by a panel discussion on resources and tips to avoid COVID-19 fraud and scams

WHEN
Monday, May 11, 2020
11:00 AM – 11:45 AM EDT

WHO
Pennsylvania Attorney General Josh Shapiro
John Breyault, Vice President, National Consumers League

Lorrie Cranor, Professor, Carnegie Mellon University
Mary Bach, Chair, AARP Pennsylvania Consumer Issues Task Force
Andrew Goode, Esq., Vice President, Metro Philadelphia Better Business Bureau

HOW TO WATCH
YouTube Live Link will be provided following registration via Eventbrite

*** Members of the media are welcome to attend but must RSVP to Carol McKay, National Consumers League, carolm@nclnet.org. If you are unable to attend, a recording of the interview and panel can be provided upon request after the event concludes ***

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneering 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.