Kudos to merchants fighting price gouging

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By Sally Greenberg, NCL Executive Director

There I was, searching for hand sanitizer to help keep reducing my risk of infection. I had scoured my local stores for hand sanitizer, to no avail. At last, desperate, I found a tiny bottle of sanitizer on the shelf at my local gas station. A bottle that usually retails for around a dollar was marked up to $3.99. What choice did I have? I paid the money and walked out of the store.

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.

In past natural and man-made disasters, whether in the aftermath of Hurricane Katrina or the 2008-09 financial crisis, there were always crooks who sought to deprive those in need of their last penny. Unfortunately, the COVID-19 crisis seems to be little different in this respect.

Price gouging is perhaps the most immediate threat. Most of us are aware of being asked to pay $5.00 for a bottled water in an airport or amusement park. In a time of crisis, however, the consequences of hiking prices outrageously is more than just a matter of a parched throat. For consumers in desperate need, it can come down to a choice between avoiding infection or paying the rent.

At a time when health care workers and first responders are putting their lives on the line to care for coronavirus patients, it is outrageous to see stories of unscrupulous sellers marking up the price on masks, hand sanitizer, disinfectant and, yes, even toilet paper.

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. Price gouging is also illegal where I live, in the District of Columbia.

While state laws are important, enforcement alone won’t solve this problem. Reputable businesses must also play their part to keep price gouging off their shelves. This is one reason I was especially encouraged to see that that the biggest seller of consumer items on the planet, Amazon.com, stepped out so decisively against price gouging.

Last month, the company issued a policy that clearly states: “Amazon has zero tolerance for price gouging and longstanding policies to prevent this harmful practice.” In practice, this means the company is working overtime 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 more than 3,900 seller accounts in the United States.

The overwhelming majority of sellers on sites like Amazon, eBay, and other online marketplaces are honest. 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 should be very happy that there are state laws prohibiting price gouging and very grateful that Amazon has taken such a strong stance in protecting consumers by monitoring and prohibiting its sellers from gouging consumers and others during this terrible pandemic.

Watchdog org predicting ‘tsunami’ of coronavirus-related scams to come

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April 1, 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 warning consumers about an expected rise in attempts at fraud as the economy continues to tank and criminals pivot their pitches to take advantage of fearful consumers.

“When news captures the public’s attention – think major hurricanes, terrorist attacks, and economic slowdowns – scammers come out of the woodwork to take advantage of legitimate fears and concerns,” said NCL Executive Director Sally Greenberg. “With coronavirus dominating the news globally, there is an unprecedented opportunity for criminals to use the public’s fears about the virus and the resulting economic downturn to defraud consumers.”

NCL is working to educate consumers about two of the most pernicious types scams that are increasing due to coronavirus: robocalls and stimulus check scams.

Coronavirus-related robocalls

Robocalls are, at the very least, a major annoyance for most consumers. However, as the coronavirus has upended daily life, robocall operators have quickly shifted to blasting out spam phone calls offering all manner of coronavirus-related products and services. YouMail, a cloud-based telecommunications provider that tracks robocall volumes, estimates that at least one million robocalls per day are inundating Americans’ cell phones. Fraudulent robocallers are offering air duct sanitation services, work-from-home opportunities, cut-rate health insurance, and immune-system boosting nutritional supplements. Other robocalls have reportedly offered free insulin kits to diabetics, along with free coronavirus testing kits.

“At best, consumers who respond to these calls are setting themselves up to lose money for a non-existent product or service,” said John Breyault, director of NCL’s Fraud.org campaign. “At worst, delaying needed emergency treatments on the belief that a fake coronavirus treatment will save your life could be deadly to you and those you come into contact with.”

NCL’s advice to consumers is simple:

  1. If you receive a call from a number you don’t recognize, the safest course of action is simply to ignore the call.
  2. If you answer a call and suspect it’s a robocall, simply hang up. Don’t press any of the numbers the message tells you to.
  3. Never give any personal information, such as financial account number, Social Security number, full name, or mailing address to someone who contacts you via an unsolicited phone call or text message.
  4. Do not click on any links sent to you via text message from someone you don’t know. They could lead you to malware or phishing websites.
  5. If you’re being inundated by robocalls, your cellular provider may offer services that will increase the likelihood that the calls will be blocked.

Stimulus check scams

Last week, President Trump signed the biggest stimulus bill in U.S. history into law. Most American adults will receive a stimulus of $1,200 or more in the coming weeks thanks to the legislation. Crooks are already using these promised payments as a way to defraud consumers. Scams that have been reported involve crooks promising to expedite payment in exchange for a fee, impersonating a government official, and requesting sensitive personal information in order to process a check. Inaccurate social media posts have also circulated suggesting that consumers need to fill out the 2020 Census before they can receive a stimulus check.

“Stimulus checks will help millions of American households weather the coming economic downturn,” said Breyault. “Unfortunately, the phrase ‘free money from the government’ is magic to scammers’ ears. Consumers should be on the lookout for fraudsters who will try to use the coming stimulus checks to steal their money.”

Consumers can protect themselves from these scams by learning to spot these red flags:

  • The stimulus checks will be deposited automatically by direct deposit into consumers’ bank accounts for the vast majority of citizens who filed their taxes last year. Consumers without a bank account on record with the IRS will receive a paper check, but it may take several weeks longer to arrive than those who have bank accounts.
  • Anyone who emails, texts, messages, or calls you claiming to be able to expedite your stimulus check is a scammer.
  • Anyone who contacts you requesting sensitive information like PayPal account details, bank account information, or credit card numbers is trying to scam you.
  • Your answers to the Census, and whether you’ve completed it, have no impact on your eligibility for a stimulus check.

NCL asks consumers to share their stories by filing a complaint at Fraud.org via its secure online complaint form. Complaints are shared with NCL’s network of nearly 200 law enforcement and consumer protection agency partners who can and do put fraudsters behind bars.

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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.

Fighting for crucial consumer, worker protections and fair outcomes in coronavirus environment

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March 27, 2020: A message to our online community about how we are working hard to ensure crucial protections for consumers and workers in this time of uncertainty.

Sally Greenberg discussing CBD on Capitol Hill

Coronavirus update: Fighting for crucial protections, fair outcomes

A message to our online community

In this critical time, as our nation is gripped by the COVID-19 virus, we want you to know that we remain 100% committed to doing everything we can to help stop the spread of the virus and to fight for consumer and worker protections in this rapidly changing economy.

Although we are now doing so remotely in order to maintain our safety and the safety of our loved ones, NCL staff continues to work behind the scenes to ensure that the interests of consumers and workers are not forgotten in the rush to pass legislation and make executive branch decisions.

Below we’ve highlighted what’s happening and hope that you agree that our work – and your support – are more important than ever.

Pushing Congress to protect passengers in COVID-19 relief legislation

The pandemic has reduced passenger air traffic to a trickle, putting the airlines in deep economic distress. A strong, well-functioning, and safe airline industry is essential to our country. That said, NCL does not believe that giving a blank check to the industry is in consumers’ best interest. That’s why NCL led a coalition of consumer and air passenger advocates to call on Congress to include strong passenger protections in the COVID-19 relief bill. We will continue to advocate for reforms to the airline’s business practices, like excessive fees and shrinking seats, in the weeks and months to come.

Fighting COVID-19 scams

We are actively reaching out to consumers to educate them about how to spot coronavirus-related scams. We are already seeing reports of scammers using this moment of national emergency to sell bogus coronavirus “cures” and target seniors with phony investment scams. That’s why we issued a statement applauding Attorney General William Barr’s order to all U.S. Attorneys to ramp up efforts to shut down COVID-19 scams and are continuing to alert our readers about emerging trends.

We are also using our Consumers for Safe CBD platform (4safeCBD.org) to highlight false product claims made by unscrupulous CBD manufacturers who are using the crisis to promote their products .

Healthcare in the new environment

In response to a request for help from FDA, NCL is supporting the agency’s efforts to expose bogus coronavirus tests, treatments, and cures. In addition, we signed onto a letter as part of our adult vaccine coalition to ask for ZERO CO-PAYs for all Medicare Part D vaccines, which could include COVID-19 vaccines when they become available. With safety as a paramount concern, NCL is supporting the American Nurses Association’s call to action to increase Personal Protective Equipment (PPE) for nurses.

Crucial worker protections

NCL persists in its fight for worker protections and joined a letter opposing the exclusion of immigrants from the omnibus relief package. We also signed onto an effort to ensure the Postal Service can remain fully functional during this crisis and beyond. The USPS is predicting that an economic recession could pose a “serious threat to the near-term viability of the Postal Service,” and has asked Congress to give USPS more than $7 billion each year for the next two years.

NCL joined allies at farmworker organizations in expressing concerns related to exposure of the largely uninsured, financially fragile farmworker community to COVID-19 and asking political leaders to be mindful of the unique concerns, considerations, and risks confronting farmworkers.

Looking ahead

NCL remains actively engaged in working to properly ensure that relief packages address the interests of consumers and workers. We are very pleased that Congress will be providing cash assistance to our most vulnerable, and we continue to push for salary and benefit protections, particularly for those workers in the most seriously impacted industries.

In the coming days, stay tuned for news of our Trumpeter Awards Dinner, which we will host in October. We will be sending out a Save the Date and announcing our award recipients shortly.

Best wishes for staying safe and healthy, from all of us at NCL.

Sally Greenberg
Executive Director
National Consumers League

NCL: #NeverMoreRelevant

National Consumers League statement on lack of airline passenger protections in COVID-19 relief bill

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March 26, 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, America’s pioneering consumer and worker advocacy organization, today called the Senate’s failure to include consumer protections for airline passengers in the COVID-19 relief bill a missed opportunity to protect the flying public. The bill, which passed the Senate on a 96-0 vote and appears headed toward passage in the House of Representatives, does not contain the passenger protections, supported by consumer groups, that were in Speaker Pelosi’s proposed bill.

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

“Airlines are canceling flights by the hundreds, leaving consumers who have spent hundreds or thousands of dollars on planned vacations and other travel high and dry. We are seeing disturbing reports that those customers, whose flights were canceled through no fault of their own, are being given the run-around by the airlines when they try to get a refund. A one-year flight voucher is of no use to consumers who don’t know when the current COVID-19 outbreak will subside.

In spite of this, the Senate approved a COVID-19 relief that did not require even the most basic of passenger protections of the airlines. While we applaud Congress for putting checks into the hands of the most vulnerable consumers and protecting the livelihood of millions of airline workers, it should have done more to protect the passengers who are the lifeblood of the industry. It is likely that this will not be the last time that the airlines come to Congress asking for a taxpayer bailout due to the COVID-19 outbreak. NCL will continue to press our elected representatives to ensure that consumers’ needs are not left unaddressed in the next relief bill.”

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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.

Special message from NCL’s Fraud.org about coronavirus scams – National Consumers League

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Special COVID-19 warnings: Scammers are pouncing on the opportunities presented by fear and uncertainty in our new environment. Don’t be a victim!

Fraud.orgIt’s a stressful time for consumers across the United States, with businesses closed, schools shut down, and more than a hundred million citizens under shelter-in-place orders. Unfortunately, scammers see this emergency as an opportunity to defraud consumers of hard-earned money we will all desperately need in the weeks and months ahead.

We’ve seen disturbing reports of all kinds of scams linked to the coronavirus epidemic, from sham “cures” being hawked on fly-by-night websites to phishing schemes seeking consumers’ mouseclicks with scary messages about economic collapse, and “pump and dump” schemes to get consumers to invest in coronavirus-related stocks.

With the end of the national emergency nowhere in sight, the situation with coronavirus scams is likely to get much worse before it gets better. Here at Fraud.org, we have many years of experience witnessing how scammers prey on citizens in times of disaster and distress, and we foresee challenging months ahead for consumers. But we are on your side, and we’ll be doing our best to bring you information you can use to spot and avoid these scams, as well as resources you can use to help protect your friends and family. For right now, here are some basic tips you can use to reduce your risk of becoming a victim:

  • Trust the experts. If a message you’re seeing is at odds with information being put out by trusted sources like the Centers for Disease Control, Federal Trade Commission, Food and Drug Administration, or your local health officials, there’s a high likelihood it’s a scam.
  • Check out this message from the FDA about Fraudulent Coronavirus Tests, Vaccines and Treatments.
  • You are likely to see messages urging you to act quickly, whether to buy a coronavirus “treatment” or send money for a can’t-miss investment. Remember that fraudsters try to get you to act before you think. Take your time.
  • In a time of social distancing, scammers will likely try to prey on consumers’ isolation to ensnare them in schemes like romance scams, lottery scams, or other scams where the criminals earn their targets’ trust over time.
  • Remember that scammers follow the headlines just like the rest of us. In particular, we expect scams promising COVID-19 stimulus checks to get more prevalent as the government’s coronavirus relief efforts ramp up.
  • The Federal Trade Commission has a wealth of information about coronavirus-related scams. Visit ftc.gov/coronavirus for up-to-date information.

NCL praises AG Barr for crackdown on COVID-19 scammers

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March 25, 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 applauding efforts by the Department of Justice and U.S. Attorney General William Barr to crack down on a wave of scammers and hackers trying to capitalize on the COVID-19 outbreak by ordering U.S. attorneys offices across the country to investigate and prosecute “all criminal conduct related to the current pandemic.” NCL greatly supports the move to make this a priority.

NCL operates a fraud prevention and education program, Fraud.org, working with law enforcement agencies in the U.S. and Canada to track trends in fraudulent activity. NCL also runs the Alliance Against Fraud, a coalition of nonprofits, government, and businesses dedicated to fraud awareness, prevention, and supporting criminal prosecution of fraudulent business practices. The League also works to advocate for science- and evidence-based claims about healthcare, foods, and dietary supplements.

As Barr noted earlier this week, “[i]n particular, there have been reports of individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud, reports of phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.”

“AG Barr is right; we’re seeing an upsurge in phishing emails purporting to be from public health organizations offering information on the coronavirus outbreak,” said NCL Executive Director Sally Greenberg. “During this time of vulnerability and uncertainty, consumers shouldn’t be left to fend for themselves in determining whether the claims they are seeing are true. We are pleased that the Trump Administration is taking the risks of scammers capitalizing on this global crisis seriously.”

In his letter, the Attorney General also pointed to recent reports about “malware being inserted onto mobile apps designed to track the spread of the virus.” Last week, an Android app called “COVID-19 Tracker App” surfaced. It’s actually a piece of ransomware designed to lock down access to a consumer’s phone.

“NCL continues to work to fight fraud, protect consumers, and collaborate with law enforcement to track and prosecute those who prey upon our citizens,” said NCL Vice President of Public Policy, Telecommunications and Fraud John Breyault. “Now more than ever, consumers need allies and watchdogs on their side to help protect them from predatory opportunists.”

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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.

National Consumers League statement on airline consumer protections in Take Responsibility for Workers and Families Act

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March 24, 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, America’s pioneering consumer and worker advocacy organization, today called on leaders in the U.S. Senate and House of Representatives to support the consumer protection provisions in the “Take Responsibility for Workers and Families Act,” (H.R. 6379) the COVID-19 relief legislation introduced by Congresswoman Nita Lowey (D-NY). These provisions would prohibit airline price gouging (Sec. 601) and require full cash refunds for cancelled flights (Sec. 602) during the national COVID-19 emergency. In addition, the bill would require that airlines provide quarterly reports to the Department of Transportation on the revenue they collect from baggage, change/cancellation, seat reservations, and other add-on fees.

NCL, along with a coalition of consumer and passenger rights groups, last week called on Congress to include a series of consumer protection measures in any airline bailout legislation. The proposed protections would address passengers’ concerns during the current emergency as well as broader structural issues in the airline industry going forward.

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

“A functioning airline industry is vital to America’s economy during this time of national emergency. Congressional leaders must not lose sight of the fact that passengers are the lifeblood of that industry. Congressional Democrats’ COVID-19 relief bill contains many, but not all, of the protections that airline passenger groups, including NCL, requested. While it is not a perfect bill, we urge leaders in the Senate and House to work together to ensure that the proposed protections are not watered down at the behest of the airline lobby as negotiations progress toward a final package.”

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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.

Idaho Patient Act a model for other states for protecting consumers from medical debt

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I spent a week last month in Boise with two members of the staff of Melaleuca—a company that makes more than 400 nutritional, cleaning, personal care, and cosmetic products—making lobbying visits to the Idaho legislature. Katie Hart and Jay Cobb work for Frank Vandersloot, CEO of Melaleuca. Vandersloot is a highly successful, conservative businessman who is committed to protecting Idaho residents from abusive medical debt collection practices after discovering that one of his employees was hit with thousands of dollars in bills—including hefty lawyers’ fees and court costs—based on a $294 medical debt that she couldn’t even identify. The stark reality is that 50 percent of bankruptcies in America are caused by medical debt. He was championing a bill called the Idaho Patient Act, House Bill 515.

Many people believe federal law provides broad protections for people in debt. While the federal Fair Debt Collection Practices Act (FDCPA), enforced by Federal Trade Commission, makes it illegal for debt collectors to use abusive, unfair, or deceptive practices when they collect debts, it doesn’t address how debts are calculated or curb predatory fees, penalties and court costs.

NCL has worked with Melaleuca for several years, first to fight a bill in Congress that would have essentially legalized pyramid scheme activity. Last October, I flew to Melaleuca headquarters in Idaho Falls to meet nearly half of the state’s legislators who came to town as part of their tour of businesses in Idaho. At that gathering, Vandersloot discussed his hope to pass a bill to address these predatory collection practices, aiming his fire at the practice of ginning up the cost to patients of medical debts with thousands in lawyers’ and court fees; often patients have no idea where the debt is from and debt collectors aren’t required to provide that information to them. The Idaho Patient Act addresses that issue.

Vandersloot also puts his money where his mouth is: not only did he propose a legislative remedy, he and his wife Belinda created a $1 million fund to provide legal counsel to Idahoans who have been hit with these attorney bills. Consumer advocates like NCL have been working for decades to curb the excesses of this industry. But to see  a conservative CEO take on this issue gives the effort a new push.

Sticking up for the little guy is not out of character for Vandersloot. He spoke with the same fervor when we worked together fighting a bill that would have legalized pyramid schemes. In neither case was there any financial reward coming to Melaleuca—Vandersloot took a stand on this issue because he felt it was the right thing to do. Though we may disagree on a host of other matters, on this we are aligned and that is a good thing for vulnerable consumers. Strange bedfellows are a big advantage when it comes to getting things done in the political arena.

Katie Hart has been wisely deployed to live and work in Boise while the legislature is in session and navigate this important bill through the complicated legislative process. She’s a smart and charismatic lawyer—she and Jay Cobb, an expert strategist, could teach Lobbying 101: they’ve met with the Idaho Hospital Association, Idaho doctors, insurance companies, and the Idaho trial lawyers and revised the bill to address their concerns. 

Specifically, the Idaho Patient Act proposes the following:

  1. All health care providers must submit all charges for procedures performed to an insurance carrier within 45 days.
  2. Within 60 days, the patient must receive a summary of services rendered during treatment and recovery, including the names and contact information for all entities that may be billing the patient separately, such as an individual doctor.
  3. All providers must then send a final statement with a total amount owed by the patient after insurance. The bill must correspond with the original list of services.
  4. Health care providers must wait 60 days after sending the final notice before charging a patient interest on an outstanding bill and hiring a collection agency. They must wait 90 days from the final statement before they take “extraordinary collection actions,” which means a lawsuit, or reporting a patient to a credit bureau for failure to pay.
  5. Finally, in medical debt cases that result in litigation, the legislation limits the amount attorney fees and costs that can be shifted to the patient to $350 for uncontested cases and $750 for contested cases. Currently, there is no official cap for fees that can be charged to delinquent patients by collection agencies and their representing lawyers.

In Boise, my first order of business was to register in the Idaho capitol building as a lobbyist, even though I was only going to be there for the day.  We wanted to do everything by the book! For $11 the Secretary of State’s office put me into the system and off we went.

Jay Cobb explained that Idaho is very conservative where rules or regulations are frowned upon. Of the 70 members of the Idaho House, 56 are Republican and some of those lean far right. 14 are Democrats. Of the 35 members of the Senate, only 7 are Democrat. The Governor is Republican, as is the Secretary of State and the Attorney General.

Katie and Jay have been working for months with elected officials, revising the bill without compromising its impact, and last week the measure was  reported favorably from the House Business Committee by a 15-2 vote (after a 5 hour hearing with many witnesses and terribly sad stories). Adding to the challenge of getting this bill enacted the second Vice Chair of the Republican Party in Idaho, and a member of the Idaho legislature were adamantly opposed to the legislation because as their egregious medical debt collection practices were epicenter of the problem.  Now the bill goes to the full House and over to the Senate.

While in the state house, we met with Senator Grant Burgoyne, a democrat who has provided legal representation to the collections industry. His observation? this bill would rein in “bad actors,” and the collections industry as a whole doesn’t oppose it. Senator Michelle Stennett, a democrat from Ketchum, told us about the challenges of getting what she thought were reasonable measures out of committee in Idaho because members are so loathe to pass any laws. The longest serving Democratic House member told us she believes the bill will pass, and the very smart and entertaining newly elected Boise Representative Steve Berch, who ran five times as a democrat in a red district and finally got elected, also predicts a positive outcome for this bill.  

To cap off the day, both U.S. Senators were in the State House and I had the chance to say hello to one of them, Senator James Risch (R-ID) and meet his DC staff.

The calculus changes when a conservative CEO with political clout backs a bill to offer protections to consumers who -through no fault of their own -have medical debt. Thanks to Frank Vandersloot, Katie Hart and Jay Cobb and the whole team at Melaleuca for making their case to the Idaho legislature so persuasively.

We hope this bill gets enacted in Idaho. If it does, the law will become a template for other states to put reasonable guardrails around collection of medical debt and offer some much-needed consumer protections. And maybe we can even hope that Vandersloot’s willingness to use his clout and bully pulpit to speak out on behalf of those who have no voice will be emulated by other CEOs.

Postscript

On March 9, the Idaho Senate passed the Idaho Patient Act 32-1. On March 16 Idaho Governor Brad Little signed the bill into law.

Congratulations to Frank Vandersloot, Melaleuca’s CEO, to his talented team of Katie Hart and Jay Cobb, and to all the members of the Idaho state legislature, who stood up for consumers and understood that one in seven Idahoans struggle with medical debt.

To quote the words on the Hanukkah dreidel, “A great miracle happened there.”

Consumer groups urge Congress to insist on consumer protections in airline taxpayer bailout

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March 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–A coalition of national consumer and passenger rights groups today called on Congress to include provisions in any contemplated airline industry bailout legislation that address both the immediate impacts of the COVID-19 outbreak on passengers as well as long-standing consumer protection concerns.

After years of record profits, the airline industry is now facing steep and painful financial headwinds due to the COVID-19 pandemic. In response, the industry has asked the Trump Administration and leaders in Congress for a bailout package of grants, loans, and tax relief reportedly totaling more than $50 billion. This includes $29 billion in grants, up to $25 billion in loans, three months of tax rebates and a repeal of aviation excise taxes through at least the end of 2021.

To address the immediate danger of the coronavirus and related passenger protection concerns during the national emergency, the groups urged Congress to require airlines to take steps to mitigate the spread of coronavirus on airplanes, require cash refunds for consumers who cancel flights or whose flights are canceled by the airline, require reasonable rebooking fares and increase call center staffing levels.

As advocates for consumers, the groups further urged Congress to heed the lessons of the 2008 financial crisis by including a slate of needed consumer protections such as making ancillary fees reasonable, restoring a private right of action, empowering state attorneys general to protect passengers, prohibiting further reductions in seat sizes, and ensuring equal access to fare, fee and schedule data.

“A commercially viable air transportation system is vital to the U.S. economy, but in the past decade the airlines have raked in $96 billion in profits on the backs of consumers with the implicit assurance that taxpayers would bail them out in the event of a major market disruption,” said Sally Greenberg, executive director of the National Consumers League. “If the airlines are going to run to Congress for a bailout when they could have invested in pandemic insurance or increased their cash reserves, then policymakers should require binding commitments to address long-standing consumer protection concerns.”

“After the terrorist attacks on 9/11, Consumer Reports supported taxpayer relief  for the airline industry, but urged Congress to require protections to address longstanding consumer complaints,” said William J. McGee, Aviation Adviser for Consumer Reports.   “Unfortunately, no such protections were included, and since then, the airlines have consolidated, become less consumer-friendly, and laid off hundreds of thousands of workers as their profits soared.  Meanwhile, consumers have had to put up with tighter seats, indifferent customer service, and an increasing number of costly fees. Consumers should not be left out now.”

“Restoring a private right of action is the one necessary structural solution to provide sufficient industry discipline to prevent airlines from trampling on all the rights and interests of their customers,” stated Business Travel Coalition chairman Kevin Mitchell. “The right to sue when harmed is fundamental and is one that the U.S. Congress never intended to have stripped from airline consumers when it deregulated the industry in 1978. Moreover, it is a right that consumers exercise in every other consumer-facing industry to discourage market participants from abusing their rights.”

“As air travel is the main way the coronavirus has quickly spread to become a global pandemic, airlines have a special obligation to strictly obey government guidelines to mitigate the pandemic even though this means less revenue and increased expenses in the short term,” said Paul Hudson, President, FlyersRights.org, Public Member, FAA Aviation Rulemaking Advisory Committee and Evacuation Advisory Rulemaking Committee. “DOT Secretary Chao must also strictly enforce the guidelines and abandon the agency’s weak enforcement of passenger rights. Congress at a minimum should repeal the exemption of airlines from consumer protection laws applying to all other businesses.”

“The last investment taxpayers made in the airline industry during a time of crisis was followed by record profits on the backs of consumers through less competition, transparency, passenger comfort and a proliferation of fees for services previously included in the price of a ticket,” said Kurt Ebenhoch, executive director of Travel Fairness Now. “This time, massive public assistance to the airline industry must be coupled with a meaningful commitment from the airline industry to passenger safety and consumer protection.”

“For years, the airlines have failed to place either passenger health and safety or passenger rights first, so Congress needs to require that they do,” said Ed Mierzwinski, U.S. PIRG Senior Director for Federal Consumer Programs.

“It’s time to put the public interest front and center as we take steps to address the immediate problems related to the COVID-19 pandemic and the airline industry in the long-term,” said Susan Grant, Consumer Federation of America’s Director of Consumer Protection and Privacy.

The letter was signed by the National Consumers League, Business Travel Coalition, Consumer Action, Consumer Federation of America, Consumer Reports, EdOnTravel.com, FlyersRights.org, Travelers United, Travel Fairness Now  and U.S. PIRG.

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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.

Business Travel Coalition

Founded in 1994, the mission of Business Travel Coalition is to interpret industry and government policies and practices and provide a platform so that the managed travel community can influence issues of strategic importance to their organizations. For more information, visit www.businesstravelcoalition.com

Consumer Action

Through education and advocacy, Consumer Action fights for strong consumer rights and policies that promote fairness and financial prosperity for underrepresented consumers nationwide.

Consumer Federation of America

The Consumer Federation of America (CFA) is an association of non-profit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, more than 250 of these groups participate in the federation and govern it through their representatives on the organization’s Board of Directors. CFA is a research, advocacy, education and service organization.

Consumer Reports

Consumer Reports (CR) is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests, including their interest in safe and affordable air travel. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.

EdOnTravel.com

A longtime travel expert, Ed helps consumers get the most from their travel dollar. His feature and Q&A columns give readers up-to-the-minute advice on everything from planning an itinerary for a European rail trip to booking flights, renting cars and buying travel insurance. Perkins also peppers his columns with valuable tips to avoid travel hassles.

FlyersRights.org

FlyersRights.org, established in 2007, is the largest airline passenger organization. It publishes a bi-weekly newsletter, operates a free hotline for airline passengers 877-FLYERS6, advocates for passenger rights and interests, represents passengers on the FAA Aviation Rulemaking Advisory Committee dealing with air safety, and maintains a staffed office in Washington, D.C. For more information, visit www.flyersrights.org

Travel Fairness Now

Travel Fairness Now is a non-profit coalition of 70,000 travelers advocating for greater transparency, competition and fairness in travel. For more information, please visit www.travelfairnessnow.org.

Travelers United

Travelers United is the only nonprofit, consumer travel organization dealing with air, rail, bus, rental car, cruise, and lodging.  With a presence in Washington, DC we regularly bring together the Department of Transportation, the Federal Trade Commission, congressional representatives, and major stakeholders to impact important issues on behalf of travelers. For more information, visit www.travelersunited.org

U.S. PIRG

U.S. PIRG, the federation of state Public Interest Research Groups, is a consumer group that stands up to powerful interests whenever they threaten our health and safety, our financial security, or our right to fully participate in our democratic society.

NCL applauds crackdown on sham coronavirus cures

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March 17, 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), America’s pioneering consumer and worker advocacy organization, today applauded the Federal Trade Commission (FTC) and Food and Drug Administration (FDA) for cracking down on vendors selling purported “cures” for the deadly coronavirus. In letters sent to seven companies, the agencies rightly warned that companies seeking to profit off of the “high level of anxiety” consumers are experiencing due to the coronavirus outbreak may be violating federal consumer protection statutes.

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

“Americans are right to be concerned about the spread of the COVID-19 coronavirus. Unfortunately, there are charlatans out there seeking to make a buck selling snake oil ‘cures’ for this deadly virus. These scammers are defrauding consumers of money they will need to weather the coming economic storm. Even worse, consumers who believe these fake cures will ward off or cure the coronavirus may delay obtaining needed medical care with potentially deadly results for themselves and those around them. That is why we are so grateful to the leadership shown by FTC Chairman Simons and FDA Commissioner Hahn in putting these purveyors of false hope on notice.”

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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.