Florence Kelley is smiling down upon Congress this week

NCL’s Florence Kelley, the towering reformer who headed the League from its first days in 1899 until her death in 1932, is surely smiling upon the U.S. House of Representatives this week.

In her time, Kelley worked tirelessly to pass federal anti-lynching laws in the United States. She was a powerful voice for racial justice and was raised in a fiercely abolitionist Quaker family. But she ran into enormous opposition and was continually angered and frustrated by the inability to get the federal proposal – the Dyer Anti-Lynching Bill – through Congress.  This legislation was first introduced in 1918 by Representative Leonidas C. Dyer, a Republican from St. Louis, Missouri, in the United States House of Representatives; the Act made lynching a federal crime. The Dyer Act did pass the U.S. House of Representatives in 1922, but was halted in the Senate by a filibuster by white supremacist Southern Democrats. In fact, since 1918, there have been 200 attempts to pass federal anti-lynching bills in the U.S. Senate.

But this week something historic took place. In a rare show of bipartisan support, the U.S. House of Representatives passed the federal Emmett Till Anti-lynching Act (H.R. 35), by a landslide 410 – 4 margin, named after 14-year-old Emmett Till, who was lynched in Mississippi in 1955. I’ve been to the Courthouse where his murderers were acquitted and have seen the tiny grocery store in Money, MS where he was accused of his crime: whistling at a white woman. It took nearly 100 years to fully turn around public opinion and gain overwhelming support for the idea that lynching should be—must be—recognized as a federal crime. Something Kelley always knew and supported.

The Senate has already passed its version Justice for Victims of Lynching Act (S. 488). In fact, the Senate bill passed by unanimous consent in December 2018 and again in February 2019, but because the House and Senate bills still have different titles and numbers, additional action is needed in the Senate before the legislation can go to the President’s desk. 

House Majority Leader Steny Hoyer reports that he expects President Trump to sign the bill into law shortly thereafter.    

Lynching plagued and terrorized mainly African Americans – but also Native Americans, Jews, Asians, and many others for so many decades. It’s a form of vigilante “justice” in which victims are kidnapped and executed in public, often by hanging, as punishment for suspected crimes or as a warning to others. According to the NAACP, there were 4,472 lynchings between 1882 and 1968, most of them involving blacks killed at the hands of white mobs. The House bill describes lynching as “a pernicious and pervasive tool that was used to interfere with multiple aspects of life — including the exercise of Federally protected rights,” and prohibits “conspiracies to violate each of these rights.” 

We owe a debt of gratitude to the House sponsor Representative Bobby Rush (D-Il) and Senate sponsors Sen. Cory Booker (D-NJ) Sen. Kamala Harris (D-CA), and Sen. Tim Scott (R-SC) for their leadership.

As Senator Booker noted, “Today brings us one step closer to finally reconciling a dark chapter in our nation’s history.” “Lynchings were used to terrorize, marginalize, and oppress black communities – to kill human beings in order to sow fear and keep black communities in a perpetual state of racial subjugation. If we do not reckon with this dark past, we cannot move forward. But today we are moving forward. Thanks to the leadership of Rep. Rush, the House has sent a clear, indisputable message that lynching will not be tolerated. It has brought us closer to reckoning with our nation’s history of racialized violence. Now the Senate must again pass this bill to ensure that it finally becomes law.”

At the National Consumers League and in honor of our first leader Florence Kelley, we applaud that justice is finally done with the passage of the nation’s first law making lynching a federal crime.

Imposter scams drive big increases in phishing and spoofing complaints in annual top ten scam report

February 27, 2020

At the start of National Consumer Protection Week 2020 (March 1-7), watchdog group issues warning about most common scams plaguing Americans 

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

Washington, DC—Consumers on the receiving end of scary calls and emails claiming that the government is coming after them drove a big increase in phishing and spoofing complaints to the National Consumers League’s Fraud.org campaign in 2019, according to the organization’s annual Top Ten Scams report issued today. With National Consumer Protection Week 2020 kicking off this weekend and being observed next week (March 1-7), the national consumer watchdog org is cautioning consumers against imposter frauds and the other most common scams that plagued Americans in 2019. 

In 2019, consumers submitted 5,647 complaints to Fraud.org. Fifty-three percent of complaints reported a monetary loss; the median loss reported was $749. 

In 2019, the percentage of complaints Fraud.org received about scams involving phishing or spoofing nearly tripled versus the previous year. NCL attributes the increase to the high number of imposter scam calls that consumers reported receiving. Scammers reportedly impersonated government agencies such as the IRS, FBI, and USCIS, and some of these criminals even claimed to be representatives of the National Consumers League.  

“Scammers know all too well that impersonating a government agency and threatening consumers is one of the best ways to get victims to pay up, and they depend on authentic-looking emails or spoofing Caller ID to get victims to pay attention to their threats,” said John Breyault, NCL Vice President of Public Policy, Telecommunications, and Fraud and the new report’s author. “The best advice for consumers is to remember that a government agency will never reach out to you via email or telephone to demand money, so hang up or delete. If you’re worried about back-taxes, your immigration status, or a debt you may owe, look up the phone number for the bank or government agency yourself and call to check. Don’t take the word of someone on the phone making threats.” 

Top Ten Scams of 2019

  1. Internet: Gen Merchandise
  2. Fake Check Scams
  3. Advance Fee Loans, Credit Arrangers
  4. Phishing/Spoofing
  5. Friendship & Sweetheart Swindles
  6. Prizes/Sweepstakes/Free Gifts
  7. Investment Related
  8. Computers: Equipment/Software
  9. Employ Agency/Job Counsel/Overseas Work
  10. Internet: Info/Adult Services

Other topline findings from the report include: 

Romance scams and friendship swindles on the rise in 2019. 

The percentage of complaints involving romance scams increased by nearly 50 percent versus 2018. This is especially worrisome considering that romance scams tend to be among the most expensive type of fraud for victims. 

Web remains most common place scammers are finding victims. 

While the telephone was the method of first contact used by scammers in nearly a third of complaints to Fraud.org in 2019, the Internet remains the most likely place for complainants to have encountered a scammer. Almost 45 percent of complaints to Fraud.org in 2019 said that they first encountered a scammer on the Web. 

Wire transfer no longer scammers’ top choice of payment method. 

After many years of wire transfer being the payment method of choice by scammers, credit cards bumped wire transfers as the most frequently-reported method of payment in 2019. More than 44 percent of complainants to Fraud.org reported that their loss occurred because a scammer charged their credit card. 

Read the full 2019 Top Scams report from NCL.

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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.

 

Consumer groups applaud House hearing on anti-consumer practices in the ticketing industry

February 26, 2020

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

Washington, DC—The National Consumers League, Consumer Reports, Sports Fans Coalition, Fan Freedom, and Public Knowledge commend Chairwoman DeGette and members of the House Oversight and Investigations Subcommittee for convening the hearing, “In the Dark: Lack of Transparency in the Live Event Ticketing Industry.” Rife with fraud, deceptive marketing prices, and opaque restrictions on transferability, the live event ticket marketplace is one of the least consumer-friendly marketplaces available.

“The live event market is rigged against fans. It is rigged by a billion-dollar ticketing monopoly, rigged by unscrupulous scalpers who continue to use illegal ticket bots, and rigged by artists and promoters who would rather point fingers than bring transparency to the marketplace,” said John Breyault, Vice President of Public Policy, Telecommunications, and Fraud for the National Consumers League. “They say that sunshine is the best disinfectant. It is our hope that today’s hearing will be a step toward cleaning up a broken industry and holding the executives who run it to account for their anti-fan business practices.”

“We’ve heard from thousands of people across the country frustrated with being ambushed by sneaky fees that jack up the price of event tickets,” said Anna Laitin, Director of Financial Policy for Consumer Reports. “Companies should be required to advertise ticket prices with all mandatory fees included so there are no surprises and consumers know exactly how much they’ll pay.”

“The same things that harm concert fans harm sports fans,” said Brian Hess, Executive Director of Sports Fans Coalition. “Fans deserve the right to transfer their ticket. Whether that is because they want to give a ticket to a family member, or try to sell it to recoup some costs if they can no longer attend the game. Restrictions on this right, ruin the fan experience and make it harder for fans, especially older fans, to enjoy the teams they’ve invested in.”

“Fan Freedom applauds the Oversight and Investigations Subcommittee for examining live event ticketing,” said Chris VanDeHoef, Fan Freedom President. “The industry is tilted in favor of the Live Nation Entertainment monopoly at the expense of music, sports and theater fans everywhere. We believe the BOSS Act begins the process of shifting power back into the hands of consumers.”

“Ticketmaster’s ability to leverage the ticketing portion of its business alongside the concert promotion portion of its business, Live Nation, is a classic example of anticompetitive behavior,” said Bertram Lee, Policy Counsel with Public Knowledge, “ Live Nation has refused to bring artists to venues that don’t use Ticketmaster, and this kind of anticompetitive behavior impacts both consumers and artists. Neither artists nor consumers who use Ticketmaster or Live Nation are able to take advantage of better prices or terms in the larger ticketing and venue marketplace.”

Many of the ills that plague this marketplace could be resolved by the passage of the Better Oversight of Secondary Sales and Accountability in Concert Ticketing Act (HR 3248) as introduced by Congressman Pascrell (D NJ-9). The bill would require ticket sellers to adopt all-in pricing instead of hitting consumers with several fees at the end of check out, prohibit non-transferable tickets, require disclosures of how many tickets are being sold to the general public, and many more vital consumer protections. Following today’s hearing, the National Consumers League, Consumer Reports, Sports Fans Coalition, Fan Freedom, and Public Knowledge urges each member of the committee to cosponsor the BOSS Act to adequately address the myriad of harms that will be brought to light during this hearing.

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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.

About Consumer Reports: Consumer Reports is the world’s largest independent product-testing organization. It conducts its advocacy work in the areas of privacy, telecommunications, financial services, food and product safety, health care, among other areas. Using its dozens of labs, auto test center, and survey research department, the nonprofit organization rates thousands of products and services annually. Founded in 1936, Consumer Reports has over 6 million members and publishes its magazine, website, and other publications.

About Sports Fans Coalition: Sports Fans Coalition was founded on the idea that sports fans deserve an advocate, someone who will stand up to the big sports leagues when they flex their political muscle, bully government officials or businesses, and attempt to harm the fan. Over the years, we have successfully supported fans across the country by overturning the Sports Blackout Rule; advocating for player safety; opposing publicly funded sports stadium construction unless fans receive a commensurate benefit, such as reduced ticket prices or free tickets for military personnel and retirees; protecting fans against ticket resale fraud; and drafting the Sports Bettors’ Bill of Rights, a set of consumer protections to promote safer sports betting.

About Fan Freedom: Fan Freedom is an organization comprised of entertainment and sports fans from around the country that support legislative proposals protecting the rights of fans and consumers.

About Public Knowledge: Public Knowledge is a consumer advocacy group that works at the intersection of copyright, telecommunications, and internet law to promote policies that serve the public interest. Public Knowledge advocates for freedom of expression, net neutrality, online privacy, affordable broadband access, digital platform competition, and other policies that benefit the public. In all our work, we endeavor to promote a creative and connected future for all Americans.

Consumer group urges additional action by DOJ and Congress to promote competition in the live event industry

December 20, 2019

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

Washington, DC –The National Consumers League (NCL), the nation’s pioneering worker and consumer advocacy organization responded to the Department of Justice’s settlement with LiveNation/Ticketmaster for engaging in anti-competitive practices in violation of their 2010 consent decree.  

The following statement is attributable to Sally Greenberg, executive director of the National Consumers League:  

Yesterday’s action by the Department of Justice to extend the 2010 Live Nation/TicketMaster consent decree by five and a half years was welcome news as it will prevent the ticketing giant from engaging in even more blatantly anti-competitive conduct. However, the DOJ’s action lacks the major fines, and additional structural and behavioral adjustments needed to bring transparency and competition to the opaque live event ticketing industry. Absent of these changes, Congressional action is sorely needed to fix the broken live event ticketing marketplace.  

Fortunately, the Better Oversight of Secondary Sales and Accountability in Concert Ticketing Act of 2019 (“BOSS ACT”), (H.R. 3248/S. 1850) which is currently pending in the House and Senate, will provide a comprehensive fix to the ticketing mess. The Boss Act will end deceptive holdbacks and egregious undisclosed ticket fees. It will also require transparency on whether ticket sellers are affiliated with a venue and ensure that ticket holders can sell or give their ticket away as they see fit without extra fees. The time for Congressional action is long overdue. The system is rigged against consumers and that must change.  

While we remain hopeful that yesterday’s actions by the DOJ are just a first step, we will continue to urge members of Congress to fix once and for all the broken live event ticketing system.

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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 passage of two consumer protection bills

December 19, 2019

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

Washington, DC–The National Consumers League, the nation’s pioneering consumer and worker advocacy organization today applauds Senators Markey (D-MA) and Thune (R-SD)  and Representative Pallone (D-NJ) for the passage of the TRACED Act, and Senator Markey (D-MA) and Representative Eshoo (D-CA) for the passage of the TRUE Fees Act. The Traced Act will provide regulators with the tools they need to crack down on illegal robocalls and the TRUE Fees Act will require cable and satellite TV providers to disclose an “all-in” price for their services.  

The following statement is attributable to NCL Executive Director Sally Greenberg:

“The Passage of the Traced Act and the TRUE Fees act is a win for consumers. Because of these bills, the days of cable companies slamming consumers with hidden fees are numbered, and relief from illegal robocall scams is on the way. NCL applauds the passage of these bills and urges President Trump to quickly sign them into law.”

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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 House passage of safety bills

December 17, 2019

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

Washington, DC–The National Consumers League applauds the passage by the House of Representatives of three bills to protect consumers, all of which came from the Energy and Commerce Committee.

“We are grateful for the leadership of Chairman Pallone and Subcommittee Chair Schakowsky in getting these bills through the Committee and to the House floor for passage,” said NCL Executive Director Sally Greenberg. “The House is taking an important in protecting Americans—especially our children—from dangerous products and protecting consumers from overseas scams.  Children are the most vulnerable consumers, and they need our advocacy. Products that prove dangerous to their health and wellbeing – like inclined sleepers and crib bumpers – should no longer be on the market, and we hope the Senate takes up these bills immediately. Thanks once again to the bipartisan efforts through the Commerce Committee and full House leadership for these important consumer protection measures.”

The House passed the following bills:

H.R. 4779, a bill to extend the Undertaking Spam, Spyware, And Fraud Enforcement With Enforcers Beyond Borders Act of 2006, reauthorizes the U.S. SAFE WEB Act, which improved the Federal Trade Commission’s (FTC) ability to combat unfair or deceptive acts or practices that are international in scope, through Fiscal Year 2027 and requires the FTC to issue a report to Congress describing the Commission’s use of and experience with the authority granted by the Act. 

H.R. 2647, the “Safer Occupancy Furniture Flammability Act” or “SOFFA,” adopts the California upholstered furniture flammability standard as a national flammability standard for upholstered furniture to limit exposure to toxic flame retardant chemicals. 

H.R. 3172, the “Safe Sleep for Babies Act of 2019,” designates inclined sleepers for infants as banned hazardous products under the Consumer Product Safety Act. The bill was amended to include the text of H.R. 3170, the “Safe Cribs Act of 2019,” which also designates crib bumpers as banned hazardous products.

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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 welcomes DOJ enforcement of Live Nation consent decree

December 16, 2019

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

Washington, DC–The National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization welcomed the news that the United State Department of Justice (DOJ) is reportedly preparing legal action against Live Nation Entertainment Inc. to crack down on anticompetitive conduct in the live event marketplace. In 2009, NCL led a coalition of consumer groups, independent promoters, and venue owners in opposition to the Ticketmaster-Live Nation merger. Since the merger was approved in 2010, NCL has continued to advocate for fairness and transparency in the live event ticketing marketplace. 

The following statement is attributable to NCL Vice President of Public Policy, Telecommunications and Fraud John Breyault:

“The DOJ’s interest in reining in Live Nation’s abuses is a welcome development, and long overdue. While robust enforcement of the consent decree may help, it won’t solve the entrenched ticketing industry practices that cause untold frustration for consumers. This is just the latest sign that the DOJ’s approval of the original Ticketmaster-Live Nation merger was the wrong decision.  Anyone who has tried to buy tickets knows that the live event marketplace, dominated by Live Nation, is rigged against fans. Congressional action to rein in abuses by Live Nation and others in the live event marketplace is necessary to restore sanity and fairness to the ticket-buying experience.” 

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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.

Enough is enough! It’s time for the FTC to protect consumers from deceptive automatic renewal clauses

Brian Young

If you’re like most Americans ,you have probably had a bad experience with an automatic renewal oras they are sometimes referred toa negative option clause. Regardless of the name they go by, these clauses cause contracts and subscriptions (ranging from equipment leases to gym memberships) to renew if a consumer fails to cancel the contract. Unfortunately for consumers, these clauses are increasingly being slipped into the fine print of contracts or misleadingly disclosed to customers during the checkout process.  

Some companies take this practice a step further by offering a free or low-fee trials to a customer only to later lock them into an expensive and lengthy contract without obtaining their informed consent. One survey found that this has happened to 59 percent of consumers, and that number appears to be growing. A Better Business Bureau study of FTC complaint data found that complaints about free trials doubled between 2015 and 2017. With the average loss rates for deceptive free trials reaching $186 per incident, it is clear that action is sorely needed.

While states like California and the District of Columbia have taken steps to protect their residents from these disreputable “gotcha” clauses, a majority of Americans still lack adequate protections. Some businesses will not only utilize deceptive negative option clauses, but also place unnecessary barriers in the cancelation process to prevent consumers from managing or canceling their subscriptions and contracts. Indeed, nearly 42 percent of Americans have complained about the difficulty companies have created  in the cancellation process.

Thankfully, the Federal Trade Commission (FTC) is finally considering improving consumer protections in this space. While the FTC already offers a few modest protections through laws and regulations like the Restore Online Shoppers Confidence Act (ROSCA), a series of loopholes exist, allowing companies to mask rate hikes, roll consumers into lengthy trials without their informed consent, and hide these clauses in the fine print.

To help encourage the FTC to require meaningful protections, NCL recently filed a comment letter urging the Commission to:

  • Require clear and conspicuous disclosure of any automatic renewal clause, regardless of where or how the consumer enters into it;
  • Require companies to provide meaningful notifications prior to any contract or subscription renewal;
  • Ensure that businesses receive a consumer’s consent for their free or low-fee trial to be rolled over into a contract; and
  • End the practice of businesses making it difficult for consumers to amend, manage, or cancel their subscription.

NCL believes that the FTC has a real opportunity to extend long overdue automatic renewal protections to all Americans. As more companies incorporate the use of negative option clauses in their contracts, consumers need meaningful notifications and protections that ensure that they remain in control of their financial decisions. A strong FTC negative option rule will ensure that businesses compete over quality and price, not over who can create the most painful cancellation procedures or earn the most revenue by slamming consumers with unexpected and costly contracts. The time is now for the FTC to act.

Read NCL’s full comment filing here (PDF).

NCL applauds Congressional oversight of the live event ticketing industry

November 22, 2019

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

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

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

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

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

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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 FTC action to reign in deceptive marketing in the wireless industry

November 5, 2019

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

Washington, DC—Today, the National Consumers League, the nation’s pioneering consumer and worker advocacy organization applauded the Federal Trade Commission (FTC) for its successful investigation and settlement with AT&T after the wireless provider misled millions of its customers. In 2014, the FTC found that AT&T had secretly slowed down or “throttled” consumers’ Internet speeds on their supposedly “unlimited” plans and then charged consumers early termination fees if they wanted to switch providers to receive better service. As a result of thsettlement, AT&T will create a $60 million dollar settlement fund that will be paid out to current and former users of AT&T’s “unlimited” plan. 

The following statement is attributable to Sally Greenberg, executive director of the National Consumers League: 

“When consumers are promised unlimited data, they should receive unlimited data. AT&T’s policy of slowing down consumers data, to the point where they could no longer stream videos after using as little as two gigabits of data, is a classic example of bait and switch. NCL applauds the FTC’s efforts to protect consumers from false advertising and unscrupulous business practices in the wireless industry. NCL looks forward to seeing the FTC take additional steps to ensure that the marketplace remains fair and honest for all consumers.”

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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.