NCL staff attends consumer protection brownbag

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By Sally Greenberg, Chief Executive Officer, NCL

On June 25, 2024, the National Consumers League (NCL) joined the Consumer Protection Brownbag event, moderated by Adam Teitelbaum, the Director of the Office of Consumer Protection at the DC Attorney General’s Office.

I shared the history and mission of NCL and discussed our more recent successes, including NCL’s advocacy role for workers in DC receiving minimum wage through the “One Fair Wage” initiative and the Federal Aviation Administration Reauthorization Act of 2024, which now includes automatic refunds for flight cancellations and excessive delays and the elimination of fees for parents to sit with their children. We also discussed anti-trust concerns with the Ticketmaster-Live Nation merger and the ongoing lawsuit involving the DOJ and DC OAG. Moreover, I spoke about our case against Starbucks for false claims regarding ethically sourced products. Finally, I covered a range of consumer protection efforts, from fraud prevention and unit pricing enforcement to proposed alcohol labeling reforms.

Erin Witte, Director of Consumer Protection at the Consumer Federation of America (CFA), spoke about the mission of CFA and her personal journey from criminal lawyer to consumer protections advocate. She outlined CFA’s current focus areas, including tackling junk fees, combating forced arbitration clauses that limit consumers’ legal recourse, and advocating for product safety, food and alcohol regulations, investor protection, and insurance reforms. She also discussed the link between credit scores and car insurance, and how this association is one of the primary drivers of rising insurance costs. Witte highlighted CFA’s collaboration with regulatory agencies to address these pressing consumer issues.

Witte, Teitelbaum, and I responded to questions during the question and answer session about the obstacles faced by attorneys and advocates pursuing consumer protections and how the possible changes in administrative deference could affect the future of consumer protection.

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Advocates call on Biden Administration to act on airline passenger protection mandates

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May 28, 2024

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

WASHINGTON, DC – With the summer travel season under way, consumer and passenger rights advocates today called on the Biden Administration to act expeditiously on consumer protection rulemakings and other actions mandated by the recently enacted Federal Aviation Administration (FAA) reauthorization language. In a letter to President Biden and Secretary Buttigieg, the groups urged the Administration to prioritize the following actions:

  • Nominating a pro-passenger Assistant Secretary of Aviation Consumer Protection;
  • Ensuring that the FAA establishes minimum seat size standards for air carriers;
  • Improving reporting of the causes of flight delays to the U.S. Department of Transportation (DOT);
  • Ensuring that customer service channels are staffed by humans; and
  • Completing an independent non-partisan study of airline industry consolidation.

“Beginning the hard work of making airline travel less frustrating for passengers should not wait for the next election,” said John Breyault, Vice President of Public Policy, Telecommunications, and Fraud at the National Consumers League (NCL), which organized the letter. “Congress gave the Administration an aggressive timeline for implementing the new law, and we do not want these important new protections to be slow walked.”

“Both parties and both Houses of Congress put forth key protections for consumer advocacy, competition, and safety,” said William J. McGee, Senior Fellow for Aviation & Travel at American Economic Liberties Project. “In the past we’ve seen legislation that was not fully acted upon, and we urge the Biden Administration to swiftly and decisively implement these new laws.”

“The message from Congress is clear: the Administration must promptly take concrete steps to improve air travel for Americans,” said Erin Witte, Director of Consumer Protection for Consumer Federation of America. “Rather than waiting or delaying, the Administration should push forward and prioritize the implementation of the Reauthorization Act.”

“Congress has done its job and now it’s time for the Administration to do theirs,” said Teresa Murray, Consumer Watchdog Director at U.S. PIRG. “As we saw during COVID, our economy and our quality of life relies a lot on safe, reliable air travel. We’re eager to see these changes enacted quickly in hopes that air travel will become pleasant again.”

“Since 2007, FlyersRights as the largest airline passenger organization has been advocating for many of the provisions in this legislation,” said Paul Hudson, President of FlyersRights.org. “But while Congress previously required the FAA to enact numerous measures such as minimum seat size in 2018, FAA and DOT have often failed to act on Congressional mandates. This time must be different!”

The letter was signed by nine consumer and passenger advocacy organizations, including the American Economic Liberties Project, Consumer Action, Consumer Federation of America, Consumer Reports, FlyersRights.org, National Consumers League, Public Citizen, Travelers United, and U.S. Public Interest Research Group.

To read the full letter, click here.

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About the National Consumers League (NCL)

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

NCL statement on DOJ suit against Live Nation Entertainment

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May 23, 2024

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

WASHINGTON, DC – The National Consumers League (NCL) today hailed the Department of Justice’s (DOJ) reported decision to file an antitrust suit against Live Nation Entertainment, the parent company of Ticketmaster.  

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

“In 2010, the Department of Justice decided that allowing Ticketmaster to swallow up its largest competitor could be a net positive for live event fans. The last fourteen years have proven beyond any reasonable doubt that the DOJ’s bet was dead wrong. Today’s action begins the long-overdue process of correcting that error and upholding the law. We will be closely monitoring this case to ensure that the result this time is a fairer and more competitive industry for fans and all the stakeholders in the success of live events.” 

Since 2010, NCL has pursued policies that promote stronger consumer protection policies that benefit live event fans at the local, state, and federal levels. In 2016, NCL was one of the leading advocates for the BOTS Act, federal legislation that outlawed the use of ticket buying “bot” software. Since 2019, the average cost of a concert ticket to the top tours in North America increased from $87 to $104, due in large part to added fees, dynamic pricing, and other factors. NCL’s advocacy has contributed to landmark fan protection legislation in eight states. We continue to speak out in support of pro-consumer ticketing bills like the federal TICKET Act (H.R. 3950), which recently cleared the U.S. House of Representatives on a bipartisan 388-24 vote. 

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About the National Consumers League (NCL)

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

NCL urges Congressional action at hearing on Zelle and fraud

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May 21, 2024

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

WASHINGTON, D.C. – The National Consumers League (NCL) today urged Congress to move swiftly to enact new laws that will put a significant dent in the billions of dollars in fraud that occur annually via peer-to-peer (P2P) payment apps. In testimony before the Senate’s Permanent Subcommittee on Investigations, NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault described fraud as reaching “crisis levels,” with estimates of annual losses to fraud exceeding $137 billion.  

“The same factors that have made P2P services popular with consumers – access via mobile device and near-instantaneous payment – have also attracted a tsunami of scammers,” said NCL Vice President John Breyault. “Unfortunately for consumers, the P2P services have failed to keep pace with this threat.” 

Breyault’s testimony focused on the unique role that P2P apps play in this fraud and the lack of consumer protections that result in the cost of scams falling on individual consumers. 

“Relying on consumers to accurately spot and resist fraudulent schemes run by sophisticated, professional criminals is unlikely to yield a more secure P2P payments system,” said Breyault. “We urge Congress and the Consumer Financial Protection Bureau to adopt regulations that put the onus for securing P2P platforms like Zelle where it belongs – on the banks and platforms themselves.” 

This is the second time this year NCL Vice President John Breyault has appeared before the Senate to advocate for stronger protections against fraud in our financial system. His full testimony can be found here.

Additional reading:

  • NCL VP testifies before Senate Banking Committee on the need for better protections against scams 
  • NCL releases Top Ten Scams report for 2023 fraud trends 

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About the National Consumers League (NCL)

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

NCL applauds Supreme Court for siding with consumer protection in upholding CFPB’s constitutionality

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May 16, 2024

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

Washington, DC – The National Consumers League (NCL) is pleased to celebrate the victory for consumers in today’s Supreme Court decision. In upholding the constitutionality of the Consumer Financial Protection Bureau’s (CFPB) funding structure, the Court has rejected extremist legal theories and allowed the agency to continue its important work to maintain a fair financial marketplace and promote economic and racial justice.

“The Supreme Court delivered a blow to the payday lending industry who challenged the CFPB’s funding for their own commercial gain. This is good news for consumers across the country,” said Sally Greenberg, NCL’s CEO. “The Court’s ruling clears a cloud over agency’s work and makes clear that financial regulators will not be gutted on behalf of special interests.”

The Bureau’s funding structure was key to its independence from short-term political agendas, similar to the Federal Reserve Board and other key regulators. Without the CFPB, consumers would be vulnerable to a slew of junk fees, predatory collection practices, and unfair application processes for some of their biggest financial decisions.

Further reading:

  • NCL statement on Fifth Circuit decision to invalidate CFPB’s independence
  • NCL applauds the CFPB’s effort to prohibit junk fees in financial services
  • NCL supports CFPB’s proposal to remove medical debt from credit reports
  • NCL applauds decisive action by CFPB against fraudulent payments processor
  • NCL supports confirmation of Rohit Chopra as CFPB director
  • Leading consumer groups call on FTC and CFPB to update study on accuracy of consumer data

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About the National Consumers League (NCL)

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

NCL applauds Congress’s passage of aviation consumer protection improvements

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May 16, 2024

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

Washington, DC – Yesterday, the House of Representatives passed a bill to reauthorize the Federal Aviation Administration (FAA) through 2028, sending it to the president. The legislation includes a number of wins for the millions of consumers who travel by air every year: airline vouchers cannot expire in less than five years, caregivers can sit with their minor children without paying an extra fee, and passengers will automatically receive a refund if their flight is cancelled.

The measure also strengthens the Department of Transportation’s (DOT) ability to hold air carriers accountable when they break the law by tripling the maximum civil penalty the Department may impose and creating an assistant secretary position for aviation consumer protection.

“The National Consumers League is grateful to the negotiators of this bill for working to improve the flying experience,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “Without support from Senator Cantwell, Senator Cruz, Representative Graves, Representative Larsen, and their diligent staff, these important new consumer protections would not have made it to President Biden’s desk.

“We look forward to the president signing the bill into law and a robust enforcement regime from DOT. Particularly, we expect the FAA to act on its mandate from Congress to establish minimum seat sizes on airplanes—a directive Congress has given the agency twice now.”

Unfortunately, Congress missed a significant opportunity to enact structural change in how airlines are regulated. The airline industry still enjoys extraordinary privileges and remains protected from Federal Trade Commission and state government oversight. A tax break for add-on fees remains in place, encouraging air carriers to generate revenue from added charges instead of the base fare. And a provision that would have established bare-bones safeguards around the devaluation of frequent flyer rewards was stripped from the bill.

While there is still work to be done, the flying public undoubtedly secured important wins in this reauthorization. NCL is appreciative of the allies to consumers who championed our priorities on the Hill and we will continue to advocate for passengers as the legislation is implemented in the coming years.

Further reading:

  • Consumer advocates support federal review of air industry’s data collection practices
  • Full list of consumer and public interest advocates’ priorities for the FAA reauthorization
  • Consumer groups call for a moratorium on smaller airplane seats pending FAA safety review

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About the National Consumers League (NCL)

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

NCL supports AI liability rule, recommends extending its reach

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May 2, 2024

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

Washington, DC – This week, NCL and six other consumer advocacy and public interest organizations submitted comments in support of a Federal Trade Commission proposal that would establish legal liability for AI developers who know (or have reason to know) that their AI is facilitating fraud.

The FTC’s proposed rule would enable the agency to crack down on scams that use deepfakes and voice cloning. It would also help to fill a glaring gap in its ability to hold impersonation frauds accountable, like romance and grandparent scams. This hole in the Commission’s capacity to return funds to victims of fraud is a direct result of the Supreme Court’s decision in the 2021 AMG Capital Management v. FTC case.

“While some AI developers implement safeguards to prevent the misuse of their products, many do not,” said NCL Public Policy Manager Eden Iscil. “The FTC’s initiative in this space should put companies on notice that they cannot put out unregulated AI tools and allow criminals to supercharge their frauds with them.”

Recent trends have shown the urgent need for the FTC to have strong enforcement options to combat impersonation fraud. NCL’s Top Ten Scams report for 2023 found significant consumer losses attributed romance and family-and-friend imposter fraud, with victim complaints showing median losses at $8,000 and $1,040, respectively. Generative AI, including text generation, voice cloning, and visual deepfakes, can enable these scams to be significantly more effective. The Federal Bureau of Investigation noted a 322% increase in sextortion reports between 2022 and 2023, attributing much of the increase to the proliferation of AI tools.

The Center for American Progress, Consumer Action, Consumer Federation of America, Electronic Privacy Information Center, the National Association of Consumer Advocates, the National Consumer Law Center, and NCL urged the Commission to clarify that the liability for AI developers in facilitating fraud should also apply to companies that provide scammers access to AI tools, even if the companies did not develop the AI themselves. The full comments can be found here.

Additional reading:

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About the National Consumers League (NCL)

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

NCL on Upcoming Congressional Hearings with UnitedHealth Group CEO Andrew Witty

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April 30, 2024

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

Washington, DC – Tomorrow, the Senate Finance Committee and House Energy and Commerce Committee will hear from UnitedHealth Group CEO on the insurance company’s cyberattack that put millions of medical records and patient privacy at risk.

The cyberattack is, of course, cause for concern, but there are also several other ways major insurance companies like UnitedHealth Group are hurting consumers. These companies have taken over the prescription drug marketplace – they are integrated with the pharmacy benefit managers (PBMs) who gatekeep our prescriptions, limiting access and increasing out-of-pocket costs.

Here are the top questions American consumers deserve answers to:

  • How will your company work to not only protect patient data going forward, but also protect patient choice and power in their healthcare decision-making?
  • Can you explain the relationships and makeup of UHG, Optum Rx, and Optum Health? How does this vertical integration give consumers a fair choice when it comes to their health when there is a clear incentive to keep patients – and thus profit – in the UHG family?
  • UnitedHealth Group’s PBM Optum Rx claims to benefit consumers by negotiating rebates with drug manufacturers – why, then, aren’t consumers experiencing lower costs at the pharmacy counter?
  • How much does Optum Rx collect each year in rebates from drug manufacturers? How much profit does the UHG corporation rake in from prescription drug purchases?
  • Is UHG aware of the significant health and financial challenges that prior authorization requirements impose on consumers and their families?

The insurance industry is riddled with poor incentives that ultimately hurt consumers. Lawmakers have an opportunity this week to shine a light on these problems. We need bipartisan reforms to give consumers more power when it comes to their prescriptions, and ultimately, their health.

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About the National Consumers League (NCL)

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

Consumer groups welcome protections in FAA reauthorization agreement, urge continued improvements

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April 29, 2024

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

Washington, DC – Today, U.S. House and Senate negotiators released their bipartisan and bicameral compromise bill to reauthorize the Federal Aviation Administration (FAA). As consumer and public interest advocates, we are grateful to members of Congress who are utilizing this opportunity to implement meaningful safeguards to the flying experience. However, as the last few years have demonstrated, there is a need for even more protections to address the extreme hardships that passengers have been forced to endure. Given the limited opportunity to enact reforms in the five-year cycle of the FAA reauthorization, we strongly urge Congress to enact amendments to further strengthen the bill before its final passage. 

“Consumers are notching significant wins in this package, but there is still work to be done to fix a broken airline industry,” said John Breyault, NCL Vice President of Public Policy, Telecommunications and Fraud. “Tripling civil penalties, codifying DOT’s authority to issue important consumer protection rules, prohibiting family seating fees, and creating an Assistant Secretary position charged with protecting airline passengers will all have meaningful impacts on the flying experience. There is more that can be done as this bill heads to the floor, including requiring airlines to maintain 24/7 customer service telephone lines, protecting against the devaluation of frequent flier benefits, and codifying DOT’s ability to protect consumers from unrealistic airline scheduling practices. We look forward to working with leaders in Congress on this important issues.”

“Considering this bill was expected eight-plus months ago, you might have thought House and Senate negotiators would have taken the extra time to include all of the meaningful protections airline passengers deserve,” said Teresa Murray, Consumer Watchdog Director with U.S. Public Interest Research Group. “We’re particularly concerned with the absence of some provisions that would make air travel less burdensome, such as fee transparency.”

“Airline passengers will achieve some real gains in this bill and we look forward to seeing continued progress to strengthening the bill to include compensation for consumers,” said Ruth Susswein, Consumer Action’s Director of Consumer Protection.

“This legislative package includes some important steps forward for air travel consumers and ensures that some existing protections are not weakened,” said Erin Witte, director of consumer protection for Consumer Federation of America. “As this bill moves toward passage, we urge Congress to take full advantage of the opportunity to make it as strong as possible.”

Importantly, there are several boons for consumers in this version of the reauthorization, including:

  • Establishing a permanent office of consumer protection at the Department of Transportation, headed by a Senate-confirmed assistant secretary;
  • Requiring airline vouchers to be valid for at least five years;
  • Tripling the amount DOT can fine airlines for law violations;
  • Requiring air carriers to allow families to sit together with no extra charge;
  • Commissioning a Government Accountability Office study on competition and consolidation within the industry.

As it heads to the Senate floor, passenger advocates are urging senators to protect those provisions while supporting additional amendments that were included in previous versions of the House and Senate reauthorization bills, including: 

  • Requiring airlines to provide cash refunds for cancellations and significant delays automatically, without the need for consumers to navigate often-complicated refund processes; 
  • Eliminate a loophole that would allow FAA to avoid creating safe and humane seat size dimensions; 
  • Provide DOT with clear authority to regulate unrealistic and deceptive flight schedules; 
  • Codifying DOT’s authority to mandate ancillary fee transparency; 
  • Directing FAA to study the impact of shrinking seats sizes on the safety of airplane evacuations and passengers with disabilities.

Additional reading:

  • Full list of consumer and public interest advocates’ priorities for the FAA reauthorization
  • Consumer groups call for moratorium on smaller airplane seats pending FAA safety review

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About the National Consumers League (NCL)

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

Consumer advocates support federal review of air industry’s data collection practices

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April 29, 2024

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

Washington, DC – Today, a coalition of seven consumer and public interest advocacy organizations sent a letter to the U.S. Department of Transportation supporting the agency’s review of airline and ticket agents’ data collection practices.

The coalition outlined several areas concerning passenger privacy that DOT should examine, including:

  • How airlines collect consumer data from their websites and mobile apps, including sensitive data like precise location information and web browsing activity
  • How airlines collect and use consumer data in relation to their mileage and rewards programs
  • How airlines collect and use consumer data in relation to the New Distribution Capability system

Additionally, the coalition urged DOT to explore permanent mechanisms for consumers to have better control over their own data, such as requiring aviation companies to follow data minimization principles, implementing transparency requirements around industry actors’ data practices, and creating tools for consumers to exclude themselves from those practices.

Airlines currently enjoy unique privileges that almost no other industry in the nation has. The U.S. Department of Justice, the Federal Trade Commission, and state governments are unable to hold air carriers accountable for violations of consumer protection and civil rights laws—only DOT has this authority.

The signatories to the letter are the American Economic Liberties Project, Consumer Action, Consumer Federation of America, Ed Perkins on Travel, FlyersRights, the U.S. Public Interest Research Group, and the National Consumers League. The full letter can be found here.

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About the National Consumers League (NCL)

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