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.

Florence Kelley is smiling down upon Congress this week

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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

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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

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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.

New National Consumers League podcast We Can Do This! explores current, historic socioeconomic reform in America

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January 16, 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), the nation’s pioneering worker and consumer advocacy organization, has launched a podcast called We Can Do This!, produced by District Productive and hosted by NCL Executive Director Sally Greenberg and other members of NCL policy staff. 

In We Can Do This!, NCL and justice-minded, expert guests explore current socioeconomic issues at the heart of American political and cultural battles before a backdrop of the historic and ongoing advocacy and activism that help pave the way for meaningful policy reform. 

We Can Do This! episodes span the breadth of NCL’s wide mission and issues, including; healthcare, data and privacy, food and nutrition, labor, finance, and other topics. 

A first batch of episodes featuring individuals who are helping to shape the nation’s social and economic reforms have been released:   

E1-2: Crashing through the glass ceiling with two dynamos of women’s rights law—parts 1-2 

With Judith Lichtman, president emeritus and senior advisor of the National Partnership for Women and Families and Marcia Greenberger, founder and co-president of the National Women’s Law Center 

E3: Ending the scourge of child labor 

With Kailash Satyarthi, anti-child labor crusader and Nobel Laureate 

E4: Measles, it ain’t over until it’s over 

With Dr. Linda Fu, general pediatrician at Children’s National Health System 

E5: Sorry, fair pay and a safe workplace aren’t on the menu 

With Diana Ramirez, federal senior policy advocate at Restaurant Opportunities Center (ROC United) 

These five episodes are available now on Apple Podcasts and Google Podcasts, and the remainder of the 11-episode series will be released in early 2020. 

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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.

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

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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.