NCL applauds House passage of safety bills

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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.

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

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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

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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

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Brian Young

If you’re like most Americans ,you have probably had a bad experience with an automatic renewal or—as they are sometimes referred to—a 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

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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.”

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

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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

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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 the settlement, 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.

Computer chip defects force consumers to choose between speed and security

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October is National Cybersecurity Awareness Month! Since the first observation of this month 15 years ago, the world has gone from about 800 million Internet users to approximately 4.5 billion. Over that same period of time, there has been an extensive amount of time and energy dedicated to improving cybersecurity and cyber hygiene.

Sadly, despite those good faith efforts, it does not appear that consumers have become safer. In fact, it is clear by now that most individuals have, in one way or another, been affected by some sort of hack or data breach—either on a personal computer or through a company that they have entrusted with their sensitive information.

To make matters worse, beyond the heightened cyber threat environment that exists today, a new hardware-based vulnerability found in almost every processor in the world has recently emerged, and it is making it increasingly difficult for consumers to keep their data protected.

A new report released by the National Consumers League’s #DataInsecurity Project, “Data Insecurity: How One of the Worst Computer Defects Ever Sacrificed Security for Speed,” discusses the threat these processor flaws pose to consumers—both in terms of the security of their data and the performance of their computer after security patches are applied—and how they can protect themselves in the future.

The report details seven publicly disclosed exploits, known as “Spectre,” “Meltdown,” “Foreshadow,” “Zombieload,” “RIDL,” “Fallout,” and “SWAPGS,” that take advantage of the flaws found in CPUs manufactured by AMD, ARM, and Intel. While Spectre affects all three major chip manufacturers, all six subsequent exploits largely affect only Intel processors.

The exploits, in short, can allow a hacker to obtain unauthorized access to privileged information. And while patches have been released alongside each exploit, they have led to a decrease in computer speed and performance—as much as 40 percent according to some reports. In addition, the patch is only good until the next exploit is discovered.

The flaws create a real challenge for consumers: apply each temporary “fix” as new exploits are discovered and risk slowing down your device, or don’t and put your sensitive information at risk. And consumers who apply patches remain at the mercy of companies that hold their sensitive data and are faced with a similar dilemma, particularly as they must consider the expenses of implementing these fixes—including costs to add computing power lost by each patch.

The report concludes that the best protection for consumers is to buy a new computer that has a CPU with hardware-level security fixes or is immune from some of the exploits. Unfortunately, this is not practical for many consumers. Therefore, consumers are advised to perform frequent software updates. NCL is also strongly supporting data security bills, such as the Consumer Privacy Protection Act of 2017, which would require companies to take preventative steps to defend against cyberattacks and data breaches and to provide consumers with notice and appropriate protection when a data breach occurs.

As we mark this year’s National Cybersecurity Awareness Month, we should certainly celebrate the progress that we have made. We cannot lose sight, however, of the need to better secure our information and systems moving forward. Awareness and smart data hygiene by consumers is one part. Companies must do their part to secure our information as well.

If you are interested in learning more, you can find NCL’s latest report here.

If you care about cramped airline seats, you should care about the FAA’s evacuation tests

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Last month, I had the pleasure of testifying before the House Aviation Subcommittee on the implementation of the Federal Aviation Administration’s 2018 reauthorization bill. My testimony touched on many of the pressing consumer protection priorities for airline passengers teed up by the 2016 and 2018 FAA reauthorization bills. 

The big news coming out of that hearing, however, was FAA Deputy Administrator Daniel Elwell announcing that the FAA will this November conduct its first evacuation tests with live participants in two decades. While this may sound like the kind of announcement only politicos should care about, it’s actually a very big deal for anyone who flies.  

Why is that, you may ask?  

FAA regulations require that the “maximum capacity” of an aircraft must be able to be evacuated in less than 90 seconds in an emergency. The analogy is to the “maximum capacity” signs you may have seen in conference rooms, hotels, or other public spaces. Since the 1990’s, airlines have gotten fuller, seats have gotten smaller, and more bags and support animals have been brought into the cabin. Despite these changes, FAA has not updated its evacuation standards and has been content to allow airlines to self-certify that they can meet the 90-second threshold, largely based on computer simulations. 

This all changed last July when Congress passed the 2018 FAA Reauthorization Act which requires FAA to set minimum seat size standards. That’s why Dan Elwell announced that the FAA will be conducting the tests in November. The airlines, which have been pulling down record profits in recent years as they’ve steadily crammed more butts into more and smaller seats, will almost certainly want the FAA to give its blessing that their sardine cans are safe.  

Unfortunately, the FAA seems intent on granting them their wish. The advisory committee it appointed to provide feedback on the evacuation standards is packed with industry insiders and hamstrung by its own charter from considering seat sizes and seat pitch (the room between seats) as part of its recommendations. The DOT’s Office of Inspector General has an ongoing audit of the evacuation standards, but there’s no indication that the FAA will wait on the results of that audit before it conducts its tests. 

We can’t let the FAA rubber stamp the airlines’ current inhumane and potentially unsafe seating configurations. That’s why NCL, along with a coalition of consumer and flyers rights groups this week sent a letter to the FAA and the DOT urging them to update their evacuation standards before the November tests. We’re calling on the agency to update its evacuation testing standards to account for things like the presence of passengers with disabilities, parents who are separated from their children (thanks in no small part to rising seat reservation fees), full overhead bins, and passengers who insist on taking their bags with them when they evacuate (or, even worse, filming themselves evacuating). These are all factors that are likely to slow down evacuations, but FAA’s evacuation testing standards don’t account for them. 

Updating evacuation testing standards may sound like wonky, inside-the-Beltway bureaucratese, but the consequences of not doing so could be deadly.

FAA evacuation tests could give green light to unsafe and inhumane airline seating

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October 21, 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 Federal Aviation Administration’s (FAA) upcoming passenger evacuation tests are designed with outdated standards that do not reflect the realities of today’s airline travel marketplace, said a coalition of ten consumer and flyers rights organizations in a letter sent today to FAA Administrator Steve Dickson and Department of Transportation (DOT) Secretary Elaine Chao.

The groups’ letter explains how the FAA’s current evacuation testing standards, which have not been updated in more than 20 years, do not account for multiple factors that could prevent safe evacuation in the legally-required 90-second threshold. For example, the current standards do not account for the presence of emotional support animals in the cabin, parents who may be separated from their children due to airlines’ family seating policies, or passengers with disabilities. In addition, the current evacuation standards do not account for the experience in recent emergencies of significant numbers of passengers attempting to bring personal items like roller bags with them as they evacuate. Nor do the standards effectively simulate the disruption from the widespread panic that can be expected in the event of an actual emergency.

“The FAA’s standards are woefully out of date and out of step with the current state of airline travel,” said John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League, which organized the letter. “Unless the standards are improved, the airlines will almost certainly see the results of these tests as a green light continue their never-ending quest to shrink seat sizes and cram more passengers into planes.”

In September, FAA Deputy Administrator Daniel Elwell announced that that the agency will conduct tests of airplane evacuations involving 720 “demographically representative” people over 12 days in November 2019 in Oklahoma City. These tests, the first conducted by the FAA in nearly two decades, come in response to a Congressional mandate that the agency set minimum seat size standards in order to increase passenger safety. Unfortunately, the FAA appears to be pressing forward with the testing without input from the DOT’s Office of Inspector General, which is currently conducting an audit of evacuation testing standards, or the agency’s own emergency evacuation standards advisory committee. Furthermore, it appears the testing will not be conducted with full-scale airplane cabin mock-ups, but instead using smaller sections that don’t properly simulate packed airplanes.

“It is imperative that Secretary Chao and Administrator Dickson act aggressively to address our organizations’ concerns so that the public, whose faith in the FAA has been significantly diminished recently, will have confidence that the highest of standards were employed during the test evacuations,” said Business Travel Coalition chairman Kevin Mitchell. “Congress also needs to ensure that the testing processes and the underlying critical assumptions are realistic,” added Mitchell.

“Airline travel has changed significantly over the last 20 years, with shrinking seats and record passenger loads, a high influx of carry-on bags, scattered seating of families, ubiquitous electronic gadgets and cords and even on-board animals,” said William J. McGee, Aviation Adviser for Consumer Reports. “It is critical that the FAA’s methodology changes as well, so that this vital testing accurately reflects real-world scenarios, where the stakes are often life-and-death.”

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

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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.

Reducing the mountain of waste on airplanes

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On a flight to Idaho earlier this week, I brought my own coffee mug. My flight attendant was unexpectedly enthusiastic: “Anything that will help save the planet,” she said. I do not find this to be the case at Starbucks, where baristas insist on giving me a new plastic cup when I’m getting my iced tea, or at the Nespresso counter at Bloomingdales, which recently refused to serve me a coffee in my own cup. Reducing our personal footprint should be a big issue for all of us as we see the rapid pace of climate change and what it is doing to our beloved planet.  

At home, I can compost food scraps, choose to take public transportation, minimize food waste, and drive a hybrid car.  But it’s tough to do your part to conserve, reduce, reuse, and recycle and try to “save the planet,” as an airline passenger.  The New York Times reports that the average air passenger generates three pounds of waste in the form of plastic cups, the headphones, food left on plates, wrapping for snacks, and plastic cutlery; multiply that times 4 billion passengers a year, and it really adds up! 

Sixteen-year-old Swedish climate activist Greta Thunberg opted to sail to New York from Europe to avoid being part of the problem: emissions from airplanes.  

The International Air Transport Association (IATA), a trade group representing the airlines, estimated that planes generated 6.7 million tons of cabin waste last year. Another group that studied the waste found that it broke down as 33 percent food waste, 28 percent cardboard and paper, and 12 percent plastic.   

So, what are the airlines doing, and how can consumers be part of the solution? Well, airlines are under pressure to conserve precisely because consumers are demanding they do so, as the New York Times article reported.  Air France said it would eliminate 210 million single–use plastic items like cups and coffee stirrers. Qantas has removed individually packaged servings of milk and Vegemite, and now serves meals in containers made from sugar cane, and utensils made from crop starch. Some United Airlines flights use “fully compostable or recyclable service ware.”  

Consumers can inquire about recycling products and demand changes in rigid rules on tossing out untouched food and drink, in place supposedly to protect agriculture. The trade group IATA estimates that these untouched items make up 20 percent of total airline waste. As reported by the New York Times, companies employed to help reduce airline waste are making dishes from pressed wheat bran and “sporks” from coconut palm wood. 

Asking the airlines what they are doing to reduce waste is a good start. Let’s press the airlines for answers and—while we are it: what about hybrid or electric engines on planes? That is a topic we can explore another day. 

The National Consumers League mourns the untimely death of Congressman Elijah Cummings

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October 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 (NCL) is saddened by the untimely death of statesman and U.S. Representative Elijah Cummings. Rep. Cummings was admired by friend and foe alike, an honest broker and legislative giant who chaired the House Oversight and Reform Committee and who never forgot his humble roots as the son of sharecroppers.

Rep. Cummings was in his 13th term serving as a representative of the Baltimore, MD community. As a member of the Maryland House of Delegates (1983 to 1996), he became the youngest chairman of the Legislative Black Caucus. Cummings campaigned tirelessly for stricter gun control laws and help for those addicted to drugs.  

Congressman Cummings often said that “our children are the living messages that we send to a future we will never see.” In that vein, he was committed to ensuring that the next generation has access to quality healthcare and education, clean air and water, and a strong economy defined by fiscal responsibility. 

He served as the Chairman of the Committee on Oversight and Reform, seeking to identify appropriate reforms that prevent waste, fraud, and abuse and that ensure government programs meet the needs of the American people. 

In recent months, Cummings had become a leader in President Trump’s impeachment inquiry: he didn’t hesitate to show anger, outrage, or disappointment in the actions and behavior of the administration officials. He strongly and vocally opposed the presidency of Donald Trump and was sued by President Trump in attempts to keep his business records secret. Most recently, Cummings was called upon to defend his constituents in Baltimore when President Trump made disparaging remarks about the city.  

“The whole nation will miss this remarkable man, who stood up to bullies, defended the rights of the less fortunate and underserved, but maintained his dignity and was always a gentleman and peacemaker—no matter what an opponent had to say about him and his district,” said NCL Executive Director Sally Greenberg.

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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.