Finally, regulation where it’s needed: seven new bills with a focus on consumer safety

/in Consumer policy, Consumer Protection, Safety/by

headshot of NCL Health Policy intern Alexa

By NCL Health Policy intern Alexa Beeson

This June, the House Energy and Commerce’s Consumer Protection and Commerce Subcommittee held a hearing in which they considered seven different bills concerning product safety. The hearing was motivated by a commitment to removing life-threatening products from the market, which–somehow–remain in circulation for purchase. Most notably, the bills address furniture tip-over (H.R. 2211), crib bumpers (H.R. 3170), inclined infant sleepers (H.R. 3172), and fire safety (H.R. 806).

The witnesses included Will Wallace, a manager at Consumer Reports; Crystal Ellis, a devastated mother and founder of Parents Against Tip-Overs; Chris Parsons, the president of Minnesota Professional Fire Fighters; and Charles A. Samuels, a member of Mintz, a law firm that represents manufacturers of some of the products implicated in various accidents.

Ellis was especially moving. She lost her son, Camden, five years ago on Father’s Day in a tip-over accident involving an unstable dresser. The day she testified would have been her son’s 7th birthday. Camden’s death and the deaths of many others in tip-over accidents catalyzed the founding of Parents Against Tip-Overs, which advocates for children who were victims of unsafe consumer products. Ellis recounted the devastating loss of her son and pleaded that the committee act to protect other children from suffering the same fate. Ellis urged the committee to evaluate the standards set forth by the Consumer Product Safety Commission (CPSC), which are not regulated enough to prevent tip-overs.

Furniture tip-over is a more widespread problem than you might realize. According to the CPSC, an estimated annual average (2014-2016) of 9,300 children ages 0-19 were treated in the emergency department for furniture tip-over injuries, not including televisions or appliances. If you include television and other appliances, which were not covered in the bills at the hearing, the number jumps to more than 15,000. From 2000-2016, furniture tip-overs killed 431 children.

These deaths could have been prevented by enforcing stricter safety regulations. The current CPSC regulations do not demand mandatory safety standards for tip-over prevention. The product manufacturing industries are only held to a voluntary standard. Additionally, products under 30 inches tall are exempt from any such safety regulations. However, as found by a Consumer Reports investigation, shorter furniture still causes major tip-over accidents.

The Stop Tip-overs of Unstable, Risky Dressers on Youth (STURDY) Act would seek to change these standards. The bill would require the CPSC to mandate manufacturers to produce more rigorous testing of their products; to perform more “real-world” testing and to revise consumer warning requirements, ensuring higher standards of product safety and transparency.

The National Consumers League thanks the Consumer Protection and Commerce Subcommittee for taking measures to hold industry accountable with regards to product safety standards. One positive message that everyone can take away from this hearing is that times are changing. Industry will be held accountable, and consumers will be protected. It looks like the time for the CPSC to take charge in handling consumer safety and protection–instead of letting industry set its own rules–is just around the corner, to paraphrase Rep. Frank Pallone (D-NJ).

Alexa is a student at Washington University in St. Louis where she studies Classics and Anthropology and concentrates in global health and the environment. She expects to graduate in May of 2020

NCL: Consumers should be able to access broadcast channels for free via Locast

/in Consumer Education, Consumer literacy, Consumer policy, Consumer Protection, Education, Telecommunications/by

August 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—Last week, the four largest broadcast networks—ABC, CBS, Fox, and NBC—filed suit against Locast, a free streaming service operated by the non-profit Sports Fans Coalition NY. The networks’ lawsuit seeks to block Locast’s streaming of local broadcast programming. The suit alleges that Locast violates copyright laws by failing to compensate the networks for their programming.

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

Consumers can already legally obtain free over-the-air broadcast channels via an antenna on their roofs. We think broadcasters would be better off embracing an innovative technology that allows consumers to more easily access their ad-supported content.

To secure public accessibility of broadcast signals, the Copyright Act expressly permits non-profit organizations to retransmit free over-the-air broadcasts. Locast is operated by the non-profit Sports Fans Coalition NY as a free public service. NCL supports broad consumer choice for access to local broadcast channels.

This year alone, the four largest broadcast networks are expected to generate more than $10 billion in retransmission-consent fees from cable and satellite providers that carry the networks’ programs. These fees are largely passed onto consumers in the form of higher monthly cable and satellite bills. Along with advertising that networks and local television stations sell, retransmission fees support the production of critically important local news content as well as traditional entertainment programming. 

NCL and Sports Fans Coalition (SFC) have a history of working together on a range of important consumer issues. In 2014, together we successfully petitioned the Federal Communications Commission to repeal the Sports Blackout Rule. In 2018, we jointly urged the Federal Trade Commission to protect consumers in the live event ticketing marketplace by cracking down on deceptive “white label ticketing websites.” We have also worked with SFC to create a landmark “Sports Bettor’s Bill of Rights” to ensure that consumers are protected as more states move to legalize online sports betting.

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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.

Consumer group calling on Congress to pass Hot Cars Act on Heat Stroke Prevention Day, July 31

/in Consumer policy, Consumer Protection, Safety, Transportation/by

July 31, 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—Washington, DC—Just days after the tragic deaths of one-year-old twins who were accidentally left behind by a parent in a car in the Bronx over the weekend, advocates pointing to today’s observance of Heat Stroke Prevention Day to call attention to a bill in Congress that would mandate new cars come with technology to prevent such tragedies.

The Hot Car Act would require that all new cars come equipped with an alarm system that reminds drivers to check the car after exiting. The bill calls for “a distinct auditory and visual alert to notify individuals inside and outside of the vehicle of the presence of an occupant.” This alarm will only occur when the vehicle senses a physical presence in the back seat.

Heatstroke is the leading cause of deaths in vehicles (excluding crashes) for children 14 years old and younger, according to Consumer Reports. Although some may believe that hot car tragedies could never happen to them, more than 900 children have died in hot cars since 1990, and 17 fatalities have been recorded in 2019 alone, according to safety advocacy group KidsAndCars.org.

“This lifesaving technology is already available, so why wouldn’t we expedite its implementation and allow children and their families to benefit from it?” said NCL Executive Director Sally Greenberg. “Just as we have overcome other dangers in cars–kids dying in trunks, backover accidents, deadly electric car windows–the auto industry now has the technology available to prevent these tragedies. Kids shouldn’t pay with their lives when we can readily fix the problem. The auto industry can do something about this and should.”

The Hot Cars Act alert system follows in the tradition of other essential vehicle alarm systems that have become commonplace for consumers, such as chimes that remind drivers to use a seat belt, indicate that headlights have been left on, or doors have been left ajar.

The alarm system also has relevance beyond the summer months. Sensors and alarms in new cars will also prevent children from being left unattended in dangerously cold temperatures. The proposed technology would also alert pet-owners if their furry friend is about to be left behind.

“These hot car deaths have happened for many years to many doting, devoted, and loving parents. Human beings make mistakes, but we now have the technology that can prevent these mistakes and help protect children, so let’s use it,” said Greenberg.

The Senate introduced its version of the bill in May, which was sponsored by Senators Roger Wicker (R-MS), Richard Blumenthal (D-CT), and Maria Cantwell (D-WA). 

The National Consumers League once again commends Representatives Tim Ryan (D-OH), Jan Schakowsky (D-IL) and Peter King(R-NY) for their continued leadership on this issue and urge members of Congress to support this important children’s protection legislation.

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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.

Consumer group: Capital One breach highlights need for Congressional action on data security legislation

/in Consumer policy, Consumer Protection, Fraud policy, Fraud Prevention, ID theft, Privacy & security, Technology, Telecommunications/by

July 30, 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—Just one week after consumers received relief from the massive Equifax breach, yet another massive breach—this time at Capital One bank—is placing consumers at risk, yet again, of identity theft.

In one of the largest financial breaches in history, more than 100 million Capital One accounts and 140,000 Social Security numbers were reportedly compromised. As was the case in previous breaches, the Capital One breach appears to have stemmed from a third-party cloud hosting vendor that stored Capital One’s data.

The National Consumers League (NCL), the nation’s pioneering consumer and worker advocacy organization, is calling on Congress to immediately pass comprehensive privacy legislation and protect highly personal data.

“Consumers are sitting ducks if big banks like Capital One, giant hotel chains like Marriott, and credit scoring companies like Equifax don’t take the necessary steps to protect our data,” said John Breyault, NCL’s vice president of public policy, telecommunications, and fraud. “When companies like Capital One are sloppy in protecting consumers’ data, it allows hackers steal consumer information which ultimately fuels identity theft and other frauds against us.”

“More than five years after hackers compromised the personal information of nearly 110 million Target customers, criminals are still breaking through supposedly strong firewalls and stealing consumers’ personal data from companies. Any data security legislation must require that consumer data be protected with strong fines and criminal penalties for failing to do so,” 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.

DOT green lights more concentration, less competition in American-Qantas alliance

/in Consumer policy, Consumer Protection, Transportation/by

July 24, 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, is disappointed in the Department of Transportation’s (DOT) decision to approve a grant of antitrust immunity to a new international alliance between American Airlines and Qantas Airways. The following statement is attributable to Sally Greenberg, NCL executive director:  

“In 2016, the Obama DOT found that an American-Qantas tie-up would ‘reduce competition and consumer choice.’ Less than three years later, the Trump DOT has decided that the American-Qantas alliance will be ‘procompetitive’ and ‘likely to generate substantial benefits for the traveling public’ in the U.S.-Australia market. We are at a loss to understand how allowing the Big Three airline alliances to control 86 percent of the U.S.-Australia market will generate substantial benefits for flyers. This decision is yet more evidence that the Trump DOT is intent on putting the interests of big airlines ahead of the interests of the flying public. The woeful absence of competition in the airline industry today has led to higher prices, poor service, and nowhere for the flying public to go. This decision only adds insult to injury for 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.

The ‘tampon tax’: an unconstitutional loss to American consumers

/in Consumer policy, Consumer Protection, Corporate social responsibility, Personal finance/by

headshot of NCL LifeSmarts intern Alexa

By NCL LifeSmarts intern Elaina Pevide

Bingo supplies in Missouri, tattoos in Georgia, cotton candy in Iowa, gun club membership in Wisconsin; what do these products and services have in common? They are all treated as tax-exempt by states that still put a tax on tampons.

Sales taxes on menstrual products, often referred to as “tampon taxes”, are still present in 35 states. Tampon taxes are cited as a major contributor to the “pink tax”, the heightened cost of products and services marketed toward women. For example, a purple can of sweet-smelling shaving cream for women will almost always cost more than its male counterpart across the aisle. This trend translates across industries. A 2015 study from the Joint Economic Committee found that women pay more 42 percent of the time for products from pink pens to dry cleaning. These pricier goods and services serve no benefit to the consumer and have no apparent improvement in function or quality. The pink tax cuts into women’s spending power and takes advantage of consumers simply on the basis of gender.

Tampon taxes and the pink tax have both been making waves recently as pressing feminist issues. While markups on products for women are unjust, activists are targeting the tampon tax as priority number one. Menstrual products, they argue, are necessities and states have the power to cut sales taxes on them by labeling them as such. States give tax exemptions to other items– like bingo supplies, tattoos, and cotton candy–that are far less vital to the health and success of consumers. Today, five states do not have sales taxes on any products, five states have always given hygiene products tax-exemption status, and five states have successfully fought to eliminate the tampon tax. Currently, 35 states remain with 32 having tried–and failed–to pass legislation on the matter.

States resistance to eliminate the tampon tax, typically for fiscal reasons, is at odds with the interests and demands of consumers. A survey of 2,000 women, conducted on behalf of menstrual cup company Intimina, found that three out of four women believe the tampon tax should be eradicated. Nearly 70 percent of those surveyed interpreted taxes on feminine products as a form of sexism.

Countless advocacy organizations have been established out of the need to provide consumers with affordable menstrual products and eliminate the tampon tax. One such group, Period Equity, recently launched a campaign with reproductive care company LOLA called “Tax Free. Period.”. Their campaign calls for the remaining 35 states with a tampon tax to eliminate it by Tax Day 2020. In the meantime, they’re gearing up for a legal battle to challenge the states that refuse to comply. Their argument? Taxes on a product that affect only women and other individuals who menstruate is a form of discrimination and thereby unconstitutional.

As reproductive rights groups await the response of state legislatures and federal courts on this issue, the half of Americans that use menstrual products in their lifetime are suffering. Women make less in wages than men but are forced to spend more. The tampon taxes expound gender inequality and costs American consumers millions of dollars each year–dollars that could benefit their families and stimulate the economy elsewhere. Period Equity’s tagline says it best: “Periods are not luxuries. Period.” It’s about time for American tax policy to reflect that reality.

Elaina Pevide is a student at Brandeis University where she majors in Public Policy and Psychology with a minor in Economics. She expects to graduate in May of 2020.

DC takes lead in fight against deceptive hotel resort fees

/in Consumer policy, Consumer Protection, Corporate social responsibility, Fraud policy, Fraud Prevention/by

July 10, 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 applauding District of Columbia (DC) Attorney General Karl Racine for his action this week to rein in Marriott International’s use of deceptive “resort fees.” According to the consumer group, the fees hide the true cost of a hotel stay and are too often presented to consumers in a “take it or leave it” fashion at the end of their hotel stays. On Tuesday, Racine filed a lawsuit against Marriott alleging that the hotel chain violated consumer protection laws by not including resort fees in the advertised room rates, luring consumers with deceptively low prices.

“Hotel resort fees tacked on at the end of a hotel stay are deceptive, plain and simple,” said NCL Executive Director Sally Greenberg. “That’s why NCL and other consumer groups have been raising the alarm about these anti-consumer practices for years. We are grateful to General Racine for leading the charge against Marriott and putting other hotels on notice that deceptive hotel resort fees have no place in the District.”

Advocates’ issue with resort fees is that they prevent consumers from being able to accurately compare the cost of a hotel room when they don’t know what the all-in costs will be until the end of their stay. Mandatory hotel resort fees leave consumers stuck paying extra costs that may have discouraged the booking had they been disclosed up-front.

Marriott owns, manages, and franchises more than 5,700 hotels and 1.1 million hotel rooms in more than 110 countries, including at least 29 hotels in the District of Columbia. In 2012 the Federal Trade Commission (FTC) warned Marriott and nearly two dozen other hotel chains that their pricing practices around resort fees may violate federal consumer protection laws by misrepresenting the true price of hotel rooms. In 2017, the FTC’s Bureau of Economics issued a report concluding that “separating mandatory resort fees from posted room rates without first disclosing the total price is likely to harm consumers.”

Marriott has charged resort fees to tens of thousands of District consumers over the years, totaling millions of dollars. Racine’s lawsuit alleges that over the past decade, Marriott has violated the District’s Consumer Protection Procedures Act and harmed District consumers.

“Marriott had fair warnings on several occasions but continued this unfair and deceptive business practice. We are so pleased that General Racine is seeking monetary relief for residents of the District who have been forced to pay these fees,” said John Breyault, NCL Vice President of Public Policy, Telecommunications, and Fraud. “We urge other state attorneys general to enforce their consumer protection laws against Marriott and other hotel chains whose are sticking millions of consumers with these deceptive, unwanted fees.”

The complaint is available at: *https://oag.dc.gov/sites/default/files/2019-07/Marriott-Complaint.pdf

*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

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 Ryan, Schakowsky, and King for House introduction of Hot Cars Act (HR 3593)

/in Consumer policy, Consumer Protection, imported, Safety, Transportation/by

July 8, 2019

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

Washington, DC—The National Consumers League, the nation’s pioneering consumer advocacy organization, applauds Representatives Tim Ryan (D-OH), Jan Schakowsky (D-IL), and Peter King (R-NY) for reintroducing the Hot Cars Act (H.R. 3593) on July 1. By mandating that all new cars come equipped with technology that detects and alerts the presence of a child left in a vehicle, the Hot Cars Act would help stop dozens of tragic and preventable child deaths annually.

The Hot Car Act would require that all new cars come equipped with an alarm system that reminds drivers to check the car after exiting. The bill calls for “a distinct auditory and visual alert to notify individuals inside and outside of the vehicle of the presence of an occupant.” This alarm will only occur when the vehicle senses a physical presence in the back seat.

Heatstroke is the leading cause of deaths in vehicles (excluding crashes) for children 14 years old and younger, according to Consumer Reports. Although some may believe that hot car tragedies could never happen to them, more than 900 children have died in hot cars since 1990, and 17 fatalities have been recorded in 2019 alone, according to safety advocacy group KidsAndCars.org.

“This lifesaving technology is already available, so why wouldn’t we expedite its implementation and allow children and their families to benefit from it?” said NCL Executive Director Sally Greenberg.

The Hot Cars Act alert system follows in the tradition of other essential vehicle alarm systems that have become commonplace for consumers, such as chimes that remind drivers to use a seat belt, indicate that headlights have been left on, or doors have been left ajar.

The alarm system also has relevance beyond the summer months. Sensors and alarms in new cars will also prevent children from being left unattended in dangerously cold temperatures. The proposed technology would also alert pet-owners if their furry friend is about to be left behind.

The Senate introduced its version of the bill in May, which was sponsored by Senators Roger Wicker (R-MS), Richard Blumenthal (D-CT), and Maria Cantwell (D-WA). 

The National Consumers League once again commends Representatives Tim Ryan (D-OH), Jan Schakowsky (D-IL) and Peter King(R-NY) for their continued leadership on this issue and urge members of Congress to support this important children’s protection legislation.

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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.

Three reasons scientists believe bugs are the next beef

/in Consumer policy, Consumer Protection, Environment, Food, Food policy, Food waste, Nutrition/by

Shaunice Wall is NCL’s Linda Golodner Food Safety and Nutrition Fellow

There’s a thin line between hunger and disgust when deep-fried tarantulas and smoked barbeque crickets are on the menu. Many scientists argue that animal protein is not environmentally sustainable, so alternatives–like bugs–may be the answer to the perils of global warming. Recent research supports eating bugs as a way to maintain a protein-rich diet while benefiting the environment.

Infographic comparing the water, feed, and land needs of cattle against the same needs for bugs farming

Why bugs are slowly crawling into our everyday diets

As the world population continues to grow, so will demand for animal protein. By 2050, we’ll be eating more than two-thirds the animal protein we do today, causing a strain to our planet’s resources. The surge in demand for animal protein has also contributed to an increase in greenhouse gases (carbon dioxide, methane and nitrous oxide). These gases lead to extreme weather conditions, ozone depletion, increased danger of wildland fires, loss of biodiversity, stresses to food-producing systems and the global spread of infectious diseases. Even today, climate changes are estimated to cause over 150,000 deaths annually.

Most westerners prefer beef over bugs

While many of us westerners may gag at the thought of maggots in our sausage, more than 2 billion people throughout the world have been eating bugs as a regular part of their diets for millennia. But historically, for westerners, livestock not only yields meat, but also milk and milk products, their hides or skins provide warmth, they are suitable for plough traction, and act as a means of transport. Because of the use of these animals, the benefits of eating insects in many societies has failed to gain much interest. Also, certain insects are transmitters of disease and are virtually a nuisance.

So, why should we eat bugs?

In 2013, a report by the Food and Agriculture Organization *(FAO) of the United Nations, urged global citizens to eat more bugs for three reasons:

  1. They’re healthier for you…and tasty too!
    • Bugs are a healthy, nutritious alternative to mainstream staples such as chicken, pork, beef, and fish (from ocean catch).
    • Many insects are rich in protein, good fats, and high in calcium, iron, and zinc.
    • Insects already form a traditional part of many regional and national diets.
    • Bugs can be used as an ingredient substitute for almost any recipe. Here’s a link with ideas on how to make some delicious bug treats!
  2. They’re safer for the environment
    • Bugs promoted as food emit 75 percent fewer greenhouse gases (GHGs) than most livestock.
    • Insect rearing is not necessarily a land-based activity and does not require as much land as livestock.
    • Because they are cold-blooded, insects are efficient at converting feed into protein (crickets, for example, need 12 times less feed than cattle, four times less feed than sheep, and half as much feed as pigs and broiler chickens to produce the same amount of protein).
    • According to the Harvard Political Review, producing one pound of beef requires 10 pounds of feed, 1,000 gallons of water, and 200 square feet of pasture. In contrast, producing one pound of insects only requires two pounds of feed, one gallon of water, and two cubic feet of land space.
  3. They’re lower in cost
    • Bug harvesting/rearing is a low-tech, low-capital investment option that offers economic opportunities to all levels of society.
    • Insect rearing can be low-tech or very sophisticated, depending on the level of investment.

Recent advances in research and development show edible bugs to be a promising alternative to meat for both human consumption and as feedstock. But to make this a reality, regulatory frameworks for safety and nutrition will need to be developed and government, industry, and academia will need to work together.

In the meanwhile, knowing the benefits can help turn disgust to hunger when tarantulas or crickets appear on the menu… Something to think about!

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

Coalition of consumer advocacy groups send letter DC Council regarding auto-renewal – National Consumers League

/in Consumer policy, Consumer Protection, Personal finance, Telecommunications/by

July 19, 2018

The Honorable Charles Allen
Council of the District of Columbia
1350 Pennsylvania Avenue, NW
Washington DC 20004

Dear Councilmember Charles Allen,

The undersigned 9 consumer and community advocacy groups urge your immediate action and support for Title II of the Consumer Disclosure Act of 2017 (B22-0020). The bill, which has been pending before the Judiciary and Public Safety Committee since January 2017, will prevent District residents from unknowingly becoming trapped in a complex web of hidden automatic renewal contract clauses they did not knowingly consent to.

In order to participate in commerce, consumers must sign lengthy fine print contracts. These contracts often contain automatic renewal clauses which will cause the contract or membership to renew automatically if the consumer fails to notify a merchant of their desire to cancel prior to a date of the merchant’s choosing. When these clauses are clearly disclosed, they can help consumers avoid service interruptions. However, unscrupulous merchants slip automatic renewal contract clauses into the fine print of contracts without properly disclosing their presence in order to trap consumers into lengthy contracts. The proliferation of these hidden automatically renewing contract clauses has caused one in three Americans to be tricked into agreeing to an automatically renewing contract.[i]

In the coming years, the trend of unscrupulous businesses hiding automatic renewal clauses in the fine print of contracts is unlikely to change. Deloitte predicts that online media subscriptions, subscriptions, which almost always contain these clauses, will grow by at least 20% in 2018.[ii] Fortunately, the Consumer Disclosure Act of 2017 would prevent these unwelcome financial surprises by:

  • Requiring clear disclosure of any automatic renewal clause; and
  • Requiring that a notification be sent to enrollees 30-60 days prior to the deadline for canceling a multi-month automatically renewing a contract

The unplanned expense that these clauses inflict on their victims is of particular concern for the socio-economically disadvantaged members of our community who are less able to weather surprise bills. Action on this issue is long overdue. In the absence of legislative action, District residents will continue to receive surprise bills for products or services they no longer need or desire.

Through Title II of the Consumer Disclosure Act, the D.C. Council has a real opportunity to improve the lives of Washingtonians by granting District residents the tools they need to avoid becoming ensnared by unwanted automatically renewing contracts. We urge you to quickly take action and to provide District residents with this long overdue protection which is already enjoyed in several states across the country.

Sincerely,

Allied Progress
American Family Voices
Consumer Action
Consumer Federation of California
DC Fiscal Policy Institute
National Association for Latino Community Asset Builders
National Consumers League
Tzedek DC
Workplace Fairness

Cc: Members of the Committee on the Judiciary and Public Safety

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[i] Porche, Bradley. “Poll: Recurring charges are easy to start, hard to get out of,” Creditcards.com. August 21, 2017. Online: https://www.creditcards.com/credit-card-news/autopay-poll.php

[ii] Deloitte. “Technology, Media and Telecommunications Predictions,” Pg. 41. 2017. Online: https://www2.deloitte.com/global/en/pages/about-deloitte/articles/gx-tmt-predictions-press-release.html