Consumer groups file amicus brief supporting DOT’s airline fee transparency rule

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October 17, 2024

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

WASHINGTON, DC – This week, the National Consumers League and three other public interest advocacy organizations filed a brief of amici curiae in Airlines for America, et. al v. Department of Transportation. The airline industry filed the lawsuit, claiming that the Department of Transportation (“DOT”) lacks the authority to protect passengers, after DOT finalized its rule requiring air carriers to disclose upfront the fees they charge for baggage and reservation changes or cancellations.

“DOT has put in place common-sense price transparency rules,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “Travelers deserve to know up front how much it will cost to bring a bag on a plane or cancel or change their reservation. Unfortunately, the industry’s litigation goes much further than disputing a single rule they do not like. It strikes at the heart of DOT’s ability to issue consumer protection regulations across the board.”

If the industry’s litigation is successful, it could jeopardize decades of basic—yet critical—consumer protections implemented by DOT. In addition to threatening the ancillary fee transparency rule, a ruling by the 5th Circuit in favor of the airlines could jeopardize the Full Fare Advertising Rule requiring air carriers to include all mandatory charges within their advertised prices. The lawsuit comes just four years after the same airlines received more than $50 billion in taxpayer bailouts from the federal government during the COVID-19 pandemic.

The American Economic Liberties Project, Consumer Federation of America, NCL, and the US Public Interest Research Group filed the brief supporting the fee transparency rule.

Additional reading:

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About the National Consumers League (NCL) 

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

NCL welcomes FTC’s click-to-cancel rule

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October 16, 2024

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

WASHINGTON, DC – Today, the Federal Trade Commission (FTC) announced its final rule requiring the cancellation of subscriptions to be as easy as signing up. Slated to go into effect next year, subscription-based businesses will have to offer a simple cancellation mechanism and will be prohibited from lying about the goods and services they offer.

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

“Rather than trapping consumers with confusing cancellation processes, sellers should earn our dollars by competing to offer better products. The FTC is sticking up for everyday Americans and making clear that businesses cannot rely on deception to make a profit. NCL has long supported the Commission’s work to make subscriptions easier to manage for consumers, this rule will make those efforts even easier.”

Additional reading:

  • Public comments of NCL and five other organizations supporting the click-to-cancel rule, filed in response to the Commission’s 2023 notice of proposed rulemaking
  • Letter from NCL, Consumer Federation of America, and the National Consumer Law Center supporting the rule in a 2024 administrative law proceeding
  • Public comments of NCL on the harms of current negative-option business practices, filed in response to the Commission’s 2019 advanced notice of proposed rulemaking

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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 urges Congress to strengthen consumer protections against aviation cyber incidents

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September 18, 2024

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

WASHINGTON, DC – Today, NCL Vice President John Breyault testified before the U.S. Senate Committee on Commerce, Science, & Transportation. The hearing examined cybersecurity threats to the air travel industry and the impacts that these disruptions have on passengers. The Committee’s inquiry follows recent disruptive events in air travel stemming from digital vulnerabilities, such as last month’s cyberattack on Seattle-Tacoma International Airport and the mass outage attributed to a CrowdStrike update in July.  

“When cybersecurity incidents occur in the airline industry, consumers are often the ones who suffer most,” stated Breyault. “Flights are delayed or canceled, personal information is compromised, and families can find themselves stranded for days without recourse.” 

Despite the surge in digital threats targeting the aviation sector, key safeguards remain absent. In his testimony, Breyault urged Congress to take steps to reduce the risk of cyber incidents and to mitigate the harm to passengers when such mishaps occur. 

Specifically, NCL advocated for Congress to: 

  • Establish comprehensive data security standards to provide a baseline of protection for the data consumers routinely share when flying; 
  • Enact legal protections against hacking, fraud, and theft for the billions of dollars in airline rewards that consumers earn, store, and redeem each year; and 
  • Codify the U.S. Department of Transportation’s authority to implement delay compensation requirements for airlines, minimizing out-of-pocket costs for passengers needing food, drink, lodging, and alternative transportation during a flight disruption. 

Breyault’s full written testimony to the Senate Commerce Committee can be found here. 

More information on NCL’s recent work to protect the flying public can be found below. 

The Senate hearing can be viewed here.

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 About the National Consumers League (NCL) 

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

Getting a ticket to the U.S. Open: My story

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By Sally Greenberg, CEO of the National Consumers League

Each year, I look forward to the end of summer because I take an annual pilgrimage to the U.S. Open tennis tournament in Queens, NY.  What I don’t look forward to is the process of trying to get a ticket to this event. Like millions of other fans, it always feels to me like I’m playing a rigged game designed to wring every dime of profit out of me.

In the olden days, I could stand in line at the window of the tennis center an hour before the gates opened and buy a face-value ticket with no fees attached. In those halcyon days of yore, the tickets were typically priced around $120 – 160, getting me a grounds pass and entry into the show courts, where the best matches are played.

So much for the good old days; today, there are no face-value tickets to be had.  The business of selling and scalping tickets has become a corporate enterprise, with private equity firms getting in on the game as tickets get sold for sky-high prices with exorbitant junk fees tacked on for good measure.

In sum, my chances of getting a face-value ticket to the U.S. Open are about the same as my chances of seeing a dodo bird.

My effort to get tickets to the U.S. Open was as frustrating as it is familiar for millions of fans.  On August 15, I searched the Ticketmaster site to see about getting a ticket to the Open on Friday, August 30. Being a good consumer, I comparison shopped by googling “U.S. Open Tickets” and up came results from SeatGeek, StubHub, and Vivid. On the official Ticketmaster site for the tournament, I could find no face-value tickets for games on the Arthur Ashe court during an in-demand weekend, just “Verified Resale” tickets.

Why were there no tickets available? This is where the lack of transparency in the ticket marketplace comes into play. Were those tickets scooped up by ticket brokers looking to turn a quick buck? Did they have special “deals” with corporate sponsors, the U.S. Open itself, or other connected insiders? Or did the brokers get their tickets with the help of illegal ticket-buying “bot” software? No one knows though FTC enforcement against several brokers in 2021 suggests this may be the case more often than not.

In the end, I knuckled under and bought two tickets from a resale site—$249.00 + $47.67 in fees each, for two tickets in the top row of a huge stadium. Even then, my ordeal was not over. I received a confusing “Good News” email telling me that the seller had transferred the tickets to me and to check the U.S. Tennis Association app, which I did. No tickets.

I checked the U.S. Open app.  No tickets.

I checked the Ticketmaster app. No tickets.

I continued to check all week to no avail.

I tried reaching out to the reseller via their customer service email address and received no response. I looked for a customer service phone number to call to no avail. The event was getting close, and I began to panic.

While my story did end happily (I got my tickets), it required me to move heaven and earth (and get in touch with the company’s lobbyist) to find a resolution. This is not an option for most consumers who too often have to put up with lousy customer service to get simple problems resolved.

There are no angels in this industry. Whether buying from a reseller, Ticketmaster, or directly from the box office, consumers find themselves feeling gouged, forced to pay junk fees thanks to drip pricing, and having to put up with bad customer service operations. Just ask the millions of Oasis fans who suddenly learned what “dynamic pricing” can do to the price of a ticket.

It does not have to be this way.

The National Consumers League has long been a voice for consumers fed up with having to navigate what feels like a Rube Goldberg-esque scheme simply to get a simple ticket to a concert, theater, or sporting event.

So, what are our policy recommendations?

  • America needs a national all-in ticket pricing law to end hidden junk fees. The House of Representatives overwhelmingly passed the TICKET Act earlier this year, which would do just that. The Senate should follow suit.
  • The FTC should investigate how tickets end up on the resale marketplace. While much attention gets paid to the eye-watering price of tickets on the resale market, shockingly, little has been paid to how they get there in the first place.
  • Primary ticket sellers should be required to disclose how many tickets will be made available to the general public and how many are being “held back” for connected insiders.
  • Ticket sellers should be required to maintain 24/7 customer service phone lines to assist consumers who need help navigating the overly complicated processes for actually accessing tickets.

All of the stakeholders in the success of live events should get behind these recommendations. If fans continue to be mistreated by the industry, they’ll stop going to events, and that will be a loss for more than just this tennis fan.

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About the National Consumers League (NCL)

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

NCL among one of many organizations expressing concern for the growing catalytic converter theft problem

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August 29, 2024

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

WASHINGTON, DC – Today, the National Consumers League (NCL), along with many other organizations representing a cross-section of industry and interested stakeholders, signed a letter to the chairs of both the Committee on Armed Services and the Committee on Commerce, Science, and Transportation expressing their strong support of an amendment to combat the growing national problem of catalytic converter theft. Catalytic converters are being stolen at increasingly high rates because they contain valuable metals, such as rhodium, platinum, and palladium.

NCL’s CEO Sally Greenberg recently shared her own catalytic converter theft experience in this blog post.

The letter to the committees can be found here.

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 About the National Consumers League (NCL) 

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

Food fight: NCL lauds VP Harris’s push for fair grocery pricing amidst corporate greed

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August 23, 2024

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

WASHINGTON, DC – The National Consumers League (NCL), with a 125-year history of advocating for transparency and fairness in the food marketplace, praises Vice President Kamala Harris’s focus on price gouging within the grocery industry. While critics have argued that banning price gouging is a campaign ploy and economic gibberish, NCL has long witnessed the numerous ways corporations can deceive and overcharge consumers. Harris’s plan tackles the abuses within the grocery industry head-on.

For too long, American consumers have been exploited by deceptive corporate practices that erode purchasing power and trust. Without guidelines and accountability, these practices will continue unchecked. Harris’s call to action is a shot across the bow, a powerful reminder to corporations that the Biden-Harris (and potentially a Harris-Walz) Administration is committed to addressing kitchen-table issues, like rising grocery costs.

This is not a new issue, nor is it the only issue leading to higher consumer prices at the supermarket check-out line. Price gouging, particularly during emergencies or disasters, is already regulated in thirty-seven states, with enforcement entrusted to state attorneys general. Harris’s plan would expand these protections, putting the Federal Trade Commission in charge of preventing unfair pricing tactics.

In February 2024, U.S. Representative Jan Schakowsky and U.S. Senator Elizabeth Warren reintroduced the Price Gouging Prevention Act of 2024 to combat corporate price gouging citing American families’ financial struggles amid rising grocery costs and corporate profits.  Expanding the FTC’s authority, as outlined in the Price Gouging Prevention Act, would not be considered price fixing. Rather, the proposed legislation empowers regulatory agencies to enforce fair pricing practices, protect consumers from unjustified price hikes, and promote a competitive and transparent market without interfering with lawful price setting by businesses.

Equally egregious to price gouging is the practice of shrinkflation, where companies reduce product sizes or contents while maintaining or increasing prices. The Shrinkflation Prevention Act, introduced by Senator Bob Casey and supported by the NCL, is a crucial measure to protect consumers from this form of corporate exploitation. Surveys confirm that 73% of consumers are concerned about shrinkflation, and 79% feel cheated.

Another betrayal of consumers is the lack of, or hidden, unit pricing. Unit pricing is a cornerstone of consumer purchasing, providing the cost per pound, quart, liter, or another unit of weight or volume. Unit pricing is a vital tool for budget-conscious consumers. Currently, only nineteen states and the District of Columbia have enacted unit pricing laws or regulations, according to the National Institute of Standards and Technology, leaving consumers in other states without the essential information needed to make informed purchasing decisions.

A lack of competition within the grocery industry also negatively impacts consumers. The recent FTC action to block Kroger Company’s $24.6 billion acquisition of Albertsons Companies, Inc. illustrates the negative impact of reduced competition.  The merger of these two grocery giants, who together own 5,000 stores across forty-eight states, would reduce competition, drive up prices, lower food quality, and degrade customer service. NCL believes that competition benefits consumers, ensuring they receive quality products at fair prices.

Corporate greed almost certainly plays a role in rising grocery prices. One analysis found that over half of the increase (53.9%) in prices in the nonfinancial corporate sector (i.e., companies that produce goods and services) during the height of the COVID pandemic – could be attributed to bigger profit margins. Since the pandemic, mark-ups have remained “extremely elevated relative to historic norms.” Other analyses have found similar results, with corporate profits driving 53% of inflation.

Weekly grocery bills are higher than before COVID-19, and while many factors contribute to this—including supply chain disruptions, pandemic recovery, and interest rates—the bottom line is that consumers are paying more and getting less. The U.S. Department of Agriculture reports that Americans now spend about 11% of their income on food, the highest level in 30 years. Although food prices are expected to rise by 1% this year, consumers are still reeling from last year’s 5% increase.

More work needs to be done at the federal level to understand why inflation rates and the rise in food prices are out of sync. However, one thing is clear: empowering the FTC and state attorneys general to hold companies accountable is a step in the right direction.

The notion that the market will self-correct is not just naive—it is dangerous. Without strong regulatory action, companies will continue to prioritize profits over people, especially in essential sectors like groceries, where families cannot afford price hikes or size reductions. NCL lauds Vice President Harris for taking a stand against corporate greed.

It’s time to put an end to these deceptive practices and ensure that every American has access to affordable, transparent, and fair food pricing. Vice President Harris’s plan is a bold and necessary step toward achieving that goal.

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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.

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Family seating rules are a victory for passenger rights

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August 1, 2024

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

WASHINGTON, DC – The National Consumers League (NCL) today applauded the U.S. Department of Transportation (DOT) for proposing long-sought rules requiring air carriers to seat families together at no additional cost. These rules are the culmination of more than a decade of advocacy by advocates, including NCL for common-sense family seating protections.

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

“This decision marks the end of the ‘parent tax’ that airlines have gotten away with charging hard-working American families for far too long. Thanks to these common-sense, pro-family rules, parents will soon no longer have to choose between paying a junk fee to sit with their kids or put their children and other passengers at risk by being separated from them in the air. We applaud the leadership shown by the Biden-Harris Administration, Secretary Buttigieg and pro-consumer champions in Congress who helped bring these rules to fruition. NCL looks forward to participating in the rulemaking process and getting these protections across the finish line.”

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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.

Guest blog: NCL encourages FTC to propose new rule regarding protections for franchisees in response to exclusion from the agency’s non-compete covenants

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By Tesa Hargis, NCL summer intern

On April 24, 2024, the Federal Trade Commission (FTC) announced its final rule on non-compete covenants (the “Rule”).

Fifteen months earlier, on January 19, 2023, the FTC posted the notice of proposed rulemaking (NPRM) for the Non-Compete Clause Rule. The public comments on the proposed rule sought to answer the question of “whether the proposed rule should also apply to noncompete clauses between franchisors and franchisees.”

The Non-Compete Clause Rule comment period closed on April 19, 2023, after being extended from the original deadline of March 20, 2023. The FTC received 26,813 comments and posted 20,697 comments to the rulemaking docket.

A year after the notice and comment period for the Non-Compete Clause Rule lapsed, the FTC’s Final Non-Compete Rule was issued. The Rule bans non-compete agreements at the national level except for those between franchisors and franchisees. The Rule does, however, apply to non-competes between the employees of a franchisee.

Within the supplemental information of the Rule, the FTC explained that franchisees were excluded from the definition of “worker” within the rule because “the relationship between a franchisor and franchisee may be more analogous to the relationship between two businesses than the relationship between an employer and a worker.” However, many comments argued that franchisor-franchisee relationships are similar to employer-employee relationships because, like employees, franchisees generally lack bargaining power, and their interests are not generally protected “because franchisors generally do not entrust franchisees with trade secrets or details about their broader commercial strategy.”

The final rule ultimately does not apply to franchisor-franchisee non-competes, and those covenants remain subject to State common law and Federal and State antitrust laws.

Franchisor business practices and franchise agreements

Parallel to the comment period for the Non-Compete Clause Rule, in March of 2023, the FTC announced a separate request for public comment on franchisor business practices and franchise agreements in an effort to inform policy and enforcement efforts by hearing from a broad range of stakeholders and ensure a fair marketplace and halt unfair and deceptive franchise practices.

The comment period for the Franchise Agreements and Franchisor Business Practices closed on June 8, 2023, after being extended from the original deadline of May 9, 2023, with 5,291 comments received and 2,216 posted. A rule on Franchise Agreements and Franchisor Business Practices has yet to be proposed in response to the comment period which closed thirteen months ago.

Stakeholder comments

Franchisees such as William Kyle, who owns 14 McDonald’s franchises, have highlighted the restrictive nature of non-compete clauses in their agreements. Kyle describes his situation as a “take it or leave it” scenario, with a non-negotiable contract that includes an 18-month non-compete clause preventing him from starting a similar business within a ten-mile radius after his franchise term ends. This severely limits his ability to use his industry experience to support his family if McDonald’s denies him a contract renewal.

Similarly, Melissa Catalano, a Wellbiz Brands franchisee for over ten years, has expressed concerns about being trapped by franchisors who exploit their position. She detailed issues such as arbitrary fees, forced purchases of overpriced supplies, and restrictive policies that leave franchisees financially vulnerable and powerless.

Mark Liston, with over 40 years in the franchise sector, argues that the franchise model provides significant opportunities for business owners and should not be subjected to broad, sweeping regulations. He emphasizes that strong franchisor-franchisee relationships are mutually beneficial and that the franchise model has helped many achieve the American dream.

FTC developments

In response to the March 2023 request for public comment on franchisor business practices, the FTC released several significant statements on July 12, 2024. These include a Policy Statement asserting that certain contract provisions, such as non-disparagement and confidentiality clauses, are unlawful if they restrict franchisees’ communications with regulators. Additionally, the FTC issued Staff Guidance emphasizing that any new or increased fees not disclosed in the Franchise Disclosure Documents are likely violations of the FTC Act. The FTC also published an Issue Spotlight highlighting the top complaints from franchisees, including issues like unilateral changes to operating manuals and high default rates on SBA loans. Lastly, the FTC reopened the comment period until October 10, 2024, reflecting an ongoing commitment to addressing franchisee concerns.

Furthermore, on July 17, 2024, the FTC published an analysis detailing its stance against undisclosed “junk fees” imposed by franchisors, stating that such practices violate the Franchise Rule and Section 5 of the FTC Act.  This analysis explicitly targets undisclosed fees related to marketing, training, property improvement, and other franchisor-mandated products or services. While this is a step in the right direction, the ongoing process must ensure these guidelines are actionable and that franchisors do not continue to use their size and influence to bully franchise owners.

NCL’s position

NCL strongly urges the FTC to revise its current approach by proposing new rules to better protect franchisees. The exclusion of franchisor-franchisee agreements from the Non-Compete Rule, coupled with the delay in addressing franchisor business practices, has left significant gaps in protection for franchisees. The prolonged inaction following the comment period undermines the urgency to tackle pervasive and often exploitative practices in the franchising industry.

The FTC’s recent developments, including the stance against undisclosed “junk fees” and other contract provisions that restrict franchisees, are commendable but only a starting point. NCL calls for the FTC to prioritize robust and actionable regulations that ensure fair treatment of franchisees, promote transparency, and foster a competitive marketplace. It is crucial that the FTC heeds the thousands of stakeholder comments and implements comprehensive protections to address the power imbalances and unfair practices currently faced by franchisees.

NCL recently wrote a letter to FTC Chair Lina Khan on this issue, in which we highlighted that some of the largest franchisors control their franchisees to such an extent that they are effectively operating as the owners and operators of these individual locations while leveraging the legal benefits of being a franchisor. This creates a system where they enjoy the benefits of ownership without any of the risks – which they transfer to their franchisees. We are concerned that private equity firms take advantage of U.S. franchise law, and their heavy-handed control, if left unchecked, threatens to destroy the franchise model and even ruin the American Dream for so many hardworking franchisees.

Sources

Press Release

Non-Compete Clause Rule

Non-Compete Clause Rule Rulemaking Docket

Solicitation for Public Comments on Provisions of Franchise Agreements and Franchisor Business Practices

Solicitation for Public Comments on Provisions of Franchise Agreements and Franchisor Business Practices Rulemaking Docket

Financial Times

TroutmanPepper 

The National Law Review

Melissa Catalano Document (FTC-2023-0026-0001)

William Kyle (FTC-2023-0026-0001)

Mark Liston Document (FTC-2023-0026-0001)

The National Law Review: FTC Issues Statements Signaling Major Changes to its Oversight of Franchise Relationships and Franchise Disclosure Requirements

*Lathrop GPM: FTC Takes Action Impacting the Franchise Relationship

*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 nclnet.org.

NCL sues Washington Nationals over junk fees not disclosed in advertised prices

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July 17, 2024

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

WASHINGTON, DC – Today, the National Consumers League (NCL) announced that it has sued the Washington Nationals on behalf of a class of affected consumers in the District of Columbia and beyond for violations of the D.C. Consumer Protection Procedures Act in connection with Nationals’ single-game ticket sales practices.

Consumers are entitled to truthful information from merchants, including information about prices. According to NCL’s complaint, the Nationals advertised deceptively low prices for their tickets by failing to disclose mandatory “ticket processing” fees that could increase ticket prices by more than 25%. The complaint explains that tickets the Nationals advertised on their website as “starting at $9” actually cost $11.25 once the mandatory “ticket processing fee” was added, and that in reality, the Nationals never intended to sell those tickets “starting at $9” on their official website.

Concealing fees of this sort – commonly known as “junk fees” – until late in the transaction is a misleading practice known as “drip pricing,” which frustrates and harms consumers, according to the complaint.

NCL’s complaint alleges that this has been a practice for the Nationals for years, and that these ticketing practices are misleading – and illegal under D.C. law. The D.C. Consumer Protection Procedures Act (CPPA), D.C. Code § 28-3901 et seq., provides a robust set of protections for consumers.  Among other things, it protects the basic right not to be misled about the price of goods and services being offered for sale.

“It’s disappointing that ticket sellers like the Nationals hide the real price of their tickets from consumers until so late in the process,” said Sally Greenberg, NCL’s chief executive officer. “The junk fees attached to the Nationals’ tickets are wrong, and they’re illegal.  We hope this lawsuit brings some much-needed reforms to the ticketing industry to help protect consumers from these abusive practices.”

NCL’s lawsuit seeks damages on behalf of the class of consumers as well as other relief.

Read the full complaint here.

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About the National Consumers League (NCL) 

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

Chaotic evacuation of American Airlines Flight 2045 shows urgent need for updated evacuation standards and minimum seat sizes

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July 17, 2024

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

WASHINGTON, DC – The evacuation of American Airlines Flight 2045 on July 12 at the San Francisco International Airport appears to have taken significantly longer to complete than the federal standard of 90 seconds. While only minor injuries have been reported, delays in the evacuation created an unacceptable risk of major injuries or death for the passengers and crew on board.

Such chaotic scenes again highlight the urgent need for the Federal Aviation Administration (FAA) to update its emergency evacuation standards to reflect the modern flying environment.

The lengthy American Airlines evacuation was not an anomaly; evacuations over the past decade have consistently exceeded the FAA’s 90-second standard. Evacuation standards were last updated in 2005 and over the intervening 19 years, the in-cabin environment has evolved substantially. Despite these changes, the FAA has rejected or failed to act on 27 recommendations from the FAA Emergency Evacuation Standards Advisory Rulemaking Committee or those of the U.S. Department of Transportation’s own Inspector General. 

As a result, the American Economic Liberties Project, Consumer Action, Consumer Federation of America, FlyersRights, the National Consumers League, Travelers United, and U.S. PIRG are calling on the FAA to urgently address its antiquated safety regulations by:

Updating outdated evacuation standards. Current standards do not reflect the modern cabin environment and do not account for passengers of all ages and body types, record-high passenger load factors, the proliferation of personal electronic devices, the increased amount of carry-on baggage, or the cramped seating conditions of modern aircraft.

Establishing minimum passenger seat sizes. Despite receiving two mandates from Congress and over 26,100 public comments on the issue, the FAA still has not set minimum dimensions for airplane seats. The consistent shrinking of passenger seating has allowed carriers to increase the number of passengers in the aircraft without also increasing the number of exits. Additionally, the cramped seating poses a physical impediment to quick evacuation of the aircraft. 

“The FAA has the ability to reduce the risk of the chaos like what unfolded on Flight 2045,” said John Breyault, National Consumers League vice president of Public Policy, Telecommunications, and Fraud. “Passenger safety and a profitable airline industry are not mutually exclusive. For too long, however, the agency has allowed the airline industry’s concerns about its bottom line to stand in the way of creating standards that lead to a safer cabin environment. That has to stop.”

“The FAA is long overdue in updating its emergency evacuation training and procedures,” said William J. McGee, senior fellow for Aviation & Travel at American Economic Liberties Project. “In recent years we’ve gotten very lucky, as numerous potentially deadly evacuations far exceeded the FAA’s own 90-second timeline. It’s time to rely on proven standards rather than luck.”

“This serves as another example of why the FAA must look at this issue with the importance it deserves,” said Teresa Murray, consumer watchdog director, U.S. PIRG. “The recent evacuation tests relied on ‘able-bodied adult subjects under 60,’ the FAA acknowledged in 2022. We all know this doesn’t reflect modern travel — planes filled with children, senior citizens, people with disabilities and people who are heavy. This issue must be prioritized before we have a tragedy.”

“Emergency landings and emergency evacuations occur several hundred times annually often due to smoke or fire in the cabin. The latest incident showed confusion and panic after a fire erupted in the rear of the plane,” said FlyersRights President Paul Hudson. “Needed improvements were recommended unanimously by the FAA Emergency Evacuation Advisory Rulemaking Committee in 2020. But it is up to FAA Administrator Whitaker to take action, without further delay.”

“This terrifying event is a stark reminder to the FAA to move forward with updated, safer evacuation standards and seating dimensions that reflect current air travel conditions,” said Erin Witte, director of consumer protection at Consumer Federation of America. “We urge the FAA to take the opportunity provided by Congress in the Reauthorization Act to publicly commit to addressing these issues.”

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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.