NCL applauds DOT for proposed passenger compensation requirements

May 8, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – The National Consumers League (NCL) today applauded the Department of Transportation’s (DOT) announcement that it will begin a rulemaking to require airlines to provide compensation to passengers affected by controllable flight cancellations and delays of more than three hours. Additionally, air carriers would have to provide meals, hotel accommodation, and rebooking when necessary. 

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

An airline ticket should not be a lottery ticket. Unfortunately, current industry practices too often make it a game of chance where consumers risk getting stranded by airline meltdowns. DOT’s proposed rule recognizes a very simple truth: passengers’ time is valuable, and they should be compensated when airlines waste it. NCL has long fought for such a requirement and we are pleased that DOT has responded to our advocacy. 

NCL has been a leading voice for expanding consumers’ rights in air travel. The League’s latest aviation consumer protection priorities can be found here.

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

National Consumers League calls for accountability in banking collapses 

March 22, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – The National Consumers League is calling on Congress and the Biden Administration to pass long-overdue reforms and roll back the 2018 deregulations that contributed to the collapse of regional banks like Silicon Valley Bank. Absent such action, it is likely that consumers’ faith in the banking system will continue to be put at risk with negative consequences for the entire American economy.

The following statement is attributable to Sally Greenberg, NCL Chief Executive Officer: 

“The public should not be on the hook for bankers’ poor risk management. Consumers deserve a full explanation of what went wrong, from improper financial administration to poor governmental oversight. To reduce the risk of such meltdowns happening in the future, those responsible – including executives and regulators – must be held accountable.

In 2018, the National Consumers League (NCL) joined with dozens of other public interest organizations in opposing the banking deregulation law known as the Economic Growth, Regulatory Relief, and Consumer Protection Act. This month, the collapse of multiple banks highlighted the risk of allowing these institutions to operate without scrutiny. Silicon Valley Bank in particular escaped stress testing and enhanced liquidity requirements as a result of the 2018 deregulation. Last week, NCL endorsed legislation introduced by Senator Elizabeth Warren and Representative Katie Porter that would reverse the 2018 banking deregulation provisions. 

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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.

What will happen to President Biden’s student debt forgiveness plan?

Sally Greenberg

By Sally Greenberg, Chief Executive Officer

Last week, I attended the oral argument in the Supreme Court challenging student debt forgiveness initiative launched by the Biden Administration. The states of Missouri, Nebraska and four others, along with two students, are challenging Biden’s proposal to forgive student loan debt for 40 million Americans.

During his campaign, President Biden promised to reduce the albatross of student debt burdening millions of young Americans through his Department of Education. His proposal only applies to federal loans and is narrowly tailored and means tested. The plaintiff states and students challenging the loan forgiveness plan are arguing that it exceeds federal law, and that “canceling hundreds of billions of dollars in student loans is a breathtaking assertion of power.” The administration countered that Education Secretary Miguel Cardona has the authority to forgive the debt under a 2003 law, the Higher Education Relief Opportunities for Students Act.

The debt forgiveness program would cancel up to $10,000 of debt for those who have federal student loans as long as they make under $125,000 or $250,000 for couples. Those getting Pell grants are eligible for an additional $10,000. Thus, 20 million students could see their debt totally wiped out; all told, it will cost taxpayers $430 billion.

Sitting in the courtroom, I was seeing the new members of the Supreme Court in action for the first time and that was fun. Each of the justices has their own distinct style. Some are far more engaged than others, like the newest member, Justice Katanji Brown Jackson, who fired away a series of questions to the AG from Missouri about whether the state had standing to challenge the law. Even conservative Justice Amy Coney Barrett questioned standing,  asking why those alleging injury weren’t plaintiffs in the case. Justices Sotomayer and Kagan also pressed the plaintiffs on both the broad language in the law and the standing problem.

Solicitor General Elizabeth B. Prelogar, whose argued the case for the Biden Department of Education, argued that the Department’s plan was exactly what Congress had in mind when it passed the 2003 law, giving the executive branch the power to … “waive or modify any statutory or regulatory provision.”  I Wiki’d Prelogar and learned some cool facts: she’s a Harvard Law grad who won Miss Idaho Teen USA of 1998!  She is fluent in Russian, and her father went to my alma mater, Antioch College in Yellow Springs, OH and oh yes, I was delighted to see that her dad served at one time as head of consumer protection for the North Carolina Attorney General.

I realize I’m not an unbiased observer, but I thought Prelogar had the better arguments, First, the law is broadly worded and gives a lot of latitude to the Executive Branch on student loan waivers. Second, the standing issue is a serious hurdle for the opponents. To challenge the loan forgiveness program, they need to show that they have suffered a specific, rather than generalized, injury that can be remedied by relief from the Court. Neither of the challengers can show direct harm.

The bottom line for the National Consumers League and the hundreds of groups that support this narrowly tailored loan forgiveness is that the $10,000- $20,000 debt for 40 million Americans can be crippling to families –the reality is that student debt prevents many young people from buying homes, starting families and getting on with their lives. We are therefore hoping against hope that the Supreme Court throws out this challenge and the student debt forgiveness proposal at last be implemented.

New research reiterates the need for consumer caution, federal protection related to marijuana companies misleading claims

March 13, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – Data Science Solutions, LLC, in partnership with NCL, today released new research that dives into false or misleading medical claims made by several leading marijuana companies on their social media platforms. The analysis qualitatively observes how these claims are framed to appeal to consumers, determines the reach of their messaging, and identifies policy solutions to help increase state and federal regulatory and enforcement action to end false – potentially harmful – marketing.

“Consumers should understand what they’re up against when perusing social media,” said Sally Greenberg, Executive Director of the National Consumers League. “Twitter in particular may be viewed as a more trustworthy platform and licensed marijuana companies will often site reliable academic institutions or studies in a misleading way. These companies use Twitter to target consumers and declare that their products can help address, even treat, health issues from ‘pain’ to neurological diseases, even cancer. However, these claims are not backed by sound, clinical research – though the data is lacking at best, companies don’t let that stop them from trying to profit.”

The FDA, FTC, and Congress can do more to protect consumers and hold these companies accountable. The paper urges Congress to “encourage FDA and FTC to expand their enforcement against therapeutic claims made by cannabis companies and provide the necessary resources for the FDA to conduct effective oversight of marijuana-related health claims on social media platforms,” And recommends FDA begin using automated tools to monitor cannabis companies’ social media posts efficiently and effectively.

“Consumers deserve better,” said Greenberg. “These companies can and should market their products in an honest way and put consumer health over profits. Investing in thorough research so that we may better understand the true therapeutic potential of marijuana would be a win-win for all.”

To learn more about the risks of unregulated cannabis products, visit cannabiswatch.org.

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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.

National Consumers League statement on Gigi Sohn’s FCC nomination withdrawal

March 7, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — Today, Gigi Sohn announced that she has asked President Biden to withdraw her nomination to the Federal Communications Commission.

The following statement is attributable to Sally Greenberg, NCL Chief Executive Officer:  

“We are disappointed that Gigi Sohn’s nomination to the Federal Communications Commission was derailed by entrenched industry players and their allies in Congress. Gigi is a true friend to consumers and a well respected colleague and communications lawyer with strong credentials to serve on the FCC.  She has spent her career speaking up for the most disenfranchised consumers and her confirmation would have broken the current 2-2 deadlock, which makes it hard for FCC to do its important work. There is so much work to be done on tackling the problem of the digital divide, working on behalf of rural communities who still lack access to broadband, and ensuring that every child has affordable and accessible broadband in their homes, libraries and schools. Gigi’s voice and expertise would have been so valuable on the Commission. It’s truly a loss to the country that she felt she had no choice but to withdraw her nomination. ”

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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.

Stop senior scams!

Happy Consumer Protection Week! While fraud can affect anyone, regardless of age and other demographic information, Fraud.org and NCL are putting the spotlight on scams targeting older Americans.

Supreme Court should affirm legality of student debt cancellation

February 28, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — Today, the Supreme Court is hearing challenges to President Biden’s student debt relief program. With the potential to narrow the racial and gender wealth gaps, affirming the legality of debt cancellation would be transformative for over 40 million Americans.

The following statement is attributable to NCL Chief Executive Officer Sally Greenberg:

“We believe the Administration’s effort to cancel student debt is legal and long overdue. College tuition has grown substantially over the past few decades, and disproportionately burdens students of color and women. We hope that the Supreme Court will uphold the validity of the President Biden’s student debt cancellation and allow the Administration to ease the burdens associated with achieving an advanced degree.”

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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.

As Ticketmaster tries to change the subject, NCL defends fans’ rights in Maryland and Colorado

February 24, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — This week, Ticketmaster’s parent company, Live Nation Entertainment, announced record quarterly results, underscoring their dominance of the live event industry. Not content with revenues of $16.7 billion (up 44% from the pre-pandemic era), Live Nation launched a glitzy nationwide public relations campaign to roll out the so-called “FAIR Ticketing Act,” a not-so-subtle attempt to create laws that would cement its monopoly power.

State and federal legislators should not be fooled by Live Nation’s new push to change the subject after months of well-earned bad publicity. Despite its fan-friendly name, the FAIR Ticketing Act is anything by fair for consumers. We agree with Live Nation that there should be curbs on speculative ticketing, better enforcement of anti-ticket bot laws, and industry-wide all-in pricing requirements. Unfortunately, the true aim of the bill appears to be to give Live Nation, not fans, the ability to set prices and terms of sale on the secondary market; the one part of the industry the company does not monopolize.

The National Consumers League (NCL) has been active in trying to push back against such efforts. On Wednesday, John Breyault, NCL’s Vice President of Public Policy, Telecommunications, and Fraud testified before the Maryland House of Delegates in support of House Bill 795, common-sense consumer protection legislation that would mandate all-in pricing of tickets, promote transparency of ticket holdbacks, and guarantee that consumers can benefit from a competitive secondary market.

“Fans in Maryland and throughout the country benefit from an open, competitive market for live event tickets,” said Breyault. “HB 795 would put Maryland at the forefront nationally of states that have made putting fans rights ahead of the interests of a monopolistic ticketing industry that is too often rigged against consumers.”

Breyault also testified before the Colorado Senate in opposition to SB 60, a bill supported by the ticketing industry that would allow multi-billion-dollar companies like Ticketmaster to dominate the secondary ticket market. The bill would allow Ticketmaster and sports teams like the Colorado Rockies or Denver Broncos to limit resale to ticket exchanges where they set the prices and terms of sale.

“Ticketmaster is already the 800-pound gorilla of the live event industry,” said Breyault. “If SB 23-060 was to become law, Ticketmaster would have free reign to cut off competitive choices for fans in Colorado”

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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.

National Consumers League statement on United family seating policy change

February 21, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — The National Consumers League (NCL) today welcomed United Airlines’ announcement that it will phase out family seating fees in its Basic Economy fare class. The move positions United as a leader in an industry that has long claimed that proposals to prohibit family seating fees are unnecessary. United’s change comes after years of advocacy by NCL and other advocates as well as more recent pressure from the Department of Transportation, Congress, and the Biden White House.  

The following statement is attributable to Sally Greenberg, NCL Executive Director:  

“While we are still awaiting all the details, United’s announcement is encouraging news. Budget-conscious families have for too long been asked to choose between saving money on their flights and the safety of their young children. While welcome, we still need common-sense consumer protection regulation that protects all passengers regardless of which airline they fly. Secretary Buttigieg, President Biden, and consumer champions in Congress should not take their eyes off the ball when it comes to putting family seating protections into laws and regulations.” 

Last week, NCL endorsed the Families Fly Together Act, sponsored by Senator Ed Markey (D-MA), Senator Richard Blumenthal (D-CT), Senator Amy Klobuchar (D-MN), and Majority Leader Schumer (D-NY). The bill would prohibit airlines from imposing any monetary charges on families that want to sit together during a flight. NCL has also called for such a prohibition to be included in the Federal Aviation Administration’s upcoming reauthorization legislation. 

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

NCL urges Senate committee to hold airlines accountable for operational meltdowns

February 9, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — Today, the Senate Commerce Committee will hold a hearing focused on Southwest Airlines’ operational meltdown in December 2022. The committee should use this opportunity to not only hold Southwest accountable but to also address the underlying causes of and remedies for chronic cancellations and delays that affect millions of passengers annually. 

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

“Instead of ensuring that thousands of travelers and employees weren’t stranded for the holidays, Southwest spent $5.6 billion on stock buybacks. But Southwest is not an outlier. Putting short-term profits ahead of long-term investments that prioritize the needs of passengers has been a hallmark of the industry for decades. This is one symptom of a broken marketplace where four carriers control over 80 percent of domestic flights. America’s airline passengers, whose tax dollars bailed out the airline industry to the tune of more than $50 billion, deserve better. The Senate Commerce Committee must thoroughly investigate what happened at Southwest and reform our air travel industry to ensure such crises never happen again.” 

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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.