Protecting consumers from junk fees and unfair pricing

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Fighting to lower costs for Amer-icans is at the heart of President Biden’s economic agenda—just as it is for the National Consumers League (NCL). The last few years have been especially challenging for a lot of families, as the pandem-ic-era disruptions and Putin’s war have driven up costs in every part of a household budget, from rent to groceries to childcare.

Since taking office, President Biden has called on big corporations to pass along savings to consumers; secured historic legislation lowering the costs of prescription drugs, childcare, utility bills, and health insurance; directed his Cabinet to use every administrative tool to lower costs; and gone after hidden junk fees in nearly every area of a family’s budget—from banking overdraft fees and credit card late fees to attending live events. 

These junk fees are everywhere, whether in the form of mysterious “resort fees” that are tacked onto bills for ordinary hotel stays or “processing fees” attached to concert tickets at the last minute. While hidden fees might not matter to the wealthiest Americans, they add up for hard-working Americans. Research shows that consumers pay upwards of 20% more when faced with junk fees than if they had access to the all-in price up front. It is hard for honest companies that show the all-in price up front to compete fairly when competitors post prices without the hidden fees that consumers will ultimately have to pay.

This is why the President launched a Strike Force on Unfair Pricing and has charged his Competition Council with eliminating junk fees across industries. The Administration has implemented rules against junk fees related to air travel, cable TV, broadband, and financial services—like banking overdraft fees. This is putting hundreds of dollars back into the pockets of American families.

The Administration’s actions to cut credit card late fees will save the estimated 45 million Americans who regularly incur these fees an average of $220 per year. Our actions to ban family seating fees could save a family of four $200 on a round-trip ticket. Another proposed action would require businesses—including online ticket sellers, apartment rental companies, hotels, and car rentals—to provide consumers with the all-in price up front and to disclose any mandatory fees, what they are for, and whether they are refundable. The Administration’s actions are projected to save Americans more than $20 billion annually—and we are just getting started.

So much of the progress we have made to crack down on junk fees would not be possible without the advocacy and research of organizations like the NCL, which has a distinguished 125-year history of advocating on behalf of American consumers.

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Lael Brainard is an economist who serves as the Director of the National Economic Council.

The push to advance consumer product safety

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I wholeheartedly subscribe to the philosophy espoused by Dr. Martin Luther King, Jr. when he said that “human progress is neither automatic nor inevitable” and that it is dependent upon “the tireless exertions and passionate concern of dedicated individuals.”

We do, in fact, live in a safer world today because of the tireless exertions and unyielding passion of Sally Greenberg and her team at the National Consumers League (NCL) to make it so. Even if achieving a lifesaving product safety improvement requires years of determined effort to overcome the fierce opposition of powerful interests, we have seen that NCL does not stop working until progress is achieved.

I first met Sally back in the late 1990s when I was the executive director of the Consumer Product Safety Commission (CPSC), and Sally had just come to Washington, DC, to work for Consumers Union, which is now Consumer Reports. People thought with our shared interest in consumer protection, we would get along well. It was the beginning of a beautiful friendship and a productive one.

For the past 15 years, we have been engaged in an effort to make table saws less dangerous. This is an issue of considerable and devastating magnitude. Each year, there are approximately 30,000 table saw accidents that require medical treatment, including about 4,000 amputations.

Dr. Steve Gass, an attorney, physicist, and amateur woodworker, came up with an idea to fix this. He developed a sensor and a braking mechanism that would stop a saw blade immediately upon contact with skin, rendering what would have been a severe laceration into the equivalent of a paper cut. At first, Steve and his partners tried to get the table saw industry to license his new technology and incorporate safety into the saws they sell to the public. But the industry wasn’t interested in spending money to protect their own customers. So, Steve and his partners founded a table saw company called SawStop. These saws have prevented tens of thousands of injuries in the 20 years they have been on the market.

Dr. Gass and his partners believed that safety technology should become the standard for the industry, but larger table saw manufacturers fought back and were successful in keeping federal action from occurring. Sally Greenberg, an amateur woodworker herself, heard about this on National Public Radio and got involved. It has been a difference maker.

NCL has been a key player in a decades-long campaign that involved, in part, bringing victims of table saw accidents face-to-face with members of Congress and CPSC commissioners. It’s one thing to hear about a problem. It’s quite another to meet a firefighter who could no longer hold a fire hose and couldn’t do the job he loved, a musician who could no longer play guitar and became suicidal, or a high school student who lost fingers in shop class.

It has been a long battle against an entrenched and powerful industry, but we’re now in the final stages of federal rulemaking that will not just mitigate the risk of table saw accidents, but virtually eliminate that risk. This would not have happened if not for Sally Greenberg and NCL.

But that is what NCL has done for 125 years. It’s thanks to this organization’s work, for example, that rearview backup cameras are now standard in cars. When the technology was developed, it was only available as an option for luxury vehicles. It took NCL and other advocates years of determined advocacy, pointing out that the lack of these cameras was leading to hundreds of deaths—mostly of small children—and thousands of injuries each year. Today, thanks to this work, cars are safer, and more children are alive.

Referring again to Dr. King’s words, we can never take progress for granted or assume it will occur, not without the determination of those who will never give up, no matter how fierce the opposition or how difficult the fight. That is Sally Greenberg and her team, and that is the history of the National Consumers League.

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Pamela Gilbert is a Partner in the law firm of Cuneo Gilbert & LaDuca LLP and previously served as Executive Director of the Consumer Product Safety Commission, Consumer Program Director at the U.S. Public Interest Research Group, and Executive Director at Public Citizen’s Congress Watch. 

Leveling the playing field: Advocating for fair and competitive markets

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When the marketplace works as it should, it’s a wonderful thing for consumers. Free and fair competition generates value in the form of higher quality and affordable pricing. Consumers have the power of their pocketbooks to reward those companies that offer a square deal and force others to do better. It’s a system that works most of the time.

But sometimes markets run astray of these fundamental principles. They need a nudge, or something a little more forceful, to get back on track. This is where the National Consumers League (NCL) has been so valuable for so long, sounding the alarm when corporate malefactors distort our markets, and keeping the pressure on until solutions are put in place.

After having had the privilege of chairing the Federal Trade Commission (FTC), becoming affiliated with NCL seemed a natural step because of the similarities of the two organizations’ missions. The FTC is all about keeping the marketplace free of distortions such as monopolization and deceptive advertising that put consumers at an unfair disadvantage. And this is what NCL has been doing throughout its century-plus history, insisting upon corporate accountability, the preservation of competitive marketplaces, and strong and sensible regulations to protect consumers.

In recent years, we’ve seen NCL’s influential voice and determined actions come into play where they are needed most. For example:

● NCL has been a leading force in protecting consumers who buy tickets for live events, shining a spotlight on Live Nation- Ticketmaster’s monopolization of the marketplace and the excessive costs that lack of competition is imposing upon ticket buyers. NCL has been on the front lines of this fight, encouraging both legislation and antitrust action by the federal government.

● Lack of competition in the healthcare industry has been a long-standing problem and one that NCL continues to address. Not only have persistent hospital consolidations led to higher costs for patients, but the control of the prescription drug marketplace by three giant pharmacy benefit managers is pushing consumers to buy higher-priced medicines and denying them access to cheaper generics and biosimilars. NCL was a critical player in encouraging the FTC to open an investigation into pharmacy benefit managers practices.

● When this nation experienced an infant formula crisis from both contamination and shortage, NCL persistently cited the fact that only three manufacturers control 98% of the market—and that this problem could occur again if we don’t incentivize more companies to compete.

● And it was NCL that raised the alarm that more than 90% of the nation’s largest airports are dominated by just one or two airlines, leading Americans to pay higher travel costs than consumers in other countries. Also, NCL is out front urging the Department of Transportation to force airlines to be clearer and less deceptive about their add-on fees so that consumers can make apples-to-apples price comparisons.

These are just a few examples of the essential work that NCL is performing to complement the efforts of the FTC and other federal and state agencies and, in many cases, to draw the regulators’ attention to anticompetitive situations that warrant action.

As I mentioned in my board chair letter at the beginning of this book, NCL has done this with a staff and resources immensely smaller than the industries it’s working to hold accountable. NCL punches far above its weight. Impressive seems like an understatement in describing not only the great work NCL is doing on behalf of Americans today, but also the great work it has been doing over the past 125 years. NCL is truly a vigilant guardian, never leaving its post in making sure that marketplaces work as they should for generations of consumers.

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Jon Leibowitz is former Chairman of the Federal Trade Commission (FTC) and President of the National Consumers League Board of Directors. 

NCL applauds DOT advancement of delay compensation rules

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December 5, 2024

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

Washington, DC – Today, the U.S. Department of Transportation (DOT) issued an advanced notice of proposed rulemaking (ANPR) on compensating travelers for significant flight delays and cancellations. The Department is exploring remedies for passengers who are affected by disruptions that occur due to reasons within an airline’s control. Should DOT finalize a rule requiring cash compensation alongside food, lodging, and ground transportation when necessary, the U.S. would join other jurisdictions that have had similar regulations for decades, like the European Union and Canada.  

“Passengers shouldn’t bear the costs of poor business performance. Especially if you’re traveling with a family, expenses add up quickly for last-minute rebooking and accommodations when an airline has a meltdown,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “In taking this step, the Department is continuing its important work to protect airline travelers. We look forward to supporting DOT’s rulemaking effort.” 

NCL has supported a delay compensation mandate for years. In recent airline meltdowns, it has become commonplace for families to lose significant sums of money in out-of-pocket expenses, with reports highlighting losses of $2,000 to $7,500 in costs associated with rebooking flights, finding lodging, and contending with price gouging. U.S.-based air carriers already pay compensation for significant delays and cancellations when servicing certain overseas routes, like those in Europe, but do not provide those same protections when flying domestically.  

Additional reading: 

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

NCL urges Congress to strengthen consumer protections against aviation cyber incidents, including delay compensation 

Advocates call on Biden Administration to act on airline passenger protection mandates 

NCL applauds Congress’s passage of aviation consumer protection improvements 

Full list of advocates’ legislative priorities for aviation consumer protection 

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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 stands firm against threats to the Consumer Financial Protection Bureau

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December 3, 2024

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

Washington, DC – As the nation’s oldest consumer advocacy organization, the National Consumers League (NCL) is outraged by recent calls to eliminate the Consumer Financial Protection Bureau (CFPB), a vital agency safeguarding Americans from corporate exploitation, fraud, and abuse. The reckless suggestion to “cancel” the CFPB by Elon Musk, is a direct attack on consumer protections.

“Eliminating the CFPB would leave U.S. consumers defenseless against predatory practices, corporate greed, and fraudsters,” says National Consumer League’s John Breyault, VP of Public Policy, Telecommunications, and Fraud. “Without a strong CFPB, deception in the marketplace will flourish, harming not just consumers, but also honest businesses striving to treat their customers with fairness and respect.”

The CFPB, created in the wake of the 2008 financial crisis through the Dodd-Frank Wall Street Reform and Consumer Protection Act, is a lifeline for millions of Americans. Under the leadership of Director Rohit Chopra, the CFPB has delivered $20 billion in consumer relief. The watchdog agency has proven indispensable, delivering multiple wins for everyday Americans, including:

  • Wells Fargo Settlement: A historic $1 billion resolution following fraudulent account-opening practices.
  • Medical Debt Protections: Proposed measures to eliminate medical debt from credit reports, potentially impacting $49 billion in reported debt.
  • Reducing Fraud on Payment Apps: Implemented protections to reduce fraud on Digital Payment App platforms like Apple Pay and Venmo.

The NCL unequivocally opposes any effort to dismantle the CFPB, as doing so would expose Americans to fraudsters, discriminatory lending, and exploitative financial practices. Eliminating the bureau would not only reverse years of progress but would also send a dangerous message to those likely to break the law that corporate profits matter more than consumer protections.

The National Consumers League stands firm: We will not let consumer protections be sacrificed. Americans deserve fairness, transparency, and accountability. We call on all policymakers to stand with consumers and defend the CFPB.

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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.

Sally Greenberg: Fluoridated water is essential for public health, not a danger

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Sally Greenberg: Fluoridated Water is Essential for Public Health, Not a Danger

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

Washington, DC— In response to recent media coverage about Robert F. Kennedy Jr. and Florida Surgeon General Joseph A. Ladapo campaigning against water fluoridation, Sally Greenberg, CEO of the National Consumers League (NCL), issued the following statement:

“Robert F. Kennedy Jr.’s statements on fluoride could jeopardize a proven public health measure. Consumers are best served by reliable, evidence-based health information, not alarmist misinformation.”

The comments made by Kennedy and Ladapo echo similar claims from the 1960s, when groups like the John Birch Society suggested that fluoridation of drinking water was a “communist plot.” Today’s anti-fluoride activists point to a 2019 Canadian study that found that pregnant mothers exposed to higher fluoride levels during pregnancy, gave birth to baby boys with slightly lower IQ’s, as measured at ages 3-4. In this study, mothers were asked to self-recall beverage consumption per day and did not take into account the children’s fluoride exposure in early childhood.

The Center for Disease Control and Prevention (CDC) calls fluoridated drinking water one of the most successful public health interventions in U.S. history, with its origins dating back to 1945 in Grand Rapids, Michigan. Since then, water fluoridation has been proven to significantly reduce rates of tooth decay, especially in economically disadvantaged and vulnerable populations. The CDC estimates that fluoridated drinking water reduces tooth decay by approximately 25% in children and adults. Health authorities, including the American Dental Association and World Health Organization, affirm that fluoride is safe at the levels currently used in the U.S.

“Fluoridated water is a vital measure to protect public health and reduce health disparities in dental care,” says Greenberg. Recent examples of removing fluoride from water, such as Calgary, Canada (2011) and Juneau, Alaska (2007), resulted in an explosion of dental decay. In both cities, the absence of fluoride in the drinking water corresponded with an increase in cavities and dental surgeries, particularly among children. For more information, visit CDC’s resources on fluoride.

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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 CFPB final rule enabling supervision of payment apps

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

WASHINGTON, DC–Today, the Consumer Financial Protection Bureau finalized its larger participant rulemaking, allowing the Bureau to better ensure that payment app companies are complying with federal consumer protection law. As the use of payment apps has exploded over the past decade, CFPB oversight is critical to ensuring that consumers using these apps are receiving the full care and protections they are legally entitled to, including safeguards around payment errors, peer-to-peer fraud, and corporate surveillance.  

“As our financial system evolves, it’s important that regulators keep up. Director Chopra and CFPB staff have done invaluable work over the past three years to ensure that payment facilitators follow the law, even as the technology advances,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “The final rule announced today will help better protect the millions of consumers who use digital wallets and payment apps every day.” 

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.

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Consumer coalition supports DOT proposal to ban family seating fees, urges action on additional passenger protection issues

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November 8, 2024

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

WASHINGTON, DC – Today, the National Consumers League (NCL) and six other public interest organizations filed comments supporting the U.S. Department of Transportation’s (DOT) proposed rule to ban fees charged to families trying to secure seats next to their children. NCL has long urged DOT to act on this important safety issue and applauds Transportation Secretary Buttigieg for taking the necessary steps toward ending this unjustifiable practice. 

“We have a basic right to fly with our children and not pay a junk fee for doing so,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “Parents should not have to choose between an affordable airline seat and their children’s safety. Congress and DOT both reached the right conclusion that ending the airlines’ unjustifiable tax on families is the right thing to do for the flying public.” 

NCL also commended DOT for raising questions regarding air carriers’ obsession with add-on fees generally, like charges for providing drinking water to passengers or printing a physical boarding pass. The availability of 24/7 live customer service and seating that meets Federal Aviation Administration (FAA) safety guidelines were also basic services that the consumer coalition urged DOT to require airlines to provide, fee-free. 

“No matter what type of ticket you bought, you should not have to worry if your airplane seat meets FAA safety guidance or if you can receive drinking water on a long flight,” said NCL Public Policy Manager Eden Iscil. “Offering affordable fares is great, but that does not justify skimping on basic consumer protections, especially when it comes to our health and safety. DOT is the only agency in the country with a mandate to regulate these issues. If it doesn’t step in, no one else will.” 

The full comments submitted by NCL, the American Economic Liberties Project (AELP), Consumer Action, Consumer Federation of America (CFA), FlyersRights, Travelers United, and the U.S. Public Interest Research Group (U.S. PIRG) can be found here. 

Further 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.

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.