AdvoCare settlement highlights FTC’s importance in protecting consumers from pyramid schemes

October 2, 2019

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

Washington, DC—Today, the National Consumers League, the nation’s pioneering consumer and worker advocacy organization applauded the Federal Trade Commission (FTC) for its successful investigation and settlement with multi-level marketing (MLM) company AdvoCare. The settlement, in addition to providing $150 million in relief to victims, implements a lifetime ban preventing AdvoCare from ever rejoining the MLM business.

The following statement is attributable to John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League:

Today’s settlement once again highlights the central role that the FTC plays in protecting Americans from illegal pyramid schemes. The FTC has a 45-year track record of winning favorable settlements and court judgements against pyramid schemes. In spite of this, many leading members of the direct selling industry continue to push a discredited bill that would dramatically undermine the Commission’s ability to protect consumers against companies like AdvoCare. 

Under the Orwellian name of the “Anti-Pyramid Promotional Scheme Act,” the bill would create a series of carve outs and safe harbors that would prevent the FTC from protecting consumers and entrepreneurs from all but the most blatant pyramid schemes.

Today’s actions by the FTC demonstrate the need for  continued  consumer protection under its existing authority. NCL opposes pyramid scheme legalization bills like the Anti-Pyramid Promotional Scheme Act, which is even now being peddled by industry lobbyists. We hope this bill will once again be stopped from gaining momentum by members of Congress.

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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 opposes harmful proposed rule that will expose more to hunger

September 23, 2019

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

Washington, DC—Today, the National Consumers League (NCL) submitted written comments opposing the USDA’s Proposed Rule: Revision of Categorical Eligibility in the Supplemental Nutrition Assistance Program (SNAP), arguing that the proposed policy change would impact millions who qualify for the federal program that is the nation’s first line of defense against hunger.

“Our organization is deeply concerned that the proposed changes would deprive an estimated 3.1 million people of access to this vital program and cause 500,000 children to lose their automatic eligibility for free or subsidized school lunch. This proposed rule may potentially worsen hunger among low-income households, harm local economies, and increase SNAP administrative costs,” wrote NCL in the comments.

Low-income households receiving cash assistance from Aid to Families with Dependent Children (AFDC), Supplemental Security Income (SSI), or General Assistance have long been considered automatically (or “categorically) eligible for SNAP, which means they do not separately have to pass SNAP’s asset or gross income tests.

Agriculture Secretary Sonny Perdue said the proposed rule change is intended to close a “loophole” that states have misused to “effectively bypass important eligibility guidelines.” However, that’s simply not the case. Broad-Based Categorical Eligibility (BBCE) allows states to cover the gap between income and need by considering cost of living, wages, and other local economic conditions when determining people’s eligibility for SNAP.

The National Consumers League strongly opposes the proposed rule that would expose even more people to the arbitrary food cutoff policy.

NCL’s written comments are available here (PDF).

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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.

I’m going for the kids’ portion!

With overweight and obesity stats in an upward trajectory, the National Consumers League and the Georgetown School of Business are partnering up for a survey on a simple topic: what do Americans know about portion sizes, calories of average foods, and how many calories we can eat each day without packing on the pounds? 

We have a health crisis in AmericaFrom 2015-2016, 39.8 percent of American adults were considered obesewhich means the body mass index (BMI) measurements of more than 129 million of us are considered obeseThe annual medical cost of obesity is estimated at $147 billion because heart disease, stroke, type 2 diabetes, and cancers are tied to obesity. What is particularly concerning is that more than a third of younger people, ages 20-39, are obese.  

In fact, the New York Times reported that roughly a fifth of our soldiers are obese! The military is trying to combat this problem by replacing sweet drinks with water and cutting out fried foods, but it’s not working. 

The United States Department of Agriculture’s Dietary Guidelines recommend that the average person should consume about 2,000 calories a day. Do most of us know that if you exceed 2,000 calories day regularly, you pack on the pounds? (That’s unless, of course, you’re getting a lot of calorieburning exercise or have a great metabolism.) Is that number too high for many of us? (It is for me. If I eat more than 1,650 calories, I know I’m going to put on weight.That’s what we want to find out with our research: what do Americans really know about this guideline? 

We will also be asking whether most Americans know how many calories are in average serving of common foods such as yogurt (150), hamburgers with bun (350), pizza (350 per slice), bagels (325), muffins (425), 4-piece fried chicken dinner with all the fixings (850-1,200), a 30oz. steak (1,400), a piece of cheesecake (650)big chocolate chip cookie (450)and an ice cream cone (300-400.) 

Also, dAmericans know what an average serving is? A Cheesecake Factory salad is not an average serving! Each of their salads have more than 1,300 calories. That’s too much for one meal. Unfortunately, restaurant serving sizes have increased a lot over the last several decades. 

Which brings me back to my headlinekids portions! I’ve begun sampling my local downtown DC upscale food spots popular with millennials like Roti, CAVAChoptThe custom is that you order a bowl of lettuce or spinach as a base and put lots of pretty healthy but also pretty caloric toppingsadd a protein for a few bucks extra, and crowned with shredded cheese and salad dressing. When you’re done, you have a big portion and lots of good food but also lots of caloriesalbeit not from hamburger and fries but still, calories! 

So try the kids’ portion! They are cheaper by a thirda lot less food, a lot fewer calories, and completely filling. My CAVA kids meal had a small white bread (unfortunately) pita, yogurt spread, two small spicy meatballs, cucumber salad, tomato salad, three pieces of fried breadand scoop of brown rice. In other words, a lot of food! I figured it was about 550 calories. Voila! A third of my 1,650 allowable daily intake of food. And I was stuffed. I’ll be trying other food outlets to check out the kids portions. And we recommend that other consumers do the samehelps to limit calories and prevent food waste when you’re eating out!

High school students shocked at waste uncovered during cafeteria food waste audits – National Consumers League

“Schools are a place of learning. The cafeteria should be too!”

I’m willing to guess that if you ask almost any student their favorite school period, the resounding answer will be “lunch!” My memories of school lunch involve scarfing down a peanut butter sandwich and quickly catching up with friends before our 30 minutes were up. The cafeteria is hectic, lines are long, and many students rush through their meals in order to preserve time to socialize.  So too often, a hasty lunch period leaves trash bins overflowing with half-eaten sandwiches and other barely touched food items.

Food waste in American schools is a major problem. Studies have found that U.S. schools waste a total of about $1.2 billion annually. There are many theories as to why schools produce so much food waste, but in order to really identify the root causes, we have to get our hands dirty. And who better to dig into a messy issue than energetic high school students?

In the spring of 2017, students participating in LifeSmarts, NCL’s signature consumer literacy program, were given the unique challenge of conducting a food waste audit in their school cafeterias. Throughout the 2016–2017 academic year, LifeSmarts students studied the impacts of food waste that infiltrate almost every aspect of consumers’ lives. Students learned about the humanitarian and environmental impact of food waste. Having this background knowledge helped the students contextualize the auditing challenge within the discourse of the national and global food waste problem.

The terms of the challenge required students to conduct one audit in their cafeteria during one lunch period. Students worked with their peers to separate waste into five separate bins: unopened food, organic waste, liquid waste, recycling, and landfill waste. Students recorded the weight of each bin and answered a series of data-related and critical thinking questions, which gave them an opportunity to connect their real-life results with the national and global impacts of food waste.

Students’ reactions were diverse, and their suggestions inform insightful structural and policy solutions for preventing and reducing food waste in schools and communities.

One student shared:

“Before the food audit, we predicted that the amount of food wasted would peak at around 70 percent of the total weight of food received, however when we combined the total weight of food thrown away and the unserved cafeteria food we were astonished to find that the true amount of food wasted was around 85 percent.“

Some students went an extra step to try to understand why food was being thrown out:

“Additionally, we were interested in evaluating the variety, amount, and nutrition within the available choices and determine how healthy students are eating at our school. This data will be shared with the food distributer for our high school as well as the School Committee.”

Students were also confronted with limitations from their school board:

“Unopened food cannot be shared, saved, or removed from the school per BOE directives.”

“Prepared cafeteria foods that were untouched had to be disposed of as food waste.”

As students became aware of the issue, they presented next steps for increasing efforts to reduce waste:

“Our LifeSmarts Team could encourage the administration to make a student lunch advisory board to review the lunches and see which meals students are reluctant to consume.”

One of the most striking findings from the audit challenge is the combined metrics of waste generated.

Instead of throwing away unopened food, it could have been recovered or donated. The potential for food rescue is detailed in the table below. Amounts were calculated using Food Rescue’s conversion tool.

Items rescued 2,444
Meals rescued 488
Pounds of CO2e rescued (the amount of carbon dioxide which would have the equivalent global warming impact) 305.5

The feedback from students who completed this challenge demonstrates the value in conducting food waste audits. Many students expressed interest in conducting more audits to dig deeper into the issue. Others were energized to move forward with engaging community members and school administrators to experiment with new solutions.

In the 2017–2018 academic year, LifeSmarts students will build on the momentum from the first audit challenge and test strategies for reducing waste in their cafeterias. Students will be encouraged to run longer audits, implement solutions, and conduct a second series of audits to measure their success. By collaborating with school administrators, food service workers, and community partners, students will navigate our complex food system, providing opportunities for solution-making from the ground up.