NCL statement on AT&T-T-Mobile USA merger announcement – National Consumers League

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March 20, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, D.C. – The National Consumers League, the country’s pioneering consumer organization, today called on the FCC and Department of Justice to vigorously review the proposed AT&T-T-Mobile USA merger to ensure that the public interest is protected.

The following statement is attributable to Sally Greenberg, Executive Director of the National Consumers League:

“Consumers rarely win when there are fewer choices.  The potential for additional wireless industry consolidation posed by this deal is greatly troubling.  Competition between multiple carriers has driven much of the consumer benefit in the wireless industry over the past decade.  This merger threatens that competition by potentially reducing the number of major national carriers from four to three. We therefore urge the Department of Justice and the Federal Communications Commission to closely scrutinize this deal to ensure that the public interest — not the bottom lines of wireless giants – is protected.”

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About the National Consumers League

Founded in 1899, the National Consumers League is America’s pioneer consumer organization. Its mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. NCL is a private, nonprofit membership organization. For more information, visit www.nclnet.org

Consumer Assembly 2011 – National Consumers League

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Consumer Federation of America’s (CFA) Consumer Assembly kicked off today! Since 1967, the assembly has served as the consumer movement’s principal meeting where consumer issues are reviewed, policy reforms are discussed, and new initiatives are presented.

Both NCL Executive Director, Sally Greenberg, and NCL Vice President of Public Policy Telecommunications & Fraud, John Breyault, participated in discussion panels.

Sally Greenberg discussing the congressional and regulatory agenda and effective strategies for defending old protections, writing new rules, and winning needed reforms. Ed Mierzwinski, Consumer Program Director at U.S. PIRG is pictured to her right.

 

John Breyault discussing the top and newest complaints that NCL's Fraud Center is receiving and approaches for more effectively resolving, and preventing, these grievances. John is pictured with Eduard Bartholme, Executive Director Call For Action, and Beverly Baskin, Senior VP & Chief Mission Officer Council of Better Business Bureaus

Kudos to CFA for hosting such a great event!

NCL applauds introduction of Child Sports Athletic Equipment Safety Act – National Consumers League

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March 16, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC – Citing the millions of sports-related concussions affecting consumers, the National Consumers League (NCL) today applauded the introduction of legislation to improve youth football helmet safety by Senator Tom Udall of New Mexico.

“The lack of an effective football helmet safety standard that addresses concussion risk puts millions of youth football players in danger,” said Sally Greenberg, NCL Executive Director. “Research into the long-term impact of concussions, particularly on children and teens, shows that this is serious risk and needs to be addressed at the national level.”

The proposed Children’s Sports Athletic Equipment Safety Act would require makers of football helmets to develop a voluntary safety standard for helmets that address concussion risk and the needs of youth players. The standards would be subject to review by the Consumer Product Safety Commission (CPSC). Should the voluntary standards prove insufficient to addressing concussion risk in new and reconditioned youth helmets, the CPSC would be directed to issue mandatory safety rules for football helmets. The legislation also contains provisions that would require independent third-party testing and certification of adult football helmets should the voluntary standards be insufficient.

“We are troubled by reports of lax oversight of reconditioned football equipment, particularly helmets,” said John Breyault, NCL Vice President of Public Policy, Telecommunications and Fraud. “The proposed legislation would provide parents with greater certainty that the equipment protecting their children is held to the highest safety standards.”

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About the National Consumers League

Founded in 1899, the National Consumers League is America’s pioneer consumer organization. Its mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. NCL is a private, nonprofit membership organization. For more information, visit www.nclnet.org

Disaster in Japan: Charity scam warning – National Consumers League

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With heartbreaking images of the recent devastation in Japan—villages reduced to rubble and submerged under water, city streets leveled, and survivors searching for missing loved ones—many consumers around the world are reaching for their wallets to help. Advocates are warning that con artists have long exploited natural disasters, and the Sendai earthquake and tsunami will likely be no exception.Over the years, opportunistic con artists have exploited both natural disasters and terrorist attacks to bilk generous consumers attempting to make financial contributions to rescue efforts, warns the National Consumers League. The recent devastating earthquake and Tsunami in Japan will likely be no exception.

In the days following a natural disaster, NCL’s Fraud Center (www.fraud.org) often hears from consumers about crooks’ attempts to take advantage of tragic events for their personal gain. After the September 11th terrorist attacks, as well as after Hurricane Katrina and the 2010 earthquake in Haiti, NCL’s Fraud Center received reports of a variety of scams tailored by con artists to capitalize on the rescue efforts. Scams typically involve con artists sending out emails purporting to come from a known and respected charity such as the Red Cross or Oxfam International. Victims are then directed to a fake Web site made to look like a legitimate charity’s site, where they are asked to hand over personal information or to donate via wire transfer, PayPal, or a credit or bank account. The scammer then makes off with the donation, and no funds are sent to support actual disaster relief.

“The continued tragedy of fraud perpetrated in the wake of such disasters is that charity scams not only rob the donors,” said Sally Greenberg, NCL Executive Director. “They divert contributions from legitimate charities, who are in great need for money and goods to assist those who need it most.”

NCL warns consumers to be especially wary of emails from strangers. While many legitimate companies, organizations, and individuals are using the Internet to mobilize help for disaster victims and share information about the latest developments, crooks may use email or social networking sites such as Facebook or Twitter to reach a wide audience of potential victims.

Be cautious about any solicitation that mentions the disaster. Give only to charities you know and trust. If you want to support disaster relief efforts, you should contact respected charities directly to make a contribution – don’t respond to requests for aid.

What to watch for:

Be wary of clicking on links or on attached files labeled photos or video in emails from senders claiming to represent charities because they may contain viruses.

Consumers can confirm that charities are properly registered by contacting their state charities regulators, which are listed in the state government pages of their telephone books. Information about charities is also available from the Better Business Bureau Wise Giving Alliance, 703-276-0100, www.give.org.Consumers can also check out charities at GuideStar (https://www.guidestar.org/), and Charity Navigator (https://www.charitynavigator.org/), both of which contain links to legitimate charities working on the relief effort.

Consumers can report disaster-related telemarketing or Internet fraud to NCL’s Fraud Center via the online complaint form on www.fraud.org.

Japanese earthquake and tsunami expected to cause uptick in donations to fraudulent charity schemes, warns NCL’s Fraud Center – National Consumers League

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March 15, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC—Over the years, opportunistic con artists have exploited both natural disasters and terrorist attacks to bilk generous consumers attempting to make financial contributions to rescue efforts, warns the National Consumers League. The recent devastating earthquake and Tsunami in Japan will likely be no exception.

NCL, the nation’s oldest consumer advocacy organization, collects consumers’ complaints of telemarketing and Internet fraud through NCL’s Fraud Center (www.fraud.org), and anticipates it will soon receive reports of tsunami-related scams.

“In the days following a natural disaster, we often hear from consumers about crooks’ attempts to take advantage of tragic events for their personal gain,” said John Breyault, Director of NCL’s Fraud Center.

After the September 11th terrorist attacks, as well as after Hurricane Katrina and the 2010 earthquake in Haiti, NCL’s Fraud Center received reports of a variety of scams tailored by con artists to capitalize on the rescue efforts. Scams typically involve con artists sending out emails purporting to come from a known and respected charity such as the Red Cross or Oxfam International. Victims are then directed to a fake Web site made to look like a legitimate charity’s site, where they are asked to hand over personal information or to donate via wire transfer, PayPal, or a credit or bank account. The scammer then makes off with the donation, and no funds are sent to support actual disaster relief.

“The continued tragedy of fraud perpetrated in the wake of such disasters is that charity scams not only rob the donors,” said Sally Greenberg, NCL Executive Director. “They divert contributions from legitimate charities, who are in great need for money and goods to assist those who need it most.”

NCL warns consumers to be especially wary of emails from strangers. While many legitimate companies, organizations, and individuals are using the Internet to mobilize help for disaster victims and share information about the latest developments, crooks may use email or social networking sites such as Facebook or Twitter to reach a wide audience of potential victims.

“Be cautious about any solicitation that mentions the disaster. Consumers interested in giving to the relief effort should give to charities they know and trust,” said Breyault. “Consumers who want to support disaster relief should contact respected charities directly to make a contribution.”

Additional tips for avoiding charity scams include:

Be wary of clicking on links or on attached files labeled photos or video in emails from senders claiming to represent charities because they may contain viruses.

Consumers can confirm that charities are properly registered by contacting their state charities regulators, which are listed in the state government pages of their telephone books. Information about charities is also available from the Better Business Bureau Wise Giving Alliance, 703-276-0100, www.give.org.Consumers can also check out charities at GuideStar (https://www.guidestar.org/), and Charity Navigator (https://www.charitynavigator.org/), both of which contain links to legitimate charities working on the relief effort.

Consumers can report disaster-related telemarketing or Internet fraud to NCL’s Fraud Center via the online complaint form on www.fraud.org.

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About the National Consumers League

Founded in 1899, the National Consumers League is America’s pioneer consumer organization. Its mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. NCL is a private, nonprofit membership organization. For more information, visit www.nclnet.org.

 

10 amputations a day: the need for a safer table saw – National Consumers League

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By Sally Greenberg, NCL Executive Director

I spent two days earlier this month at the Consumer Product Safety Commission (CPSC), listening to the pros and cons of setting a mandatory safety standard for table saws. Ten people every day – according the CPSC’s own data – have their fingers amputated in power saw accidents. 10 a day!  I’ve wanted to push the CPSC for a mandatory standard ever since hearing a story on NPR in May of 2006.

The inventors of a saw that senses an electrical current in a finger, as opposed to a piece of wood, and stops before serious harm is done, named their company SawStop. They also took the commendable step of petitioning the Commission and asking that it adopt a mandatory safety standard – that was in 2003. The petition was acted upon a few years later – the Commissioners voted to start the process toward a mandatory standard – but one of the three commissioners resigned and the process came to a halt. Even with a new and democratic administration in 2009, no action had been taken until now.

SawStop inventors Stephen Gass and David Fanning, Pamela Gilbert, former Executive Director of the CPSC, and NCL Executive Director Sally Greenberg at NCL’s office.

NCL helped jumpstart the process with a letter to the Commission in late November of 2010, which was followed a few months later by an article in USA Today.

The article got the attention of Commissioner Robert Adler, who hosted meetings this month with the Power Tool Industry, the trade group that is resisting adopting safety technology by arguing that it’s too expensive, that it’s unreliable, and that consumers don’t want it. Blah, blah blah. We’ve heard all that before – from the automakers, from lawnmower manufacturers and the swimming pool industry. Always an excuse for why they can’t do something that will prevent injury or save lives; it almost always comes down to putting profits before the safety of their customers.

In any event, Commissioner Adler also met with the SawStop inventors themselves, and with one other inventor who says his technology will also provide a margin of safety. The SawStop manufacturers have also received the Chairman’s Commendation from the CPSC back in 2001.

As NCL told USA Today, if you have a pattern of injury, a safety technology that can address it, and it’s affordable, you should move toward a mandatory safety standard so that all parts of the industry comply. That also creates a level playing field so that no one manufacturer can get by on the cheap and NOT install the technology.

We eagerly await the Commission’s further action on this after a busy series of meetings. 10 amputations a day and thousands more injuries every year, is an unacceptable toll when a ready fix is affordable, available, and waiting.

Avoid tax season pitfalls – National Consumers League

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April 15. The date fills many consumers with dread, since it marks the IRS tax filing deadline. For tax scammers, however, Tax Day equals (ill-gotten) profits. That’s why NCL is encouraging consumers to be extra-vigilant against predatory – or downright fraudulent – tax-related offers.Tax-related scams come in a variety of flavors. Here are a few of the more common variations:

Tax-related ID theft

Identity thieves have also increasingly sought to profit from their scams by filing fraudulent tax returns. According to the Federal Trade Commission Tax or wage-related fraud has also been the fastest-growing way that identity thieves misuse victims’ information since 2009. In 2011, the IRS’ Taxpayer Advocate Service received more than 34,000 tax identity theft cases, a 97 percent increase over 2010.

One of the more insidious dangers of this type of ID theft is that consumers may not become aware of it until they receive a note from their accountant or the IRS itself stating that their personal information has been misused (often to steal tax refunds or to apply for jobs).

While there is no fool-proof way to protect your identity, the IRS recommends several steps: 1) Don’t carry your Social Security card or other information with your Social Security number (SSN) with you; 2) Don’t give businesses your SSN just because they ask for it. Give it only when required; 3) Check your credit report every 12 months and challenge unusual activity; 4) Keep personal information in your home secure; 5) Protect your personal computer with firewalls, anti-virus software, security patches and change your passwords regularly; 6) Don’t give out personal information over the phone, mail or the Internet unless you know who you’re dealing with.

Tax relief scams

Around Tax Day, consumers would be wise to heed Benjamin Franklin’s old adage that “nothing can be said to be certain, except death and taxes.”

Consumers who owe back-taxes may be desperate to avoid the financial hit cutting a big check to the IRS may entail. Unfortunately, there are a multitude of fraudsters who claim that for an (often sizable) upfront fee, they can free taxpayers from having to pay the IRS. Others claim to be able to settle debts to the IRS for pennies on the dollar.

For example, in 2010, the FTC halted a scam run by a company called American Tax Relief (ATR) that had duped consumers out of more than $60 million. ATR claimed to be able to “free” consumers from tax liens, wage garnishments, levies and “unbearable monthly payments for up-front fees of $3,200 to $25,000. In fact, ATR provided little if any tax-relief for its clients

A complaint to NCL’s Fraud Center is illustrative of how these scams work. “Stephen” was worried about the money he owed the IRS. He contacted a company that assured him he would be work with tax attorneys who would settle his debt. Stephen sent them his personal information and tax returns from previous years. One week later, the company said they couldn’t help Stephen, but wished him “luck”. When Stephen asked for a refund for the $9,500 fee he paid via credit card, the company hung up on him.

Instead of paying big up-front fees to shady tax-relief firms, consumers who are having trouble paying taxes should contact the IRS or their state comptroller. The IRS’s Taxpayer Advocate Service is an independent office within the IRS that provides free help to consumers having trouble paying their federal taxes. Consumer experiencing difficulties paying state taxes should contact the National Association of State Auditors, Comptrollers and Treasurers (NASAA) to get guidance on how to get help from state tax authorities.

Tax preparer fraud

Millions of consumers turn to tax-preparation firms or personal accountants to help them file their taxes. While most of these companies provide a valuable and completely legitimate service, there are countless instances where fly-by-night tax-preparation outfits come in to town, hang out a shingle, and then disappear after charging outrageous fees for tax-preparation services.

According to the IRS, consumers should beware of tax preparation firms that claim they can obtain larger refunds than other preparers, who base their fee on a percentage of the amount of the refund, who ask consumers to sign a blank tax form, who refuse to provide a preparer tax identification number or provide copies of your tax returns.

Unfortunately, many tax-preparation scammers target certain neighborhoods, often with high concentrations of immigrants or low-income consumers.The 70 percent of consumers with adjusted gross incomes of $57,000 or less can take advantage of the IRS’s FreeFile service, which provides access to free tax preparation and filing services.

Other tax scams

The variety of tax scams is limited only by the imaginations of unscrupulous scam artists.

Misdirected refunds

“Pattie” reported to NCL that she responded to a tax refund company’s advertisement – receive a tax refund directly deposited into one’s bank account within 8-11 days for only $99! She provided her routing number when filling out the paperwork. The company told her that there was a delay but that her direct deposit was being processed. After following up with her bank, Pattie learned that the company had rerouted her deposit into their account – leaving her without a refund and helpless.

Phishing

Tax scams are often variations on phishing schemes: the victim receives a phone call from an “IRS employee” offering a tax refund – however, they need the taxpayer’s checking account number, he or she is told, in order to deposit the money. Alternately, the victim gets an email claiming to be from the IRS – often with a realistic-looking sender address – stating that the consumer is due a refund and needs to click on a link and enter their personal financial information in order to have it processed.

Fake stimulus money

Con artists contact their victims claiming to be government representatives calling to initiate payment transfer of impending government tax “rebates,” often related to the 2009 government stimulus bill. Victims are urged to provide bank or credit card account numbers to receive these rebates, sensitive information which is then misused to drain these accounts.

Consumers should remember: the IRS does not use e-mail to initiate contact with taxpayers about issues related to their accounts. If a taxpayer has any doubt whether a contact from the IRS is authentic, the taxpayer should call the IRS customer service toll-free number (1-800-829-1040) to confirm it.

LifeSmarts: Teens’ Consumer Rights Information Destination – National Consumers League

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By John Breyault, Vice President of Public Policy, Telecommunications and Fraud

As National Consumer Protection Week 2011 draws to a close, it is appropriate to reflect on why this week is set aside to celebrate consumer protection.  NCL has been at the center of the consumer movement since its inception over a century ago.  A short an incomplete list of consumer protection triumphs in that time would include the Pure Food and Drug Act of 1906 which created the FDA, the Federal Trade Commission Act of 1914, the Fair Credit Reporting Act of 1970, the Consumer Product Safety Act of 1972, the Patient Protection and Affordable Care Act of 2010 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

What do all of these disparate pieces of legislation share in common?  They all sought to make the market safer and fairer for consumers.  They all recognized that absent safeguards and prudent regulations, consumers stood little chance against the vastly greater resources of industry.  During National Consumer Protection Week, we encourage consumers to take full advantage of the consumer rights gained over this century of advocacy to make better-informed marketplace decisions.

It is the desire to pass on these rights and responsibilities to the next generation that motivates NCL’s LifeSmarts program.  LifeSmarts is about more than just teens memorizing esoteric consumer trivia.  It’s about giving young people on the cusp of adulthood the knowledge they will need to enter life as empowered consumers.  Every time that a LifeSmarts alumna uses the skills she gained from LifeSmarts to get a better deal on a mortgage, steer clear of an Internet scam or spot a safety hazard in her home, consumers win just a little bit more.

It is with this purpose in mind that we encourage LifeSmarts competitors to learn and understand their rights as American consumers.  In other countries, citizens must too often accept the lot that their markets deal to them.  In America, we are protected by a web of consumer protections that ensure that the water we drink is clean, that banks can’t cheat us, and that the products we buy for our children aren’t accidents waiting to happen.  When these rights are violated, LifeSmarts teens know that they can speak up and seek redress.  In an increasingly interconnected and global marketplace, having the knowledge and the tools to use it has never been more important.

National Consumer Protection Week ends March 12, but the lessons and responsibilities of NCPW and of LifeSmarts will last a lifetime.

LifeSmarts: teens’ technology education destination – National Consumers League

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By John Breyault, Vice President of Public Policy, Telecommunications and Fraud

The thought of teaching a modern teenager about technology may seem counterproductive to many people. Indeed, it is teens who seem to be the ones on the cutting edge of technology. The vast majority of teens not only use the latest social networking sites like Facebook, but they are also often inseparable from their cell phones.

Unfortunately, expertise about how to use these technologies doesn’t always equate to knowledge of how to do so safely.  Today, it is more important than ever for teens to know how to use technology wisely. For example, snooping on unsecure wifi connections (such as those found in many coffee shops) is increasingly easy for unscrupulous scam artists. Privacy, which for many Facebook-obsessed teens may seem to be an afterthought, could actually be critically important in college admissions and getting jobs later in life.  Online scholarship and grant scams is also an area where NCL has noticed an uptick as well.

Fortunately, there are tools and smart practices that teens can use to avoid some of the most common technology pitfalls. It is these good technology habits that LifeSmarts’ technology curriculum seeks to promote. LifeSmarts team members learn, for example, the importance of taking advantage of their privacy settings on Facebook to make sure third parties can’t get access to sensitive personal information. Knowing how to differentiate a secure Web site from an insecure one can save teens from having nasty malware surreptitiously installed on their computers. Understanding the importance of using strong passwords (as opposed to easy-to-guess common words) can save teens from seeing their laptops become part of a botnet or worse.

During National Consumer Protection Week, we urge teens and their parents to consider the important value of this knowledge in today’s 24/7 digitally-connected world. By becoming savvy technology consumers, LifeSmarts participants become better prepared to choose their own cell phone plans, get broadband service at their first apartments, and pass on lessons learned in LifeSmarts to friends, family members and, eventually, their own children.

For more information on the LifeSmarts technology curriculum, visit LifeSmarts.org. To learn more about National Consumer Protections Week, visit www.ncpw.gov.

LifeSmarts: Empowering Teens to Be “Green” Consumers – National Consumers League

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By John Breyault, Vice President of Public Policy, Telecommunications and Fraud

It seems not a day goes by without a warning about threats faced by our environment. From toxic runoff to climate change to endangered species, the planet has never been in greater need of protection and care. Fortunately, there are small things that individual consumers can do to help protect the planet. From recycling trash, to using less energy-intensive forms of transportation, to just turning off the lights when leaving a room, small actions can add up in a big way.

It is these individual contributions to “green” living that LifeSmarts seeks to teach teen participants. LifeSmarts competitors learn how to lessen their impact on the environment in the numerous hours spent studying for the online and live competitions that form the heart of the LifeSmarts program.

The theme of this year’s National Consumer Protection Week is “NCPW.gov: Your Information Destination.” Fortunately for our LifeSmarts teams, information on how to live greener is only a mouse click away. The LifeSmarts program features numerous study guides to help teens get smart about being more environmentally conscious consumers.

As the teens get closer to their competition dates, they learn about the meanings of terms like “carbon footprint,” “greenwashing,” and “smart meters.” Getting educated about these topics not only helps teams do better in the competitions, but also provides teens a solid grounding in living responsibly.

For more information on LifeSmarts, visit LifeSmarts.org.  For more information on National Consumer Protection Week, visit ncpw.gov.