As Congress addresses egg recall, groups call on industry to phase out cages – National Consumers League

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September 22, 2010

Contact: 202-835-3323, media@nclnet.org

Washington,DC — Hours before a Congressional hearing on the largest egg recall in U.S. history, the National Consumers League, the nation’s oldest consumer organization, and The Humane Society of the United States, the nation’s largest animal protection organization, joined forces to call on the egg industry to phase out the cage confinement of laying hens in order to reduce food safety risks and animal cruelty. The half-billion egg recall is the latest in a series of reminders that how we treat animals can have significant food safety and public health implications.

“It is the very system of cramming birds into cages – in warehouses on operations that may confine more than a million animals – that exacerbates the spread of infectious diseases like Salmonella,” said HSUS president and CEO Wayne Pacelle. “The industry must phase out these hazardous and merciless cages.”

Even before the recall, the FDA estimated that 142,000 Americans are sickened by Salmonella-tainted eggs every year. The elderly, infants, pregnant women, and those with impaired immune are especially vulnerable to developing severe—even life-threatening—complications.

The egg industry has unfairly placed the blame on consumers, but given the potential for cross-contamination and the fact that many common egg cooking methods are insufficient to eliminate the threat, it is incumbent on industry to reduce Salmonella risk on the farm. An abundance of evidence suggests this can be accomplished by phasing out cage confinement, which carries greater risks due to the enormous flock sizes, the propensity for rodent and fly infestations, and an inability to adequately disinfect the cage equipment between flocks.

“Consumers don’t want to buy products from companies that abuse their workers, mistreat their animals, or pollute the environment, and they certainly don’t want to buy food that contains pathogens that could make them or their families sick.” said NCL Executive Director Sally Greenberg. “The link between caging of birds and increased Salmonella makes this animal protection issue a food safety one as well. This large-scale egg recall comes from a company that appears to routinely violate the rights of workers, engage in cruel treatment of animals, and dispose improperly of waste; it’s no surprise to us that this same company would produce goods that are harmful to consumers.”

Numerous public opinion polls show that most Americans oppose this extreme confinement. California and Michigan have passed laws phasing out cages, and California is phasing out sale of cage eggs. Many major retailers, including Burger King, Subway, Quiznos, IHOP and Denny’s, are already using cage-free eggs.

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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.

About The Humane Society of the United States

The Humane Society of the United States is the nation’s largest animal protection organization—backed by 11 million Americans, or one of every 28. For more than a half-century, The HSUS has been fighting for the protection of all animals through advocacy, education, and hands-on programs. Celebrating animals and confronting cruelty—on the web at humanesociety.org.

2010 Trumpeter Award recipients announced – National Consumers League

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The National Consumers League is pleased to announce that Surgeon General Vice Admiral Regina Benjamin, M.D., and “Compensation Czar” Kenneth Feinberg will receive this year’s Trumpeter Awards on Thursday, October 7 at 6:00 p.m. at the Capital Hilton in Washington, DC. Please join us as we honor these two distinguished advocates for their commitment to serving consumers nationwide. NCL will also honor Consumer Federation of America’s Jean Ann Fox, a lifelong consumer champion, with our Florence Kelley Consumer Leadership Award.

Support the Trumpeter Awards Dinner

NCL offers several giving levels, as well as individual tickets, for the Trumpeter Awards Dinner, which helps support NCL’s advocacy and education efforts year-round. To learn more about the benefits of each category, contact NCL’s Larry Bostian at (202) 207-2826.

  • Underwriter – $25,000

  • Consumers Circle – $15,000

  • Benefactor – $7,500

  • Patron – $5,000

  • Sponsor – $2,500

  • Friend – $1,500

  • Individual – $200

About the honorees

Kenneth Feinberg has been described as “America’s Solomon,” serving multiple Presidents and Congresses in taking on the very difficult task of distributing compensation funds to those who’ve lost loved ones or their livelihood. In trying times, from the September 11th Victim Compensation Fund to the tragic Virginia Tech shooting in 2007, where he administered the Hokie Spirit Memorial Fund for victims’ families, Feinberg has unfailingly gained the trust of the beneficiaries he has been called upon to serve. He has consistently demonstrated concern, patience, and a willingness to listen and learn from victims. Feinberg currently serves as the Special Master for TARP Executive Compensation and as administrator of the BP Deepwater Horizon Disaster Victim Compensation Unit.

As “America’s Doctor,” Vice Admiral Regina Benjamin, M.D., is the 18th Surgeon General of the United States, charged with the task of providing the public with the best scientific information available on how to improve their health. Benjamin oversees the operational command of 6,500 uniformed health officers who serve around the world to promote, protect and advance the health of the American people. Prior to becoming the surgeon general, Benjaminfounded and served as CEO of the Bayou La Batre Rural Health Clinic in Alabama. She served as former associate dean for rural health at the University of South Alabama’s College of Medicine and immediate past chair of the Federation of State Medical Boards of the United States. Dr. Benjamin received the 1998 Nelson Mandela Award from the Henry J. Kaiser Family Foundation for her work in the United States and abroad.

For additional information, or to learn about sponsorship opportunities, please contact NCL’s Larry Bostian at (202) 207-2826 or larryb@nclnet.org.

Community connections used to commit affinity fraud – National Consumers League

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

When consumers imagine a typical scam artist, a number of images may jump to mind. Nigerian princes, damsels-in-distress in Russia, and exiled dictator’s former wives’ son-in-law come to mind. What most consumers don’t immediately tend to think about is the man sitting in the pew next to them at church. They probably wouldn’t suspect their country club golf buddy. Or the neighbor who just hosted a block party. Or their tennis partner at the senior center.

Unfortunately for consumers, scam artists don’t adhere to any easy-to-distinguish profile. In fact, many scammers use the very same social connections they develop as part of a community to gain their victims’ trust. The central thread of these scams is that members of a particular community tend to trust other members of the community and thus don’t exercise the proper caution needed to spot and avoid a scam.

In recent years, enforcement agencies have investigated and prosecuted many of these scam artists. Unfortunately, by the time law enforcement catches up with the scam artists, there is often little money left to reimburse victims of these scams. Recent examples of Securities and Exchange Commission investigations of these scams include:

  • 190 victims of a Ponzi scheme targeting seniors members of Jehovah’s Witness congregations defrauded victims of more than $16 million.
  • $36 million in losses to a fraudulent investment scheme targeting members of a Korean-American community.
  • A Baptist minister running an investment scheme targeting African-American congregants defrauded victims of more than $3.5 million.

Consumers who are approached to commit funds to an investment opportunity should be sure to be wary of some of the classic signs of affinity fraud, including:

  • A refusal by investment operators to document promises in writing. Legitimate investment managers should be eager to provide documentation substantiating claims made in marketing materials or presentations.
  • Pressure to “buy now” to avoid a “can’t miss” opportunity. Fraudsters thrive on getting victims to suspend logical thought and surrender to emotion — particularly fear (of losing out on an opportunity).
  • An absence of credentials. Investment operators should be qualified to operate. Good places to check and see if someone is competent include FINRA’s BrokerCheck database, your local Better Business Bureau, and your state Attorney General.
  • Unusual similarities among investors. If an unusual number of the investors in a particular investment are from the same church, community group, or ethnic group, be sure to dig deeper into the fundamentals of the investment.

These indicators do not automatically mean that an investment opportunity is a scam. Instead, if a particular investment triggers one or more of the above red flags, consumers should be sure to investigate and make sure that the investment is actually legitimate and not a scam.

For additional information on affinity scams, be sure to check out the SEC’s Affinity Fraud Investor Alert which details recent scams and gives consumers a good resource to start their due diligence.

Statement on appointment of Elizabeth Warren as CFPB interim director – National Consumers League

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September 18, 2010

Contact: 202-835-3323, media@nclnet.org

Washington, DC—The National Consumers League applauds President Obama’s appointment of Elizabeth Warren as interim director of the Consumer Financial Protection Bureau (CFPB). The concept behind the CFPB was Warren’s. She is an outstanding consumer advocate who long ago recognized that consumers were being unfairly saddled with staggering fines and fees due to fine print in legal documents that few could understand. NCL supports Warren’s vow to do away with the “tricks and traps” in consumer contracts, to simplify these contracts, and to provide far greater transparency and protections for consumers.

American consumers are fortunate, indeed, to have someone of Elizabeth Warren’s stature, integrity, commitment and diplomatic skills at the helm of the CFPB. The National Consumers League is proud to join in support for this fine appointment from the Obama Administration.

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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.

Obama appointment of Warren welcome – National Consumers League

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By Sally Greenberg, NCL Executive Director
The National Consumers League issued a statement this weekend applauding President Obama’s appointment of Elizabeth Warren as interim director of the Consumer Financial Protection Bureau (CFPB). Warren’s name is all over this job; the concept behind the CFPB was Warren’s, and she’s been a vocal consumer advocate who long ago recognized that consumers were being unfairly saddled with staggering fines and fees due to fine print in legal documents that few could understand.

I remember hearing her speak at the Consumer Federation of America’s Financial Services conference two years ago, when she was advocating for the creation of a CFPB. Warren explained that just as there is a Consumer PRODUCT Safety Commission to protect against dangerous TVs or toasters, there ought to be a Consumer Financial Protection Agency to protect against dangerous financial products. Warren analogized further: just as consumers aren’t expected to look at the wiring diagram in the manual that comes with the TV or toaster to find the defect, nor should they be expected to read through 30+ pages of fine print to find the tricks and traps that await them when they sign credit card, mortgage, cell phone, or any other consumer contract. Her analogy was as compelling then as it is today, and Warren ultimately won the day with her arguments. Congress established the framework for the agency in the recently passed financial reform legislation, and Warren will be the first head, albeit an interim post for her.

New York Times consumer columnist Ron Lieber asked Warren what her priorities would be, and she thanked him for asking but said at this early stage, “I can’t say anything about anything.” So Lieber designed his own to-do list for Warren and I think it’s a good one.

  1. Student loan reporting to the student’s college or university.
  2. Requiring colleges to publish the rate of default disclosure on student loans, this is particularly needed for the many for-profit schools where students take out huge loans and end up with a degree that prove useless in finding a job and they default on their student loans but the for-profit schools keep the tuition money.
  3. Free unlimited access to credit scores.
  4. Requiring lenders, landlords, and employers to disclose which credit scores or reports they intend to check
  5. More 45-day warnings. Give consumers 45-day warnings before lowering their credit limit – right now, cards are required to warn before increasing your interest rate or annual fee or other charge under the new bill. Adding the warnings about lowering credit is something the new bureau could do.

I’m a big Elizabeth Warren fan – I sent her an email note over the summer as I was having dinner outside Boston with a group of women friends who had just unanimously agreed that the President should appoint her. She responded in kind that this was almost better than a presidential appointment. Warren may be blunt, but she’s also charming, and that will go a long way. American consumers are fortunate, indeed, to have someone of Elizabeth Warren’s stature, integrity, commitment and diplomatic skills at the helm of the CFPB.

LifeSmarts focus: what you can do to help the Earth – National Consumers League

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By Jacob Markey, LifeSmarts intern

Over the summer, many of you likely paid attention to the massive oil spill in the Gulf of Mexico, the worst offshore spill in American history. This has been tragic for so many reasons, starting with the loss of lives after the explosion on the oil rig and continuing with the devastating environmental impact along the Gulf coast. In addition, so many people along the Gulf coast now face the loss of jobs and their livelihood due to environmental destruction caused by the oil spill. Even before this tragic event, there has been a growing movement towards cleaner energy. Since the September LifeSmarts topic area focuses on the environment, a discussion about how you can help the Earth is timely.

Some of the big buzzwords you’ve been hearing include “going green” and “reducing your carbon footprint.” To “go green” means to take steps to reduce your environmental impact on the Earth; “reducing your carbon footprint” has a similar meaning. There are many different steps that people can take to go green, such as walking to school or work instead of driving your car, or donating used items you do not use anymore instead of simply throwing them away. You can even find out what your carbon footprint is.

Find other ways to pitch in and do your part:

  • Remember the 3 R’s: Reuse, Reduce, and Recycle. Don’t simply throw out that empty plastic container. Wash it out and find a way to reuse it. If you cannot, remember to place it in the recycling bin instead of the trash can. By reducing the amount of products and things you consume, you will waste less, and reduce your environmental footprint.
  • Find ways to conserve water. WaterUseItWisely has more than 100 ways to conserve water. Suggestions range from simple things like taking quicker showers and turning off the water while brushing your teeth, to more involved actions like saving rainwater to water your garden, and planting shrubs and groundcover that require less watering.

Some teens may be skeptical about whether one person can make a significant impact on the environment. And, true, there is only so much that one person can do. But teens can also encourage other family members to make positive changes to reduce the carbon footprint of the entire whole household. And, collectively, we can make a big difference. By doing even a small part, we can help ensure a cleaner and better Earth.

Feds fighting back against shocking teen smoking stats – National Consumers League

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By Rebecca Burkholder, NCL Vice President for Health Policy

Every day, nearly 4,000 kids under 18 try their first cigarette, and 1,000 kids become daily smokers. An estimated 20 percent of American high school students smoke cigarettes. As a parent of two teenagers, these statistics are shocking. What can be done to break the chain of addiction?

The FDA recently enacted new rules to prohibit the sale, distribution, marketing, and promotion of cigarettes and smokeless tobacco to youth. These tighter restrictions (enacted under the Tobacco Control Act of 2009) will hopefully help stem the tide of new smokers, and prevent cancer, heart disease, respiratory disease, and other health problems related to smoking.

The new rules work to reduce youth access to cigarettes by doing the following, among other things:

  • Prohibiting the sale of cigarettes or smokeless tobacco to persons younger than 18 (some states already have similar restrictions on age, but this is the first federal law on age)
  • Prohibiting the sale of single cigarettes or packages containing fewer than 20 cigarettes
  • Prohibiting the distribution of free samples of cigarettes
  • Prohibiting the sale of cigarettes and smokeless tobacco in vending machines, except in limited circumstances.
  • Prohibiting tobacco companies from sponsoring any athletic, musical, cultural or other social event
  • Prohibiting the sale or distribution of items, such as hats and tee shirts, with tobacco brands or logos.

Since there is a proven link between tobacco marketing (ads and other promotions) and teenage tobacco use, these prohibitions are critical to preventing kids from becoming addicted to tobacco. Support the retailers in your community who comply with the new requirements, and help promote the regulations in your community. You can even sign up for a mobile text messaging program to help give FDA feedback. And, if you see the new tobacco rules are not being followed please contact FDA by calling 1-877-CTP-1371. The new regulations will help ensure that neither rock bands nor t-shirts can promote cigarette brands, and that is something this parent is glad to hear!

LifeSmarts program launches new year of competition, curriculum – National Consumers League

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September 13, 2010

Contact: 202-835-3323, media@nclnet.org

Washington, DC—The 2010-2011 LifeSmarts season is officially underway this week, with a new competition year going live at the program’s online home, www.lifesmarts.org, along with a variety of new resources for adult and youth participants. LifeSmarts is an educational competition run by the National Consumers League that tests middle school and high school students nationwide on real-life consumer issues through online quizzes and live contests. It culminates in the annual national LifeSmarts championship, where winning teams and individuals are awarded academic scholarships and prizes.

“We’re thrilled to be launching the 17th year of LifeSmarts,” said Program Director Lisa Hertzberg. “LifeSmarts delivers real-world knowledge to students and allows them to shine in competitions where they demonstrate all that they have learned,” said Hertzberg. “It also provides thousands of teachers across the country access to much-needed consumer curriculum, which they unfortunately often aren’t getting elsewhere.”

Over the years, LifeSmarts has steadily grown in numbers of student and adult participants, state partnerships, and corporate sponsorships. In the most recent season, an estimated 100,000 students and teachers across the country answered more than 3.5 million LifeSmarts questions.

“As the consumer marketplace has become more challenging to navigate, LifeSmarts content is keeping up, preparing our teens and tweens to become the next generation of smart consumers and workers,” Hertzberg said.

LifeSmarts provides participants with practical advice and information on consumer issues ranging from personal finance and health and safety to the environment, technology, and consumer rights and responsibilities. Starting online each fall, the competition progresses to live state play-offs, and then builds to a high-spirited National Championship, which will be held in 2011 in Los Angeles, California. At last year’s national competition held in Miami Beach, Florida, students on the state champion team from Frederick, Maryland were crowned the 2010 national champs.

NCL partners with coordinators in more than 30 states, including Better Business Bureaus, credit unions, state attorneys general and consumer protection agencies, State FCCLA organizations, Jump$tart Coalitions, and others, to staff and promote the program. Interested students and adults can visit the LifeSmarts Web site to connect with the program in their state.

“The National Consumers League’s mission is to inspire confidence and safety in the marketplace,” said Sally Greenberg, NCL Executive Director. “The LifeSmarts program, our consumer education initiative for youth, fosters students’ understanding of consumer issues and provides them with real-world knowledge they will need to take charge of their lives.”

New this fall at www.lifesmarts.org are dozens of up-to-the-minute teaching resources for coaches, including innovative lessons housed within the new LifeSmarts U, curriculum divided into a campus of major topic areas. Major LifeSmarts contributors include Experian, Western Union, American Express, American Century Investments Foundation, Bridgestone Retail Operations, LLC, McNeil Consumer Healthcare, Toyota Financial Services, TracFone Wireless, Inc., and others. To see a full list of current LifeSmarts contributors, visit www.lifesmarts.org.

To test your LifeSmarts, take a sample quiz at https://start.lifesmarts.org/. From there, click on “Daily Quiz” to get started.

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About the National Consumers League and LifeSmarts

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.

LifeSmarts is a program of the National Consumers League. State coordinators run the programs on a volunteer basis. For more information, visit: www.lifesmarts.org, email lifesmarts@nclnet.org , or call the National Consumers League’s communications department at 202-835-3323.

LifeSmarts 2010-2011 season live today – National Consumers League

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By Brandi Williams, LifeSmarts Program Assistant

The LifeSmarts program year and online competition goes live today, Monday, September 13, 2010! This is the 17th year of LifeSmarts, and NCL is excited to continue bringing this free program to American youth in 6th-12th grade. Over the past year our team has worked diligently to expand the program by:

  • Launching LifeSmarts U, our virtual online classroom, which features complete self-guided lesson plans and activities for educators and students.
  • Enhancing the National Championship format by giving all state champion teams the chance to compete eight times, and raising the bar by creating a more academically rigorous competition;
  • Increasingly using interactive social networking tools like our pages on Facebook, Twitter and the LifeSmarts blog;
  • Upgrading the Web site and other behind-the-scenes tools to better support our dedicated state coordinators and coaches.

To make LifeSmarts and its consumer education and personal financial literacy content even more accessible, watch for these new features to come online in the next few weeks and months;

  • New Fraud and Health lessons in LifeSmarts U;
  • Program expansion projects in California and the District of Columbia;
  • Development of LifeSmarts’ ongoing partnership with Family, Career and Community Leaders of America and a spot in the 2011 National Championship reserved for the top FCCLA team in the country;
  • New Web tools for state coordinators and coaches;
  • The October 1, 2010, launch of TeamSmarts, a new online team competition. TeamSmarts is a 100-question quiz that focuses on one rotating LifeSmarts topic each month, with a special 200-question assessment covering all topics in February. Teams will work together to complete the quiz and see where they rank against other teams throughout the country. Monthly prizes will be awarded to the top LifeSmarts and FCCLA teams. More information about prizes will be available soon, so be sure to check out the LifeSmarts Newsroom for details!

After an amazing and exciting 2010 National Championship in Miami Beach, FL, the LifeSmarts team buckled down to prepare for the coming year. With the support of industry volunteers, NCL staff, interns, and state coordinators, we’ve written tons of new questions for 2011’s state and national competitions! And with help from our 2010 Summer Intern Jacob Markey, a Wisconsin LifeSmarts alum, we were able to refresh and expand our Web content. You will also see Jacob’s posts here on the Savvy Consumer Blog over the coming year.

Here’s to our best program year yet!

Study concluding Toyota drivers at fault – not so fast, advocates say – National Consumers League

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By Sally Greenberg, NCL Executive Director

A Washington Post editorial recently endorsed a government study concluding that sudden acceleration in Toyota vehicles were largely the fault of drivers and not a defect in the cars themselves. The Post cited findings from the National Highway Traffic Safety Administration (NHTSA), which tested 58 data recorders – in 35 of which, NHTSA said, the brake pedal was not depressed at the time of the crash. In other words, the problem is with the drivers.

But there are skeptics about NHTSA’s findings. One auto safety expert, Sean Kane, wrote on his Web site, Toyota Dealers to Customers: It’s Not Me, It’s You:

“Toyota has never had any good choices in extricating itself from the Sudden Unintended Acceleration problem it has been in for a year and counting. (Except admit the problem, work diligently to resolve it, take your lumps and move on.) But as many a public relations expert has opined already, they have won themselves a place in the pantheon of business school case studies in the “What-Not-to-Do” category.”

“I just don’t think that sudden acceleration can be explained by floor mats, driver error, or sticky pedals.” Kane said recently, “We’ve heard from consumers who reported …. that long before the issue became a daily news staple, when they took their vehicle in for servicing after an SUA event, mechanics made remarks along the lines of: we’re seeing a lot of this. We’ve heard from consumers who’ve reported that the techs at the dealership observed the phenomenon themselves, or found fault codes, but told the customer it was the floor mat.”

I’m partial to Kane’s skepticism. In my decade handling auto safety issues in Washington, DC for Consumers Union, publisher of Consumer Reports, we found that government analyses too often discredited consumers’ first-hand experiences. Consumers would provide dramatic accounts of cars breaking down, catching fire spontaneously, or careening out of control, but rarely could government analyses find the problem. That is why I’m wary of this recent NHTSA analysis and sympathetic to the hundreds of consumers who have described terrifying incidents of sudden acceleration. I just don’t think they all could be wrong.