‘Flu Facts for Expectant Moms’ gives straight talk on the H1N1 vaccine – National Consumers League

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December 8, 2009

Consumer advocate and Ob/Gyn team up to address questions and concerns

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

Washington, DC–Citing the special vulnerability of pregnant women to the H1N1 virus and persistent confusion over the risks, benefits, and availability of vaccines, a leading consumer advocate and a board-certified Obstetrician/Gynecologist have teamed up to get expectant moms quality information through a new digital Q&A called “Flu facts for expectant moms.”

“Our message to expectant moms is: Do what is best for you and your baby and get vaccinated as soon as possible,” said Sally Greenberg, executive director of the National Consumers League, a nonprofit advocacy group with strong expertise in medication information. “Perhaps more than any other group, pregnant women are desperate for practical and trustworthy information on how to protect themselves and their babies from what can be a devastating illness in high-risk populations.”

Recent reports show that up to 30 percent of pregnant women who are infected with the H1N1 flu virus require hospitalization, and of the H1N1-related deaths reported in the United States, 6 percent of them – a disproportionately high percentage – were pregnant women.

Annelise Swigert, M.D., a practicing Ob/Gyn and Fellow of the American College of Obstetricians and Gynecologists, answers questions posed by Greenberg in the digital Q&A’s, available at NCL’s Web site, www.nclnet.org. “Pregnant women are already highly concerned about their health, and when you introduce something as potentially frightening as a widespread flu outbreak—coupled with a limited supply of vaccine—it is easy to understand the heightened anxiety,” Swigert said. “In this situation, facts can often be the best prescription, and the fact is both expectant moms and new moms are doing the right thing by getting vaccinated.”

In the Q&A, Greenberg and Swigert tackle the issue of vaccine supply. Vaccine makers have produced the H1N1 vaccine in about half the time typically required for the seasonal flu vaccine and without using adjuvants, additives commonly used in Europe but not yet approved in the US to increase the vaccine supply. “Health officials believe enough H1N1 vaccine will be available by the end of the year to vaccinate all those who wish to receive it,” said Swigert. “For the most part, pregnant women and members of other high-risk groups have been able to get vaccinated, but those who haven’t yet shouldn’t hesitate to use their status to help them get priority.”

On the vexing challenge of getting vaccinated when supplies are limited, Swigert recommended that pregnant women start by contacting their Ob/Gyn. “Many obstetrical clinics have the vaccine available for their patients,” she said. “Your clinic can also help you find other resources for the vaccine if they don’t have it.” Pregnant women should also get the regular flu vaccine.

The Q&A will be distributed nationally to consumer groups, women’s and health organizations, and the news media. It is available directly to consumers on NCL’s Web site at nclnet.org.

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Together We Can All Fight the Flu – National Consumers League

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The federal government has unveiled a new advertising campaign to encourage consumers to get vaccinated against the H1N1 virus. HHS Secretary Kathleen Sebelius announced yesterday that the U.S. Department of Health and Human Services (HHS) is joining with the Ad Council to launch a new nationwide public service advertising (PSA) campaign called “Together We Can All Fight the Flu” to encourage Americans to get vaccinated against the 2009 H1N1 flu virus.

Recent reports show that up to 30 percent of pregnant women who are infected with the H1N1 flu virus require hospitalization, and of the H1N1-related deaths reported in the United States, 6 percent of them – a disproportionately high percentage – were pregnant women.

“Getting vaccinated is the best way to protect yourself and your family against the H1N1 flu virus,” said Secretary Sebelius. “Fighting the flu is a shared responsibility, and it is up to all of us to help prevent the spread of the flu in your community. Right now, Americans have a window of opportunity to get vaccinated. These new PSAs will encourage pregnant women, children, young adults, and other priority groups to protect themselves by getting the H1N1 vaccine.”

To help spread the word, NCL’s Executive Director Sally Greenberg recently sat down with Dr. Annelise Swigert, M.D., a practicing Ob/Gyn and Fellow of the American College of Obstetricians and Gynecologists,for a digital Q&A about the H1N1 virus and vaccine for expectant mothers.

“Our message to expectant moms is: Do what is best for you and your baby and get vaccinated as soon as possible,” said Greenberg. “Perhaps more than any other group, pregnant women are desperate for practical and trustworthy information on how to protect themselves and their babies from what can be a devastating illness in high-risk populations.”

To read Sally Greenberg’s full conversation with Dr. Swigert, visit www.nclnet.org.

Prepaid Calling Cards Under Scrutiny – National Consumers League

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Earlier this week, NCL’s Executive Director Sally Greenberg testified before the United States House of Representatives Subcommittee on Commerce, Trade, and Consumer Protection of the Committee on Energy and Commerce at a hearing on the Calling Card Consumer Protection Act (H.R. 3993), where she discussed the need for greater consumer protections in the purchase and use of prepaid calling cards. When Sally last appeared before the committee to discuss the issue, she equated the prepaid calling card marketplace with the “Wild West,” where unwary consumers too often fall victim to unscrupulous sellers and merchants. On Thursday, a year later, she said she is “sad to say that the situation for consumer remains more ‘Gunsmoke’ than ‘Little House on the Prairie.’”

Read Sally’s full testimony *here.

 

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

NCL ED testifies before Congress on ‘wild west’ prepaid calling card industry – National Consumers League

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December 3, 2009

Testimony of Sally Greenberg, Executive Director of the National Consumers League before the United States House of Representatives Subcommittee on Commerce, Trade, and Consumer Protection of the Committee on Energy and Commerce Hearing on Calling Card Consumer Protection Act (H.R. 3993)

Read the full testimony (.pdf)

Good morning, Mr. Chairman. My name is Sally Greenberg and I am Executive Director of the National Consumers League. I appreciate this opportunity to appear before the House Committee on Energy and Commerce to again discuss the need for greater consumer protections in the purchase and use of prepaid calling cards. When we last appeared before this committee to discuss the issue, we equated the prepaid calling card marketplace with the “Wild West,” where unwary consumers too often fall victim to unscrupulous sellers and merchants. A little over one year later, we are sad to say that the situation for consumer remains more “Gunsmoke” than “Little House on the Prairie.”

The National Consumers League, whose founding in 1899 makes us the oldest consumer organization in the United States, has a longstanding interest in protecting consumers from fraudulent practices and is the only consumer group that operates a national fraud center. (NCL’s Fraud Center is described at www.fraud.org).

I want to applaud members of this Committee for the scrutiny and attention you have given to the issue of prepaid calling cards and commend Congressman Engel for introducing H.R. 3993 the “Calling Card Consumer Protection Act.” Consumers rely on members of this committee to defend consumer rights and protections and to look out for consumer interests. In my testimony, I will address some of the facts and figures describing the magnitude of the prepaid calling card industry and the large amounts of money involved. I will also discuss the fraud and deceptive practices associated with that industry and actions taken at the state and federal levels in response to fraud. I’ll discuss why NCL supports H.R. 3993, and I’ll make some policy  recommendations.

Public interest groups call on Justice Department to block Ticketmaster/LiveNation/Comcast merger – National Consumers League

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December 2, 2009

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

Washington, D.C.- Five of the nation’s most prominent public interest groups, including the National Consumers League (NCL), the American Antitrust Institute, the Consumer Federation of America, Consumer Action, and Knowledge Ecology International today called on the Department of Justice (DOJ) to block the proposed merger by entertainment giants Ticketmaster and Live Nation. DOJ is currently reviewing the merger and is expected to make a decision in the next month.

“This merger would be a disaster for consumers. Nothing short of blocking this takeover of the ticket market by two industry behemoths will be acceptable,” said NCL Executive Director Sally Greenberg. “Spinning off a small part of Ticketmaster is no answer. Suggestions that Comcast — a company that is a master of unnecessary and exorbitant charges – entering into the merger negotiations will fix a bad deal are laughable and do nothing to ease the sting of a deal that is anti-competitive and anti-consumer on its face.”

“We all know the saying ‘if you can’t beat ‘em, join ‘em.’ That is exactly what Ticketmaster and Live Nation are attempting to do. Were this merger to be allowed to proceed, it would kill even the modicum of competition that currently exists between the two companies.” said Greenberg. “Time and time again Ticketmaster has shown it won’t accept any competitive players on its turf. By bringing in Comcast, Ticketmaster is simply pulling one more competitor off the field.”

As Bloomberg News recently reported, Comcast Spectacor owns multiple professional teams (including the Philadelphia Flyers and 76ers), controls the facilities where they play and their ticketing businesses. Comcast was also one of the investors in the company that sold the Paciolan ticketing software program to Ticketmaster in 2007.

“The new Department of Justice team is facing their first highly public antitrust test, one that consumers are watching with unusual intensity,” said Albert A. “Bert” Foer, President of the American Antitrust Institute. “The question is whether any conditional approval can benefit consumers as much as just saying ‘No.’ We are dubious that any divestitures will make this merger acceptable or will convince consumers that their interests are being protected.”

Ticketmaster first acquired the Paciolan ticketing software firm in 2007, prompting investigations from the Department of Justice. Prior to being bought out by Ticketmaster, Paciolan serviced a wide variety of ticketing clients, from universities to theaters to zoos, and is now poised to be returned to Comcast if reports of the divestiture requirements are true.

“This merger is an insult to both musicians and consumers,” said James Love, Director of Knowledge Ecology International. “It will lead to higher prices and less interesting music and art. The last thing we need is fewer corporate entities controlling more of our culture.”

“Consumers deserve a fair deal in the entertainment marketplace, not the fewer choices and higher prices that would result from this merger,” said Susan Grant, Director of Consumer Protection at Consumer Federation of America.

The groups went on to say that by including Comcast in the merger negotiations, Ticketmaster is simply transferring its power to a partner renowned for its market domination and exorbitant prices. “These companies are not popular with consumers,” said Linda Sherry, Director, National Priorities for Consumer Action. “Allowing this merger to proceed would make a bad market for consumers much, much worse. We strongly urge DOJ to block the merger without conditions.”

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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.

About the American Antitrust Institute

The American Antitrust Institute is an independent non-profit education, research and advocacy organization. Since its formation in 1998, the AAI’s mission has been to increase the role of competition, assure that competition works in the interests of consumers, and challenge abuses of concentrated economic power in the American and world economy. To learn more about the AAI, please visit www.antitrustinstitute.org.

About Consumer Action

Consumer Action, founded in 1971, is a national non-profit consumer education organization headquartered in San Francisco with offices in Los Angeles and Washington, DC.  For more information, please visit www.consumer-action.org.

About the Consumer Federation of America

The Consumer Federation of America is a non-profit association of more than 280 groups that, since 1968, has sought to advance the consumer interest through advocacy and education.  For more information, please visit www.consumerfed.org.

About Knowledge Ecology International

Knowledge Ecology International is a non-profit public interest organization, supporting work carried out earlier by the Consumer Project on Technology (CPTech), an organization that has participated in a number of merger reviews, including those involving legal publishing, retail distribution, and media concentration and telecommunications regulation. www.keionline.org.

Think you’re eating fruit? Think again – National Consumers League

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NCL is calling on the feds to investigate a new food ingredient that’s being sold to food manufacturers as a “sweetened dried cranberry” but actually contains more sugar than fruit and is made from cranberry skins – not whole cranberries.

NCL has alerted the Food and Drug Administration (FDA) to misleading labeling on a new food product, Ocean Spray’s “Choice.” Because this product is being sold as a “sweetened dried cranberry” for use in breakfast cereals, cereal bars, baked goods, and trail mixes, it has the potential to result in the mislabeling of many other food products on the market.  

“Sweetened dried cranberries” (SDCs) have become the common or usual name for a popular ingredient in a variety of foods, capitalizing on the healthy image of cranberries and cranberry juice. According to our information, SDCs are the fastest-growing segment of the cranberry market. SDCs traditionally consist of dried cranberries infused with sugar and coated with a small amount of sunflower oil. Facing growing demand for SDCs and a limited supply of fruit, Ocean Spray Cranberries Ingredient Technology Group recently introduced the “Choice” product as a less expensive alternative to SDCs. Ocean Spray represents “Choice” as an SDC that merely adds citric acid for flavor and elderberry juice concentrate for color. Marketing materials tout “Choice” as a low-cost SDC with the same taste, texture, appearance, and health benefits as other SDCs. For example, one Ocean Spray press release states that “Choice contains the health benefits associated with cranberry, with high levels of bacteria-repelling proanthocyanidins and antioxidants, as well as the anti-inflammatory flavonoid quercetin.”  

Laboratory analyses by Krueger Food Laboratories, commissioned by NCL, on November 4, 2009, found that “Choice” is really little more than cranberry skin infused with sugar syrup. The lab report, a copy of which is attached to this letter, describes analytical results for two separate production lots of “Choice” and one lot of Ocean Spray “Craisins,” the latter being Ocean Spray’s standard SDC product. The test results indicate that “Choice” consists mainly of sugar. The analysis found that the soluble solids in “Choice” “consist primarily of inverted beet sugar and citric acid” and are “less than those consistent with the use of whole cranberries.” The organic acids content (except for citric acid), potassium content, and anthocyanin content are significantly lower than those for SDCs. The cranberry content is so small that Ocean Spray must add color in the form of elderberry juice concentrate and acidity in the form of citric acid to simulate the color and acidity of cranberries. These findings are consistent with Ocean Spray claims that they use 50 percent fewer cranberries to make “Choice” than they do for their regular SDC product (See Ocean Spray press release entitled “ITG Provides Customers With Choice,” dated October 8, 2008.)

NCL believes that Ocean Spray’s “Choice” product is misbranded. First, given the small cranberry content and different nutrient profile of “Choice,” we do not believe that “sweetened dried cranberries” is an appropriate common or usual name for this product. Food and Drug Administration (FDA) regulations require that the common or usual name of a food “shall accurately identify or describe, in as simple and direct terms as possible, the basic nature of the food or its characterizing properties or ingredients… and may not be confusingly similar to the name of any other food that is not reasonably encompassed within the same name.” 21 C.F.R. § 102.5(a). A common or usual name may be established by common usage. 21 C.F.R. § 102.5(d). NCL believes that the term “sweetened dried cranberry” has become established by common usage as the name for a food product consisting mainly of cranberries infused with sugar and dried to a specific moisture content. Ocean Spray’s “Choice” product, because of its minimal cranberry content and use of other ingredients to simulate the flavor and color of cranberries, should not be named “sweetened dried cranberries.” 

We question whether the word “cranberries” should be allowed at all in the name of this product. When an ingredient is highlighted as a characterizing ingredient in a product name, FDA generally requires that the product contain a sufficient amount of that ingredient to characterize the food. For example, “honey bread” and “honey buns” must contain at least 8 percent honey. FDA, Compliance Policy Guides § 505.350. See also FDA Warning Letter CHI- 24-95 (“made with real fruit” claim is false and misleading “for a product made primarily with corn syrup and sucrose… and containing natural and artificial colors”). If the word “cranberries” is allowed to appear in the product name, NCL recommends that “Choice” be required to use a common or usual name that accurately describes the product and makes clear that the product does not contain whole berries (e.g., “sweetened dried cranberry skins with other flavors and colors” or “flavored cranberry skins”).   

Second, we understand that “Choice” labels include an ingredients declaration that lists cranberries as the predominant ingredient. According to our lab analyses, this is false and should be corrected to list sugar as the predominant ingredient. All food labels are required to list ingredients in descending order of predominance by weight. 21 C.F.R. 101.4(a)(1).  

Third, we question the validity of Ocean Spray labeling and advertising claims that “Choice” delivers the same health benefits as “sweetened dried cranberries” and other cranberry products, given the fact that most, if not all, of the cranberry content has been removed from “Choice.” Aside from lower levels of anthocyanins and potassium, our tests found that “Choice” contains only about one-fifth the amount of quinic acid as Ocean Spray’s Craisins. NCL requests that FDA investigate whether the claims of health benefits for “Choice” are false or misleading.  

NCL is also concerned about the many food products that are currently made with “Choice” or will be in the future. Muffins, cereals, and trail mixes should not be able to pass off flavored cranberry skins as if they were sweetened dried cranberries. To avoid misleading consumers, these products should be required to list “Choice” by its appropriate common or usual name in their ingredients declarations, and to declare the component ingredients in “Choice” in their order of predominance. FDA regulations require nothing less.   

NCL urges FDA to make clear to the food industry that it will not accept ersatz foods and ingredients being passed off to consumers as the real thing, especially where the food in question is marketed for its health benefits. We therefore request that FDA investigate Ocean Spray “Choice” and take appropriate enforcement action.

Credit Card Industry Profiting from Consumer Missteps – National Consumers League

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By Sally Greenberg, NCL Executive Director

Last week’s public television’s Frontline featured “The Card Game,” an investigation of the credit card industry and what’s ahead for consumers and banks.

Frontline’s conclusions aren’t good news for consumers: Despite passage of the May 2009 Credit Card Accountability Responsibility and Disclosure Act (“*The Credit CARD Act”), the days of tricks and traps by banks and other financial institutions are far from over.

I ran headlong into the world this past week when I intervened with Capital One Bank on behalf of a family friend who was panicking over a credit card problem. The friend — I’ll  call her Marti — earns just over minimum wage in each of the two jobs she holds. She called me because she knows I do consumer work for a living. Anyway, Marti couldn’t figure out why her credit card balance kept growing when she hadn’t used the card since last year. Marti is conscientious. Each month since April 2008 she has faithfully paid the minimum amount that appeared in the box on her bill — yet her balance grew and grew.

Frankly, I couldn’t figure out the bill either. If she pay the minimum balance, it may take a long time to pay off the balance, but the balance shouldn’t grow. Or so I thought. Welcome to the world of “over credit limit” charges. Marti’s card carried a $750 limit. In her last transaction — April 2008 — she had gone $8 and change over her credit limit. That $8 triggered a $39 “over-limit” charge, accompanied by a finance charges. So, while Marti paid the minimum each month, her balance remained above the “over credit limit” triggering multiple $39-charges since last April.

I only learned this by calling Capital One. Indeed, Marti’s balance had reached $1,080 without her charging a dime on the card since last year. That’s $330 purely in finance charges — set at 22% — and over-limit fees. After much cajoling, the supervisor with whom I spoke agreed to forgive three of the $39 charges. She said she couldn’t do any more.

This story reinforced what the Frontline reporters found: that credit card companies trap consumers — particularly low income consumers — in a never-ending spiral of fees and charges that grow larger by the month. Even consumers like Marti, who pay something each month, find themselves sinking deeper and deeper into debt.

Marti is, I suppose, one of the lucky ones. She has someone to advocate for her. Still, there’s something I don’t understand: What happened to a bank earning profits the old-fashioned way, by making a reasonable profit by lending consumers money at reasonable interest charges. Say 6 or 7 percent?

But that’s not how banks make their money these days. And Capitol One’s practices aren’t unique. In 2007, the banking industry earned about $29 billion from overdraft fees, according to Celent, a consulting firm for the banking industry. That is more than the $28 billion consumers spent on major appliances and the $14 billion they spent on books.

If you think about it, banks today make much of their income from things their customers do wrong. Like unknowingly going over a credit limit, or being a few days late paying their bills. The new CARD bill will curb some of these practices, but undoubtedly the banks will find new tricks and traps. That doesn’t sound like a good customer relations strategy to me.

 

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

Teen death highlights danger of machinery work – National Consumers League

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A few days before Thanksgiving in a small Virginia town called Poquoson, Frank Gornik, 14, was removing storm debris for his uncle’s company. The boy, a freshman in high school, fed branches into a wood chipper. He used a shovel to help force the branches and that shovel was grabbed by the machine and—in an instant—swallowed the boy and killed him.

Each year, 35-40 teens die similarly unimaginable deaths in workplace accidents—tractor rollovers, work-related car accidents, drownings in grain silos. Here at the National Consumers League, we try to monitor these deaths to prevent them from occurring. A decade ago, the number of working teens who died on the job was about double what it is today. The Occupational Safety and Health Administration, the National Institute of Occupational Safety and Health, federal and state departments of labor, nonprofit organizations and employers worked together to help bring the number of deaths down, but we must keep working to reduce that number even further.

Sadly, although it was a freak accident, Gornik’s death was preventable. The boy was much too young to work with such deadly equipment. Over the years, state and federal officials have realized that teens lack the judgment and experience to operate some hazardous machinery and require workers to be 18 to use them (although some exemptions are made for agriculture). Because of their ability to inflict massive and instantaneous damage, wood chippers are among the proscribed machines. Under the Bush administration, the U.S. Department of Labor refused to enact NIOSH-recommended changes to the “hazardous orders” regulations that would have improved teen worker safety protections. It is our understanding that under Secretary of Labor Hilda Solis’ leadership, the department is working to update those regulations and close some current exemptions that allow teens to perform dangerous work.

Although Gornik had his share of sadness— according to local newspaper reports, he lost both parents in a two-year stretch between 2005 and 2007—he was remembered by many fellow students for his ready smile and helpfulness. He was a very popular student who played sports and made the honor roll, and the Poquoson community continues to grieve his loss.

It’s hard to make any sense of an unspeakable tragedy like this, but the lessons learned from the accident that took Frank Gornik’s life might prevent similar deaths. Each year, NCL publishes a report—“The Five Worst Teen Jobs”—about dangerous job for teens, hoping that parents, employers, and young workers will carefully consider which jobs they take and what tasks they perform at work. It’s vital that employers learn state and federal child labor and safety laws, and it’s vital that young workers think about their own safety and know that they are able to say “no” to any job task that is dangerous or against the law.

Cautious Consumers Prosper on Cyber Monday – National Consumers League

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

As Americans return to work after a long Thanksgiving holiday weekend, millions will log on to the Internet is search of deals to help fill the stockings of friends and family members.  “Cyber Monday” – the Monday after Thanksgiving – has become an annual tradition for online retailers eager to snap up sales.  A casual review of some of the more popular online stores will show a plethora of discounts, free shipping offers, and other come-ons to lure e-shoppers.

According to Information Systems Audit and Control Association, a non-profit IT professionals group, employees will spend 14.4 hours shopping from their desks this holiday season.  For both consumers and their employers, it’s important to follow some “rules of the road” when it comes to shopping online – on Cyber Monday or any other time.  That’s why NCL released ten tips to help consumers shop safely online this holiday season.

In addition to those ten tips, here are some extra precautions to keep in mind when shopping online:

  • Be doubly careful with using mobile phones for online shopping. A desktop computer’s browser may be more secure that a mobile phone’s browser.
  • Don’t use the same login/password combination for each online shopping site.  Many sites require users to create an account before products can be purchased. Don’t use the same login and password for each site.  This will prevent hackers who have compromised your information for one site from using the same information to make purchases at a different site.
  • Be wary of ads that appear on search engine results or in social networking sites.  There is no guarantee that you’ll be sent to the site you think you’re getting.  See www.stopscads.org for more information.
  • Even if you’re shopping online, keep in mind growing holiday debt. The Consumer Federation of America recently offered *some great tips for keeping holiday debt under control.  Not only is this good advice financially, but consumers in trouble because of debt are also more likely to fall victim to scammers offering a way out of debt.
  • If you’ve been scammed, report it. The only way that scam websites will be put out of commission is if consumers raise the alarm.  File complaints with your local *Better Business Bureau, the Federal Trade Commission, your state Attorney General’s office, or www.fraud.org.

 

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

Consumer advice: Don’t let scams ruin your Cyber Monday shopping experience – National Consumers League

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November 24, 2009

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

Washington, D.C.- As Americans return to the workplace next Monday after the long holiday weekend, many will spend a portion of their day surfing the Internet for deals from online retailers. Monday, November 30 is known as “Cyber Monday,” what the retail industry claims to be one of, if not the, busiest Internet shopping days of the year, and with more and more consumers opting to avoid the mall, e-shopping next week is expected to be higher than ever. According to the National Retail Federation, 53.5 percent of workers with Internet access, or 68.8 million people, will shop for holiday gifts from work this holiday season; three-fourths (73.8 percent) of young adults 18-24 with Internet access will shop at work, and men are more likely to shop from work than women (56.3 percent vs. 50.8 percent).

Whether consumers do their shopping online at the workplace or at home, advocates are reminding them to practice safe e-shopping habits in the coming weeks and year-round. “The Internet can make your shopping faster and easier, but there can also be pitfalls if you’re not careful,” said Sally Greenberg, executive director of the National Consumers League, which today released its top ten tips for avoiding cyber grinches and scams this holiday season. “There are ways to ensure you have a safe online shopping experience, so that gift-giving is a joyous occasion, not an opportunity for cyber thieves.”

  1. Don’t shop online on an unencrypted or open wireless network. An airport or coffee shop’s wireless network is not an appropriate place to conduct financial transactions. Entering personal financial information over an unsecured connection may leave your computer open the to hackers and thieves to capture your financial information. Home Wi-Fi networks can also be compromised, so consumers should find out how to secure their connections.
  1. Secure your computer before shopping online. Before connecting to the Internet or shopping online, take the following three core protections: 1) Install anti-virus and anti-spyware programs and keep them up to date; 2) Install a personal firewall; 3) Regularly update operating system and anti-virus programs to current protections.
  1. Know who you’re dealing with. Before shopping online with an unknown e-store, check out the seller and be sure to get the name and physical address of the vendor in case something goes wrong. If you’re buying gifts on an online auction site, check the track record of the seller before you bid.
  1. Pay the safest way – by credit card, especially when you’re purchasing something that will be delivered later. Under federal law you can dispute the charges if you don’t get what you were promised. You may also dispute unauthorized charges on your credit card. Many card issues have “zero liability” policies under which you pay nothing if someone steals your credit card number and uses it. Increasingly, debit cards are also offering good protections, so check with your bank to learn more about protections offered.
  1. Only shop on safe sites. When providing payment information, the Web site URL address should change from “http” to “https,” (or, less frequently, “shttp”) indicating that the purchase is encrypted or secured. Look for an icon on the browser (generally in the bottom right of the window), such as an image of a padlock closing, to indicate that the page is secure.
  1. Don’t fall for a phishing email or pop-up. Legitimate companies don’t send unsolicited email messages asking for your password, login name, or your financial information. But scammers do, and it’s called “phishing.” Crooks often send emails that look like they’re from legitimate companies – but direct you to click on a link, where they ask for your personal information. Delete these emails.
  1. Be careful when shopping for a gift in an online auction. Consumers sometimes turn to auctions for harder-to-find collectibles or expensive electronics. Understand how the auction works, and check out the seller’s reputation before you bid. Use safe ways to pay, like a credit card. If you use a 3rd party payment system, read the terms carefully to understand what protection, if any, it offers if you don’t receive what you were promised. Always ask about terms of delivery and return options. Be especially wary of auctions that ask for payment via wire transfer.
  1. Turn your computer off when you’re finished shopping. Many people leave their computers running 24/7, the dream scenario for scammers who want to install malicious software—“malware”—on your machine and then control it remotely to enable them to commit cyber crime. To be extra safe, switch off your computer when you are not using it.
  1. Don’t be tempted by offers of free money. Con artists take advantage of cash-strapped consumers during the holidays to offer personal loans or credit cards for a fee upfront. These scammers simply take the money and run. Beware of emails offering loans or credit, especially if you have credit problems.
  1. Visit www.fraud.org to learn more about protecting yourself from online scams year-round and to report suspicious sites, sellers, or scams. You don’t have to be a victim to report a scam, and your information will help law enforcement go after cyber grinches.

Above all, look into the business or individual with whom you are doing business before making the transaction. For more information on avoiding scams throughout the year, visit www.fraud.org.

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