NCL to FCC: Consumers’ data security is too important to wait – National Consumers League

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February 24, 2017

Contact: Cindy Hoang, NCL, cindyh@nclnet.org, (202) 207-2832

Washington, DC–The National Consumers League, America’s pioneering consumer and worker advocacy organization is profoundly disappointed in the decision by Federal Communications Commission Chairman Ajit Pai to suspend the implementation of critically-needed data security rules.

The following statement is attributable to John Breyault, NCL vice president of public policy, telecommunications and fraud:

“At a time when literally billions of consumers’ records — many containing sensitive personal information — are compromised on a seemingly daily basis, it is inconceivable that Chairman Pai would halt the implementation of the FCC’s data security rules at practically the last minute. That this action was taken as part of the ‘Friday news dump’ suggests that the new leadership at the FCC wanted to sweep this anti-consumer decision under the rug. All one need do is look at the staggering rates of identity theft linked to data breaches to understand the need for stronger data security protections. Last year, the FCC took the common-sense step of requiring Internet service providers — the gateways through which practically all consumer data flows — to abide by reasonable data security protections. Instead of allowing these much-needed protections to take effect, Chairman Pai has instead decided to leave consumers’ data at greater risk.”

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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.

Union membership hitting new low – National Consumers League

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SG_HEADSHOT.jpgThe sad news that union membership has hit the lowest levels on record in the U.S. means a further depression of wages and benefits. According to a report by the U.S. Labor Department (DOL), only 10.7 percent of workers were union members last year, down from 11 percent in 2015, and nearly 20 percent in the early 1980’s.

This is unfortunate because union members earn better wages and benefits than non-union members. According to the U.S. Bureau of Labor Statistics (BLS), on average, union workers’ wages are 27 percent higher than their nonunion counterparts.  

Furthermore, unionized workers are 60 percent more likely to have employer-provided pensions. More than 79 percent of union workers have jobs that provide health insurance benefits, but less than half of nonunion workers do. Unions help employers create a more stable, productive workforce—where workers have a say. There is no question that unions help bring workers out of poverty and into the middle class. In fact, in states where workers don’t have union rights, workers’ incomes are lower.

So why is unionization at such a low point? Some argue that is because manufacturing jobs that were typically unionized have been shipped overseas; that is undoubtedly a factor, but even when there are blue collar jobs, employers fight like the devil to keep unions out and often win through fear and anti-union propaganda. 

The recent International Association of Machinists and Aerospace Workers’ (IAM) efforts to unionize at Boeing in South Carolina is a case in point. In a vote last week, 74 percent chose not to unionize. Why? According to the Machinists, “North Charleston Boeing workers endured a multi-faceted anti-union campaign, which included captive-audience meetings and massive TV, radio and billboard ad buys.”

“Boeing management spent a lot of money to make sure power and profits remained concentrated at the very top. The company’s anti-union conduct reached new lows,” said IAM lead organizer Mike Evans. “The IAM remains committed to getting Boeing South Carolina workers the respect, wages and consistency they deserve.”

South Carolina is one of the most hostile states for unionizing workers. Indeed, Boeing was lured there on promises that there would be no support for unions from Governor Nikki Haley and other officials, not to mention the state’s Right to Work (for less) laws.

But as the BLS numbers show, unionized workers make more money, get better benefits, and are able to rise into the middle class because of it. It’s unlikely that President Donald Trump’s political appointees will be of any help, despite his broad support from union members. Certainly his failed DOL Secretary nominee, Andrew Pudzer could not have been more antagonist toward workers—fighting minimum wages, making misogynist comments about women, and saying he favored robots because they didn’t bring discrimination complaints. Alexander Acosta, the new Labor Secretary nominee, doesn’t seem too friendly to unions either based on his record with the National Labor Relations Board but AFL-CIO President Richard Trumka says to give him a chance. 

The huge profits companies like Boeing earn should be shared among those who do the day-to-day work. And workplaces with good labor management relations tend to thrive, as demonstrated by many European models. So the future doesn’t look terribly bright for maintaining even the current unionization numbers in the U.S. and workers pay every day for that in lower wages and opportunities.

 

 

 

 

Individual tax filings down in January; Consumers warned to beware of fraudsters taking advantage of processing delays – National Consumers League

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February 15, 2017

Contact: Cindy Hoang, NCL, cindyh@nclnet.org, (202) 207-2832

Washington, DC—Beginning this year, a new law required the IRS to delay issuing refunds for certain taxpayers claiming the Earned Income Tax Credit or the Additional Child Tax Credit. Starting tomorrow (February 15), the IRS will begin issuing refunds for those consumers impacted, but has warned consumers that they should not count on seeing their refund until the week of February 27.

This delay is believed to be responsible for a 78 percent drop in refund amounts compared to this time last year, leaving many asking: where’s my refund?

The following statement is attributable to John Breyault, Vice President Public Policy, Telecommunications, and Fraud at the National Consumers League.

“This year’s delay may be why the IRS is seeing a significant decrease in the number of people filing returns as compared to this point on the calendar in previous years. Though the IRS will begin issuing refunds for Earned Income Tax Credit and Additional Child Tax Credit recipients starting today, it is important that filers know that, due to processing times, taxpayers may not receive their refund for another two weeks. A tax refund can account for as much as 30 percent of working families’ annual incomes. Thus, any delay in getting a refund can be a significant source of stress and, potentially, an opportunity for fraudsters or others to take advantage of consumers’ short-term cash crunch. If you are worried about the status of your refund, the best way to check is by visiting irs.gov/refunds or by using the IRS2Go smartphone app. While this won’t speed up the arrival of a refund check, it can help consumers better plan for any cash shortfall a refund delay causes.”

Background

  • According to the IRS, there has been a 24 percent drop in tax returns filed compared to this time in 2016.
  • The official IRS2Go smartphone app is available in both English and Spanish on the Apple App Store, Google Play, and Amazon. https://www.irs.gov/uac/irs2goapp
  • The IRS offers several no-cost options for taxpayers to prepare and file their returns and keep 100 percent of their refund. Consumers comfortable using online services and who made $64,000 or less in 2016 can use the IRS’s Free File Program. Free File gives consumers free access to tax filing software from twelve leading tax preparation companies. For those who need more hands-on help and made $54,000 or less in 2016 there are free Volunteer Income Tax Assistance programs in their communities, which are staffed by IRS-certified volunteers.
  • The National Consumers League also released an infographic with tips to help consumers reduce their risk of tax identity fraud.

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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.

Find yourself asking, ‘Where’s my refund?’ – National Consumers League

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The law requiring the IRS to delay issuing refunds for certain taxpayers has caused a lot of uncertainty this tax season. In fact, it is believed that this delay, which impacts those claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), is partially responsible for up to a 78 percent drop in refunds compared to this time last year. This has left many wondering when they can expect their refund in their bank account.

The long wait is almost over. The IRS will begin issuing refunds to those impacted today. While this means that many consumers are one step closer to a refund, the National Consumer League is warning consumers to be prepared to wait an additional two weeks. Due to processing times and the Presidents’ Day holiday, consumers may not receive their refunds until the week of February 27.

For those worried about the status of their refund, we encourage the following:

Visit irs.gov/refunds or the official IRS2Go mobile app. These remain the best ways to check the status of a refund. The official IRS2Go smartphone app is available in both English and Spanish on the Apple App Store, Google Play, and Amazon. 

The IRS will update their projected deposit dates for early EITC and ACTC refund filers a few days after Feb 15. Until then, taxpayers will not see a refund date on irs.gov/refunds or the official IRS2Go mobile app. While checking online won’t speed up the arrival of a refund check, these resources can help consumers better plan for any cash shortfall a refund delay causes.

NCL’s Greenberg honored with Champions of Access award by Association for Accessible Medicines – National Consumers League

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February 14, 2017

Contact: Cindy Hoang, NCL, cindyh@nclnet.org, (202) 207-2832

Orlando, FL—At an annual meeting of the Association for Accessible Medicines (AAM) (previously the Generic Pharmaceutical Association) in Orlando today, the National Consumers League (NCL) was honored with the prestigious Champions of Access award. Accepting the award on behalf of NCL was Sally Greenberg, who has served as NCL Executive Director since 2007. The inaugural Champions of Access award was presented to Greenberg at #ACCESS17, before an audience of nearly 700 generic industry stakeholders, by AAM President and CEO Chip Davis.

“Partnerships with organizations such as NCL are critical to increasing access to safe, effective and more affordable generic and biosimilar medicines,” said Davis. “We are proud to honor those organizations and individuals who share this commitment and will continue working tirelessly so that more patients and consumers can access the medicine they need at a cost the system can bear. Congratulations to Sally and NCL, true ‘Champions of Access,’ for their work advocating for programs and policies that keep medicines within reach, improving lives and strengthening our economy in turn.”

Greenberg and NCL were recognized for their work advocating for programs and policies that promote low-cost, effective drugs that benefit patients as well as the American healthcare marketplace.

“On behalf of NCL, I am honored to accept this award from AAM,” said Greenberg. “NCL has a long track record of working to ensure access to safe and affordable foods and drugs—beginning with NCL’s work to pass the Food and Drugs Act in 1906, through our work today to ensure that patients have expanded and affordable access to the safe, effective treatments needed to maintain a healthy, positive quality of life.”

NCL has long advocated for availability of generic alternatives to brand name treatments as a cost-saver for Americans. In the United States, generic drugs represent 89 percent of all prescriptions dispensed, but account for only 27 percent of total drug costs. Over the decade from 2006-2015, the use of generic drugs saved the U.S. health care system approximately $1.46 trillion. In order to reduce out-of-pocket costs while receiving the same quality of care, NCL encourages consumers to ask their health care providers if there is a generic version of their prescription available.

For more information about NCL’s work in health, visit www.nclnet.org.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL statement on FCC decision to not enforce affordable prison phone rate price caps – National Consumers League

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February 13, 2017

Contact: Cindy Hoang, National Consumers League, (202) 207-2832, cindyh@nclnet.org

Washington, DC–The National Consumers League (NCL), the nation’s pioneering consumer and worker advocacy organization, today expressed disappointment in the Federal Communications Commission’s (FCC) decision to not defend its rule capping intrastate prison phone rates.

The following statement is attributable to Sally Greenberg, executive director of the National Consumers League:

“The National Consumers League is disappointed by FCC Chairman Ajit Pai’s decision to not defend the FCC’s rules implementing price caps for intrastate prison phone calls. Capping rates at reasonable levels is common sense as numerous studies have shown that providing prisoners access to family members and loved ones dramatically reduces recidivism. Unfortunately, at the exorbitant rates charged by most prison phone providers, keeping in touch with incarcerated loved ones is not an option for many working families. The predatory prison payphone marketplace has made a living off of charging the prison population and their families rates that far exceed those found in the general marketplace. This forces many low-income families to choose between talking to an incarcerated family member, or buying the medicine or food their family needs to survive. We call upon Chairman Pai to reconsider his decision not to defend permanent intrastate rate caps and empower families to stay connected.”

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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.

Is your Valentine true? Consumer org issuing warning about costly sweetheart swindles – National Consumers League

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February 10, 2017

Contact: NCL Communications, Cindy Hoang, cindyh@nclnet.org, (202) 207-2832

Washington, DC—Have you been chatting online with what seems to be the perfect sweetheart? Experts at Fraud.org, the National Consumers League’s flagship fraud prevention and education program, are warning consumers to be wary of the inauthentic online relationships that end up costing victims hundreds or even thousands of dollars. Falling in love with a con artist has consistently been ranked as one of the most expensive scams for victims who have reported their experiences to Fraud.org. In 2016, sweetheart swindles were the 9th-most reported form of fraud, and the most expensive for victims, with a median loss of $2,000.

“In a typical romance scam, victims are approached online, through a dating website, a social media platform such as Facebook, or another type of online forum. Scammers go to great lengths to cultivate romantic interest with their victims,” said John Breyault, NCL vice president of public policy, telecommunications and fraud. “They nurture the relationship, build trust, and then convince victims to send money, sometimes days or even months into the new ‘relationship.’”

Once a sense of trust is developed, the con artist asks for money to be sent to help them out of a dangerous or difficult situation. Scammers often run the same game on multiple victims at once, claiming that they need money to come visit their new friend-victim, or for medical bills, legal help, or some other unexpected emergency. If the victim agrees to pay, there are inevitably additional requests for money to cover other fictitious expenses until the victim comes to realize it is a scam and stops paying, or worse, runs out of money to give.

In a complaint received at Fraud.org last month, “Jennifer,” a 32-year-old woman from Wisconsin, reported losing $35,000 to a sweetheart scammer. Her story is similar to the typical romance swindle: Jennifer met a man named “Nick” on the dating website OKCupid. Nick claimed to be from Australia but living in Nebraska. Shortly into their online relationship, Nick had to go to Africa for a business trip. While he was there, Nick was robbed and needed $3,000-$4,000 to buy a plane ticket to return to the United States. Having developed romantic feelings for Nick, she obliged and sent the cash to help him. Following this, Nick told Jennifer he had a string of more unfortunate, and fake, events—getting arrested, needing a diplomatic passport, his mother was sick and dying, contemplating suicide, having a heart attack, and getting arrested again. Throughout all of this, Jennifer agreed to his requests for cash through credit card advances, iTunes gift cards, and even sending iPhones. In all, Jennifer is now in credit card debt for $31,000, not including all the cash she wired to her sweetheart.

“Stories like these are both heartbreaking and unfortunately typical of what we hear from victims,” said Breyault. “Millions of consumers meet friends and find romance online, but there are a determined group of criminals out there eager to relieve victims of their cash in the name of love. The best defense consumers have is to learn about the signs of a scam in order to spot them before it’s too late.”

Red flags that your relationship might be a costly set-up to a scam:

  • The “relationship” becomes romantic extremely quickly, with quick pronouncements of love or close friendship.
  • The person you’re communicating with makes excuses about not being able to speak by phone or meet in person.
  • Your suitor requests that you wire money or cash a check or money order on their behalf and send them the funds.

For more information on sweetheart swindles and other scams of the heart, visit Fraud.org.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL applauds Virginia Senate’s passage of the Ticket Resale Rights Act; Urges Gov. McAuliffe’s signature – National Consumers League

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February 8, 2017

Contact: Cindy Hoang, National Consumers League, (202) 207-2832, cindyh@nclnet.org

Washington, DC—The National Consumers League (NCL), the nation’s pioneering consumer advocacy group, applauds the Virginia Senate’s passage of S.B. 1425, the Ticket Resale Rights Act. The legislation, introduced by Senator Bill Stanley, prohibits excessive ticket licensing terms designed to reduce consumer choice and competition in the secondary ticket market. S.B. 1425 protects consumers’ fundamental rights to sell, give away, or donate a purchased ticket as they see fit. These are the same protections that consumers in Colorado and New York already enjoy. NCL urges Virginia Gov. McAuliffe to sign this legislation into law as soon as possible.  

The following statement is attributable to John Breyault, NCL vice president, public policy, telecommunications, and fraud:

“For too long, Virginians trying to buy tickets to in-demand live events have been competing in a rigged game against unscrupulous ticket brokers and primary ticketers who routinely hold back almost half of the tickets to popular events for connected insiders. Thanks to this pro-consumer legislation, consumers in Virginia will continue to have the option of buying, selling, or donating tickets in an open, competitive secondary market. When combined with the recently-enacted federal BOTS Act, the Virginia Ticket Resale Rights Act will ensure that ticket-buyers in the Commonwealth have access to a fairer, more consumer-friendly ticket market.”

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.

National Consumers League statement on Trump Administration assault of consumer financial protections – National Consumers League

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February 3, 2017

Contact: NCL Communications, Cindy Hoang, cindyh@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League (NCL) today issued the following statement in response to a directive from the Trump Administration to eliminate essential consumer protections and roll back Wall Street reforms. The following statement can be attributed to NCL’s Executive Director Sally Greenberg:

“Efforts by the Trump Administration to roll back regulations established by the Dodd-Frank Wall Street Reform and Consumer Protection Act ignores the hard lessons learned in the wake of the 2008 financial crisis. Without these important rules, millions of hard-working consumers and Main Street businesses will again be put at risk of paying the price of out-of-control Wall Street recklessness and greed. If the Trump Administration moves forward with these deregulatory policies, taxpayers will again be on the hook for billions of dollars in bailouts when the next financial crisis occurs.”

“The Department of Labor’s fiduciary rule is a common-sense consumer protection that requires the professionals who are in charge of consumers’ savings to act in the ‘best interests of their clients,’” said Greenberg. “Without this rule, retirement advisors will be free to ignore conflicts of interest and make decisions that benefit their firms’ bottom lines, not the financial security of millions of Americans.” 

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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.

President Trump’s Executive Order threatens rules that have saved millions of lives – National Consumers League

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The Trump Administration is waging war on regulations. The President signed an Executive Order this week demanding that with every new regulation, two must be rescinded. This is one of the most arbitrary and dangerous edicts ever sprung on Americans. We call on Mr. Trump to rethink this reckless Executive Order.

The premise of this edict is that regulations are red tape inflicted on well-intentioned corporations by bureaucrats who have nothing better to do than entangle business in useless red tape. That premise is false. Regulations ensure the safety and health of the public, including consumers of all ages. They provide critical protections for babies, toddlers, adult consumers, and workers; they protect our marshlands, wetlands, and wilderness; keep our air and water clean and healthy; ensure that we respect animals and wildlife, and so much more. To propose a blanket policy of eliminating two for every new one without knowing why is foolhardy.

A case in point: this week, three people testified at a hearing organized by Senators Richard Blumenthal (D-CT), Ed Markey (D-MA), and Bill Nelson, (D-FL), and moderated by Rachel Weintraub of the Consumer Federation of America. Relatives from two families who had lost a child and another with a near miss caused by dangerously designed products. Regulations are intended to address these gaps.

Think slats in cribs that were so wide that kids heads got caught and they strangled. Not anymore due to regulations.  Think regulations requiring child proof caps on bottles of bleach or medicine . Thousands of kids are alive today because of these regulations. The truth of the matter is–regulations save lives.

One of the witnesses at the hearing rescued his daughter from what could have been a fatal accident. Turns out, the company had already had 80+ incidents, but denied there was a problem when the Dad called to report it.  A mother told of her infant son’s death due to a supplemental mattress in a portable crib that suffocated him. The Grandfather of a girl strangled by a cord in a window blind – a hazard consumer advocates have been in trying to address for years – is one that has killed too many children. He talked about being pro-life, just like VP Mike Pence, but wondered protecting the kids already here isn’t getting the same attention.

Regulations don’t come out of left field. I’ve read and commented on scores of them. They are vitally important, developed in a thoughtful and deliberative manner under the Administrative Procedures Act; they require open comment periods and are frequently revised based on feedback from industry and consumers. Most require a cost-benefit analysis

The National Consumers League has a long record of advocating for consumer protections on products and in the workplace. Safe design of children’s toys and nursery items, such as cribs and high chairs, keep children and teens from working in the fields, where they are exposed to pesticides, heat, and tobacco poisoning. NCL supported regs to reduce worker exposure to coal or silica, which causes illness and sometimes death. We support the CPSC’s proposal for newly designed table saws that will prevent the 35,000 amputations each year from these devices. New technology can prevent nearly 100% of these excruciating injuries that cause lifelong pain and disability. Why wouldn’t we jump at this chance to have this groundbreaking injury prevention?

Let’s imagine a scenario in which we had no regulations to ensure our air quality. Would American cities become like those in India and China where citizens can’t go outside many days? Or imagine that we had no regulations on water quality. Our children might ingest high levels of lead or chemical runoff, leading to high incidences of cancer, which is exactly what happened to the residents of Woburn, MA because of industrial run off in their water. Rather than repealing these vital regulations, Americans should be grateful that we have a democratic process for keeping our families safe.

Below are examples of but a few regulations that save and protect consumers’ and workers’ lives:

Consumer regulations

  • The Refrigerator Safety Act (1956): This rule required all refrigerator doors to open from the inside to prevent children from being trapped and suffocating inside of them. The number of children suffocating in refrigerators has dwindled to almost none since refrigerators were redesigned under this rule.
  • Automatic garage door sensor (1990): A regulation that required garage door sensors preventing children from being entrapped. Since 1982, the Consumer Product Safety Commission (CPSC) had reports of 54 children between the ages of two and 14 who died after becoming entrapped under doors with automatic openers. There have been zero reports of children becoming entrapped under garage doors since this rule went into effect.
  • Trunk Release (2001): During July-August 1998, at least 11 American children died in three separate incidents of car trunk entrapment. Many individuals have died entrapped in trunks over the decades. Consumer advocates succeeded in getting florescent yellow trunk releases required in every vehicle model in the years after 1998. Since trunk releases have been installed, advocates haven’t found a single case of death in cars where those releases were put in. The cost of these trunk releases is de minimus.

Worker regulations

  • Hard hats: An OSHA regulation requires hard hats to be worn in workplaces where there is a potential for injury from falling objects, such as in construction zones or other hazardous locations. There have been many cases in sectors such as industrial, construction, and mining, where hard hats have prevented workers from suffering serious head injuries and sometimes-fatal accidents. According to the Bureau of Labor Statistics, in 2011 almost 393 fatal injuries were caused by exposure to falling or flying objects and equipment at workplaces. Hard hats generally cost less than $10 each.
  • Rule to reduce miners’ exposure to respirable coal dust (2014): According to data from the National Institute for Occupational Safety and Health (NIOSH), coal workers’ pneumoconiosis (also known as black lung) was a cause or contributing factor in the death of more than 76,000 miners since 1968. Caused by breathing unhealthy coal mine dust, this disease has cost more than $45 billion dollars in federal compensation benefits. After the 2014 rule’s enactment, we’ve seen the lowest fatal and injury rates in mining history.
  • OSHA rule requiring safety belts and harness working on stored materials in silos, grain bins, or other similar storage areas: Three workers (from Iowa, Michigan, and North Dakota) were killed in 2011 when they were engulfed (buried or trapped) by grain while on the job. In Texas, a fourth worker was also buried in grain, but was rescued and survived. Suffocation from engulfment is a leading cause of death in grain bins and the number of these deaths continues to rise. In fact, the number of deaths more than doubled between 2006 and 2010. These fatalities are preventable if employers follow work practices and provide training and equipment as required by OSHA’s Grain Handling Facilities standard, 29 CFR 1910.272.

Regulations save lives. Let us not throw the baby out with the bathwater. If there are unnecessary regulations, let the President and his cabinet secretaries tell us why and make their case. No one wants unnecessary red tape, but if this Executive Order is an excuse to repeal safety and health protections, that’s not okay, and all Americans – including the most vulnerable consumers – our children – will pay the price.