FTC announces winners for Robocall Challenge – National Consumers League

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By Sandra Latouff, NCL Fraud and Policy Intern

Last week, the FTC announced the winners of the Robocall Challenge. The winners, Serdar Danis and Aaron Foss will each be receiving $25,000 and a trip to Washington, DC for an opportunity to present their innovations. The Challenge asked innovators to create solutions that will block illegal robocalls for both landlines and mobile phones. A robocall is a term for a phone call that uses a computerized auto dialer to deliver a pre-recorded message.

In 2012, the FTC received about 200,000 complaints per month from consumers about robocalls! In an effort to fend off robocalls, some consumers have turned to the FTC’s Do Not Call Registry. Currently, 220 million consumers have registered their numbers on the Registry, but even with the Registry consumers nationwide are still being pestered by robocalls. In an effort to help the public fight against the creative methods robocalls are reaching consumers, the FTC created the Robocall Challenge to gather creative and efficient ideas from participants that could be successful. The hope of the FTC is that by hosting the Robocall Challenge a winning idea will catch the attention of private companies and eventually find its way to the marketplace for consumer protection.

Danis’s proposal, titled “Robocall Filtering System and Device with Autonomous Blacklisting, Whitelisting, GrayListing and Caller ID Spoof Detection”, would analyze and block robocalls using software that could be implemented as a mobile app, an electronic device in a user’s home, or a feature of a provider’s telephone service. Foss’s proposal, called Nomorobo, is a cloud-based solution that would use “simultaneous ringing,” which allows incoming calls to be routed to a second telephone line. In the Nomorobo solution, this second line would identify and hang up on illegal robocalls before they could ring through to the user. A third proposal from Google engineers Daniel Klein and Dean Jackson won the Technology Achievement Award. Klen and Jackson’s solution would involve using automated algorithms that identify “spam” callers.

As a result of the Robocall Challenge, the FTC created a video compiling submissions that focused on what consumers are doing right now to reduce illegal robocalls. Here are some of the tips:

  1. Ask you carrier what services they provide. Some service providers allow their customers to block off certain phone numbers. There may or may not be a charge for this service. Consumers may also be able to use VoIP hardware that allows them to tag any incoming number as unwanted which then plays a disconnected tone to the caller. After this, there is usually no second call.
  2. Check out devices for your landline. Search Internet shopping sites for “call blocker.” One consumer said that she uses a special phone that causes robocaller software to drop her number from their call list, which reduced and eventually stopped the number of calls she received.
  3. Experiment with “special information tones.” Some consumers placed the three note “non-working number” ringtone at the beginning of their voicemail or answering machine message which resulted in fewer robocalls.
  4. Investigate apps for your smart phone. Consumers are paying for apps that block robocalls. There are some free apps that, based on reviews, perform decently as well.
  5. Use a “virtual phone line” with call screening options. One consumer obtained a virtual phone line that forwarded the calls from that line to his actual phone. He gives his virtual number to everyone and keeps his other phone number to himself.

Consumers should also be sure to check the Terms of Service for any new program or offer when applying. An agreement to receive phone calls (i.e. robocalls) may be buried deep within the fine print.

If you have any tips or suggestions on how you prevent or stop robocalls, the FTC invites consumers to share their knowledge on their Facebook page. Click here for more information about the Robocall Challenge and its winners.

The Food Safety Modernization Act and the struggle to give FDA additional power – National Consumers League

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By Teresa Green, Linda Golodner Food Safety & Nutrition Fellow

On January 4, 2011 President Obama signed the Food Safety Modernization Act (FSMA) into law.  The culmination of years of work by advocates, victims of foodborne illness and their families, and the regulated food industry, FSMA was seen as a game changer.  It gave FDA new power to regulate food safety.  Most importantly, once fully implemented, FSMA was designed to transform FDA from an agency whose primary mission is response to foodborne illness to one working proactively to prevent these outbreaks from occurring at all.

An essential part of establishing this new paradigm is a series of proposed rules, four of which were scheduled to be released in January 2012.  As January passed, followed by February, then spring, summer, and fall, the clamoring from advocates and the industry for the release of the rules grew louder and louder.  Finally, in January 2013, a year later, two of the four rules were released. These two rules address produce safety and preventive controls in processed food.

Earlier this week FDA released an additional set of documents that can help to explain some of the reasons for the long delay.  These documents show that the two rules were held up at OMB (the agency that must review all agency rulemaking), where extensive changes were made to their content.  Most notably, OMB removed requirements for environmental and end-product pathogen testing as well as a proposed supplier approval verification program.

While what remains is still an improvement over the existing system, it is far weaker than what FDA had initially proposed.  There are likely many reasons why these changes were made, but these considerations will matter very little to the parents of a child whose foodborne illness could have been prevented by one of the nixed measures.

 

Looking for ROI? Try investing in public health – National Consumers League

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92_ayannaBy Ayanna Johnson, Health Policy Associate

This week, April 1-7, is National Public Health Week. This year’s theme is Public Health is ROI: Save Lives, Save Money. The public health model relies extensively on prevention—preventing deaths, preventing illness, and preventing high healthcare costs. Since 1995, communities nationwide have celebrated NPHW each April to draw attention to the need to help protect and improve the nation’s health. Investing in public health systems and interventions saves money and certainly saves lives.

Every year in the United States, seven out of 10 deaths are due to preventable chronic diseases such as diabetes and heart disease. Chronic conditions, like asthma, COPD and diabetes, cost our health care system millions. In fact, chronic diseases account for a whopping 75 percent of national health care spending, yet only 3 percent of our health care dollars go toward prevention. Nearly 45 percent of individuals with a chronic disease require at least one medication. However, one-third of people never fill their prescriptions, which is costly and can lead to unintended health consequences. With the implementation of the Affordable Care Act, it is now more important than ever to invest in preventative health care, like medication adherence, to manage our growing epidemic of preventable chronic diseases.

Poor medication adherence is a national problem that contributes to our growing health care costs, especially among those with chronic conditions. It is estimated that nearly 3 out of 4 Americans don’t take their medications as directed, costing Americans nearly $300 billion per year in avoidable hospitalizations, doctor’s visits, ER visits, and nursing home admission.

Improved medication adherence leads to cost savings. Patients with chronic conditions who are adherent to their medications have fewer emergency department visits and hospitalizations than patients who are not adherent, saving as much as $7,800 per patient annually in overall health care costs. And, every additional dollar spent on improving adherence saves $7 in medical costs for people with diabetes; $5 in medical costs for people with high cholesterol, and $4 in medical costs for people with high blood pressure.

At the National Consumers League, our campaign to raise awareness of the importance of medication adherence is an example of how improving public health can save money on health care costs in the long run.  The Script Your Future campaign provides patients, their family caregivers, and health care professionals with the tools needed to take control of their health. This includes knowing the right questions to ask a doctor, pharmacist, or other health care professionals about medications. For patients to manage their medications, it is important that they understand their chronic condition, the role of medication, and the importance of adherence.

For more information about Script Your Future, visit. www.ScriptYourFuture.org.

For more information about National Public Health Week, visit www.nphw.org.

The President’s Push For Rebuilding the Nation’s Infrastructure is Just The Right Medicine – National Consumers League

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By Sally Greenberg, NCL Executive Director

I’m on vacation in FL for the week and reading the Palm Beach Post’s coverage of President Obama’s speech from the port of Miami calling for a surge in spending on infrastructure. I couldn’t agree more. The President is not saying that all such spending should be taxpayer funded. Instead, he’s asking for a public-private partnership, including improving Miami’s rail connection to Hialeah, and in turn, with rail lines all over the country. Right now, port traffic must go through downtown Miami, causing costly delays in transporting the cargo that can be avoided with a tunnel under Biscayne Bay.

This kind of public works project will provide jobs, and likely good jobs that pay livable wages and benefits, and can help repair crumbling infrastructure affecting bridges, dams, tunnels, and sewer systems.  This is a win-win-win, because the taxpayers get better services and improved systems, workers get jobs, and the public-private partnership means that businesses are kicking in their share and have a stake in the outcome. Miami-Dade Mayor Carlos Gimenez, a Republican, says the project will create at least 10,000 jobs in the port and is a strong supporter.

I like how the President put it: “There are few more important things we can do to create jobs right now and strengthen our economy over the long haul than rebuilding the infrastructure that powers our businesses and economy. …My top priority …is to ignite the true engine of our economic growth—a rising, thriving middle class.”

Mr. Obama also outlined a series of other projects which Congress needs to support, including a $10 billion “infrastructure bank.” This is exciting stuff, and just the medicine the nation needs as we climb out of the recession of the last few years. Now we need Congress to get behind the effort.

LifeSmarts dispatches from the road: McKinley Technology High School wins LifeSmarts DC for the second year in a row – National Consumers League

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McKinley Technology High School are repeat champions

By LifeSmarts staff

Entering the day, there was one ticket left to be punched for the LifeSmarts national competition, which will be held in Atlanta, GA from April 19-23. McKinley Technology High School won the DC LifeSmarts competition today, ensuring the last spot in beautiful Atlanta. After a long day of heated competition, McKinley Tech’s two teams faced off in the final round of questioning, each flexing their consumer knowledge muscles. This was not uncommon territory for McKinley, which sent a team to the national competition in Philadelphia last year.

Delonte Bright, a member of the 2012 McKinley team and current advisor to the new DC champion team, said LifeSmarts gives students a great opportunity to learn about consumer issues.

“There are so many things I learned in LifeSmarts that have been useful in the real world,” said Bright. Het offered one example, saying, “Now I know how many times I can go to the bank and withdraw money before I get a penalty. I never have to worry about that anymore.”

Bright, who graduated from McKinley in 2012, now attends District of Columbia University, home for the DC LifeSmarts competition. He serves as a mentor to current team captain Leslie Ogu. This McKinley senior, who received a full scholarship to George Washington University for fall 2013, says that LifeSmarts is a great tool to empower consumers, and he has learned so much new information that will be helpful the rest of his life. Ogu hopes to study computer science at GW. He is already knowledgeable of technology issues evidenced by his top score in the individual technology assessment portion of the competition.

The LifeSmarts competition is a nationwide consumer challenge for high school students. It is a program of the National Consumers League. This year in Atlanta, representatives from 36 states will descend upon the Peach State for four days of consumer knowledge competitions. The participants will compete in a variety of games, testing their knowledge in personal finance, consumer rights and responsibilities, health and safety, technology, and the environment. We look forward to welcoming McKinley and all of our other winners from around the country to Atlanta next month. Follow the action on twitter at #LifeSmarts2013.

Tragic Story Highlights the Impact of Grain Bin Danger – National Consumers League

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By Reid Maki, Coordinator, Child Labor Coalition

An estimated 25 to 30 kids a year die at work. Through its advocacy and its work, the Child Labor Coalition, a campaign of the National Consumers League (NCL), has worked to reduce that number over the years. Last spring, the NCL’s annual report on The Five Most Dangerous Jobs for Teens included the agricultural industry. Last year, we worked to help enact proposed rules to protect kids working in agriculture ultimately, however, that effort failed, and the organized farm lobby was able to force the Obama administration to withdraw the rules. We estimate this will lead to the unnecessary deaths of 50 to 100 youth working on farms over the next decade.

This week, the national media has focused much-needed attention on a particular type of farm-related death: work in grain silo facilities, which in a typical year kills 15 or more workers. According to recent data, 20 percent of the victims of grain engulfments are young workers.

National Public Radio (NPR) and the Public Broadcasting System’s News Hour each featured in-depth stories this week, highlighting a terrible tragedy that occurred in Mount Carroll, Illinois nearly three years ago. Two teens were engulfed by grain and killed while working in a silo: 14-year-old Wyatt Whitebread and 19-year-old Alex Pacas. Will Piper, a 20-year-old co-worker, barely escaped with his life because someone threw him a bucket that he was able to put over his head. The bucket prevented the flowing grain from asphyxiating him. Today, Piper lives in guilt because he turned his friend Alex Pacas onto work in the grain silo.

Among the worst aspects of this case are the fact that Wyatt, 14, was too young to be doing such dangerous work. He and Alex also should have been wearing safety harnesses as they walked on top of the crusty grain trying to loosen it. The facility had the mandatory harnesses but didn’t instruct or compel the teens to wear them.

The NPR and PBS stories grew out of reporting from the Center for Public Integrity. The center found that the fines levied by the Occupational Safety and Health Administration as a result of preventable grain engulfments were typically reduced over 50 percent and in some cases well over 90 percent.

In the deaths of Alex Pacas and Wyatt Whitebread, OSHA found 12 “willful violations” and initially leveled $555,000 in fines. This amount was later reduced to $200,000. A Center for Public Interest-NPR analysis found that the $9.2 million fines proposed by OSHA for engulfments that killed 179 people between 1984 and 2012 were eventually reduced to $3.8 million.

NCL and the CLC believe strongly that youth working on farms and agricultural facilities need to have stronger protections. We urge the Obama administration to reconsider the youth occupational safety rules it withdrew last April. Why allow teen workers to engage in jobs that we know to be extremely dangerous? And in cases where employers are found to be at fault for the death of teen workers, why are fines consistently and dramatically reduced?

Consumers have many choices to save money on prescription drugs – National Consumers League

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From 2011 to 2012 prices for brand name drugs increased in price by an average of 13 percent. As healthcare costs continue to rise, all indications are prescription drugs will rise in cost as well. The good news is consumers have more resources than ever to help them save money on their prescriptions. The easiest way consumers can save money is by finding out whether a generic or non-brand name drug is available.  Generic drugs contain the same active ingredients in the same dosages as brand name drugs, but they cost far less.

Another resource available to consumers is co-pay cards. The co-pay on any prescription is a fixed amount of money that insurance companies ask consumers to pay for a specific drug. By using a co-pay card that sum of money can be greatly reduced or eliminated. There are a variety of co-pay cards available. Consumers can also save money using drug discount cards which are often available online. These cards are offered by state governments, pharmacies, non-profit groups, pharmaceutical companies or large retail chain stores. To compare prices and see which medications are covered by which cards you can visit freecopay.com, needymeds.org, or familywize.org.

To find out more about discount and co-pay cards visit the National Consumers League Web site at nclnet.org. Be wary of any discount card that requires a fee up front because those fees may cost more than the prescription itself.

Meet the top ten scams – #1 fake check fraud – National Consumers League

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This is part one of our 10-part series taking a closer look at the top scams of 2012. The number one scam reported to NCL’s Fraud Center in 2012 was the fake check scheme. To see an overview of our complete report on the top scams of the year, visit our Web site at nclnet.org.

By Sandra Latouff, NCL Public Policy Intern

“Congratulations! You’ve won the lottery!”

“You can earn a large salary just by working at home!”

“Get paid for doing what you love, earn a large salary just for shopping!”

Sounds great, right? There is one catch: all you have to do to get your reward is deposit a check and wire the money to the sender to pay the taxes and fees.

There’s another catch, which consumers aren’t told – The checks are fake and the “great opportunity” is actually a scam that could cost you big-time. On average, consumers who fell victim to these schemes lost an average of more than $2,400! That’s serious cash for most of us.

Scams involving counterfeit or fake checks were the number one scam reported to NCL’s Fraud.org campaign in 2012. The scams comes in a number of variations, including foreign lottery scams, check overpayment scams, internet auction scams, and secret shopper scams, just to name a few.

The scams works like this: a scammer contacts a potential victim, either by email, phone, through the mail, or by some other means. The original communication may or may not include a realistic-looking check made out to the victim. If the victim responds to the outreach, usually by replying to an email or by calling a phone number operated by the scam artist, she is instructed to deposit the check into her personal bank account and wire all or a portion of the proceeds from the check to the scam artist or an accomplice via a money transfer service like MoneyGram or Western Union. The scammer gets cash in hand, often within minutes. Depending on how long it takes the bank to recognize the fake check, the victim may not find out about the fraud until days or weeks later. By that time, the scam artist is long gone and the victim is left owing their bank for the proceeds from the fraudulent check.

Regardless of the type of fake check scam the scammer employs – the “mystery shopper,” the “overpayment,” and the “lottery/sweepstakes winnings” variations are popular – the common thread involves the deposit of a check into a personal bank account and then having money wired to the scammer or a third party, such as a fictional “escrow service.”

It is not unusual for a scam artist to use social persuasion techniques to gain a victim’s trust. When being contacted, the scammer may disclose some personal information such as the victim’s name, address, or email address in an effort to convince their mark that the offer is legitimate. Such personal information is widely available online and does not make the alleged company or organization legitimate or trust-worthy.

Tips to keep in mind:

  • If someone gives you a check or money order and asks you to send money somewhere in return, it’s a scam.
  • If you are asked to pay money to collect lottery or sweepstakes winnings, it’s a scam. If you have really won, you will pay taxes directly to the government after you receive your winnings. Be especially wary of claims that you have won well-known sweepstakes such as Reader’s Digest or Publishers Clearing House.
  • Legitimate mystery shopper or account manager jobs don’t involve using money transfer services to send money. Be especially cautious of offers to mystery shop Western Union or Moneygram locations, or the retail stores that house them, such as Walmart, 7-Eleven, or local drug stores.
  • The check or money order may be fake even if your bank or credit union lets you have the cash. You have the right to get the cash quickly, usually within 1-2 days, but your bank or credit union may not be able to tell if there is a problem with the check or money order until it has gone through the system to the person or company that supposedly issued it. That can take weeks. By the time the fraud is discovered, the crook has pocketed the cash.
  • Even if a consumer is defrauded in a fake check scam, she may still be required to pay the bank back for the losses.

For more tips about avoiding scams involving fake checks, please visit NCL’s FakeChecks.org campaign site or NCL’s guide “Avoid Fake Check Scams: Five things you should know.” For more information on scammers misusing the Publishers Clearing House name, click here. For more information on the Reader’s Digest fake check scam, click here. Western Union’s Consumer Protection Web site is also a good resource for information on these scams.

Familiar faces in 2012 Top Ten Scams Report – National Consumers League

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In 2012, fake check scams earned the dubious distinction of being the top scam reported by consumers to the NCL’s fraud complaint site, Fraud.org. Nearly 32 percent of the total scams reported fell into this category, and it is the second time in three years fake check scams topped our list.Many consumers do not realize that if they deposit a fake check the account holder is responsible for paying the money back to the bank. Fake check scams take many forms, but the common thread in nearly all fake check scams is a request to wire money to a third party. Tip: Don’t wire money to someone you’ve never met and you should be able to avoid this scam.

Read the full report.

Internet-based scams including bogus online merchandise scams, lottery scams, and phishing scams totaled more than half of all complaints received by Fraud.org this year. The Jamaican lottery scam, which asks people to send an advance fee before receiving their prize, was widely publicized in 2012. While American and Jamaican law enforcement authorities have begun working together to curb this widespread fraud, prevention remains the best option for most consumers.

Consumers reported being contacted by phone in more than 42 percent of the total complaints received in 2012. Tip: Whenever someone asks you on the phone to send money ahead of time in order to receive a prize, don’t do it! In fact, never send money to anyone you don’t know and you will avoid much heartache and headache.

A growing scam in Fraud.org’s complaint data is the office directory/ad sales scam. Complaints about this scam increased by 7.36 percent from 2011 to 2012. In a typical office directory scam, a small business or non-profit organization is called and the receptionist or other front-line employee is asked to verify information about the business. If the mark does so, the organization shortly begins to receive threatening invoices for bogus online business listings or other advertisements. The scam artist may even threaten legal action if payment is not sent.

Regardless of the type of scam, many instances of fraud can be avoided by remembering the old rule of thumb: if something seems too good to be true, it probably is.

If you ever do have questions about a potential fraud or think you might be a victim of a scam, report it immediately via Fraud.org’s secure online complaint form. Embarrassment or fear of friends and relatives finding out about the crime causes many victims of fraud to remain silent. Only by speaking out can we give law enforcement the tools they need to bring these criminals to justice.

Consumer group applauds Perez appointment to DOL – National Consumers League

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March 18, 2013

Contact: Carol McKay, NCL Communications, carolm@nclnet.org, (412) 945-3242

Washington, DC—The National Consumers League, America’s pioneering consumer organization, applauds President Obama’s nomination of Tom Perez to serve as Labor Secretary. Perez is a longtime champion of civil rights and spent his career advocating for working families. Perez currently serves as head of the Civil Rights Division at the Department of Justice but had previously served as labor secretary for the state of Maryland. Perez is an advocate of immigration reform, as well, sitting on the board of Casa de Maryland, a group that provides day labor centers. Perez is himself the son of Dominican immigrants. NCL’s Board of Directors recently adopted policy in support of immigration reform because immigrants are so often exploited both as consumers and workers.

The position of Secretary of Labor is critically important in overseeing the health and safety of workers through OSHA, protections provided by the Department’s the Wage and Hour Division, and ensuring there are sufficient inspectors to uncover violations of laws and regulations on child labor. The Secretary of Labor also uses the bully pulpit to highlight rights and protections afforded to workers, and encourages cooperation and collaboration between unions and management. NCL has recognized the important work of Secretaries of labor by given the organization’s Trumpeter Award to several former secretaries, including Robert Reich and Hilda Solis.

“NCL welcomes the nomination of Tom Perez, a champion of working people, to the position of Secretary of Labor and we look forward to working with him on a host of issues, including preventing exploitation of all children and teens who work, and especially farmworker children, and protecting particularly low income workers from wage theft abuses,” said NCL Executive Director Sally Greenberg.

“The Senate should move quickly to confirm this qualified nominee. We look forward to working with Perez to further build and protect the rights that are so integral to maintaining a vibrant American workforce,” said Greenberg.

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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.