Groups offer support for Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act of 2021

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December 9, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The National Consumers League, Business Travel Coalition, Consumer Federation of America, Consumer Reports, and U.S. PIRG have signed onto a letter to Members of Congress in support of the Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act of 2021. Their letter appears below:

Dear Chairman DeFazio, Ranking Member Graves, Chairman Larsen, and Ranking Member Graves:

The undersigned consumer advocacy organizations support the Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act of 2021. This bill would protect consumers from unreasonable fees that airlines have reimposed as consumer demand to fly has rebounded from the pandemic.

Millions of consumers are annually charged excessive fees for checking baggage, changing reservations, canceling flights, and other services.[1] These fees are a major profit center for the airlines. For example, U.S. airlines collected $5.8 billion in baggage fees alone in 2019.[2] Compare this to analyst estimates that it costs airlines less than $20 per bag flown to provide the service.[3]  Furthermore, exaggerated change and cancellation fees are especially punitive as consumers cannot plan for unexpected events that force them to adjust their reservations.

The capture of more than 80% of domestic air traffic by just four U.S. airlines is a clear predicate of the rise in ancillary fees.[4] The non-competitive nature of the industry has allowed predatory practices to go unchallenged for too long. To be clear, airlines have the right to charge appropriate fees to cover operational costs and to make a profit. However, the supra-competitive amounts that airlines collect for providing basic services are unjustifiable. Prior to some ancillary fees being waived during the COVID-19 pandemic, such add-on fees were a steadily increasing source of revenue for the industry.[5] Now that the airlines’ moratorium on many of their fees has ended, we are concerned that this trend will resume.

The federal government must act to protect consumers from being forced to pay billions of dollars in bogus charges. The FAIR Fees Act, which has received bipartisan support,[6] would bring much-needed relief to travelers by requiring fees to be reasonable and reflect the actual costs of the services provided.

In addition to this immediate cost-saving benefit to consumers, the FAIR Fees Act would also direct the Department of Transportation to review any other fees charged by airlines and work to reduce airlines’ untaxed revenue. Since the IRS does not consider baggage fees or other ancillary fees to be related to the transport of a person, airlines do not pay excise taxes on the earnings they receive from these charges.[7] As ancillary charges have become a major source of revenue for the industry, this loophole has allowed airlines to avoid (conservatively) hundreds of millions of dollars in federal taxes.[8] Therefore, reining in ancillary fees would help reduce the amount of untaxed income this industry receives.

We applaud Representative Cohen for his continued leadership in protecting consumers from the exorbitant ancillary charges found on too many plane tickets. We urge your respective committees to report the legislation without delay.

Sincerely,

National Consumers League
Business Travel Coalition
Consumer Federation of America
Consumer Reports
U.S. PIRG

 

cc:       Members, House Committee on Transportation & Infrastructure

[1] USA TODAY. Shopping for flights? Change fees and other pre-pandemic penalties are back or returning soon on cheapest tickets. April 2, 2021. Online: https://www.usatoday.com/story/travel/airline-news/2021/04/02/covid-travel-airlines-change-fees-return-cheap-tickets-american-united/4805128001/

[2] CNBC. US airlines charged almost $5 billion in baggage fees last year—here’s how to avoid them. May 16, 2019. Online: https://www.cnbc.com/2019/05/15/us-airlines-brought-in-almost-5-billion-dollars-in-baggage-fees-last-year.html

[3] McCartney, Scott. “What It Costs An Airline to Fly Your Luggage,” Wall Street Journal. (November 25, 2008). Online: https://www.wsj.com/articles/SB122757025502954613 (Note: $15 in November 2008 is equal to $19.11 when adjusted for inflation in September 2021, per the U.S. Bureau of Labor Statistics.)

[4] Openmarketsinstitute.org. Airlines & Monopoly. Online: https://www.openmarketsinstitute.org/learn/airlines-monopoly

[5] Statista.com. Total ancillary revenue in the airline industry from 2011 to 2020. December 4, 2020. Online: https://www.statista.com/statistics/788849/airline-industry-ancillary-revenue/

[6] Office of Senator Edward J. Markey. “FAA Bill a Missed Opportunity to Protect Passengers from Ridiculous Airline Fees, Says Senator Markey.” Press release. (October 3, 2018) Online: https://www.markey.senate.gov/news/press-releases/faa-bill-a-missed-opportunity-to-protect-passengers-from-ridiculous-airline-fees-says-senator-markey

[7] Smarter Travel. If Fees Were Taxed, Would Airlines Ditch Them? July 16, 2020. Online: https://www.smartertravel.com/if-fees-were-taxed-would-airlines-ditch-them/

[8] Testimony of Dr. Gerald Dillingham (Director of Civil Aviation Issues, U.S. Government Accountability Office) before the House Subcommittee on Aviation. (July 14, 2010) (“However, if checked bag fee revenues that airlines reported in fiscal year 2009 had been subject to the excise tax on domestic travel, it would have generated about $186 million, or somewhat less than 2 percent of the Trust Fund revenues for 2009.”) Online: https://www.congress.gov/event/111th-congress/house-event/LC6763/text?s=1&r=9

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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.

National Consumers League salutes outgoing Consumer Federation of American Executive Director Jack Gillis on his 38 years of service to consumers

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November 19, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The National Consumers League salutes Jack Gillis on his 38 years of service to the consumer movement; Gillis has announced his retirement as Executive Director of the Consumer Federation of America.

“The National Consumers League’s Board of Directors and staff salute Jack Gillis and thank him for his decades of service and marvelous career dedicated to improving the lives of consumers,” said Jenny Backus, Pastor Herrera, Susanna Montezemolo, and Debbie Berlyn, NCL board members who have known and worked with Jack over the years. “He has made us all proud to be consumer advocates. We will miss his leadership and know the consumer movement is forever changed because of his dedication and commitment.”

Jack Gillis is also a well published author, co-author, and editor of 75 consumer books including The Car Book, published for 40 consecutive years. He served for 10 years as a contributing consumer correspondent for NBC’s Today Show representing CFA, was Good Housekeeping’s personal finance columnist, and was a child product safety columnist at Child Magazine.”

Gillis has been with CFA since 1983, serving as Director of Public Affairs and, since 2018, as Executive Director. “Jack Gillis has been a leader, mentor, and friend to several generations of consumer advocates. Jack’s vision for consumer issues is legendary, and he is known to the Washington establishment – members of Congress, regulators, and public interest advocates alike — as the face of consumer advocacy. Jack spearheaded CFA’s leadership on a wide variety of consumer issues, including auto safety, financial services, housing, privacy, food, and product safety issues,” said Sally Greenberg, NCL’s Executive Director. “Jack always had a ready ear, provided support and sound advice to me and countless others toiling in the grapevines on behalf of consumers. It’s a tough line of work and we will miss his camaraderie and friendship.  We wish him well in this exciting new chapter of life.”

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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.

National Consumers League statement on the passage of the INFORM Consumers Act

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November 17, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The National Consumers League (NCL), America’s pioneering consumer advocacy organization, today applauded the House Committee on Energy and Commerce for its vote to report out H.R. 5502, the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act.

The following statement is attributable to NCL’s Vice President of Public Policy, Telecommunications, and Fraud John Breyault:

Over the past 20 months, the COVID-19 pandemic has highlighted the important role that online sales platforms play in connecting consumers to the marketplace. As consumers have flocked to these marketplaces, the need for these platforms to better address unsafe products, counterfeiting, and the policing of third-party sellers has become ever more urgent.

Providing consumers with basic information about whom they are buying products from and how to contact the company is a cornerstone of consumer protection. We strongly support Congresswoman Schakowsky’s and Congressman Bilirakis’ bipartisan bill and urge the full House of Representatives to swiftly approve this legislation.

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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.

National Consumers League launches FactsAboutRecycling.org to inform consumers about recyclability, sustainability of food and beverage packaging

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November 15, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—Today, on America Recycles Day, National Consumers League (NCL) launched FactsAboutRecycling.org, an information hub where consumers can learn more about what actually happens to the food and beverage packaging they toss in the recycling bin. The new site houses an animated video to help explain the recycling system, correct misinformation proliferated through marketing, and educate and empower consumers to make environmentally sustainable purchases.

“Just because something can be put in the recycling bin doesn’t mean it will truly end up being recycled,” said Sally Greenberg, NCL’s executive director. “Consumers deserve to know the truth about the sustainability of their purchases, so they can make the most informed decisions possible.”

Building upon NCL’s sustainability and honesty-in-marketing work over the past year, including infographics, podcasts, and a white paper entitled Examining Sustainability, Consumer Choice, and Confusion in Food and Beverage Packaging, FactsAboutRecycling.org gives consumers and environmental advocates fresh insight into the true sustainability of plastic, glass, metal, and cartons.

“Misleading marketing claims don’t just harm consumers; they can harm the environment and exacerbate the ongoing plastic pollution crisis. Better information will support smarter purchasing,” said Greenberg.

For more information, visit www.FactsAboutRecycling.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 FDA nomination of Robert Califf

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November 15, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The National Consumers League extends congratulations to Dr. Robert Califf for his nomination to serve as Commissioner of the U.S. Food and Drug Administration. As COVID-19 persists and the nation continues to face unprecedented public health challenges, consumers rely on the FDA to ensure the safety and efficacy of our food and prescription drug supply.

NCL Executive Director Sally Greenberg weighed in with the following statement:

“NCL welcomes Dr. Robert Califf to the important role as Commissioner of the FDA. We have worked with Dr. Califf during previous administrations and can attest that he brings a longstanding commitment to FDA’s crucial role of overseeing the nation’s food and drug industry as well as medical devices and cosmetics. Dr. Califf has a long list of priorities ahead of him, and it is our hope that we can look forward to working with him on matters of consumer protection.

Among NCL’s consumer safety concerns is the proliferation of unregulated CBD products in the marketplace, encouraging confidence in vaccines for the prevention of COVID-19 and other infectious diseases, ensuring accurate food and nutrition labeling information for consumers, and making prescription drugs accessible and affordable for all Americans.

NCL worked productively with Dr. Califf during his previous appointment as FDA commissioner, and we look forward to continuing to serve as a resource to the FDA under his leadership to ensure that both patient and consumer protection remain the highest priority.”

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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.

National Consumers League applauds Senate confirmation of Alex Hoehn-Saric as CPSC Chair

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October 8, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242

Washington, DC—The National Consumers League (NCL) applauds action by the U.S. Senate on Thursday confirming Alexander Hoehn-Saric as Chair and Commissioner of the U.S. Consumer Product Safety Commission (CPSC). Hoehn-Saric brings extensive experience to the role, serving most recently as Chief Counsel for the Subcommittee on Consumer Protection and Commerce of the House Energy and Commerce Committee. He has served on Senate committees as well as on the staff of former Sen. Barbara Boxer (D-CA) when she served on the Commerce Committee. Hoehn-Saric’s experience with and support of consumer product safety protections is longstanding.

“We congratulate Mr. Hoehn-Saric on his recent confirmation as Chair of the CPSC and look forward to working with him. Product safety is of critical importance to American families and essential to the safety of children of all ages. CPSC’s charge is to ensure that consumer products meet basic safety standards and are well designed. CPSC must also act to protect consumers from the hazards posed by unsafe products,” said NCL Executive Director Sally Greenberg. “We think Hoehn-Saric will fulfill this leadership role well.”

NCL also appreciates the longstanding dedication of Acting Chairman Robert Adler, who has served in the role of chair since 2017 and spent many years before that as commissioner.

“The CPSC conducted critically important recalls during his tenure and issued important research about product safety before and during the COVID 19 pandemic, with Adler at the helm,” said Greenberg.

Going forward, we urge the U.S. Senate to move swiftly to confirm two additional Biden Administration-nominated CPSC commissioners, Mary Boyle and Richard Trumka Jr. “A full complement of commissioners at the CPSC will enable the agency to address the many product safety issues on its agenda and resolve differences in consumers’ favor when it comes to stronger product safety enforcement,” said Greenberg.

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 supports the Helping Adults Protect Immunity (HAPI) Act

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September 30, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242

Washington, DC—The National Consumers League (NCL) is pleased to support the Helping Adults Protect Immunity (HAPI) Act (HR 2170), introduced by Representative Darren Soto (D-FL) in the House and by Senator Sherrod Brown (D-OH) in the Senate. The bill would expand access to immunizations for adults by eliminating cost-sharing for vaccines recommended by the Centers for Disease Control and Prevention (CDC) Advisory Committee on Immunization Practices (ACIP).

“Throughout its rich history, NCL has advocated for increased access to vaccines as life-saving medical interventions. The HAPI Act is common sense legislation that would help to eliminate out-of-pocket costs for all vaccines recommended by the ACIP,” said NCL Director of Health Policy Jeanette Contreras. This legislation would apply to crucial immunizations such as Shingles and tetanus, diphtheria, and pertussis vaccines, along with future vaccines.

NCL is grateful for the important role of the ACIP to make recommendations using evidence-based research methods, examining the harm-benefit ratio, and understanding the values of the affected populations. Currently, all ACIP and CDC recommended vaccines are covered with no out-of-pocket costs under private insurance, Medicare Part B, and ACA Medicaid Expansion. Unfortunately, traditional Medicaid beneficiaries must often pay varying out-of-pocket costs for recommended vaccines depending on the state.

More than 50,000 adults in the United States die annually from vaccine preventable deaths. The HAPI Act would help to lower that number significantly by providing more vaccine access to Medicaid beneficiaries, our most vulnerable low-income populations. “No one should be unable to obtain a vaccine due to cost barriers. We can ensure that all Americans are protected against preventable diseases regardless of their state of residence or their ability to pay,” said Contreras.

NCL urges Congress to pass the HAPI Act to ensure Medicaid beneficiaries across the country have  equitable access to recommended vaccines across lifespan.

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 Senate confirmation of Rohit Chopra as CFPB Director

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September 30, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242

Washington, DC—The National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, today applauded the U.S. Senate for its confirmation of Rohit Chopra to serve as the next Director of the Consumer Financial Protection Bureau (CFPB).  

A true champion for consumer protection, Chopra has worked to promote the public interest throughout his career — as he supported Sen. Elizabeth Warren (D-MA) in her efforts to establish the CFPB and, later, as he fought against predatory and fraudulent business practices as a Commissioner at the Federal Trade Commission.  

The following statement is attributable to Sally Greenberg, NCL’s Executive Director: 

“Rohit Chopra is a consumer champion in every sense of the word. His confirmation as Director of the CFPB could not come at a more important time for America. He helped stand up the Bureau in the depth of the Great Recession, when banks’ predatory practices had brought our economy to its knees. He now takes over as CFPB Director at a time when far too many consumers are being forced by the global pandemic to make painful economic choices.  

“His extensive experience and passion for protecting consumers is today especially needed. Via our Fraud.org website, NCL hears daily from victims of the types of scams that the CFPB works to prevent. 

“NCL looks forward to working with Director Chopra to reinvigorate the CFPB and ensure that it fulfills its mission to protect the most vulnerable American consumers.” 

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 stands behind CDC COVID-19 booster recommendations

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September 29, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242

Washington, DC—The National Consumers League (NCL) applauds the coordinated efforts of the U.S. Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) to approve the Emergency Use Authorization (EUA) of the Pfizer-BioNTech COVID-19 vaccine booster. As the Delta variant continues to cause more breakthrough cases among vaccinated individuals, it is clear that we need to ensure the protection of our most vulnerable populations.

On September 24, CDC Director Rochelle Walensky went beyond the recommendations of the Advisory Committee on Immunization Practice (ACIP) and made the call to recommend the single-dose booster to frontline workers in addition to those groups recommended by ACIP. Walensky’s recommendations are in line with those of the FDA’s Vaccines and Related Biologic Products Advisory Committee (VRBPAC), which voted to approve the EUA of the booster shot for individuals older than 65 years of age, individuals at high risk for severe disease, and those with institutional or occupational exposure to COVID-19.

“NCL has long advocated for increased access to the vaccine for frontline, essential workers and equitable distribution of the vaccine to populations hardest hit by the pandemic,” said Jeanette Contreras, NCL Director of Health Policy. “The single-dose booster shot is a necessary measure to ensure the safety of those most at risk, and to further mitigate the spread of the COVID-19 virus.” The essential workers who received their Pfizer-BioNTech vaccines early in the pandemic are next in line for the booster shot, recommended at least six months after completion of the primary two-dose series.

“Consumers who were vaccinated with the Moderna or Janssen COVID-19 vaccine are on the edge of their seats,” said Contreras. “In some cases, consumers may want to get a Pfizer-BioNTech booster shot even if they’ve had one of the other vaccines. We want consumers to know that there is still not enough data for the FDA to approve mixing the vaccines.” The Administration has signaled that while recommendations for ‘mixing and matching’ vaccines will come later in October, they are working closely with Moderna and Johnson & Johnson to get their booster shots approved in the coming days.

Consumers who completed the primary series of the Pfizer-BioNTech COVID-19 vaccine, branded as Comirnaty, now have ready access to the booster shot. Consumers must demonstrate they had their second dose of the vaccine at least 6 months ago and attest to being in the approved high-risk population groups. NCL stands behind the recommendations of the CDC and will continue to ensure that consumers have access to life-saving vaccines.

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 applauds decision to ban vaccine misinformation from YouTube

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September 29, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242

Washington, DC—The National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, today applauded YouTube and its parent company Alphabet for their decision to ban anti-vaccine misinformation from the platform. NCL has been a leading voice in promoting vaccine confidence and pushing online platforms to do more to counter misinformation and disinformation about COVID-19 and vaccines, which has contributed to far too many preventable deaths.

The accounts being removed are known anti-vaccine organizations. Robert F. Kennedy’s Children’s Health Defense Fund, one of the most high-profile anti-vaccine organizations in America, was responsible for more than half of the paid advertisements on Facebook in years past. Joseph Mercola, founder of Mercola.com Health Resources, authored an article falsely stating that COVID-19 vaccines released via emergency authorization may cause massive side effects. Tenpenny Integrative Medical Center, spearheaded by physician, Sherri Tenpenny, promotes alternative health in lieu of vaccines and authored the book, “Say No to Vaccines: A Resource Guide for All Ages.”

The following statement is attributable to NCL Director of Health Policy: Jeanette Contreras:

“Vaccine hesitancy driven by rampant misinformation online is costing lives every day and prolonging a pandemic that has devastated consumers financially as well as physically. YouTube’s decision to ban anti-vaccine misinformation, while overdue, is nonetheless an important step forward in the fight against the COVID-19 pandemic.”

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.