The Child Labor Coalition expresses alarm over the results of DOL’s investigation into child labor at meatpacking plants in the U.S. and calls for current protections to be enhanced, not weakened

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February 21, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 823-8442

Washington, D.C. – The Child Labor Coalition, consisting of 39 organizational members who work to end exploitative child labor domestically and internationally, calls attention to today’s announcement by the U.S. Department of Labor (DOL) that its just-completed investigation found 102 children working in cleaning crews in 13 meatpacking plants in eight states. DOL levied a fine of $1.5 million in civil money penalties against Packer Sanitation Services, Inc. (PSSI).

The children often worked the graveyard shift and used caustic chemical agents while they cleaned meat processing equipment including backsaws, brisket saws and head splitters. DOL learned that three minors were injured while working for PSSI.

Sally Greenberg, chair of the Child Labor Coalition, publicly called for meatpacking plants to be investigated for underage worker in 2008 during a congressional hearing on child labor.

“While we applaud this seemingly robust investigation by U.S. DOL, we wonder why the meatpacking firms who benefited from illegal child labor are not being held liable,” said Reid Maki, who is the Child Labor Coalitions coordinator and the Director of Child labor Advocacy for U.S. DOL. “Firms like JBS Foods, Tyson Food, Cargill, Turkey Valley Farms and others, hired PSSI to do the cleaning but company employees witness underage workers performing hazardous work with dangerous chemicals and did nothing to stop it. Why aren’t these companies being punished?” he asked.

Maki noted that the fine amount is the legal maximum that DOL could assess in the case but $1.5 million is roughly one day’s revenue for a company like PSSI that has over $450 million in annual revenue. “We would really love to see maximum and minimum child labor fines increased, and we had discussions with Senator Schatz’s office about it this very week,” he noted.

Maki noted that the investigation results are well-timed because the state of Iowa is considering a reprehensible child labor bill that would allow children to work expanded hours and in hazardous work areas.

“Iowa bill S.F. 167 not only extends hours for teen work, it permits minors to work in highly hazardous areas like meatpacking loading docks and assembly areas,” said Maki. “It’s a cynical, dangerous bill that builds in liability waivers for employers against teen worker injuries that the legislative authors know will happen. We strongly oppose this bill.”

Other states, including Ohio and Minnesota, are considering bills to weaken hard-won child protections.

Maki also noted giant loopholes in U.S. child labor law that expose child workers on farms to great risks. “Our weak child labor laws allow kids who are only 12 to work unlimited hours on farms when school is not in session. We’ve met many 12-year-olds who work 70–80-hours a week in the summer and in stifling heat, performing back-breaking labor,” explained Maki. “A teen worker has to be 18 to perform hazardous work in the U.S. but in agriculture they only need to be 16,” he added.

“The presence of young children in farm work, makes it critical that U.S.DOL begin enhancing hazardous work rules for child workers in agriculture,” said Maki. “DOL succumbed to political pressure when it scuttled needed protections over a decade ago and since then has refused to honor its responsibility to protect kids from known work dangers.”

We have also been waiting for DOL to protect child tobacco workers who regularly become ill from nicotine absorption and poisoning, noted Maki. “You must be 21 to buy cigarettes in the U.S., why does U.S. law allow tobacco growers to hire 12-year-olds to harvest this toxic crop? DOL needs to do more to protect these vulnerable workers.”

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About the National Consumers League (NCL)
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 nclnet.org.

The National Consumers League sent a letter urging Senate Committee on Commerce, Science and Transportation to ensure that consumers get a fair deal at the pharmacy

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February 21, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – The National Consumers League (NCL) sent a letter urging Senate Committee on Commerce, Science and Transportation to ensure that consumers get a fair deal at the pharmacy. When it comes to the high out-of-pocket costs consumers face at the pharmacy counter — often for lifesaving medications — consumers today have an unfair disadvantage.

“With three PBMs controlling nearly 80 percent of all prescription drug claims, it is timely that lawmakers are looking at PBMs’ role in driving up the cost of drugs to consumers and patients,“ said Sally Greenberg NCL Chief Executive Officer. “We are encouraged to see the committee looking into the workings of PBMs and we are supportive of your efforts to hold these entities accountable.”

Beyond addressing the antitrust issues and increasing transparency of PBM revenue streams, we encouraged legislators to:

  • Remove medication barriers: PBMs should not be allowed to limit access to the medicines doctors prescribe.
  • Require PBMs to pass on savings directly to consumers: PBM rebates should be shared so that consumers can benefit from more affordable out-of-pocket costs. Additionally, patient cost-sharing should be based on the net cost of the drug, not the list price.
  • Ensure simple, single administrative PBM fees: PBMs too often tack on arbitrary fees to local pharmacies, with many independent and community pharmacies struggling to stay in business, this trickles down to the consumers, resulting in increased prices and pharmacy closures, leading to many communities facing pharmacy deserts.
  • Ensure PBM profits are not tied to the costs of medications: The system currently incentivizes PBMs to favor medicines with higher list prices so that they can negotiate larger rebates and/or steer patients to medicines with higher price tags to increase their own profits.

With the many evolving ways PBMs too often put profit over consumer interests, it is crucial that federal consumer protection agencies like the FTC have the tools needed to address the PBM problem.

To view the full letter, click here.

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About the National Consumers League (NCL)
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 nclnet.org.

NCL’s Greenberg joins panel to discuss the challenges and opportunities of the generic and biosimilar industries

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February 15, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – NCL’s CEO Sally Greenberg spoke at the Association of Accessible Medicines and International Generic and Biosimilar Medicines Association Annual Meeting in Orlando, FL on Wednesday, February 15, 2023.

Greenberg joined the panel “The Generic and Biosimilar Industries Global Reputation” moderated by former NY Times journalist Gardiner Harris.

In her statements, Greenberg made the following points:

  • The generic and biosimilar industry has saved the US health care system an estimated $2.4 trillion between 2011 and 2020 and the industry is incredibly important to a well-functioning health care system.
  • NCL reinforces the messages with consumers that generic drugs contain the same active ingredients in the same dosages as brand name drugs, are every bit as safe and effective, but cost far less.
  • Biosimilars, developed after patents expire on brand name biologics, are as safe and effective as the original biologic, both brand biologics and biosimilars are rigorously and thoroughly evaluated by the FDA before approval and biosimilars have no clinically meaningful differences from the original biologic.
  • Over 90% of drugs are available in a generic version today, compared to less than 19% less than 4 decades ago, saving consumers and patients many millions of dollars each year.
  • The role of consumer advocacy groups like NCL will continue to be as an independent voice disseminating accurate, evidence based, scientifically grounded information about medicines and their safety and efficacy.

For the first time since 2014, the 25th International Generic and Biosimilar Medicines Association (IGBA) Annual Conference will be held in the United States, in conjunction with AAM’s Access! 2023 Annual Meeting. This event offers an opportunity to hear from leading global stakeholders, industry leaders, and other experts offering their views and analysis of the most pressing policy questions influencing patient access to generic and Biosimilar medicines in countries around the world.

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About the National Consumers League (NCL)
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 nclnet.org.

NCL urges Senate committee to hold airlines accountable for operational meltdowns

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February 9, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — Today, the Senate Commerce Committee will hold a hearing focused on Southwest Airlines’ operational meltdown in December 2022. The committee should use this opportunity to not only hold Southwest accountable but to also address the underlying causes of and remedies for chronic cancellations and delays that affect millions of passengers annually. 

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

“Instead of ensuring that thousands of travelers and employees weren’t stranded for the holidays, Southwest spent $5.6 billion on stock buybacks. But Southwest is not an outlier. Putting short-term profits ahead of long-term investments that prioritize the needs of passengers has been a hallmark of the industry for decades. This is one symptom of a broken marketplace where four carriers control over 80 percent of domestic flights. America’s airline passengers, whose tax dollars bailed out the airline industry to the tune of more than $50 billion, deserve better. The Senate Commerce Committee must thoroughly investigate what happened at Southwest and reform our air travel industry to ensure such crises never happen again.” 

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About the National Consumers League (NCL)
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 nclnet.org.

The National Consumers League supports the bipartisan S 4918 (117th Congress) “Increasing Prescription Drug Competition Act”

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February 7, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – NCL is the nation’s oldest consumer and worker advocacy organization, formed in 1899 to work for a fair marketplace for all. NCL has long supported robust competition and affordable, accessible drugs for patients and consumers. We therefore appreciate the opportunity to provide our support for the bill introduced in the 117th Congress entitled “Increasing Prescription Drug Competition Act”, co-sponsored by Senator Maggie Hassan (D-NH) and Senator Mike Braun (R-IN). This legislation would bar the use of various loopholes in the law to block the introduction and sale of competitor drugs. One such familiar technique brand drug makers have used is claiming that a REMS programs (Risk Evaluation and Mitigation Strategies) required by the FDA for the brand version of the drug, prevents a competitor drug from entering the market. This argument goes against the prevailing view within the FDA and the FTC that a REMS requirement on the brand name drug must not be used as a way to block competition.

The Federal Trade Commission voted 4-0 to file an amicus brief  with the U.S. District Court for the District of Delaware on this topic.  The FTC brief takes no position on the scope or claim construction of the patent, but argues generally that there is significant harm to consumers when a brand lists a patent on a distribution system in the Food and Drug Administration’s “Orange Book” of approved drugs and thereby blocks the introduction of lower-cost generic medications or other follow-on competition. The FTC’s amicus brief explains how the Orange Book listing process can be abused, and emphasizes the harm to competition and consumers that can result from that abuse, including depriving consumers of potential competition from lower-cost alternatives and the ability to choose between products.

By way of background, we note these additional points:

  • REMS, or Risk Evaluation and Mitigation Strategies, are required by FDA for certain medications to ensure that the benefits of the drug outweigh its risks.  The sole purpose of a REMS is to protect patient safety
  • Despite policies that the former FDA Commissioner, Dr. Scott Gottlieb announced in 2018 to reduce the use of REMS programs as a way to block competition and access, followed by the CREATES act, which was signed into law in 2019, loopholes remain today
  • We look forward to the reintroduction of the bi-partisan bill proposed last fall by Senator Hassan (D-NH)and Senator Braun (R-IN), “Increasing Prescription Drug Competition Act”, which would no longer allow FDA approvals of medications to be delayed due to patents listed in the FDA “Orange Book” on REMS
  • We hope the legislation will address the problem of companies taking advantage of FDA-mandated safety programs at the expense of patients receiving innovative competitor medications, or generic medications. We believe that “Increasing Prescription Drug Competition Act”, bill will help to address that problem.

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About the National Consumers League (NCL)
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 https://nclnet.org.

NCL urges House Transportation Committee to demand answers from FAA on aviation safety

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February 7, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — Today, the House Committee on Transportation and Infrastructure will hold a hearing focused on the need to enhance America’s aviation safety system. The committee calls the U.S. system a “gold standard” for the world. Unfortunately, the Federal Aviation Administration’s (FAA) previously sterling record in this area has been badly tarnished by the Boeing 737 Max scandal, operational meltdowns, and scary near-misses. 

In particular, Congressional leaders must hold the FAA accountable for its failure to implement statutorily-required minimum dimensions for passenger seats. For decades, air carriers have reduced seat sizes across all fare classes. The result is that millions of travelers must fly under conditions that the FAA’s own advisory has deemed unsafe.  

Fortunately, thanks to advocacy by NCL and other passenger rights organizations, momentum is growing for reform. In November, NCL along with a coalition of six public interest groups, filed comments with the FAA calling for a moratorium on airlines reducing seat sizes until the FAA can update its emergency evacuation standards. In December, Senators Baldwin and Duckworth introduced legislation requiring the FAA to update evacuation standards to reflect the modern cabin environment. 

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

“Shrinking seats on airplanes have serious consequences, from impeding emergency evacuations to raising the risk of serious negative health effects. The FAA is more than three years overdue in complying with the law and addressing this problem. As the only agency in the nation responsible for aviation safety, the House Transportation Committee must ensure that the FAA does not continue to slow-walk critical aviation safety issues like setting minimum seat size standards.  

We are disappointed that the first hearing on this issue in the new Congress will not feature any witnesses representing those who are most directly impacted by such safety oversight – namely, passengers. Nonetheless, NCL urges Congress to use this opportunity to ensure the executive branch’s compliance with air safety mandates.” 

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About the National Consumers League (NCL)
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 https://nclnet.org.

Top Ten Scams Report: Consumers reported massive uptick in crypto-linked fraud losses in 2022

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February 6, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — Reports of scams tied to cryptocurrencies drove a significant increase in median losses in 2022, according to the National Consumers League’s annual Top Ten Scams report. The report, published annually, analyzed more than 3,500 consumer fraud complaints filed with NCL’s Fraud.org campaign last year. 

The report found that the median loss for investment frauds reported to Fraud.org was $18,700, compared to $1,750 in 2021. The complaints in this category frequently described schemes where victims were encouraged to put money into cryptocurrencies and cryptocurrency-linked investments that later turned out to be fraudulent. Such scams drove an increase in the median loss for all frauds reported to Fraud.org to $950, an eleven-year high. 

“Both median losses and the share of incidents reporting losses are up,” said John Breyault, NCL vice president of public policy, telecommunications, and fraud and the director of the Fraud.org campaign. “New technologies seem to be driving these trends, from crypto-related schemes to scammers using new technology to move victims’ money around.” 

Bank account debit, which includes peer-to-peer platforms like Zelle and Venmo, was the second most frequently mentioned way that victims reported sending money to fraudsters in 2022 (27.17% of complaints that included a loss). Compare this to 2021 when bank account debit was mentioned in 11.2% of complaints that included a loss. 

The top ten scam categories reported to Fraud.org in 2022 were: 

  1. Prizes/Sweepstakes/Free Gifts 
  2. Internet: General Merchandise 
  3. Phishing/Spoofing 
  4. Fake Check Scams 
  5. Investments: Other (incl. cryptocurrency) 
  6. Advance Fee Loans, Credit Arrangers 
  7. Friendship & Sweetheart Swindles 
  8. Family/ Friend Imposter 
  9. Computers: Equipment/Software 
  10. Scholarships/Grants 

“While we’re collecting data to better inform our efforts to combat fraud, we’re also aiding victims and connecting them with resources,” said NCL Consumer Services Coordinator James Perry. “It’s important to remember the person behind each report.” 

Notably, the share of reports involving romance scams declined by 31%. This trend may be attributable to last year’s significant media coverage of this type of fraud following the success of fraud-focused shows like “The Tinder Swindler” and “Inventing Anna.”  

“In real time, we are seeing the benefits of a national discussion around these types of fraud” said NCL Public Policy Manager Eden Iscil. “Having an open conversation about something as sensitive as romance scams helps to destigmatize the issue, provide space for victims to seek help, and put pressure on digital platforms to prevent misconduct.” 

To view the full 2023 Top Ten Scams report, click here. 

Methodology 

The National Consumers League Top Ten Scams report analyzed 3,503 complaints submitted by consumers to NCL’s Fraud.org campaign in 2022. This data is self-reported by victims and should not be considered a nationally representative sample. NCL shares complaint data with a network of law enforcement and consumer protection agency partners who combine it with other data sets to identify trends in fraud and build cases. 

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About the National Consumers League (NCL)
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 https://nclnet.org.

NCL statement on FDA decision regarding CBD regulatory framework

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January 27, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – The National Consumers League (NCL), the nation’s oldest consumer advocacy organization, applauds the FDA’s decision that “a new regulatory pathway for CBD is needed that balances individuals’ desire for access to CBD products with the regulatory oversight needed to manage risks.”

NCL has been actively monitoring the growing threats to consumer safety as the market for untested, unapproved cannabidiol (CBD) products has exploded.

“This announcement is a critical step in the right direction. NCL supports FDA’s assessment that the existing dietary supplement and conventional food pathways are not appropriate for CBD,” said NCL Executive Director Sally Greenberg. “We are encouraged to see regulators prioritizing science and consumer safety, and we are committed to working with Congress, the FDA and other stakeholders to explore potential regulatory pathways that prioritize management of health risks associated with CBD and acceleration of rigorous research into cannabinoids’ therapeutic potential.”

“To that end, NCL was pleased to see FDA highlight the need for risk management tools, including clear labels, CBD content limits, and measures, such as minimum purchase age, to mitigate the risk of ingestion by children.”

Along with our partners – the Consumer Federation of America and the Community Anti-Drug Coalitions of America – NCL created the Consumers for Safe CBD in 2019, now Cannabis Consumer Watch, to educate consumers about the potential dangers of CBD in an unregulated market.

“We will continue advocating for policies that preserve meaningful, scientific research incentives while protecting public health,” Greenberg said. “As Congress works to develop a new regulatory pathway for CBD, it is critical that we bear in mind there’s greater urgency to address the risks posed by intoxicating cannabinoid products in the hemp market. As we’ve seen, these products pose significant risks to consumers, and must be addressed. Science should continue to guide policy discussions to ensure a safe and effective regulatory pathway.”

To learn more, visit cannabiswatch.org.

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About the National Consumers League (NCL)
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 https://nclnet.org.

NCL urges FTC to prohibit user review manipulation

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January 10, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON DC. – The National Consumers League (NCL) this week filed comments in support of a Federal Trade Commission (FTC) regulation to ensure the reliability of user reviews. In its comments, NCL urged the FTC to prohibit user reviews from individuals who did not purchase a product or service (or are misrepresenting their experiences with a product or service) and to prohibit sellers from manipulating consumer reviews. In addition, the League advocated for the Commission to require hosts of user reviews to implement measures to protect review integrity, such as requiring purchase verification.  

“Consumers frequently cite user reviews as a key factor when deciding what to buy,” said John Breyault, NCL Vice President of Public Policy, Telecommunications and Fraud. “As a result, fake endorsements steer billions of dollars each year towards certain products and away from competitors. The impacts range from buyers receiving goods of poorer quality than expected to serious safety risks.” 

NCL also encouraged the FTC to prohibit the commercial exploitation of social media engagement metrics, such as buying and selling likes, comments, or shares. Such practices can be used to boost fraudulent product reviews and endorsements, allowing bad actors to manipulate social media platforms to broaden their reach. 

“Right now, it is extremely easy to spend a few dollars and receive hundreds of likes, followers, or other signals that a product or service is of high quality,” said Eden Iscil, NCL Public Policy Manager. “By jumpstarting a post with purchased engagement, the content has a greater chance of reaching a real audience—and being believed by them. Such practices not only affect consumers making purchasing decisions but can also be used to spread other types of misinformation.” 

The FTC initiated this regulatory process following NCL’s request for greater federal enforcement against organized user review fraud, which can be found here.  

NCL’s full comments to the FTC can be found here. 

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About the National Consumers League (NCL)
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 https://nclnet.org.

NCL supports FTC efforts to ban non-compete clauses

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January 6, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON DC. – The National Consumers League (NCL), the nation’s pioneering consumer and worker advocacy organization, applauds the Federal Trade Commission’s (FTC) initiative to ban non-compete clauses. Such provisions prevent employees from taking new jobs in the same industry, violating free-market values and dampening fair competition. 

The following statement is attributable to NCL Chief Executive Officer, Sally Greenberg: 

“Non-compete clauses harm workers by blocking them from seeking better wages and working conditions. They also reduce market competition by barring other businesses from attracting talent and stopping employees from setting up their own shops. The FTC’s proposed ban on non-compete clauses is a significant step towards a more fair and free economy for all.

Allowing the unrestricted movement of labor will benefit consumers in addition to workers and competitive businesses. NCL has long believed that consumers stand to gain when purchasing goods and services provided by a healthy and robust workforce. We look forward to supporting the FTC’s efforts to prohibit non-compete clauses across the country.”

The FTC estimates that once its ban on non-compete clauses goes into effect, workers’ earnings would increase by nearly $300 billion per year, creating new opportunities for approximately 30 million individuals. Furthermore, these unjust clauses harm all incomes groups, with a 2019 report finding that 29% of workplaces offering an average hourly pay under $13.00 were subjecting their employees to a non-compete agreement. 

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About the National Consumers League (NCL)
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 https://nclnet.org.