NCL offers support for the Domain Reform for Unlawful Drug Sellers (DRUGS) Act

January 31, 2022

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

Washington, DCThe National Consumers League is pleased to support the Domain Reform for Unlawful Drug Sellers (DRUGS) Act (HR 6352), which was introduced on January 7, 2022 by U.S. Representatives Bobby L. Rush (D-Ill.) and David B. McKinley, P.E. (R-W.Va.). The Senate equivalent (S. 3399)was introduced by Senators Marco Rubio (R-Fla.) and Amy Klobuchar (D-Minn.). This legislation aims to create a program that holds internet registries and registrars responsible for illegitimate drugs being sold on their online platforms.

“People of all ages have been affected by the sale of illegitimate drugs on the internet. This issue needs a targeted intervention to avoid further harm and death that results from this problem. Requiring online platforms to take action when they are notified of illegal activity on their domains will help to reduce the number of domains selling illegitimate drugs,” said NCL’s Director of Health Policy Jeanette Contreras.

The DRUGS Act would require internet registries to take immediate action when they receive notice from trusted notifiers that one of their domain names is being used to sell drugs illegally online. Agencies that are considered “trusted notifiers” include the Food and Drug Administration (FDA), the Department of Justice (DOJ), the Department of Homeland Security (DHS), State Attorneys General, and State Boards of Pharmacy, among others. After receiving a notice, the online platforms would have to suspend the domain from operating, to allow for an investigation before resuming online sales. The domains would have the option to appeal, by providing evidence of lawful operation.  

This legislation is a monumental step in ensuring that online platforms are held accountable for allowing illegal online pharmacies to be created, and shutting down those that already exist and operate. The DRUGS Act is modeled on a successful FDA pilot program, which resulted in the takedown of nearly 30 domain names used to offer illegal opioids online in 2020.

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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.

NEW RESEARCH: CBD companies exploiting academic partnerships for marketing purposes

January 20, 2022

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

Washington, DC—The Journal of Studies on Alcohol and Drugs today released new research that reveals the various tactics cannabidiol (CBD) companies use to thwart the Food and Drug Administration (FDA) review process and assert that their therapeutical claims are backed by science.

The study, The Use of Academic Research in Medical-Cannabis Marketing: A Qualitative and Quantitative Review, illuminates the need for FDA regulatory approval and stronger oversight to address the risks to consumers and patients alike when companies exploit that system. The findings reveal nearly 1,000 health claims touting CBD’s ability to mitigate symptoms or treat mental health, autism, pain, sexual health, AIDS, cancer, COVID-19, and more, providing just a snapshot of the current, unregulated marketing tactics being used to mislead the public.

The research was commissioned by Consumers for Safe CBD, a campaign spearheaded by the National Consumers League and conducted by Data Science Solutions. The research took place in the summer of 2020 and was published today in the Journal.

“It’s important that consumers understand what they’re up against when it comes to the current marketplace,” said Sally Greenberg, Executive Director of the National Consumers League. “Day in and day out we see CBD products promoted by celebrities and ‘health experts’ who have no clue what is truly in the products they push. This research helps give a snapshot of just how many misleading claims are out there and will help consumers better understand how to identify — and know to question — marketing red flags.”

“Unfortunately, many CBD manufacturers talk quite a bit about research, but have rarely engaged in the kind of large-scale randomized controlled trials necessary to establish that a drug is safe and effective,” said Theo Caputi, M.P.H, M.SC. author of the study. “CBD products are flooding the retail marketplace — readily available to consumers — and this review shows a serious need for adequate research and testing to ensure safety of these products and effectiveness for the claims companies are making.”

Most of the top medical marijuana companies analyzed:

  • use the existence of academic partnerships and observational relationships in an effort to legitimize health claims, despite having little to no clinical trial activity;
  • routinely use academic research in marketing strategies (“research as marketing”) to mislead the public; and,
  • evade FDA approval process by creating their own pseudo-approval process, making products appear legitimate, safe, effective, and eligible for insurance coverage for a range of health claims through these “research as marketing” tactics.

“It is alarming to see so many companies purposefully evading the FDA process — the gold standard in consumer protection — and making therapeutic claims with little to no real, clinical evidence,” said Greenberg. “Many of these companies have received warning letters from the FDA, yet these harmful and misleading tactics continue. It’s time for Congress to empower FDA to use its full authority to protect consumers. Consumers for Safe CBD will continue to serve as a watchdog to ensure CBD products are safe and effective.”

The CBD market continues to grow despite the FDA stating that CBD cannot be generally regarded as safe (GRAS) for use in food and beverage products. According to a Statista report, CBD sales in the U.S. reached $4.6 billion in 2020. By 2026, the market is expected to grow to $16 billion. Consumers, through these “research as marketing” tactics, have been led to believe that CBD has both medical benefits and health maintenance effects. However, there is only thorough, scientific-backed proof of medical benefits in the one and only FDA-approved CBD prescription drug product available.

“It is arguably unethical and certainly misleading for commercial entities to use the legitimacy of early scientific research — and the announcement of such endeavors — as a marketing tool,” Caputi added, “In fact, this ‘research’ used — or even simply announced in press releases — is not nearly substantial enough to ensure safety and effectiveness of these products for therapeutic use. We must rely on the rigorous FDA approval process to be sure these products meet the gold standard for safety and efficacy.”

Click HERE to read the full study in the Journal of Studies on Alcohol and Drugs.

To  learn more about the risks of unregulated CBD, visit 4safecbd.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 decisive action by CFPB against fraudulent payments processor

January 19, 2022

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

Washington, DC—The National Consumers League (NCL) today applauded action taken by the Consumer Financial Protection Bureau (CFPB) to hold payments processor BrightSpeed accountable for facilitating payments known to be associated with fraudulent tech support schemes. The Bureau, a critical safeguard for consumers nationwide, has banned BrightSpeed and its founder from participating in multiple financial service industries, including payment processing. Fraudulent tech support scams have been significant source of complaints that NCL receives via its Fraud.org website.

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

“BrightSpeed processed payments for companies that took advantage of victims, especially senior citizens. They continued to serve scammers despite being aware of nearly 1,000 consumer complaints against their clients, as well as multiple inquiries from banks and law enforcement. BrightSpeed is not alone in this; many other financial institutions are also aware that they are being used to facilitate fraudulent activity. Given the massive spike in fraud since the beginning of the pandemic, we must tackle the problem by addressing all entities involved — especially the financial institutions.

“We hope that today’s action by the CFPB reflects a greater shift towards holding not just fraudsters accountable, but also the financial institutions that enable these crimes. Today’s settlement should serve as wakeup call that looking the other way while fraudsters take advantage of financial services platforms will not be tolerated under the Bureau’s new leadership.”

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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 death of Senate Majority Leader Harry Reid

December 30, 2021

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

Washington, DC—The National Consumers League paid its respects this week to the Senator most responsible for the enactment in 2010 of the landmark Affordable Care Act, known also as “Obamacare,” which for the first time in American history made universal health care available to consumers. We thank Senator Harry Reid of Nevada, who died this week, for that critical achievement.

This statement is attributable to NCL Executive Director Sally Greenberg:

The National Consumers League pays tribute — upon his death — to former Senate Majority Leader Harry Reid, whose remarkable legacy includes navigating the adoption of the 2010 Affordable Care Act through the U.S. Senate. Reid credited the lack of health care available he faced growing up for his determination to get the ACA enacted. He noted that “a great nation can’t have upwards of 40 million to 50 million people with no way to go to a hospital or see a doctor.”

Reid recalled how he saved money working at a gas station to buy his mother a set of teeth and the lack of mental health services for his father, who ultimately died by suicide.

Reid also encouraged a young Illinois Senator, Barack Obama, to run for president. Obama credited Reid with enabling the adoption of his broader agenda. Earlier, while serving in the Nevada State Assembly, Reid got enacted a requirement that utility companies pay interest on large deposits they demanded from customers and championed the Taxpayer Bill of Rights.

While in Congress, Reid consistently fought off efforts by President George W. Bush to privatize Social Security; NCL has long opposed the campaign to privatize this sacred program, which was conceived in the Progressive Era by NCL’s early leaders to protect older Americans from dire poverty. In addition, Reid’s federal environmental agenda took Nevada from 67,000 acres of wilderness to more than 4 million acres of new parks and open spaces and as Majority Leader, Reid shut off funding for the Yucca Mountain nuclear waste site — earmarked for Nevada — citing the health and safety risk to his constituents.

Harry Reid’s life was a true American “rags to riches” story. He rose from dire poverty in Nevada, raised with no running water, telephone, or indoor bathroom. He was elected at age 28 to the Nevada State Assembly and came to Washington, where he joined the U.S. Capital Police and attended George Washington Law School at night. Upon his return to Nevada, he headed the state’s gaming commission for five years; Reid is credited with routing out the influence of long entrenched organized crime from the casino industry.

Reid was elected to the U.S. Senate and eventually became Majority Leader. Though he was soft spoken, Reid used his amateur boxing skills to fight for the interests of consumers and workers. He used to say that “I always would rather dance than fight, but I know how to fight.”  Most Americans likely have no idea how important a force for good Senator Reid was, and achieving passage of the ACA was the highpoint of his career.

As Senator Joe Lieberman noted: “Harry Reid managed something that seemed almost unthinkable: he held every single Senate Democrat — 60 of them, at least at the crucial moment — together to vote for a sprawling, unpopular bill that raised taxes, cut Medicare spending, and insured tens of millions of Americans.”

Americans who today have access to affordable, high quality health care owe Senator Reid a huge debt of gratitude. His tremendous skill, persistence, and passion made the ACA a reality. Harry Reid got “health care for all” over the finish line in the Senate. The National Consumers League is honored to pay tribute to this truly great man.

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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 passing of Pension Rights Center Founder Karen Ferguson

December 30, 2021

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

Washington, DC—The National Consumers League mourns the death of lifelong pension rights lawyer and crusader who died Dec. 23, 2021. Ferguson founded the Pension Rights Center in 1976 with $10,000 in seed money from Ralph Nader.

Ferguson brought a deep intellect, kindness, and passion to the complicated field of pension rights. This statement is attributable to National Consumers League Executive Director Sally Greenberg:

We mourn the death of Karen Ferguson, who launched the Pension Rights Center when the landmark Employee Rights Income Security Act of 1974 (ERISA) was in its infancy.  Workers and retirees badly needed a voice to combat the powers of corporate interests who would try to reduce or eliminate pension protections and Karen Ferguson and the Pension Rights Center were that voice. Karen was equally comfortable talking to members of Congress as she was sitting down with workers concerned about losing their pensions. She also knew how to get things done and as a result, achieved signal wins — alongside her dynamic colleague Karen Friedman and devoted board of directors — like the Butch Lewis Emergency Pension Plan Relief Act and the Pension Counseling and Information Program under the Older Americans Act.

The National Consumers League salutes Karen Ferguson’s legacy and mourns her passing.

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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 offers support for Increasing Access to Biosimilars Act (S. 1427)

December 16, 2021

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

Washington, DC—The National Consumers League (NCL) is pleased to support the Increasing Access to Biosimilars Act (S. 1427), as introduced by Senators Michael Bennet (D-CO) and John Cornyn (R-TX). This Act directs the U.S. Department of Health and Human Services (HHS) to launch a pilot program that increases Medicare payments for providers who use biosimilars. Representative Tony Cárdenas (D-CA) introduced a similar bill (H.R. 2869) in the House of Representatives.

Since 2014, the growth in pharmaceutical spending has been primarily driven by increased spending on biologic drugs. Biosimilars demonstrate no clinically meaningful differences in terms of safety, purity, and potency against their FDA-approved biologic counterpart, and are generally 15 percent to 35 percent lower in price. Therefore, biosimilars pose great potential to reduce health care costs.

The Increasing Access to Biosimilars Act would create a new pilot program administered by the Center for Medicare & Medicaid Innovation (CMMI) that aims to encourage physicians to prescribe less expensive biosimilars through shared savings. Shared savings is a payment strategy that offers providers a percentage of any net savings generated in order to reduce health care spending overall.

The following statement can be attributed to NCL’s Health Policy Director Jeanette Contreras:

“This legislation would not only broaden access to cost-saving biosimilars and reduce unnecessary spending on costly biologics, but it could also foster greater competition. In addition, it signals to future participants the viability of the biosimilars market, which is a win for consumers.

NCL believes that well-aligned payment incentives can steer providers toward cost-saving behavior with the overall objective of reducing Medicare expenditures. We strongly urge Congress to pass the Increasing Access to Biosimilars Act as the FDA continues to approve new biosimilars to market at increasing rates.”

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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.

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

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

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

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

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.