NCL applauds proposed FTC rules on MLM and other business opportunities

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Media Contact: Lisa McDonald, Vice President of Communications, (202) 207-2829 

Washington, D.C. – Yesterday, the Federal Trade Commission (FTC) proposed new and updated rules to combat deceptive earnings claims in the multi-level marketing (MLM) industry and, relatedly, business coaching and investment offers. NCL supports the FTC’s rulemakings and urges the incoming Trump Administration to see the initiatives finalized. 

“Working to keep Americans from being ripped-off is a bipartisan issue,” said NCL Vice President John Breyault. “We are glad the FTC is stepping up to protect individuals from being led into debt traps with false promises. The incoming Trump Administration should finalize these rules and bring an end to these unfair and deceptive business practices.” 

When the FTC voted to begin its rulemaking on earnings claims in 2022, the rulemaking moved forward on a bipartisan, 4-0 vote. The 2022 vote to review the Business Opportunity Rule was also a bipartisan, 4-0 vote. Without finalized rules, it is harder for the FTC to secure financial compensation for victims of deceptive MLMs and other similar firms. 

NCL’s joint comments with Consumer Federation of America in response to the 2022 advanced notice of proposed rulemaking on earnings claims 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 www.nclnet.org. 

Statement on the need for the CMS Rule on Coverage of Obesity Medications

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Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

Washington, D.C. – We, the undersigned organizations, are enthusiastically supportive of the proposed rule by the Centers for Medicare & Medicaid Services (CMS) to align coverage policy to reflect the prevailing medical consensus that obesity is a chronic disease. We urge the incoming administration to finalize this policy through the rulemaking process. By extending access to obesity medications for people living with obesity who lack access to comprehensive evidence-based care in Medicare and Medicaid, the proposed CMS rule would address an urgent health crisis and leading contributor to the “Unhealth” of Americans. If action is not taken, the total number of adults with overweight or obesity will reach 213 million. To achieve making America healthier, obesity must be addressed, treated and managed effectively.

Medicare Part D’s prohibition of coverage for “weight loss” medications is a major barrier for older Americans and those living with disabilities, and many dual eligible beneficiaries, to receiving medically necessary, safe, and effective FDA-approved pharmacotherapy to treat obesity. Medicare’s current categorization and restriction is outdated. It does not align with current medical evidence, standards of care or the understanding of the disease.

The CMS proposed rule would require coverage for obesity medications under Medicare and Medicaid by acknowledging obesity as a chronic condition. We wholeheartedly agree with the rule’s proposal to reinterpret these medications for the treatment of obesity, that would provide coverage under Medicare and Medicaid.

Obesity is a treatable chronic disease that plays a major factor in many other conditions such as type 2 diabetes, hypertension, heart disease, fatty liver disease, kidney disease, lipid disorders, certain cancers, sleep apnea, arthritis, and mental illness. The treatment of obesity requires a comprehensive approach including administering intensive behavioral therapy (IBT) and bariatric surgery under Medicare Part B and providing Medicare Part D coverage for Food and Drug Administration (FDA) approved obesity medications.

The obesity epidemic has had a negative impact on our nation’s health and economy. Among older adults (aged 60+), the prevalence of obesity is 42.8 percent, similar to the level among younger and middle-aged adults. More than 20 percent of the population will be 65 years of age or older by 2030, up from 15 percent today, highlighting the importance of addressing obesity among older Americans. Among Medicaid beneficiaries, the prevalence of obesity is 38 percent, while the prevalence of overweight and obesity is 70 percent among Medicaid adults.

Without treatment Medicare and Medicaid beneficiaries with obesity risk further health deterioration and an increased likelihood in the onset of complications including obesityrelated cancers, type 2 diabetes, and end stage renal disease. Additionally, people with
severe obesity have a 48 percent higher risk of physical injury including falls which lead to higher costs and mortality rates.

The new administration must take action to address this crisis, by allowing Medicare and Medicaid to offer comprehensive obesity care for the millions of Americans who need these services and treatments. This action would improve the health of individuals before they enter the Medicare program, thereby supporting better health and reducing long-term costs.

A Philip Randolph Institute
Academy of Nutrition and Dietetics
Alliance for Aging Research
Alliance for Patient Access
Alliance for Women’s Health and Prevention
American Academy of Physician Associates
American Association of Clinical Endocrinology
American College of Occupational and Environmental Medicine
American Diabetes Association
American Gastroenterological Association
American Kidney Fund
American Liver Foundation
American Medical Women’s Association
American Psychological Association Services
American Society for Metabolic and Bariatric Surgery
American Society for Nutrition
Association of Diabetes Care & Education Specialists
Bone Health & Osteoporosis Foundation
California Black Health Network
California Chronic Care Coalition
CancerCare
Caregiver Action Network
Center for Patient Advocacy Leaders (CPALs)
Choose Healthy Life
Chronic Care Policy Alliance
Color of Gastrointestinal Illnesses
ConscienHealth
Crohn’s & Colitis Foundation
DCM Foundation
Diabetes Leadership Council
Diabetes Patient Advocacy Coalition
Endocrine Society
Fatty Liver Foundation
Gerontological Society of America
Global Liver Institute
HealthyWomen
ICAN, International Cancer Advocacy Network
League of United Latin American Citizens (LULAC)
Liver Coalition of San Diego
Looms For Lupus
Lupus and Allied Diseases Association, Inc.
Lupus Foundation of America
MacDonald Center for Nutrition Education and Research
MANA, A National Latina Organization
Michigan Academy of Nutrition and Dietetics
Missouri Chapter of the American Academy of Pediatrics
Missouri Psychological Association
Movement is Life
National Alliance for Caregiving
National Asian Pacific Center on Aging (NAPCA)
National Association of Hispanic Nurses
National Black Nurses Association, Inc
National Caucus and Center on Black Aging
National Consumers League
National Council on Aging
National Hispanic Council on Aging
National Hispanic Health Foundation
National Hispanic Medical Association
National Kidney Foundation
National Psoriasis Foundation
Nevada Chronic Care Collaborative
Obesity Action Coalition
Obesity Care Advocacy Network
Obesity Medicine Association
PAs in Obesity Medicine
RetireSafe
Society for Women’s Health Research
Society of Behavioral Medicine
STOP Obesity Alliance
The American Society for Preventive Cardiology
The Mended Hearts, Inc.
The Obesity Society
WomenHeart
YMCA of the USA

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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 www.nclnet.org.

Statement on the Death of President Jimmy Carter, Sally Greenberg, CEO

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Photo Credit: LBJ Presidential Library, Austin, Texas, 2014.

January 1, 2025

The National Consumers League extends condolences to the family, friends, and community of former President Jimmy Carter upon his death this week. In addition to being an honest and effective Commander in Chief and humanitarian who expanded access to housing for low-income families through his work on Habitat for Humanity, President Carter should also be remembered as a great consumer champion.

During his presidency, Mr. Carter championed consumer protection in a variety of ways. He appointed labor and consumer champion Esther Peterson, who also served as president of the National Consumers League, to head the White Office of Consumer Affairs. Like President Lyndon Johnson (LBJ)  before him, who first named Peterson to the post of Special Adviser to the President Jimmy Carter understood that consumer rights permeate citizens’ experiences with companies and with government.

Unlike his processor, Mr. Carter gave Mrs. Peterson a staff and access to him personally in the Oval Office. As such, Mr. Carter elevated consumer protection far beyond LBJ’s decree. Along with re-appointing Esther Peterson, Carter issued a historic decree in April of 1978, “Memorandum from the President on Consumer Affairs,” the first of its kind, directing the heads of every government agency to take a series of steps to prioritize consumer protection. 

Notably, Mr. Carter stated that “the Agency for Consumer Advocacy is mainly designed for participation in very large administrative proceedings; it is only one of a number of steps which will better protect the consumer.”

On a personal note, I had the honor of meeting President Carter in 1978, when he appointed my aunt, Geri Joseph, to serve as Ambassador to the Netherlands. I was lucky to be able to attend her swearing-in ceremony in the Oval Office. I found him to be kind and charming; despite a number of pressing matters, he took the time to introduce himself to every member of our family who was gathered for the occasion. 

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NCL hails FTC ban on hidden junk fees in ticketing and lodging

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December 17, 2024

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

WASHINGTON, DC – Today, the FTC announced its final rule banning hidden junk fees in live-event ticketing and short-term lodging. NCL has long advocated for such a ban at the federal level and applauds the Commission for enacting this critical consumer protection regulation.

“Sellers in these industries can no longer lie to consumers to make a buck. The FTC’s final rule is a common-sense policy that will make the ticketing and lodging marketplaces fairer for everyone involved,” said NCL Vice President John Breyault. “The price that’s advertised is the price that you should pay.”

This single rule by the FTC will result in billions of dollars in savings for consumers. A non-partisan federal study of the ticketing industry found that primary and secondary ticket sellers charged fees averaging 27% and 31%, respectively, of the ticket’s price. Regarding lodging, the Council of Economic Advisers estimated that consumers lose $3.3 billion annually to hotel junk fees.

Further reading:

2024 public comments of the National Consumers League and 51 other organizations supporting the FTC’s proposed rule to ban junk fees

2024 public comments of the Break Up Ticketmaster Coalition (NCL and 14 other organizations) supporting the FTC’s proposed rule

2023 testimony of NCL’s CEO before the United States Senate on the need to prohibit junk fees

2023 public comments of the National Consumers League and 41 other organizations supporting the FTC’s advanced notice of proposed rulemaking on junk fees

2022 public comments of the National Consumers League supporting a petition for rulemaking to ban drip pricing, which resulted in this final rule

2018 public comments of the National Consumers League and the Sports Fans Coalition urging FTC intervention in the ticketing industry

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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 www.nclnet.org.

NCL Calls on FDA to Ban Red No. 3 From the Food Supply

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Contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

Washington, DC – The National Consumers League anxiously awaits FDA’s final action on a citizen petition to ban Red No. 3 from the food supply, something that has been too long in coming. Red No. 3 is a petroleum based color additive known to cause cancer in laboratory animals and is now banned for used in cosmetics and externally applied drugs. Yet, the food dye is still widely used in foods and beverages consumed by children who are more susceptible to the effects of chemicals in foods. The bigger problem is that the FDA has been impeded for years in taking action against additives like Red No. 3 because Congress has not given the agency the same authority as the Environmental Protection Agency has to make safety decisions about chemical safety, nor has it appropriated the funds for the FDA to respond effectively. At a time when more than 10,000 food chemicals are allowed in foods and beverages, it is time for Congress to make food additive safety a priority and give the FDA the authority it needs.

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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 www.nclnet.org.

FTC’s Win in Lawsuit Against the Makers of Dietary Supplement Prevagen

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December 11, 2024

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

WASHINGTON, DC – The National Consumers League commends the Federal Trade Commission for its successful action against Quincy Bioscience, the makers of Prevagen, a supplement marketed as improving memory. By holding companies accountable for deceptive health claims, the FTC continues to protect consumers—particularly older Americans—from misleading marketing. Quincy Bioscience is just one of many dietary supplement manufacturers with a long history of making false claims, and we are so grateful to the FTC for pursuing this case successfully.  It should serve as a cautionary tale to all companies who engage in false and deceptive marketing and advertising.  This victory reaffirms the importance of rigorous scientific evidence in health-related advertising and demonstrates the FTC’s unwavering commitment to consumer protection.

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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 www.nclnet.org.

The US Department of Education’s Role is Critical for Consumers

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December 9, 2024

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

WASHINGTON, DC – NCL rejects proposals to abolish the U.S. Department of Education (ED) and urges Members of Congress to strengthen the agency and its critically important role for consumers.

ED provides irreplaceable services for our public schools, alongside programs administered by other agencies like Head Start at the Department of Health and Human Services and the National School Lunch program at the Department of Agriculture. Despite making up only 3% of the federal budget, ED plays an outsized role in supporting K-12 and college education. Many underserved schools across the nation rely on ED’s Title I funding to continue operating a full range of educational and care services.

The US has long recognized a need for a limited but important federal role ineducation. Indeed, the original Department of Education was created in 1867 to collect information on schools and teaching that would help the States establish effective school systems. ED has evolved and changed with the times, but this early emphasis on getting vital information to teachers and education policymakers continues into the present.

Moreover, ED supports the essential role played by our public schools across America, schools that teach reading, writing, math and science, and are free to all students. The public school system represents the best of American democracy, fostering civic engagement and opportunity for all.

ED also pursues its twin goals of access and excellence through programs that cover every area of education and range from preschool education through postdoctoral research: including civil rights protections, Title IX rights, and  over $150 billion in new and consolidated loans annually. Without these loans, millions of students would not have access to higher education, so ED plays a truly essential consumer support role.

Finally, while ED’s programs and responsibilities have grown substantially over the years, the Department has the smallest staff of the 15 Cabinet agencies and has suffered funding cuts from Congress.

NCL calls on leaders across the political spectrum to reject proposals that would jeopardize the future of our nation’s children and instead focus on improving, refining, and supporting ED’s many positive contributions. NCL continues to advocate for policies to minimize the costs associated with seeking higher education, including legislation to bring the US in line with other developed nations by making college affordable for all.

Further reading

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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 www.nclnet.org.

NCL applauds DOT advancement of delay compensation rules

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December 5, 2024

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

WASHINGTON, DC – Today, the U.S. Department of Transportation (DOT) issued an advanced notice of proposed rulemaking (ANPR) on compensating travelers for significant flight delays and cancellations. The Department is exploring remedies for passengers who are affected by disruptions that occur due to reasons within an airline’s control. Should DOT finalize a rule requiring cash compensation alongside food, lodging, and ground transportation when necessary, the U.S. would join other jurisdictions that have had similar regulations for decades, like the European Union and Canada.  

“Passengers shouldn’t bear the costs of poor business performance. Especially if you’re traveling with a family, expenses add up quickly for last-minute rebooking and accommodations when an airline has a meltdown,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “In taking this step, the Department is continuing its important work to protect airline travelers. We look forward to supporting DOT’s rulemaking effort.” 

NCL has supported a delay compensation mandate for years. In recent airline meltdowns, it has become commonplace for families to lose significant sums of money in out-of-pocket expenses, with reports highlighting losses of $2,000 to $7,500 in costs associated with rebooking flights, finding lodging, and contending with price gouging. U.S.-based air carriers already pay compensation for significant delays and cancellations when servicing certain overseas routes, like those in Europe, but do not provide those same protections when flying domestically.  

Additional reading: 

Consumer groups file amicus brief supporting DOT’s airline fee transparency rule 

NCL urges Congress to strengthen consumer protections against aviation cyber incidents, including delay compensation 

Advocates call on Biden Administration to act on airline passenger protection mandates 

NCL applauds Congress’s passage of aviation consumer protection improvements 

Full list of advocates’ legislative priorities for aviation consumer protection 

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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 www.nclnet.org.

The National Consumers League (NCL) Stands Firm Against Threats to the Consumer Financial Protection Bureau

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December 3, 2024

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

WASHINGTON, DC – As the nation’s oldest consumer advocacy organization, the National Consumers League (NCL) is outraged by recent calls to eliminate the Consumer Financial Protection Bureau (CFPB), a vital agency safeguarding Americans from corporate exploitation, fraud, and abuse. The reckless suggestion to “cancel” the CFPB by Elon Musk, is a direct attack on consumer protections.

“Eliminating the CFPB would leave U.S. consumers defenseless against predatory practices, corporate greed, and fraudsters,” says National Consumer League’s John Breyault, VP of Public Policy, Telecommunications, and Fraud. “Without a strong CFPB, deception in the marketplace will flourish, harming not just consumers, but also honest businesses striving to treat their customers with fairness and respect.”

The CFPB, created in the wake of the 2008 financial crisis through the Dodd-Frank Wall Street Reform and Consumer Protection Act, is a lifeline for millions of Americans. Under the leadership of Director Rohit Chopra, the CFPB has delivered $20 billion in consumer relief. The watchdog agency has proven indispensable, delivering multiple wins for everyday Americans, including:

  • Wells Fargo Settlement: A historic $1 billion resolution following fraudulent account-opening practices.
  • Medical Debt Protections: Proposed measures to eliminate medical debt from credit reports, potentially impacting $49 billion in reported debt.
  • Reducing Fraud on Payment Apps: Implemented protections to reduce fraud on Digital Payment App platforms like Apple Pay and Venmo.

The NCL unequivocally opposes any effort to dismantle the CFPB, as doing so would expose Americans to fraudsters, discriminatory lending, and exploitative financial practices. Eliminating the bureau would not only reverse years of progress but would also send a dangerous message to those likely to break the law that corporate profits matter more than consumer protections.

The National Consumers League stands firm: We will not let consumer protections be sacrificed. Americans deserve fairness, transparency, and accountability. We call on all policymakers to stand with consumers and defend the CFPB.

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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 www.nclnet.org.

Millions would benefit as Biden Administration expands coverage for anti-obesity medications under Medicare and Medicaid

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November 26, 2024

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

WASHINGTON, DC – The National Consumers League applauds the action by President Joe Biden to allow millions of Americans on Medicare and Medicaid to have coverage for new and very effective anti-obesity medicines (AOMs), thereby removing one of the biggest obstacles impeding access to quality obesity care in the country.

At a time when obesity has become the nation’s most widespread chronic disease, it worsens the outcomes of more than 230 other chronic diseases, and is responsible for an estimated 400,000 premature deathsannually, the proposed rule issued by the Centers for Medicaid and Medicare Services (CMS) has the potential to save lives and improve the health outcomes of 7.4 million Americans. This includes approximately four million adult Medicaid enrollees who would gain new access to anti-obesity medicines and an estimated 3.4 million Medicare beneficiaries whose treatment with AOMS would be covered, reducing their out-of-pocket costs by as much as 95 percent.

The cost of new anti-obesity medicines is an obvious concern to organizations like NCL, the public health community, and policymakers. However, CMS’s proposed expansion of Medicare and Medicaid coverage for a new class of injectable GPL-1 (glucagon-like peptide-1 receptor) agonists that can achieve a substantial weight loss (up to 20 percent) represents an important investment in the improved health of Americans.

“Today’s proposed action is a major step forward in ensuring that adults with obesity get the same quality care and access to treatments as those with the 230 chronic conditions where obesity is a significant factor,” says Nancy Glick, National Consumers League Director of Food and Nutrition Policy. “Today, only 10 percent of people with obesity get help from medical professionals, meaning the disease remains largely undiagnosed and undertreated. If CMS’s proposed rule is implemented, it will go a long way towards closing this obesity treatment gap, especially since health insurance companies closely align coverage decisions with Medicare policy.”

In January 2024, NCL worked with the National Council on Aging and leading obesity experts to issue the first Obesity Bill of Rights for the nation, which establishes eight essential rights so people with obesity will be screened, diagnosed, counseled, and treated according to medical guidelines. The Right to Coverage for Treatment is one of these essential rights and will become a reality for millions of Americans on Medicare and Medicaid if CMS’s proposal goes into effect.

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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 www.nclnet.org.