Spooky subsidies – National Consumers League

By Teresa Green, Linda Golodner Food Safety & Nutrition Fellow

Halloween and all of the sweet treats American families buy at this time of year are a reminder of one of many critical issues Congress must address: U.S. sugar program reform. Costing American consumers an extra $3.5 billion a year in higher grocery bills, the sugar program, which began during the Great Depression, is in dire need of reform.

The National Consumers League (NCL ) has a history of opposing agricultural subsidies. We have opposed both the sugar program, which benefits a small number of growers, and dairy subsidies. The main reason we oppose these programs is that they result in higher prices for consumers. The U.S. sugar program costs the average family of four $40 per year. This may seem like an insignificant amount, but when multiplied by 300 million Americans, the total cost to U.S. consumers is $3.5 billion every year.

By artificially raising the U.S. price of sugar, the program acts as a hidden tax on consumers, impacting all products that use sugar. These items include the obvious things like candy, cookies and other treats, but also less obvious products such as bread, tomato sauce, peanut butter and frozen veggies.  Furthermore, this “hidden tax” is also regressive, because low-income consumers spend a higher percentage of their income on food.

NCL is a proud member of the Coalition for Sugar Reform. The Coalition is made up of a diverse group of companies and organizations, which are united in opposing the costly U.S. sugar program and are urging policymakers to reform it.

The Coalition for Sugar Reform has been working hard to reform the program through the farm bill, an important piece of legislation that is generally updated every five years.  This year, the bill was not rewritten due to partisan squabbling on the Hill.  There are indications that it will be addressed either in the “lame-duck” session or early on in the new Congress.  Either way, NCL hopes that Congress will take a hard look at the sugar program and enact much-needed reform.

Get ready for Frankenstorm scams – National Consumers League

By John Breyault, NCL Vice President of Public Policy, Telecommunications and Fraud

Many consumers on the East Coast are battening down the hatches in preparation for the so-called “Frankenstorm” that is on track to pummel the Mid-Atlantic and Northeast states this weekend and early next week. Once the storm passes, however, a new type of threat is sure to pop up – scam artists.

After practically every natural disaster, fraudsters pop up with cons ranging from charity scams to bogus home-repair offers.  Before your power goes out, be sure to check out our consumer guides on these two scams:

Top 10 red flags of home repair scams

Tips for spotting charity scams

Bonus! If you’re considering escaping to somewhere with normal weather for a little R&R, check out our consumer guide to travel scams before you leave.

Finally, if you’ve fallen victim to or been approached by any scam artist, be sure to report it to NCL’s Fraud Center at www.fraud.org.

Happy Food Day! – National Consumers League

By Teresa Green, Linda Golodner Food Safety & Nutrition Fellow

Today marks the celebration of the second annual Food Day, a day hosted by the Center for Science in the Public Interest (CSPI). This year, food day will be celebrated by people across the nation who have organized almost 3,000 events. These events will range from cooking classes to food flash mobs to talks on important food topics. Food Day has five main focuses.

  1. Promote safer, healthier diets: Increasingly, our nation struggles with the epidemic of obesity. Two-thirds of adults and one-third of children are considered overweight or obese, and these numbers are only predicted to rise. Every year we spend approximately $147 billion on healthcare for diet-related diseases. Only by promoting healthy diets and educating both children and adults about what healthy eating looks like.
  2. Support sustainable and organic farms: Throughout the latter half of the 20th century, agriculture has become increasingly mechanized and large-scale. The use of pesticides has also increased. These changes have in turn inspired the move towards organic agriculture and sustainability which emphasize practices which utilize fewer pesticides and will cause less damage to the earth. These sustainability measures are particularly important given predicted increases in population over the next couple of decades.
  3. Reduce Hunger: Near constant discussion of the obesity epidemic can obscure the issue that hunger still plays in this country. An estimated 50 million Americans are “food insecure,” meaning they are close to hunger. Additionally, the Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps) provides, on average, only $4.30 per person per day.
  4. Reform factory farms to protect the environment and animals: Confined animal feeding operations (CAFOs), large scale farms that house tens of thousands of animals at a time, have an enormous impact on the environment. These establishments produce massive amounts of waste, which is often spread on neighboring fields and can seep into the environment. Additionally, CAFOs often prophylactically treat animals with antibiotics to prevent diseases that result from crowded conditions. The overuse of antibiotics can lead to the development of antibiotic resistant bacteria which in turn can be transmitted to humans, causing devastating illnesses.
  5. Support fair working conditions for food and farm workers: While farm work is grueling and difficult, the pay is minimal and individuals who labor in the fields have salaries that vary from $17,000 to $24,000, depending upon the state. These workers are also not protected by the Fair Labor Standards Act, which means they are not guaranteed basic protections other workers are afforded, including child labor protections. It is not uncommon for children as young as 12 to work 10- and 12-hour days, performing back-breaking work, harvesting fruits and vegetables in 100-degree heat.

Food Day should be an important day for all Americans because all of us need food to survive. Food cuts across cultural and economic boundaries, uniting us. The creation of a food system that is more fair and sustainable is something that we should all aspire to.

‘Who would fall for that?’ You’d be surprised – National Consumers League

By Sally Greenberg, NCL Executive Director

NCL runs Fraud.org and talks to 15,000 consumers every year, most of whom have been scammed or cheated in some way. When we speak out about these scams we often hear “how could they have been so stupid?” or “who would fall for that?” Well, con men and women have been around since the dawn of humankind and they are very good at what they do. The reality is that even the most sophisticated individual, if they don’t proceed with caution, can become a fraud victim. The cautionary tale below, currently in the news, demonstrates this.

Broadway producer Ben Sprecher had his heart set on mounting “Rebecca: The Musical,” based on a classic novel by Daphne du Maurier. A 46-year-old Long Island “investor” and former stockbroker named Mark Hotton came forward agreed to raise $4.5 million. In the process, he allegedly fabricated emails and correspondence from four investors whom he said had put up the money for the show. In reality, these investors didn’t exist.

The producers reportedly paid Hotton $60,000, including an advance to pay for his supposedly taking one of the fictional investors on a safari. Hotton used fake Web sites and domain names, then claimed one of the investors who had agreed to put down $1.1 million had died unexpectedly of malaria on the safari. Meanwhile, of course, Hotton raised none of the $4.5 million.

When the producers met with Hotton initially, they were convinced he was legitimate because he held the Series 7 license required to be a stockbroker. In fact his license had lapsed. Meanwhile, Hotton had earlier defrauded a Connecticut real estate firm in a similar scheme, and had been charged with inducing another company to advance him $3.7 million to buy a portion of the purported accounts receivable of a business run by his Hotton and his wife. Prosecutors alleged all of this in Hotton’s indictment in federal court.

So how could these producers have potentially protected themselves from this serial con man?

  1. Done a background check for criminal or civil violations before sending him a dime of their money
  2. Made sure his stockbroker license was in good standing
  3. Asked to talk with the investors personally
  4. Been suspicious of the claim that Hotton needed to take an investor on a safari!

More than anything, this story shows that even a sophisticated Broadway producer can be vulnerable to an experienced con man. But there were some red flags and we advise consumers, don’t ignore your instincts. Above all, trust but verify!

 

LifeSmarts DC Training Camp a success – National Consumers League

By Brandi Williams, LifeSmarts Program Manager

Reaching out to teens to get them excited about consumer education and personal financial literacy was our goal when the LifeSmarts team began developing LifeSmarts Training Camp in 2011. Training Camp was designed as an educational field trip to help students explore real-world applications of consumer knowledge, through games, activities, and a live LifeSmarts competition.

In January, the National Consumers League hosted the first Training Camp in the District of Columbia, and it was received with such success that we immediately began planning for a second DC-area camp to kick off the 2012-2013 program year.

This last Tuesday, NCL held a second District of Columbia LifeSmarts Training Camp! Hosted by our friends at Google Washington, DC, 12 teams of students and teachers from across the area joined us for full day of fun! Students and teachers spent the day working together in teams of five students and one coach on topic-focused activities and gained points and prizes throughout the day. Teams waited eagerly for the awards ceremony to discover which teams would be recognized for having the highest team scores.

The first-place prize went to McKinley Technical High School, coached by Melanie Wiscount. The team received movie passes, LifeSmarts t-shirts and flashdrives, and a pizza party, and the coach received a $100 gift card.

Prizes were also awarded to the second-place team, also from McKinley Technical High School, coached by Sarah Elwell, and the third place team, from Eastern High School, coached by Ricardo Neal.

Judges helped us determine our Spirit Award winner — the team that best showcased team spirit and good sportsmanship — which was awarded to the team from Archbishop Carroll High School, coached by Sonya Wilson.

Additionally, educators were entered into a random drawing for two $100 gift cards, which were ultimately awarded to coach Egheosa Ibginoba from Coolidge Senior High School and Chantell Moses from Theodore Roosevelt Senior High School.

There was so much energy and excitement throughout the room for the entire day! You can find photos of excited and engaged students by visiting and becoming a fan on Facebook. Students and teachers walked away from Training Camp excited about the knowledge they’d gained and ready to dive into the content of the LifeSmarts program.

Upcoming Training Camps are scheduled for November 9, 2012 in Denver, CO and January 5, 2013 in Atlanta, GA.  If you’re interested in joining, either with a team or as our guest, don’t hesitate to contact us. We’d love to see you there!

Stock up on Union-made treats for Halloween fun – National Consumers League

Later this month, children across the country will cheerfully announce their presence at doorways hoping to receive sweet treats. While Halloween certainly belongs to kids, we adults get to make some decisions too. This year, advocates are calling on parents to be smart about the candy they purchase and hand out, find out if it’s made by unionized workers who are paid a fair wage.

A few labor-friendly candy manufactures include Nestle, Ghiradelli Chocolates, Hershey, Gimbals Fine Candies, Just Born, Necco, Nabisco, and Keebler.

At Union Plus, a Web site established by the AFL-CIO to provide consumer benefits to members and retirees of participating labor unions, consumers can view a list of approved candy choices provided by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM); snack foods by members of the United Food and Commercial Workers (UFCW); or fruit and nuts from members of the United Farm Workers of America (UFW).

“NCL is happy to join with union allies and working families to encourage consumers to vote with their pocketbooks and support worker-friendly candy manufacturers this Halloween,” said Sally Greenberg, NCL Executive Director.

Backlash against healthy school lunches going too far – National Consumers League

By Sally Greenberg, NCL Executive Director

Last week, the New York Times featured a front-page story about the new school lunch program, which replaces fried food, French fries, burgers, pizza, and chicken fingers with increased fruits and vegetables. The article focused on how the program was causing kids to toss food in the trash bin. Indeed, a federal law, the Healthy, Hunger-Free Kids Act of 2010 set a standard for healthier foods in school lunches. The Times article was incendiary in my opinion. The photograph splashed on the front page showed several plates of lovely green lettuce discarded in the trash bin at the end of the cafeteria line.

The article raised several serious concerns that call out for a response. One billion kids throughout the world are deprived of food, shelter, and clean water; 200 million are chronically undernourished. They would be grateful for a nutritious, balanced school lunch that provided them 850 calories, an amount many don’t see in an entire day. Honestly, where will it end? Kids are making videos showing themselves collapsing from hunger. In the hit song “We Are Young” by Fun, one student on the video sings, “My friends are at the corner store, getting junk so they don’t waste away.”

Secondly, fresh fruits and vegetables are a luxury that should be coveted, not trashed. The Times article makes much out of the fact that school lunches have become more expensive as a result of these changes – how much more expensive? They now cost a whopping $2.60 cents. 850 healthy calories for $2.60 cents; Sounds like an incredible bargain to me. And there are subsidies for those kids who can’t afford the $2.60. Additionally, the government recently approved an increase in the amount it reimburses schools for meals, provided those schools implement the new guidelines.

Third, childhood obesity is an epidemic in America. The percentage of overweight children in the United States is growing at an alarming rate, with 1 out of 3 kids now considered overweight or obese. Too many kids are used to eating calorie-laden, fast food options—including pizza and chicken nuggets in school lunch—that are high in fat, sugar and sodium. We should be celebrating, not attacking, the Healthy Hunger Free Kids Act because it offers an alternative to these kids. While the school lunch program was established to deal with the endemic problem of childhood hunger—a problem which has by no means been solved—the bigger issue today is the rising tide of obesity. Scientists now estimate that children of this generation will be the first in history to have a lower life expectancy that their parents. Obesity plays a major role in this frightening development.

Fourth, what this article really illustrates is the importance of teaching children good nutrition early in life. The Web site KidsHealth suggests teaching kids early to eat and enjoy fruits and vegetables. The site notes that “Kids, especially younger ones, will eat mostly what’s available at home. That’s why it’s important to control the supply lines — the foods that you serve for meals and have on hand for snacks.” Exactly. KidsHealth recommends working fruits and vegetables into the daily diet. If you don’t teach kids to enjoy these healthy options at an early age, lettuce on the lunch tray won’t look appealing. But unless parents teach kids that salads and fruits and vegetables are not only healthy but can also taste really good, kids won’t develop a taste for these foods. As a result, they land in the garbage bin.

At the end of this blog is a list of suggestions to help parents foster good eating habits for their children. They are common sense suggestions that, if followed by American families, would not result in teenagers tossing perfectly good lunch offerings into the trash because they’ve been raised to think French fries, pizza and chicken nuggets are the only desirable lunch options. I think the New York Times did a disservice to the cause of improving the health and nutrition of our nation’s teens by sensationalizing this issue.

Follow these basic guidelines:

  • Work fruits and vegetables into the daily routine, aiming for the goal of at least five servings a day. Be sure you serve fruit or vegetables at every meal.
  • Make it easy for kids to choose healthy snacks by keeping fruits and vegetables on hand and ready to eat. Other good snacks include low-fat yogurt, peanut butter and celery, or whole-grain crackers and cheese.
  • Serve lean meats and other good sources of protein, such as fish, eggs, beans, and nuts.
  • Choose whole-grain breads and cereals so kids get more fiber.
  • Limit fat intake by avoiding fried foods and choosing healthier cooking methods, such as broiling, grilling, roasting, and steaming. Choose low-fat or non-fat dairy products.
  • Limit fast food and low-nutrient snacks, such as chips and candy. But don’t completely ban favorite snacks from your home. Instead, make them “once-in-a-while” foods, so kids don’t feel deprived.
  • Limit sugary drinks, such as soda and fruit-flavored drinks. Serve water and low-fat milk instead.

Panic in the health care system caused by cheap alternatives – National Consumers League

By Sally Greenberg, NCL Executive Director

It appears that a cheaper alternative to expensive, federally regulated pain medication is now causing panic in the health care system. I first read about this story of injectable pain medication carrying a fungus that causes meningitis in the Wall Street Journal last week. I scanned the story and handed it to our health care associate and said “want to read something scary? Take a look at this.”

Totally innocent patients – the Centers for Disease Control estimates possibly 13,000 patients – who trusted their physicians and their medications – were administered doses of the drug and as a result may have been exposed to a contaminated steroid compound used for back treatments linked to a strain of fungal meningitis. As of October 10, the death toll is now at 12 with 137 cases of meningitis.

Here’s the thing – federal regulators at the FDA oversee the safety of pharmaceutical company drugs. Yes, their record is not perfect, but they are required to maintain very careful records and oversight of their production facilities. But a compounding center, like the producers of this pain medication, is regulated like a pharmacy, by the state, and the regulations are far more lax.

States cite several reasons why they don’t require compounding pharmacies to adhere to more strict industry-created guidelines. The higher costs and the need to conduct more frequent monitoring and sampling of the work areas are the most commonly cited reasons by compounding pharmacies for not complying.

The latest news on this outbreak suggests the lack of quality control is astounding. The New York Times reported that federal inspectors examined the steroid solution created by New England Compounding Center and “found a sealed vial of the steroid afloat with so much foreign matter that it could be seen with the naked eye,” later discovering that “the particles were a fungus.”

According to an article from Reuters, two House Democrats have announced plans to introduce new legislation to strengthen FDA oversight and protect consumers. Democrats in the House and Senate have also called for congressional investigations and hearings.

So 12 patients have died and others are clinging to life because, it appears, that the New England Compounding Center operated in a slipshod manner, out of the watchful eye of competent regulators. Everyone cries “where are the government safeguards and regulators when we need them?” Exactly. This kind of outbreak is predictable when the focus is on cutting costs and not maintaining extremely careful controls over safety of the manufacture and handling drugs. This case reminds us why groups like NCL insist that sensible and strong regulation is needed to protect consumer safety, health and wellbeing, whether it’s in drug manufacturing or doctors and hospitals. Without it, we get the health care crisis created by New England Compounding Center’s shoddy practices and the consumer or patient, in the end, always pays the price.

Where’s that scalpel?!?! New technology could reduce number of surgical items left in patients – National Consumers League

Every year 4,000 patients end up with “retained surgical items” left in their bodies after surgery, the vast majority are sponges used to soak up blood. These “retained” items can cause lifelong distress and discomfort. New technology and sponge counting methods are available to make it easier to address the problem, but hospitals are resisting. Dr. Verna Gibbs, a professor of surgery at the University of Calfornia, San Francisco, is director of “NoThing Left Behind” a national surgical patient safety project. The New York Times recently reported that all sorts of tools are left in patients by mistake – not only sponges, which account for 2/3 of the left items, but clamps, scalpels, and even scissors!

The new technologies include radio-frequency tags, which tracks use of sponges with a tiny radio frequency tag. When the operation is complete, a detector alerts the surgery team if any sponges are inside the patient and is very effective in spotting things left behind. Another tracking system relies on bar codes for every sponge, but apparently, according to the Times, fewer than 1 percent of hospitals employ it. One doctor quoted in the article was sued before he became an advocate of electronic tracking, and now he won’t do surgery without the technology at work to make sure he and his team don’t leave any “retained’ items inside patients. Why don’t more hospitals use this technology? “In my heart, I think it comes down to hospitals not wanting to spend the extra 10 bucks,” he told the Times. That’s troubling, especially when $10 per operation cost for the added technology could save millions in malpractice costs.

Professor Gibbs says technology should be used in combination with other methods for accountability among surgery teams. Sure, the whole team must be involved in making sure items are not left inside patients, but technology can help a lot. Hospitals should be adopting it across the board because it’s the most foolproof way – in a system full of potential human errors – to protect patients. It’s that simple.

NCL honoring Linda Hilton with Florence Kelley Award – National Consumers League

At Crossroads Urban Center in Salt Lake City, Utah for the past 14 years, Linda Hilton has served in a dual position. Her two posts include Director of Community Outreach and Director of Coalition of Religious Communities (CORC), a statewide interfaith social justice advocacy group with members from 17 diverse faiths founded to lift the state’s sales tax on groceries. Through Hilton’s efforts, CORC has helped to repeal more than half of the state sales tax on food, which hit those with the lowest incomes the hardest, and continues to push for complete repeal. Through this coalition, Hilton has led efforts to provide food to the hungry and advocated for better access to health care for the poor.

In 1999, CORC launched a campaign to regulate the booming payday loan industry, which operated in Utah with few restrictions or accountability. Hilton blew the whistle on a Utah-based credit union that was making payday-type loans, leading to an investigation by the national trade press; the loan program was ultimately discontinued. Hilton also co-authored a manual on local zoning and ordinances to curb payday lending.

Hilton’s advocacy includes working for funding of critical needs for low-income and homeless residents of Utah, fairer tax rates for low-income citizens, and to reverse a Utah law prohibiting cities and towns in the state from enacting “living wage” requirements. She speaks frequently to community and religious groups about the struggles of low-income and homeless families; she trains students and members of faith communities to advocate for low-income citizens; and she conducts community workshops on the need for increased wages for the working poor.

Born and raised in Salt Lake City, Hilton is the recipient of a number of local awards, including the Church Women United, United Nations Office, Human Rights Award for social activism in Utah. Hilton is passionate about volunteerism and social justice, and has made an impressive career out of advocating for those who cannot speak for themselves. She embodies perfectly the spirit of the namesake of this award, NCL’s leader, Florence Kelley, who, like Hilton, tirelessly championed the rights of the working poor and forced policymakers to address their needs for better wages, working conditions, housing, and health care.