Recession-Fueled Fraud Increases the Need for a Federal Role in Fraud-Fighting – National Consumers League

/in imported/by

By John Breyault, Vice President for Public Policy, Telecommunications and Fraud

Consumer misery – in the form of rampant unemployment, high foreclosure rates, and dwindling retirement savings – is blood in the water for scammers. These con artists know that consumers in desperate financial straits are more vulnerable to the kinds of frauds these criminals routinely peddle. Unfortunately, the worst economy in a generation has caused the traditional “boots on the ground” of consumer protection – state and local consumer agencies – to see their already-slim budgets slashed to the bone or eliminated altogether. Given these disturbing trends, consumers will increasingly depend on federal authorities to protect them from the growing threat of fraud.

This was the message that NCL Executive Director Sally Greenberg delivered to a subcommittee of the Senate Commerce Committee on Tuesday in *testimony on the impact of the economic meltdown on consumer fraud. Greenberg was asked to testify by the committee thanks in part to the work that NCL’s Fraud Center does every day to educate consumers about consumer fraud and alert authorities when victims come to NCL looking for help.

“Absent increased action at the federal level to bring scam artists to justice and educate consumers about the threat of fraud, consumers will be caught between the proverbial rock and a hard place,” noted Greenberg in her testimony.

To address these issues, Greenberg offered several recommendations, including beefing up staffing levels and enforcement budgets at the Federal Trade Commission (FTC), making the FTC’s Consumer Sentinel database open and searchable by the public, and creating a consumer education grant program to help state, local, and non-profit organizations launch innovative anti-fraud projects.

In support of Greenberg’s testimony, NCL released its *semi-annual rankings of the top ten frauds reported to the Fraud Center.  Fake check scams again topped the scam category rankings, increasing by more than 4% of the total complaints submitted. Complaints involving prizes, sweepstakes, or free gifts also increased, particularly among fraud perpetrated by telemarketers. In response to the continued growth of fake check-related complaints, NCL in 2009 has begun to look deeper into the scams behind the fake checks. Our six-month review indicated scams involving fake mystery-shopping jobs, phony sweepstakes winnings, and overpayment for goods made up more than 65% of the total fake check scam complaints received. NCL believes that consumers’ vulnerability all three scam types is closely linked to difficult financial circumstances, which are likely exacerbated by the worsening economic climate.

Click here to see video of the Senate hearings on fraud linked to the recession, including NCL’s remarks.

 

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

Wal-Mart Steps out on Health Care Reform, Prompting Attack by Retail Federation – National Consumers League

/in imported/by

By Sally Greenberg, NCL Executive Director

 

As the Congress begins to consider several different approaches to universal health insurance, Wal-Mart, the giant retailer, has come out in favor of an employer mandate to cover health insurance. That alone is a breakthrough for health care reform since Wal-Mart has been *heavily criticized for its record of poor worker pay and benefits, including lack of affordable health care. In response to criticism from unions, Wal-Mart now provides health care to 52 percent of its workers, up from 46 percent three years ago.

What is shocking is that the National Retail Federation, a federation of retailers across the United States, is condemning Wal-Mart’s actions and is encouraging its members to take a stand against Wal-Mart. “They [members of the federation] really don’t want Wal-Mart to define the health care debate,” said a spokesman for the retail federation.

According to a Kaiser Family Foundation survey, the retail industry covers only 45 percent of its workers. Some retailers have expanded their health care coverage — Toys R Us and Home Depot included — in an effort to reduce employee turnover. And others have stood out for a long time as exemplary in the coverage they provide; Costco Wholesale Corporation has for years had generous health benefits for its employees, and more than 90 percent have coverage. Costco officials say that providing these benefits has boosted employees’ productivity.

So what do the bills say about an employer health care mandate? The *House bill would require most employers over a certain size to provide workers with basic benefits or contribute up to 8 percent of their payroll toward helping the government pay for their coverage. A Senate bill would place a larger obligation on employers of low wage workers. Wal-Mart told the Wall Street Journal that “…we believe we have taken a pro-business position. The present system is not sustainable.”

Wal-Mart support for an employer mandate was expressed in a letter sent to the White House that was co-signed by Andy Stern, president of the Service Employees International Union (which holds a seat on the NCL board) and John Podesta, CEO of the Center for American Progress.

It’s a shame that in 2009 we have a major force in American business taking such a reactionary position on the coverage of basic health benefits. America is the only industrialized country that doesn’t provide health coverage for its people. The National Retail Federation should take a page from one of its own, Costco, which has shown that providing good benefits and health insurance to workers actually increases productivity and improves its bottom line.

 

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

Tips to Enjoy a Safe and Healthy Summer – National Consumers League

/in imported/by

Though summer may be in full swing and we might be in relaxation mode, it is all the more important we stay consumer savvy.

Sunny days may bring a smile to our faces and give us our daily dose of vitamin D, but we have to be prepared and protected so that we don’t get too much of a good thing.  It’s important to wear a hat (with a brim and ideally one that offers the face and ears protection), limit exposure between 10am and 4pm, wear sunglasses with at least 99% UV protection, and *use sunscreen.  When using sunscreen, there are a few things to remember:

  • use broad spectrum sunscreen, which protects against both UVA and UVB rays
  • use SPF 15 at a minimum
  • apply at least 30 minutes before going outside so that it can be absorbed
  • apply even on cloudy days
  • reapply at least every 2 hours – more if you are in water or staying active and sweating

With longer, warmer days, it makes it all the easier to get out and get active. Whether biking, swimming or walking, it’s important to *do so safely.  Wear a helmet, and appropriate padding, when you take the wheels.  When swimming, stay alert and practice some safe tips like swimming with a partner, knowing your limits, staying in safe swimming areas (and avoiding currents, deep water, etc.), being careful about diving, and keeping protected from the sun.  If you plan to exercise, try to avoid drinking a lot of alcohol or caffeine beforehand, as it can cause dehydration.  Stretch your muscles out before any activity to prevent injury.  And one of the most important things to remember when getting out and active this summer is to stay hydrated!

With all the excitement of summer, it’s also important to take some time to relax a bit, whether it means you take a vacation or a staycation.  It’s important that you take some time to unplug, unwind and give your body a much needed break – it can actually help lower our blood pressure.

So whether going for a relaxing stroll or splashing around in a pool, stay safe and consumer savvy this summer!

 

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

Declare Your Health Care Independence! – National Consumers League

/in imported/by

By Mimi Johnson, NCL Health Policy Associate

Health care reform is the talk of this town these days, but it doesn’t mean you can’t make it the talk of your town. In fact, Senators and Congressmen alike have recently returned to their home states to celebrate our nation’s birthday. With their return to your neighborhood comes and opportunity for YOU to speak out for health reform.

In fact, July 2nd was designated as “Health Care Independence Day”, and this month, you’re encouraged to wave your flags and act patriotically before your politicians to help illustrate that you – *and 85% of Americans – are ready for a change.

I’m heading back to Wisconsin and I hope to visit my Congressman’s office, donning red, white, and blue to ensure access to quality health care for me and you.

Please share your health care stories – whether your inspiration for reform or your activities of support. We are always eager to hear from you – and we encourage you to reach out to your Senators, Congressmen, and local media.

Happy Birthday, America! Let’s hope next year we can celebrate as an insured nation!

 

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

Common Pain Relievers Under Scrutiny – National Consumers League

/in imported/by

By Rebecca Burkholder, NCL Vice President for Health Policy

Americans love our pain relievers, but health advocates are increasingly concerned that they can be dangerous to our health if not taken safely. Last week a *FDA Advisory Committee recommended to lower the maximum does of acetaminophen, a key ingredient in many over-the-counter (OTC) pain relievers (like Tylenol and many generic versions, like the ones sold at CVS, Target, and other pharmacies), and to ban prescription drugs that combine acetaminophen with other drugs. I attended the FDA hearing to give NCL’s view on consumer acetaminophen and hear what the experts are saying about the danger of too much acetaminophen.

High doses of acetaminophen are the leading causes of *liver injury in the United States. More that 400 people die and 56,000 visit the emergency room every year in the United States due to acetaminophen overdoses. Consumers don’t know that acetaminophen is an active ingredient in many OTC products, or that it is dangerous to take too much acetaminophen. In fact, almost half of all adults are not sure of the main active ingredient in the OTC pain medication they take most often, and two-thirds of consumers who use OTC acetaminophen are not concerned about overdoses, according to the preliminary results of a new NCL survey of consumer use and attitude towards pain relievers.

To prevent some of these accidental overdoses, the FDA Advisory Committee is recommending that the federal health agency reduce the maximum single adult dose of OTC acetaminophen from 1,000 mg (two 500 mg strength tablets) to 650 mg (two 325 mg strength tablets). The Committee also discussed *the dangers of combination prescription pain relievers that contain acetaminophen, as well as other drugs – over long periods of time, many consumers take more to relieve their pain and they mistakenly take with other medications also containing acetaminophen. The Committee voted to ban these combination prescription drugs containing acetaminophen (such as Percocet and Vicoden – two of the most popular pain relievers). The FDA is not required to follow the recommendations of the Advisory Committee, but it often does.

NCL shared with the Committee the preliminary results of our recent survey on acetaminophen and emphasized the need to remind consumers that just because a drug is available at their local drug store or supermarket, does not mean it is risk-free. We also announced that we will be launching a public education campaign to help consumers understand how to use acetaminophen – with a special focus on teens and Hispanics. Next time you reach for a pill to relieve your pain – *remember to take it safely.

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

Work in Ag Tops Five Worst Teen Jobs – National Consumers League

/in imported/by

By Lauren Perez, NCL Communications Intern

Lauren Perez is the communications intern at the National Consumers League.  She is a senior at Humboldt State University in Arcata, CA.  She is majoring in Journalism and Political Science.

With school out and summer underway, many teens are already employed. The National Institute for Occupations Health and Safety reported that *2.6 million youth ages 15-17 are employed. Just last year, in 2008, 34.2% of teens were employed in summer jobs.

Each year, NCL advises teens and their parents about how to choose a summer job carefully; even legal work for teens pose hidden dangers and some jobs out there are illegal for teens to perform altogether.

NCL recently released the *2009 Five Worst Teen Jobs report, a list of the top five jobs that pose the most potential danger to teen workers. Throughout this summer, we will be highlighting each of the most dangerous jobs, detailing the hazards on the job and providing more information on how youth workers can stay safe.

First up: Agriculture: Harvesting Crops

 

Agriculture work is the most dangerous for young workers. Youth workers in agriculture can be subject to overexertion, high-intensity noise and contact with chemicals. Long hours working in the sun can lead to dehydration, heat exhaustion and heat stroke and being exposed to dust, gas and moldy hay can create respiratory problems.

Agricultural job hazards also include using heavy machinery, especially tractors. From 1992 – 2000, 42% of youth workers killed were in farming jobs and *one third of these fatalities involved tractors. In 2002, an *11-year-old boy was killed when the tractor he was using to move large bales of hall rolled over. The boy was working alone and was found when he did not return to the farm.

The National Institute for Occupational Safety and Health urges young workers to know and follow safe work practices, such as wearing seatbelts when provided, being properly trained and using equipment that is appropriate for their size and age. NIOSH also recommends that young workers use protective clothing and sunblock, take breaks from working in the sun and drink plenty of water.

Youth who work in agriculture are limited by the Fair Labor Standards Act in the *type of work and amount of work that they may do. Youth agricultural workers must be at least 14 years of age. Workers who are between the ages of 14 and 15 may only work outside of school hours in non-manufacturing, non-mining, non-hazardous jobs. Youth workers aged 16 to 17 may perform any non-hazardous job for unlimited hours.

Child Labor Laws restrict young workers under the age of 16 from handling certain chemicals and pesticides. When working with chemicals, employers are required to provide training to all workers who will be in contact with the chemicals six days prior to the start of work.

State laws may also have more strict laws for employers to follow when hiring youth workers. The U.S. Department of Labor can provide more information on state child labors laws for *agricultural jobs.

NCL has also assembled tips for teens and their parents *here.

Next up: Construction and Height Work.

 

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

Food Safety Tips for Independence Day Picnicking – National Consumers League

/in imported/by

Holidays are often busy times for people spending time with families and friends. With sunshine, good company, and fireworks to come, food safety might not be the first thing on your mind, but when picnicking and barbecuing it can be challenging to keep your food safe.  Here are a few tips on how to keep your food free from harmful bacteria that cause foodborne illnesses:

  • Keep hot foods hot and cold foods cold.  At outdoor temperatures, harmful bacteria grow rapidly.
  • Never save leftovers.  Discard anything left over.
  • Discard prepared food if it has been at room temperature for more than 2 hours.

For more detailed information on keeping food safe while picnicking, check out these links on “*Safe Picnicking and Grilling”  and “*Safety on Your Picnic.”

If you’re going camping this weekend, here is a handy checklist to make sure you’re remembering everything you need to have a safe and enjoyable adventure.

Have a safe and enjoyable Independence Day!

 

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

GM Liability for Vehicle Defects a Win for Consumers – National Consumers League

/in imported/by

by Sally Greenberg, NCL Executive Director

Consumers won an important victory this week, and hats off to the consumer organizations, victim’s groups, and state attorneys general who made it happen.  General Motors agreed to assume legal responsibility for injuries drivers suffer from vehicle defects – say, an airbag that failed to deploy or a gas tank that exploded – after the auto maker comes out of U.S. Bankruptcy protection. Credit goes to the Obama Administration as well for ensuring that consumers who had been injured and had liability claims against GM for defects in their vehicles – and those who may be injured in the future – will have their rights preserved. Under the original bankruptcy plan arrived at by GM and government negotiators, the auto maker would have been able to shed such liability after selling its assets to a new GM owned by the government.

But consumer groups protested, as did victims of auto accidents who allege that defects in vehicles caused their injuries, and AGs from more than a dozen states, saying that this arrangement would block car accident victims from having their day in court. After several days of negotiations to address these concerns the parties arrived at an agreement. GM was quoted in the Wall Street Journal June 29 saying it would take on future product liability claims “to alleviate certain concerns that have been raised on behalf of consumers.”

A cornerstone of consumer protection is the right to hold companies accountable when their products have caused injury. It is essential for many reasons, including helping to ensure companies fix defects when they are discovered, for compensating injured consumers for their injuries, and preventing taxpayers from having to care for injured parties when a product – or vehicle defect – causes the injury.  This outcome – with GM continuing to be held accountable to injured plaintiffs who can prove their case – is important to consumers and valuable precedent.

An Induction into LifeSmarts – National Consumers League

/in imported/by

by Brandi Williams, LifeSmarts Program Assistant

As a newcomer to the National Consumers League, the 2009 LifeSmarts National Competition, held in St. Louis, Missouri from April 25 – 28, was my first opportunity to experience the energy that teens from around the country bring to the realm of consumer education. More than 300 students, coaches, families, sponsors, and volunteers from across the country converged in St. Louis for the four-day event, which was brought to an exciting conclusion when the final match between Washington state and Wisconsin was decided, and the Oconto High School team from Wisconsin emerged as the 2009 LifeSmarts National Champions . The semi-final and final matches were streamed live online by our friends at NextGenWeb! You can view the archive *here.

Teens face similar challenges as their parents in making wise consumer choices. They are using the Internet to search for jobs, scholarships and information; they are opening bank accounts and depositing paychecks; they are analyzing costs and benefits to make responsible purchases of items like wireless phones, laptops, MP3 players, clothes and cars – and all the while developing the necessary skills for making financially and environmentally sound decisions. LifeSmarts teaches teens life skills and the value of consumer savvy in a variety of situations where marketplace skills and responsible decision-making are needed.

Coaches use the LifeSmarts.org site for finding relevant curricula to educate teens in the areas of health and safety, technology, personal finance, consumer rights and responsibilities, and the environment. Then, in a format that teens can relate to – a game-show – teens test their skills and knowledge through an online competition. Teams are formed, compete, and those with the highest scores then move on to an in-person state-wide competition, where the 1st place team is then invited to represent their state at the National LifeSmarts Championship.

Being at the National Competition showed me that these teens are excited about learning. The current state of our economy has shocked many teens into understanding the importance of making responsible financial decisions, making them eager to learn the skills they need and put them to use. Many people use the LifeSmarts.org site for personal education only. Participating in LifeSmarts, which is an extracurricular activity, is a personal choice for young adults who want to develop consumer and marketplace skills and carry them into adulthood. And while Oconto High School is the 2009 LifeSmarts National Champion, all LifeSmarts participants are champions in my book.

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

Tenenbaum a Good Match for Important CPSC Post – National Consumers League

/in imported/by

by Sally Greenberg, NCL Executive Director

Late last week, the Senate Commerce Committee held its confirmation hearing for Inez Tenenbaum, the *President’s nominee to head the Consumer Product Safety Commission. Tenenbaum comes with a set of impressive credentials – she was State Superintendent of Schools for South Carolina for 9 years and in 2004 ran for the *U.S. Senate – and lost against Jim DeMint (R-SC), one of the most right-of-center members of the Senate serving in Congress today. Tenenbaum is credited with working for child health and safety while State Superintendent and being a popular vote getter in the state.

Her performance during tough grilling by Commerce Committee members showed her mettle. She maintained her composure, answered a series of tough questions, and exuded Southern charm throughout the hearing. Indeed, as a testament to her winning style, the hearing began with Tenenbaum flanked on either side with both Republican Senators from South Carolina – Lindsay Graham and DeMint – both giving her their endorsement.

Tenenbaum will need all of her skill, talent, and experience: she is likely to face many challenges while implementing the Consumer Product Safety Improvement Act of 2008, the most comprehensive overall of the product safety law since the CPSC’s establishment in 1974. The CPSIA will require a handful of new standards for durable baby products, items you would find child’s nursery that have too often proved hazardous to children. The new law calls for mandatory standards on such products.

Tenenbaum will also oversee regulations on third party testing requirements for products before they hit the market, the opening up of the CPSC Web site to the public, and providing the public the ability to research product safety histories at the CPSC site. Of great concern to Senators in the South, particularly in Louisiana, is the use of *imported Chinese drywall products in homes that have proved hazardous and made thousands of houses unlivable. Senator David Vitter (R-LA) urged Tenenbaum to make Chinese drywall a top priority when she is confirmed.

The CPSC, which regulates the safety of 15,000 household products, is in dire need of an infusion of funds and new leadership. Tenenbaum’s performance on Wednesday before a tough audience of U.S. Senators was impressive. She seems dedicated to and engaged in the task of making products safer, especially for children. Her winning personality will smooth the waters and help her to bridge the gap between the business and consumer communities on product safety.

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.