Happy Birthday to Us – National Consumers League

The Savvy Consumer Blog is celebrating our first year of fun in the blogosphere! Launched just about a year ago, in October 2007, we’ve been hard at work bringing news and nuggets to consumers around the globe. We’ve covered issues ranging from the importance of reading your bills, to swimming pool safety, things to think about when buying a home, avoiding fake check scams, advice for teens searching for jobs, and more!

And what a crazy year it’s been! With headlines about the foreclosure crisis and a scary economy, concerns about imports, lead, and toy safety, child labor abuses, and other hot consumer news, we’ve sure been busy! We’ve had a lot of fun doing it, and we want to hear from you! Tell us your consumer stories, and tell us what you think of ours.

Here’s to another year of fun and education at the Savvy Consumer blog!

Child Labor An American Issue, House Subcommittee Discovers – National Consumers League

by Reid Maki, Coordinator of NCL’s Child Labor Coalition

Americans tend to think that child labor is something that happens in poor, third world countries, but there’s plenty to worry about in our own back yard, according to the witnesses at a *congressional hearing late last month before the *House Education and Labor Committee’s Subcommittee on Workforce Protections.

National Consumers League Executive Director Sally Greenberg, who also serves as co-chair of the Child Labor Coalition, told the subcommittee that DOL needs more resources to enforce child labor laws. “Every 10 days in America, a young person is killed at work. Every day, more than 100 young workers under the age of 19 are seriously injured or become ill from their jobs,” she said, adding that the number of DOL child labor investigations “has declined drastically”—the number of investigations fell by nearly half from 2004 to 2006. “The number of child labor investigations conducted in 2006—1,344—was the lowest in the last ten years for which we have data, and may be lowest in many decades.”

With fewer than 750 labor investigators for the entire nation, DOL is conducting so little enforcement the department has become a “paper tiger,” said Greenberg.

Norma Flores, a former child farm worker, testified about her early years in America’s fields harvesting fruits and vegetables. She and her sisters began working long hours when they turned 12 “during our summers and any other school breaks we had,” Flores told subcommittee members. “Full-time work weeks now meant 70 hours— including weekends—for weeks at a time with no days off,” she explained.

Advocates estimate that 400,000 children help their impoverished migrant and seasonal farmworker families in the fields each year. Exemptions to U.S. labor law allow the youth to work at younger ages in agriculture than they could in any other industry.

“One of the most terrifying moments of my life was when an airplane accidently sprayed pesticides over the field my family and I were working in,” Flores recalled. The farm contractor told the panicked family to move to a different field and keep working, she said.

David Strauss, the executive director of the Association of Farmworker Opportunity Programs, told Subcommittee Chair Lynn Woolsey (D.-Calif.) that federal law offers working children like Norma few protections. Strauss explained that the law’s only requirement is that the teen agricultural workers “not work during school hours when school is in session. That is virtually the only restriction in federal law, along with a prohibition against hazardous employment for children 15 and younger.”

“A 12-year-old kid can work 12 or more hours a day during the summer, on weekends, or during the school year as long as those hours are outside of school time,” Strauss added. “I have spoken with teenage children of migrant families who worked after school until midnight during a heavy harvest.”

Strauss noted that kids pay a heavy toll for their hard work. They often leave their homes and schools to begin seasonal work before the end of the school year, and they sometimes return after the school year has already begun. Falling behind, they quickly become discouraged and, according to estimates, as many as two out of three drop out of school.

“Without a diploma, without good job skills, they often end up continuing the cycle of poverty their parents hoped they could break,” said Strauss.

Strauss reminded subcommittee members that legislation by Rep. Louise Roybal-Allard—The Children’s Act for Responsible Employment— would address the issue of agricultural child labor and level the playing field so that child farmworkers are treated like other children. The legislation would keep kids under 14 out of the fields unless they are working on their own family’s farm (in which case they would be exempt). Kids 14 and 15 would only be allowed to work in the fields if the Secretary of Labor determined that the work is safe.

Alexander Passantino, the acting administrator of the Wage and Hour Division who represented DOL, claimed investigators always look for child labor even when they are investigated other labor violations.

NCL’s Greenberg made several recommendations, including asking Congress to double the number of labor inspectors. She urged passage of the CARE Act to protect children working in agriculture, and she called on DOL to revise the “hazardous orders” to prohibit teens from working in dangerous agricultural jobs. Greenberg asked DOL to conduct targeted child labor investigations of agriculture and meatpacking, two industries with high injury rates.

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

Fast Food Chain’s Decision to Post Calories Great News for Consumers – National Consumers League

By Sally Greenberg, NCL Executive Director

Last week, consumers of fast food got some great news: YUM! Brands announced that it will post calorie counts on menu boards at KFC, Pizza Hut, Taco Bell, and Long John Silver’s – all chains that it owns. About 4,000 of Yum’s company-owned stores will begin to post calories on menu boards now, and the company says all of its 20,000 stores will do so by Jan. 1, 2011, if not sooner.

Why is this great news for consumers? Because consumers want to know what’s in their food, including calories. For years, health advocates concerned about our obesity epidemic, including the National Consumers League, have been wrestling with the food industry – including sit-down restaurants and fast food outlets – to get them to post calories in a prominent place: on menus customers receive when they sit down for a meal or on the board you read when you order a burger and fries. YUM!’s getting out in front on this issue will put pressure on others in the industry to do the same.

Even Michael Jacobsen, the take-no-prisoners director of the organization Center for Science in the Public Interest, known in many circles as the “*food police,” had this comment: “I never thought I’d say this, but I salute Colonel Sanders!

Consumers shouldn’t have to fight to learn basic nutritional information about the food they are eating. Ever tried to find out what the calorie count is of a burger at a fast food outlet? It’s like going on a treasure hunt. The staff has to search around behind the counter for the information. If you’re lucky, they will locate a sheet that lists the calories. Often times they can’t find it. Several years ago I lived in Australia. Every fast food item has a wrapper that lists the calories and other nutritional information for whatever you’re eating. I wondered why we couldn’t do that here.

The National Consumers League agrees with Michael Jacobsen of CSPI: McDonald’s, Starbucks, Applebee’s, and other major chains should follow YUM!’s example. YUM! is also backing legislation that would require restaurants to list calories on menus and menu boards. Good for them!

YUM! is ahead of the pack in taking a voluntary approach to what’s becoming mandatory in some places around the country. Gov. Arnold Schwarzenegger just signed into law a bill that requires chains in California with 20 or more locations to post calorie information on menu items by Jan. 1, 2011. A stricter form of nutrition labeling went into effect in New York City last July.

So this is the trend, and it’s good for consumers. No, not every consumer cares about caloric information in the food they eating. But plenty do, and they should have easy access to that information. YUM! Brand’s announcement last week is good news for consumers and, we can only hope, a harbinger of things to come in the fast food industry.

 

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

Meet the Honorable Richard Blumenthal – National Consumers League

Since 1991, Connecticut Attorney General Richard Blumenthal has been defending consumers’ interests for an unprecedented five terms in office. Blumenthal’s aggressive law enforcement for consumer protection, environmental stewardship, labor rights and personal privacy, has helped reshape the role of state attorneys general nationwide, has recovered hundreds of millions of dollars for Connecticut taxpayers and consumers each year — AND has earned him one of two 2008 Trumpeter Awards from the National Consumers League.

Like fellow recipient Barbara Ehrenreich, Richard Blumenthal is being honored with NCL’s highest award for his career-long dedication to guarding the interests of consumers and workers against harm. Blumenthal lead the national fight against Big Tobacco to stop deceptive marketing aimed at children and for reforms in the health insurance industry to ensure coverage and lower costs.

He has worked relentlessly to eradicate corruption in state government, make state contracting accountable, fair, honest and transparent, and to battle unfair utility rate charges, air pollution causing acid rain and other environmental wrongdoing, and scams and frauds victimizing consumers.

We will proudly present Blumenthal with the Trumpeter Award tonight in Washington, DC, before everybody tunes in to the first VP Debate. Check back soon for photos from the event!

Meet John Breyault – National Consumers League

by John Breyault, NCL VP, Public Policy Telecommunications and Fraud

Hello to you all, fellow Savvy Consumer Blog readers! I’m the “new guy” here at the National Consumers League. At NCL, I’ll be coordinating the League’s policy activities and managing the National Consumers League’s Fraud Center and the Alliance Against Fraud coalition in my position as Vice President of Public Policy, Telecommunications, and Fraud.

While I’m new to the position, I have been a fan of NCL for many years through my work as Research Director of the non-profit Telecommunications Research and Action Center (TRAC). In my five years at TRAC, I educated and advocated on behalf of residential and small business consumers of communications services. As such, I became well-versed in all things related to telecom and broadband policy, where I developed an intense love-hate relationship with the minutiae of tariff sheets, ex parte filings, and – yes – even EULA’s.

Concurrent with my role at TRAC, I was also Director, Research at Amplify Public Affairs where I helped launch one of the public affairs industry’s first blogger relations practices (which should serve me well with this blog!). I also designed and implemented issue campaigns using online social networks such as MySpace and Facebook and even virtual worlds like Second Life.

I’m very excited to be joining the League at this important moment in its history. With a new Administration set to take office, the next few months will be a critical time to help shape the future of consumer-friendly policies in Washington. The old saying “you never get a second chance to make a first impression” holds true in policy work as well. Relationships with the new occupants of the White House will be forged. New Members of Congress and agency officials will need to be educated to make sure that the 111th Congress keeps the interests of consumers in mind. In short, the next few months are full of possibilities for the League and I’m proud to have this opportunity be a part of it.

Going forward, I’m looking forward to keeping up a regular posting schedule to keep everyone up to date on the League’s policy activities here in Washington. I’ll also be discussing some of the important consumer news that never seems to make it into the newspapers and evening news. Please do feel free to post comments or drop me a line directly at johnb@nclnet.org.

Trumpeter Honoree: Barbara Ehrenreich – National Consumers League

Did you know that Barbara Ehrenreich, the author of more than a dozen books on a variety of social issues, was a chemistry major at Reed College, in Portland, Oregon? The daughter of a miner in Butte, Montana, Barbara got into grad school at Rockefeller University with the intention of studying theoretical physics. She bounced around, switching to molecular biology, and, later, cell biology, which she got her PhD in.

According to an “About Barbara” page written by the author at her Web site, it was the anti-Vietnam war movement that made her realize that she wasn’t made for a life of laboratory work after all. She joined a New York-based nonprofit org, where she got involved in investigative journalism, and the rest is history – an amazing biographical history of Barbara’s transition to author and activist. Today, she is the author of 14 books

Tomorrow night, the National Consumers League will honor Barbara with its highest honor, the Trumpeter Award, for her career of service to consumers and workers. Barbara has lifted the voice of workers’ concerns with years of activism on health care, peace, women’s rights, and economic justice, and we are thrilled to honor her tomorrow night. Her 2001 book, Nickel and Dimed, is an examination of working-class poverty, following her own attempt to live on minimum wage, and it is now required reading at more than 600 colleges and universities.

For those of you who can’t join us, we’ll take pictures! And check back tomorrow to learn more about Connecticut Attorney General Richard Blumenthal and why we’re honoring him this year as well.

NCL’s Trumpeter Awards – National Consumers League

Every year, NCL honors an individual or two who stand out as leaders in the fight for consumers and workers with our Trumpeter Awards. This year, we will proudly honor writer, activist, and social critic Barbara Ehrenreich and Connecticut Attorney General Richard Blumenthal. Check back here to learn more about what we think is so great about each of these guys in the coming days.

Child Labor Enforcement: Are We Adequately Protecting our Children? – National Consumers League

This morning on Capitol Hill, NCL’s Sally Greenberg and Dave Strauss from the Association of Farmworker Opportunity Programs will *testify before a subcommittee hearing on Workforce Protection on the issue of domestic child labor, including the Department of Labor’s inadequate enforcement of child labor laws and the need for reform of agricultural child labor laws. They’ll be joined by former child field worker Norma Flores, who will tell her story of growing up in a farmworking family in Texas.

If you’re not going to be on Capitol Hill yourself this morning, you can listen to the live Web cast at the committee’s *Web site, or you can read Sally Greenberg’s testimony at our *site.

 

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

Prepaid Calling Cards Under Scrutiny – National Consumers League

By Sally Greenberg, NCL Executive Director

Prepaid calling cards—those colorful cards you find at your local convenience store or gas station for $2, $5, $10 that advertise cheap per minute rates for calling countries all over the world—are a $6 billion industry that promises to grow in the years to come. But it turns out that the cheap rates these cards offer—1 or 2 cents a minute to call Nigeria or El Salvador, for example—often fail to deliver the bargain they promise.

Immigrants calling family and friends back home, students, military families, and others who don’t have long distance phone service or a wireless phone often buy these cards because the international rates they offer are cheaper than calling from a pay phone or a home phone. I use these cards to call the friends I made while living in Australia several years ago.

In the last two weeks, I testified on behalf of the National Consumers League before Committees at hearings in both the U.S. Senate and House of Representatives about new legislation introduced to help curtail the abuses in the prepaid calling card industry:

In the Senate, the Commerce, Science and Transportation Committee, had a hearing chaired by the bill’s author, Senator Bill Nelson of FL and *in the House, the Energy and Commerce Subcommittee on Commerce Trade and Consumer Protection, chaired by Rep Bobby Rush democrat from Illinois. The problem with many of these prepaid cards are the myriad charges they impose: connection fees, maintenance fees, hang up fees, taxes and extra charges that the per minute rates—when combined with the fees—end up to be much higher than what is promised on posters advertising these cards. At the hearing in Senate, a blow-up poster of one card’s fees elicited laughter from the audience when Senator Nelson read aloud that off peak rates were offered only when calls were made between “2 am and 4 am” in the morning.”

The House hearing proved interesting because *Professor Emeritus Julia Marlowe from the Department of Housing and Consumer Economics at the University of Georgia discussed her study of calling cards and what they ultimately deliver. (see link above to Committee hearing and her testimony). She and her colleagues tested more than 200 cards. What Professor Marlowe found is that these cards—though they have dizzying numbers of fees and charges—can indeed be a bargain if used wisely. Her study found that if you buy the cheapest card – $2 or $3—and use it all in one call—you get the best bargain for your money. The problem with these cards is that they often diminish in value quickly after the first use (once the many weekly maintenance fees and other charges kick in), so word to the wise for savvy consumers: use as many minutes as you can your first call.

The League supports both the Senate bill—S. 2998, introduced by Senator Nelson of Florida—and its House counterpart, HR 3402, introduced by Congressman Eliot Engel of New York, to require better disclosure of rates and charges and to allow the Federal Trade Commission to carry out more oversight and investigation of the calling card industry. Passage of both bills looks very promising before Congress adjourns in a few weeks—and without much opposition, we may indeed have a new law curbing prepaid calling card abuses before the year’s end. However, NCL also called for review by the FTC in one year if, after the legislation is in force, the stronger disclosure rules aren’t doing enough to curtail the abuses in this industry. It may be appropriate to take further steps to ensure consumers are getting the bargain they paid for in supporting this billion dollar industry.

 

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

A Community Reeling: NCL’s Visit to Postville, IA – National Consumers League

In May, immigration officials raided the Agriprocessors kosher meat plant in Postville, Iowa, uncovering health and safety violations and illegal, dangerous employment of minors.

Last month,  NCL sent Reid Maki, our child labor expert, to Postville to observe a community still reeling from the upheaval. Reid observed the community’s reaction to the events through the eyes of the residents: a local radio deejay, a former underage worker at the meat plant, the religious community that’s keeping the affected immigrants afloat.

Read about his visit here.