Former senior FTC officials call on Congress to oppose pyramid scheme promotion bill – National Consumers League

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September 13, 2017

Contact: Cindy Hoang, National Consumers League, (202) 207-2832, cindyh@nclnet.org

Washington, DC—A bipartisan group of former senior Federal Trade Commission (FTC) officials have called on House leadership to oppose “pending legislation that would dramatically curtail the Commission’s authority to bring appropriate enforcement actions” against fraudulent pyramid schemes. In a letter to House Speaker Paul Ryan (R-WI) and House Minority Leader Nancy Pelosi (D-CA), the officials called on House leadership to support the removal of an amendment sponsored by Congressman Jon Moolenaar (R-MI) from must-pass appropriations legislation.

“Our concerns are shared by a broad coalition of consumer and Latino advocacy organizations, and even prominent members of the direct selling industry itself,” wrote the former senior officials. “We are concerned that the proposed legislation would create unnecessary uncertainty and result in impairing the ability of the FTC to protect consumers against deceptive schemes.”

The letter noted the FTC’s 40+ years of success in prosecuting fraudulent pyramid schemes that deceptively lure consumers into supposedly lucrative business opportunities, where the vast majority of members lose money in order to enrich schemers. The Moolenaar amendment, wrote the former senior officials “would unnecessarily create new opportunities for legal challenge to enforcement; even worse, the provisions could put practices now recognized as harmful and deceptive beyond the reach of the law.”

“Despite claims to the contrary by some in the direct selling industry, this legislation would not provide helpful clarification as to legitimate direct selling business practices, or strengthen consumer protections against fraudulent pyramid schemes,” noted the former senior officials. “Instead, it would undermine the FTC’s ability to effectively police these deceptive practices, and we fear they would spread, harming millions of consumers, and putting direct sellers who are committed to honest business practices at a competitive disadvantage.”

Signatories of the letter include former Chairman Jon Leibowitz, former Commissioner Joshua Wright, and former Directors of the Bureau of Consumer Protection William MacLeod, Lydia Parnes, Jessica Rich, and David Vladeck.

*Full text of letter available here.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

 

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

President Trump’s attack on DACA gives Americans reason to worry – National Consumers League

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September 11, 2017

Contact: Cindy Hoang, National Consumers League, (202) 207-2832, cindyh@nclnet.org

Washington, DC—The National Consumers League (NCL) today declared its deep disappointment in President Donald Trump’s announcement that he will end the Dreamers Program. Known officially as the “Deferred Action for Childhood Arrivals (DACA),” the program was adopted during former President Barack Obama’s Administration to create a citizenship path for young people brought to the United States at a young age by their parents. The process of citizenship through DACA is a lengthy one, including requirements of having no criminal record and either being enrolled in school or employed. DACA registrants are eligible for work permits during their two-year period of deferment, and other guidelines for qualification for the program.

The following quote may be attributed to NCL Executive Director Sally Greenberg:

“The National Consumers League adopted policy in support of immigration reform several years ago because it fits well within our mission of protecting vulnerable populations from consumer and employer exploitation. The Dreamers contribute an estimated 2 billion dollars a year to our tax base, and deporting them would cost an estimated $400 billion. As of March 2017, there are more than 800,000 people who will be affected by the termination of this program.”

“These young people are also consumers who have contributed to the country’s economy. As a consumer advocacy organization, the National Consumers League cannot endorse the decision by President Trump to put an end to DACA.”

“Even more disturbing is the threat of using personal information submitted in the vetting process to find and deport DACA protected workers. This is the wrong message to send to outstanding young people who, through no fault of their own, have grown up in this country under the shadow of deportation.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

LifeSmarts is back! Launching 2017-2018 season of education and scholarship program

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September 11, 2017

National student financial literacy competition opens 2017-18 season

Contact: Cindy Hoang, NCL Communications, (202) 207-2832 or cindyh@nclnet.org

Washington, DC–Today marks the official launch of the 24th season of LifeSmarts, with a new competition going live at the online home of the program, LifeSmarts.org. LifeSmarts, a program of the National Consumers League (NCL), is a national scholarship competition and educational program for middle-school and high-school students that tests knowledge of real-life consumer issues and aims to create a future generation of consumer-savvy adults.

“We are very excited to launch our 24th season of LifeSmarts,” said national Program Director Lisa Hertzberg. “LifeSmarts gives students the skills they need to succeed as adults. We see students gain knowledge, confidence, leadership capabilities, and team-building skills. The competition is a lot of fun, and the impact of LifeSmarts is lifelong.”

LifeSmarts focuses on five main content areas: consumer rights and responsibilities, personal finance, technology, health and safety, and the environment. Students are quizzed on their knowledge of these subject areas during online competition. Top-performing teams then advance to statewide competitions, and state champion teams advance to the national championship held each year in a different American city. The 2018 National LifeSmarts Championship will take place April 21-24 in San Diego. Winning team members receive scholarships and other prizes.

Last year, students answered more than 3.5 million consumer questions about credit reports, recycling, nutrition, social media, state lemon laws, and everything in between. By being consumer savvy and quick on the buzzers, the LifeSmarts team from Dallas High School in Dallas, PA, took home top honors at the 23rd national event in Pittsburgh, PA. Dallas High was a returning champion, taking home the national title two years in a row.

In addition to state and national competitions, LifeSmarts recognition and awards occur throughout the program year:

  • Teams of students vie for cash prizes in the online TeamSmarts quiz, which focuses on a specific LifeSmarts content area each month from September through January.

  • Five $1,000 scholarships are awarded each winter to winning LifeSmarts students who become Safety Smart Ambassadors, using LifeSmarts content to present safety messages to younger children in their communities.

  • New in 2017: the Sarah Weinberg Memorial Scholarship is awarded to a single student who demonstrates extraordinary community service work.

  • Partnering with FBLA (Future Business Leaders of America) and FCCLA (Family, Career, and Community Leaders of America), LifeSmarts offers special competitive events for student members of both student leadership organizations. FBLA and FCCLA team members have the opportunity to compete for cash prizes, trophies, and other honors.

LifeSmarts is active in all states and the District of Columbia, where NCL is headquartered. During the 2016-17 program year, when a team from Kodiak, AK, signed up, LifeSmarts reached its 50th state.

“We are excited to continue to grow the LifeSmarts program into new states and regions, to continue to educate students about financial literacy, and to create a new generation of savvy, market-ready consumers and workers,” said Sally Greenberg, executive director of NCL. “Too often traditional high school curriculum fails to teach students vital information that will be crucial once students go to college, get their first job, or move out of their parents’ house.”

In addition to hosting the official LifeSmarts competition, LifeSmarts.org provides resources for teachers to supplement existing lesson plans. These include daily quizzes, educational videos, social media competitions, focused study guides, and scholarship opportunities. LifeSmarts lessons closely align with courses taught in family and consumer sciences, business, technology, health, and vocational education. Math and English teachers have also had success with LifeSmarts, as have homeschool and community educators.

Major LifeSmarts contributors include: McNeil Consumer Healthcare, Johnson & Johnson, LifeLock, Underwriters Laboratories, Western Union, Comcast NBC Universal, Experian, Intuit, American Express Company, and others.

Visit LifeSmarts.org for more information.

LifeSmarts: Learn it. Live it.

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About LifeSmarts

LifeSmarts is a program of the National Consumers League. State coordinators run the programs on a volunteer basis. For more information, visit: LifeSmarts.org, email lifesmarts@nclnet.org, or call the National Consumers League’s communications department at 202-835-3323.

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.

Equifax adds insult to injury by requiring consumers affected by data breach to agree to mandatory binding arbitration – National Consumers League

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September 8, 2017

Contact: Cindy Hoang, National Consumers League, (202) 207-2832, cindyh@nclnet.org

Congressional action in response to 143 million-record breach is long overdue, says consumer group

Washington, DC—Equifax, one of the nation’s three major credit bureaus has announced that 143 million consumers have had their personally identifiable information compromised. The following statement is attributable to John Breyault, National Consumers League Vice President of Public Policy, Telecommunications and Fraud:

“In a scenario that has become all too common, a company entrusted with protecting consumers’ most sensitive data has failed to protect that data. While Equifax will face a public relation headache, it is the consumers who will ultimately pay the price in the form of higher risk of identity theft and other fraud.

Even worse, Equifax adds insult to injury by requiring consumers to waive their right to a day in court and accept mandatory binding arbitration in order to take advantage of the company’s free year of credit monitoring. Cybersecurity experts estimate that the effects of this breach may be felt by consumers for decades. Consumers who choose to take advantage of Equifax’s credit monitoring in response to this breach should be sure to read the fine print carefully to find out how to opt out of these outrageous arbitration clauses.

The time is long overdue for Congress to step in and pass comprehensive data security legislation. This legislation should not only outline strong data security practices, but also minimum responsibilities for companies to compensate affected consumers when their personal information is exposed.”

For additional information on this breach and what consumers can do to protect themselves, visit Fraud.org’s “Data Breach HQ” page on the breach here.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Advocates’ joint letter on autonomous vehicle legislation being considered by the House – National Consumers League

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September 5, 2017

Dear Member of the House of Representatives, 

On behalf of our consumer, public health and safety organizations, we would like to provide our views of H.R. 3388, the Safely Ensuring Lives Future Deployment and Research In Vehicle Evolution Act (SELF DRIVE Act). This legislation addresses the future development and deployment of autonomous vehicles (AVs) and will be considered by the House of Representatives tomorrow. 

Unfortunately, this legislation takes an unnecessary and unacceptable hands-off approach to hands-free driving. A recent study conducted by the Massachusetts Institute of Technology revealed deep public skepticism about AVs. Only 13 percent of those polled reported that they would be comfortable with vehicle “features that completely relieve the driver of all control for the entire drive.” Similarly, a Kelly Blue Book survey, released in September 2016, found that nearly 80 percent of respondents believed that people should always have the option to drive themselves, and nearly one in three said they would never buy a level 5 AV. 

Any defect or setback involving AVs will severely curtail public acceptance of this technology and risk the progress and promise AVs hold to significantly reduce motor vehicle crashes, fatalities and injuries. For these reasons, the following issues must be adequately addressed to ensure public safety, security and confidence. 

Excessive Numbers of Exempted Vehicles are Permitted and will Jeopardize Safety: Expanding statutory exemptions from the Federal Motor Vehicle Safety Standards (FMVSS) for AVs is both unwarranted and unwise. As currently drafted, the bill would allow for potentially millions of vehicles on America’s roads that have been exempted from critical FMVSS including those that apply to occupant protection and crashworthiness. Only 18 months ago, Congress increased allowable exemptions for manufacturers in the FAST Act (Pub. L. 114-94), and this is sufficient for the development and deployment of AVs. 

Exemptions from Crashworthiness Standards Should be Prohibited: Any provision allowing for exemptions from crashworthiness standards, no matter the qualification or time line, is an egregious and unacceptable attack on safety. Autonomous vehicles will be sharing the roads with traditional vehicles for many years to come and will undoubtedly be involved in crashes. Exposing motorists to the dangers of crashes without proven and needed protections is a wanton disregard for public health and safety. 

Essential Data and Public Information About AVs are Needed: The National Highway Traffic Safety Administration (NHTSA) should be required to establish and maintain a current public database for all AVs that contains essential data including but not limited to Safety Assessment Letters, information on the level of automation of each vehicle, exemptions from FMVSS that it is operating under, and the operational design domain with which the AV is equipped. The data collected in the database shall be appended to crash databases maintained by the U.S. Department of Transportation. Such a database will allow for independent evaluation and research on the real-world performance of AVs. Furthermore, all non-proprietary communications and responses between the agency and a manufacturer as it relates to any issues involving AVs must be made available for contemporaneous public review, scholarly research and safety analysis by independent stakeholders. 

Finally, Congress must ensure that consumers are given essential information about an AV. Under the current version of this bill, it will be years before NHTSA even completes research before beginning the process to issue a consumer information rule. Every manufacturer should be required to provide every consumer for every vehicle sold information about its capabilities, limitations and exemptions from federal safety standards. This information should not be withheld from consumers until NHTSA completes research and finally issues a rule. 

Sufficient Funding for NHTSA is Critical: The agency must be given additional funding and staff resources in order to meet the demands being placed on the agency with regard to the advent of AV technology. We recommend the establishment of an office of AV technology within NHTSA with an adequate budget to implement the requirements of this legislation, to assist in the safe introduction of AV technology into the marketplace, and to ensure oversight and accountability. 

NHTSA Needs Additional Enforcement Powers: NHTSA should be given the additional tools of imminent hazard authority to protect against potentially catastrophic defects with AVs and criminal penalties to ensure manufacturers do not willfully and knowingly put defective AVs into the marketplace. 

State Preemption is Too Broad: We share the concerns expressed by associations representing Governors, state legislators and other state officials about the broad and unacceptable preemption language in H.R. 3388. While we support the statutory mission of NHTSA to regulate the design and performance of motor vehicles to ensure public safety, unless and until NHTSA issues comprehensive standards and regulations to govern AVs, states have every legal right, indeed a duty to their citizens, to fill the regulatory vacuum with state developed proposals and solutions for ensuring public safety. States must not be precluded from fulfilling their role to protect their citizens. 

It is critically important that life-saving technologies be advanced in a safe and expeditious manner. We believe that AVs will not only change our lifestyles but may, once and for all, change our ability to achieve meaningful and lasting reductions in the death and injury toll on our streets and highways. However, realizing these goals can only be achieved if Congress enacts legislation that ensures that AVs are developed and deployed in a safe, sensible and transparent manner. 

Sincerely, 

Jacqueline Gillan, President
Advocates for Highway and Auto Safety

Joan Claybrook, Chair 
Citizens for Reliable and Safe Highways and 
Former Administrator, NHTSA 

Jason Levine, Executive Director 
Center for Auto Safety

Jack Gillis, Director of Public Affairs 
Consumer Federation of America 

Sally Greenberg, Executive Director 
National Consumers League

Andrew McGuire, Executive Director 
Trauma Foundation 

John Lannen, Executive Director 
Truck Safety Coalition 

NCL: Trump Administration sabotage of Affordable Care Act is inexcusable – National Consumers League

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September 6, 2017

Contact: Cindy Hoang, National Consumers League, (202) 207-2832, cindyh@nclnet.org

Washington, DC—Today the National Consumers League (NCL), the nation’s pioneering consumer advocacy organization, is expressing extreme disappointment that the Trump Administration is yet again undermining the Affordable Care Act (ACA), despite Obamacare’s popularity nationwide across all income and geographic lines.

The Administration has:

  1. Cut the 2018 Open Enrollment Period for the Health Insurance Marketplace in half. It now runs only from November 1, 2017 to December 15, 2017, instead of remaining open until January 31, 2018.
  2. Cut the ACA’s advertising budget to promote the Open Enrollment Period from $100 million to *$10 million. Adding insult to injury, the Affordable Care Act Navigator program will be cut by nearly $30 million — from $62.5 million to $36 million. Navigators are critical to helping consumers to choose and enroll in Marketplace coverage.

The following statement may be attributed to Sally Greenberg, NCL executive director:

“NCL is extremely disappointed in the Trump Administration’s undermining of the ACA Marketplace. Millions of Americans need and depend on access to health care to keep themselves and their families healthy. Millions more are eligible to sign up for ACA coverage. Rather than acting to stabilize the health care marketplace and help people get the care they need, the Trump Administration’s actions guarantee reduced enrollment. This goes directly against the wishes of the vast majority of the American people. Seven in 10 Americans would rather see Congress make improvements to the ACA—not try to destroy it. Congress has tried numerous times to repeal and replace the law, but it keeps failing because Americans don’t want it repealed. Despite what President Trump might say, any failure of the ACA Marketplace will fall squarely upon his shoulders.

To address this large gap in advertising funding, the National Consumers League is joining with our colleagues in the health advocacy community to urge consumers to enroll in health coverage by the December 15, 2017 deadline. NCL will also work with our allies to encourage Congress to act to shore up the marketplace.” 

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

 

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

NCL leads charge for table saw safety at agency hearing – National Consumers League

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August 10, 2017

Contact: Cindy Hoang, National Consumers League, (202) 207-2832, cindyh@nclnet.org

Washington, DC—National Consumers League (NCL) joined 22-year-old table saw injury victim, Josh Ward, from Sisters, OR, who severed four fingers on a table saw at age 17 in shop class, and other witnesses at a hearing of the Consumer Product Safety Commission (CPSC) this Wednesday. The Commission is considering a safety standard for all table saws sold in the United States using currently available technology. In 2015, table saws accounted for more than 4,000 amputations – 11 a day – and 33,400 emergency room visits. This new standard will eliminate virtually all table saw injuries.

“Table saws have a demonstrated pattern of injury affecting thousands of victims and costing society billions of dollars every year,” said NCL in comments filed with the CPSC.

“We can end table saw injuries forever using affordable, available technology so why wouldn’t we do that?” said Sally Greenberg, executive director of NCL, who offered testimony before the Commission. “Why should Josh Ward – at the age of 17 – have had to suffer life-altering injuries, lifelong pain and risk of infection, and have his dreams of becoming a firefighter destroyed when we could have completely prevented his injury?”

Greenberg noted that today’s technology, which protects users through a sensor that can distinguish between wood and a finger, prevents the blade from inflicting serious injury. Makers of the SawStop saw, which includes this safety technology, have recorded over 5,000 “finger saves,” cases of people who would have sustained serious injury but did not because they were using a safe saw design. NCL wants all table saw users to have the benefit of this same safety technology.

“Accidents like mine can happen to anyone. You can’t put a value on what it’s like to lose your hand; the Commission needs to finalize its safety standard so nobody else need suffer a life-altering injury as I have done, all because their hand slipped for a fraction of a second while operating a table saw,” said Ward in emotional testimony before the panel.

The hearing took place before the five members of the CPSC on August 9. The Commission is considering this mandatory safety standard for table saws. SawStop’s inventor, Dr. Steven Gass, also testified. Industry witnesses all opposed the CPSC’s proposal, citing cost and other issues.

Read NCL’s testimony here.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL urges federal government to fund CSR benefits to make marketplace coverage more affordable

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August 2, 2017

Contact: Cindy Hoang, National Consumers League, (202) 207-2832, cindyh@nclnet.org

Washington, DC–The National Consumers League (NCL) urges the Federal government to fund cost-sharing reduction (CSR) benefits, which make coverage more affordable for low- and moderate-income Americans who buy their own coverage.

Unfortunately, President Trump continues to threaten to stop the CSR payments in a misguided attempt to resurrect Congressional efforts to repeal and replace the Affordable Care Act (ACA). In response, the bipartisan Problem Solvers Caucus of more than 40 Members of Congress released a proposal on Monday that would ensure mandatory funding of the CSRs. NCL applauds this proposal and urges Congress to move swiftly to approve these appropriations.

The following quote may be attributed to Sally Greenberg, NCL executive director:

“Funding CSR benefits is not an insurer `bailout,’ as President Trump has claimed. Health plans pass these dollars through to consumers, so that they can afford to see their doctors and get their prescriptions. This funding helps to lower deductibles and other out-of-pocket costs for more than 6 million low- and moderate-income Americans. Without certainty that these payments will be made, however, health plans are likely to raise premiums or choose to leave the Marketplace entirely – leaving people with few, if any, choices. It is time to shore up, not undermine, the Marketplace, and ensure the market stability that both health plans and consumers desperately need.”   

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL statement in support of the Food Recovery Act – National Consumers League

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July 31, 2017

Washington, DC– The National Consumers League (NCL) is pleased to support the reintroduction of Congresswoman Chellie Pingree’s (D-ME) bill, the Food Recovery Act, which aims to make food waste prevention and reduction more cost effective and efficient.

Since September 2015, when the U.S. Department of Agriculture (USDA) and Environmental Protection Agency (EPA) announced a national commitment to cut U.S. food waste in half by year 2030, we have seen groups across the food supply chain mobilize and create innovative solutions for sustained waste reduction. Yet, further progress could be achieved by streamlining our current food production and recovery system.

The reintroduction of the Food Recovery Act is a reminder to Congress that the impacts of food waste remain relevant. A study from as recent as 2015 shows that we throw out approximately 62.5 million tons of food each year. This waste is creating a financial and environmental burden that can be alleviated with help from Congress. The Food Recovery Act covers four major stakeholder groups: farms, retail and restaurants, schools and institutions, and consumers and local infrastructure. Policy initiatives that address food waste from farm to table allow for synchronized reform that can better guide organizations and individuals in their current reduction efforts.

Solutions such as standardizing date labeling language and creating protections for direct food donation can keep nutritious food out of landfills and drastically diminish the number of over 42 million Americans who are food insecure.  The bill also calls for more consumer education around food waste reduction and recovery. Consumer action has the potential to hold the most economic value, estimating a $4,531/ton financial benefit. 

The National Consumers League is proud to be working alongside other non-profit and government groups committed to reaching the 2030 goal.  Food waste reduction is a nonpartisan issue. At a pivotal time in our country, we urge Congress to pass the Food Recovery Act and move toward a more productive and sustainable food system that benefits all Americans. 

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

 

Consumer groups support CPSC vote on table saw safety – National Consumers League

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July 31, 2017

Contact: Cindy Hoang, National Consumers League, (202) 207-2832, cindyh@nclnet.org

Washington, DC–Five national consumer groups are supporting a safety standard for all table saws. In joint comments sent to the Consumer Product Safety Commission (CPSC) last week, the National Consumers League (NCL), the Consumer Federation of America, Consumers Union, Public Citizen, and US PIRG are supporting the CPSC’s vote in favor of adopting a safety standard. The standard, known as Active Injury Mitigation (AIM), would all but eliminate the 33,400 emergency room visits and 4,000+ amputations that table saws cause annually in the United States each year. The AIM technology is a performance standard, allowing industry to use any technology that prevents serious injuries. 

“This is precisely why the Consumer Product Safety Commission was established in 1972: to mitigate injuries in the market place when there is a pattern of injury and an affordable, viable technology to address those injuries,” said Sally Greenberg, NCL executive director. “Table saw blades are associated with over 30,000 emergency department-treated injuries annually and an average of 11 amputations a day, resulting in excruciating pain, expensive medical costs, and lifelong disabilities to victims. The CPSC began formally investigating table saw safety since 2006. In the interim, numerous detailed studies conducted by CPSC staff and others have confirmed that the adoption of a performance requirement makes sense both for consumer safety and for the economic benefits it would bring to society at large.”

NCL also filed its own comments available here.

See factsheet about table saw vote.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.