NCL hails CA Gov. Brown for signing new law to combat employee misclassification, an illegal form of wage theft – National Consumers League

/in /by

October 12, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC—The nation’s oldest consumer organization, the National Consumers League (NCL), today lauded California Governor Jerry Brown for signing into law Senate Bill 459, an employment bill addressing employee misclassification. NCL has been advocating for tougher wage theft penalties and sent Governor Brown a letter urging him to sign S.B. 459 in September of this year.

The harm caused by employee misclassification—where an employer knowingly classifies an employee as an independent contractor to avoid paying taxes and employee benefits—goes beyond workers and their families to victimize everyone from honest businesses to state treasuries and the federal government. Employees who are misclassified as ‘independent contractors’ are denied key worker rights, such as minimum wage protection, overtime pay, workers’ compensation, unemployment insurance, and anti-discrimination protections.

Employers who illegally classify their workers as independent contractors shortchange the government by skirting payroll taxes and Social Security & Medicare, while also giving unscrupulous businesses a competitive advantage by enabling them to offer their services at a lower cost than honest employers; leaving lawful businesses paying higher rates of workers’ compensation and losing out on bids.

Between 2005 and 2007, audits conducted by the California Employment Development Department recovered a total of $111,956,556 in payroll tax assessments, $18,537,894 in labor code citations, and $40,348,667 in assessments on employment tax fraud cases.  With increases in employee misclassification, California is likely losing out on over $112 million in badly needed state revenue.

California Senate Bill 459 will establish monetary penalties for businesses that misclassify their workers. The new law imposes fines that range from $5,000 to $15,000 for each misclassification violation for first time offenders and $10,000 to $25,000 per violation for repeat offenders.

“Laws like the one recently passed in California are an important step towards ensuring that American workers receive what they are lawfully owed,” said Michell K. McIntyre, Project Director of NCL’s Special Project on Wage Theft.  “Wage theft occurs in industries across the board and the only way to fight back is to hit unlawful businesses where it hurts the most- the pocket book.”

To read NCL’s letter to Governor Brown, click here.

###

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 on government guidelines on food marketing to children – National Consumers League

/in /by

October 12, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC—The National Consumers League (NCL) has issued the following statement regarding the voluntary guidelines issued by the Interagency Working Group on Food Marketing to Children:

“NCL, the nation’s oldest consumer advocacy organization, commends the Interagency Working Group for its thoughtful, science based recommendations.

The Interagency Working Group, made up of the U.S. Department of Agriculture, the Food and Drug Administration, the Centers for Diseases Control and Prevention and the Federal Trade Commission, issued voluntary guidelines earlier this year.  These recommendations to the industry are based on sound science and established certain nutrition thresholds for the marketing of food to children.  These thresholds would promote the marketing of healthy foods and discourage the marketing of foods low in nutritional content or high in fat, sugar or sodium.

The food industry has reacted negatively to these guidelines without justification.  One of the major criticisms is that these recommendations are “backdoor” regulation, despite the fact that the Interagency Working Group’s recommendations are completely voluntary.

NCL urges the Interagency Working Group to maintain strong guidelines and to continue to base their recommendations on sound science.  With nearly one-third of our children overweight or obese, concrete steps must be taken.  The Interagency Working Group’s science based recommendations are a first step and NCL strongly supports them.”

###

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 hails CPSC decision to move forward with developing national table saw safety standards – National Consumers League

/in /by

October 5, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC—The nation’s oldest consumer organization, the National Consumers League (NCL), today lauded a U.S. Consumer Product Safety Commission (CPSC) vote on an Advance Notice of Proposed Rulemaking (ANPR) to move forward on achieving a national safety standard for table saws.

According to CPSC’s own data, consumers suffer 40,000 table saw injuries each year, 4,000 of which are finger amputations. That translates into 10 finger amputations every day for those using table saws.

NCL has been advocating for table saw safety standards since November of 2010, when NCL a sent a letter to the Chairman and each of the other four CPSC Commissioners, stating that: “NCL strongly urges the Commission to take action toward a performance standard for table saw safety.” In May of 2011, NCL brought table saw victims from across the country to CPSC headquarters to share their debilitating injuries with CPSC Chairman Inez Tenenbaum. The letter and victim profiles are highlighted below.

NCL Letter to CPSC

Victim Profiles

“We are greatly encouraged by the CPSC’s unanimous 5-0 vote in favor of moving forward with the Advance Notice of Proposed Rulemaking regarding table saw safety,” said Greenberg.

“With table saws, clearly we have a pattern of injury, we have technology to prevent the injuries, and we can do so for a reasonable cost. The CPSC is greatly advancing the cause of protecting the 40,000 consumers each year who are injured unnecessarily by table saws. We applaud the Chairman for her leadership and look forward to working with her and the Commission in the months to come,” Greenberg said.

###

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.

2011 Trumpeter Awards: NCL to honor FDA Commissioner Dr. Margaret Hamburg and AFT President Randi Weingarten for careers in service – National Consumers League

/in /by

October 4, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, D.C.—The National Consumers League will honor Federal Drug Administration (FDA) Commissioner, Dr. Margaret Hamburg, and American Federation of Teachers President, Randi Weingarten, with its highest honor, the Trumpeter Award, Thursday, October 6, in Washington DC. The event will bring together a diverse group of labor unions, consumer advocates, organizations, and industries.

“The Trumpeter Award is NCL’s highest honor, given to leaders who are not afraid to speak out for social justice and for the rights of consumers. No one fits that description better than Dr. Peggy Hamburg and Randi Weingarten,” said NCL Executive Director Sally Greenberg. “Their dedication to improving the quality of life for workers and consumers in the United States has earned them this year’s Trumpeter Award.”

NCL will also be honoring Paheadra Robinson, Director of Consumer Protection at the Mississippi Center for Justice, with the Florence Kelley Consumer Leadership Award, named for NCL’s early leader and awarded to grassroots consumer advocates.

The event will feature a reception, dinner, and speaking appearances by the three honorees, as well as:

Ann F. Lewis, President, No Limits Foundation

Jennifer Donelan, Reporter, ABC7 / WJLA-TV

Martha Bergmark, Founding President and CEO, Mississippi Center for Justice

Neal Gregory, Patient Advocate, Mended Hearts

What: National Consumers League’s 2011 Trumpeter Awards Dinner

When: Thursday, October 6, 2011 | 6 p.m. Reception | 7 p.m. Dinner and Presentation of Awards

Where: Capital Hilton, 1001 16th Street NW, Washington, DC

Questions or to RSVP: Larry Bostian, National Consumers League 202-835-3323

###

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 group urges quick FDA action on deadly cantaloupe outbreak – National Consumers League

/in /by

September 30, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC- The National Consumers League is calling on the FDA to act swiftly to warn consumers about deadly cantaloupes and speed the release of guidelines and regulations regarding the safe production of produce.  A recent deadly outbreak of listeria – a foodborne pathogen – has been linked to the “Rocky Ford” brand coming from Jensen Farms in Colorado. The root cause of the contamination has not yet been determined.

“This is a deadly outbreak that has already killed 13 and sickened 72 people. The FDA must act immediately to alert consumers and get these cantaloupes out of our food supply,” said Teresa Green, NCL’s food safety expert. “We have no time to waste.”

The cantaloupes are contaminated with the pathogen Listeria monocytogene, a serious and sometimes lethal foodborne illness. The elderly, those with weakened immune systems and pregnant women and their babies are especially vulnerable to infection.  Listeria monocytogene has a mortality rate of 16 percent.

Jensen Farm cantaloupes were recalled on September 14, 2011 and FDA is working with state and local partners to ensure that all contaminated melons are removed from commerce. Nevertheless, due to listeria’s long incubation period, which ranges from two weeks to two months, new cases may continue to arise.

“NCL urges consumers to check with their supermarkets to learn whether their cantaloupes are from Jensen Farms. We also urge restaurants and stores with salad bars or otherwise selling cantaloupes to ensure that they are not serving the melons from Jensen Farms,” said Green.

“Consumers, restaurants or anyone else serving cantaloupe must check to see where the fruit came from. If they discover they have Jensen Farms’ melons, dispose of them immediately.”

NCL also urges consumers to thoroughly clean and sanitize any kitchen and refrigerator surfaces that might have come into contact with infected melon.  Any other food that may have come into contact with a contaminated cantaloupe should also be disposed of.  Consumers should be aware that the cold temperatures of a refrigerator do not kill listeria.

In light of this outbreak and the devastating toll it has taken, the National Consumers League urges FDA to speed up the release of guidelines and regulations for the safe production of cantaloupe and other produce.

###

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 spotlight airline greed and hidden fees – National Consumers League

/in /by

September 14, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

WASHINGTON, D.C. – In a letter to the CEO of the Air Transport Association, a coalition of consumer interest groups today condemned airline executives for two major anti-consumer moves over the last few months — pocketing tax monies that should have gone to consumers and continuing to obscure their proliferating airline fees.

First, many airlines chose to pocket nearly $500 million during the temporary shutdown of the U.S. Federal Aviation Administration (FAA) rather than refund the discontinued excise tax charges and other government fees. The Consumer Travel Alliance, Consumers Union, National Consumers League, Consumer Action, US PIRG, AirlinePassengers.org, Association of Airline Passenger Rights and Consumer Federation of America noted in the letter that the majority of airlines actually raised their airfares rather than pass this money onto consumers as savings.

The FAA’s taxing authority expired on July 23 when Congress failed to extend the reauthorization of the agency. At the same time, the Air Transport Association was delivering newspaper advertisements to Senate and House offices, calling for tax reductions in order to provide consumers more bang for their dollar.

The airlines that increased their airfares were able to collect nearly $70 million a day, almost $500 million in total, before the FAA’s taxing authority was reinstated on Aug. 8th.

“This could have been a profound teaching moment,” the consumer interest groups wrote, “regarding the benefits of lower aviation taxes and fees. Instead, we are chagrined that some airlines chose to pocket the substantial windfall created by the expiration of taxing authority. Rather than doing right by their customers, most airline CEOs decided to line their corporate pockets.”

The letter also urged the ATA to insist the airlines adopt greater transparency with respect to airline fees that can add substantial amounts to ticket prices. When the Department of Transportation’s (DOT) latest rules came into effect requiring airlines to inform consumers of the variety of optional fees related to the cost of an airline ticket, many of ATA airline members chose to present the information in ways that do not meet the test for a “prominent” link on the home page. This is despite the DOT’s clear intent to provide transparency for consumers with respect to airline fees that can add substantial amounts to ticket prices.

“Actions speak louder than words,” the groups wrote. “Airlines, like all businesses, should be driven by customer service, price transparency and honest disclosures. Suffice it to say, we are disappointed in most of the airline industry’s response to the new DOT rules.”

The consumer groups are calling for a meeting with ATA and making sure that the Secretary of Transportation and the appropriate congressional committee chairmen and ranking members are aware of these anti-consumer airline actions.

To learn more about these consumer interest groups visit their websites:

AirlinePassengers.org, www.airlinepassengers.org

Association of Airline Passenger Rights, www.flyfriendlyskies.com

Consumer Action, www.consumer-action.org

Consumer Federation of America, www.consumerfed.org

Consumer Travel Alliance, www.consumertravelalliance.org

Consumers Union, www.consumer.org

National Consumer League, www.nclnet.org

U.S. PIRG, Website: www.uspirg.org

###

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 on USDA’s announcement to regulate six additional strains of E. coli – National Consumers League

/in /by

September 13, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington—The National Consumers League has issued the following statement regarding today’s U.S. Department of Agriculture (USDA) announcement:

“The National Consumers League applauds USDA’s announcement that the agency will add six strains of non-0157 shiga toxin-producing E. coli (STEC), known as “the Big Six” to its list of adulterants.

Foodborne illness impacts 1 in 6 Americans annually, leading to over 120,000 hospitalizations and 3,000 deaths annually. According to the Centers for Disease Control and Prevention (CDC), E. coli is a major source of illness and non-0157 STECs account for nearly two-thirds of E. coli infections.

USDA’s announcement means that American consumers will now be protected from “the Big Six” for the first time. These measures will ensure that the U.S. food supply is even safer in coming years. The National Consumers League, which has worked in concert with other consumer groups in support of this measure, commends the USDA on its decision to regulate these dangerous strains of E. coli.”

#####

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 on the 10th anniversary of 9/11 terrorist attacks – National Consumers League

/in /by

September 11, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC—The National Consumers League posted this statement on the 10th Anniversary of the 9/11 terrorist attack on the United States.

“The National Consumers League pays tribute to the nearly 3,000 people who were killed in the 9/11 attacks on the United States. On this solemn 10 year anniversary of the unspeakable series of terrorist attacks on the United States, the NCL joins with our fellow Americans in mourning the loss of so many innocent men, women and children.

The forces of evil who orchestrated this despicable attack were motivated by a contempt for the democracy we hold so dear in the United States, and for a way of life that respects and protects the rights of all people. We also acknowledge the many first responders – police officers, fire fighters and emergency medical teams – many of whom were public employees – who lost their lives rushing into burning buildings trying to save the victims of the 9/11 attacks.

We join with President Obama – who spoke at Washington’s Kennedy Center tribute this evening- in redoubling our commitment to democratic ideals, and in paying tribute to the thousands of Americans, and their surviving families, who died 10 years ago in the terrorist attacks on the United States. “

###

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 launches 2011-2012 program year at lifesmarts.org – National Consumers League

/in /by

September 12, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC—The 2011-2012 LifeSmarts season is officially underway this week, with a new competition year going live at the program’s online home, www.lifesmarts.org, along with a variety of new resources for adult and youth participants. LifeSmarts is an educational competition run by the National Consumers League that tests middle school and high school students nationwide on real-life consumer issues through online quizzes and live contests. It culminates in the annual national LifeSmarts championship, where winning teams and individuals are awarded academic scholarships and prizes.

“We’re thrilled to be launching the 18th year of LifeSmarts,” said Program Director Lisa Hertzberg. “LifeSmarts delivers real-world knowledge to students and allows them to shine in competitions where they demonstrate all that they have learned,” said Hertzberg. “It also provides thousands of teachers across the country access to much-needed consumer curriculum, which they unfortunately often aren’t getting elsewhere.”

Over the years, LifeSmarts has steadily grown in numbers of student and adult participants, state partnerships, and corporate sponsorships. In the most recent season, an estimated 100,000 students and teachers across the country answered more than 3.5 million LifeSmarts questions.

“As the consumer marketplace has become more challenging to navigate, LifeSmarts content is keeping up, preparing our teens and tweens to become the next generation of smart consumers and workers,” Hertzberg said.

LifeSmarts provides participants with practical advice and information on consumer issues ranging from personal finance and health and safety to the environment, technology, and consumer rights and responsibilities. Starting online each fall, the competition progresses to live state play-offs, and then builds to a high-spirited National Championship, which will be held in 2012 in Philadelphia, Pennsylvania. At last year’s national competition held in Hollywood, California, students on teams from 32 states competed over the course of four days. In the final match, the state champion team from Nickerson High School, Kansas, was crowned the 2011 national champs, beating out the team from New Hampshire.

NCL partners with coordinators in more than 30 states, including Better Business Bureaus, credit unions, state attorneys general and consumer protection agencies, State FCCLA organizations, Jump$tart Coalitions, and others, to staff and promote the program. Interested students and adults can visit the LifeSmarts Web site to connect with the program in their state.

“The National Consumers League’s mission is to inspire confidence and safety in the marketplace,” said Sally Greenberg, NCL Executive Director. “The LifeSmarts program, our consumer education initiative for youth, fosters students’ understanding of consumer issues and provides them with real-world knowledge they will need to take charge of their lives.”

New this fall at www.lifesmarts.org are dozens of up-to-the-minute teaching resources for coaches, including innovative lessons housed within the LifeSmarts U virtual campus, daily practice quizzes, question-of-the-day calendars, and more, all utilizing thousands of new competition questions.

Major LifeSmarts contributors include Visa, Experian, Toyota Financial Services, Western Union, American Express, American Century Investments Foundation, Bridgestone Retail Operations, LLC, McNeil Consumer Healthcare, TracFone Wireless, Inc., and others. To see a full list of current LifeSmarts contributors, visit www.lifesmarts.org.

To test your LifeSmarts, take a sample quiz at https://start.lifesmarts.org/. From there, click on “Daily Quiz” to get started.

###

About the National Consumers League and LifeSmarts

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

Tweens and cell phones: What parents need to know during back-to-school season – National Consumers League

/in /by

September 8, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC — With school back in session across the country and the flurry of purchases that often entails, many parents may be in the market for a cell phone for their teenager. However, the age that children are getting their first cell phones is trending earlier in recent years, with many pre-teens entering the cell phone market even before high school. Helping parents navigate the complex world of a tween’s first cell phone is the goal of a new consumer guide released today by the National Consumers League (NCL), the nation’s pioneering consumer organization.

The guide is available online at www.nclnet.org/technology.  It provides a range of tips to help parents choose between contract-based and prepaid services, manage data and texting costs, and set “rules of the road” for safe and smart tween phone use.

“Figuring out how to manage a child’s use of one of these high-tech gadgets can often require the skills of a seasoned diplomat, the steely nerve of a tightrope walker and the tech savvy of a Silicon Valley computer geek,” said Sally Greenberg, NCL Executive Director. “Giving parents clear advice on how to handle a tween’s first phone is why we put this guide together.”

According to the Pew Internet & American Life Project, only 5 percent of 16-year-olds say that they received their first cell phone at age 11 or before. Conversely, 57 percent of 12-year-olds report getting their first phone that young. According to a 2007 study by C&R Research, 46 percent of children ages 9-11 and 65 percent of 12- to 14-year-olds own a cell phone.

“Kids used to get their first phone as they were making the transition from middle school to high school,” said Greenberg. “But the market for first-time cell phones is trending younger, and we want to help parents understand and manage the unique challenges of providing their younger children with a cell phone strategy that makes sense for their family.”

NCL’s new guide is focused on helping tweens’ parents with easy-to-use tips that help them pre-plan for the shopping experience, set expectations with a tween before a phone is purchased, narrow down their cell phone choices, and manage their tweens’ usage once the phone is purchased.

Key tips include:

  • Texting is one of the biggest cost tweens’ parents should account for.  Consider a larger bucket of texts (or unlimited texts) to avoid costly pay-as-you-go texting rates.
  • However, consider limiting the tween’s allotment of text messages if you are concerned about inappropriate texting.  Recent research suggests that limiting texts messages relates to lower levels of inappropriate or dangerous texting behavior.
  • Take your tween with you when shopping so they can test different phones, but consider buying online to take advantage of online-only deals.
  • Make sure to set a monthly cell phone budget, and discuss acceptable use of the phone so that your tween knows who they can and can’t call or text.

NCL’s tween cell phone consumer guide was made possible thanks to an unrestricted educational grant from TracFone Wireless.

###

About the National Consumers League

The National Consumers League is America’s pioneering consumer organization, dedicated to promoting and protecting the rights of workers and consumers in American and abroad. To learn more, please visit www.nclnet.org.