September 14, 2009

Newly released DOL list of goods produced by child labor and forced labor may help reduce the number of exploited child and adult laborers

Contact: 202-835-3323, media@nclnet.org

Washington, D.C.—The National Consumers League (NCL) today hailed the release of a long-awaited report identifying over 100 goods produced by child or forced labor in more than 50 countries around the world.

“According to the International Labor Organization, extreme poverty compels more than 200 million children to perform child labor around the world. This new list of products tainted by child labor will be an invaluable tool for consumers who want products free from forced and child labor,” said NCL’s Executive Director Sally Greenberg.

“Most Americans and most consumers in the world market would not choose to purchase goods known to be produced by exploited children or forced laborers—at any price,” noted Secretary of Labor Hilda Solis in a foreword to the report, which was produced by DOL’s Bureau of International Affairs Office of Child Labor, Forced Labor, and Human Trafficking.

Of the 122 goods indentified in the report, the majority are in agriculture, an industry in which, globally, seven in 10 working children toil. Many of the most common agricultural products end up in the homes of American consumers, including cotton, sugar, tobacco, coffee, rice, and cocoa.

“Manufactured goods” (including clothing, footwear, and carpets) and “mined or quarried goods”—bricks, coal, gold, and minerals such as coltan used in electronics —follow as the next two leading categories of child labor.

Founded in 1899, NCL, the nation’s oldest consumer advocacy organization, has historically fought to reduce abusive child labor and to increase protections for American workers. For the last 20 years, NCL has coordinated the Child Labor Coalition (CLC), a group of 20-plus organizations committed to reducing exploitative child labor and child trafficking. The CLC and its members are working to decrease child labor in many of the products and countries cited in the report including cotton in Uzbekistan, cocoa in West Africa, rubber in Liberia, and shrimp in South Asia.

Mandated by language in the Trafficking Victims Protection Reauthorization Acts of 2005 and 2008, the report is is charged with examining foreign child labor; however, it briefly notes that the United States is not without child labor problems. DOL’s Wage and Hour Division found 4,734 minors illegally employed in fiscal year 2008. In 40 percent of the child labor violations cited, children were working in hazardous conditions or using equipment deemed too dangerous for minors to use.

“Hundreds of thousand of children are allowed to work in American agriculture on non-family farms at very young ages because of loopholes in U.S. child labor law,” said Reid Maki, NCL’s Director of Social Responsibility and Fair Labor Standards. “Many of these child farm workers are only 12- and 13-years-old, and they work because they are from poor families. We should clean up our own child labor problems if we are going to ask other countries to stop the exploitation of child workers.”

Enhanced enforcement efforts at DOL have begun to address concerns about very young children working in agriculture. Earlier this year, DOL fined five North Carolina blueberry growers for employing minors under the legal age.

“We’re encouraged by expanding enforcement efforts, and this list is a great starting point for consumers, companies, and government officials to devise strategies to reduce child and forced labor in specific products,” said Greenberg. “As the report points out, ‘When problems are known and understood, they can be addressed’.”

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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.

September 9, 2009

National teen consumer initiative kicks off for new academic year with new resources and supporters for biggest year yet

Contact: 202-835-3323, media@nclnet.org

Washington, D.C.—The National Consumers League announced the start of the 2009-2010 LifeSmarts season, with a new competition year beginning Sept. 14 at the program’s online home, www.lifesmarts.org, along with a variety of new resources for state coordinators, educators, and youth. LifeSmarts is an educational competition that tests middle school and high school students nationwide on real-life consumer issues through online quizzes and live contests. While the competition formally begins Sept. 14, students and coaches may register online and begin taking practice quizzes and downloading resources today.

“We’re thrilled to be launching the 16^th year of LifeSmarts,” said Program Director Lisa Hertzberg. “This program delivers real-world knowledge to students and then allows them to shine in competitions where they demonstrate all that they have learned,” said Hertzberg. In its first 15 years, LifeSmarts has steadily grown in numbers of student and adult participants, state partnerships, and corporate sponsorships. “Most importantly, the breadth and depth of the program’s content has continued to evolve, too” said Hertzberg. “We’re proud to be preparing our teens and tweens to become the next generation of smart consumers and workers” she added.

Each year, thousands of students answer millions of questions 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 2010 in Miami Beach, FL. At last year’s national competition held in St. Louis, MO, students on the state champion team from Oconto High School in Wisconsin were crowned the 2009 national champs.

NCL partners with coordinators in 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, gives students the tools to make smart decisions and feel confident about their place in today’s fast-paced marketplace.”

New this fall at www.lifesmarts.org are dozens of up-to-the-minute teaching resources for coaches, including innovative personal finance lessons made possible by an unrestricted educational grant from Visa. Other major LifeSmarts contributors include Experian, American Century Investments, American Express, Bridgestone/Firestone, McNeil Consumer Healthcare, Monsanto, NextGen Web, Procter & Gamble, Toyota Financial Services, Toys“R”Us, Vreizon, and Western Union.  To see a full list of current LifeSmarts contributors, visit www.lifesmarts.org. To test your LifeSmarts abilities, take a sample quiz at https://start.lifesmarts.org/. From there, click on “Daily Quiz” to get started.

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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.

August 6, 2009

Contact: 202-835-3323, media@nclnet.org

WASHINGTON, DC –- The National Consumers League today urged members of the Senate to support the nomination of Judge Sonia Sotomayor to the Supreme Court of the United States. The NCL believes that Judge Sotomayor’s long years of legal experience, including seventeen years on the bench, service as a prosecutor in New York City, and her civic involvement in groups like the Puerto Rican Legal Defense Fund make her unusually qualified to sit on the nation’s highest court.

“In Judge Sotomayor’s nomination, we see someone who we think will be a fair and compassionate Supreme Court justice,” said Sally Greenberg, Executive Director of the National Consumers League. “Judge Sotomayor also represents the American Dream – that education and hard work can mean that even those who grow up with few material advantages can rise to the highest levels of our legal system, the Supreme Court of the United States.”

Since 1899 the League has championed the concerns of both consumers and workers. NCL looked at Judge Sotomayor’s decisions pertaining to labor matters and found that the Judge, having grown up in public housing in the Bronx as the daughter of a factory worker, has consistently interpreted labor laws to protect those who need it most. She has ruled in favor of workers to be free against discrimination in the workplace, to collect their rightful wages and receive their rightful benefits. She has ruled in favor of litigants seeking freedom from persecution in their countries for union activity.

The League also reviewed the small number of Judge Sotomayor’s decisions pertaining to consumer matters and found her reasoning and conclusions to be fair and balanced. She seems to understand the need for strong consumer protections and supports federal agencies and laws that provide those protections. NCL’s brief review of Judge Sotomayor’s consumer decisions can be found at NCL’s Savvy Consumer blog.

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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.

July 22, 2009

Stricter rules on consumer and expert endorsements, blogola, and fake news needed, says consumer group

Contact: 202-835-3323, media@nclnet.org

WASHINGTON, DC –- Appearing today before a Senate subcommittee, the National Consumers League (NCL) called for stricter rules regarding the use of consumer and expert testimonials in advertising. The consumer group also urged lawmakers and regulators to strongly consider establishing guidelines regarding disclosure by bloggers and others of compensation received in return for product and service reviews online. The League also described as “extremely troubling,” the proliferation of advertising masquerading as real news.

“Now more than ever, consumers need to be assured that products and services advertised to them deliver on what they promise,” said NCL Executive Director Sally Greenberg. “We believe that the overuse of consumer testimonials and expert endorsements has crossed the line from aggressive marketing to outright deception.”

The hearing before the Senate Commerce Committee’s consumer protection subcommittee was prompted by revisions being undertaken at the Federal Trade Commission (FTC) of the agency’s guidelines regarding the use of consumer testimonials and expert endorsements in advertisements. Changes under consideration include requiring advertisers to prominently disclose average results when atypical results are shown, such as in diet pill commercials. Other changes would require that bloggers and other online reviewers disclose when they receive payment or gifts from advertisers in return for a review. NCL also urged regulators and lawmakers to investigate whether the undisclosed use of video news releases by news organizations should fall under the FTC’s testimonial advertising guidelines.

“We find the rampant lack of disclosure by broadcasters that they are being paid to air VNRs extremely troubling,” said Greenberg. “Citizens of a democratic society should have confidence that the media is not passing off advertisements as hard news.”

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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.

July 14, 2009

New Fraud Center Statistics Underscore Call for Increased Federal Fraud Fighting

Contact: 202-835-3323, media@nclnet.org

WASHINGTON, DC – Appearing today before a Senate subcommittee, the National Consumers League (NCL) said that frauds linked to the bad economy are on the rise and called upon federal fraud cops to “vigorously enforce existing anti-fraud statutes and regulations” and redouble their efforts to educate consumers about the growing threat of recession-fueled fraud.

NCL warned that consumers’ thinly-stretched pocketbooks have “increased their vulnerability to fraudsters offering promises of extra income. The consumer group warned that nearly one in three consumers could be at risk for fraudulent work-at-home schemes and that fake check complaints involving phony sweepstakes and bogus “mystery shopper” jobs continue to increase.

Top Scams, January – June 2009 (read full report)

1. Fake Check Scams
2. Internet: Gen Merchandise
3. Prizes/Sweepstakes/Free Gifts
4. Phishing/Spoofing
5. Nigerian Money Offers (not prizes)
6. Business Opportunities/Franchises/Distributorship
7. Advance Fee Loans, Credit Arrangers
8. Friendship & Sweetheart Swindles
9. Internet: Auctions
10. Lotteries/Lottery Ticket Buying Clubs

“Consumers face a double bind. The economic crisis has made them increasingly vulnerable to fraud while local agencies that investigate scams and enforce the laws are shutting their doors, leaving consumers with fewer avenues to protect their interests,” said Greenberg. “Absent increased action at the federal level to investigate and prosecute scam artists, consumers will be caught between the proverbial rock and a hard place.”

In support of Greenberg’s testimony, NCL’s Fraud Center released its semi-annual ranking of the top telemarketing and Internet scams plaguing consumers so far in 2009, with fake check scams continuing to top the list. For the first six months of 2009, fake check scams made up more than 44 percent of the total complaints NCL received, with more than half of these complaints (55 percent) involving a fraudulent mystery shopper job or phony sweepstakes winnings. Average losses per victim were more than $3,000.

Phony business opportunity scams — which include fake franchises and distributorships – were not among the most commonly reported scams to the Fraud Center in 2008. However, in the first six months of 2009, they have risen into the top ten most-reported scams. Earlier this year, an NCL-commissioned survey found that 31 percent of respondents were more likely to consider starting a home-based business due to the current economic climate. NCL believes that this is a reflection of a weak economy, loss of jobs, and consumers’ eagerness to find viable employment.

“The worsening economy has clearly had an impact on consumers’ vulnerability to fraud.” said John Breyault, NCL Vice President for Public Policy, Telecommunications and Fraud. “Consumers should be wary that scammers are eager to prey on those in greatest financial need.”

NCL’s Fraud Center is unique among consumer organizations. It was created in 1992 to combat the economic menace of telemarketing fraud. In 1996, it expanded its fraud-fighting efforts to include scams in cyberspace. The Fraud Center’s www.fraud.org and www.fakechecks.org. Web sites are a consumer resource with information on the most common telemarketing and Internet scams. Consumers can report suspected fraud there using NCL’s online complaint form. These reports are then transmitted to the appropriate agencies among NCL’s law enforcement and consumer protection partners in the U.S. and Canada. These reports alert authorities to emerging scams and help put them in touch with victims, while providing the necessary ammunition to investigate and shut down fraudulent operations.

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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.