NCL condemns illegal firings of FTC commissioners 

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829

March 18, 2025: Washington, DC — Today, President Trump unlawfully terminated Commissioners Alvaro Bedoya and Rebecca Slaughter from their positions at the Federal Trade Commission (FTC). Commissioner Slaughter was terminated more than five years before her term would expire; Commissioner Bedoya was terminated more than two years before his term would expire.

The Commission conducts important work to protect Americans from a range of harms, including elder fraud, children’s privacy violations, and deceptive advertising. Today’s egregious violation of the consumer protection agency’s independence jeopardizes its bipartisan mission to protect everyday Americans from marketplace harms, even those perpetrated by politically-connected individuals.

“Consumer protection work is not a partisan game,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “With consumers losing more than $150 billion to fraud each year, we need consistent and reliable watchdogs at our law enforcement agencies. The firing of dedicated public servants because they belong to the wrong political party will make the FTC’s work even harder. NCL unequivocally condemns these firings.”

Despite its hamstrung resources, the Commission does irreplaceable work to defend Americans from bad actors like scammers and monopolists. The agency returned $324 million in refunds to Americans in 2023. Every $1 of the FTC’s costs return an estimated $14 in benefits to consumers through its consumer protection and competition law enforcement efforts.

By illegally subjecting commissioners to White House control, President Trump has sent a message that common-sense consumer protection work should not continue unless it serves his political goals. Congress established independent agencies like the FTC, the Equal Employment Opportunity Commission, and the Federal Elections Commission to ensure that federal oversight of critical issues is insulated from electoral, partisan, and personal games.

The Supreme Court has already ruled that a president cannot fire FTC commissioners simply for political purposes. The Supreme Court upheld this precedent as recently as 2020.

Further reading:

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About the National Consumers League (NCL)
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.

House budget resolution bad for consumers and America

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Budget blueprint would slash Medicaid and eliminate vital manufacturing and green energy policies

Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829

Washington, DC – Today, House Republicans released a budget resolution, which guides federal spending and revenue policies and initiates the reconciliation process.  The resolution calls for at least $1.5 trillion in spending reductions and $4.5 trillion in tax cuts.  The accompanying “budget blueprint” lays out a series of proposals that would eliminate core manufacturing and clean energy policies established in the Inflation Reduction Act and severely weaken Medicaid, which provides health insurance for nearly 72 million Americans.

“So much for America first,” said Sally Greenberg, CEO of the National Consumers League. “The House Republican’s budget resolution puts everyday Americans last and corporate interests first.  No matter where you live—in a red state or blue state—this budget will hurt consumers. The proposed draconian cuts to Medicaid could deprive millions of hardworking Americans of access to affordable, quality healthcare.  Eliminating vital manufacturing and clean energy policies will harm our nation’s competitiveness, workforce, environment, and health. All of this for the sake of tax breaks for ultra-wealthy corporations that merely pocket the taxes and ship jobs overseas anyway. This is bad for consumers and bad for America.”

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About the National Consumers League (NCL)
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 nclnet.org.

NCL condemns Trump’s efforts to undermine CFPB’s ability to protect consumers 

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829

Washington, DC — The National Consumers League (NCL) strongly condemns the Trump Administration’s reported plans to have the Office of Management and Budget (OMB) or the Department of Treasury supervise CFPB operations. Such steps would undermine critical consumer and small business protections, cost hardworking Americans their jobs, and leave millions of consumers more vulnerable to predatory financial practices.

The CFPB was established as an independent agency to protect consumers from deceptive practices in the financial marketplace, and it has been a vital safeguard for American consumers since its creation in 2011. Since that time, the agency has recovered $19.7 billion for consumers.

“We are deeply concerned about the potential consequences of these actions,” said John Breyault, Vice President of Public Policy. “It is crucial that we keep the CFPB strong, independent, and fully operational in order to protect consumers nationwide from financial harm.”

Congress explicitly designed the CFPB to be an independent agency within the Federal Reserve System. Executive actions to place the agency under OMB or Treasury supervision are likely illegal. NCL believes that undermining the CFPB’s independent structure would take the country backward, eroding the essential consumer protections that have helped combat abusive practices in the financial industry, such as payday lending, illegal credit card fees, deceptive loans,  and mortgages, and more.

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About the National Consumers League (NCL)

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 blasts NHTSA’s delay and reconsideration of automatic emergency braking standard

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Biden-era standard was projected to save hundreds of lives and prevent thousands of injuries each year

Media Contact: Lisa McDonald, Vice President of Communications, (202)- 207-2829

Washington, DC – Today, the National Highway Traffic Safety Administration (NHTSA) delayed the implementation of a Biden-era rule that would require all passenger cars and light trucks to be equipped with automatic emergency brakes (AEB), which are automobile safety systems that automatically detect when a frontal collision with a vehicle or pedestrian is imminent and automatically applies the brakes to prevent or mitigate impact. The final rule was projected to save at least 362 lives and mitigate 24,321 injuries each year. Manufacturers would have to come into compliance with the rule by 2029.

“Mistakes should not cost lives, and with modern automobile safety technologies, they no longer have to,” said Daniel Greene, Senior Director, Consumer Protection & Product Safety Policy. “The Biden Administration took bold action to address the automobile safety crisis by requiring automatic emergency brakes to be standard safety features, not luxury items, on all new cars and light trucks. The Biden-era rule balanced the need to support safety innovation and compliance while addressing unacceptable carnage on our nation’s roads. Delaying or weakening these standards simply makes our streets more dangerous.”

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About the National Consumers League (NCL)

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 nclnet.org.

NCL supports click-to-cancel legislation in Maryland Senate

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January 21, 2025

Media Contact: Lisa McDonald, Vice President of Communications, (202)- 207-2829

Washington, DC – Today, NCL submitted testimony in support of SB49 before a Thursday hearing in the Maryland Senate Finance Committee.

 

January 21, 2025

The Honorable Pamela Beidle, Chair
Senate Finance Committee
Maryland General Assembly
3 East Miller Senate Office Building
Annapolis, MD 21401

RE: NCL support for SB 49 (Consumer Protection-Automatic Renewals)

Dear Chair Beidle,

On behalf of the National Consumers League (NCL), the nation’s oldest consumer advocacy organization, I write to express our strong support for SB 49 (cross-filed with HB 107), a bill introduced by Senator Gile that would promote fairness in the marketplace for automatically renewing subscription contracts.^1 As an organization that has long championed consumer rights and the protection of vulnerable populations from unfair, abusive, and deceptive trade practices, we are pleased to see Maryland considering such important legislation. We urge the committee to favorably report the measure with amendments to strengthen the legislation even further.

The average consumer pays two-and-a-half times what they originally estimated on monthly subscriptions.^2 When an individual attempts to cancel an automatic renewal, they often encounter burdensome cancellation processes. One survey found that more than half of respondents
reported an average of three months to cancel unwanted recurring payments.^3 That same study discovered that 71% of individuals lost more than $600 a year in unwanted payments.

NCL has been an active supporter of auto-renewal protections in other jurisdictions, including at the Council of the District of Columbia^4 and the Federal Trade Commission,^5 where rules set clear guidelines for both the provision and cancellation of automatically renewing subscription contracts. These measures were designed to enhance transparency, prevent deceptive practices, and ensure that consumers are able to easily cancel such subscriptions without unnecessary obstacles or undue financial burdens. We believe that SB 49, which reflects many of these same principles, is a step in the right direction toward safeguarding Maryland consumers from exploitation through automatic renewal clauses that can trap them into paying for services they no longer wish to receive or did not realize they signed up for in the first place.

While the Federal Trade Commission has finalized its click-to-cancel rule to take effect nationwide,^6 the future of this federal regulation is uncertain as a new presidential administration and new majorities in Congress have the means to undo the critical consumer protection. Regardless of the federal regulation’s status, Maryland has the opportunity to enact even stronger protections for its citizens through SB 49.

Compared to the federal rule, Senator Gile’s legislation goes further in protecting Marylanders by requiring sellers to provide an annual notice to consumers enrolled in an autorenewal plan, clearly reminding them of the terms of the plan and the cancellation methods available. Additionally, SB 49 includes safeguards against free trial conversion traps, a provision that is absent in the federal regulation.

There are however a few improvements that the committee should implement to better protect Maryland consumers.

First, require sellers to obtain a separate consent solely for the automatically renewing piece of the product, apart from any other transaction. Consumers too often believe they are purchasing a product without knowing that they are signing up for a subscription. While the clear and conspicuous disclosures proposed in SB 49 will go a long way in reducing this unfair, abusive, and deceptive trade practice, requiring separate consent for the subscription should significantly reduce any remaining confusion.

Second, require sellers to provide a notice to consumers before each automatic and recurring payment. While the annual notice in the bill is commendable, providing the same reminder (including the terms of the plan, the amount to be charged, and the cancellation methods) before each recurring payment—whether they be annually, monthly, or similarly regular basis—would greatly lessen consumer harm.

Third, prohibit sellers from obtaining a consumer’s credit card information to begin a free trial. Too many dishonest businesses enroll consumers in free trial conversion traps, using pre-given credit card information and hidden consent for the conversion to a paid subscription. SB 49’s notice requirement before conversion should dissuade this practice, prohibiting sellers from requiring consumers to provide their credit card information to begin a free trial would eliminate this unfair, abusive, and deceptive practice entirely.

Lastly, remove the deferral to federal regulation in subsection E (lines 20 through 23 on page 5). SB 49 in its current form already includes a number of additional safeguards missing in the federal regulation. Allowing covered entities to escape their obligations under Maryland law as long as they adhere to the lesser requirements in the federal regulations would be unnecessarily self-limiting. The Federal Trade Commission itself included a deferral to the states in its regulation, stating in 16 CFR § 425.7

(a) In general. This part shall not be construed as superseding, altering, or affecting any State statute, regulation, order, or interpretation relating to negative option
requirements, except to the extent it is inconsistent with the provisions of this part, and then only to the extent of the inconsistency.

(b) Greater protection under State law. For purposes of this section, a State statute,
regulation, order, or interpretation is not inconsistent with the provisions of this part if it affords any consumer greater protection than provided under this part.^7

NCL applauds Senator Giles for her leadership on this issue and appreciates the committee’s work to protect Maryland consumers. By enacting SB 49, Maryland would join a growing list of states and localities working to curb the negative effects of automatic renewal schemes and ensure that businesses are held accountable for their marketing and contract practices. NCL supports SB 49 and urges the committee to strengthen the bill even further before favorably
reporting the measure.

Should you or your colleagues have any questions, please do not hesitate to contact me at your convenience.

 

Sincerely,

Eden Iscil
Senior Public Policy Manager
National Consumers League
edeni@nclnet.org

cc: The Honorable Antonio Hayes, Vice Chair, Senate Finance Committee
The Honorable Dawn Gile
The Honorable Andrew Prusk

 

1 “Consumer Protection – Automatic Renewals,” Maryland General Assembly, accessed January 21, 2025. https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/sb0049
2 “Subscription Service Statistics and Costs,” C+R Research, May 18, 2022. https://www.crresearch.com/blog/subscription-service-statistics-and-costs/
3 “Survey from Chase Reveals That Two-Thirds of Consumers Have Forgotten About At Least One Recurring Payment In The Last year,” Chase, April 1, 2021. https://media.chase.com/news/survey-from-chase-reveals
4 “D.C. Law 22-235. Structured Settlements and Automatic Renewal Protections Act of 2018,” Council of the District of Columbia, March 13, 2019. https://code.dccouncil.gov/us/dc/council/laws/22-235
5 “NCL welcomes FTC’s click-to-cancel rule,” National Consumers League, October 17, 2024. https://nclnet.org/ncl-welcomes-ftcs-click-to-cancel-rule/ 
6 “Federal Trade Commission Announces Final ‘Click-to-Cancel’ Rule Making It Easier for Consumers to End Recurring Subscriptions and Memberships,” Federal Trade Commission, October 16, 2024. https://www.ftc.gov/news-events/news/press-releases/2024/10/federal-trade-commission-announces-final-click-cancel-rule-making-it-easier-consumers-end-recurring 
7 “Part 425—Rule Concerning Recurring Subscriptions and Other Negative Option Programs,” Code of Federal Regulations, January 16, 2025. https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-425

 

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About the National Consumers League (NCL)
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 nclnet.org.

Protecting American Consumers: A Conversation with Sally Greenberg, CEO on Coffee with Ken

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 Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829

Washington, DC –Sally Greenberg, CEO of the National Consumer League (NCL), was recently the featured guest on Ken Biberaj’s Coffee with Ken. On Protecting American Consumers: A Conversation with Sally Greenberg, they discussed her extensive background in consumer advocacy, the history and monumental victories of NCL, and NCL’s top priorities for 2025 as a new administration is on the horizon.

“Consumer protection is a bipartisan issue – whether it is about protecting your kids, safeguarding your health, preventing fraud, or addressing junk fees,” said NCL CEO Sally Greenberg. “We can all agree on the importance of these issues.”

NCL played a critical role in shaping policies like the Fair Labor Standards Act of 1938 and the Pure Food and Drugs Act of 1906, and today, Greenberg leads efforts to protect consumers in areas like fraud, airline transparency, food labeling, and alcohol labeling. Alcohol labeling continues to be a priority and has been an unmet consumer need for the last two decades. As a general matter, NCL prioritizes science-based information and it is fundamental to all NCL’s work.

Whether it is the ever-growing issue of fraud or endless junk fees, NCL is committed to bipartisan efforts to protect all consumers. How does NCL do it? “good data, good facts, relentless advocacy and working across the aisle.”

Watch the full episode here.

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About the National Consumers League (NCL)

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 nclnet.org

NCL releases Top Ten Scams Report of 2024

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Sweepstakes and prizes are #1, while cryptocurrency scams are most expensive

Media Contact – Lisa McDonald, Vice President of Communications, (202) 207-2829

Washington, DC – Today, the National Consumers League (NCL) announces our Top Ten Scams report of 2024. The number one scam of 2024 was Prizes, Sweepstakes, and Free Gifting accounting for 38% of reported scams. However, the most expensive scam causing the most amount of financial loss was Cryptocurrency and Investment schemes. The reported median loss for cryptocurrency scams was $30,000, up from $20,000 in 2023.

2024 is the second year in a row where Phishing/Spoofing and Internet Merchandise cams joined sweepstakes scams to round out the top three fraud categories.

Scammers look to get victims to send them money via methods that lack strong consumer protections. For scams involving a financial loss, Bank Account Debit and Wire Transfer made up 33.1% and 12.9% of complaints respectively.

“Every year, complaints to Fraud.org paint a heartbreaking picture,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “It is apparent the problem of fraud is not going away on its own. Policymakers at all levels should urgently address this issue and take comprehensive action to combat this epidemic.”

The top ten scam categories reported to Fraud.org in 2024 were:

  1. Prizes/Sweepstakes/Free Gifts: 38.27%
  2. Phishing/Spoofing: 18.83%
  3. Internet: General Merchandise: 17.04%
  4. Investments: Other (incl. cryptocurrency): 6.46%
  5. Fake Check Scams: 3.83%
  6. Advance Fee Loans, Credit Arrangers: 2.91%
  7. Friendship & Sweetheart Swindles: 2.04%
  8. Family/ Friend Imposter: 1.64%
  9. Internet: Information/Adult Services: 0.72%
  10. Misc. Other: 0.60%

*Other complaint categories (e.g. scholarship/grant scams, counterfeit drugs, work-at-home scams) outside of the top ten categories make up the remaining 5.69% of complaints.

“Reporting fraud is an essential step for victims,” said NCL Consumer Services Manager James Perry. “When an individual reaches out, we can connect them with the proper resources and begin to walk them through the recovery process. The information they share also helps inform decisions around fighting these scams.”

Online scams can affect anyone, especially in the ever-changing digital world we live in today.

The 2024 Top Ten Scams Report is available here

The National Consumers League Top Ten Scams report analyzed 2,526 complaints submitted by consumers to NCL’s Fraud.org campaign in 2024. This data is self-reported by victims and should not be considered a nationally representative sample. NCL shares complaint data with a network of law enforcement and consumer protection agency partners who combine it with other data sets to identify trends in fraud and build cases.

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About the National Consumers League (NCL)

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 nclnet.org.

Statement on the death of President Jimmy Carter from NCL CEO Sally Greenberg

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January 1, 2025

The National Consumers League (NCL) extends condolences to the family, friends, and community of former President Jimmy Carter upon his death this week. In addition to being an honest and effective Commander in Chief and humanitarian who expanded access to housing for low-income families through his work on Habitat for Humanity, President Carter should also be remembered as a great consumer champion.

During his presidency, Mr. Carter championed consumer protection in a variety of ways. He appointed labor and consumer champion Esther Peterson, who also served as president of the National Consumers League, to head the White Office of Consumer Affairs. Like President Lyndon Johnson (LBJ)  before him, who first named Peterson to the post of Special Adviser to the President Jimmy Carter understood that consumer rights permeate citizens’ experiences with companies and with government.

Unlike his processor, Mr. Carter gave Mrs. Peterson a staff and access to him personally in the Oval Office. As such, Mr. Carter elevated consumer protection far beyond LBJ’s decree. Along with re-appointing Esther Peterson, Carter issued a historic decree in April of 1978, “Memorandum from the President on Consumer Affairs,” the first of its kind, directing the heads of every government agency to take a series of steps to prioritize consumer protection. 

Notably, Mr. Carter stated that “the Agency for Consumer Advocacy is mainly designed for participation in very large administrative proceedings; it is only one of a number of steps which will better protect the consumer.”

On a personal note, I had the honor of meeting President Carter in 1978, when he appointed my aunt, Geri Joseph, to serve as Ambassador to the Netherlands. I was lucky to be able to attend her swearing-in ceremony in the Oval Office. I found him to be kind and charming; despite a number of pressing matters, he took the time to introduce himself to every member of our family who was gathered for the occasion. 

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NCL stands firm against threats to the Consumer Financial Protection Bureau

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December 3, 2024

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

Washington, DC – As the nation’s oldest consumer advocacy organization, the National Consumers League (NCL) is outraged by recent calls to eliminate the Consumer Financial Protection Bureau (CFPB), a vital agency safeguarding Americans from corporate exploitation, fraud, and abuse. The reckless suggestion to “cancel” the CFPB by Elon Musk, is a direct attack on consumer protections.

“Eliminating the CFPB would leave U.S. consumers defenseless against predatory practices, corporate greed, and fraudsters,” says National Consumer League’s John Breyault, VP of Public Policy, Telecommunications, and Fraud. “Without a strong CFPB, deception in the marketplace will flourish, harming not just consumers, but also honest businesses striving to treat their customers with fairness and respect.”

The CFPB, created in the wake of the 2008 financial crisis through the Dodd-Frank Wall Street Reform and Consumer Protection Act, is a lifeline for millions of Americans. Under the leadership of Director Rohit Chopra, the CFPB has delivered $20 billion in consumer relief. The watchdog agency has proven indispensable, delivering multiple wins for everyday Americans, including:

  • Wells Fargo Settlement: A historic $1 billion resolution following fraudulent account-opening practices.
  • Medical Debt Protections: Proposed measures to eliminate medical debt from credit reports, potentially impacting $49 billion in reported debt.
  • Reducing Fraud on Payment Apps: Implemented protections to reduce fraud on Digital Payment App platforms like Apple Pay and Venmo.

The NCL unequivocally opposes any effort to dismantle the CFPB, as doing so would expose Americans to fraudsters, discriminatory lending, and exploitative financial practices. Eliminating the bureau would not only reverse years of progress but would also send a dangerous message to those likely to break the law that corporate profits matter more than consumer protections.

The National Consumers League stands firm: We will not let consumer protections be sacrificed. Americans deserve fairness, transparency, and accountability. We call on all policymakers to stand with consumers and defend the CFPB.

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About the National Consumers League (NCL) 

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 file amicus brief supporting DOT’s airline fee transparency rule

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October 17, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, DC – This week, the National Consumers League and three other public interest advocacy organizations filed a brief of amici curiae in Airlines for America, et. al v. Department of Transportation. The airline industry filed the lawsuit, claiming that the Department of Transportation (“DOT”) lacks the authority to protect passengers, after DOT finalized its rule requiring air carriers to disclose upfront the fees they charge for baggage and reservation changes or cancellations.

“DOT has put in place common-sense price transparency rules,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “Travelers deserve to know up front how much it will cost to bring a bag on a plane or cancel or change their reservation. Unfortunately, the industry’s litigation goes much further than disputing a single rule they do not like. It strikes at the heart of DOT’s ability to issue consumer protection regulations across the board.”

If the industry’s litigation is successful, it could jeopardize decades of basic—yet critical—consumer protections implemented by DOT. In addition to threatening the ancillary fee transparency rule, a ruling by the 5th Circuit in favor of the airlines could jeopardize the Full Fare Advertising Rule requiring air carriers to include all mandatory charges within their advertised prices. The lawsuit comes just four years after the same airlines received more than $50 billion in taxpayer bailouts from the federal government during the COVID-19 pandemic.

The American Economic Liberties Project, Consumer Federation of America, NCL, and the US Public Interest Research Group filed the brief supporting the fee transparency rule.

Additional reading:

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About the National Consumers League (NCL) 

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.