NCL urges Senate committee to hold airlines accountable for operational meltdowns

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February 9, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — Today, the Senate Commerce Committee will hold a hearing focused on Southwest Airlines’ operational meltdown in December 2022. The committee should use this opportunity to not only hold Southwest accountable but to also address the underlying causes of and remedies for chronic cancellations and delays that affect millions of passengers annually. 

The following statement is attributable to NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault: 

“Instead of ensuring that thousands of travelers and employees weren’t stranded for the holidays, Southwest spent $5.6 billion on stock buybacks. But Southwest is not an outlier. Putting short-term profits ahead of long-term investments that prioritize the needs of passengers has been a hallmark of the industry for decades. This is one symptom of a broken marketplace where four carriers control over 80 percent of domestic flights. America’s airline passengers, whose tax dollars bailed out the airline industry to the tune of more than $50 billion, deserve better. The Senate Commerce Committee must thoroughly investigate what happened at Southwest and reform our air travel industry to ensure such crises never happen again.” 

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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 urges House Transportation Committee to demand answers from FAA on aviation safety

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February 7, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — Today, the House Committee on Transportation and Infrastructure will hold a hearing focused on the need to enhance America’s aviation safety system. The committee calls the U.S. system a “gold standard” for the world. Unfortunately, the Federal Aviation Administration’s (FAA) previously sterling record in this area has been badly tarnished by the Boeing 737 Max scandal, operational meltdowns, and scary near-misses. 

In particular, Congressional leaders must hold the FAA accountable for its failure to implement statutorily-required minimum dimensions for passenger seats. For decades, air carriers have reduced seat sizes across all fare classes. The result is that millions of travelers must fly under conditions that the FAA’s own advisory has deemed unsafe.  

Fortunately, thanks to advocacy by NCL and other passenger rights organizations, momentum is growing for reform. In November, NCL along with a coalition of six public interest groups, filed comments with the FAA calling for a moratorium on airlines reducing seat sizes until the FAA can update its emergency evacuation standards. In December, Senators Baldwin and Duckworth introduced legislation requiring the FAA to update evacuation standards to reflect the modern cabin environment. 

The following statement is attributable to NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault: 

“Shrinking seats on airplanes have serious consequences, from impeding emergency evacuations to raising the risk of serious negative health effects. The FAA is more than three years overdue in complying with the law and addressing this problem. As the only agency in the nation responsible for aviation safety, the House Transportation Committee must ensure that the FAA does not continue to slow-walk critical aviation safety issues like setting minimum seat size standards.  

We are disappointed that the first hearing on this issue in the new Congress will not feature any witnesses representing those who are most directly impacted by such safety oversight – namely, passengers. Nonetheless, NCL urges Congress to use this opportunity to ensure the executive branch’s compliance with air safety mandates.” 

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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 https://nclnet.org.

Top Ten Scams Report: Consumers reported massive uptick in crypto-linked fraud losses in 2022

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February 6, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — Reports of scams tied to cryptocurrencies drove a significant increase in median losses in 2022, according to the National Consumers League’s annual Top Ten Scams report. The report, published annually, analyzed more than 3,500 consumer fraud complaints filed with NCL’s Fraud.org campaign last year. 

The report found that the median loss for investment frauds reported to Fraud.org was $18,700, compared to $1,750 in 2021. The complaints in this category frequently described schemes where victims were encouraged to put money into cryptocurrencies and cryptocurrency-linked investments that later turned out to be fraudulent. Such scams drove an increase in the median loss for all frauds reported to Fraud.org to $950, an eleven-year high. 

“Both median losses and the share of incidents reporting losses are up,” said John Breyault, NCL vice president of public policy, telecommunications, and fraud and the director of the Fraud.org campaign. “New technologies seem to be driving these trends, from crypto-related schemes to scammers using new technology to move victims’ money around.” 

Bank account debit, which includes peer-to-peer platforms like Zelle and Venmo, was the second most frequently mentioned way that victims reported sending money to fraudsters in 2022 (27.17% of complaints that included a loss). Compare this to 2021 when bank account debit was mentioned in 11.2% of complaints that included a loss. 

The top ten scam categories reported to Fraud.org in 2022 were: 

  1. Prizes/Sweepstakes/Free Gifts 
  2. Internet: General Merchandise 
  3. Phishing/Spoofing 
  4. Fake Check Scams 
  5. Investments: Other (incl. cryptocurrency) 
  6. Advance Fee Loans, Credit Arrangers 
  7. Friendship & Sweetheart Swindles 
  8. Family/ Friend Imposter 
  9. Computers: Equipment/Software 
  10. Scholarships/Grants 

“While we’re collecting data to better inform our efforts to combat fraud, we’re also aiding victims and connecting them with resources,” said NCL Consumer Services Coordinator James Perry. “It’s important to remember the person behind each report.” 

Notably, the share of reports involving romance scams declined by 31%. This trend may be attributable to last year’s significant media coverage of this type of fraud following the success of fraud-focused shows like “The Tinder Swindler” and “Inventing Anna.”  

“In real time, we are seeing the benefits of a national discussion around these types of fraud” said NCL Public Policy Manager Eden Iscil. “Having an open conversation about something as sensitive as romance scams helps to destigmatize the issue, provide space for victims to seek help, and put pressure on digital platforms to prevent misconduct.” 

To view the full 2023 Top Ten Scams report, click here. 

Methodology 

The National Consumers League Top Ten Scams report analyzed 3,503 complaints submitted by consumers to NCL’s Fraud.org campaign in 2022. 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 https://nclnet.org.

White House Competition Council announcement is a big deal

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By John Breyault, Vice President of Public Policy, Telecommunications and Fraud 

Ask almost any consumer and they will tell you that junk fees are one of the banes of their existence. Not only do these fees add often unexpected costs to the price of goods and services, but they also inhibit competition; contributing to higher prices, worse service, and poorer product quality. Add to this the lost time and aggravation that comes with fighting companies that try to charge these fees and we have a recipe for constant consumer frustration. 

Fortunately, the Biden Administration seems to be hearing these concerns loud and clear. Last week, the White House Competition Council announced a range of executive actions and legislative proposals targeting junk fees and competition concerns that NCL have made a priority for years. These actions build on commitments the Administration made last fall to go after junk fees and other anti-consumer practices.  

So, what is in this announcement for consumers? The short answer is quite a bit. 

First, the Consumer Financial Protection Bureau announced a new rulemaking to close a loophole in the law that allows banks to get away with charging outrageously high fees for late credit card payments. Thanks to this loophole, banks have been able to get away with charging late fees as high as $41. This is big money for the banks. In 2020, banks charged around $12 billion in such fees, representing more than 10% of all fees and interest revenue. Under the new rule, the maximum fee a consumer will be hit with will be $8. This change is expected to save American consumers as much as $9 billion annually. As far back as 2009, NCL was calling for legislation to protect consumers from these “gotcha” fees, so this announcement is great news.  

Second, the Department of Transportation (DOT) will soon propose a rule to prohibit airlines from charging passengers for the “right” to sit next to their young children. Separating children from their parents in the air not only creates safety risks in an evacuation scenario, but it puts kids at increased risk of sexual assault. Back in 2016, Congress directed DOT to review airline family seating policies and, “if appropriate” act. Under the regulation-averse Trump DOT, the agency did the minimum possible to comply with the law by creating a new consumer education web page that described airlines’ family seating policies. This week’s action, however, will ban family seating fees outright, fulfilling a demand that NCL and other advocates have worked towards for years. Thanks to this new rule, parents should soon be protected from having to choose between an affordable seat and their kids’ safety in the air. 

Finally, the Administration called on Congress to pass a Junk Fee Prevention Act to crack down on a range of anti-competitive junk fees. Fees targeted by the legislation would include: 

  • Cell phone and broadband early termination fees – These fees, which can exceed $200, lock consumers into service they may not want or no longer need for years. They also make it harder for new entrants in the marketplace to compete with the big wireless and broadband carriers. 
  • Live event tickets – For more than a decade, NCL has advocated for action to control the fees that can add 50% or more to the price of a concert or sporting event ticket. The Junk Fee Prevention Act would prohibit excessive fees, require that all fees be included in the advertised price, and mandate disclosure of ticket holdbacks that keep more than 50% of tickets for a typical event from ever making it to market. 
  • Hotel resort fees – Resort fees (also called “destination fees”) are increasingly used to hide the actual cost of a hotel room. Instead of being included in the advertised price of a room, sneaky hotel chains charge the fee when a consumer checks out. Not only does this cost consumers billions annually, but it also harms honest hotels that advertise the full price. Thanks to NCL’s advocacy, state and federal regulators have taken aim at these deceptive fees. Now it is time for Congress to step up. 

Taken together, this package of regulatory and legislative reforms show that the Biden Administration is putting companies on notice that their days of raking in billions in profits by nickel-and-diming consumers with unfair and deceptive fees are numbered. NCL, along with our allies in the consumer community, will continue to be on the front line to make sure the Administration and Congress follow through on these ambitious and long-overdue plans. 

White House “taking the gloves off” in latest competition push

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February 1, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. – The National Consumers League (NCL) today applauded the White House Competition Council’s announcement of a new slate of executive actions to protect consumers and rein in corporate power. NCL has long championed many of the solutions that the White House today supported, including prohibiting family seating fees on airlines, mandating all-in pricing and greater transparency in the live event marketplace, and getting rid of deceptive hotel resort fees.

The following statement is attributable to Sally Greenberg, Executive Director of the National Consumers League:

“More than 60 years ago, President Kennedy launched the modern consumer movement with a call to hold corporations accountable when they put profits over the public interest. We are thrilled today to see the Biden White House following in those footsteps. This Administration is taking the gloves off and putting corporate wrongdoers on notice that anti-consumer behavior will not go unchallenged. From airlines to banks to ticketing companies, businesses are leveraging their market dominance to squeeze every penny they can from hard-working families. We are thankful to have allies in the White House who are channeling consumers’ frustration into action.”

NCL has been pushing for reforms in the live-event ticketing industry for over a decade, including changes to the ticket purchasing process (some of which were adopted by the Competition Council) and the breakup of the Live Nation-Ticketmaster merger. In 2019, the League testified to Congress about the need for federal action to ensure that children are seated with their parents and caregivers without cost, something the Department of Transportation announced it would begin working towards today. Lastly, the Competition’s push to ban hotel resort fees and mandate all-in pricing echoes NCL’s previous calls on the matter.

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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 https://nclnet.org.

Advocates call on DOT to mandate easier airfare cost comparison

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January 25, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON DC. – Yesterday, the National Consumers League (NCL) and a coalition of six consumer and passenger rights organizations filed comments with the Department of Transportation (DOT) in support of proposed regulations requiring the earlier disclosure of common airline ticket add-on fees. DOT’s proposed rules would require airlines and ticket agents to display fees associated with checked baggage, ticket changes and cancellations, and family seating on the first page of airfare search results. 

“It is extremely difficult and time-consuming for consumers to do accurate apple-to-apples comparisons when shopping for airline tickets,” said John Breyault, NCL Vice President of Public Policy, Telecommunications, and Fraud. “DOT’s proposed rules would promote competition by making it harder for airlines and ticket agents to hide some of the most egregious add-on fees in the fine print at the end of the ticket-buying process.” 

“The airlines love to nickel-and-dime passengers with junk fees, and in far too many cases travelers are hit with sticker shock when they finally realize the true cost of flying,” said William J. McGee, Senior Fellow for Aviation & Travel at American Economic Liberties Project. “We urge the DOT to address transparency of fees, and to eliminate certain fees altogether. This applies especially to fees for families with young kids to sit together, an issue Congress directed the DOT to address in 2016.” 

“If airlines are going to continue to devise and impose all sorts of unreasonable fees, they must be required to reveal each fee when travelers first search for price and availability,” said Ruth Susswein, Consumer Action’s Director of Consumer Protection. 

“Airlines have come up with all sorts of extra fees over the years: baggage fees, change fees, seat selection fees and more. We believe airlines should be required to disclose these fees before someone begins the actual booking process, not at the end. And these fees should be disclosed up front in real time to ticket agents that provide fare information. This would encourage price competition and ultimately give consumers more transparency in pricing,” said Teresa Murray, Consumer Watchdog for Public Interest Research Group. 

To view the coalition’s full comments to DOT, click 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 https://nclnet.org.

NCL applauds bipartisan interest in reining in ticketing monopoly 

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January 24, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON DC. – The National Consumers League (NCL) today applauded the Senate Judiciary Committee for holding a landmark hearing examining how Ticketmaster-Live Nation’s monopoly harms fans and competition in the live event industry.  

“Just as we warned in 2009 when the Ticketmaster-Live Nation merger was proposed, the company has become a behemoth that controls many aspects of the live event industry and wields its market power ruthlessly,” said NCL Executive Director Sally Greenberg. “Ticketmaster sells tickets for 80 out of the top 100 arenas. Their presence in nearly every aspect of the industry—from event promotion to venue operations—makes it almost impossible for small, independent competitors to succeed. This is a monopoly.” 

Consumers often have no choice but to deal with Ticketmaster when seeing their favorite artist or sports team. This makes some of the corporation’s business practices inescapable, such as adding 78% to the ticket price in hidden fees. 

“Today’s hearing showed that there is a strong support for free markets—regardless of party,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “Senators from both sides of the aisle centered the experiences of fans, artists, independent promoters and venue owners, recognizing the harms caused by Live Nation’s market consolidation. Witnesses repeatedly described a pervasive fear of retaliation if they and other live event industry stakeholders speak up about Live Nation’s monopolistic practices. It is our hope that their testimony gives more actors in the live event industry confidence that Ticketmaster-Live Nation is not above the law.” 

Since 2009, NCL has opposed the Ticketmaster-Live Nation merger. Most recently, NCL has been working as part of the Break Up Ticketmaster coalition to urge the Department of Justice to enforce existing federal antitrust laws and take action against Ticketmaster to increase competition in the marketplace. 

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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 https://nclnet.org.

NCL urges FTC to prohibit user review manipulation

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January 10, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON DC. – The National Consumers League (NCL) this week filed comments in support of a Federal Trade Commission (FTC) regulation to ensure the reliability of user reviews. In its comments, NCL urged the FTC to prohibit user reviews from individuals who did not purchase a product or service (or are misrepresenting their experiences with a product or service) and to prohibit sellers from manipulating consumer reviews. In addition, the League advocated for the Commission to require hosts of user reviews to implement measures to protect review integrity, such as requiring purchase verification.  

“Consumers frequently cite user reviews as a key factor when deciding what to buy,” said John Breyault, NCL Vice President of Public Policy, Telecommunications and Fraud. “As a result, fake endorsements steer billions of dollars each year towards certain products and away from competitors. The impacts range from buyers receiving goods of poorer quality than expected to serious safety risks.” 

NCL also encouraged the FTC to prohibit the commercial exploitation of social media engagement metrics, such as buying and selling likes, comments, or shares. Such practices can be used to boost fraudulent product reviews and endorsements, allowing bad actors to manipulate social media platforms to broaden their reach. 

“Right now, it is extremely easy to spend a few dollars and receive hundreds of likes, followers, or other signals that a product or service is of high quality,” said Eden Iscil, NCL Public Policy Manager. “By jumpstarting a post with purchased engagement, the content has a greater chance of reaching a real audience—and being believed by them. Such practices not only affect consumers making purchasing decisions but can also be used to spread other types of misinformation.” 

The FTC initiated this regulatory process following NCL’s request for greater federal enforcement against organized user review fraud, which can be found here.  

NCL’s full comments to the FTC can be found 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 https://nclnet.org.

National Consumers League urges Southwest Airlines to invest in consumer protection

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December 27, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON DC. – The poor performance of domestic airlines, namely Southwest Airlines, over the holiday season is yet another call to action for reform to the air travel industry. The National Consumers League (NCL) strongly urges Southwest Airlines to take all actions necessary to make both consumers and its employees whole, as well as to prevent similar incidents from reoccurring in the future. Additionally, the federal government should not delay in implementing the number of pending regulations that would strengthen consumer protections in air travel, including a proposed rule that would require refunds for stranded travelers. 

Air carriers should function to alleviate consumer and employee issues, not exacerbate them. Reports of passengers unable to contact Southwest Airlines representatives to rebook cancelled flights or find lost baggage are distressing and emblematic of longstanding issues within the industry. Moreover, complaints from airline employees of outdated operations systems further disrupting service also highlight the lack of action taken to mitigate the issues faced by both consumers and workers over the holidays. 

NCL urges Southwest Airlines to issue refunds to affected consumers without delay. Additionally, Southwest Airlines should invest significantly in improving customer service capacity and updating operations technology.

The travel meltdowns that are occurring this holiday season are another reminder that we must reform the governmental policies surrounding air travel. NCL is pleased that the U.S. Department of Transportation (DOT) is looking into Southwest Airlines’ performance, especially as it is the sole governmental agency with oversight of air carriers. 

The DOT should act quickly to promulgate regulations that require refunds to consumers in the event of a significant delay or cancellation, alongside other pending rules. Additionally, the DOT should implement recommendations from consumer advocates and state attorneys general, including a proposal to require airlines to provide travelers accommodations for meals and overnight lodging when necessary.

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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 https://nclnet.org.

National Consumers League names Robin Strongin to lead Health Policy

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December 14, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON DC. –  National Consumers League (NCL)-the nation’s oldest consumer advocacy organization, has named Robin Strongin Senior Director, Health Policy, beginning January 4, 2023.  Robin will oversee NCL’s robust health care portfolio.

An accomplished public affairs expert with decades of experience working in Washington, D.C., Robin has worked with and for federal and state governments, regulatory agencies, the White House, Congress, think tanks, nonprofit organizations, corporations, start-ups, coalitions, and trade associations. Robin served as a Presidential Management Intern and worked in the Office of Legislation and Policy in the Health Care Financing Administration (now the Centers for Medicare and Medicaid Services), the Prospective Payment Assessment Commission (now the Medicare Payment Advisory Commission) in addition to serving in the Office of Congressman James J. Florio (D-NJ).  Robin spent a decade as a senior research associate at George Washington University’s National Health Policy Forum.

Robin ran Amplify Public Affairs, LLC and launched an award-winning Disruptive Women in Health Care blog®; she also served on the following boards: the Institute for Music and Neurologic Function (founded by Dr. Oliver Sacks); AcademyHealth’s Translation and Dissemination Institute Advisory Committee; Kaiser Permanente’s Institute for Health Policy; Older Women’s League; Physician-Parent Caregivers; and The Hill newspaper Publisher’s Advisory Board. In October 2015, Robin was named to the National Alzheimer’s Scientific, Patient and Caregiver Advisory Council of the PCORI-funded Alzheimer’s & Dementia Patient/Caregiver-Powered Research Network (AD-PCPRN); and named a Woman of Impact (https://www.womenofimpact.org) in December 2015.

“The National Consumers League is a powerful force in leading and advocating for consumers’ health and safety,” said Strongin. “I’m deeply honored to be part of a team dedicated to this critical mission and I look forward to working with Sally Greenberg, the board, and the entire team to achieve our vision.”

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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 https://nclnet.org.