NCL Director of Health Policy testifies at Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights on how consolidation in the marketplace harms consumers

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June 16, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

Washington, D.C. – On Wednesday, June 15, 2022, the National Consumers League’s Director of Health Policy Jeanette Contreras provided oral testimony to the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights on how consolidation in the marketplace harms consumers.

In her testimony, Ms. Contreras discussed the importance of consumers having choices for safe goods and services at a fair price, a core principle of NCL’s advocacy work. Touching on several issues impacting consumers in the U.S. – such as the infant formula shortage, consolidation of the airline industry, primary ticketing market for live events, and the unfair business practices of pharmacy benefit managers (PBMs) – Ms. Contreras reiterated the need for competition in the marketplace and enacting stronger antitrust laws, all of which help protect U.S. consumers.

Her testimony appears below.

June 15, 2022

Good afternoon Chairwoman Klobuchar, Ranking Member Lee, and members of the Subcommittee. My name is Jeanette Contreras. I am the Director of Health Policy at the National Consumers League. I appreciate the opportunity to testify remotely today- due to COVID.

Founded in 1899, NCL is America’s oldest consumer advocacy organization. A core principle of our advocacy is that the marketplace should encourage competition to guarantee that consumers have choices for safe goods and services at a fair price. Monopolies harm competition, leaving consumers with fewer options at higher prices. Monopolistic practices are especially harmful when they occur in the health care arena, where they can exacerbate health disparities.

We share the concerns of new parents regarding the recent shortage of infant formula. Our hearts go out to those parents who have lost babies or whose infants suffered devastating health consequences from contaminated formula. At NCL, we believe all goods and services sold to consumers should be safe and meet all legal requirements- including regulatory guidelines set forth by the FDA.

NCL applauds the FDA and the Administration for adopting a multifaceted approach to increase the supply of infant formula, including temporarily allowing foreign manufacturers to sell their products in the U.S. Additionally, we believe invoking the Defense Production Act to prioritize getting needed inputs to infant formula manufacturers was sound policy. These measures are helping to solve the immediate logistical problem of getting formula onto store shelves across the country.

While addressing the immediate formula shortage is most urgent, we are also troubled that it took the FDA almost four months to act on a whistleblower complaint sent to the agency. This complaint should have received immediate attention given the gravity of the allegations against the Abbott facility. We support a full investigation and, if warranted, bringing criminal and civil charges against those who falsified data. NCL also recommends that the U.S. create a single food safety agency and dedicate an office to overseeing the safety and supply of infant formula.

It should concern every American that one manufacturer controls 40% of the U.S. infant formula market. Only three companies — Abbott, Mead Johnson, and Nestle — control 98% of the industry.

Consolidation in the infant formula industry is a major contributor to the current crisis, but it is only one of many cases where market concentration in recent decades has limited competition and harmed consumers.

For example, NCL continues to raise concerns about the consolidation of the airline industry. Due to weak enforcement of existing antitrust laws, from 2005 to 2015, the number of major U.S. airlines declined from nine to four. And today they control more than 80 percent of the domestic U.S. market.

Our antitrust laws have also failed to protect consumers who attend live events. After merging with Ticketmaster in 2010, Live Nation Entertainment controls roughly 80% of the primary ticketing market in the U.S. As anyone who has purchased tickets recently can attest, this has led to an increase in add-fees and the basic price of tickets.

Stronger antitrust enforcement would be especially beneficial for curtailing anti-competitive conduct in the health care industry, where we’ve seen consolidation lead to higher costs for consumers without an increase in quality or access to care. We are pleased that the Biden administration is looking into how hospital prices increase after acquisitions. We are also hopeful that the ongoing review of DOJ & FTC merger enforcement guidelines will result in more action by those agencies.

NCL also applauds the recent FTC decision to open an investigation into the unfair business practices of pharmacy benefit managers or PBMs. NCL works tirelessly to raise awareness of the outsized role that PBMs play in driving up prescription drug prices for consumers. According to a recent report, the three biggest PBMs controlled roughly 77% of all U.S. prescription drug claims in 2020. And a recent Senate Finance Committee report found some PBMs are getting a 70% rebate on insulin, while out-of-pocket costs for this life-saving medication continue to rise.

These cases are just a few examples of how monopolies and anti-competitive practices have become a problem for consumers. To ensure crises like today’s formula shortage do not happen again, market consolidation must be addressed so that the temporary shutdown of a single factory does not result in the collapse of an entire supply chain.

Whether it is baby formula, airline travel, live event tickets, or pharmaceutical sales, the lack of competition is having increasingly negative impacts on consumer welfare and requires urgent action.

Chairwoman Klobuchar, Ranking Member Lee, thank you for holding today’s hearing and inviting NCL to speak about this important issue. I look forward to answering your questions.

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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 urges Judiciary Committee to report the Equality Act to the full Senate

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June 10, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

 

The Honorable Dick Durbin

Chair

Committee on the Judiciary

Unites States Senate

 

The Honorable Chuck Grassley

Ranking Member

Committee on the Judiciary

Unites States Senate

 

Dear Chair Durbin and Ranking Member Grassley,

Over a year has passed since the Senate Committee on the Judiciary held hearings for HR5, also known as the Equality Act. The National Consumers League (NCL), the United States’ oldest consumer advocacy organization, urges the Judiciary Committee to report the Equality Act to the full Senate without further delay. This legislation would codify important consumer protections for the LGBT community, notably in housing, credit lending, and public accommodations.

Non-discrimination is a core component of consumer protection that all other safeguards rely upon; access to service is the most basic consumer issue. Studies have shown the challenges still facing the LGBT community, with over half of LGBT Americans having faced discrimination generally and 22% of LGBT consumers having experienced housing discrimination.[1] Regardless of gender identity or sexual orientation, every individual deserves access to housing and financial services, as well as the ability to purchase goods and services at restaurants, lodging, and retail stores.

By passing the Equal Rights Act, Congress can cement consumer protections for the LGBT community nationwide. NCL urges the Judiciary Committee to finish their work on the Equality Act and report this critical legislation to the full Senate.

[1] Harvard T.H. Chan School of Public Health. Poll finds a majority of LGBTQ Americans report violence, threats, or sexual harassment related to sexual orientation or gender identity; one-third report bathroom harassment. (2017). https://www.hsph.harvard.edu/news/press-releases/poll-lgbtq-americans-discrimination/

 

Sincerely,

Sally Greenberg

Executive Director

National Consumers League

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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.

 

New York ticketing legislation is a victory for fans

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June 9, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

Washington, DC— The National Consumers League (NCL) applauded the New York State Assembly for approving S.B. S9461, landmark consumer protection legislation that makes New York the first state to require all-in pricing of live event tickets. The bill also requires ticket brokers to disclose how much was originally paid for a ticket when they resell a ticket, prohibits the resale of tickets that were originally offered for free, and prohibits “print-at-home” fees.

“Fans in New York are the real winners from this bill,” said John Breyault, Vice President of Public Policy, Telecommunications, and Fraud at the National Consumers League. “Hidden fees and outrageous markups are some of consumers’ biggest pain points when it comes to buying tickets. While this bill will not solve every problem within the ticketing industry, getting rid of hidden fees addresses one of fans’ biggest complaints.”

A 2018 Government Accountability Office (GAO) report found that on average, consumers paid an extra 27% of the ticket’s original cost in fees. Media reporting has found instances where hidden fees were 78% of the fare’s starting price.

“Ticketing companies have long known that all-in pricing was a better solution for consumers, but they hesitated to provide it for fear of losing market share to competitors who hid their fees,” said Breyault. “That is the definition of market failure, which the New York bill fixes. We urge other states and the U.S. Congress to follow New York’s example and enact similar legislation.”

NCL applauded, in particular, the leadership of New York Senator James Skoufis whose investigative report on the ticketing industry was an important catalyst for this legislation.

“Senator Skoufis championed this important bill in the face of intense industry opposition and made sure it didn’t get watered down,” said Breyault. “Fans in New York will benefit immensely from his leadership.”

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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.

 

The National Consumers League calls on Congress to enact the Bipartisan Background Checks Act to address the gun violence epidemic

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June 2, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

Washington, DC— The National Consumers League (NCL) strongly supports The Bipartisan Background Checks Act (H.R. 8) and urges members of Congress to enact this common-sense gun legislation. Introduced by Representative Mike Thompson (CA-5), NCL views H.R. 8 as the first significant step to safeguarding consumers against the rampant gun violence in America.

Gun violence is disproportionally higher in the United States compared to other industrialized nations. In this respect, it is a uniquely American problem and one that policy-makers have an obligation to address. According to the Center of Disease Control and Prevention (CDC), guns are now the leading cause of death among youth. As a leading organization representing consumers, NCL is dedicated to supporting legislation designed to ensure that gun violence, from the recent tragedy in Uvalde, Texas to the racially motivated massacre in Buffalo, New York, never happen again.

One of the first steps to begin mitigating this epidemic is requiring more thorough background checks. Recent studies conducted by the School of Public Health, University of California, Berkeley and Johns Hopkins Bloomberg School of Public Health, highlight how background checks can significantly reduce gun related deaths. This is why the passage of H.R. 8 is so important. The bill will establish new background check requirements, making them a mandatory practice in all transactions, including those between private parties.

While the passage of H.R. 8 is significant, NCL is deeply disappointed by policy-makers’ refusal to adopt more robust gun safety legislation. It is imperative that Congress institute an automatic assault rifle ban to limit access to firm-arms deliberately designed to kill humans. Furthermore, a national gun registry must be established to increase gun owners’ accountability and help law enforcement solve and prevent crimes.  As our most cherished institutions continue to be targeted and consumers continue to fear for not only their lives, but their children’s lives, NCL strongly urges Congress to use their power to enact legislation aimed at ending this epidemic.

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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 issues recommendations to avoid another baby formula shortage

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May 19, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

Washington, D.C. – The National Consumers League shares the very real concerns of new parents regarding the recent shortage of infant formula. Our hearts also go out to parents who have lost babies due to contaminated powdered formula and those whose infants suffered devastating health consequences from the contaminated product.

We appreciate the FDA’s multifaceted approach to increase infant formula supply, including allowing foreign manufacturers of baby formula to sell their products in the U.S. Additionally, the Biden Administration has implemented the Defense Production Act, which will be important in increasing production by requiring suppliers to prioritize getting needed inputs to the infant formula manufacturers. Initiating the DPA also allows the Administration to use Department of Defense contracts with commercial cargo lines to speed the transport of foreign products into the U.S. and onto store shelves across the country. These actions are critical steps in combatting this formula shortage issue.  We applaud Congress for supporting emergency legislation to address the formula shortage.

However, while addressing the shortage is the most pressing issue, first and foremost, the responsibility lies with the Abbott facility in Michigan whose reckless actions set events into motion. Abbott failed to follow safety protocols, falsified documents to the FDA and then shipped contaminated formula exposing our most vulnerable little consumers to foodborne illnesses. Those actions triggered an FDA investigation and subsequent recall, leading to the current shortage.

We are also troubled that the FDA, for its part, took almost two months to act on the whistleblower complaint sent to the agency in October 2021. That report cited unsanitary conditions, contamination of formula, and serious allegations against company officials at the Abbott Facility in Michigan. This complaint should have received immediate attention given the vulnerability of infants, whose immune systems are just developing. This plant is also responsible for producing a great deal of the formula sold to federal WIC program. (The Special Supplemental Nutrition Program for Women, Infants, and Children). We think both civil and criminal charges are in order. The shortage demands that the FDA source infant formula from countries already approved for importing formula. It’s also time to create a single food safety agency and create an office to oversee the safety and supply of infant formula.

A summary of NCL’s recommendations include:

  1. Immediate sourcing of infant formula from countries that are already approved to import the product
  2. Opening the Abbott plant once the FDA can reach an agreement with the company to ensure production of infant formula will be under strictest safety and quality control.
  3. A full investigation of the Abbott facility, and criminal and civil charges brought against those who falsified data or knowingly allowed the shipment of contaminated formula
  4. Expansion of the number of companies making infant formula
  5. Creation of a single food safety agency and appointment of a baby formula safety and supply chain expert

Infants are our most vulnerable and precious consumers and they rely on us to protect them. We have let them down and safety provisions must be put in place to ensure that this never happens again. NCL stands ready to work with Congress, consumers, businesses, and the FDA to ensure the safety of infant formula is never compromised 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 www.nclnet.org.

 

National Consumers League urges Congress not to allow credit bureaus’ credit scoring company to dominate the credit scoring system

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May 13, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

Washington, D.C. –

The National Consumers League has sent a letter to the Chairs of the Senate Banking and House Financial Services Committees asking these leaders to conduct adequate oversight on the nation’s credit bureaus, TransUnion, Equifax, and Experian. “The three bureaus keep financial records and establish credit scores for hundreds of millions of Americans. For years, consumer organizations like ours have been raising questions about the behavior and actions of these entities, who in recent years have together created their own credit scoring company called VantageScore.”

The letter noted that “On April 12th of this year, the Consumer Finance Protection Board (CFPB) filed a lawsuit against credit bureau TransUnion and their long-time CEO for willfully violating the law and defrauding consumers, with CFPB’s director saying that ‘TransUnion is an out-of-control repeat offender that believes it is above the law.’  The letter also noted that “In September of 2017, the nation learned that another of the big three, Equifax, had been breached and the financial records of close to 150 million Americans had been compromised. “Investigations …found that Equifax had failed to protect the data that they had been entrusted with and a global settlement was reached.”  The letter goes on to say “… the three credit bureaus own a credit scoring company called VantageScore. Vantage Score is vigorously lobbying the FHFA to spend millions of dollars to change the credit scoring system for the GSEs in order to win market share.”

The letter urges these members of Congress to “ask tough questions and share your concerns directly with the FHFA, especially before that agency takes any action that could send millions of dollars into the pockets of VantageScore.”

Read the letter 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 www.nclnet.org.

 

National Consumers League Calls for Stronger Genetic Privacy Protections

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April 7, 2022

Media contact: National Consumers League –  Katie Brown, katie@nclnet.org, (202) 207-2832

Washington, D.C. – The National Consumers League (“NCL”) today called on policymakers in Congress and the Biden Administration as well as industry leaders to adopt the organization’s new “Genetic Privacy Rights,” as guideposts for future actions to protect consumers’ genetic data. The group called for legislation, executive actions, and industry practices that protect the “complete confidentiality” of genetic data. The organization further called for the adoption of an “ethical use” standard prohibiting the use of consumers genetic data for military, surveillance, and similar purposes. Finally, given the emerging misuse of genetic data to violate human rights, the group called for protections against Americans’ genetic data being shared with countries deemed “foreign adversaries” of the United States.

“Unlike a password or credit card number, consumers’ DNA cannot be changed even if it has been compromised,” said John Breyault, NCL’s Vice President for Public Policy, Telecommunications and Fraud. “While personal data of all types can be misused to harm consumers, the unique and inalterable nature of genetic data makes special privacy and security protections necessary. As access to genetic data becomes increasingly widespread in both private and governmental contexts, the threats of misuse have only grown.”

The potential for misuse of genetic data has been highlighted by the activities of foreign adversaries of the United States. For example, entities associated with the Chinese government have made it a priority to collect genetic data of American citizens to help build more effective surveillance technologies. The Russian government has also sought to collect genetic data to build “genetic passports” that experts believe could be used to build lists of individuals’ genetic traits and health risks.

“Clear rules of the road that give consumers’ genetic data the utmost legal protection is urgently needed,” said Breyault. “Consumers should be confident that when they share their genetic data with health care providers or private entities, that data will not be shared for purposes beyond which it was provided or with entities that are not committed to the ethical use of that data.”

The full list of NCL’s proposed genetic privacy rights is available here. A roadmap of potential legislative, executive, and industry actions is available 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 www.nclnet.org.

National Consumers League support for investigation of anti-competitive practices in the live event ticketing industry

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Media contact: National Consumers League –  Katie Brown, katie@nclnet.org, (202) 207-2832

 

April 1, 2022

 

The Honorable Jonathan Kanter

Assistant Attorney General

Antitrust Division

United States Department of Justice

950 Pennsylvania Avenue, NW

Washington, DC 20530-0001

 

RE: National Consumers League support for investigation of anti-competitive practices in the live event ticketing industry

 

Dear Assistant Attorney General Kanter,

On March 15, 2022, Senators Richard Blumenthal and Amy Klobuchar urged the Department of Justice (“the Department”) to investigate the state of competition in the live-event marketplace, including potential violations of Live Nation-Ticketmaster’s updated consent decree.[1] The National Consumers League, America’s oldest consumer advocacy organization, supports Senator Blumenthal’s and Senator Klobuchar’s request for the Department to take action on the issue of live entertainment marketplace competition.

As the Department is aware, just one company, Live Nation Entertainment (“LNE”), controls roughly 80% of the primary ticketing market following Live Nation’s vertical

integration with Ticketmaster.[2] In the Department of Justice’s own words, Ticketmaster benefits from “high barriers to other companies successfully, substantially, and profitably entering or attempting to expand in the market for primary ticketing services to major concert venues.”[3] There is no indication that the Live Nation-Ticketmaster merger (and further monopolistic actions since 2010) have reduced these barriers to entry.[4]

In fact, anticompetitive behavior in the live-event marketplace is so egregious that the Department was forced to obtain an updated consent decree with LNE in 2020.[5] Although the modified final judgement was a welcome act, consumers still suffer due to many of LNE’s business practices.[6] Since the announcement of the updated consent decree, Live Nation has continued to eliminate marketplace competitors, including an acquisition that received the Department’s approval.[7]

As a result of toxic market practices, concert attendees, sports fans, theater enjoyers, and other live-event goers must endure punishing hidden fees. In 2018, the Government Accountability Office found that on average, purchasers paid an additional 27% of the ticket’s original value in fees.[8] Recent media reports have found fees as high as 78% of the ticket’s starting price.[9] This is after consumers must contend with scalpers employing illegal ticket-buying “bot” software and other unscrupulous methods in order to even secure their tickets.[10]

The unfortunate state of the live entertainment marketplace warrants an investigation by the Department—with specific attention to LNE’s compliance with the updated consent decree. The harmful impacts of LNE’s near-monopoly are unacceptable. We urge the Department to conduct a thorough investigation of these practices and, if necessary, take action to ensure market health and consumer protection.

Sincerely,

Sally Greenberg

Executive Director

National Consumers League

 

[1] United States Senator Richard Blumenthal. Blumenthal & Klobuchar Urge DOJ Action to Restore Competition in the Concert & Live Entertainment Market. (March 2022). https://www.blumenthal.senate.gov/newsroom/press/release/blumenthal-and-klobuchar-urge-doj-action-to-restore-competition-in-the-concert_live-entertainment-market

[2] United States Government Accountability Office. Event Ticket Sales: Market Characteristics and Consumer Protection Issues. (April 2018). Pg. 4. https://www.gao.gov/assets/gao-18-347.pdf

[3] United States Department of Justice. Competitive Impact Statement, United States of America v. Live Nation Entertainment, Inc., No. 1:10-cv-00139 (D. D.C. Jan. 25, 2010). https://www.justice.gov/atr/case-document/competitive-impact-statement-209

[4] The Hollywood Reporter. Live Nation Accused of Shutting Out Venues That Don’t Use Ticketmaster. (January 2022). https://www.hollywoodreporter.com/business/business-news/live-nation-ticketmaster-class-action-1235070131/; Ticket News. Ticketmaster Resale Returns to Broker-Focused Conferences Despite Past Controversy. (July 2021). https://www.ticketnews.com/2021/07/ticketmaster-resale-returns-to-broker-focused-conferences-despite-past-controversy/

[5] United States Department of Justice. Justice Department Will Move to Significantly Modify and Extend Consent Decree with Live Nation/Ticketmaster. (December 2019). https://www.justice.gov/opa/pr/justice-department-will-move-significantly-modify-and-extend-consent-decree-live

[6] Variety. John Oliver Blasts Ticketmaster in Scathing Broadside Against Ticket Prices, Fees, Secondary Market. (March 2022). https://variety.com/2022/music/news/john-oliver-ticketmaster-prices-fees-secondary-market-1235204410/

[7] Complete Music Update. Ticketmaster gets approval for deal to buy Rival. (April 2020). https://completemusicupdate.com/article/ticketmaster-gets-approval-for-deal-to-buy-rival/

[8] United States Government Accountability Office. Event Ticket Sales: Market Characteristics and Consumer Protection Issues. (April 2018). https://www.gao.gov/products/gao-18-347

[9] The Guardian. John Oliver rips Ticketmaster and live music costs: ‘One of the most hated companies on earth’ (March 2022). https://www.theguardian.com/tv-and-radio/2022/mar/14/john-oliver-ticketmaster-live-music-costs

[10] United States Federal Trade Commission. Cracking down on ticket bots that leave you out in the cold. (January 2021). https://consumer.ftc.gov/consumer-alerts/2021/01/cracking-down-ticket-bots-leave-you-out-cold#:~:text=Ticket%20bots%20may%20also%20be,the%20tickets%20for%20higher%20prices

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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.

LifeSmarts announces partnership with Discover® Student Loans  

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Media contact: National Consumers League – Katie Brown, katie@nclnet.org, (202) 207-2832

During Financial Literacy Month, LifeSmarts teen consumer literacy program has introduced a new lesson focused on financing a college education and understanding student loans.

March 31, 2022

Washington, DC– The 28th National LifeSmarts Championship is on the horizon for the National Consumers League’s (NCL) youth consumer education program. Through LifeSmarts students learn about real-life consumer issues and compete to win prizes and scholarships at the National LifeSmarts Championship in April each year. Tomorrow, April 1, is the start of Financial Literacy Month. To commemorate this month, NCL is proud to announce a new lesson about financing a college education, made possible through financial support from Discover Student Loans.

On April 21, 39 teams from across the country will meet in Washington, DC, to compete in the 2022 National LifeSmarts Championship.  The Championship competition takes place over four days in which students will showcase their knowledge of personal finance topics as well as consumer rights, technology and workforce preparation, health and safety, and the environment.

Thanks to Discover Student Loans, LifeSmarts has created a new lesson on financial aid, with questions that will be featured in the National Championship. In the fall, the lessons and new competition focus will be fully integrated into the program for the new school year. Students and educators will see a concentration on personal finance topics at both the 2022 and 2023 National LifeSmarts Championships.

“We are so pleased to work with Discover Student Loans to help our students learn more about the important subject of paying for post-secondary education,” said National Program Director Lisa Hertzberg. “We know LifeSmarts gives students the skills they need to succeed as adults, and we see students applying what they learn immediately at home and in their communities. We are thrilled to be able to give special focus to the most crucial lessons in personal finance, and we look forward to rolling out new resources for educators and opportunities for student participants.”

Last year, students answered more than 3.5 million consumer questions about credit reports, nutrition, social media, and everything in between. More than 100,000 students will participate this year.

LifeSmarts is active in all states and the District of Columbia, where NCL is headquartered. “We are excited to have the opportunity to focus on personal finance for consumers at this age, when they are beginning to make decisions for themselves and influencing decisions made by their parents,” said Sally Greenberg, executive director of NCL. “Too often, traditional high school curriculum fails to teach students vital information to become successful adults, and LifeSmarts helps to close that gap.”

“It’s important that students and their families plan and save for college expenses, pursue free financial aid such as grants and scholarships, and understand the options for federal and private student loans,” said PK Parekh, senior vice president of Discover Student Loans. “We are very happy to work with LifeSmarts to help students learn through real-world lessons about personal finance, financial aid, and responsible borrowing.”

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About LifeSmarts

LifeSmarts is a comprehensive consumer education program that is free to middle school and high school students and educators. The goal of the LifeSmarts program is to create consumer savvy young people who will be better equipped for adult life in today’s complex, global marketplace. Visit LifeSmarts.org for more information. LifeSmarts: Learn it. Live it.

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.

FTC report shines light on continuing problem of ID theft – National Consumers League

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In the world of fraud fighting, the release of the Federal Trade Commission’s Consumer Sentinel Data Book is something of a wonky holiday. Yesterday was no exception, with the agency publishing the annual report, which examines trends in the 2 million-plus complaints the FTC receives annually. The headline of the report was depressingly familiar: identity theft continued to be the biggest driver of complaints to the FTC for the 14th straight year.

This trend is one of the reasons NCL produced our State of Identity Theft in 2013 report last year, which examined the continuing threat of ID theft and why we are making the issue of data insecurity a top priority in 2014.

Looking deeper into the Sentinel data, some additional interesting trends and questions come to light, including:

  • Does youth correlate with risk of identity theft? The FTC noted that 20% of ID theft complaints came from consumers aged 20-29, who comprise only 13.8% of the population. There is also a steady reduction in ID theft complaint rates as consumers get older. For example, 8% of ID theft complaints come from consumers aged 70-plus, which is consistent with their overall 9% distribution in the population. An open question is whether identity theft risk decreases as consumers age or whether the correlation is due to an increased likelihood that younger consumers will report identity theft.
  • The telephone is scammers’ contact method of choice. While recent news has been dominated stories about high-tech data breaches, it appears that scammers are returning to a somewhat old-fashioned tool: the telephone. Last month’s Fraud.org Top Ten Scams report noted that telemarketing fraud was making a major comeback, with 36% of complaints mentioning the telephone as the method of contact. The FTC’s new data confirmed this, finding that 40% of complaints cited the telephone as the method of contact. The telephone is now the preferred method of contact by scammers, overtaking email for the first time since 2011. Congress is taking notice as well. In December, a bipartisan group of legislators introduced the Anti-Spoofing Act, which would crack down on scammers disguising their calls by altering Caller ID information.
  • Scammers shifting technique in “grandparent’s scams.” Con artists have long used the story of a loved one in distress to defraud consumers, particularly older adults. Also known as the imposter scam, this fraud starts with the fraudster calling a victim with an urgent appeal for funds to help a friend or family member in need. For example, the scammer might claim that a beloved grandson was in a car accident overseas and needs money to pay a hospital bill or to get bailed out of jail. More than 121,000 consumers reported an imposter scam to the FTC in 2013, an increase of more than 36,000 complaints since 2012. The scam is evolving as well. Whereas fraudsters used to impersonate a friend or family member, they are increasingly claiming to represent a business or government official.
  • Encouraging signs in the fight against lottery scams. For the second year in in a row, complaints about this type of fraud have decreased (down by almost more than 10,000 complaints since 2011). Thanks in part to consumer education campaigns like DeliveringTrust.com growing awareness of these scams seems to be having an impact.

More than 2.1 million complaints were filed with the FTC in 2013, with reported losses of more than $1.6 billion. Given that fraud is a chronically underreported crime, we should assume that many millions more consumers were harmed. As we prepare to mark National Consumer Protection Week, this new data should serve as a reminder of the immense toll that fraud takes on U.S. consumers.

This data should push all of us — anti-fraud advocates, law enforcement, policymakers and everyday consumers — to redouble our vigilance in the fight against scammers.