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

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

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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.

With Communities of Color Consumer Protection Symposium, NCL helps celebrate Black History Month – National Consumers League

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February is Black History Month and reminds us of NCL’s deep historical connections to the Black community. W.E.B. DuBois, the renowned civil rights leader and first editor of the NAACP’s newspaper, The Crisis, was a brilliant scholar and close friend of Florence Kelley, NCL’s General Secretary. Kelley came from a Philadelphia Quaker family, raised with fiercely abolitionist beliefs with no tolerance for racial prejudice or discrimination.

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She was furious when racial segregation practiced in hotels and restaurants made it difficult for her African American colleagues to attend meetings on minimum wage and child labor.

Earlier this month, NCL sponsored the Communities of Color Consumer Protection and Financial Services Symposium. The Joint Center for Political and Economic Studies – the only African America think tank in the US – co-hosted the program with the Center for Responsible Lending. The conference focused on telecom, fraud, student loans, auto loans and mortgage financing, with an emphasis on protecting the most vulnerable communities. These communities experience higher interest rates, rip off contract terms, and have had their family wealth wiped out by the subprime mortgage crisis in far larger proportions than their white counterparts.

We organized this conference to bring new voices into the consumer protection discussion. Representatives from La Raza, LULAC, NAACP and Urban League spoke at the event, along with Senator Elizabeth Warren (D-MA) and Congressman Keith Ellison (D-MN).

I learned a lot at about how financial institutions, car dealers and lenders, for profit colleges, and so many others target the black community for predatory practices and make billions in profits at the expense of these communities.

So as we celebrate Black History Month in 2014, it’s more important than ever that communities of color have the benefit of consumer protections and that regulators and legislators work on their behalf. NCL hopes to do a conference like this at least once a year. We will be following the wonderful example of great leaders like Florence Kelley and W.E.B. Dubois who 100 years ago worked together as partners and colleagues for the cause of social justice in America.

What’s new with gift cards this season? – National Consumers League

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The Credit Card Accountability, Responsibility and Disclosure Act of 2009 that went into effect earlier this year mandated a lot of changes in the credit card industry. It also has some implications for the gift card industry. There’s good news for consumers planning to purchase gift cards for friends and loved ones this holiday season.

Here are the key elements of the new Credit CARD Act that affect gift cards:

Better expiration dates. Gift cards cannot expire less than five years after purchase.

Better fine print. the gift card issuers must clearly disclose dormancy and inactivity fees.

No more unused balance fees (for the first year). Starting now, no cards purchased in the previous 12 months can carry fees for going unused.  In the past, unused cards lost value more quiclkly due to these inactivity fees. The good news is that now, issuers must not start tacking on the fees for a full year. The bad news is that there is no limit on the amount of this fee, which can only be assessed once a month.

Fees subject to these restrictions include monthly maintenance or service fees, balance inquiry fees and transaction-based fees, such as reload fees and point-of-sale fees.

More you should know about gift cards

The new Credit CARD Act rules do not apply to reloadable prepaid cards that are not marketed or labeled as a gift card or gift certificate. They also don’t apply to prepaid cards received through a loyalty award or promotional program. The majority of the cards we’re used to seeing however, such as those offered by major retailers or card networks like Visa, Mastercard, or American Express, will be covered. However, consumers should be wary of reloadable cards or cards received through the loyalty and promotional programs. A card that would fall into this category is a free “loyalty card” that gives the user $10 off a $50 or more purchase from the same store.  Such cards must still clearly disclose expiration dates and associated fees. These may be hard to distinguish from cards that are covered by the rules.  Consumers should be sure to check the disclosure language on cards to ensure that they are purchasing cards that are covered.

Tips for buying and giving gift cards

  • Encourage the recipients of gift cards to use them quickly to avoid losing the value of the cards to fees.
  • Ask for a gift receipt for each card purchased and include the receipt when giving a gift card. This will allow the card holder to replace the card if it is lost or stolen.
  • Read all terms and conditions prior to purchasing a card. If the terms are not disclosed or if they are too difficult to understand, consider purchasing a different card.
  • Be wary of gift cards sold on online auction sites. These cards are often stolen or counterfeit.
  • Keep all gift cards and receipts in a safe, easily accessible place to avoid loss and neglect of gift cards.
  • If a card requires registration prior to use, be sure to do so soon after receiving the card.
  • If a card’s value is too low to cover an entire purchase, a merchant may be able to do a “split-tender” transaction that will allow part of a purchase to be paid with the gift card and the balance to be paid by another means (cash, check, credit/debit card). If an employee seems unsure how to conduct a “split-tender” transaction, ask a manager to help.
  • Be aware of state laws pertaining to gift cards. These may affect expiration dates, fees, and card replacement.
  • Don’t throw away depleted cards. Some merchants require a card for returns.

Consumer U: tips for college students – National Consumers League

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Millions of young people are arriving on the nation’s college campuses this summer. Many of them will be embarking on a life without parents for the first time. Unfortunately, many of these young people will be entering the marketplace on their own, with precious little understanding of how to navigate it successfully. Worse, many students may fall prey to scams targeting college students.

With this in mind, here are a few tips for young consumers heading out on their own, whether to college or just their first apartment:

  • DO read the fine print. While credit card companies are now largely prevented from offering their wares on college campuses, there are still many “gotcha’s” lurking out there for unsuspecting consumers. Those gotcha’s love to hide in the fine print of things like apartment leases, gym memberships, cell phone contracts, student loan applications, spring break vacation package agreements and yes, credit card applications.
  • DON’T sign anything until you understand your responsibilities. Will you be locked in to that gym membership for years to come? Does that free t-shirt come with a credit card that has a high interest rate and annual fee? How much will it cost to break the lease on your apartment if your roommate unexpectedly moves out and leaves you with the full month’s rent?
  • DO make sure you have contact info (the phone numbers or Web addresses for services that can help) if you get in trouble. The local Better Business Bureau, Office of Tenant Advocate, and state and local consumer protection bureaus are good numbers to have handy if you feel that a local business or landlord is taking advantage of you.
  • DO create a budget and stick to it. Create a list of all the expenses you’ll be responsible for, like books, regular meals, rent, and transportation. That way you’ll have a system to help make sure nights out with friends don’t eat in to you required living expenses.
  • DON’T leave personal information unsecured. While young consumers may not have a lot of money to drain from bank or credit card accounts, their credit reports are often clean. This makes them tempting targets for identity thieves. File away important documents, shred credit card offers and keep a close eye on credit and debit card statements for suspicious charges.
  • DO watch out for scams targeting young people. For example, educational grant scams were on NCL’s Top Ten Scams list for 2009, suggesting that scammers may be going after students looking for ways to pay for college in a tough economic environment. Watch out for scams that promise “guaranteed scholarships” or “an inside track on getting money for college.” Also stay away from any service that requires a credit or debit card account number to apply for or hold a scholarship.
  • DON’T leave your social network privacy settings unattended. Scammers scan these networks for information they can use to pitch believable-sounding scams. It usually only takes a few minutes to set privacy settings to make them more secure. Many college students may be surprised to find just how much of their personal information they were sharing in the first place.

Consider these tips the beginning of your journey to becoming a savvy consumer. Remember that the good consumer habits you develop as a college student can yield benefits in school and beyond.

Gift Card Holder’s Bill of Rights – National Consumers League

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The National Consumers League has been joined by Consumer Action and the Montgomery County, Md, Office of Consumer Protection to call on the gift card industry to ease the burden on consumers by lifting expiration dates, lowering fees, and more.

1. Gift cards should have no expiration dates.
Gift card holders have the expectation that their cards are as good as cash at a retailer. They should be able to use their cards regardless of when they received the card

2. The value of a gift cards should not be reduced by arbitrary fees that diminish a card’s value.
The funds available on gift cards are often reduced significantly by a variety of postsale fees (called “dormancy,” “inactivity,” or “maintenance” fees, depending on the card) if the value of the card has not been exhausted within six to 12 months of purchase. We believe the funds stored in these cards should be available to consumers to pay for goods and services, not the card issuer’s administrative costs.

3. Fees assessed on a card purchase should not exceed five dollars or ten percent of the value of the card.
The processing charges or sales fee charged at the point of sale for gift cards should be reasonable and consistent with the expected costs incurred by the card issuer to market the card and service the card post-sale.

4. Card replacement fees should not exceed two dollars or ten percent of the purchase price of the card, whichever is less.
Card holders lose cards for a variety of reasons, including theft. Fees associated with replacing the card should be reasonable.

5. Cards with a balance of five dollars or less should be redeemable for cash with no fee.
Many cards are unusable when consumers attempt to use them to make purchases greater than the value of a card. Many retailers are unable or unwilling to attempt a “split tender” transaction to address this issue. As such, we believe that consumers should be able to redeem gift cards with a remaining value of $5 or less for cash, without a fee.

6. Balance inquiries should not deduct from the value of the card.
Consumers may need to check the remaining balance on their cards from time to time. Doing so should not reduce the value of the card itself.

7. Terms and conditions should be clearly disclosed.
Consumers should be made aware of any fees associated with a card before purchasing it. Such terms and conditions should be viewable on the card itself, the card’s packaging, in-store display, and on an easily accessible Web site.

8. Unused funds should not go into the card issuers’ pockets, but should accrue to a state fund to be used for the specific benefit of consumers.
The residual value of lost or unused cards falling under states’ unclaimed property laws should be used to benefit consumers, not to the bottom lines of big banks and retailers. Appropriate uses of such monies would be a fund to compensate victims of consumer fraud, grants to non-profit organizations fighting fraud, and support for state programs to educate the public about consumer fraud.

9. Funds from the sale of gift cards should be segregated and held in trust accounts so as to be automatically honored in the event of the cards issuer’s bankruptcy.
Recent retailer bankruptcies have resulted in consumers being unable to use their gift cards or only being able to redeem t heir cards for pennies on the dollar. Consumers who purchase gift cards have, in effect, prepaid for goods and services and their purchases should be honored, regardless of the bankruptcy status of the card issuer.

10. These rights should cover any electronic gift card with a banked dollar value.
Consumers generally do not differentiate between gifts cards usable at a single retailer or multiple retailers. The rights afforded them should be consistent regardless of the issuer of the card.