NCL among one of many organizations expressing concern for the growing catalytic converter theft problem

/in , , , , , , , , , /by

August 29, 2024

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

WASHINGTON, DC – Today, the National Consumers League (NCL), along with many other organizations representing a cross-section of industry and interested stakeholders, signed a letter to the chairs of both the Committee on Armed Services and the Committee on Commerce, Science, and Transportation expressing their strong support of an amendment to combat the growing national problem of catalytic converter theft. Catalytic converters are being stolen at increasingly high rates because they contain valuable metals, such as rhodium, platinum, and palladium.

NCL’s CEO Sally Greenberg recently shared her own catalytic converter theft experience in this blog post.

The letter to the committees can be found here.

###

 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.

Food fight: NCL lauds VP Harris’s push for fair grocery pricing amidst corporate greed

/in , , , , , , , , /by

August 23, 2024

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

WASHINGTON, DC – The National Consumers League (NCL), with a 125-year history of advocating for transparency and fairness in the food marketplace, praises Vice President Kamala Harris’s focus on price gouging within the grocery industry. While critics have argued that banning price gouging is a campaign ploy and economic gibberish, NCL has long witnessed the numerous ways corporations can deceive and overcharge consumers. Harris’s plan tackles the abuses within the grocery industry head-on.

For too long, American consumers have been exploited by deceptive corporate practices that erode purchasing power and trust. Without guidelines and accountability, these practices will continue unchecked. Harris’s call to action is a shot across the bow, a powerful reminder to corporations that the Biden-Harris (and potentially a Harris-Walz) Administration is committed to addressing kitchen-table issues, like rising grocery costs.

This is not a new issue, nor is it the only issue leading to higher consumer prices at the supermarket check-out line. Price gouging, particularly during emergencies or disasters, is already regulated in thirty-seven states, with enforcement entrusted to state attorneys general. Harris’s plan would expand these protections, putting the Federal Trade Commission in charge of preventing unfair pricing tactics.

In February 2024, U.S. Representative Jan Schakowsky and U.S. Senator Elizabeth Warren reintroduced the Price Gouging Prevention Act of 2024 to combat corporate price gouging citing American families’ financial struggles amid rising grocery costs and corporate profits.  Expanding the FTC’s authority, as outlined in the Price Gouging Prevention Act, would not be considered price fixing. Rather, the proposed legislation empowers regulatory agencies to enforce fair pricing practices, protect consumers from unjustified price hikes, and promote a competitive and transparent market without interfering with lawful price setting by businesses.

Equally egregious to price gouging is the practice of shrinkflation, where companies reduce product sizes or contents while maintaining or increasing prices. The Shrinkflation Prevention Act, introduced by Senator Bob Casey and supported by the NCL, is a crucial measure to protect consumers from this form of corporate exploitation. Surveys confirm that 73% of consumers are concerned about shrinkflation, and 79% feel cheated.

Another betrayal of consumers is the lack of, or hidden, unit pricing. Unit pricing is a cornerstone of consumer purchasing, providing the cost per pound, quart, liter, or another unit of weight or volume. Unit pricing is a vital tool for budget-conscious consumers. Currently, only nineteen states and the District of Columbia have enacted unit pricing laws or regulations, according to the National Institute of Standards and Technology, leaving consumers in other states without the essential information needed to make informed purchasing decisions.

A lack of competition within the grocery industry also negatively impacts consumers. The recent FTC action to block Kroger Company’s $24.6 billion acquisition of Albertsons Companies, Inc. illustrates the negative impact of reduced competition.  The merger of these two grocery giants, who together own 5,000 stores across forty-eight states, would reduce competition, drive up prices, lower food quality, and degrade customer service. NCL believes that competition benefits consumers, ensuring they receive quality products at fair prices.

Corporate greed almost certainly plays a role in rising grocery prices. One analysis found that over half of the increase (53.9%) in prices in the nonfinancial corporate sector (i.e., companies that produce goods and services) during the height of the COVID pandemic – could be attributed to bigger profit margins. Since the pandemic, mark-ups have remained “extremely elevated relative to historic norms.” Other analyses have found similar results, with corporate profits driving 53% of inflation.

Weekly grocery bills are higher than before COVID-19, and while many factors contribute to this—including supply chain disruptions, pandemic recovery, and interest rates—the bottom line is that consumers are paying more and getting less. The U.S. Department of Agriculture reports that Americans now spend about 11% of their income on food, the highest level in 30 years. Although food prices are expected to rise by 1% this year, consumers are still reeling from last year’s 5% increase.

More work needs to be done at the federal level to understand why inflation rates and the rise in food prices are out of sync. However, one thing is clear: empowering the FTC and state attorneys general to hold companies accountable is a step in the right direction.

The notion that the market will self-correct is not just naive—it is dangerous. Without strong regulatory action, companies will continue to prioritize profits over people, especially in essential sectors like groceries, where families cannot afford price hikes or size reductions. NCL lauds Vice President Harris for taking a stand against corporate greed.

It’s time to put an end to these deceptive practices and ensure that every American has access to affordable, transparent, and fair food pricing. Vice President Harris’s plan is a bold and necessary step toward achieving that goal.

###

 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.

iStock-1058285308_Family seating - Copy (1)

Family seating rules are a victory for passenger rights

/in , , , , , , /by

August 1, 2024

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

WASHINGTON, DC – The National Consumers League (NCL) today applauded the U.S. Department of Transportation (DOT) for proposing long-sought rules requiring air carriers to seat families together at no additional cost. These rules are the culmination of more than a decade of advocacy by advocates, including NCL for common-sense family seating protections.

The following statement is attributable to Sally Greenberg, chief executive officer of the National Consumers League:

“This decision marks the end of the ‘parent tax’ that airlines have gotten away with charging hard-working American families for far too long. Thanks to these common-sense, pro-family rules, parents will soon no longer have to choose between paying a junk fee to sit with their kids or put their children and other passengers at risk by being separated from them in the air. We applaud the leadership shown by the Biden-Harris Administration, Secretary Buttigieg and pro-consumer champions in Congress who helped bring these rules to fruition. NCL looks forward to participating in the rulemaking process and getting these protections across the finish line.”

###

 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 welcomes bill to curb child labor and other worker abuses

/in , , , , , , , , , /by

July 31, 2024

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

WASHINGTON, DC – The National Consumers League (NCL) applauds the July 26th introduction of legislation in the House of Representatives to increase fines for labor violations for workers, including child laborers and wage theft victims. Rep. Bobby Scott (D-VA), the ranking Democrat on the Education and Workforce Committee, introduced the Labor Enforcement to Securely (LET’S) Protect Workers Act, H.R. 9137, which currently has 14 cosponsors.

“‘The LET’S Protect Workers Act’ would deal a blow to unscrupulous employers who exploit workers,” said Sally Greenberg, chief executive officer of NCL. “This much-needed, comprehensive bill will help protect child workers, farmworkers, miners, and others at risk by increasing civil monetary penalties for labor abuses and unfair labor practices. NCL and the Child Labor Coalition, which NCL chairs, heartily endorse the legislation.”

“Unfortunately, shortcomings in our labor laws enable unethical employers to exploit workers, endanger children, and suppress the right to organize—with little accountability.” said Rep. Scott. “That’s why I’m proud to introduce the ‘LET’S Protect Workers Act,’ which will hold bad actors accountable and strengthen penalties for labor law violations. This bill will help level the playing field and, once again, restore the balance of power between workers and their employers,” said Rep. Scott.

The ‘LET’S Protect Workers Act,’ says Rep. Scott, will:

  • Increase civil penalties for violations of child labor, minimum wage and overtime, worker health and safety, and farmworker protection standards.
  • Improve mine safety and reliable funding of black lung benefits through new and increased civil monetary penalties and the option to shut down scofflaw operators.
  • Set new penalties for retaliation against workers who exercise their family and medical leave rights.
  • Strengthen enforcement of mental health parity requirements for employer-sponsored health plans.
  • Close a loophole that allows employers to escape penalties for failing to keep records of workplace injuries if OSHA does not detect the violation within six months.
  • Create new penalties for violations of the National Labor Relations Act, consistent with the Protecting the Right to Organize (PRO) Act.

“The ‘LET’S Protect Workers Act’ will increase maximum fines for child labor violations by a factor of ten—from the current $15,000 to a maximum of $150,000,” said Reid Maki, NCL’s director of Child Labor Advocacy. “This bill is a much-needed boost to the current law and will help to deter a range of troubling labor violations.”

###

 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.

Washington Nationals red cap for News and Highlights Featured Content - Copy (1)

NCL sues Washington Nationals over junk fees not disclosed in advertised prices

/in , , , , , , , , /by

July 17, 2024

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

WASHINGTON, DC – Today, the National Consumers League (NCL) announced that it has sued the Washington Nationals on behalf of a class of affected consumers in the District of Columbia and beyond for violations of the D.C. Consumer Protection Procedures Act in connection with Nationals’ single-game ticket sales practices.

Consumers are entitled to truthful information from merchants, including information about prices. According to NCL’s complaint, the Nationals advertised deceptively low prices for their tickets by failing to disclose mandatory “ticket processing” fees that could increase ticket prices by more than 25%. The complaint explains that tickets the Nationals advertised on their website as “starting at $9” actually cost $11.25 once the mandatory “ticket processing fee” was added, and that in reality, the Nationals never intended to sell those tickets “starting at $9” on their official website.

Concealing fees of this sort – commonly known as “junk fees” – until late in the transaction is a misleading practice known as “drip pricing,” which frustrates and harms consumers, according to the complaint.

NCL’s complaint alleges that this has been a practice for the Nationals for years, and that these ticketing practices are misleading – and illegal under D.C. law. The D.C. Consumer Protection Procedures Act (CPPA), D.C. Code § 28-3901 et seq., provides a robust set of protections for consumers.  Among other things, it protects the basic right not to be misled about the price of goods and services being offered for sale.

“It’s disappointing that ticket sellers like the Nationals hide the real price of their tickets from consumers until so late in the process,” said Sally Greenberg, NCL’s chief executive officer. “The junk fees attached to the Nationals’ tickets are wrong, and they’re illegal.  We hope this lawsuit brings some much-needed reforms to the ticketing industry to help protect consumers from these abusive practices.”

NCL’s lawsuit seeks damages on behalf of the class of consumers as well as other relief.

Read the full complaint here.

###

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.

Chaotic evacuation of American Airlines Flight 2045 shows urgent need for updated evacuation standards and minimum seat sizes

/in , , , , , , /by

July 17, 2024

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

WASHINGTON, DC – The evacuation of American Airlines Flight 2045 on July 12 at the San Francisco International Airport appears to have taken significantly longer to complete than the federal standard of 90 seconds. While only minor injuries have been reported, delays in the evacuation created an unacceptable risk of major injuries or death for the passengers and crew on board.

Such chaotic scenes again highlight the urgent need for the Federal Aviation Administration (FAA) to update its emergency evacuation standards to reflect the modern flying environment.

The lengthy American Airlines evacuation was not an anomaly; evacuations over the past decade have consistently exceeded the FAA’s 90-second standard. Evacuation standards were last updated in 2005 and over the intervening 19 years, the in-cabin environment has evolved substantially. Despite these changes, the FAA has rejected or failed to act on 27 recommendations from the FAA Emergency Evacuation Standards Advisory Rulemaking Committee or those of the U.S. Department of Transportation’s own Inspector General. 

As a result, the American Economic Liberties Project, Consumer Action, Consumer Federation of America, FlyersRights, the National Consumers League, Travelers United, and U.S. PIRG are calling on the FAA to urgently address its antiquated safety regulations by:

Updating outdated evacuation standards. Current standards do not reflect the modern cabin environment and do not account for passengers of all ages and body types, record-high passenger load factors, the proliferation of personal electronic devices, the increased amount of carry-on baggage, or the cramped seating conditions of modern aircraft.

Establishing minimum passenger seat sizes. Despite receiving two mandates from Congress and over 26,100 public comments on the issue, the FAA still has not set minimum dimensions for airplane seats. The consistent shrinking of passenger seating has allowed carriers to increase the number of passengers in the aircraft without also increasing the number of exits. Additionally, the cramped seating poses a physical impediment to quick evacuation of the aircraft. 

“The FAA has the ability to reduce the risk of the chaos like what unfolded on Flight 2045,” said John Breyault, National Consumers League vice president of Public Policy, Telecommunications, and Fraud. “Passenger safety and a profitable airline industry are not mutually exclusive. For too long, however, the agency has allowed the airline industry’s concerns about its bottom line to stand in the way of creating standards that lead to a safer cabin environment. That has to stop.”

“The FAA is long overdue in updating its emergency evacuation training and procedures,” said William J. McGee, senior fellow for Aviation & Travel at American Economic Liberties Project. “In recent years we’ve gotten very lucky, as numerous potentially deadly evacuations far exceeded the FAA’s own 90-second timeline. It’s time to rely on proven standards rather than luck.”

“This serves as another example of why the FAA must look at this issue with the importance it deserves,” said Teresa Murray, consumer watchdog director, U.S. PIRG. “The recent evacuation tests relied on ‘able-bodied adult subjects under 60,’ the FAA acknowledged in 2022. We all know this doesn’t reflect modern travel — planes filled with children, senior citizens, people with disabilities and people who are heavy. This issue must be prioritized before we have a tragedy.”

“Emergency landings and emergency evacuations occur several hundred times annually often due to smoke or fire in the cabin. The latest incident showed confusion and panic after a fire erupted in the rear of the plane,” said FlyersRights President Paul Hudson. “Needed improvements were recommended unanimously by the FAA Emergency Evacuation Advisory Rulemaking Committee in 2020. But it is up to FAA Administrator Whitaker to take action, without further delay.”

“This terrifying event is a stark reminder to the FAA to move forward with updated, safer evacuation standards and seating dimensions that reflect current air travel conditions,” said Erin Witte, director of consumer protection at Consumer Federation of America. “We urge the FAA to take the opportunity provided by Congress in the Reauthorization Act to publicly commit to addressing these issues.”

###

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 statement on FTC interim report on PBMs

/in , , , , , , , , , /by

July 10, 2024

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

WASHINGTON, DC – The National Consumers League (NCL) today applauds the Federal Trade Commission’s (FTC) interim staff report on prescription drug middlemen, pharmacy benefit managers (PBMs). The report details how PBMs profit at the expense of patients, inflating drug costs and squeezing Main Street pharmacies.

The following statement is attributable to NCL’s Robin Strongin, Senior Director of Health Policy:

“The FTC’s continued investigation into PBMs, and this latest report, shows promising momentum in addressing the high out-of-pocket costs of medicines consumers face. Countless investigations such as this, as well as news coverage, patient stories, and pharmacy closures across the country, prove again and again that PBMs are doing more harm than good. As the report shows, the vertical integration of PBMs has allowed them to rake in profits at the expense of patients and independent pharmacies.

“That said, we also recognize that this interim report and its findings don’t go far enough. It’s well past time to examine and address the overall corporatization of health care, including the vertical integration of the industry. In the current set-up, the biggest winners are the health insurance corporations that own PBMs, doctors, pharmacies and more. The biggest losers? Consumers.

“While NCL is encouraged that the FTC is working to hold PBMs accountable, we also encourage the need for meaningful reform that helps and doesn’t harm consumers.”

The full report can be accessed here.

###

 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 submits letter to CDC urging them to make flu and COVID vaccines available at same time

/in , , , , , , /by

June 25, 2024

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

WASHINGTON, DC – Last week, NCL submitted comments to the Centers of Disease Control and Prevention (CDC) Advisory Committee on Immunization Practices (ACIP) in response to their request for public comments in advance of the ACIP meeting being held June 26 – 28, 2024 in Atlanta, Georgia. During this meeting, ACIP will be discussing several vaccines, including but not limited to COVID-19, flu and RSV vaccines. The committee will also be voting on recommendations many of the vaccines discussed, including COVID, flu and RSV for adults.

In the comments, NCL urges that the Committee do all in its power to ensure that both flu and COVID vaccines are made available at the same time, thus allowing patients to receive both vaccinations at the same appointment. NCL also asks that ACIP review the current recommendations for the RSV vaccine, specifically the shared clinical decision-making requirement. To read NCL’s comments in full, click here.

The Advisory Committee on Immunization Practices (ACIP), which is composed of fifteen medical and public health experts and is charged with advising the CDC Director on the use of vaccines and the adult and childhood immunization schedules. ACIP meets regularly to review data, studies and proposals for vaccines, and as needed for emergency cases. Meetings are open to the public, and since COVID they have been streamed online. The June 26 – 28 meeting will be streamed online, via YouTube and is available to watch here.

###

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 welcomes the 340B ACCESS Act

/in , , , , , , , /by

May 30, 2024

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

WASHINGTON, DC – The National Consumers League welcomes the introduction of the 340B Affording Care for Communities and Ensuring a Strong Safety-Net Act (340B ACCESS Act), which makes needed reforms to protect the 340B program from misuse while lowering drug costs for low-income patients. We are particularly supportive of the proposed ban on aggressive debt collection practices as a condition for hospitals participating in the program. Such practices are unacceptable and out of sync with the mission of a safety-net provider.

Just this week the Wall Street Journal featured an article highlighting the aggressive debt collection practices of a rural Kansas hospital that is suing low-income patients over unpaid medical bills. This legislation ensures that hospitals cannot exploit their 340B status to deny patients who need access to charity care and then sue them for medical debt.

###

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.

Advocates call on Biden Administration to act on airline passenger protection mandates

/in , , , , , /by

May 28, 2024

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

WASHINGTON, DC – With the summer travel season under way, consumer and passenger rights advocates today called on the Biden Administration to act expeditiously on consumer protection rulemakings and other actions mandated by the recently enacted Federal Aviation Administration (FAA) reauthorization language. In a letter to President Biden and Secretary Buttigieg, the groups urged the Administration to prioritize the following actions:

  • Nominating a pro-passenger Assistant Secretary of Aviation Consumer Protection;
  • Ensuring that the FAA establishes minimum seat size standards for air carriers;
  • Improving reporting of the causes of flight delays to the U.S. Department of Transportation (DOT);
  • Ensuring that customer service channels are staffed by humans; and
  • Completing an independent non-partisan study of airline industry consolidation.

“Beginning the hard work of making airline travel less frustrating for passengers should not wait for the next election,” said John Breyault, Vice President of Public Policy, Telecommunications, and Fraud at the National Consumers League (NCL), which organized the letter. “Congress gave the Administration an aggressive timeline for implementing the new law, and we do not want these important new protections to be slow walked.”

“Both parties and both Houses of Congress put forth key protections for consumer advocacy, competition, and safety,” said William J. McGee, Senior Fellow for Aviation & Travel at American Economic Liberties Project. “In the past we’ve seen legislation that was not fully acted upon, and we urge the Biden Administration to swiftly and decisively implement these new laws.”

“The message from Congress is clear: the Administration must promptly take concrete steps to improve air travel for Americans,” said Erin Witte, Director of Consumer Protection for Consumer Federation of America. “Rather than waiting or delaying, the Administration should push forward and prioritize the implementation of the Reauthorization Act.”

“Congress has done its job and now it’s time for the Administration to do theirs,” said Teresa Murray, Consumer Watchdog Director at U.S. PIRG. “As we saw during COVID, our economy and our quality of life relies a lot on safe, reliable air travel. We’re eager to see these changes enacted quickly in hopes that air travel will become pleasant again.”

“Since 2007, FlyersRights as the largest airline passenger organization has been advocating for many of the provisions in this legislation,” said Paul Hudson, President of FlyersRights.org. “But while Congress previously required the FAA to enact numerous measures such as minimum seat size in 2018, FAA and DOT have often failed to act on Congressional mandates. This time must be different!”

The letter was signed by nine consumer and passenger advocacy organizations, including the American Economic Liberties Project, Consumer Action, Consumer Federation of America, Consumer Reports, FlyersRights.org, National Consumers League, Public Citizen, Travelers United, and U.S. Public Interest Research Group.

To read the full letter, click here.

###

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.