Groups offer support for Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act of 2021

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December 9, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The National Consumers League, Business Travel Coalition, Consumer Federation of America, Consumer Reports, and U.S. PIRG have signed onto a letter to Members of Congress in support of the Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act of 2021. Their letter appears below:

Dear Chairman DeFazio, Ranking Member Graves, Chairman Larsen, and Ranking Member Graves:

The undersigned consumer advocacy organizations support the Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act of 2021. This bill would protect consumers from unreasonable fees that airlines have reimposed as consumer demand to fly has rebounded from the pandemic.

Millions of consumers are annually charged excessive fees for checking baggage, changing reservations, canceling flights, and other services.[1] These fees are a major profit center for the airlines. For example, U.S. airlines collected $5.8 billion in baggage fees alone in 2019.[2] Compare this to analyst estimates that it costs airlines less than $20 per bag flown to provide the service.[3]  Furthermore, exaggerated change and cancellation fees are especially punitive as consumers cannot plan for unexpected events that force them to adjust their reservations.

The capture of more than 80% of domestic air traffic by just four U.S. airlines is a clear predicate of the rise in ancillary fees.[4] The non-competitive nature of the industry has allowed predatory practices to go unchallenged for too long. To be clear, airlines have the right to charge appropriate fees to cover operational costs and to make a profit. However, the supra-competitive amounts that airlines collect for providing basic services are unjustifiable. Prior to some ancillary fees being waived during the COVID-19 pandemic, such add-on fees were a steadily increasing source of revenue for the industry.[5] Now that the airlines’ moratorium on many of their fees has ended, we are concerned that this trend will resume.

The federal government must act to protect consumers from being forced to pay billions of dollars in bogus charges. The FAIR Fees Act, which has received bipartisan support,[6] would bring much-needed relief to travelers by requiring fees to be reasonable and reflect the actual costs of the services provided.

In addition to this immediate cost-saving benefit to consumers, the FAIR Fees Act would also direct the Department of Transportation to review any other fees charged by airlines and work to reduce airlines’ untaxed revenue. Since the IRS does not consider baggage fees or other ancillary fees to be related to the transport of a person, airlines do not pay excise taxes on the earnings they receive from these charges.[7] As ancillary charges have become a major source of revenue for the industry, this loophole has allowed airlines to avoid (conservatively) hundreds of millions of dollars in federal taxes.[8] Therefore, reining in ancillary fees would help reduce the amount of untaxed income this industry receives.

We applaud Representative Cohen for his continued leadership in protecting consumers from the exorbitant ancillary charges found on too many plane tickets. We urge your respective committees to report the legislation without delay.

Sincerely,

National Consumers League
Business Travel Coalition
Consumer Federation of America
Consumer Reports
U.S. PIRG

 

cc:       Members, House Committee on Transportation & Infrastructure

[1] USA TODAY. Shopping for flights? Change fees and other pre-pandemic penalties are back or returning soon on cheapest tickets. April 2, 2021. Online: https://www.usatoday.com/story/travel/airline-news/2021/04/02/covid-travel-airlines-change-fees-return-cheap-tickets-american-united/4805128001/

[2] CNBC. US airlines charged almost $5 billion in baggage fees last year—here’s how to avoid them. May 16, 2019. Online: https://www.cnbc.com/2019/05/15/us-airlines-brought-in-almost-5-billion-dollars-in-baggage-fees-last-year.html

[3] McCartney, Scott. “What It Costs An Airline to Fly Your Luggage,” Wall Street Journal. (November 25, 2008). Online: https://www.wsj.com/articles/SB122757025502954613 (Note: $15 in November 2008 is equal to $19.11 when adjusted for inflation in September 2021, per the U.S. Bureau of Labor Statistics.)

[4] Openmarketsinstitute.org. Airlines & Monopoly. Online: https://www.openmarketsinstitute.org/learn/airlines-monopoly

[5] Statista.com. Total ancillary revenue in the airline industry from 2011 to 2020. December 4, 2020. Online: https://www.statista.com/statistics/788849/airline-industry-ancillary-revenue/

[6] Office of Senator Edward J. Markey. “FAA Bill a Missed Opportunity to Protect Passengers from Ridiculous Airline Fees, Says Senator Markey.” Press release. (October 3, 2018) Online: https://www.markey.senate.gov/news/press-releases/faa-bill-a-missed-opportunity-to-protect-passengers-from-ridiculous-airline-fees-says-senator-markey

[7] Smarter Travel. If Fees Were Taxed, Would Airlines Ditch Them? July 16, 2020. Online: https://www.smartertravel.com/if-fees-were-taxed-would-airlines-ditch-them/

[8] Testimony of Dr. Gerald Dillingham (Director of Civil Aviation Issues, U.S. Government Accountability Office) before the House Subcommittee on Aviation. (July 14, 2010) (“However, if checked bag fee revenues that airlines reported in fiscal year 2009 had been subject to the excise tax on domestic travel, it would have generated about $186 million, or somewhat less than 2 percent of the Trust Fund revenues for 2009.”) Online: https://www.congress.gov/event/111th-congress/house-event/LC6763/text?s=1&r=9

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About the National Consumers League

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 salutes outgoing Consumer Federation of American Executive Director Jack Gillis on his 38 years of service to consumers

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November 19, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The National Consumers League salutes Jack Gillis on his 38 years of service to the consumer movement; Gillis has announced his retirement as Executive Director of the Consumer Federation of America.

“The National Consumers League’s Board of Directors and staff salute Jack Gillis and thank him for his decades of service and marvelous career dedicated to improving the lives of consumers,” said Jenny Backus, Pastor Herrera, Susanna Montezemolo, and Debbie Berlyn, NCL board members who have known and worked with Jack over the years. “He has made us all proud to be consumer advocates. We will miss his leadership and know the consumer movement is forever changed because of his dedication and commitment.”

Jack Gillis is also a well published author, co-author, and editor of 75 consumer books including The Car Book, published for 40 consecutive years. He served for 10 years as a contributing consumer correspondent for NBC’s Today Show representing CFA, was Good Housekeeping’s personal finance columnist, and was a child product safety columnist at Child Magazine.”

Gillis has been with CFA since 1983, serving as Director of Public Affairs and, since 2018, as Executive Director. “Jack Gillis has been a leader, mentor, and friend to several generations of consumer advocates. Jack’s vision for consumer issues is legendary, and he is known to the Washington establishment – members of Congress, regulators, and public interest advocates alike — as the face of consumer advocacy. Jack spearheaded CFA’s leadership on a wide variety of consumer issues, including auto safety, financial services, housing, privacy, food, and product safety issues,” said Sally Greenberg, NCL’s Executive Director. “Jack always had a ready ear, provided support and sound advice to me and countless others toiling in the grapevines on behalf of consumers. It’s a tough line of work and we will miss his camaraderie and friendship.  We wish him well in this exciting new chapter of life.”

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About the National Consumers League

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 statement on the passage of the INFORM Consumers Act

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November 17, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The National Consumers League (NCL), America’s pioneering consumer advocacy organization, today applauded the House Committee on Energy and Commerce for its vote to report out H.R. 5502, the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act.

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

Over the past 20 months, the COVID-19 pandemic has highlighted the important role that online sales platforms play in connecting consumers to the marketplace. As consumers have flocked to these marketplaces, the need for these platforms to better address unsafe products, counterfeiting, and the policing of third-party sellers has become ever more urgent.

Providing consumers with basic information about whom they are buying products from and how to contact the company is a cornerstone of consumer protection. We strongly support Congresswoman Schakowsky’s and Congressman Bilirakis’ bipartisan bill and urge the full House of Representatives to swiftly approve this legislation.

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About the National Consumers League

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 launches FactsAboutRecycling.org to inform consumers about recyclability, sustainability of food and beverage packaging

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November 15, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—Today, on America Recycles Day, National Consumers League (NCL) launched FactsAboutRecycling.org, an information hub where consumers can learn more about what actually happens to the food and beverage packaging they toss in the recycling bin. The new site houses an animated video to help explain the recycling system, correct misinformation proliferated through marketing, and educate and empower consumers to make environmentally sustainable purchases.

“Just because something can be put in the recycling bin doesn’t mean it will truly end up being recycled,” said Sally Greenberg, NCL’s executive director. “Consumers deserve to know the truth about the sustainability of their purchases, so they can make the most informed decisions possible.”

Building upon NCL’s sustainability and honesty-in-marketing work over the past year, including infographics, podcasts, and a white paper entitled Examining Sustainability, Consumer Choice, and Confusion in Food and Beverage Packaging, FactsAboutRecycling.org gives consumers and environmental advocates fresh insight into the true sustainability of plastic, glass, metal, and cartons.

“Misleading marketing claims don’t just harm consumers; they can harm the environment and exacerbate the ongoing plastic pollution crisis. Better information will support smarter purchasing,” said Greenberg.

For more information, visit www.FactsAboutRecycling.org.

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About the National Consumers League

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 applauds FDA nomination of Robert Califf

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November 15, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The National Consumers League extends congratulations to Dr. Robert Califf for his nomination to serve as Commissioner of the U.S. Food and Drug Administration. As COVID-19 persists and the nation continues to face unprecedented public health challenges, consumers rely on the FDA to ensure the safety and efficacy of our food and prescription drug supply.

NCL Executive Director Sally Greenberg weighed in with the following statement:

“NCL welcomes Dr. Robert Califf to the important role as Commissioner of the FDA. We have worked with Dr. Califf during previous administrations and can attest that he brings a longstanding commitment to FDA’s crucial role of overseeing the nation’s food and drug industry as well as medical devices and cosmetics. Dr. Califf has a long list of priorities ahead of him, and it is our hope that we can look forward to working with him on matters of consumer protection.

Among NCL’s consumer safety concerns is the proliferation of unregulated CBD products in the marketplace, encouraging confidence in vaccines for the prevention of COVID-19 and other infectious diseases, ensuring accurate food and nutrition labeling information for consumers, and making prescription drugs accessible and affordable for all Americans.

NCL worked productively with Dr. Califf during his previous appointment as FDA commissioner, and we look forward to continuing to serve as a resource to the FDA under his leadership to ensure that both patient and consumer protection remain the highest priority.”

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About the National Consumers League

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 applauds approval of the pediatric COVID-19 vaccine

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November 2, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The National Consumers League (NCL) applauds the coordinated efforts of the U.S. Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) to approve the Emergency Use Authorization (EUA) of the Pfizer-BioNTech COVID-19 vaccine for children ages 5 to 11. Consumers should be reassured that an unbiased advisory committee composed of medical and scientific experts have reviewed the data and have held public meetings to provide Americans with a transparent approval process.

“NCL is committed to educating consumers about vaccine safety and efficacy in order to increase vaccine confidence. Every day, parents make tough decisions to keep their children safe. We want parents to feel informed and empowered in their decision to vaccinate their children. As a parent of two boys ages 8 and 10, I’m looking forward to being able to protect my children from COVID-19 and put this pandemic behind us,” said NCL Director of Health Policy Jeanette Contreras.

Parents and guardians are encouraged to use the CDC’s V-Safe mobile app to tell the CDC about any side effects experienced after getting vaccinated. Parents will be able to add dependents to their account and get reminders if you need an additional dose. Register here: https://vsafe.cdc.gov/

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About the National Consumers League

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 offers support for Star Rating for Biosimilars Act, H.R. 2855

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October 13, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (724) 799-5392

Washington, DC—The National Consumers League (NCL) is pleased to support the Star Rating for Biosimilars Act, as introduced by Representatives Paul D. Tonko (D-NY) and Bob Gibbs (R-OH). NCL believes that implementing a rating system for biosimilars would incentivize insurers to provide lower cost drug alternatives and alleviate the financial burdens on patients.

The Centers for Medicare and Medicaid Services (CMS) currently has a star ratings system for insurance plans under Medicare Advantage and Part D. The quality measures capture items such as clinical quality, beneficiary satisfaction, patient outcomes, and regulatory compliance. This rating system helps the CMS evaluate which plans to keep and discontinue. To date, we do not have a comparable rating system where biosimilars are concerned. “Biosimilars are on average 30 percent cheaper than their biologic counterparts, yet many existing barriers in our current healthcare plans prevent patients from accessing these cost-saving medicines,” said NCL Director of Health Policy Jeanette Contreras.

The Star Ratings for Biosimilars Act would require the CMS to put in place a five-star performance rating system for biosimilar products under Medicare Advantage Plans. For each plan, the ratings will be based on quality measures meant to evaluate the level of access that each insurance plan provides to biosimilars, such as whether a biosimilar is on the formulary, and the percentage of enrollees prescribed a biosimilar when its biologic counterpart is available. Aside from Advantage Plans, the bill would also require the CMS to incorporate these measures into a similar rating system for plans under the Medicare Part D prescription drug benefit.

The NCL believes in transparency as a core function of informed decision-making. Knowing whether cost saving biosimilars would be available to enrollees under various Medicare (including the Medicare Advantage plans) and Part D plans would bring in more transparency to help consumers be more informed when selecting a plan. “Allowing consumers to see which plans are offering access to lower cost biosimilars would also incentivize Medicare plans to increase patient access to biosimilars,” said Contreras. We encourage Congress to pass the Star Rating for Biosimilars Act in order to broaden access to and encourage increased provision of cost-saving biosimilars.

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About the National Consumers League

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.

Watchdog group to present annual awards to incoming CFPB Director Chopra, Michigan Governor and AG, and SEIU Local 2015 President Verrett on Tuesday, 10/12

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October 11, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (724) 799-5392

Washington, DC—The National Consumers League (NCL), the nation’s pioneering consumer and worker advocacy organization, will honor Rohit Chopra, incoming Director of the Consumer Financial Protection Bureau, Michigan Governor Gretchen Whitmer, and Michigan Attorney General Dana Nessel, with its highest honor, the Trumpeter Award, on Tuesday, October 12 in Washington, DC.

In addition to the Trumpeter Award, NCL will honor April Verrett, President of Service Employees International Union Local 2015 in Los Angeles, with the 2021 Florence Kelley Consumer Leadership Award, named for NCL’s first general secretary and one of the most influential figures in 20th Century American history.

MEDIA ADVISORY

What: National Consumers League’s 2021 Trumpeter Awards
When: Tuesday, October 12, 2021 | 7 pm Dinner and Presentation of Awards
Where: The Mayflower Hotel | Grand Ballroom | 1127 Connecticut Ave, NW, Washington, DC 20036

The National Consumers League, founded in 1899, has been honoring visionaries in consumer and worker protection with its annual Trumpeter Award since 1973. Past honorees include: Senator Ted Kennedy, the award’s inaugural recipient, as well as Labor Secretaries Hilda Solis, Robert Reich, and Alexis Herman, Senators Carl Levin and Paul Wellstone, Delores Huerta of the United Farm Workers, U.S. Representative John Lewis, and other honored consumer and labor leaders.

Last year’s Trumpeter recipients were Federal Communications Commission Commissioner Jessica Rosenworcel and journalist Vicky Nguyen. Attorney General for the District of Columbia Karl Racine was recipient of the Florence Kelley Consumer Leadership Award.

This year’s Trumpeter Awards will feature a reception, dinner, and speaking appearances by NCL leadership and the honorees, as well as:

  • Maria Cardona, CNN Commentator & Principal of Dewey Square Group
  • Former FTC Chairman Jon Leibowitz
  • Grace Whiting, President and CEO of the National Alliance for Caregiving
  • Karl Racine, Attorney General of the District of Columbia
  • NCL Board Chair Dominique Warren, Deputy Director of Government Relations at Service Employees International Union

To learn more, visit nclnet.org/trumpeter_awards.

Due to COVID restrictions, attendance at this event is limited. Members of the media may inquire about attendance options by contacting Carol McKay, (724) 799-5392.

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About the National Consumers League

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.

Script Your Future launches tenth annual student competition for innovations in medication adherence

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February 1, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—Today marks the launch of the tenth annual Script Your Future Medication Adherence Team Challenge, a two-month-long intercollegiate competition among health profession student teams and faculty for creating solutions to raise awareness about medication adherence as a critical public health issue. The Challenge, hosted by the National Consumers League (NCL), is returning to university campuses across the country after nine years of successful student competition and innovation.

The Challenge is an integral part of Script Your Future, a campaign launched by NCL and its partners in 2011 to combat the problem of poor medication adherence in the United States, where nearly three out of four patients do not take their medication as directed.

“Today’s medications are better than ever at treating and curing people, but these treatments can only work if patients know the importance of taking their prescriptions as directed. It takes all members of the health team to make that happen,” said Sally Greenberg, NCL Executive Director. “For 10 years, our Script Your Future Medication Adherence Team Challenge has galvanized student health professionals to explore creative, interprofessional approaches, in encouraging medication adherence. To usher Script Your Future into the next era of improving adherence, we have implemented two new components to the Team Challenge: technology innovation and vaccine adherence. We have been blown away by the ingenuity of our student teams, and we look forward to how they will contribute to their communities in this year’s Team Challenge.”

As the nation continues to navigate the COVID-19 pandemic, Script Your Future teams are encouraged to build their campaigns centering around vaccine confidence to help address hesitancy and mitigate further spread of the coronavirus. Teams are encouraged to tailor their outreach towards chronic health issues including cardiovascular disease, hypertension, diabetes, and respiratory illnesses. Challenge administrators also welcome the inclusion of other disease groups that would benefit from medication adherence-related interventions.

The Challenge is sponsored by the American Pharmacists Association (APhA), the National Association of Chain Drug Stores (NACDS) Foundation, and the National Community Pharmacists Association (NCPA).

Through April 2, inter-professional teams—including student pharmacists, nurses, doctors, and others—will implement creative outreach approaches in their communities to raise awareness and improve understanding about medication adherence. At the end of the Challenge, teams submit entries for review by national partner organizations, and winners are recognized for their efforts to improve medication adherence.

Last year, Team Challenge student health professionals were met with unique circumstances, hurdles, and obstacles as they navigated the historic COVID-19 pandemic, which resulted in school closures, event cancelations, and a host of other challenges. To adhere to social distancing guidelines, dedicated teams pivoted their campaigns and made an impact in other ways. Ultimately, however, more than 80 teams submitted applications; the competition saw engagement from nearly 2,900 future healthcare professionals and volunteers, who hosted more than 250 events in 14 states. Collectively, the teams directly counseled close to 12,000 patients and introduced Script Your Future messaging to more than 430,000 consumers, nationwide.

Since the Team Challenge began in 2011, more than 21,000 future healthcare professionals have directly counseled nearly 87,000 patients and nearly 26 million consumers.

Last year’s national award winner was University of the Sciences: Philadelphia College of Pharmacy. Other schools winning category-specific honors included: Howard University College of Pharmacy; St. Louis College of Pharmacy; Lake Erie College of Osteopathic Medicine School of Pharmacy (LECOM); University of Pittsburgh School of Pharmacy; and Western University College of Pharmacy. Additional participating schools received finalist and runner-up status across a variety of award categories.

To learn about previous winners, visit Script Your Future’s online home.

For more information on the Challenge, visit the Challenge Community website.

Tweet along with us during the Challenge using #SYFchallenge, and follow the campaign @IWillTakeMyMeds.

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About National Consumers League

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.

About Script Your Future

Script Your Future is a campaign of the National Consumers League (NCL), a private, non-profit membership organization founded in 1899. NCL’s mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information about the Script Your Future campaign, visit ScriptYourFuture.org. For more information on NCL, please visit nclnet.org.

Delta and American ending change fees another victory for consumers

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Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League (NCL) today applauded Delta Airlines and American Airlines for their decisions to end ticket changes fees. The decision, prompted by United Airlines’ decision on Sunday to end change fees, comes after nearly a decade of advocacy by NCL and other consumer organizations to put an end to such outrageous fees.

While the end of change fees at the Big Three airlines is a victory for consumers, the airlines continue to collect billions of dollars in add-on fees for services such as baggage, seat reservations, and early boarding. In addition, low-cost carriers like Spirit and Frontier and smaller airlines like JetBlue, Hawaiian, and Alaska continue to charge exorbitant change fees.

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

Following United’s lead, Delta and American have taken the right step for their customers by ending change fees. Consumers often need to change a ticket reservation due to circumstances beyond their control. We don’t think they should be penalized to the tune of hundreds of dollars when life’s uncertainties interfere with travel plans.

While Delta has committed to ending change fees permanently and American has agreed to also end change fees on some international flights, more needs to be done to ensure that change fees are consigned to the dustbin of aviation industry history. The commitment to not charge change fees should be included in all three airlines’ contracts of carriage, the legally binding document that underpins each ticket. Without this action, we fear that the airlines will simply slide back into their old ways when the economy rebounds from the COVID-19 crisis or when a new CEO takes over.

Congress should also continue to push for legislation like the FAIR Fees Act, which will promote transparency and fairness in the air travel marketplace for all consumers, not just customers of the biggest airlines. NCL will continue to advocate for such common-sense consumer protection legislation.

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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.