March 15, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC—Over the years, opportunistic con artists have exploited both natural disasters and terrorist attacks to bilk generous consumers attempting to make financial contributions to rescue efforts, warns the National Consumers League. The recent devastating earthquake and Tsunami in Japan will likely be no exception.

NCL, the nation’s oldest consumer advocacy organization, collects consumers’ complaints of telemarketing and Internet fraud through NCL’s Fraud Center (www.fraud.org), and anticipates it will soon receive reports of tsunami-related scams.

“In the days following a natural disaster, we often hear from consumers about crooks’ attempts to take advantage of tragic events for their personal gain,” said John Breyault, Director of NCL’s Fraud Center.

After the September 11^th terrorist attacks, as well as after Hurricane Katrina and the 2010 earthquake in Haiti, NCL’s Fraud Center received reports of a variety of scams tailored by con artists to capitalize on the rescue efforts. Scams typically involve con artists sending out emails purporting to come from a known and respected charity such as the Red Cross or Oxfam International. Victims are then directed to a fake Web site made to look like a legitimate charity’s site, where they are asked to hand over personal information or to donate via wire transfer, PayPal, or a credit or bank account. The scammer then makes off with the donation, and no funds are sent to support actual disaster relief.

“The continued tragedy of fraud perpetrated in the wake of such disasters is that charity scams not only rob the donors,” said Sally Greenberg, NCL Executive Director. “They divert contributions from legitimate charities, who are in great need for money and goods to assist those who need it most.”

NCL warns consumers to be especially wary of emails from strangers. While many legitimate companies, organizations, and individuals are using the Internet to mobilize help for disaster victims and share information about the latest developments, crooks may use email or social networking sites such as Facebook or Twitter to reach a wide audience of potential victims.

“Be cautious about any solicitation that mentions the disaster. Consumers interested in giving to the relief effort should give to charities they know and trust,” said Breyault. “Consumers who want to support disaster relief should contact respected charities directly to make a contribution.”

Additional tips for avoiding charity scams include:

Be wary of clicking on links or on attached files labeled photos or video in emails from senders claiming to represent charities because they may contain viruses.

Consumers can confirm that charities are properly registered by contacting their state charities regulators, which are listed in the state government pages of their telephone books. Information about charities is also available from the Better Business Bureau Wise Giving Alliance, 703-276-0100, www.give.org.Consumers can also check out charities at GuideStar (https://www.guidestar.org/), and Charity Navigator (https://www.charitynavigator.org/), both of which contain links to legitimate charities working on the relief effort.

Consumers can report disaster-related telemarketing or Internet fraud to NCL’s Fraud Center via the online complaint form on www.fraud.org.

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About the National Consumers League

Founded in 1899, the National Consumers League is America’s pioneer consumer organization. Its mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. NCL is a private, nonprofit membership organization. For more information, visit www.nclnet.org.

February 24, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC—The National Consumers League (NCL), the organization which helped pass federal child labor laws in the United States more than 70 years ago, is calling a Missouri bill to bring back child labor “straight out of a Charles Dickens novel.” The 112-year-old NCL is condemning a bill introduced in the Missouri state Senate by Republican Jane Cunningham that would eliminate the prohibition on employment of children under age 14.

“Labor crusader Florence Kelley would be rolling over in her grave,” said NCL Executive Director Sally Greenberg. “This is a new low,” said Greenberg. “Those who are attacking labor and worker protections are now apparently willing to put children back into factories or coal mines.”

Florence Kelley led NCL as the organization’s first Executive Secretary from its founding in 1899 to her death in 1932 and helped draft and enact many of the child labor laws in the United States. The National Consumers League currently co-chairs the 26-member Child Labor Coalition (www.stopchildlabor.org), which works to maintain and improve standards and protections for children working both in the United States and abroad.

The Missouri legislation, SB 222:

• removes the restrictions on the maxium number of hours and time of day during which a child may work;

• repeals the requirement that a child ages 14 or 15 obtain a work certificate or work permit in order to be employed;

• allows children under 16 to work in any capacity in a motel, resort, or hotel where sleeping accommodations are furnished; and,

• removes the authority of the director of the Division of Labor Standards to inspect employers who employ children and to require them to keep certain records for children they employ. It also repeals the presumption that the presence of a child in a workplace is evidence of employment.

“The last provision would make it extremely difficult for state labor inspectors to detect child labor in the workplace,” said Reid Maki, coordinator of the CLC and NCL’s Director of Corporate Social Responsibility and Fair Labor Standards. “Senator Cunningham is portraying these changes as common sense and innocuous amendments to current law, but they are really a full-frontal assault on child labor protections. Cunningham believes that allowing children to work late into the night makes sense, but late-night hours would expose teens to a greater risk of robbery and assault as well as make it more difficult for the young workers to perform well in school the next morning.

“Americans support the bedrock principle that children should be in school and not in the workplace,” noted Greenberg, who serves as co-chair of the Child Labor Coalition. “NCL and other organizations fought for decades to achieve the protections we have today for young workers. We cannot and should not roll back the clock.”

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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.

February 10, 2011

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC — The nation’s oldest consumer group told the Food and Drug Administration (FDA) today that allowing a name change of High Fructose Corn Syrup (HFCS) to “Corn Sugar” would be misleading to consumers and possibly expose the agency to future dilemma, depending on how scientific research and public perception may continue to evolve.

“Regardless of where you stand on the debate over High Fructose Corn Syrup and its effects on our waistlines and our health, changing the name after decades of use is unfair to consumers,” said Sally Greenberg, Executive Director of the National Consumers League. “Consumers are familiar with HFCS, they know how to find it on Nutrition Facts labels, and they deserve consistency so they can continue to make purchasing decisions.”

The National Consumers League (NCL), a Washington, DC-based nonprofit watchdog group, filed formal comments with the FDA urging the agency to reject a petition by the Corn Refiners Association requesting that the name of High Fructose Corn Syrup, a sweetener commonly found in soft drinks and processed foods, be changed to “Corn Sugar.”

The request by the corn refining industry, which makes HFCS, comes before a backdrop of controversial and evolving debate over the ingredient’s nutritional value and possible health implications.

The FDA officially approved the name “High Fructose Corn Syrup” in 1983, and the sweetener has been referred to by that name ever since. HFCS consumption has come under fire in recent years as a possible factor in a variety of health problems ranging from obesity to diabetes, and as a result, some consumers have decided to avoid HFCS. Several manufacturers of brand name foods and beverages have stopped using the ingredient including Hunt’s ketchup, Snapple, Gatorade, and Starbucks’ baked goods.

“The FDA should not play spin doctor for the corn refining industry or shield food companies who use the ingredient from the impact of emerging scientific evidence or from consumer preferences. Just as it would be premature to conclude that HFCS is harmful to health, an official name change could frustrate further scientific study and confuse or irritate consumers,” said Greenberg. “Should it turn out that HFCS does contribute to obesity or other adverse health outcomes, a regulatory decision allowing manufacturers to hide this ingredient from consumers could come back to haunt FDA.”

To read NCL’s letter to the FDA, click here.

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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.

January 19, 2011

Contact: (202) 835-3323, media@nclnet.org

Washington, DC—The National Consumers League (NCL) has released its annual report on the top scams reported to its national Fraud Center, and the nonprofit consumer group noted a growing trend in 2010 indicating that older consumers have been targeted hard by con artists and are disproportionately falling victim to sweepstakes scams.

The report, which is compiled from consumer complaints submitted to NCL’s Fraud Center, examined trends in Internet and telemarketing fraud in 2010.

“Fraudulent telemarketers and Web-based scammers aren’t just pushy salespeople trying to make a living – they are hardened criminals out to take their victims’ life savings,” said NCL Executive Director Sally Greenberg. “Con artists know that older consumers may be particularly vulnerable to falling for a bogus pitch, using scare tactics, posing as legitimate outfits, or making the offer sound so sweet that it’s difficult for consumers to resist.”

Indeed, just last month, NCL’s Fraud Center alerted consumers of scam artists using variations on the so-called “Grandparent Scam,” in response to a number of consumer complaints that the Fraud Center received regarding attempted and successful frauds by unscrupulous scammers.

In a typical Grandparent Scam, a con artist calls or emails the victim posing as a relative in distress or as someone claiming to represent the relative (such as a lawyer or law enforcement agent). The scammer may frantically tell the victim a variation of “Grandma, it’s me,” followed by a description of the problem in which they have found themselves (arrested, in an auto accident, in need of a lawyer, etc.). The victim is then instructed to wire money to the scam artist with the claim that the funds will be used for bail money, lawyer’s fees, hospital bills, or other expenses. The victim is urged not to tell anyone, such as the parent of the “grandchild” because they do not want them to find out about the trouble they’ve gotten themselves into. Although Grandparent Scams have not yet made an appearance in the Top Ten list of scams, the fact that fraudsters are targeting older consumers is consistent with other trends the Fraud Center has noticed recently. And many scams rely on money being wired. Consumers should be wary of any offer that requires wiring of money, instead of using a credit card, which protects consumers in the event of a scam.

“Scam artists will stop at nothing to defraud consumers, many of whom are elderly and living on fixed incomes,” said John Breyault, NCL Vice President of Public Policy, Telecommunications and Fraud.

Fake Check scams remain most-reported

Fake check scams—in which fraudsters lure their victims with phony mystery shopper jobs or sweepstake “winnings,” and ask their victims to cash realistic-looking checks and wire a portion of the proceeds back to the scammer before the check bounces—continued to be the most frequently-reported scam to NCL’s Fraud Center, making up 29 percent of all complaints (37 percent of all Internet fraud complaints and 26 percent of telemarketing complaints).

“Fake check scams have been going strong since we first started hearing about them years ago. There are so many variations of the fake check scam, it’s often hard to keep track. But whatever the pitch, they all have one thing in common: there is no legitimate reason for someone to give you money and then ask you  to wire money back,” said Breyault. “If a stranger wants to pay you for something, insist on a cashiers check for the exact amount, preferably from a local bank or a bank that has a branch in your area.”

For more information on NCL’s 2010 Top Ten Scams report, click here.

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About the National Consumers League

Founded in 1899, the National Consumers League is America’s pioneer consumer organization. Its mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. NCL is a private, nonprofit membership organization. For more information, visit www.nclnet.org.