November 10, 2009

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

Washington, D.C.—The National Consumers League (NCL), the nation’s oldest consumer advocacy organization, applauds the introduction of the financial reform bill unveiled today by Senate Banking Committee Chairman Christopher J. Dodd (D-CT), seeking to consolidate federal responsibility for banking oversight, now assigned to four agencies, into a single regulator.

“The disastrous consequences of ineffective regulation of consumer financial products is self-evident in the millions of home foreclosures nationwide, the growing credit card debt load of too many American families, and an out-of-control payday lending industry,” said NCL Executive Director Sally Greenberg. “We applaud Senator Dodd for his leadership in introducing common sense legislation that will help protect millions of American consumers from unsafe financial products and services.”

This summer, NCL signed onto testimony, with nearly two dozen other consumer and civil rights organizations, delivered to the Senate Committee on Banking, Housing and Urban Affairs calling for greater oversight of the consumer financial product market. NCL and other consumer advocates have called for greater oversight of the financial products and services industry for a number of reasons:

• The inability of the current system of financial product regulation has led to staggering losses. Between October and December 2008, families lost $5 trillion in household wealth. An effective regulatory regime could have prevented much of this pain.

• There is an overriding need for a financial regulator that makes its consumer protection mission a priority. The current financial regulatory system places “safety and soundness” supervision – and the attendant bank profitability – ahead of the need to ensure that unsafe financial products are not marketed to consumers.

• Consumers would benefit from a common-sense floor, not a ceiling, for financial product regulation that promotes innovation while ensuring transparency, simplicity, and fairness.

The National Consumers League has been fighting for the rights of consumers and workers since its founding in 1899. The League was instrumental in seeking a safety net for Americans during the Great Depression and in the New Deal years, writing legislation to gain passage of minimum wage laws, unemployment insurance, workers compensation, social security, and health care programs such as Medicare and Medicaid. The League continues to champion the fair treatment and protections for all consumers and workers in today’s marketplace.

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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.

October 22, 2009

Fake check scams, other frauds masquerading as legitimate offers preying on consumers in 2009

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

WASHINGTON, DC — In observance of National Cyber Security Awareness Month in October, the National Consumers League (NCL) is cautioning consumers about the most-commonly reported scams preying on consumers, often disguised as legitimate offers, meant to dupe consumer victims and steal their money. NCL is the nation’s oldest consumer organization, and it collects reports of suspected and confirmed Internet and telemarketing fraud, identifies new scams and trends, and works with law enforcement to catch crooks at NCL’s Fraud Center.

NCL’s Fraud Center Top Ten Overall Scams

(Jan. 1-Sept. 30, 2009)

1. Fake Check Scams

1. Internet: General Merchandise

1. Phony Prizes/Sweepstakes/Free Gifts

1. Phishing/Spoofing

1. Nigerian Money Offers

1. Business Opportunities/Franchises

1. Advance Fee Loans/Credit Arrangers

1. Internet Auctions

1. Friendship/Sweetheart Swindles

1. Lotteries/Lottery Ticket Buying Clubs

NCL tracks the frauds most commonly plaguing consumers, and in the first nine months of 2009, Fake Check Scams continue to top the list. This month, NCL’s Fraud Center is focusing its efforts on how consumers can protect themselves from the evolving tactics that are used for fake check scams, phishing and spoofing scams, pyramid schemes and other business opportunity scams, and other swindles.

“Whether it’s Halloween or any other time of year, consumers expect to be able to use their computers with confidence that they’re not going to be scammed,” said John Breyault, Director of NCL’s Fraud Center and Vice President for Public Policy, Telecommunications and Fraud. “But in order to do so, they must be informed about and protected against the sneak attacks fraudsters use to capture sensitive personal information. During National Cyber Security Awareness Month and year-round, consumers should endeavor to keep better control of their computers and their privacy.”

NCL has issued the Top 10 Scams for the first nine months of the year, as well as new tips for consumers this month to protect them from the e-ghosts and goblins that may be out to get them:

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  Avoid falling for a Fake Check Scam, in which con artists trick consumers into accepting phony checks or money orders and wiring some of the money in return. That there is no legitimate reason why anyone would give you a check or money order and ask you to wire money anywhere in return. No matter the details of the scheme—whether they’re trying to purchase something from you, asking for your help moving money around, or saying you’ve won a foreign lottery—it’s a scam.

• 
  Beware of Phishing Scams. Don’t click on links within emails that ask for your senstive personal information (Social Security Number, physical address, bank or credit card number, or date of birth).  Never enter your sensitive personal information in a pop-up screen.

• 
  Protect your computer with spam filters, anti-virus and anti-spyware software, and a firewall, and keep them up-to-date.

• 
  Use only secured browsers when entering personal information online. Look for a lock symbol to appear at the bottom of the Web page, and for the URL in the browser window to change from “http” to “https” to ensure that the page you’re on is secure.

• 
  Don’t shop online or do online banking while using an unencrypted or open wireless network, like those provided for free at coffee shops or some airport hotspots. Secure your own wireless network at home by encrypting it with a password. This will keep out your neighbors, but more importantly, it will keep out hackers and thieves who look for open/unencrypted wireless network to capture others’ financial information.

• 
  Pay the safest way. When making purchases online, use a credit card instead of a debit card, wire transfer, check, or cash, as credit cards typically have $0 liability policies, which means the cardholder isn’t held liable for fraudulent purchases.

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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.

September 29, 2009

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

Washington, D.C.— Media advocates who work daily to empower individuals and promote diversity and democracy in media will gather at The Riverside Church in New York City on Sept. 30 to examine ethics in telecommunications. The 27th annual Ethics in Telecommunications Lecture and Awards, featuring the Rev. Michael Kinnamon, General Secretary of the National Council of Churches in the U.S.A., brings together media advocates from across the country and honors individuals whose work embodies the principles and values of advocating for the public interest through social communications.

MEDIA ADVISORY

What: The 27th Annual Everett C. Parker Ethics in Telecommunications Lecture and

Awards Reception

When: September 30, 2009, 3:30 PM

Where: The Riverside Church New York City, 490 Riverside Drive, New York, NY 10027

Why: To honor excellence in media ethics and consumer reporting.

This year’s honorees include:

Patti Miller, Vice President of Public Policy, Sesame Workshop, recipient of the Parker Award.  Sesame Workshop is devoted to developing innovative and educational content for television, radio, print, and interactive media that makes a meaningful difference in children’s development.  The award is given in recognition of an individual whose work embodies the principles and values of the public interest in telecommunications.

Sam Simon, Chairman, Amplify Public Affairs; Fellow, Intersections; and Founder and Former President, TRAC, recipient of the Donald H. McGannon Award.  Simon is being honored for his lifetime of media advocacy work on behalf of minority consumers. The McGannon Award is given in recognition of special contributions in advancing the roles of women and persons of color in the media.

Ben Popken and Meghann Marco, Co-Executive Editors of the popular blog “The Consumerist.” This award is given in recognition of efforts to educate and enable consumers to use technology as a toll of empowerment.

The event is free and open to the public, but an RSVP is requested.  Online registration is available here or for more information, contact Jeff Woodar at woodardj@ucc.org.

The Everett C. Parker Ethics in Telecommunications Lecture was created in 1982 to recognize OC, Inc. founder the Rev. Dr. Everett C. Parker and his pioneering work as an advocate for the public’s rights in broadcasting. It is the only lecture in the country to examine telecommunications and the digital age from an ethical perspective. Past speakers include network presidents, Congressional leaders, FCC chairs and commissioners, as well as academics, cable and telephone executives and journalists. It is funded by the communications industry, particularly broadcasters, along with the communication offices of major faith groups. The Parker Lecture is sponsored by the United Church of Christ’s Office of Communication (OC, Inc.) and the Telecommunications Research and Action Center (TRAC), a program of the National Consumers League.

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About the National Consumers League and TRAC

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

The Telecommunications Research & Action Center is a non-profit education and advocacy organization for residential and small business communications consumers. TRAC produces consumer guides, comparison charts, brochures, and online content dedicated to helping consumers navigate the often complex world of communications devices and services. TRAC is based in Washington, DC

September 14, 2009

Newly released DOL list of goods produced by child labor and forced labor may help reduce the number of exploited child and adult laborers

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

Washington, D.C.—The National Consumers League (NCL) today hailed the release of a long-awaited report identifying over 100 goods produced by child or forced labor in more than 50 countries around the world.

“According to the International Labor Organization, extreme poverty compels more than 200 million children to perform child labor around the world. This new list of products tainted by child labor will be an invaluable tool for consumers who want products free from forced and child labor,” said NCL’s Executive Director Sally Greenberg.

“Most Americans and most consumers in the world market would not choose to purchase goods known to be produced by exploited children or forced laborers—at any price,” noted Secretary of Labor Hilda Solis in a foreword to the report, which was produced by DOL’s Bureau of International Affairs Office of Child Labor, Forced Labor, and Human Trafficking.

Of the 122 goods indentified in the report, the majority are in agriculture, an industry in which, globally, seven in 10 working children toil. Many of the most common agricultural products end up in the homes of American consumers, including cotton, sugar, tobacco, coffee, rice, and cocoa.

“Manufactured goods” (including clothing, footwear, and carpets) and “mined or quarried goods”—bricks, coal, gold, and minerals such as coltan used in electronics —follow as the next two leading categories of child labor.

Founded in 1899, NCL, the nation’s oldest consumer advocacy organization, has historically fought to reduce abusive child labor and to increase protections for American workers. For the last 20 years, NCL has coordinated the Child Labor Coalition (CLC), a group of 20-plus organizations committed to reducing exploitative child labor and child trafficking. The CLC and its members are working to decrease child labor in many of the products and countries cited in the report including cotton in Uzbekistan, cocoa in West Africa, rubber in Liberia, and shrimp in South Asia.

Mandated by language in the Trafficking Victims Protection Reauthorization Acts of 2005 and 2008, the report is is charged with examining foreign child labor; however, it briefly notes that the United States is not without child labor problems. DOL’s Wage and Hour Division found 4,734 minors illegally employed in fiscal year 2008. In 40 percent of the child labor violations cited, children were working in hazardous conditions or using equipment deemed too dangerous for minors to use.

“Hundreds of thousand of children are allowed to work in American agriculture on non-family farms at very young ages because of loopholes in U.S. child labor law,” said Reid Maki, NCL’s Director of Social Responsibility and Fair Labor Standards. “Many of these child farm workers are only 12- and 13-years-old, and they work because they are from poor families. We should clean up our own child labor problems if we are going to ask other countries to stop the exploitation of child workers.”

Enhanced enforcement efforts at DOL have begun to address concerns about very young children working in agriculture. Earlier this year, DOL fined five North Carolina blueberry growers for employing minors under the legal age.

“We’re encouraged by expanding enforcement efforts, and this list is a great starting point for consumers, companies, and government officials to devise strategies to reduce child and forced labor in specific products,” said Greenberg. “As the report points out, ‘When problems are known and understood, they can be addressed’.”

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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.

September 9, 2009

National teen consumer initiative kicks off for new academic year with new resources and supporters for biggest year yet

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

Washington, D.C.—The National Consumers League announced the start of the 2009-2010 LifeSmarts season, with a new competition year beginning Sept. 14 at the program’s online home, www.lifesmarts.org, along with a variety of new resources for state coordinators, educators, and youth. LifeSmarts is an educational competition that tests middle school and high school students nationwide on real-life consumer issues through online quizzes and live contests. While the competition formally begins Sept. 14, students and coaches may register online and begin taking practice quizzes and downloading resources today.

“We’re thrilled to be launching the 16^th year of LifeSmarts,” said Program Director Lisa Hertzberg. “This program delivers real-world knowledge to students and then allows them to shine in competitions where they demonstrate all that they have learned,” said Hertzberg. In its first 15 years, LifeSmarts has steadily grown in numbers of student and adult participants, state partnerships, and corporate sponsorships. “Most importantly, the breadth and depth of the program’s content has continued to evolve, too” said Hertzberg. “We’re proud to be preparing our teens and tweens to become the next generation of smart consumers and workers” she added.

Each year, thousands of students answer millions of questions on consumer issues ranging from personal finance and health and safety to the environment, technology, and consumer rights and responsibilities. Starting online each fall, the competition progresses to live state play-offs, and then builds to a high-spirited National Championship, which will be held in 2010 in Miami Beach, FL. At last year’s national competition held in St. Louis, MO, students on the state champion team from Oconto High School in Wisconsin were crowned the 2009 national champs.

NCL partners with coordinators in 30 states, including Better Business Bureaus, credit unions, state attorneys general and consumer protection agencies, State FCCLA organizations, Jump$tart Coalitions, and others, to staff and promote the program. Interested students and adults can visit the LifeSmarts Web site to connect with the program in their state.

“The National Consumers League’s mission is to inspire confidence and safety in the marketplace,” said Sally Greenberg, NCL Executive Director. “The LifeSmarts program, our consumer education initiative for youth, gives students the tools to make smart decisions and feel confident about their place in today’s fast-paced marketplace.”

New this fall at www.lifesmarts.org are dozens of up-to-the-minute teaching resources for coaches, including innovative personal finance lessons made possible by an unrestricted educational grant from Visa. Other major LifeSmarts contributors include Experian, American Century Investments, American Express, Bridgestone/Firestone, McNeil Consumer Healthcare, Monsanto, NextGen Web, Procter & Gamble, Toyota Financial Services, Toys“R”Us, Vreizon, and Western Union.  To see a full list of current LifeSmarts contributors, visit www.lifesmarts.org. To test your LifeSmarts abilities, take a sample quiz at https://start.lifesmarts.org/. From there, click on “Daily Quiz” to get started.

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About the National Consumers League and LifeSmarts

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 is a program of the National Consumers League. State coordinators run the programs on a volunteer basis. For more information, visit: www.lifesmarts.org, email lifesmarts@nclnet.org, or call the National Consumers League’s communications department at 202-835-3323.