NCL mourns loss of ‘hero and champion’ Senator Ted Kennedy, (1932-2009) – National Consumers League

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August 26, 2009

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

Washington, DC, August 26, 2009—The National Consumers League (NCL), the nation’s pioneer consumer and worker advocacy organization, mourns the death of hero and champion of the worker, Senator Edward Kennedy (D-MA).

Senator Kennedy embodied all that NCL stands for, promoting fair treatment for both consumers and workers. NCL is proud that, in 1973, Sen. Kennedy was the first recipient of the organization’s Trumpeter Award, an annual honor bestowed upon leaders who are not afraid to speak out for social justice and for the rights of consumers. Kennedy was a champion of workers, fighting tirelessly for minimum wage increases for working families and health care for all.

Sen. Kennedy also championed the rights of consumers. In January of this year, he called upon the Obama Administration to reinstate the White House Office of Consumer Affairs, with a statement in the Congressional Record: “With a new administration focused on bringing needed change to the Nation, a new focus on consumer safety should be part of this change.”

Sally Greenberg, Executive Director of the National Consumers League, offered the following statement: “It will be hard to imagine a Congress without Senator Kennedy at the center of the action. He spoke with compassion for the disenfranchised, immigrants, minorities, workers, and consumers. He will be sorely missed.”

The staff, Board of Directors, and membership of the National Consumers League convey their sincere condolences to the Kennedy family.

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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 supports nomination of Sotomayor to the Supreme Court, urges Senators to confirm – National Consumers League

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August 6, 2009

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

WASHINGTON, DC –- The National Consumers League today urged members of the Senate to support the nomination of Judge Sonia Sotomayor to the Supreme Court of the United States. The NCL believes that Judge Sotomayor’s long years of legal experience, including seventeen years on the bench, service as a prosecutor in New York City, and her civic involvement in groups like the Puerto Rican Legal Defense Fund make her unusually qualified to sit on the nation’s highest court.

“In Judge Sotomayor’s nomination, we see someone who we think will be a fair and compassionate Supreme Court justice,” said Sally Greenberg, Executive Director of the National Consumers League. “Judge Sotomayor also represents the American Dream – that education and hard work can mean that even those who grow up with few material advantages can rise to the highest levels of our legal system, the Supreme Court of the United States.”

Since 1899 the League has championed the concerns of both consumers and workers. NCL looked at Judge Sotomayor’s decisions pertaining to labor matters and found that the Judge, having grown up in public housing in the Bronx as the daughter of a factory worker, has consistently interpreted labor laws to protect those who need it most. She has ruled in favor of workers to be free against discrimination in the workplace, to collect their rightful wages and receive their rightful benefits. She has ruled in favor of litigants seeking freedom from persecution in their countries for union activity.

The League also reviewed the small number of Judge Sotomayor’s decisions pertaining to consumer matters and found her reasoning and conclusions to be fair and balanced. She seems to understand the need for strong consumer protections and supports federal agencies and laws that provide those protections. NCL’s brief review of Judge Sotomayor’s consumer decisions can be found at NCL’s Savvy Consumer blog.

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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.

Health reform: Good for consumers, good for America – National Consumers League

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July 31, 2009

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

WASHINGTON, DC –- The lack of comprehensive health care coverage is America’s albatross –it makes our businesses less competitive and our workers less healthy. We need to put partisan concerns aside and work NOW to ensure that the system is reformed. The cost of doing nothing is unthinkable.

American families are paying about $15,000 a year for health care, twice as much as we did twenty years ago, and we pay $6,500 more for health care than any other industrialized country in the world. Yet despite these high costs we have poorer health outcomes.

We need to address why we are overpaying for care that is not making us healthier. Health reform, as proposed in several current bills in Congress, will move us towards greater accountability, efficiency, accessibility, transparency, and quality. It is essential that everyone have access to affordable health care or the system will remain broken.

For consumers, health reform will translate into choice – with a greater number of options available, including keeping and supplementing your own insurance, at more affordable and competitive prices. Reform will also make it easier to compare and understand the true costs and benefits of plans. As consumers and employees, we can make choices what will help push for health insurance and benefits that are competitive, innovative, and cost-contained.

With unemployment nearing 10 percent, many Americans have lost their employer-based coverage. Further, of the nearly 50 million uninsured, close to 80 percent are working Americans. It is imperative that we not leave our most vulnerable citizens out in the cold, which is why health reform will only be effective if everyone is covered.

Experts project that families will pay $10,000 more annually on medical costs by 2016 if we DON’T fix the system Health care coverage for all Americans is a moral imperative that must not be allowed to fall victim to partisan politics.

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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.

Testimonial advertising crossing the line into deception, says NCL – National Consumers League

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July 22, 2009

Stricter rules on consumer and expert endorsements, blogola, and fake news needed, says consumer group

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

WASHINGTON, DC –- Appearing today before a Senate subcommittee, the National Consumers League (NCL) called for stricter rules regarding the use of consumer and expert testimonials in advertising. The consumer group also urged lawmakers and regulators to strongly consider establishing guidelines regarding disclosure by bloggers and others of compensation received in return for product and service reviews online. The League also described as “extremely troubling,” the proliferation of advertising masquerading as real news.

“Now more than ever, consumers need to be assured that products and services advertised to them deliver on what they promise,” said NCL Executive Director Sally Greenberg. “We believe that the overuse of consumer testimonials and expert endorsements has crossed the line from aggressive marketing to outright deception.”

The hearing before the Senate Commerce Committee’s consumer protection subcommittee was prompted by revisions being undertaken at the Federal Trade Commission (FTC) of the agency’s guidelines regarding the use of consumer testimonials and expert endorsements in advertisements. Changes under consideration include requiring advertisers to prominently disclose average results when atypical results are shown, such as in diet pill commercials. Other changes would require that bloggers and other online reviewers disclose when they receive payment or gifts from advertisers in return for a review. NCL also urged regulators and lawmakers to investigate whether the undisclosed use of video news releases by news organizations should fall under the FTC’s testimonial advertising guidelines.

“We find the rampant lack of disclosure by broadcasters that they are being paid to air VNRs extremely troubling,” said Greenberg. “Citizens of a democratic society should have confidence that the media is not passing off advertisements as hard news.”

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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 commends Minnesota attorney general for prosecution of arbitration firm – National Consumers League

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July 16, 2009

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

WASHINGTON, DC –- The National Consumers League (NCL) commends Minnesota Attorney General Lori Swanson for her efforts to prosecute the National Arbitration Forum (NAF), the nation’s largest arbitration company, for consumer fraud, deceptive trade practices, and false advertising.

Consumer groups have argued for years that the while the NAF claims to be a neutral arbitrator of debt collection complaints against consumers and on other consumer complaints, behind the scenes the company aggressively markets itself to credit card companies, mortgage lenders, debt buyers, and cell phone companies and even helps them put mandatory arbitration clauses in consumer contracts.

Businesses know that they will be treated more favorable under arbitration, and so have been eager to participate in it.

But the suit brought by the Attorney General brings up even more serious allegations of bias and favoritism toward businesses. Swanson claims the NAF helps companies fill out claims against consumers, while providing consumers no such assistance. The lawsuit also reveals the intricate corporate ties between NAF and debt collection companies who do business with NAF’s clients. The NAF hides these connections, as they illustrate a clear conflict of interest.

Mandatory arbitration provides legal cover for businesses at the expense of consumers’ right to take action in court when they are harmed. The National Consumers League supports a full ban on mandatory arbitration and applauds the Minnesota Attorney General for her action on the matter.

NCL warns Senate of recession-fueled fraud – National Consumers League

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July 14, 2009

New Fraud Center Statistics Underscore Call for Increased Federal Fraud Fighting

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

WASHINGTON, DC – Appearing today before a Senate subcommittee, the National Consumers League (NCL) said that frauds linked to the bad economy are on the rise and called upon federal fraud cops to “vigorously enforce existing anti-fraud statutes and regulations” and redouble their efforts to educate consumers about the growing threat of recession-fueled fraud.

NCL warned that consumers’ thinly-stretched pocketbooks have “increased their vulnerability to fraudsters offering promises of extra income. The consumer group warned that nearly one in three consumers could be at risk for fraudulent work-at-home schemes and that fake check complaints involving phony sweepstakes and bogus “mystery shopper” jobs continue to increase.

Top Scams, January – June 2009 (read full report)

1. Fake Check Scams
2. Internet: Gen Merchandise
3. Prizes/Sweepstakes/Free Gifts
4. Phishing/Spoofing
5. Nigerian Money Offers (not prizes)
6. Business Opportunities/Franchises/Distributorship
7. Advance Fee Loans, Credit Arrangers
8. Friendship & Sweetheart Swindles
9. Internet: Auctions
10. Lotteries/Lottery Ticket Buying Clubs

“Consumers face a double bind. The economic crisis has made them increasingly vulnerable to fraud while local agencies that investigate scams and enforce the laws are shutting their doors, leaving consumers with fewer avenues to protect their interests,” said Greenberg. “Absent increased action at the federal level to investigate and prosecute scam artists, consumers will be caught between the proverbial rock and a hard place.”

In support of Greenberg’s testimony, NCL’s Fraud Center released its semi-annual ranking of the top telemarketing and Internet scams plaguing consumers so far in 2009, with fake check scams continuing to top the list. For the first six months of 2009, fake check scams made up more than 44 percent of the total complaints NCL received, with more than half of these complaints (55 percent) involving a fraudulent mystery shopper job or phony sweepstakes winnings. Average losses per victim were more than $3,000.

Phony business opportunity scams — which include fake franchises and distributorships – were not among the most commonly reported scams to the Fraud Center in 2008. However, in the first six months of 2009, they have risen into the top ten most-reported scams. Earlier this year, an NCL-commissioned survey found that 31 percent of respondents were more likely to consider starting a home-based business due to the current economic climate. NCL believes that this is a reflection of a weak economy, loss of jobs, and consumers’ eagerness to find viable employment.

“The worsening economy has clearly had an impact on consumers’ vulnerability to fraud.” said John Breyault, NCL Vice President for Public Policy, Telecommunications and Fraud. “Consumers should be wary that scammers are eager to prey on those in greatest financial need.”

NCL’s Fraud Center is unique among consumer organizations. It was created in 1992 to combat the economic menace of telemarketing fraud. In 1996, it expanded its fraud-fighting efforts to include scams in cyberspace. The Fraud Center’s www.fraud.org and www.fakechecks.org. Web sites are a consumer resource with information on the most common telemarketing and Internet scams. Consumers can report suspected fraud there using NCL’s online complaint form. These reports are then transmitted to the appropriate agencies among NCL’s law enforcement and consumer protection partners in the U.S. and Canada. These reports alert authorities to emerging scams and help put them in touch with victims, while providing the necessary ammunition to investigate and shut down fraudulent operations.

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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 calls on Senate to support Consumer Credit Fairness Act – National Consumers League

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June 25, 2009

Nation’s pioneering consumer organization urges lawmakers to protect consumers from usurious interest rates

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

Washington, D.C. — The National Consumers League is pleased to support S.257, the Consumer Credit Fairness Act, which is scheduled to be considered today by the Senate Judiciary Committee. The Act, introduced by Sen. Sheldon Whitehouse (D-RI), would amend title 11of the United States Code “to disallow certain claims resulting from high cost credit debts.”

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

“Consumer protection in light of the current economic downturn is crucial for the stimulation and revitalization of our economy. By modifying the bankruptcy code, this legislation, S.257 — the Consumer Credit Fairness Act — would help provide relief for consumers paying for excessive high-interest loans and who are subsequently overwhelmed by mounting debt. Furthermore, the legislation would create disincentives to debt issuers to offer such predatory loans in the first place. In the interest of protecting consumers from usurious interest rates, we urge the members of the Senate Judiciary Committee to approve this bill.”

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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 supports confirmation of Inez Moore Tenenbaum as CPSC chair – National Consumers League

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June 16, 2009

Nation’s Pioneering Consumer Organization Urges Swift Confirmation to Speed Implementation of Consumer Protection Agenda

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

Washington, D.C.—The National Consumers League (NCL) applauds the hearing by the U.S. Senate Committee on Commerce, Science and Transportation of Inez Moore Tenenbaum, former Superintendent of Schools for South Carolina, as Chairwoman of the Consumer Product Safety Commission (CPSC). Having previously supported President Obama’s nomination, NCL calls for a swift confirmation of Tenenbaum.

The following statement can be attributed to Sally Greenberg, Executive Director of the National Consumers League:

“Elected for two consecutive terms as Superintendent of South Carolina Public Schools and founder of the south Carolina Center for Family Policy — a non-profit organization advocating for reform in the state’s juvenile justice system — Tenenbaum’s experience attests to her commitment to child safety and health.”

“If confirmed, Tenenbaum’s extensive background in public policy will help her in implementing the Consumer Product Safety Improvement Act of 2008. We again welcome Tenenbaum to Washington and look forward to working with her and the Commission to restore its original mandate – protection consumer from hazardous products.”

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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 supports confirmation of Genchowski, McDowell for FCC – National Consumers League

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June 16, 2009

NCL Statement of Support for Senate Confirmation of FCC Chair-Designate Julius Genchowski and Commissioner Robert McDowell

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

Washington, D.C.—The National Consumers League (NCL) applauds the confirmation hearings of the U.S. Senate Commerce Committee on the nominations of Julius Genachowski, as Chairman of and Robert McDowell, as Commissioner of the Federal Communications Commission (FCC). NCL calls on the Committee to swiftly confirm both Genachowski and McDowell.

The following can be attributed to Sally Greenberg, Executive Director of the National Consumers League:

Julius Genachowski has demonstrated a dedication to the growth of innovative telecommunication services through his work both at the FCC under former Chairman Reed Hundt and in the private and non-profit sectors with IAC/InterActiveCorp.and Common Sense Media, among his other activities If confirmed, we look forward to working with him to ensure that consumer interests are well-represented as the FCC moves to implement its large and growing agenda.

In his three years with the FCC, Commissioner McDowell has shown a willingness to engage with the public interest community on a range of issues such as competition policy, spectrum reform, and broadband access. We look forward to continuing to work with the Commissioner, should he be reconfirmed.

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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 calls for investigation of KeyBank – National Consumers League

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June 3, 2009

Citing excessive fees, predatory lending, outsourcing jobs to India and other anti-worker practices by TARP recipient

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

Washington, D.C. — The National Consumers League, in coalition with Consumer Action, National Association of Consumer Advocates and the Consumer Federation of California, have written a letter to the Treasury’s TARP Inspector General, Mr. Neil Barofsky, and to the TARP’s Congressional Oversight Panel, Chaired by Harvard Law Professor Elizabeth Warren, calling for an investigation of KeyBank’s current business practices and implementation of a remedial process for harm done to consumers, workers and their communities.

In the letter, the groups told officials that KeyBank has a history of engaging in predatory student lending and exposing its customers to excessive fees, and that loans to the bank will serve to undermine the Emergency Economic Stabilization Act of 2008.

Since receiving TARP funds, KeyBank’s behavior towards customers persists as a recent complaint makes amply clear. One customer has written: “Opening an account with KeyBank has been a costly mistake. I have paid overcharge fees and drafts due to the bank’s mistakes! They charge fees for everything, and have no empathy for the customer. They should be ashamed of themselves considering the economy today.”

KeyBank stands out among banks, many of whom also charge excessive fees.

“The National Consumers League and our colleagues find the practices of KeyBank toward students, consumers and workers to be totally out of sync with what the government intended when it provided bailout funds.” said Sally Greenberg, Executive Director of the National Consumers League. “We are distressed to learn that KeyBank is receiving taxpayer funded monies and believe that this is wrong.”

In addition to being involved in shady student loans and excessive customer fees, Key Bank has also engaged in anti-worker behavior, such as providing financing for a company engaged in extensive workers rights abuses, and outsourcing many of its information technology jobs to India. This acts against the interests of the very communities these funds are supposed to be helping.

“We implore the Federal authorities to review their decisions to provide funds to KeyBank, and ensure that the bank’s practices are consistent with the public interest,” said Ira Rheingold, Executive Director of the National Association of Consumer Advocates.

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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.