Public interest, live event industry groups announce coalition to fight anti-competitive Ticketmaster-Live Nation merger – National Consumers League

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December 16, 2009

Contact: John Breyault, NCL (202) 207-2819, johnb@nclnet.org or
Shannon Flaherty, National Association of Ticket Brokers, (202) 425-2404, sflaherty@theheraldgroup.com

Washington, DC–Joined by Members of Congress, leading public interest advocates and live event industry representatives today called on the Department of Justice (DOJ) to live up to its antitrust mission and block the proposed Ticketmaster-Live Nation merger. At a press conference on Capitol Hill, the group called on concerned consumers nationwide to go to the coalition’s Web site – www.TicketDisaster.org – and make their voices heard to policymakers in Washington.

Members in attendance at the event included Representative Michael Capuano (D-MA), Representative Joseph Courtney (D-CT), Representative Steve Cohen (D-TN), Representative Bill Pascrell (D-NJ) and Representative Peter Welch (D-VT). Joining the Members in the announcement of the new coalition was the American Antitrust Institute, Consumer Action, Consumer Federation of America, I.M.P. Productions Chairman Seth Hurwitz (representing independent venue owners), the National Association of Ticket Brokers, the National Consumers League and the U.S. Public Interest Research Group (USPIRG).

Published media reports have indicated that the DOJ is in the final phases of its review of the merger, which the groups called a “disaster in the making for any consumer that wants affordable, convenient access to live events.”

“It continues to be my view that this merger represents the greatest and most urgent threat to music fans across this country, and, if approved, will have far reaching and long lasting negative consequences for concert goers and nearly everyone involved in the live music business.,” said Pascrell, a member of the House Ways and Means Committee who led 50 Congress members to oppose the pending merger in July with a letter to the U.S. Department of Justice. “This is little doubt that the result of this merger will be higher ticket prices and fees for fans, and chilling effects on consumers, business managers, artists, music fans, and promoters, in every state throughout this country. The American people agree: the Department of Justice must swiftly and resoundingly reject this hostile takeover of the concert industry. No concessions from Ticketmaster and Live Nation will cure this merger’s inherent anti competitive nature.”

“This is a textbook horizontal and vertical monopoly that is being proposed here,” said Representative Courtney. “Either we have competition in this country or we don’t,” stated Representative Capuano. Added Representative Welch, “Why should [consumers] be the source of overreaching profit by the monopoly power?”

“This merger is a dead-end for consumers,” said National Consumers League Executive Director Sally Greenberg. “For too long consumers have had to bear the burden of ever-higher ticket prices and add-on fees while Ticketmaster and Live Nation have been left to gobble up the competition. The time is now for the DOJ to step in and say ‘enough is enough.’”

“We do not see any possible divestitures that will create an alternative competitor comparable to what Live Nation is in practice and can be potentially,” said Albert Foer, President of the American Antitrust Institute. “The systemic risk that will be created by this merger is not that it is too big to fail, but that it is too likely to succeed. It is time for the Justice Department to just say NO!”

Tom Patania, immediate past president of the National Association of Ticket Brokers and a constituent in Rep. Pascrell’s district, said “Ticketmaster’s game plan is if you can’t beat ‘em, buy ‘em out, and we can’t turn a blind eye to it. In just the last few years Ticketmaster’s been on a buying spree, spending more than $400 million to acquire their competitors. The question for DOJ is who can compete against that?”

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About the American Antitrust Institute

The American Antitrust Institute is an independent non-profit education, research and advocacy organization. Since its formation in 1998, the AAI’s mission has been to increase the role of competition, assure that competition works in the interests of consumers, and challenge abuses of concentrated economic power in the American and world economy. To learn more about the AAI, please visit www.antitrustinstitute.org.

About Consumer Action

Consumer Action, founded in 1971, is a national non-profit consumer education organization headquartered in San Francisco with offices in Los Angeles and Washington, DC.  For more information, please visit www.consumer-action.org.

About the Consumer Federation of America

The Consumer Federation of America is a non-profit association of more than 280 groups that, since 1968, has sought to advance the consumer interest through advocacy and education.  For more information, please visit www.consumerfed.org.

About the National Association of Ticket Brokers

The National Association of Ticket Brokers, formed in 1994, is the non-profit trade association dedicated to protecting consumers and the secondary ticket market.  For more information on NATB and consumer protection efforts, please visit www.NATB.org.

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.

About the U.S. Public Interest Research Group

U.S. PIRG, the federation of state Public Interest Research Groups, is a non-profit, non-partisan public interest advocacy organization.  For more information, please visit www.uspirg.org.

NCL asks FDA to crack down on ‘fresh’ and ‘vine ripened’ labeling abuses – National Consumers League

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December 11, 2009

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

Washington, DC–Today, the National Consumers League (NCL) sent a letter to the Food and Drug Administration (FDA) urging renewal of its efforts to prevent consumers from being misled by deceptive labeling of processed fruit and vegetable products.

Nineteen years ago, NCL persuaded the FDA to take a firm stand on prohibiting the use of the term “fresh” on any fruit or vegetable product that is reconstituted or remanufactured from concentrate. At that time, NCL asked that the use of the term “made from concentrate” or “reconstituted” be placed prominently on the front label of these products. FDA issued policy guidance designed to prevent the continued labeling misrepresentation of these products and took action against Ragu “Fresh Italian” Pasta Sauce and Citrus Hill “Fresh Choice” Orange Juice.

Since that time, according to Sally Greenberg, Executive Director of NCL, “the marketplace has become littered once again with false and misleading labels for products, for example, tomato products that are reconstituted from industrial tomato concentrate, pretending to be ‘made from fresh tomatoes,’ ‘packed in season,’ or ‘packed from vine ripened tomatoes’.”

“The FDA guidance is unlawfully being ignored in the marketplace as evidenced by a proliferation of misleading claims by clever marketers,” added Greenberg. “Consumers are paying ‘fresh’ and ‘vine ripened’ prices for ‘from concentrate’ products.” The following are some examples of these misleading claims:

  • Hunt’s Tomato Sauce: “Packed full of premium, vine-ripened tomatoes.” This claim is reinforced with label vignettes of whole, vine-ripened tomatoes. In fact, the Hunt’s product is remanufactured from tomato concentrate. Hunt’s has substituted “vine-ripened” for “fresh” in its label claim to avoid FDA’s guidance.
  • Del Monte Cocktail Sauce: claims “made from California Vine-ripened tomatoes,” with a picture displayed under the claim. It is made from concentrate.
  • “Contadina picks the Freshest Tomatoes” is claimed on labels of Contadina Pizza Sauce, made from tomato concentrate and tap water.

In the letter to FDA, NCL asked that it issue a new guidance to industry setting forth the FDA’s enforcement policy regarding appropriate use of labeling claims that express or imply that a tomato product was packed or made from fresh tomatoes, and to enforce that policy rigorously. NCL also asked that all fruit and vegetable products reconstituted or remanufactured from concentrate be required to disclose this prominently on the label’s front panel. Greenberg stated, “Such a declaration would provide information that consumers need and want to make informed purchase decisions and would close out the clever word play.”

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‘Flu Facts for Expectant Moms’ gives straight talk on the H1N1 vaccine – National Consumers League

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December 8, 2009

Consumer advocate and Ob/Gyn team up to address questions and concerns

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

Washington, DC–Citing the special vulnerability of pregnant women to the H1N1 virus and persistent confusion over the risks, benefits, and availability of vaccines, a leading consumer advocate and a board-certified Obstetrician/Gynecologist have teamed up to get expectant moms quality information through a new digital Q&A called “Flu facts for expectant moms.”

“Our message to expectant moms is: Do what is best for you and your baby and get vaccinated as soon as possible,” said Sally Greenberg, executive director of the National Consumers League, a nonprofit advocacy group with strong expertise in medication information. “Perhaps more than any other group, pregnant women are desperate for practical and trustworthy information on how to protect themselves and their babies from what can be a devastating illness in high-risk populations.”

Recent reports show that up to 30 percent of pregnant women who are infected with the H1N1 flu virus require hospitalization, and of the H1N1-related deaths reported in the United States, 6 percent of them – a disproportionately high percentage – were pregnant women.

Annelise Swigert, M.D., a practicing Ob/Gyn and Fellow of the American College of Obstetricians and Gynecologists, answers questions posed by Greenberg in the digital Q&A’s, available at NCL’s Web site, www.nclnet.org. “Pregnant women are already highly concerned about their health, and when you introduce something as potentially frightening as a widespread flu outbreak—coupled with a limited supply of vaccine—it is easy to understand the heightened anxiety,” Swigert said. “In this situation, facts can often be the best prescription, and the fact is both expectant moms and new moms are doing the right thing by getting vaccinated.”

In the Q&A, Greenberg and Swigert tackle the issue of vaccine supply. Vaccine makers have produced the H1N1 vaccine in about half the time typically required for the seasonal flu vaccine and without using adjuvants, additives commonly used in Europe but not yet approved in the US to increase the vaccine supply. “Health officials believe enough H1N1 vaccine will be available by the end of the year to vaccinate all those who wish to receive it,” said Swigert. “For the most part, pregnant women and members of other high-risk groups have been able to get vaccinated, but those who haven’t yet shouldn’t hesitate to use their status to help them get priority.”

On the vexing challenge of getting vaccinated when supplies are limited, Swigert recommended that pregnant women start by contacting their Ob/Gyn. “Many obstetrical clinics have the vaccine available for their patients,” she said. “Your clinic can also help you find other resources for the vaccine if they don’t have it.” Pregnant women should also get the regular flu vaccine.

The Q&A will be distributed nationally to consumer groups, women’s and health organizations, and the news media. It is available directly to consumers on NCL’s Web site at nclnet.org.

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NCL ED testifies before Congress on ‘wild west’ prepaid calling card industry – National Consumers League

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December 3, 2009

Testimony of Sally Greenberg, Executive Director of the National Consumers League before the United States House of Representatives Subcommittee on Commerce, Trade, and Consumer Protection of the Committee on Energy and Commerce Hearing on Calling Card Consumer Protection Act (H.R. 3993)

Read the full testimony (.pdf)

Good morning, Mr. Chairman. My name is Sally Greenberg and I am Executive Director of the National Consumers League. I appreciate this opportunity to appear before the House Committee on Energy and Commerce to again discuss the need for greater consumer protections in the purchase and use of prepaid calling cards. When we last appeared before this committee to discuss the issue, we equated the prepaid calling card marketplace with the “Wild West,” where unwary consumers too often fall victim to unscrupulous sellers and merchants. A little over one year later, we are sad to say that the situation for consumer remains more “Gunsmoke” than “Little House on the Prairie.”

The National Consumers League, whose founding in 1899 makes us the oldest consumer organization in the United States, has a longstanding interest in protecting consumers from fraudulent practices and is the only consumer group that operates a national fraud center. (NCL’s Fraud Center is described at www.fraud.org).

I want to applaud members of this Committee for the scrutiny and attention you have given to the issue of prepaid calling cards and commend Congressman Engel for introducing H.R. 3993 the “Calling Card Consumer Protection Act.” Consumers rely on members of this committee to defend consumer rights and protections and to look out for consumer interests. In my testimony, I will address some of the facts and figures describing the magnitude of the prepaid calling card industry and the large amounts of money involved. I will also discuss the fraud and deceptive practices associated with that industry and actions taken at the state and federal levels in response to fraud. I’ll discuss why NCL supports H.R. 3993, and I’ll make some policy  recommendations.

Public interest groups call on Justice Department to block Ticketmaster/LiveNation/Comcast merger – National Consumers League

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December 2, 2009

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

Washington, D.C.- Five of the nation’s most prominent public interest groups, including the National Consumers League (NCL), the American Antitrust Institute, the Consumer Federation of America, Consumer Action, and Knowledge Ecology International today called on the Department of Justice (DOJ) to block the proposed merger by entertainment giants Ticketmaster and Live Nation. DOJ is currently reviewing the merger and is expected to make a decision in the next month.

“This merger would be a disaster for consumers. Nothing short of blocking this takeover of the ticket market by two industry behemoths will be acceptable,” said NCL Executive Director Sally Greenberg. “Spinning off a small part of Ticketmaster is no answer. Suggestions that Comcast — a company that is a master of unnecessary and exorbitant charges – entering into the merger negotiations will fix a bad deal are laughable and do nothing to ease the sting of a deal that is anti-competitive and anti-consumer on its face.”

“We all know the saying ‘if you can’t beat ‘em, join ‘em.’ That is exactly what Ticketmaster and Live Nation are attempting to do. Were this merger to be allowed to proceed, it would kill even the modicum of competition that currently exists between the two companies.” said Greenberg. “Time and time again Ticketmaster has shown it won’t accept any competitive players on its turf. By bringing in Comcast, Ticketmaster is simply pulling one more competitor off the field.”

As Bloomberg News recently reported, Comcast Spectacor owns multiple professional teams (including the Philadelphia Flyers and 76ers), controls the facilities where they play and their ticketing businesses. Comcast was also one of the investors in the company that sold the Paciolan ticketing software program to Ticketmaster in 2007.

“The new Department of Justice team is facing their first highly public antitrust test, one that consumers are watching with unusual intensity,” said Albert A. “Bert” Foer, President of the American Antitrust Institute. “The question is whether any conditional approval can benefit consumers as much as just saying ‘No.’ We are dubious that any divestitures will make this merger acceptable or will convince consumers that their interests are being protected.”

Ticketmaster first acquired the Paciolan ticketing software firm in 2007, prompting investigations from the Department of Justice. Prior to being bought out by Ticketmaster, Paciolan serviced a wide variety of ticketing clients, from universities to theaters to zoos, and is now poised to be returned to Comcast if reports of the divestiture requirements are true.

“This merger is an insult to both musicians and consumers,” said James Love, Director of Knowledge Ecology International. “It will lead to higher prices and less interesting music and art. The last thing we need is fewer corporate entities controlling more of our culture.”

“Consumers deserve a fair deal in the entertainment marketplace, not the fewer choices and higher prices that would result from this merger,” said Susan Grant, Director of Consumer Protection at Consumer Federation of America.

The groups went on to say that by including Comcast in the merger negotiations, Ticketmaster is simply transferring its power to a partner renowned for its market domination and exorbitant prices. “These companies are not popular with consumers,” said Linda Sherry, Director, National Priorities for Consumer Action. “Allowing this merger to proceed would make a bad market for consumers much, much worse. We strongly urge DOJ to block the merger without conditions.”

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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.

About the American Antitrust Institute

The American Antitrust Institute is an independent non-profit education, research and advocacy organization. Since its formation in 1998, the AAI’s mission has been to increase the role of competition, assure that competition works in the interests of consumers, and challenge abuses of concentrated economic power in the American and world economy. To learn more about the AAI, please visit www.antitrustinstitute.org.

About Consumer Action

Consumer Action, founded in 1971, is a national non-profit consumer education organization headquartered in San Francisco with offices in Los Angeles and Washington, DC.  For more information, please visit www.consumer-action.org.

About the Consumer Federation of America

The Consumer Federation of America is a non-profit association of more than 280 groups that, since 1968, has sought to advance the consumer interest through advocacy and education.  For more information, please visit www.consumerfed.org.

About Knowledge Ecology International

Knowledge Ecology International is a non-profit public interest organization, supporting work carried out earlier by the Consumer Project on Technology (CPTech), an organization that has participated in a number of merger reviews, including those involving legal publishing, retail distribution, and media concentration and telecommunications regulation. www.keionline.org.

Consumer advice: Don’t let scams ruin your Cyber Monday shopping experience – National Consumers League

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November 24, 2009

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

Washington, D.C.- As Americans return to the workplace next Monday after the long holiday weekend, many will spend a portion of their day surfing the Internet for deals from online retailers. Monday, November 30 is known as “Cyber Monday,” what the retail industry claims to be one of, if not the, busiest Internet shopping days of the year, and with more and more consumers opting to avoid the mall, e-shopping next week is expected to be higher than ever. According to the National Retail Federation, 53.5 percent of workers with Internet access, or 68.8 million people, will shop for holiday gifts from work this holiday season; three-fourths (73.8 percent) of young adults 18-24 with Internet access will shop at work, and men are more likely to shop from work than women (56.3 percent vs. 50.8 percent).

Whether consumers do their shopping online at the workplace or at home, advocates are reminding them to practice safe e-shopping habits in the coming weeks and year-round. “The Internet can make your shopping faster and easier, but there can also be pitfalls if you’re not careful,” said Sally Greenberg, executive director of the National Consumers League, which today released its top ten tips for avoiding cyber grinches and scams this holiday season. “There are ways to ensure you have a safe online shopping experience, so that gift-giving is a joyous occasion, not an opportunity for cyber thieves.”

  1. Don’t shop online on an unencrypted or open wireless network. An airport or coffee shop’s wireless network is not an appropriate place to conduct financial transactions. Entering personal financial information over an unsecured connection may leave your computer open the to hackers and thieves to capture your financial information. Home Wi-Fi networks can also be compromised, so consumers should find out how to secure their connections.
  1. Secure your computer before shopping online. Before connecting to the Internet or shopping online, take the following three core protections: 1) Install anti-virus and anti-spyware programs and keep them up to date; 2) Install a personal firewall; 3) Regularly update operating system and anti-virus programs to current protections.
  1. Know who you’re dealing with. Before shopping online with an unknown e-store, check out the seller and be sure to get the name and physical address of the vendor in case something goes wrong. If you’re buying gifts on an online auction site, check the track record of the seller before you bid.
  1. Pay the safest way – by credit card, especially when you’re purchasing something that will be delivered later. Under federal law you can dispute the charges if you don’t get what you were promised. You may also dispute unauthorized charges on your credit card. Many card issues have “zero liability” policies under which you pay nothing if someone steals your credit card number and uses it. Increasingly, debit cards are also offering good protections, so check with your bank to learn more about protections offered.
  1. Only shop on safe sites. When providing payment information, the Web site URL address should change from “http” to “https,” (or, less frequently, “shttp”) indicating that the purchase is encrypted or secured. Look for an icon on the browser (generally in the bottom right of the window), such as an image of a padlock closing, to indicate that the page is secure.
  1. Don’t fall for a phishing email or pop-up. Legitimate companies don’t send unsolicited email messages asking for your password, login name, or your financial information. But scammers do, and it’s called “phishing.” Crooks often send emails that look like they’re from legitimate companies – but direct you to click on a link, where they ask for your personal information. Delete these emails.
  1. Be careful when shopping for a gift in an online auction. Consumers sometimes turn to auctions for harder-to-find collectibles or expensive electronics. Understand how the auction works, and check out the seller’s reputation before you bid. Use safe ways to pay, like a credit card. If you use a 3rd party payment system, read the terms carefully to understand what protection, if any, it offers if you don’t receive what you were promised. Always ask about terms of delivery and return options. Be especially wary of auctions that ask for payment via wire transfer.
  1. Turn your computer off when you’re finished shopping. Many people leave their computers running 24/7, the dream scenario for scammers who want to install malicious software—“malware”—on your machine and then control it remotely to enable them to commit cyber crime. To be extra safe, switch off your computer when you are not using it.
  1. Don’t be tempted by offers of free money. Con artists take advantage of cash-strapped consumers during the holidays to offer personal loans or credit cards for a fee upfront. These scammers simply take the money and run. Beware of emails offering loans or credit, especially if you have credit problems.
  1. Visit www.fraud.org to learn more about protecting yourself from online scams year-round and to report suspicious sites, sellers, or scams. You don’t have to be a victim to report a scam, and your information will help law enforcement go after cyber grinches.

Above all, look into the business or individual with whom you are doing business before making the transaction. For more information on avoiding scams throughout the year, visit www.fraud.org.

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National consumer protection and industry groups issue joint statement on the Ticketmaster/Live Nation merger investigation – National Consumers League

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November 19, 2009

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

WASHINGTON, DC–Consumer and industry groups, including the National Association of Ticket Brokers, the National Consumers League, the Consumer Federation of America, Consumer Action, and Knowledge Ecology International today released the following joint statement on the ongoing Ticketmaster/Live Nation merger as the Department of Justice (DOJ) moves into final phase of consideration. There have been press reports of potential settlements of the Justice Department investigation, and further reports that Comcast Corporation has met with DOJ officials regarding their participation in the proposed merger.

“There seems to be little dispute after extensive Congressional hearings that the merger of Ticketmaster and Live Nation raises very profound competitive concerns. That is why fifty Members of Congress – an unprecedented number – have written to the DOJ with concerns about the merger. The Department of Justice has a unique opportunity to protect consumers by preventing this anticompetitive merger and preserving competition and choice in the marketplace.”

“Ticketmaster is well aware that their plans will give them unchecked power to take advantage of consumers who will have no other ticket options. Suggested proposals for a modest spin-off or some other type of remedy are insufficient to protect consumers. Bringing more corporate interests to the table appears to be their last ditch attempt to pretend there are no competitive problems and fool the public – and the authorities – into believing they won’t have full control over tickets, venues, artists, and prices. But that’s clearly not the case.”

The groups noted that the merger proposed by Ticketmaster would be a “disaster” for consumers. The ticketing giant would gain full access to competitive information in the market and unprecedented control over each aspect of the industry from artist management to concert promotion, including ticket distribution and concession stands. This will make transparency and accountability impossible. It will also prevent competitors from entering the market, thereby reducing options for fans and creating a monopoly on the industry.

“Any proposed concessions to DOJ, including transferring some assets to other corporations with relationships to Ticketmaster are non-starters. They will not protect consumers from the looming threat of monopolistic control. Ticketmaster may also propose to agree to some type of limits on their behavior post merger, but for a firm that exploits consumers on a daily basis, those promises are simply not credible. The DOJ has every right, and responsibility, to block this merger and protect what remains of an open, competitive, and consumer-friendly market.”

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About the National Association of Ticket Brokers

The National Association of Ticket Brokers, formed in 1994, is the non-profit trade association dedicated to protecting consumers and the secondary ticket market. For more information on NATB and consumer protection efforts, please visit www.NATB.org.

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.

About the Consumer Federation of America

The Consumer Federation of America is a non-profit association of more than 280 groups that, since 1968, has sought to advance the consumer interest through advocacy and education.  For more information, please visit www.consumerfed.org.

About Consumer Action

Consumer Action, founded in 1971, is a national non-profit consumer education organization headquartered in San Francisco with offices in Los Angeles and Washington, DC.  For more information, please visit www.consumer-action.org.

About Knowledge Ecology International

Knowledge Ecology International is a non-profit public interest organization, supporting work carried out earlier by the Consumer Project on Technology (CPTech), an organization that has participated in a number of merger reviews, including those involving legal publishing, retail distribution, and media concentration and telecommunications regulation. www.keionline.org.

Consumer watchdog to FDA: Mislabeled food products a bad ‘Choice’ for consumers – National Consumers League

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November 19, 2009

New Cranberry Skins Product Falsely Posing as Sweetened Dried Cranberries

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

Washington, DC–Today the National Consumers League (NCL) called on the U.S. Food and Drug Administration (FDA) to investigate misleading labeling involving a new food product, Ocean Spray’s “Choice.” According to NCL, the nation’s oldest consumer advocacy organization, the product is sold to food manufacturers as a “sweetened dried cranberry” but contains more sugar than actual fruit and is made from cranberry skins – not whole cranberries.

“Sweetened dried cranberries (SDCs) have become the common or usual name for a popular ingredient in a variety of foods, capitalizing on the healthy image of cranberries and cranberry juice,” wrote Sally Greenberg, NCL Executive Director, in a letter to the FDA. The consumer group is concerned that, because this product is being sold as a “sweetened dried cranberry” for manufacturers’ use in breakfast cereals, cereal bars, baked goods, and trail mixes, it has the potential to result in the mislabeling of these food products.

NCL’s request that FDA investigate Ocean Spray’s Choice product is the latest in the organization’s longtime work in food safety, nutrition, and truth-in-labeling advocacy. After NCL called on the FDA to investigate claims made by Cheerios®-maker General Mills last fall, this spring the federal agency issued a cease-and-desist letter to the cereal manufacturer because the health claims exceed those permitted for food products. In August, NCL sued General Mills in the Superior Court of the District of Columbia for continuing to claim that eating Cheerios® would reduce total and “bad” cholesterol.

The mislabeling of sugar-heavy products such as dried fruit, according to NCL, is of particular interest to consumers who may seek the nutrition benefits of sweetened dried cranberries without realizing they’re eating—and paying for—something that is actually quite different.

SDCs are the fastest-growing segment of the cranberry market and traditionally consist of dried cranberries that have been infused with sugar and coated with a small amount of sunflower oil. Ocean Spray Cranberries Ingredient Technology Group recently introduced the “Choice” product to food manufacturers as a less expensive alternative to SDCs on the market. Foods currently on the market that NCL believes contain Ocean Spray Choice SDC are Ann’s House Good Health Energy (a blend of soy nuts, cranberries, almonds and pumpkin kernels); Nature Valley Fruit Bars; and Pepperidge Farm Chewy Granola Cookies.

Laboratory analyses by Krueger Food Laboratories, commissioned by NCL, on November 4, 2009, found that “Choice” is really little more than cranberry skin infused with sugar syrup, consisting primarily of inverted beet sugar and citric acid. These characteristics are inconsistent with products using whole cranberries. The cranberry content is so small that Ocean Spray must add color in the form of elderberry juice concentrate and acidity in the form of citric acid to simulate the color and acidity of cranberries. These findings are consistent with Ocean Spray’s own claims that it uses 50 percent fewer cranberries to make “Choice” than the regular SDC product. Ocean Spray’s marketing materials tout “Choice” as a low-cost SDC with the same taste, texture, appearance, and health benefits as other SDCs.

“Because of its minimal cranberry content and use of other ingredients to simulate the flavor and color of cranberries, Ocean Spray’s Choice product should not be named ‘sweetened dried cranberries,” said Greenberg. “We question whether the word ‘cranberries’ should be allowed at all in the name of this product.”

In addition, NCL said that the product label’s ingredients declaration, which lists cranberries as the predominant ingredient, is misleading and inaccurate.” Greenberg stated that “according to our lab analyses, this is false and should be corrected to list sugar as the predominant ingredient.” All food labels are required to list ingredients in descending order of predominance by weight.

To read NCL’s letter to the FDA or to learn more about NCL’s work in food safety and nutrition, visit www.nclnet.org/food.

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National Consumers League applauds House passage of HR 3200 – National Consumers League

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November 12, 2009

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

Washington, DC-The National Consumers League, the nation’s oldest consumer group, applauds the United States House of Representatives’ historic passage of the health reform bill, HR 3200. Since the 1930s NCL has supported universal health care for all Americans. This legislation is a milestone toward that goal.

“We recognize substantively reforming our health care system is no easy task, and we support lawmakers’ efforts to unite stakeholders and work towards a higher quality system that is more patient-centered and cost-effective,” said Sally Greenberg, NCL Executive Director. “We look forward to the final law, which should ensure that effective and efficient care of the highest quality is accessible by all Americans.”

Key provisions of The Affordable Health Care for America Act include:

  • prohibiting insurance companies from denying coverage based on pre-existing medical conditions, imposing annual or lifetime benefit limits, or cancelling a policy when someone files expensive claims.
  • creating an “exchange” in each state where individuals and eligible small businesses could shop for insurance policies.
  • offering of a public insurance plan to compete with private companies.
  • expanding coverage to several million uninsured, including those who may not be able to obtain coverage through their employer or who may not have previously qualified for government programs.
  • expanding eligibility for Medicaid to individuals and families with incomes up to 150 percent of the poverty level.
  • reducing payments under the Medicare Advantage program, and enhancing the Medicare prescription drug program by phasing out a coverage gap.

For decades, NCL has been dedicated to achieving quality improvements to America’s health care system. In the 1930s, NCL’s Josephine Roche authored the first universal health care proposal and today, NCL is at the forefront of advocating for comprehensive health reform with legislation that is patient-centered and cost-efficient. NCL recently issued a statement calling the lack of comprehensive health care coverage “America’s albatross,” making 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.”

“We need to address why we are overpaying for care that is not making us healthier. Health reform will move us towards greater accountability, efficiency, accessibility, transparency, and quality,” said Greenberg. “It is essential that everyone have access to affordable health care or the system will remain broken.”

For more information about NCL’s work in health, visit www.nclnet.org/health.

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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 applauds Sen. Dodd’s introduction of finance reform bill – National Consumers League

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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.