Statement of support from the National Consumers League on House passage of the DTV Delay Act – National Consumers League

February 4, 2009

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

Washington, DC – The National Consumers League (NCL) today has issued the following statement regarding the passage in the U.S. House of Representatives of S. 352, “The DTV Delay Act.” This statement is attributable to Sally Greenberg, Executive Director of the National Consumers League:

“The decision by the U.S. House of Representatives to approve a four-month delay in the shutdown of analog TV signals is a victory for the estimated 6.5 million U.S. households that remain unprepared for the DTV transition. Consumers in these unprepared households are disproportionately elderly, low-income, rural, and minority. The delay will allow time for governmental, private, and non-profit educational efforts to have greater effect and for more converter box coupons to be sent to consumers currently on the National Telecommunications and Information Administration’s waiting list. The delay will also help avoid the nightmare scenario of consumers, particularly older ones, climbing their roofs in February to adjust TV antennas due to the transition. We urge President Obama to sign the bill to law as soon as possible.”

While this legislation moves the official transition deadline to June 12, it does not prohibit broadcasters from turning off their analog signals before that date. NCL calls on broadcasters to honor the new deadline extension and maintain their analog signals until then to allow more consumers to prepare for the transition.

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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.

Consumer groups call on Congress to support Employee Free Choice Act and help rebuild the middle class – National Consumers League

December 19, 2008

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

Washington, DC, December 19, 2008 — A coalition of seven consumer groups today announced their support for the Employee Free Choice Act (EFCA), expected to be reintroduced in 111thCongress, to “strengthen consumer protections, stop predatory lending practices, provide remedies, and ensure that workers’ hard earned wages go to supporting their families and communities.”

In a letter to members of Congress, the groups — the National Consumers League (www.nclnet.org), the National Association of Consumer Advocates (www.naca.org), Public Citizen  (www.citizen.org), Consumer Action (www.consumer-action.org), ACORN (www.acorn.org), Consumers for Auto Safety and Reliability (www.carconsumers.com), and the Alliance for Justice (www.afj.org) — argued that the EFCA (H.R. 800, S. 1041 in the 110th Congress) legislation that passed the U.S. House of Representatives in 2007 but failed to pass in the Senate, and is broadly supported by labor unions, is good for both consumers and workers.

“Corporate greed, mass foreclosures, insurmountable consumer debt, unemployment rates, and the other symptoms of our economic crisis have made for a culture of insecurity for both consumers and workers,” said Sally Greenberg, Executive Director of National Consumers League, a consumer group formed in 1899 to advance the interests of both consumers and workers. “As consumer organizations, we believe that it is essential to make connections between consumers and workers, especially in this economic downturn. It is in the interest of consumers to rebuild the middle class in America, and the Employee Free Choice Act is a good start. It is time for Congress to address the needs of the hardworking Americans on Main Street, not just the corporate interests on Wall Street.”

In their letter to Congress, the consumer groups argued that EFCA will help restore fairness to workers by giving them a path to union organizing, helping secure contracts in reasonable timeframes, and toughening penalties of companies who violate worker rights.

Excerpts from the letter follow:

The Employee Free Choice Act will restore the right of workers to join together to get better health care, job security, and benefits – and an opportunity to pursue their dreams. We firmly believe the Employee Free Choice Act is good for consumers, for workers, and for American society. When workers – who are also consumers – enjoy the benefits of a unionized workforce, their standard of living rises and they can participate more fully in what our economic system has to offer.

The current crisis in our financial markets shows what happens when corporate greed is allowed to go unchecked – and consumers and workers unfortunately pay the price.  The Employee Free Choice Act will help level the playing field for America’s workers by giving them a fair and direct path to form unions. Consumer groups ask for your support for this important legislation.

The Employee Free Choice Act will help restore fairness and the American dream by:

(1) Giving workers a fair and direct path to form unions through majority sign-up. EFCA would require an employer to recognize its employees’ union when a majority has signed union authorization cards.  Under current law, management can refuse to recognize a union even when 100 percent of employees have signed authorization cards.  After a majority of workers have signed cards, an employer can still call for a separate election.  Under the current system, then, the employer gets to decide whether a separate election is necessary.

(2) Helping employees secure a contract with their employer in a reasonable period of time. Under current law, anti-union employers often drag workers through lengthy negotiations by delaying bargaining sessions, withholding relevant information, and putting forth bogus proposals.  Even though these tactics are illegal, there are no effective deterrents to prevent “surface bargaining.” The Employee Free Choice Act will strengthen workers’ ability to achieve a first contract within a reasonable period of time.

(3) Toughening penalties against employers who violate their workers’ rights. Too many unscrupulous employers get away with breaking labor laws because the current penalties are too weak.  The Employee Free Choice Act would increase penalties against employers who illegally fire or retaliate against pro-union workers.

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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.

Consumer/health groups call for change in regulation of alcohol labeling – National Consumers League

December 12, 2008

Letter to Treasury Secretary-Designate Timothy Geithner urges swift action to mandate standardized, comprehensive alcohol labels

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

Washington, DC; December 12, 2008 — Even as the Obama Administration sets its sights on stabilizing and strengthening the U.S. economy, a coalition of public interest groups today called on the transition team and incoming Treasury Secretary Timothy Geithner to move quickly on another matter where action by the Treasury Department is needed and long overdue: requiring mandatory, basic serving facts disclosing alcohol content per serving and the definition of moderate, or low-risk alcohol consumption on all alcoholic beverage labels.

In a letter to Secretary-Designate Geithner, four leading public interest groups — Center for Science in the Public Interest, Consumer Federation of America, National Consumers League and Shape Up America! — used the fifth anniversary of an unanswered petition originally sent to the Alcohol and Tobacco Tax and Trade Bureau (TTB) on December 16, 2003 to press for “meaningful change” in how the Treasury Department regulates alcohol labeling. Summarizing a record of more than 30 years of inaction by TTB and its predecessor agency, the Bureau of Alcohol, Tobacco and Firearms (BATF), the organizations reported overwhelming public support for a standardized “Alcohol Facts” panel on all beer, wine and distilled spirits products listing such basic information as the serving size, calories per serving, alcohol content per serving, and the definition of a “standard drink.” Additionally, the petition sought the inclusion of the Dietary Guidelines’ definition of moderate, or low-risk, alcohol consumption on product labels. Today, alcoholic beverages are the only major category of consumable products not required to carry label information summarizing these basic characteristics of the product.

“Right now, consumers really have no way of knowing the most basic information about alcoholic beverages,” said Chris Waldrop, Director of the Food Policy Institute at the Consumer Federation of America. “It’s time to end the confusion by giving Americans the same helpful and easily accessible labeling information that is now required for conventional foods, dietary supplements, and nonprescription drugs.”

George Hacker, Director of CSPI’s Alcohol Policies Project, called on TTB, which regulates alcohol labeling, to develop labels that will be helpful to consumers in measuring and moderating their alcohol consumption. “The Food and Drug Administration, which has administered the development of comprehensive nutrition labeling on foods and non-alcoholic beverages, has substantial expertise in constructing and designing labels that consumers will understand and use. TTB should consult with FDA and rely on its experience in generating effective consumer labels.”

Documenting the public health need for TTB action, the letter summarizes the consensus among nutrition, medical and substance abuse experts that ready access to labeling information is an important tool for reducing alcohol abuse, drunk driving, and the many diseases attributable to excessive alcohol intake. This includes the facts needed to follow the Dietary Guidelines’ advice that men who choose to drink limit their consumption to two drinks a day and that women restrict their consumption to one drink per day. As stated in the Dietary Guidelines for Americans 2005, the consumption of alcoholic beverages may have beneficial effects for some consumers when consumed in moderation, but alcohol is a significant source of calories and can increase the risk for hypertension, liver disease and certain cancers, as well as injury if consumed in excess.

“There is no debate within the public health and nutrition community about the need for mandatory and complete alcohol labeling,” said Dr. Barbara J. Moore, President and CEO of Shape Up America! “Today’s labeling requirements for alcoholic beverages are outdated and they don’t demonstrate the national leadership that is critically needed to address the growing epidemic of obesity.”

Due to the current lack of leadership, the organizations point to one of the consequences of not requiring consistent and comprehensive alcohol labeling: most Americans have no idea what constitutes a “standard drink,” which the Dietary Guidelines defines as 12 fluid ounces of regular beer, 5 fluid ounces of wine and 1.5 fluid ounces of 80-proof (40 percent) distilled spirits. According to a recent survey commissioned by the National Consumers League, 54 percent of Americans don’t know there is such a thing as a “standard drink,” even though a large majority of state drivers’ license manuals and national and state public health agencies use the “standard drink” definition to explain responsible drinking.

“It shouldn’t take a calculator for consumers to tell how many ‘standard drinks’ are in a particular product or to determine how much alcohol they are actually consuming,” said Sally Greenberg, Executive Director of the National Consumers League. “On behalf of the nation’s public health and nutrition organizations, consumer advocates, leading public health officials and consumers themselves, we say it is time for the government to issue a useful final regulation requiring alcohol labeling.”

While continuing to press for a useful final regulation on alcohol labeling, the four public interest organizations are taking steps to fill the void by providing consumers with information about alcohol content and what constitutes moderate drinking. Especially during the holidays, Americans should have these facts:

  • When it comes to drinking alcohol, the old adage is true: It doesn’t matter what you drink, it’s really how much that counts. Don’t kid yourself into thinking beer or wine is “safer” or less “potent” than the “hard stuff.”
  • One of the most important tips about responsible drinking is to know how much you are drinking. So, remember, 12 ounces of regular beer has the same amount of alcohol as five ounces of wine and an ounce and a half of distilled spirits.
  • Alcohol affects women differently than men. Besides producing less of the enzyme responsible for breaking down alcohol, women generally have a lower percentage of natural body water than men, which means alcohol levels are more concentrated and women are likely to feel the effects (including the onset of alcohol-related diseases) sooner. In light of these differences, the Dietary Guidelines recommends that women consume less alcohol — up to one standard drink a day while men are advised to limit their consumption to two alcohol drinks a day
  • Sometimes the wisest decision is not to drink. This is the case if you are younger than the minimum legal drinking age, pregnant, driving or operating machinery, or simply cannot control your drinking.
    In many cases, alcohol and medications don’t mix. Always read the label to determine if the prescription medicine or over-the-counter drug carries a specific warning about consuming alcohol. If you are hosting a party, don’t over-serve alcohol and keep an eye out for anyone who may have had too much to drink and is planning to drive home. If necessary, take their keys and call a taxi. Have plenty of non-alcoholic beverage choices available.
  • The obvious tip that everybody knows but sometimes forgets: before you go out, plan how you are going to get home. Designate a driver, have a taxi number, and have money ready to pay the taxi. Whatever you do, don’t drink and drive and plan on staying sober.Whether you are a parent, family member or a friend, don’t serve to or buy alcohol for people under 21.
    Increasing public understanding of these basic health messages also requires ending the stalemate in modernizing beverage alcohol labels, which traces back to 1972, when consumer organizations first asked the federal government to require meaningful alcohol labeling. In 2003, the National Consumers League joined with the Center for Science in the Public Interest, Consumer Federation of America and 75 other public health and consumer organizations to submit a formal petition to TTB. This resulted in the agency issuing an “advanced notice of proposed rulemaking” in April 2005 and receiving more than 18,000 comments, of which 96 percent supported giving consumers access to standardized and complete labeling information on beer, wine and distilled spirits labels.

TTB’s most recent action occurred in 2007 when the agency proposed a mandatory “Serving Facts” panel on beer, wine and distilled spirits but notably ignored the most important information consumers need when consuming an alcoholic beverage – alcohol content disclosure and the amount of alcohol in a serving. This resulted in another barrage of letters from consumers and public health leaders, all calling for more complete information on the label. Since the close of the public comment period in February 2008, TTB has not moved forward with issuing final regulations.

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About the Center for Science in the Public Interest

Since 1971, the Center for Science in the Public Interest has been a strong advocate for nutrition and health, food safety, alcohol policy, and sound science. Founded by executive director Michael Jacobson, Ph.D. and two other scientists, CSPI has long sought to educate the public, advocate government policies that are consistent with scientific evidence on health and environmental issues, and counter industry’s powerful influence on public opinion and public policies.

About the Consumer Federation of America

Consumer Federation of America is a non-profit association of some 300 organizations, with a combined membership of over 50 million Americans. Since its founding in 1968, CFA has worked to advance the interest of American consumers through research, education and advocacy.  CFA’s Food Policy Institute was created in 1999 and engages in research, education and advocacy on food and agricultural policy, agricultural biotechnology, food safety and nutrition.

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.

About Shape Up America!

Shape Up America! was founded in 1994 by former U.S. Surgeon General C. Everett Koop to raise awareness of the health effects of obesity and to provide responsible information on weight management to the public and to health care professionals. The organization maintains an award winning website – www.shapeup.org – accessed by more than 100,000 visitors each month and an “opt-in” e-newsletter with more than 24,000 subscribers.

Economic security, health and safety of nation: National groups call for adoption of pro-consumer policies – National Consumers League

December 11, 2008

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

Washington, DC- Leaders of seven of the country’s leading public-interest groups are calling for the adoption of six major pro-consumer priorities, including the reinstatement of the White House Special Advisor on Consumer Affairs. As the economic crisis deepens, it is more important than ever for government leaders to deal quickly and effectively with pocketbook issues affecting every American consumer. The groups have developed an agenda of the top issues on which consumers should hold policymakers accountable in the coming Congress and new administration. The agenda was sent to President-Elect Obama and Congressional leaders (cover letter enclosed).

Leaders of the seven groups – Consumer Federation of America, Consumers Union, National Association of Consumer Advocates, National Consumer Law Center, National Consumers League, Public Citizen, and the U.S. Public Interest Research Group, representing millions of American consumers – have united behind this agenda in response to increasing risks to consumer rights and protections.

Some recent threats to consumer rights, protections and standards of living include: the financial crisis and mortgage meltdown, high and volatile oil prices, growing concerns over the safety of imports and food, and the rising cost of health care.

As a result of anti-consumer policies in these areas, the coalition has developed a six-point agenda to highlight some of the most critical issues facing the American public today. The leaders noted that Congressional passage of comprehensive Consumer Product Safety Commission reform this summer was a positive step, suggesting that Congress may be ready to consider other important consumer reforms.

As the events of recent months have shown, weak consumer protections don’t just harm individual Americans, but the economy overall. Inadequate laws and poor oversight of credit and financial services have led to a huge loss of wealth for many American families and helped trigger an economic recession. This agenda is not simply a way to protect consumers, but to increase the economic and health security of the country. The agenda is a key starting point for raising questions of policymakers about how they intend to protect the public interest, said the leaders of the seven organizations.

The consumer leaders are intent on continuing to build an influential consumer movement that will be a powerful force for change. The six-point agenda includes (summary followed by detailed explanations):

  1. Restore the United States Office of Consumer Affairs; Put a Consumer “Czar” In The White House.
  1. Rein in Wall Street Excesses, Protect Consumers from Abusive and Predatory Lending.
  1. Protect Consumers from Price-Gouging in Oil, Gas and Electricity Markets, and Take Steps To Provide Households With Access to Alternative Energy and Efficiency.
  1. Improve Consumer Access to Justice By Reinstating Legal Rights.
  1. Guarantee Safe, High Quality, Affordable Healthcare for Everyone.
  1. Ensure our Food and Products are Safe.

An Agenda to Close Growing Gaps in Marketplace Protections

1.Restore the United States Office of Consumer Affairs; Put a Consumer “Czar” In The White House

During this economic crisis, one extremely significant step the new Administration could immediately take would be to restore an Office of Consumer Affairs in the White House. Such an office, run by a prominent advisor to the president, would clearly demonstrate the critical nature consumer protection issues play in restoring and maintaining a sound economy. As inadequate consumer protection has permeated so many of the crises the nation faces and the work of so many different federal agencies, having a strong, centralized consumer voice in the White House is all the more critical.

The United States Office of Consumer Affairs (USOCA) was established by Executive Order by President Nixon. Under pressure from Congress, the Clinton Administration allowed the office to be closed. The office should be reinstated as it existed under the Carter Administration, the time when it was most effective.

Under the Carter Administration, the director of the Office of Consumer Affairs had regular and direct access to the President. The office gave a voice to consumers and balanced and supplemented the ever-present and extremely well funded business lobby and Department of Commerce. The office was instrumental in victories for consumers, including: energy-efficiency labels on products; a program that simplified English in government documents; consumer rights regarding overbooked airline flights; a cooperative bank that would offer low-interest loans to public-interest groups; and increased competition in the trucking industry. The precursor to the Office of Consumer Affairs, the Special Assistant to the President for Consumer Affairs, helped pass truth-in-packaging legislation during the Johnson Administration. The Special Assistant also worked on bills concerning truth-in-lending and helping those who have overextended credit. A similarly strong consumer presence at the highest levels over the last few years might have prevented the current credit crisis.

The Office of Consumer Affairs should be reinstated as a well-funded office with a clear mandate to influence legislation, write executive orders, intervene as a full party in adjudicatory proceedings, have input at policy meetings, etc. Ideally, the post should be filled with someone with known credentials in the consumer world, and consumer advocacy organizations should be consulted before the director is chosen. Most importantly, the director of the USOCA should have direct and frequent access to the President.

2. Rein in Wall Street Excesses, Protect Consumers from Abusive and Predatory Lending.

The global economy has been brought to the brink of disaster, and taxpayers have been forced to bear the trillion-dollar cost of a financial market bailout, as a direct result of Wall Street’s reckless misconduct and lawmakers’ and regulators’ failure to rein in industry excesses. This has led to a huge loss wealth for many American families and triggered an economic recession. The sharp decline in housing prices nationwide caused by predatory and unsound mortgage lending is a major cause of the now global credit crisis. Banks, auto lenders, credit card issuers, student lenders and payday loan companies also targeted low and middle-income families with unaffordable and high-cost credit.  As a result, home foreclosures, credit card delinquencies and personal bankruptcies now devastate millions of Americans each year. The explosive growth of predatory lending has occurred because consumer protections have been reduced in the last 20 years and new reforms have not been added to rein in harmful practices. Where states have attempted to prohibit abusive credit practices, federal policy makers have sought to override state protections. Meanwhile Congress and federal regulators have acted much too slowly to enact laws or regulations that curb these harmful loans. Lenders have fought reform, arguing that it is more important to preserve a 19th century “buyer beware” free market than to protect American families from becoming buried in debt they cannot afford. While new housing legislation takes modest steps to restore faith in the market, it does little to help consumers already in foreclosure nor to prevent continued abusive practices.

Early warnings about the systemic risks posed by unregulated credit derivatives, inadequate capital standards at financial institutions, including Fannie Mae and Freddie Mac, unreliable credit ratings, compensation practices that promote excessive risk-taking, and lack of transparency resulting from use of Structured Investment Vehicles and other off-balance sheet transactions went unheeded by federal regulators and Congress alike. Wall Street was able to fend off stronger investor protections by arguing that increased regulation would stifle innovation, burden industry, and drive business to less regulated markets overseas. As a result, investors have seen their investment portfolios decimated, traditional Wall Street institutions have either failed or stand on the brink of failure, and the global economy has sunk into recession.

Actions for Congress and the new administration: 1) develop a comprehensive financial restructuring plan that puts Main Street Before Wall Street, cures the flaws in the emergency legislation and prevents future catastrophes; 2) enact legislation that effectively prohibits abusive terms in mortgages and other loans, curbs lending without regard to ability to pay and provides effective relief to homeowners still caught in the foreclosure crisis (emergency provisions on foreclosure were grossly inadequate); 3) provide broad protections for credit card customers, including prohibiting unwarranted fees, retroactive interest rate increases, and payment allocation abuses; 4) protect consumers from predatory small loans such as payday loans, rent-to-own, auto title lending and refund anticipation loans, 5) restore bankruptcy as the final safety net for consumers caught by unaffordable mortgage, credit card debts and student loans, 6) restore the ability of states and individuals to enforce laws against predatory lending, and (7) adopt investor protection legislation and regulations that increase transparency and accountability of financial market participants, strengthen risk management practices, minimize conflicts of interest, and provide for strengthened regulatory oversight.

3) Protect Consumers from Price-Gouging in Oil, Gas and Electricity Markets, and Take Steps To Provide Households With Access to Alternative Energy and Efficiency.

Consumers and the American economy have been hit hard by sharply rising energy prices, especially for gasoline. Despite declining gasoline consumption, high inventory levels and increased production of ethanol, gasoline prices shot past $4 a gallon nationwide earlier this year. Natural gas, electricity and heating oil prices have also escalated. Electricity markets, particularly in states that deregulated and are now subject to oversight by the Federal Energy Regulatory Commission, have experienced sharp price increases. Although energy prices have declined recently, high prices through much of the last few years have forced moderate and lower income Americans to make painful choices to cutback spending on other necessities that are also increasing in price, such as food, healthcare and medicine. While energy prices are, for the time being, dropping, the nation cannot afford to be lulled into complacency. Future price hikes can be expected, home energy costs remain unaffordable for many families, especially those hit by the weak economy, and our nation’s continued dependence on fossil fuels threatens the economy, national security and the environment.

A major factor in rising gasoline prices has been the decline in gasoline refining capacity, brought on by mergers in the refining market and by deliberate decisions by oil company refiners to keep capacity tight. This has allowed a few very large companies to gain control of refining supply. The lack of effective regulation of financial and commodity markets has also led to the creation of a speculative energy “bubble” for energy commodities. Over the past two years, the cost of speculative trading has been over $40 a barrel of oil, or about $1 per gallon of gasoline.  The run up in gasoline prices led to excessive oil industry profits of over $200 billion above the normal level since 2002. Meanwhile, Congress has only recently acted to improve the dismally low fuel economy of passenger vehicles in the United States.

Actions for Congress and the new administration: 1) The government must give greater scrutiny to oil and refining company mergers, require greater competition and encourage the development of alternative fuels and energy sources that are environmentally safe and do not affect food prices. This would lead to lower prices, encourage smarter development of natural resources, and help make the U.S. more energy independent. 2) Congress and the Administration must ensure that the speculative bubble in energy and food commodities does not recur by closing loopholes created by the Commodity Futures Modernization Act and by poor oversight of the Commodity Futures Trading Commission. 3) The Administration must appoint a FERC chairperson who will ensure that all electric rates are “just and reasonable.” 4) President Obama must also ensure that the National Highway Transportation Administration set the highest possible fuel economy standards under recently enacted legislation, which requires that passenger vehicles achieve well in excess of 35 mpg by 2020, and increase funding for mass transit. 5) Finally, Congress and the Administration should continue to increase financial assistance to lower income families who cannot afford increased energy prices or who are hit by the weak economy, and provide meaningful assistance to help households afford alternatives to high energy prices such as rebates to purchase super fuel-efficient hybrid cars, incentives to make energy efficient improvements to homes and solar panel installation, financed in part by eliminating subsidies to the oil industry.

4. Improve Consumer Access to Justice By Reinstating Legal Rights.

Consumer legal rights have been under assault for years. While Congress has refused to grant private rights of action in any new federal consumer laws and has even inserted provisions attacking the authority of state attorneys general in new federal laws, powerful special interests have been busy taking away available state law legal remedies by inserting mandatory arbitration clauses in all consumer contracts. Meanwhile, federal regulatory agencies have asserted over-broad authority to preempt state enforcement and consumer common law rights and the Supreme Court, most recently in Riegel v. Medtronic, has upheld them.

Actions for Congress and the new administration: 1) Enact legislation to restore an unbiased and open justice system that remedies harms and holds wrongdoers accountable; 2) ensure a consumer’s right to choose alternative dispute resolution, judicial review, or a jury by barring pre-dispute mandatory binding arbitration clauses from consumer contracts; 3) ensure the viability and enforceability of federal consumer protection laws by updating outdated liability provisions, preserving access to counsel through fee-shifting statutes, and permitting enforcement by state attorneys general; 4) preserve state health, safety, and consumer protection laws by halting federal preemption; and 5) ensure that systemic wrongs are righted by providing for class actions when pervasive and expansive misconduct occurs.

5. Guarantee Safe, High Quality, Affordable Healthcare for Everyone.

The U.S. has by far the most expensive health care system in the world, spending 50% more per person than the next closest country, Switzerland. As health care costs continue to rise, families are paying a larger and larger share. Many people are one illness away from bankruptcy. Nearly 1.3 million full-time workers lost their health insurance in 2006. At the same time, insurance companies are spending billions to deny care while drug companies are spending billions on TV ads for drugs that most of us may not need.

We need common sense reforms that redirect our nation’s health care dollars into better care and give people real choice, including the choice to stay with their current doctor. Insurance companies must compete to give us the best quality care, rather than profiting by denying care, cherry-picking the healthy patients, and excluding people with “pre-existing conditions.” Doctors, hospitals and patients should be free to focus on treating and preventing illness, without the piles of paperwork and endless hours spent decipheringcodes and bills. Real choices must be grounded in real information about doctors, hospitals and health plans–not misleading information created by advertising agencies.

Actions for Congress and the new administration: Ensure that healthcare is affordable for all consumers by adopting cost-saving innovations in preventative care, pay for performance, chronic disease management, evidence-based medicine, and increased primary care by all payers: private and public.  Create private and public insurance pool options that allow consumers to share risk and use greater bargaining power to get a fair price for insurance and guarantee consumers cannot be denied coverage or face skyrocketing premiums when you change jobs, get sick, or have a pre-existing condition. Make sure everyone can take their kids to a doctor, and is protected from losing life savings due to illness. Give people the tools they need to choose a health plan, hospital, doctor or treatment that is right for them. Ensure that treatments and medicines people take are high-quality, safe and affordable. Medicare should have the power to negotiate lower drug prices like the Veterans Administration. We need stronger FDA enforcement on the safety of drugs, including more inspections of manufacturing facilities and a moratorium on the advertising of newly introduced drugs until we learn more about possible side-effects. We need to adopt information technology that protects privacy while providing consumers, doctors and pharmacists with important medical information. And we need broad public reporting about hospital-acquired infections.

6. Ensure our Food and Products are Safe.

Consumers’ beliefs that our food and product safety systems are working have been shattered by the many recent recalls involving tainted meat and produce, and even children’s toys. Lax oversight, agency cutbacks, and surging imports have resulted in an unprecedented number of recalls involving everything from Salmonella-laced peppers, E-coli in spinach, and pet food and dairy products adulterated with melamine, to children’s jewelry made of lead. In fiscal year 2007, there were 473 recalls involving over 25 million products, many involving children’s toys and cribs. In the first three quarters of this fiscal year, the CPSC has already announced more than 415 recalls.

We should require FDA to inspect all food production facilities on a routine basis, both domestic and foreign, and increase inspections at the border. Providing both USDA and FDA with comprehensive mandatory recall authority will also enable the agencies to remove contaminated meats and other foods produce more quickly than simply relying on the voluntary cooperation of companies. In order to act quickly and knowledgeably when unsafe food threatens us, FDA also needs to establish a comprehensive traceability system for unsafe and high-risk foods. The USDA and the FDA should also allow the public to know immediately the names of stores that receive recalled foods so that consumers have a way of protecting themselves when a contamination outbreak occurs. With food safety spread across 15 federal agencies and departments now, federal food safety activities should be combined into a single food agency governed by a modernized food safety law.  Congress should be commended for enactment of the CPSC Reform Act of 2008, a comprehensive pro-consumer reform that reinvigorates and reauthorizes a long-neglected agency. Similar actions should be taken for the NHTSA and FDA.

Actions for Congress and the new administration: Support comprehensive food safety reform. Adequately fund federal food safety activities by both FDA and USDA. Increase and enhance inspections of domestic and imported foods and products before they enter our shores and stores. Support and enhance activities for FDA and USDA to ensure that food producers are producing food in a safe and sanitary manner. Give the FDA and USDA mandatory recall authority to promptly remove tainted foods, meats and produce from our shelves. Appoint strong consumer advocates to the restored CPSC, ensure that it obtains its new, higher authorized appropriations, and carefully oversee CPSC’s implementation of the new law.

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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.

Choose gift cards wisely this holiday season – National Consumers League

December 1, 2008

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

Washington, DC- Although gift cards have grown in popularity and simplified holiday gift-giving stress for many consumers, not all gift cards are the same, warns the National Consumers League. This month, NCL is offering advice for reading the fine print and choosing the best gift cards in its “2008 Consumer Calendar Tips: Do We Have Tips for You!”

The nation’s oldest consumer advocacy organization, NCL works to educate people about how to make wise decisions in today’s marketplace. Each month, NCL’s Web site, www.nclnet.org, will feature the calendar and tips for the month. Covering a range of subjects from medication safety, to avoiding scams, the tips are sponsored by major companies, government agencies, and organizations. The December tips about keeping out unwanted guests were sponsored by the Office of the Comptroller of the Currency. This month’s tips offer advice and information about gift cards and includes a tear-out wallet card for easy access to OCC’s Customer Assistance Group. NCL recently issued a “Gift Card Holder’s Bill of Rights,” calling on banks and retailers to make their policies and cards more consumer-friendly by lowering fees and reducing restrictions.

The print version of the calendar was distributed to consumers free of charge through agencies and organizations around the country. There are no printed copies of the calendar remaining.

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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.

Groups issue ‘Gift Card Holder’s Bill of Rights’ for holiday season – National Consumers League

November 18, 2008

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

Washington, DC—The National Consumers League (NCL), the nation’s oldest consumer advocacy organization, today called on issuers of gift cards—banks, credit card companies, and retailers—to go easy on consumers this holiday season by lightening up on fees and expiration dates on gift cards. NCL is asking gift card issuers to adhere to a “Gift Card Holder’s Bill of Rights,” setting out what advocates believe would be fairer terms and fees than those currently associated with the cards.

NCL, joined by Consumer Action and the Montgomery County (Maryland) Office of Consumer Protection, is urging companies that issue gift cards—an industry that has mushroomed into a $97 billion annual business—to adopt more pro-consumer business practices.

“With the worst economic times in a generation looming and many Americans facing job loss, decreased wages, and increases in the cost of health care, groceries, and other goods, this holiday gift-buying season may be a source of dread, not joy, for consumers watching their budgets,” said Sally Greenberg, NCL Executive Director. “The companies who profit from the rise in popularity of gift cards owe it to consumers to reduce their fees and expiration dates, improve the value of their cards, and compete for consumers’ business.”

“Gift cards make great gifts, because they allow the recipient to get something they really need or want, but all too often they are rife with ‘gotcha’ fees and other anti-consumer traps,” said Linda Sherry, Consumer Action’s Director of National Priorities. “We urge gift card issuers to do the right thing and make sure their products have fair terms with no deceptive loopholes that erode their value.”

“While stores in Maryland are prohibited from selling gift cards with expiration dates and fees during the first four years, that is not the law in all states,” said Montgomery County Office of Consumer Protection Director Eric Friedman. “In addition, banks continue to market cards with terms and conditions that are not favorable to consumers. We urge the marketplace to adopt this Bill of Rights for all gift card holders.”

Gift cards, which come in two categories— traditional retail gift cards, or “closed-loop” cards, and those issued by banks and credit card companies, or “open-loop” cards—have become increasingly popular gifts in recent years. During 2007’s holiday shopping season, nearly 70 percent (68.9%) of consumers reported receiving a gift card. Gift cards sales in 2007 totaled $97 billion and are projected to top $100 billion in 2008.

In 2006, the value of unused gift cards reached $8 billion. Depending on unclaimed property laws that vary by state, unused gift card funds eventually revert to either the state or issuing company. The Gift Card Holder’s Bill of Rights recommends, however, that gift card funds that go unused due to loss, theft, or failure to redeem should go into state coffers and be used to benefit consumers, rather than back into the pockets of the card issuers.

The flexibility of gift cards has clear appeal to consumers, but terms and conditions may be turning many potential buyers away. According to the National Retail Federation, nearly one in ten consumers (9.8%) say they are discouraged from buying gift cards because they are worried about fees and expiration dates.

“Through a dizzying array of extra costs that include maintenance fees, inactivity fees, dormancy fees, and card-replacement fees, as well as unreasonable expiration dates, and high point-of-sale fees, card issuers are pocketing more of the consumers’ money than we think is appropriate or fair,” said Greenberg. “To address this problem, we ask the companies that issue gift cards to consider the guidelines set forth in our Gift Card Holder’s Bill of Rights. We think customers will greatly appreciate having a few more dollars in their pocket, especially during this very rough economic time. ”

Gift Card Holder’s Bill of Rights

For more detailed explanations of each “Amendment,” or for consumer information about choosing and using gift cards wisely, visit www.nclnet.org/giftcards.

  1. Gift cards should not have expiration dates.
  1. The value of gift cards should not be reduced by arbitrary fees that diminish a card’s value.
  1. Fees assessed on a card purchase should not exceed five dollars or ten percent of the value of the card, whichever is less.
  1. Card replacement fees should not exceed two dollars or ten percent of the purchase price of the card, whichever is less.
  1. Cards with a balance of five dollars or less should be redeemable for cash with no fee.
  1. Balance inquiries should not deduct from the value of the card.
  1. Terms and conditions should be clearly disclosed.
  1. Unused funds should not go into the card issuers’ pockets, but should accrue to a state fund to be used for the specific benefit of consumers.
  1. Funds from the sale of gift cards should be segregated and held in trust accounts so as to be automatically honored in the event of the cards issuer’s bankruptcy.
  1. These rights should cover any electronic gift card with a banked dollar value.

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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 Consumer Action

Consumer Action (www.consumer-action.org), founded in 1971, is a national non-profit consumer education and advocacy organization headquartered in San Francisco, with offices in Los Angeles and Washington, DC.

About the Montgomery County (Maryland) Office of Consumer Protection

The Montgomery County (Maryland) Office of Consumer Protection (OCP) investigates thousands of complaints each year involving automotive sales and repairs, new home purchases, home improvements, credit and financial issues, retail sales, internet services and most other consumer transactions. Consumers can check our latest Gift Card Reports at: https://www.montgomerycountymd.gov/consumer

Keep out unwanted guests – National Consumers League

November 1, 2008

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

Washington, DC- Computers have revolutionized the ways we learn, work, shop, pay bills, and communicate with others. But like our homes, our computers contain sensitive and valuable information, so consumers must be careful who they “let in,” warns the National Consumers League. This month, NCL is offering advice for keeping your computer’s security strong and up-to-date in its “2008 Consumer Calendar Tips: Do We Have Tips for You!”

The nation’s oldest consumer advocacy organization, NCL works to educate people about how to make wise decisions in today’s marketplace. Each month, NCL’s Web site, www.nclnet.org, will feature the calendar and tips for the month. Covering a range of subjects from medication safety, to avoiding scams, the tips are sponsored by major companies, government agencies, and organizations. The November tips about keeping out unwanted guests were sponsored by AOL. This month’s tips offer advice and information about security tools including firewalls, anti-virus and anti-spyware software, and patches.

The print version of the calendar was distributed to consumers free of charge through agencies and organizations around the country. There are no printed copies of the calendar remaining.

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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.

Keep out e-ghosts and goblins this National Cyber Security Month – National Consumers League

October 29, 2008

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 computer-based scams threatening their bank accounts and other sensitive personal information. 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. This month, NCL’s Fraud Center is focusing its efforts on how consumers can protect themselves from the evolving tactics that are used for online phishing scams. Phishing is when ID thieves trick people into providing their social security numbers, financial account numbers, PIN numbers, mothers’ maiden names, and other personal information.

“Consumers should be able to use their computers for fun, entertainment, banking, and other personal business with confidence,” 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 scammers 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 new tips for consumers this month to protect them from the e-ghosts and goblins that may be out to get them:

  • Don’t click on links within emails that ask for your personal information.
  • Never enter your 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.
  • Only use secured browsers when entering personal information. 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.

For more information about avoiding email and Web-based scams, visit www.fraud.org.

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About the National Consumers League

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

Seniors, don’t be an easy target – National Consumers League

October 1, 2008

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

Washington, DC- Con artists use many tricks to gain the trust of their victims, and many of them are experts at what they do, warns the National Consumers League. Many have perfected their pitch to successfully target seniors, a vulnerable group of consumers, many of whom may live on fixed incomes or have more free time to consider alluring pitches. This month, NCL is offering older consumers (and their loved ones) advice on how to weed through a fraudulent offer and avoid being duped in its “2008 Consumer Calendar Tips: Do We Have Tips for You!”

The nation’s oldest consumer advocacy organization, NCL works to educate people about how to make wise decisions in today’s marketplace. Each month, NCL’s Web site, www.nclnet.org, will feature the calendar and tips for the month. Covering a range of subjects from medication safety, to avoiding scams, the tips are sponsored by major companies, government agencies, and organizations. The October tips about scams against seniors were sponsored by the Direct Selling Association. This month’s tips feature four common scams that target seniors:

  • Bogus Sweepstakes and Lotteries
  • Phony Charities
  • Pyramid Schemes
  • Home Improvement Fraud

The print version of the calendar was distributed to consumers free of charge through agencies and organizations around the country. There are no printed copies of the calendar remaining.

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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.

New survey reveals consumers wary of prescription switches – National Consumers League

October 1, 2008

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

WASHINGTON, DC — According to a new survey released by the National Consumers League

(NCL) today, nearly three-quarters of prescription drug users would be very concerned if a drug they were prescribed was switched to another drug designed to treat the same condition without their doctor’s knowledge. Even with their doctor’s knowledge, one in five surveyed are concerned about the practice, known as therapeutic substitution, the dispensing of an alternative to a prescribed medication that is not chemically or generically equivalent but is in the same therapeutic class and is used to treat the same condition.

“Consumers are justifiably concerned about the practice of therapeutic substitution, how it’s done, and who’s involved,” said Sally Greenberg, National Consumers League (NCL) Executive Director. “For some conditions and treatments, it may make good financial or medical sense to swap out one prescription for another. But, as consumers reported in our survey, it’s essential for them to be a part of this process, to know their doctor is aware and supportive of the switch, and to feel confident that their health and treatment – not financial incentives – are top priority.”

In an era of skyrocketing health care costs, insurance companies may turn to the practice of substituting similar (but chemically different), less-expensive drugs, from the same class.

Advocates are concerned primarily about the practice when it occurs without the patient’s knowledge, or without discussion and consent of their physician. However, opinions fall on either side of the debate, with physician groups expressing concern over patient safety, and pharmacist groups being more supportive of the practice as a cost-savings measure and a way to optimize patient care.  In some cases, the substitution can be beneficial or inconsequential, but in others – especially in treatment of epilepsy, mental health, and cardiovascular problems – it can be less effective or pose dangers, especially if done without the knowledge of the consumer or prescribing physician.

“Without transparency, therapeutic substitution could introduce efficacy or safety issues, including unknown drug interactions and potentially serious health consequences. It may evoke confusion or fear on the part of patients already feeling frustrated by a failing health care system,” said Greenberg.

The online survey of 1,387 adults aged 18 and older who have filled a prescription in the past year, which was conducted by Harris Interactive® for the NCL between August 25 and September 2 of this year, revealed that most consumers are not aware first-hand of therapeutic substitution, but they have objections and concerns about how and when a prescription drug should be swapped for another.

NCL released the survey today and announced a public education campaign to educate consumers about the practice of therapeutic substitution at its Web site, www.nclnet.org. New resources help explain the practice and empower consumers to ask the questions necessary to feel comfortable and in control of their health care. For an executive summary and full copy of the survey, click here.  The survey also polled a sample of statin users to test the awareness of patients taking medications that might be impacted by therapeutic substitutions.  The views of this group largely mirrored those of the general population.

Survey Highlights

Consumers concerned about therapeutic substitutions that don’t involve doctor

  • Overall, prescription drug (Rx) users would be very concerned if a drug they were taking was switched to another drug in the same class without their doctor’s knowledge or consent.
  • Nearly three-quarters (70 percent) would be very or extremely concerned if their prescription or had been changed without their doctor’s knowledge and consent for a different medication meant to treat the same condition. And 77 percent strongly oppose the practice without the consent of the prescribing doctor or patient.

Consumers’ experiences with therapeutic substitution less than satisfactory

Of those who reported experiencing therapeutic substitution for themselves or a family member, 33 percent say that they (or their family member) did not have their doctor consulted before the substitution occurred, and two-thirds (66 percent) say that they/their family members were not consulted about the switch. Nearly half (47 percent) were dissatisfied (or their family was) with how the process occurred and report that this substitution did not result in lower pocket costs. Only a third (34 percent) felt that the substituted medication was just as effective as the original medication.

Consumers don’t know much about therapeutic substitution, but believe it happens frequently

  • 66 percent of Rx users surveyed have never heard of the practice of therapeutic substitution. 10 percent of Rx users report that they personally experienced therapeutic substitution of their medication in the past two years, and 9 percent said that a family member experienced it.
  • When respondents were given a description of therapeutic substitution (“replacing the prescribed drug with a chemically different drug (not just generic version of the branded prescribed drug)”), the vast majority of Rx users said they believe therapeutic substitution is occurring at least sometimes in the U.S. (84 percent), without informing the patient (68 percent) or the prescribing physician (59 percent).

Consumers are open to therapeutic substitution, but certain factors determine their comfort level

  • Rx users are most likely to consider switching to a different medication if their physician felt that the two were interchangeable (57 percent).
  • A letter from the insurer may not put consumers at ease, but it would evoke communication: only 19 percent of Rx users say they would consider switching to a different medication meant to treat the same disease if their insurance company sent a letter recommending this change, but receiving such a letter would inspire 71 percent of Rx users to have a conversation with their doctor about a less expensive alternative drug.
  • Nearly a third (31 percent) of Rx users say they would consider switching medications if their pharmacist called to discuss an alternative medication.
  • 68 percent of Rx users would oppose insurance companies offering incentives to physicians for switching patients to lower cost alternatives
  • 73 percent of Rx users would oppose insurance companies offering incentives to pharmacists to switch patients to lower cost alternatives

About the Survey

NCL commissioned this survey with an unrestricted educational grant from Pfizer.

This Consumers’ Views on Therapeutic Substitution Survey was conducted online within the United States by Harris Interactive on behalf of the National Consumers League between August 25 and September 2, 2008 among 1035 US prescription drug users aged 18 and older who have filled a prescription in the past year, and an oversample of 352 US statin users aged 18 and older who are currently on a statin medication. No estimates of theoretical sampling error can be calculated; a full methodology is available.

Complete survey results, fact sheets for consumers, and other resources are available at www.nclnet.org.

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

About Harris Interactive®

Harris Interactive is a global leader in custom market research. With a long and rich history in multimodal research, powered by our science and technology, we assist clients in achieving business results. Harris Interactive serves clients globally through our North American, European and Asian offices and a network of independent market research firms. For more information, please visitwww.harrisinteractive.com.