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NCL supports updated merger guidelines

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September 20, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – The National Consumers League sent a letter in support of the draft merger guidelines that the U.S. Department of Justice  and the Federal Trade Commission proposed in July of this year. The guidelines reflect an approach to antitrust enforcement that is grounded in statute and judicial precedent and are a significant improvement from the narrower focus of previous enforcement regimes. By centering market competition as the goal of antitrust law, the DOJ and FTC can appropriately act to protect consumers and workers when mergers pose a threat to the public. 

The full letter can be found here.

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About the National Consumers League (NCL)
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 nclnet.org.

National Consumers League urges Ticketmaster to refund Springsteen fans

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September 11, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, D.C. – The National Consumers League (“NCL”) today urged Ticketmaster to immediately offer refunds to fans who purchased tickets to Bruce Springsteen’s postponed concerts. Due to illness, the rock icon recently announced indefinite postponements of the remainder of the concerts currently scheduled for September. According to Ticketmaster’s Purchase Policy, consumers will only be able to obtain refunds when the postponed concerts are rescheduled for a date to be determined.

The following statement is attributable to NCL Chief Executive Officer, Sally Greenberg:

“Like millions of other fans, our best wishes go out to Bruce Springsteen in light of his pressing medical issues, and we wish him a speedy recovery. Throughout his career, he has put his fans first. However, given the announcement that multiple upcoming concerts have been postponed to a date to be determined, we are concerned that consumers are not being given the option by Ticketmaster to obtain refunds for their tickets. Due to Ticketmaster’s policies, millions of dollars in fans’ funds are stuck in limbo, potentially for months or even longer.

We understand that many of Springsteen’s fans may opt to hold onto their tickets and will plan to see The Boss when his concerts are rescheduled. Until then, Ticketmaster will almost certainly be earning interest on fans’ funds that are locked up due to the company’s refund policy. Essentially, due to its policies, Ticketmaster is forcing fans to give the company an interest-free loan for an indeterminate period. It is a bedrock consumer protection principle that when a consumer does not get a product she paid for, a prompt refund should be issued. Ticketmaster should give consumers the option to immediately obtain refunds not just for Bruce Springsteen’s concerts, but for all postponed events going forward.”

 

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About the National Consumers League (NCL)
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 nclnet.org.

NCL urges Senate committee to pass the College for All Act

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August 28, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – Today, the National Consumers League (NCL) urged the U.S. Senate Committee on Finance to favorably report the College for All Act of 2023.

” The National Consumers League1 (NCL) urges the U.S. Senate Committee on Finance to favorably report S.1963, or the College for All Act of 2023, without delay. The College for All Act would transform the nation’s system of higher education by allowing millions of students to pursue college degrees that they otherwise could not afford. Additionally, it would prevent student debt from continuing to burden future attendees of higher learning, a significant issue currently affecting graduates, individuals with partial educational attainment, and parents of students.” 

The full letter can be found here.

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About the National Consumers League (NCL)
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 nclnet.org.

National Consumers League response to the Request for Information regarding FDA regulation of CBD

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August 25, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – On August 17, the National Consumers League responded to the Request for Information regarding FDA-Regulation of CBD.

“In 2019, in response to the proliferation of unreviewed and untested CBD products, NCL identified the need for greater education among consumers about CBD and better enforcement of regulations in the CBD marketplace. NCL created Consumers for Safe CBD to address the need, champion the rights of consumers, and call on government and industry to do better – to ensure safety and promote a pathway for new products through clinically tested scientific research. Since then, action has been taken on the state and federal levels to increase access to cannabinoids beyond CBD. In response, NCL expanded our educational campaign and established Cannabis Consumer Watch.” 

The full letter can be found here.

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About the National Consumers League (NCL)
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 nclnet.org.

National Consumers League Live Event Ticketing Principles

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By John Breyault, Vice President, Public Policy, Telecommunications, and Fraud

The ticketing industry is the gatekeeper to much of our nation’s arts, sports and culture. What should be an exciting moment—securing a seat for your favorite event —has become exceedingly frustrating for many consumers as they navigate a confusing ticket-buying process laden with hidden fees.

NCL works on behalf of fans for all live events to ensure that consumers get the best possible experience, the best bargain for their hard earned dollars and don’t feel they’ve been ripped off with gotcha added costs, like mandatory “convenience fees” “processing fees” “venue fees” or the like when purchasing live event tickets.

Consumers are at the mercy of a rigged ticket marketplace. One company – Live Nation Entertainment (LNE) — dominates the marketplace. The company was created after Ticketmaster and Live Nation were given the green light to merge by the Department of Justice in 2009, despite strong consumer and business opposition.  LNE today controls around 80% of primary ticketing services, owns or has exclusive rights to operate many venues, and has major positions in artist management and event promotion. In 2022, LNE reported $4.5 billion in revenue from ticket resale, more than double what it earned in 2019, making it one of the largest players in the secondary ticket market.

Not surprisingly, LNE engages in practices typical of monopolies, working to drive out competitors. NCL and other consumer groups are leading the charge to unwind the ill-advised 2009 merger of Live Nation and Ticketmaster and restore healthy competition to the marketplace.

NCL believes that ticket resale has a legitimate place in the live event marketplace. The availability of ticket resale services provides a hedge for consumers who buy season tickets or non-refundable tickets, and is also a source for ticket buyers to get bargains when supply outpaces demand, allowing them to save money on below-face value tickets.

Below are some general principles on ticketing that NCL supports.

  1. We want the DOJ and Congress to unwind the Ticketmaster-Live Nation merger.
  2. Hidden ticket fees, deceptive dark patterns, and other anticompetitive ticketing practices should be prohibited. “All in” ticket pricing should be required so that consumers can compare prices from one site to another.
  3. Ticket holdbacks (also known as allocations) should be disclosed to ticket buyers prior to purchase.
  4. Secondary ticket exchanges should be required to disclose the face value of tickets offered for sale on their platforms.
  5. Ticket resellers should be prohibited from engaging in deceptive practices that are deliberately intended to confuse consumers into believing they are buying tickets from the primary seller. Deceptive design practices such as using URLs or other indicia of affiliation with a venue, team, or artist and by paying for search engine optimization that results in resale websites appearing higher in search results than the official box offices should be prohibited.
  6. Secondary ticket exchanges should be required to closely monitor their ticket inventory to ensure that they are not listing tickets obtained in violation of federal or state laws.
  7. All stakeholders in the live event industry should be required to assist enforcement agency’s efforts to stop illegal automated ticket buying and resale.
  8. Federal or state law enforcement agencies should investigate how tickets appear on the secondary ticket market at prices far above face value before offered for sale by primary ticket sellers and whether such sales violate applicable laws.

To these ends, NCL has endorsed legislative reforms to protect ticket buyers and promote competition in the live event industry, such as the BOSS and SWIFT Act and the TICKET Act.

National Consumers League mourns death of Jon Cuneo

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July 27, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – The National Consumers League’s Board of Directors and Staff is deeply saddened by the untimely death of anti-trust lawyer and consumer advocate Jonathan Cuneo. Jon practiced with the firm of Cuneo Gilbert & LaDuca, LLP in Washington DC with copartners Pamela Gilbert, herself a consumer advocate who currently serves on NCL’s Board of Directors, and Charles LaDuca.

“Jon’s reputation as a top notch litigator and consumer, worker and anti-trust lawyer was second to none. NCL counted Jon Cuneo as a close friend, supporter and ally in the fight for a better world for workers and consumers,” said Sally Greenberg and Joan Bray, NCL’s CEO and NCL Board Chair Joan Bray.

Jon served as Washington counsel in the first case to challenge the “Joe Camel” cigarette advertising campaign targeting young people to take up smoking, he took on Prudential Insurance Company for abusing policyholders through deceptive sales practices, and won a landmark case establishing the principle that “labels matter” under California’s Unfair Competition and False Advertising laws and is now a landmark of American law.

On the privacy front, Jon led the ligation against Metromail for privacy violations surrounding supermarket questionnaires. After a woman in Ohio received a sexually suggestive letter from a maximum security inmate in Texas, it came to light that the company had subcontracted for Texas prisoners to “key” the questionnaire information. The firm was able to secure injunctive relief, and a cash pool of $15 million was made available to victims.

“Jon’s extraordinary legal career includes many more cases than we can recount here. He was also a kind and generous colleague, father and husband. He and his wife also held legendary annual holiday party, an invitation to which was much coveted in Washington. Our sincere condolences go out to his family, law firm partners and the many people whose lives were touched by Jon Cuneo,” said Greenberg and Bray.

 

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About the National Consumers League (NCL)
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 nclnet.org.

Consumer groups’ statement on elimination of speculative ticketing disclosure requirements from S. 1303, the “TICKET Act”

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July 27, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – The United States Senate Committee on Commerce, Science, & Transportation today approved an amended version of the Transparency in Charges for Key Events Ticketing Act (“TICKET Act”). Unfortunately, an amendment to the bill that was approved during the markup eliminated a key provision that consumer groups supported which would have required ticket sellers to disclose clearly and conspicuously, prior to a consumer selecting a ticket for purchase, when a seller does not have possession of a ticket being listed for sale. The eliminated provision would have addressed a controversial practice known as “speculative ticketing,” that has harmed too many consumers who thought they had purchased a ticket only to later find out that the seller was unable to fulfill their order. [1] In a July 25 letter to the Commerce Committee, eleven consumer advocacy organizations had urged support for the original version of the TICKET Act, which was introduced with bipartisan support in April.

In response to today’s vote, the undersigned consumer groups released the following statement:

“The live event ticketing market is a rigged game, riddled with deception and a lack of transparency at every turn. We are extremely disappointed that the Commerce Committee today bowed to pressure from industry opponents and missed an opportunity to reduce the risk that fans end up high and dry without tickets to events they had otherwise planned to attend. The TICKET Act, as amended, is a step in the right direction but a reminder of why vested interests continue to resist comprehensive reform. The live event ticketing system needs to be cured of deep flaws that result in consumers being abused before tickets go on sale, while they are for sale, and through the moment they are scanned for entry. The TICKET Act as introduced would have assured transparency to two of the most opaque parts of ticket buying: the pricing of tickets, and the sale of  tickets that sellers do not possess, but are offered to unknowing customers. We continue to support all-in pricing of live event tickets because today’s deceptive drip pricing is unfortunately the norm whether the tickets come from a venue, a team, Ticketmaster, or a resale marketplace. Our groups will continue to work for a fairer ticket marketplace to ensure that fans are able to access affordable tickets to their favorite events in an open, transparent, and competitive marketplace.”

Organizations supporting this statement include National Consumers League, Consumer Action, Consumer Federation of America, Consumer Federation of California, Fan Freedom Project, National Association of Consumer Advocates, Protect Ticket Rights, Public Knowledge, Sports Fans Coalition, and U.S. Public Interest Research Project, and Virginia Citizens Consumer Council.

[1] Burchill, Caitlin. “Burlington man learns his expensive Taylor Swift tickets don’t exist days before concert,” NBC Connecticut. (June 13, 2023) Online: https://www.nbcconnecticut.com/investigations/nbc-ct-responds/burlington-man-learns-his-expensive-taylor-swift-tickets-dont-exist-days-before-concert/3048419/; Oberle, Marisa. “PROBLEM SOLVERS: Potential ‘controversial’ practice leaves Kent Co. family without Taylor Swift tickets,” FOX 17-West Michigan. (June 21, 2023) Online: https://www.fox17online.com/news/problem-solvers/problem-solvers-controversial-practice-leaves-kent-co-family-without-taylor-swift-tickets-day-before-concert

 

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About the National Consumers League (NCL)
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 nclnet.org.

Consumer groups urge support for S. 1303, the “TICKET Act”

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July 26, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – NCL and other consumer groups submitted the below letter to Chair Cantwell and Ranking Member Cruz to urge support for S. 1303, the “TICKET Act”.

 

July 25, 2023

 

The Honorable Maria Cantwell Chair

Committee on Commerce, Science, & Transportation

United States Senate

254 Russell Senate Office Building Washington, D.C. 20510

 

The Honorable Ted Cruz Ranking Member

Committee on Commerce, Science, & Transportation

United States Senate

512 Dirksen Senate Office Building Washington, D.C. 20510

 

RE: Consumer groups urge support for S. 1303, the “TICKET Act”

Dear Chair Cantwell and Ranking Member Cruz:

The eleven undersigned consumer organizations represent the tens of millions of fans who attend concerts, sports, theater, and other live events every every year 1,  generating more than $130 billion in economic impact.2 Despite the profits fans’ entertainment spending creates for this important industry, the process of obtaining tickets to a live event is often fraught with deception and unfair business practices. From a fan’s point of view, trying to get an affordable ticket to see their favorite band, cheer on their hometown team, or enjoy a night at the theater is a rigged game.

It is for this reason that the undersigned organizations have endorsed S. 1303, the Transparency in Charges for Key Events Ticketing Act (“TICKET Act”).3 We thank you for introducing this bipartisan consumer protection measure and we urge your colleagues on the Commerce Committee to support the bill when the committee considers it this week.

Reforms like those in the TICKET Act are urgently needed to ensure fans can access affordable live event tickets from both primary and secondary ticket sellers. The bill mandates all-in pricing of tickets, which addresses a significant source of frustration for consumers when purchasing tickets. Add-on fees, commonly labeled as “service fees,” “processing fees,” and “facility fees,” are typically added to the cost of the ticket as buyers progress through the ticket-buying process. On average, these fees raise the cost of a tickets by 27 percent and 31 percent on the primary and secondary market, respectively.4 The TICKET Act’s all-in pricing requirement will ensure that consumers see the full cost of a ticket the first time a ticket is advertised. This will allow fans to make a more informed buying decisions before they begin the buying process. Competition will also be enhanced, since competing ticketers on the secondary market will not be able to hide the true cost of a ticket behind a deceptively low advertised price.

The TICKET Act also includes reforms that would address a second significant frustration for ticket buyers: undisclosed speculative ticketing. This practice, also known as “spec ticketing,” involves resellers listing tickets they do not possess for sale on resale websites and secondary ticket exchanges. Speculative selling is a controversial ticketing practice since consumers are often deceived into thinking they are buying tickets the reseller possesses. There are numerous examples where consumers who thought they had a ticket to an event were later told that the speculative ticket reseller was unable to obtain the ticket.5 The TICKET Act addresses this problem by requiring ticket sellers to disclose clearly and conspicuously, prior to a consumer selecting it for purchase, when the seller does not have possession of a ticket being listed for sale. This would benefit consumers by allowing them to make a more informed choice about whether to take the risk that a speculatively resold ticket order may not be fulfilled.

On behalf of America’s live event fans, we thank you for your leadership on this issue and we urge your colleagues to join our organizations in support of this important pro- consumer and pro-competition bill.

 

Sincerely,

National Consumers League

Consumer Action

Consumer Federation of America

Consumer Federation of California

Fan Freedom Project

National Association of Consumer Advocates

Protect Ticket Rights

Public Knowledge

Sports Fans Coalition

U.S. Public Interest Research Group

Virginia Citizens Consumer Council

cc:       Members of the Senate Commerce Committee

 

1 Live Nation Entertainment. “Live Nation Entertainment Reports Fourth Quarter & Full Year 2022 Results.” Press release. (February 23, 2023) Online: https://www.livenationentertainment.com/2023/02/live-nation- entertainment-reports-fourth-quarter-full-year-2022-results/; Fischer, Ben and Broughton, David. “NFL per- game attendance makes big jump.” Sports Business Journal (January 16, 2023) Online: https://www.sportsbusinessjournal.com/Journal/Issues/2023/01/16/Upfront/nYl-attendance.aspx;  National Basketball Association. “NBA sets all-time records for attendance and sellouts during 2022-23 regular season.” Press release. (April 10, 2023) Online: https://www.nba.com/news/nba-sets-all-time- records-for-attendance-and-sellouts-during-2022-23-regular-season; The Broadway League. “2022–2023 Broadway End-Of-Season Statistics Show That Broadway Had Attendance Of 12.3 Million And Grosses Of $1.58 Billion.” Press release. (May 23, 2023) Online: https://www.broadwayleague.com/press/press- releases/20222023-broadway-end-of-season-statistics-show-that-broadway-had-attendance-of-123-million-     and-grosses-of-158-billion/

2 Oxford Economics. The Concerts and Live Event Industry: A Signi9icant Economic Engine (July 26, 2021) Online:   https://www.oxfordeconomics.com/resource/livemusic/

3 “S.1303 – 118th Congress (2023-2024): TICKET Act.” Congress.gov, Library of Congress, 26 April 2023, https://www.congress.gov/bill/118th-congress/senate-bill/1303.

4 United States Government Accountability OfYice. Event Ticket Sales: Market Characteristics and Consumer Protection Issues (GAO-18-347). Pg. 15 (April 12, 2018) Online: https://www.gao.gov/assets/gao-18-347.pdf

5 Burchill, Caitlin. “Burlington man learns his expensive Taylor Swift tickets don’t exist days before concert,” NBC Connecticut. (June 13, 2023) Online: https://www.nbcconnecticut.com/investigations/nbc-ct- responds/burlington-man-learns-his-expensive-taylor-swift-tickets-dont-exist-days-before-   concert/3048419/; Oberle, Marisa. “PROBLEM SOLVERS: Potential ‘controversial’ practice leaves Kent Co. family without Taylor Swift tickets,” FOX 17-West Michigan. (June 21, 2023) Online: https://www.fox17online.com/news/problem-solvers/problem-solvers-controversial-practice-leaves-kent-   co-family-without-taylor-swift-tickets-day-before-concert

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About the National Consumers League (NCL)
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 nclnet.org.

CFPB’s structure ruled unconstitutional, but is it really? – National Consumers League

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SG_HEADSHOT.jpgThe DC Federal Circuit Court of Appeals ruled on Tuesday that the structure of the Consumer Financial Protection Bureau (CFPB), the Wall Street financial watchdog that is the brainchild of  Sen. Elizabeth Warren (D-MA), is unconstitutional.The three judge tribunal said that the CFPB will now function under direct oversight of the President, who will have the power to fire the agency’s director at will. The decision is intended to weaken the agency’s ability to wield its regulatory power independently from this or any Administration.

The lawmaker who authored the decision, U.S. Circuit Judge Brett Kavanaugh, is a well-known conservative who once worked on President Bill Clinton’s impeachment as a Hill staffer. Judge Kavanaugh wrote that the CFPB’s “single-director structure” violates the separation of powers specified by the Constitution by vesting one person with vast power “unchecked by the President.” Prior to the decision, the President could only fire the director for very specific reasons. Supporters of the CFPB’s work predicted this court would find a reason to fault the agency and its structure.

Judge Kavanaugh wrote: “The CFPB’s concentration of enormous executive power in a single, unaccountable, unchecked Director not only departs from settled historical practice, but also poses a far greater risk of arbitrary decision-making and abuse of power, and a far greater threat to individual liberty, than does a multi-member independent agency.” This seems like a dubious basis for undermining an agency’s power as Congress created the CFPB structure very deliberately.

It is likely the federal government will ask the full DC Circuit to reconsider its ruling. And the recent wave of Obama appointees to the court may suggest a rehearing is possible. Meanwhile, Senator Warren had this to say about the decision:

“This split decision — which bizarrely relies on a mischaracterization of my original proposal for a new consumer agency — will likely be appealed and overturned. But even if it stands, the ruling makes a small, technical tweak to Dodd-Frank and does not question the legality of any other past, present, or future actions of the CFPB. The CFPB has been, and will remain, highly accountable to both Congress and the President, and continued Republican efforts to transform the agency’s structure or funding should be seen for what they are: attempts fostered by big banks to cripple an agency that has already forced them to return over $11 billion to customers who have been cheated.”

The CFPB has become such an important instrument of protection for consumers by overseeing the activities of the financial service industry that of course, given its imposition of fines and cracking down on industry misdeeds, bad actors are trying at every turn to challenge its power. It’s reminiscent of the multiple legal attacks on the Fair Labor Standards Act of 1938, which stood up well.

The CFPB is doing exactly the job Congress intended, being the cop on the beat, and it’s fortunate that its structure and ability to police the industry won’t be seriously altered by this decision.