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FTC guidance to multi-level marketers highlights advocates’ priorities – National Consumers League

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January 9, 2018

Contact: Carol McKay, (202) 207-2831 or carolm@nclnet.org

Washington, DC – The National Consumers League (NCL) is pleased that the Federal Trade Commission’s (FTC) new guidance to the multi-level marketing (MLM) industry broadly reflects the priorities and concerns expressed by a broad coalition of advocacy organizations focused on fighting pyramid schemes. NCL also welcomed the Commission’s message that the benefit of relying on its existing authority under Section 5 of the FTC Act, as interpreted by decades of case law, rather than legislative action, is the best way to protect consumers from pyramid schemes. NCL, along with other national consumer advocacy and civil rights groups, pyramid scheme experts, and prominent direct selling companies, has opposed efforts by the MLM industry and its allies in Congress to weaken the FTC’s ability to investigate and prosecute pyramid schemes.

The following statement is attributable to John Breyault, National Consumers League Vice President, Public Policy, Telecommunications, and Fraud:

The FTC’s new guidance is consistent with existing case law and previous Commission guidance. In addition, it addresses topics such as income and product claim substantiation, internal consumption, and inventory loading that the MLM industry has frequently misinterpreted. Indeed, the guidance once again demonstrates that the FTC already has the tools it needs to do its job and protect consumers from pyramid schemes masquerading as legitimate MLMs.

Despite industry claims to the contrary, pending bills in Congress — H.R. 3409 and a House appropriations rider sponsored by Rep. John Moolenaar (R-MI) — would fundamentally weaken the FTC’s ability to hold MLMs accountable when they perpetrate fraud against prospective entrepreneurs. The Commission’s new guidance is clear and sound advice to the MLM industry about where the guardrails should be placed in order to avoid pyramidal behavior, and yet another indication that proposed legislation is unnecessary and, indeed, undermines the FTC’s authority.

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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 group objects to unlawful transition of power at CFPB – National Consumers League

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November 28, 2017

Contact: Cindy Hoang, (202) 207-2832 or cindyh@nclnet.org

Washington, DC—The National Consumers League (NCL), the nation’s oldest consumer and worker advocacy organization, announced it support for the actions of former Consumer Financial Protection Bureau (CFPB) Director Richard Cordray appointing his Deputy at the Bureau, Leandra English, as acting head of the agency. Director Cordray stepped down from the Bureau on November 24. NCL is calling on President Trump to respect the leadership process outlined in the Dodd Frank Act for independent agencies such as CFPB, which he failed to do when he appointed Mick Mulvaney as acting director.

Congress, in drafting Dodd-Frank, set out to harmonize the law with the Federal Vacancies Reform Act, which states that its general provision for presidential appointment of an acting official without a Senate vote in the event of a vacancy does not apply to agencies where “a statutory provision … designates an officer or employee to perform the functions and duties of a specified office temporarily in an acting capacity.” The statutory delegation of leadership authority over the CFPB to the Deputy Director in the event of the Director’s absence is exactly what the statute’s drafters had in mind.

The following statement can be attributed to NCL’s Executive Director Sally Greenberg:  

The CFPB statute, created under the Dodd-Frank Act, specifically notes that the Director ‘shall appoint a deputy to run the agency if the director slot is vacant.’ It’s directive, not permissive language. We question President Trump’s direct and immediate designation of a new head of the agency without following the process for independent agencies. That process would include a nomination of an individual to lead the agency, followed by Senate hearings, followed by a vote in the Senate to confirm.

The CFPB, like the Federal Reserve Board Chair and its respective appointments, was designed to do its work free from Congressional pressure or special interests. The Bureau is a watchdog over financial sector abuses like payday lending, predatory student loan and debt collection policies, and the opening of phony bank accounts like the activities Wells Fargo engaged in.   

President Trump has circumvented appropriate procedure by naming Mick Mulvaney, his Office of Management and Budget Director, as the Acting Director of the CFPB. The move is an affront to CFPB independence and is constitutionally and procedurally wrong. The federal courts will need to rule on the interpretation of the statute.

Mick Mulvaney is the wrong choice for additional reasons, as well. He is already serving as head of the Office of Management and Budget. He is on record as having said the Bureau, which has returned $12 billion to 29 million American consumers, is a “sad, sick joke” and that he wants to see it abolished. He is a threat to the CFPB’s track record as an independent agency working on behalf of consumers. Consumers would be seriously harmed by Mulvaney, who is not an independent actor and lacks any record of supporting consumer protections.

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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.

Practice safe shopping this Black Friday, Cyber Monday and holiday season

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November 22, 2017

Contact: Cindy Hoang, (202) 207-2832 or cindyh@nclnet.org

Washington, DC–As families prepare for their annual Thanksgiving traditions, many, too, are getting ready to put their credit cards and hard-earned cash to work this Black Friday (or even earlier at some retailers). While “Cyber Monday” used to be considered the biggest online shopping day of the year, the holiday shopping rush seems to start earlier and earlier each year. With more and more consumers opting to avoid the mall, online spending over the Thanksgiving weekend through Cyber Monday is expected to be in the billions.

Forbes reported last month that this holiday shopping season is expected to be “robust.” 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. As convenient as they seem, 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.
  2. Secure your own 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.
  3. 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.
  4. 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. Consider using a “virtual” credit card number.  These numbers replace your plastic credit card number with a new number that is linked to your real account number.  When you’re prompted to enter your credit card number at checkout, you enter the virtual number instead of the real number.  These “virtual” numbers can be set to have a low credit limit, to only work at certain Web sites, or to expire after a certain period of time (two months from date of purchase is a good rule of thumb).  This way, if the Web site you’re shopping at is compromised, the crooks likely won’t be able to run up charges on your real credit account since the virtual number.  A note of caution, however: think twice before using a virtual credit card number for services where you will be billed repeatedly or for things like rental car reservations, since the card may not be billed until you pick up the car.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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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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.

FCC Lifeline vote threatens affordable access to broadband – National Consumers League

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November 16, 2017

Contact: Cindy Hoang (202) 207-2832, cindyh@nclnet.org   

Washington, DC – The National Consumers League is extremely disappointed in today’s vote by the Federal Communications Commission to begin a rulemaking process to alter the Lifeline program. In particular we are concerned that the FCC’s proposal will restrict funding to only facilities-based providers of Lifeline service. Such restrictions would threaten access by the most vulnerable Americans to voice and broadband services by excluding from the market the very Lifeline service providers that have helped make the program a success.

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

“The current FCC leadership would like the public to believe that its vote today will help bridge the digital divide. In reality, the FCC’s action threatens to exacerbate the current digital divide, with low-income consumers are relegated to expensive, low-quality Internet service while those with means enjoy access to 21st century broadband. We urge the Commission to instead expand outreach to the millions of consumers who qualify for Lifeline, but haven’t enrolled. The National Consumers League stands with the coalition of consumer, rural, tribal, and low-income advocacy organizations who are calling on Chairman Pai to focus on expanding the Lifeline program and promoting policies that bridge — rather than worsen — the digital divide.”

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About the National Consumers League

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

NCL welcomes nationwide removal of misleading nutritional scoring system from grocery shelves – National Consumers League

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November 9, 2017

Contact: Cindy Hoang (202) 207-2832, cindyh@nclnet.org   

Washington, DC—The National Consumers League (NCL) has welcomed news that a supermarket-based nutritional scoring system of food products called NuVal, which at its peak was used in 1,600 grocery stores nationwide, has been discontinued. For the last five years, NCL has been a vocal critic of NuVal’s controversial ratings system. In a letter to the U.S. Food and Drug Administration (FDA) in 2012, NCL called NuVal “fatally flawed,” pointed out that it gave some junk foods higher nutritional ratings than canned fruit, and called for its investigation and removal from grocery stores.

NuVal scored food on a scale of 1-100, with printed labels appearing on shelves next to price labels in stores that used the system. NuVal claimed to help consumers compare products by simplifying their nutritional value; the higher the number, the “better the nutrition.”

“The NuVal rating system was fatally flawed, and its removal from grocery store shelves is a win for consumers,” said National Consumers League Executive Director Sally Greenberg. “Its proprietary algorithmic formula – which was not made transparent to consumers or the scientific community – resulted in snack chips, soft drinks, and desserts being given as high or higher nutritional scores than some canned fruits and vegetables. We welcome the news that NuVal has been discontinued nationally.”

The consumer group criticized NuVal’s nutritional ratings as confusing—not helpful—to consumers trying to make healthy decisions for their families and called on the FDA to step in and set industry-wide standards to govern such systems so that they truly benefit nutrition-minded consumers. Other critics questioned conflicts of interest behind NuVal’s research and food manufacturers.

The Yale Daily News reported that, according to NuVal’s creator, Director of the Yale-Griffin Prevention Research Center David Katz, “Hershey’s paid him more than $731,000 for research, and Quaker Oats had paid him more than $633,000. He has also received funds from Kind Bar and Chobani.”

Last fall, NCL noted that several regional grocery store chains, including Tops Market, based in Williamsville, NY, California-based Raley’s, and Massachusetts-based Big Y, had also begun phasing out the system.

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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.

Senate votes to undermine Americans’ right to a day in court – National Consumers League

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October 25, 2017

Contact: Cindy Hoang (202) 207-2832, cindyh@nclnet.org   

Washington, DC–The National Consumers League (NCL) condemns the Senate’s passage of a Congressional Review Act resolution to repeal the Consumer Financial Protection Bureau’s (CFPB) arbitration rule. The rule would have allowed consumers access to courts after big banks like Wells Fargo steal their identity, or credit bureaus like Equifax compromise consumers’ most personal information.

The following statement is attributable to Sally Greenberg, NCL executive director:

“Last night, while most Americans were sleeping, 50 Senate Republicans and Vice President Mike Pence voted to take away our sacred right to a day in court. Today, in the aftermath of massive financial wrongdoings like Wells Fargo’s nearly 1.4 million fraudulent accounts scandal or Equifax’s massive data breach, financial companies will continue to be free to bury binding arbitration clauses in their terms of service. These ‘rip-off clauses’ are designed to prevent consumers from having their day in court or joining together to form a class action lawsuit after they are harmed.

In fact, earlier this year the NCL Board of Directors voted to take NCL’s operating capital out of Wells Fargo and switch to Bank of Labor precisely because of Wells’ requirement that customers to give up their rights. Bank of Labor, Bank of America and many credit unions are thriving without forcing their customers to sign away rights through these odious ‘rip-off clauses.” We applaud CFPB director Richard Cordray, whom NCL is honoring this evening, for his efforts to protect the consumer rights that were just taken away in one fell swoop by this unfortunate Senate vote.

The Senate’s decision to side with Wall Street over consumers is shameful. The denial of one of our most basic rights as Americans — the right to our day in court — is a massive step backwards for consumers and our nation. While this may be a setback, the National Consumers league will continue fighting before Congress and the Administration to reaffirm consumers basic rights, including, the right to justice.”

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About the National Consumers League

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

NCL condemns Trump Executive Order undermining Affordable Care Act – National Consumers League

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October 13, 2017

Contact: NCL Communications, Cindy Hoang, (202) 207-2832, cindyh@nclnet.org

Washington, DC—The National Consumers League (NCL) condemns the Executive Order issued Thursday by President Trump that would undermine the Affordable Care Act, weaken or eliminate critical consumer protections, make it difficult for those with pre-existing conditions to afford health coverage, and destabilize the individual insurance market.

The Trump Administration’s Executive Order would allow Association Health Plans to offer coverage across state lines that would not be subject to state insurance regulations or the ACA’s requirement to cover the Essential Health Benefits, such as hospitalization; prescription drugs; pregnancy, maternity, and newborn care; mental health and substance use disorder services; preventive and wellness services; and other critical health services.

The availability of Association Health Plans would bifurcate the market, with healthy people buying skimpier, non-ACA compliant policies and sicker people seeking to buy more expensive, comprehensive plans. By thrusting people with pre-existing conditions into a separate risk pool, the Executive Order would result in a death spiral and a return to the pre-ACA days in which those with pre-existing conditions were unable to get affordable coverage on the individual market.

Ignoring the pleas of millions of consumers to protect their care, President Trump’s Executive Order is the latest in a long line of Trump Administration actions to undermine the Affordable Care Act — starting with Congress’ multiple unsuccessful attempts to repeal the law, the President’s refusal to guarantee payment of the Cost-Sharing Reduction subsidies that allow people to afford health coverage, and the sabotage of Open Enrollment by cutting the enrollment period in half, slashing federal support for advertising and navigators, and completely shutting down HealthCare.gov for 12 hours every Sunday throughout Open Enrollment.

“President Trump’s actions are inexcusable,” said Sally Greenberg, NCL executive director. “Rather than promoting Association Health Plans, the Trump Administration should allow Congress to continue the bipartisan process started by Senators Lamar Alexander (R-TN) and Patty Murray (D-WA) in the Senate Health, Education, Labor, and Pensions Committee to strengthen the ACA and stabilize the health insurance marketplace so that all consumers can have access to quality, affordable healthcare.”

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About the National Consumers League

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

NCL applauds pro-consumer additions to autonomous vehicle (AV) legislation – National Consumers League

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October 4, 2017

Contact: NCL Communications, Cindy Hoang, (202) 207-2832, cindyh@nclnet.org

Washington, DC—The National Consumers League (NCL) is applauding a series of positive changes adopted by the Senate Commerce Committee today on a bill that will set the regulatory and legal framework for the deployment of autonomous vehicles in America in for years to come. The bill, the American Vision for Safer Transportation through Advancement of Revolutionary Technologies Act, or AV START Act (S. 1885), is still undergoing changes that the advocates hope will make the AV deployment safer and more consumer-friendly.

Sally Greenberg, NCL executive director said: “Thanks to robust consumer advocacy and the support of consumer champions on the Committee, including Ranking Member Nelson (D-FL), Senators Blumenthal (D-CT), Markey (D-MA), and Baldwin (D-WI) and many others, the bill is much improved, though we still have concerns about AV rollout’s impact on consumer safety protections. We are very pleased to finally have a provision that will address the problem of children dying in hot cars, and provisions giving consumers access to information about AVs.”

NCL, along with other consumer and auto safety organizations, raised concerns at a press conference on October 3 about the bill, including that it contained provisions that would weaken auto safety laws, preempt localities from protecting their own citizens, restrict the right of consumers to go to court if they are injured by faulty designs, and generally leave consumers at risk. NCL also worked with a coalition that included members of industry who share concerns about consumers controlling their data related to AVs and support a provision setting up a federal commission to study the issue. Such a commission would include consumer advocates with expertise on safety and privacy – and make recommendations to Congress on how best to protect the privacy of those data. Many – though not all – of those concerns were addressed at the Senate Commerce Committee markup today.

NCL noted that consumer advocates remained concerned by how the legislation would undermine some of the safeguards on which consumers rely and intend to work with senators to further improve the bill so that it sets up a safety framework that better protects consumers in AVs. “We are getting there,” said Greenberg. “All in all, the bill the Committee adopted today is a vast improvement over the initial drafts. We are grateful to members of the Committee who embraced the need for far greater consumer and privacy protections and supported these critical improvements to the bill.”

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About the National Consumers League

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

LifeSmarts announces ‘Year of Health and Safety’ for national consumer education / scholarship program – National Consumers League

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September 26, 2017

Contact: NCL Communications, Cindy Hoang, (202) 207-2832, cindyh@nclnet.org

Washington, DC–The 24th season of LifeSmarts, a national scholarship competition and educational program coordinated by the National Consumers League (NCL), kicked off earlier this month at LifeSmarts.org, where students learn about real-life consumer issues and compete to win prizes and scholarships. Today, NCL announced that the 2017-2018 LifeSmarts program year will be the “Year of Health and Safety,” with special emphasis on health-related curriculum and competitive opportunities, underwritten by a grant from McNeil Consumer Healthcare.

Today LifeSmarts is unveiling a new community service opportunity for high school students – the LifeSmarts OTC Medicine Safety Mentoring Project. LifeSmarts provides materials and curriculum, bolstered by educational resources produced by Scholastic, to enlist high school students to become mentors for middle school students to help them understand the wise use and safe storage of over-the-counter medicines.

“We are so excited to declare 2017-18 the ‘Year of Health and Safety,’” said national Program Director Lisa Hertzberg. “We know LifeSmarts gives students the skills they need to succeed as adults, and we see students applying what they learn immediately at home and in their communities. We are thrilled to be able to give special focus to this year on health and safety lessons and look forward to rolling out new resources for teachers and opportunities for student participants.”

Besides health and safety, LifeSmarts focuses on four other main content areas: consumer rights and responsibilities, personal finance, technology, and the environment. Students are quizzed on their knowledge of these subject areas during online competition. Top-performing teams then advance to statewide competitions, and state champion teams advance to the national championship held each year in a different American city. The 2018 National LifeSmarts Championship will take place April 21-24 in San Diego. Winning teams receive scholarships and other prizes.

Last year, students answered more than 3.5 million consumer questions about credit reports, recycling, nutrition, social media, state lemon laws, and everything in between. More than 100,000 students are expected to participate in the program in the 2017-18 season. LifeSmarts is active in all states and the District of Columbia, where NCL is headquartered.

“We are excited to have the opportunity to focus on health and safety for consumers at this age, when they are beginning to make decisions for themselves and influencing decisions made by their parents,” said Sally Greenberg, executive director of NCL. “Too often, traditional high school curriculum fails to teach students vital information to become successful adults, and LifeSmarts helps to close that gap.” 

“Johnson & Johnson Consumer Inc. is proud to be a long-standing supporter of the LifeSmarts program and thrilled about the OTC Medicine Safety Mentoring project. As a manufacturer of over-the-counter medicines, Johnson & Johnson Consumer Inc. believes that the LifeSmarts OTC Medicine Safety Mentoring Project can help instill a healthy respect for all medicines in adolescents by teaching core concepts on the responsible use and safe storage of medicines. In doing so, we are building a healthier future for our adolescents, and helping to prevent medicine misuse, errors, and adverse events,” said Ed Kuffner M.D., Chief Medical Officer, Johnson & Johnson Consumer.

In addition to hosting the official LifeSmarts competition, LifeSmarts.org provides resources for teachers to supplement existing lesson plans. These include daily quizzes, educational videos, social media competitions, focused study guides, and scholarship opportunities. LifeSmarts lessons closely align with courses taught in family and consumer sciences, business, technology, health, and vocational education.

Visit LifeSmarts.org for more information.

LifeSmarts: Learn it. Live it.

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About LifeSmarts

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

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

NCL: Congress should move to address outrageous Equifax conduct in wake of breach – National Consumers League

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September 19, 2017

Contact: John Breyault, NCL, (202) 207-2819, johnb@nclnet.org or Cindy Hoang, (202) 207-2832, cindyh@nclnet.org

Washington, DC – The National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, is calling on Congress, in the strongest possible terms, to hold data brokers responsible for the massive increase in consumers’ data security risk stemming from the breach of 143 million records at Equifax. Since the revelation of the breach earlier this month, it has been reported that Equifax failed to heed warnings about well-known security vulnerabilities in critical systems.

“Equifax was made aware of this exploitable vulnerability, given a patch to prevent it, and then sat on its hands for weeks without action,” said Sally Greenberg, NCL executive director. “What is to prevent any company that collects our most private data from exposing millions of consumers to theft if there are few serious consequences? Where are the incentives to protect our data? That is what is lacking today and why we see breach after breach.”

“Congress needs to act. We need a federal law that holds companies accountable for keeping our information safe. And there must be dire consequences when they fail to do so through sheer negligence,” Greenberg said. “Such consequences should include automatic repayment for damages, regulation of the data brokers, and potentially even criminal liability.”

NCL is calling on Congress to act; we support those consumer champions in Congress who have introduced legislation that would begin to address consumers’ vulnerability to breaches. These include:

  • Freedom From Equifax Exploitation (FREE) Act – NCL applauds Senator Schatz (D-HI) and Senator Warren (D-MA) for introducing legislation that will help consumers reduce their risks of identity fraud. The bill creates a uniform federal process for obtaining and lifting a credit freeze for free. In addition, consumers can receive one additional free credit report and get a refund for any fee credit reporting agencies levied against them when they froze their credit to prevent identity theft.

  • Data Broker Accountability and Transparency Act of 2017 – This common-sense privacy and security legislation, introduced by Senators Blumenthal, Franken, Markey, and Whitehouse, would allow consumers to monitor brokers’ collection of personal data for any inaccuracies in a free and easy-to-use way through a centralized website. The bill also requires data brokers like Equifax to develop and maintain robust privacy and data security programs and provide prompt notice in the event of breaches.

While NCL supports these bills, we await passage of a long-awaited national data security standard, which includes data breach notification requirements modeled after strong state laws in places like Illinois and California. As massive data breaches like Equifax’s become more common, exposing hundreds of millions of consumers to identify theft and other fraud, the need for this legislation will only become more critical. It is long past time for Congress to take action.

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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.