Posts

New study says Chipotle management presses workers to work sick and skip food safety practices, creating health risks for consumers

/in /by

February 6, 2020

“The Unsavory side of ‘Food with Integrity.’ ” report details management practices that lead to worker abuses and call into question protocols Chipotle put in place after recent food safety crises

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

New York — After dozens of outbreaks of food borne illness incidents over the past four years, Chipotle gave lip service to reforms in their work practices, but the fast-casual restaurant has continued to engage in management practices that lead to abuses of workers that may create food safety risks for consumers, a new study says.

Scores of employees interviewed for the study reported management pressure to work fast without following proper food safety procedures, such as:

  • One worker being pressured to work while sick, even after the worker vomited  part way into his shift;
  • Undercooked chicken being served to a customer because the grill cook out in place had not been properly trained;
  • Workers pressured to work so fast that during lunch and dinner rushes, they often flipped over  chopping boards used to cut raw meat, and reused the boards without washing them;
  • One worker who cooked food had to clean feces off the floor or ceiling of a bathroom multiple times without hazmat suit or adequate protection equipment;
  • Pressure to work without stopping, with no time left to wash their hands for hours on end.

In the report, “The Unsavory Side of ‘Food with Integrity,'” workers told researchers that their managers often knew when supposedly independent audits were coming because other managers or field leaders who have undergone inspection often tip them off. Workers reported that managers relax rules outside of inspection periods and tightened up adherence to food safety protocols when inspections are imminent.

“The findings of this report call into question the effectiveness of measures that Chipotle put in place to solve their food safety crises of a few years ago,” said Sally Greenberg, executive director of the National Consumers League, which co-authored the report. “If Chipotle executive management and the Food Safety Advisory Council are responsible for making sure that this program is implemented effectively to keep the public safe, they have been asleep at the wheel.”

The National Consumers League, America’s pioneering consumer advocacy organization which has been representing consumers and workers on marketplace and workplace issues since their founding in 1899, undertook the study after SEIU Local 32BJ brought the organization information from field organizers about what were learning about practices that could affect consumer food safety from Chipotle workers they were supporting in their organizing efforts.

Organizers and researchers spoke to hundreds of workers, then undertook formal interviews with 47 workers at 25 stores in New York City. These interviews and statements form the basis of the report, which also included analysis of a variety of corporate filings, press reports, and other publicly available documents.

“We chose to blow the whistle on these practices and abuses because our Chipotle managers did not listen to us,” Jeremy Espinal, a Chipotle worker, said. “It’s a pressure-packed workplace where supervisors intimidate you and retaliate against you.”

“I am speaking out because I want to make Chipotle a better place to work and a better place for customers to eat,” Jahaira Garcia, another Chipotle worker, said. “This job is how I support myself, how I help my father out with expenses at home and how I am able to partly pay for my school fees.”

32BJ President Kyle Bragg thanked the National Consumers League for working with the union and thanked the workers for their courage.

“I believe that these workers are Chipotle’s best assets,” Bragg said. “They can put the integrity back into ‘food with integrity.’ Give them a voice on the job and they will help Chipotle achieve the lofty ideals of its marketing.”

Report findings include:

  • Managerial pay incentives that promote cutting food safety corners:  managers can earn up to an additional 25% of base pay by meeting performance goals that include reducing labor costs, creating a highly pressurized work environment. This bonus program may incentivize managers to meet productivity goals by cutting corners on food safety or by violating worker protection laws.
  • Ineffective store audits: Worker interviews revealed that general managers frequently know when supposedly independent audits are coming because other managers or field leaders who have been inspected often tip them off. Workers reported that managers have relaxed rules following outside of inspection periods and tightened up adherence to food safety protocols when an audit is imminent.
  • Pressure to work sick: New York-based workers reported that managers have pressured crew members to work while sick or retaliated against workers for taking paid sick leave.
  • Minimal training: Despite the substantial skills needed to safely prepare Chipotle’s fresh food menu, many new hires receive minimal training and “learn as they go” from co-workers who may not have received much training themselves.

“As chairman of the New York City Council Public Health Committee, this is deeply troubling to me,” said New York Councilmember Mark Levine. “Risk of contagion should not be aggravated by an aggressive incentive structure that encourages managers to abuse workers and cut food safety corners. The public needs to know more and Chipotle needs to change their policies. That is why I am calling for a public hearing in the Council. I encourage Chipotle workers and consumers to come forward to discuss these issues. I also invite the company to be there to engage in this conversation.” 

Nick Freudenberg, distinguished professor of Public Health at the CUNY Graduate School of Public Health & Health Policy and Director of the CUNY Urban Food Policy Institute, discussed Chipotle’s history of food borne disease outbreaks.

In 2015 and 2016, Chipotle was rocked by a series of food safety crises that sickened hundreds of customers across the country and included exposure to virulent pathogens like E. coli, salmonella, and norovirus, resulting in vomiting, pain, and in some cases hospitalizations. Despite claiming major food safety reforms instituted in 2016 to recapture consumer confidence, the company continued to have food-borne illness problems in 2017 and 2018, including an Ohio outbreak in which 647 people were sickened.

Despite Chipotle implementing an “enhanced food safety program” in 2016, the City’s Department of Health found 260 critical violations at 74 out of 84 restaurants from 2017 to 2019. Critical violations are those most likely to pose “a substantial risk to the public’s health” and lead to food-borne illness. The critical violation examples found by health inspectors include food left at dangerous temperatures that allow for the growth of pathogens, practices that allow for the contamination of ready-to-eat foods, evidence of various pests, and stores supervised by managers without a certificate in food protection. Just two weeks ago, the City cited a Chipotle restaurant where they found a crewmember working while “ill with a disease transmissible by food or [an] exposed infected cut or burn on [their] hand”.

Worker advocates and community groups were surprised by the findings and expressed support for Chipotle workers:

“Chipotle has not only acted duplicitously—championing a mission of integrity and freshness in public while speeding up production and cutting corners behind the counter—the company has created added risks for workers and consumers in the pursuit of profits,” said Ana Maria Archila of the Center for Popular Democracy. “Outlined in this report are issues that range from cautionary to alarming. Will Chipotle wait for another outbreak before they take corrective action—or will they take action ‘with integrity’ now to reduce potential harm?”

“This report is vital to understanding that the exploitation of workers in the food industry does not just impact workers and their families, it impacts everyone, including consumers,” Suzanne Adely of the Food Chain Workers Alliance said. “Chipotle and all food service workers deserve fair working conditions. Denying them basic, humane rights like sick days, proper healthy and safe working spaces, cannot be justified. Exploiting food workers for profit does not only harm workers and their families, it harms everyone, including consumers.”

“Chipotle is another example of worker safety and consumer safety being undermined together,” said Charlene Obernauer of the New York Committee for Occupational Safety and Health (NYCOSH). “Chipotle has a legal responsibility to provide a safe and healthy workplace and they need to take the appropriate steps to make this possible.”

“This report details how Chipotle’s low-road labor standards and incentives for managers to cut corners are endangering the dining public,” said Paul Sonn, State Policy Program Director for the National Employment Law Project. “Chipotle needs to recognize that investing in its workforce with stable, quality jobs is essential for delivering a safe and healthy dining experience for its customers.” 

“We are deeply concerned with the workplace issues, especially that of forced arbitration described by Chipotle workers in this study,” Deborah Axt of Make the Road said. “We stand with Chipotle workers, the majority of whom are workers of color and many of whom are from communities like the ones our members are from, in calling for company-wide reforms and a commitment to invest in a stable workforce.”

###

About 32BJ SEIU

With 175,000 members in 11 states, including 85,000 in New York, 32BJ SEIU is the largest property service workers union in the country. 

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 www.nclnet.org.

Script Your Future launches ninth annual student competition for innovations in medication adherence

/in /by

January 20, 2020

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—Today marks the launch of the ninth annual Script Your Future Medication Adherence Team Challenge, a two-month-long intercollegiate competition among health profession student teams and faculty for creating solutions to raise awareness about medication adherence as a critical public health issue. The Challenge, hosted by the National Consumers League (NCL), is returning to university campuses across the country after eight years of successful student competition and innovation.

The Challenge is an integral part of Script Your Future, a campaign launched by NCL and its partners in 2011 to combat the problem of poor medication adherence in the United States, where nearly three out of four patients do not take their medication as directed.

“Today’s medications are better than ever at treating and curing people, but these treatments can only work if patients know the importance of taking their prescriptions as directed. It takes all members of the health team to make that happen, and pharmacists play a big role in that circle of trust,” said Sally Greenberg, NCL Executive Director. “For nine years, our Script Your Future Medication Adherence Team Challenge has galvanized student health professionals to explore creative, interprofessional approaches, in encouraging medication adherence. To usher Script Your Future into the next era of improving adherence, we have implemented two new components to the Team Challenge: technology innovation and vaccine adherence. We have been blown away by the ingenuity of our student teams, and we look forward to how they will contribute to their communities in this year’s Team Challenge.”

The Challenge is sponsored by the American Association of Colleges of Pharmacy (AACP), the National Association of Chain Drug Stores (NACDS) Foundation, the National Community Pharmacists Association (NCPA), and the American Pharmacists Association (APhA).

Starting today through March 20, inter-professional teams—including student pharmacists, nurses, doctors, and others—will implement creative outreach approaches in their communities to raise awareness and improve understanding about medication adherence. At the end of the Challenge, teams submit entries for review by national partner organizations, and winners are recognized for their efforts to improve medication adherence.

“The Script Your Future Medication Adherence Team Challenge has provided a tremendous opportunity for health professions students to demonstrate how they can work collaboratively to improve patient care through better medication adherence,” said Dr. Lucinda L. Maine, Executive Vice President and CEO at the American Association of Colleges of Pharmacy. “This Challenge, now in its ninth year, is a powerful example of the impact health professions teams can have on the public health issue of medication adherence.”

Since the Challenge began in 2011, more than 18,800 future health care professionals have directly counseled nearly 78,000 patients and reached more than 26 million consumers about the importance of medication adherence. Last year’s National awardees were Pacific University School of Pharmacy, University of Pittsburgh School of Pharmacy, North East Ohio Medical University College of Pharmacy (NEOMED), Touro University California College of Pharmacy, and the University of Charleston School of Pharmacy. Wilkes University Nesbitt School of Pharmacy earned the Rookie Award for their outstanding contribution during their first year of participation in the Team Challenge.

In addition to the national-level awards, the Challenge also honors teams with focused awards in the areas of health disparities, communications and media outreach, and creative inter-professional team collaboration. In 2019, the Challenge honored the following schools with focused awards: Northeast Ohio Medical University College of Pharmacy (Health Disparities), Touro University College of Pharmacy (Media Outreach), and the University of Charleston School of Pharmacy (Creative Inter-professional Team Event).

To learn about previous winners, visit https://www.scriptyourfuture.org/

For more information on the Challenge, visit the Challenge Community website at

https://syfadherencechallenge.ning.com/. Tweet along with us during the Challenge using #SYFchallenge, and follow the campaign @IWillTakeMyMeds.

### 

About Script Your Future 

Script Your Future is a campaign of the National Consumers League (NCL), a private, non-profit membership organization founded in 1899. NCL’s mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information about the Script Your Future campaign, visit ScriptYourFuture.org. For more information on NCL, please visit nclnet.org.

National Consumers League opposes ‘unethical and unjustified’ Grinch cuts to the SNAP program, causing hundreds of thousands of children to lose nutrition assistance

/in , , , , /by

December 9, 2019

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—Despite widespread opposition, the U.S. Department of Agriculture (USDA) has announced that it would tighten work requirements for able-bodied Supplemental Nutrition Assistance Program (SNAP) participants without dependents. The National Consumers League joins 140,000 other Americans who overwhelmingly oppose this cruel and unnecessary slashing of an effective safety net program.

Under current regulations, able-bodied adults without dependents (ABAWDs) can receive food assistance no more than three months out of every three years, unless they work at least 80 hours per month or meet other education or workforce training requirements. Previously, states could waive work requirements when jobs were unavailable or didn’t match workers’ skills, but the rule will make it more difficult to do so, causing an estimated 688,000 people to lose benefits.

The vast majority of the more than 140,000 comments submitted to USDA in response to the rule were written in opposition, including those submitted by NCL Board member National Farmers Union (NFU).

Sally Greenberg, NCL’s executive director:

“More than 37 million Americans will experience food insecurity this year in the richest country in the world. SNAP, or the Supplemental Nutrition Assistance Program, eases that pain and helps ensure that those in need can put food on their tables. Among our national safety net programs, food stamps is among the most effective. It provides that essential nutrition safety net for American families and especially children– yet this administration has done everything it can to slash gaping holes into that net, preventing hundreds of thousands of children and adults from getting rightful access to these programs. To add to the pain, these work requirements will erode food security in rural and urban communities alike.

“NCL joins with the NFU in believing that these new rules reflect the cold indifference to the struggles of our fellow Americans; we believe it is unethical and unjustified. We continue to call on the administration to rescind this rule, and we stand with the anti-hunger community and the many national, state, and local organizations who seek to support and protect our most vulnerable citizens.”

###

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 www.nclnet.org.

NCL statement on nomination of Hahn to head FDA

/in , , , /by

December 3, 2019

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League (NCL), the nation’s pioneering consumer advocacy organization, welcomes Dr. Stephen Hahn’s nomination to lead the Food and Drug Administration (FDA). The statement below is attributed to Sally Greenberg, NCL executive director:

“Dr. Hahn is a veteran doctor and cancer researcher who served as chair of radiation oncology at the University of Pennsylvania School of Medicine and most recently as chief operating officer and medical executive at MD Anderson in Houston. He holds rare dual board certifications in both medical oncology and radiation oncology and has authored more than 200 academic works. He also brings a wealth of experience supervising and facilitating clinical trials. In an era where science is under attack, Dr. Hahn brings a welcome commitment to evidence-based medicine, science, and research. The FDA is the gold standard across the globe for ensuring the highest standards of safety and efficacy of medications and devices, and for the safety of our food supply. Consumers are being barraged by a plethora of untested products claiming health and safety. The FDA needs a strong leader who will bring an evidence-backed approach to protecting consumers and ensuring a clear pipeline for new therapies that are tested for safety and efficacy and hold true promise for treatments and cures.

“If confirmed, we look forward to working with Dr. Hahn to improve consumer protections in a number of areas, including regulation in the CBD product marketplace, addressing the clear health hazards of e-cigarettes, especially to underage users, and fully implementing the Food Safety and Modernization Act to reduce foodborne illness, which kills an estimated 3,000 people each year. We need a well-funded FDA that can offer a pipeline for medications to treat diseases while protecting the public from unsafe products, including drugs, devices, and foodborne illness.”

Greenberg is a board member of the Reagan Udall Foundation, created by Congress, to support the work of the FDA.

###

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 www.nclnet.org.

National Consumers League: Computer chip defects force nearly all consumers to choose between speed and security

/in , , , , , /by

October 24, 2019

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

New NCL #DataInsecurity report details threat these flaws pose to consumers—both in terms of the security of their data and the performance of their computers—and how they can protect themselves in the future

Washington, DC—A new report released today by the National Consumers League details how consumers have been impacted by a series of processor exploits announced over the last 22 months that leave nearly every computer and server from the past two decades vulnerable to hacking. With sensitive data at risk, patches have been issued that better secure computers and servers. However, these temporary fixes can result in significant performance problems.

The report, “Data Insecurity: How One of the Worst Computer Defects Ever Sacrificed Security for Speed,” is part of NCL’s #DataInsecurity Project. Timed to coincide with National Cybersecurity Awareness Month, the report is an opportunity to remind consumers about the importance of being safe and secure when online. The report discusses the threat these processor flaws pose to consumers—both in terms of the security of their data and the performance of their computer after the necessary security patches are applied—and how they can protect themselves in the future.

“This paper is a part of NCL’s mission to empower individuals to protect themselves from companies that put their data at risk,” said John Breyault, NCL vice president, public policy, telecommunications and fraud. “The scope and severity of these chip flaws is alarming, undermining both the security and speed of computers. Nearly two years after the flaws first made headlines, it is likely that consumers are still not fully aware of the risks they face if they do not protect themselves.”

The report details seven publicly disclosed exploits, known as “Spectre,” “Meltdown,” “Foreshadow,” “Zombieload,” “RIDL,” “Fallout,” and “SWAPGS,” that take advantage of the flaws found in CPUs manufactured by AMD, ARM, and Intel. While Spectre affects all three major chip manufacturers, all six subsequent exploits largely affect only Intel processors.

The exploits have been discovered on an ongoing basis for nearly two years, with the most recent one found in August 2019. The flaws are a result of a process called speculative execution, a functionality created in the 1990s that allows a processor to predict a user’s next action and perform it in advance, thereby reducing delays and increasing the speed of a computer. Because the flaws are foundational to how a CPU’s hardware is built, each patch is only temporary until the next exploit is discovered. Due to the nature of these flaws, the exploits that take advantage of them may not be traceable.

“Consumers are being forced to choose between the security of their data and the computer speed they were promised,” said Breyault. “We recommend consumers prioritize security, though unfortunately, it comes at a financial and performance cost.” 

The report concludes that the best protection for consumers is to buy a new computer that has a CPU with hardware-level security fixes or is immune from some of the exploits. Unfortunately, the NCL report acknowledges that this may not be practical for many consumers. Therefore, consumers are advised to perform frequent software updates. NCL is also strongly supporting data security bills such as the Consumer Privacy Protection Act of 2017 that would require companies to take preventative steps to defend against cyberattacks and data breaches and to provide consumers with notice and appropriate protection when a data breach occurs.

The full report can be found here.

###

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.

FAA evacuation tests could give green light to unsafe and inhumane airline seating

/in , , , , , , /by

October 21, 2019

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—The Federal Aviation Administration’s (FAA) upcoming passenger evacuation tests are designed with outdated standards that do not reflect the realities of today’s airline travel marketplace, said a coalition of ten consumer and flyers rights organizations in a letter sent today to FAA Administrator Steve Dickson and Department of Transportation (DOT) Secretary Elaine Chao.

The groups’ letter explains how the FAA’s current evacuation testing standards, which have not been updated in more than 20 years, do not account for multiple factors that could prevent safe evacuation in the legally-required 90-second threshold. For example, the current standards do not account for the presence of emotional support animals in the cabin, parents who may be separated from their children due to airlines’ family seating policies, or passengers with disabilities. In addition, the current evacuation standards do not account for the experience in recent emergencies of significant numbers of passengers attempting to bring personal items like roller bags with them as they evacuate. Nor do the standards effectively simulate the disruption from the widespread panic that can be expected in the event of an actual emergency.

“The FAA’s standards are woefully out of date and out of step with the current state of airline travel,” said John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League, which organized the letter. “Unless the standards are improved, the airlines will almost certainly see the results of these tests as a green light continue their never-ending quest to shrink seat sizes and cram more passengers into planes.”

In September, FAA Deputy Administrator Daniel Elwell announced that that the agency will conduct tests of airplane evacuations involving 720 “demographically representative” people over 12 days in November 2019 in Oklahoma City. These tests, the first conducted by the FAA in nearly two decades, come in response to a Congressional mandate that the agency set minimum seat size standards in order to increase passenger safety. Unfortunately, the FAA appears to be pressing forward with the testing without input from the DOT’s Office of Inspector General, which is currently conducting an audit of evacuation testing standards, or the agency’s own emergency evacuation standards advisory committee. Furthermore, it appears the testing will not be conducted with full-scale airplane cabin mock-ups, but instead using smaller sections that don’t properly simulate packed airplanes.

“It is imperative that Secretary Chao and Administrator Dickson act aggressively to address our organizations’ concerns so that the public, whose faith in the FAA has been significantly diminished recently, will have confidence that the highest of standards were employed during the test evacuations,” said Business Travel Coalition chairman Kevin Mitchell. “Congress also needs to ensure that the testing processes and the underlying critical assumptions are realistic,” added Mitchell.

“Airline travel has changed significantly over the last 20 years, with shrinking seats and record passenger loads, a high influx of carry-on bags, scattered seating of families, ubiquitous electronic gadgets and cords and even on-board animals,” said William J. McGee, Aviation Adviser for Consumer Reports. “It is critical that the FAA’s methodology changes as well, so that this vital testing accurately reflects real-world scenarios, where the stakes are often life-and-death.”

The letter was signed by the National Consumers League, Business Travel Coalition, Consumer Action, Consumer Federation of America, Consumer Reports, EdOnTravel.com, FlyersRights.org, Travel Fairness Now, Travelers United and U.S. Public Interest Research Group Education Fund.

###

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: Cars need to come with data deletion buttons to enhance consumer privacy protections

/in , , , , , , , , , , /by

October 3, 2019

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League, America’s pioneering worker and consumer advocacy organization, today called on Congress to take steps to rein in car manufacturers’ data collection practices and ensure that consumers have a mechanism to easily delete personal information collected about them by their vehicles.

Thanks to a proliferation of sensors, cellular connectivity and powerful in-car infotainment systems, modern cars can reportedly generate 25 gigabytes every hour and 4,000 gigabytes of data per day. In its new white paper, the consumer group examined the vast scope of personal information being collected about drivers by automobile companies to power a vast data engine that could be worth $750 billion by 2030.

“Every time a consumer gets in a car — whether it’s a vehicle she owns, rents, or rides in – huge amounts of personal data get shared with car companies with practically no oversight or consumer protections,” said NCL Executive Director Sally Greenberg. “We want to shine a light on car companies’ data practices and encourage Congress to create common-sense rules of road for this growing marketplace.”

The NCL white paper examines several existing laws and proposed bills to offer a framework to legislators for steps they can take to better protect the privacy and data security of the driving public. In particular, NCL is urging Congress to mandate that car manufacturers include an easy-to-use data deletion functionality in all new cars to help consumers take control over their in-car data.

“Consumers just want to get from point A to point B safely,” said Greenberg. “While the data generated by our cars can help fuel innovation in the auto industry, that shouldn’t come at the expense of our privacy. Consumers are looking to Congress to take the lead and ensure that car company’s data collection practices have some sensible guardrails.”

Read NCL’s new white paper here. (pdf)

###

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.

AdvoCare settlement highlights FTC’s importance in protecting consumers from pyramid schemes

/in , , , , , , , /by

October 2, 2019

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—Today, the National Consumers League, the nation’s pioneering consumer and worker advocacy organization applauded the Federal Trade Commission (FTC) for its successful investigation and settlement with multi-level marketing (MLM) company AdvoCare. The settlement, in addition to providing $150 million in relief to victims, implements a lifetime ban preventing AdvoCare from ever rejoining the MLM business.

The following statement is attributable to John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League:

Today’s settlement once again highlights the central role that the FTC plays in protecting Americans from illegal pyramid schemes. The FTC has a 45-year track record of winning favorable settlements and court judgements against pyramid schemes. In spite of this, many leading members of the direct selling industry continue to push a discredited bill that would dramatically undermine the Commission’s ability to protect consumers against companies like AdvoCare. 

Under the Orwellian name of the “Anti-Pyramid Promotional Scheme Act,” the bill would create a series of carve outs and safe harbors that would prevent the FTC from protecting consumers and entrepreneurs from all but the most blatant pyramid schemes.

Today’s actions by the FTC demonstrate the need for  continued  consumer protection under its existing authority. NCL opposes pyramid scheme legalization bills like the Anti-Pyramid Promotional Scheme Act, which is even now being peddled by industry lobbyists. We hope this bill will once again be stopped from gaining momentum by members of Congress.

###

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.

DOT inaction leaves kids at risk, NCL tells Congress

/in , , , , , , , /by

September 26, 2019

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, today called on the House Aviation Subcommittee to compel the Department of Transportation (DOT) to follow through on its Congressionally-mandated passenger protection rulemakings.

The Federal Bureau of Investigation recently warned that in-flight sexual assaults have increased by 66 percent and that children as young as 8 have been victims of such crimes in the air. New data uncovered by Consumer Reports found that children as young as two years old and kids who have autism or who suffer from seizures have been separated from their parents on airplanes. Airlines have pressured parents to pay expensive seat reservation fees or buy priority board passes so that they can be sure to sit with their small children. Incredibly, the DOT earlier this year decided that creating a consumer education website would be sufficient to fulfill Congress’ intent that it act to ensure that families can sit with their young children.

“How many children will have to be assaulted on aircraft before the DOT acts?” asked John Breyault, NCL’s vice president of public policy, telecommunications and fraud at a House Aviation Subcommittee hearing today. “The DOT’s inaction on this issue has put children at greater risk. Congress should demand answers from the DOT on the process it used to determine that it should do nothing substantive on this important children’s safety issue and mandate that the agency follow through on Congress’ clear intent.”

Read Breyault’s full testimony here.

The consumer group also highlighted the Federal Aviation Administration’s (FAA) inaction on setting minimum seat size standards despite a looming deadline to do so. The FAA has actively. The FAA is required to issue regulations no later than October 2019, yet consumer groups have seen no indication that the agency is prepared to initiate such a rulemaking. Instead, the FAA has actively resisted judicial efforts by consumer advocates pressing it to take action on the important safety issue.

“Congress must not allow the FAA to simply adopt whatever inhumane seat size standard the airline industry favors,” said Breyault.

Breyault also testified about the impact of a lack of action by the DOT on Congressional mandates related to fee refunds, denied boarding (“bumping”), and the availability of fare, fee, and schedule data.

“The DOT’s actions and inactions on important rulemakings paint a picture of an agency that places consumer protection and consumer safety at the bottom of its list of priorities,” said Breyault. “It is imperative that Congress act to ensure that its mandates are not unduly delayed, or worse, ignored completely.”

###

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.