Posts

NCL supports click-to-cancel legislation in Maryland Senate

/in , /by

January 21, 2025

Media Contact: Lisa McDonald, Vice President of Communications, (202)- 207-2829

Washington, DC – Today, NCL submitted testimony in support of SB49 before a Thursday hearing in the Maryland Senate Finance Committee.

 

January 21, 2025

The Honorable Pamela Beidle, Chair
Senate Finance Committee
Maryland General Assembly
3 East Miller Senate Office Building
Annapolis, MD 21401

RE: NCL support for SB 49 (Consumer Protection-Automatic Renewals)

Dear Chair Beidle,

On behalf of the National Consumers League (NCL), the nation’s oldest consumer advocacy organization, I write to express our strong support for SB 49 (cross-filed with HB 107), a bill introduced by Senator Gile that would promote fairness in the marketplace for automatically renewing subscription contracts.^1 As an organization that has long championed consumer rights and the protection of vulnerable populations from unfair, abusive, and deceptive trade practices, we are pleased to see Maryland considering such important legislation. We urge the committee to favorably report the measure with amendments to strengthen the legislation even further.

The average consumer pays two-and-a-half times what they originally estimated on monthly subscriptions.^2 When an individual attempts to cancel an automatic renewal, they often encounter burdensome cancellation processes. One survey found that more than half of respondents
reported an average of three months to cancel unwanted recurring payments.^3 That same study discovered that 71% of individuals lost more than $600 a year in unwanted payments.

NCL has been an active supporter of auto-renewal protections in other jurisdictions, including at the Council of the District of Columbia^4 and the Federal Trade Commission,^5 where rules set clear guidelines for both the provision and cancellation of automatically renewing subscription contracts. These measures were designed to enhance transparency, prevent deceptive practices, and ensure that consumers are able to easily cancel such subscriptions without unnecessary obstacles or undue financial burdens. We believe that SB 49, which reflects many of these same principles, is a step in the right direction toward safeguarding Maryland consumers from exploitation through automatic renewal clauses that can trap them into paying for services they no longer wish to receive or did not realize they signed up for in the first place.

While the Federal Trade Commission has finalized its click-to-cancel rule to take effect nationwide,^6 the future of this federal regulation is uncertain as a new presidential administration and new majorities in Congress have the means to undo the critical consumer protection. Regardless of the federal regulation’s status, Maryland has the opportunity to enact even stronger protections for its citizens through SB 49.

Compared to the federal rule, Senator Gile’s legislation goes further in protecting Marylanders by requiring sellers to provide an annual notice to consumers enrolled in an autorenewal plan, clearly reminding them of the terms of the plan and the cancellation methods available. Additionally, SB 49 includes safeguards against free trial conversion traps, a provision that is absent in the federal regulation.

There are however a few improvements that the committee should implement to better protect Maryland consumers.

First, require sellers to obtain a separate consent solely for the automatically renewing piece of the product, apart from any other transaction. Consumers too often believe they are purchasing a product without knowing that they are signing up for a subscription. While the clear and conspicuous disclosures proposed in SB 49 will go a long way in reducing this unfair, abusive, and deceptive trade practice, requiring separate consent for the subscription should significantly reduce any remaining confusion.

Second, require sellers to provide a notice to consumers before each automatic and recurring payment. While the annual notice in the bill is commendable, providing the same reminder (including the terms of the plan, the amount to be charged, and the cancellation methods) before each recurring payment—whether they be annually, monthly, or similarly regular basis—would greatly lessen consumer harm.

Third, prohibit sellers from obtaining a consumer’s credit card information to begin a free trial. Too many dishonest businesses enroll consumers in free trial conversion traps, using pre-given credit card information and hidden consent for the conversion to a paid subscription. SB 49’s notice requirement before conversion should dissuade this practice, prohibiting sellers from requiring consumers to provide their credit card information to begin a free trial would eliminate this unfair, abusive, and deceptive practice entirely.

Lastly, remove the deferral to federal regulation in subsection E (lines 20 through 23 on page 5). SB 49 in its current form already includes a number of additional safeguards missing in the federal regulation. Allowing covered entities to escape their obligations under Maryland law as long as they adhere to the lesser requirements in the federal regulations would be unnecessarily self-limiting. The Federal Trade Commission itself included a deferral to the states in its regulation, stating in 16 CFR § 425.7

(a) In general. This part shall not be construed as superseding, altering, or affecting any State statute, regulation, order, or interpretation relating to negative option
requirements, except to the extent it is inconsistent with the provisions of this part, and then only to the extent of the inconsistency.

(b) Greater protection under State law. For purposes of this section, a State statute,
regulation, order, or interpretation is not inconsistent with the provisions of this part if it affords any consumer greater protection than provided under this part.^7

NCL applauds Senator Giles for her leadership on this issue and appreciates the committee’s work to protect Maryland consumers. By enacting SB 49, Maryland would join a growing list of states and localities working to curb the negative effects of automatic renewal schemes and ensure that businesses are held accountable for their marketing and contract practices. NCL supports SB 49 and urges the committee to strengthen the bill even further before favorably
reporting the measure.

Should you or your colleagues have any questions, please do not hesitate to contact me at your convenience.

 

Sincerely,

Eden Iscil
Senior Public Policy Manager
National Consumers League
edeni@nclnet.org

cc: The Honorable Antonio Hayes, Vice Chair, Senate Finance Committee
The Honorable Dawn Gile
The Honorable Andrew Prusk

 

1 “Consumer Protection – Automatic Renewals,” Maryland General Assembly, accessed January 21, 2025. https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/sb0049
2 “Subscription Service Statistics and Costs,” C+R Research, May 18, 2022. https://www.crresearch.com/blog/subscription-service-statistics-and-costs/
3 “Survey from Chase Reveals That Two-Thirds of Consumers Have Forgotten About At Least One Recurring Payment In The Last year,” Chase, April 1, 2021. https://media.chase.com/news/survey-from-chase-reveals
4 “D.C. Law 22-235. Structured Settlements and Automatic Renewal Protections Act of 2018,” Council of the District of Columbia, March 13, 2019. https://code.dccouncil.gov/us/dc/council/laws/22-235
5 “NCL welcomes FTC’s click-to-cancel rule,” National Consumers League, October 17, 2024. https://nclnet.org/ncl-welcomes-ftcs-click-to-cancel-rule/ 
6 “Federal Trade Commission Announces Final ‘Click-to-Cancel’ Rule Making It Easier for Consumers to End Recurring Subscriptions and Memberships,” Federal Trade Commission, October 16, 2024. https://www.ftc.gov/news-events/news/press-releases/2024/10/federal-trade-commission-announces-final-click-cancel-rule-making-it-easier-consumers-end-recurring 
7 “Part 425—Rule Concerning Recurring Subscriptions and Other Negative Option Programs,” Code of Federal Regulations, January 16, 2025. https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-425

 

###

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 mourns death of Jon Cuneo

/in /by

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.

 

###

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”

/in , , /by

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

 

###

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”

/in , , /by

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

###

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.