NCL warns: DOGE’s FTC infiltration puts consumer privacy at risk

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829
Washington, DC – The National Consumers League (NCL) is outraged by the recent actions of Elon Musk’s “Department of Government Efficiency” (DOGE), which has reportedly infiltrated the Federal Trade Commission (FTC). These actions pose a direct and immediate threat to consumers and parents nationwide. By interfering with the FTC’s ability to protect the public—especially children’s data—from harmful privacy violations, fraud, and anti-competitive practices, DOGE has crossed the line.
“The infiltration of the FTC by DOGE, an entity driven by the interests of a few powerful billionaires, is a dangerous step toward dismantling vital consumer protections and furthering the corporate capture of government agencies,” said NCL VP of Public Policy, Telecommunications, and Fraud, John Breyault. “The public’s safety and privacy are already under constant threat from corporate surveillance, and DOGE’s actions simply give even more power to those who prioritize profit over people. Consumers stand to lose the most from DOGE’s interference, and parents should be alarmed, especially since the FTC plays a critical role in safeguarding children’s digital privacy.”
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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

U.S. House vote exposes more families to fraud  

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

Washington, DC – The National Consumers League (NCL) is outraged by today’s partisan vote by the U.S. House of Representatives to repeal the Consumer Financial Protection Bureau’s (CFPB) Larger Participants Rule. The vote approving S.J. Res 28 solidifies a gaping regulatory loophole that will allow Big Tech payment apps like PayPal, Venmo, and CashApp to evade accountability for their use by criminals to defraud millions of Americans.  

“Peer-to-peer payment app operators know that their platforms are being used by criminals to enable hundreds of millions, if not billions, of dollars in fraud against American families,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “Instead of giving the CFPB the ability to crack down on this fraud, Elon Musk and his allies Congress have instead given a green light to scammers to raid the life savings of vulnerable Americans.”  

The CFPB’s Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications regulation (Larger Participant Rule) last year leveled the playing field between banks and Big Tech companies by establishing much-needed CFPB oversight over operators of digital wallets and payment apps. Should S.J. Res 28 become law, the operators of these apps will also have free rein to collect vast quantities of data about individual’s transactions with few, if any guardrails.   

NCL similarly criticized the House’s vote to overturn the CFPB’s overdraft fee rule (S.J. Res 18). The rule closed an outdated loophole that allows major banks to generate billions from excessive overdraft fees. Overdraft fees generate $5 billion in junk fee profits each year,  costing households hit with such fees approximately $225 annually. The CFPB’s overdraft fee rule lowered overdraft fees from $35 to $5 per overdraft.  

“The overdraft fee rule sent a clear message that banks should work for everyday Americans, not nickel-and-dime them with outrageous fees,” Breyault continued. “Instead of protecting this commonsense consumer protection, Republicans in Congress chose to stand with big banks and to let them continue padding their bottom lines with billions in junk fees.”  

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About the National Consumers League (NCL)       

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

Statement on the death of President Jimmy Carter from NCL CEO Sally Greenberg

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January 1, 2025

The National Consumers League (NCL) extends condolences to the family, friends, and community of former President Jimmy Carter upon his death this week. In addition to being an honest and effective Commander in Chief and humanitarian who expanded access to housing for low-income families through his work on Habitat for Humanity, President Carter should also be remembered as a great consumer champion.

During his presidency, Mr. Carter championed consumer protection in a variety of ways. He appointed labor and consumer champion Esther Peterson, who also served as president of the National Consumers League, to head the White Office of Consumer Affairs. Like President Lyndon Johnson (LBJ)  before him, who first named Peterson to the post of Special Adviser to the President Jimmy Carter understood that consumer rights permeate citizens’ experiences with companies and with government.

Unlike his processor, Mr. Carter gave Mrs. Peterson a staff and access to him personally in the Oval Office. As such, Mr. Carter elevated consumer protection far beyond LBJ’s decree. Along with re-appointing Esther Peterson, Carter issued a historic decree in April of 1978, “Memorandum from the President on Consumer Affairs,” the first of its kind, directing the heads of every government agency to take a series of steps to prioritize consumer protection. 

Notably, Mr. Carter stated that “the Agency for Consumer Advocacy is mainly designed for participation in very large administrative proceedings; it is only one of a number of steps which will better protect the consumer.”

On a personal note, I had the honor of meeting President Carter in 1978, when he appointed my aunt, Geri Joseph, to serve as Ambassador to the Netherlands. I was lucky to be able to attend her swearing-in ceremony in the Oval Office. I found him to be kind and charming; despite a number of pressing matters, he took the time to introduce himself to every member of our family who was gathered for the occasion. 

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NCL issues statement on New York Times health article on Alzheimer’s trials

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October 29, 2024

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

WASHINGTON, DC – NCL’s Health Director, Robin Strongin, released the following statement regarding Walt Bogdanich and Carson Kessler’s October 23 article, Health Section, New York Times, “What Drugmakers Did Not Tell Volunteers in Alzheimer’s Trials,” which reported that pharmaceutical companies withheld genetic testing information from volunteers in Alzheimer’s trials putting them at risk for brain bleeds.

“Medical research is complex and by its very nature involves risk. For a devastating disease like Alzheimer’s, consumers may be willing to take more of a risk in the hope of finding a treatment or a cure – if not for themselves, then for future generations.

We appreciate that researchers don’t know the full risk of a drug until tested, we are aware that genetic information can lead to certain types of discrimination, and we also understand that standards of care to disclose and not disclose information depend on multi-faceted decision points. Consumers have an absolute right to know what risks they face, including what information may be withheld, so they can make an informed decision before participating in a clinical trial—including when to opt out.

The scientific advances we witness today bring hope. Along with that hope comes the responsibility to be vigilant and assess and reassess what these advances mean for those willing to participate in clinical trials. It is imperative that we balance the integrity of clinical trials with the safety and protection of research participants.

NCL is increasingly concerned about the outsized role private equity plays in the sacred trust relationship between the research subject and the researcher. Institutional Review Boards must strive to regularly revisit their practices to reassure consumers that they, and the institutions in which research is conducted, are ethical and safe and provide all the information necessary to make truly informed decisions. It is never acceptable to put profits before safety. Clinical trials require numerous parties to come together and tackle the most vexing research challenges.

NCL calls upon all of those involved, including journalists, to provide balanced information that genuinely educate, and not terrify, the public. The last thing we want to happen is to further erode the public’s trust in science. We must all work together to safely, and ethically, find cures to dreaded diseases.”

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About the National Consumers League (NCL) 

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

NCL welcomes FTC’s click-to-cancel rule

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October 16, 2024

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

WASHINGTON, DC – Today, the Federal Trade Commission (FTC) announced its final rule requiring the cancellation of subscriptions to be as easy as signing up. Slated to go into effect next year, subscription-based businesses will have to offer a simple cancellation mechanism and will be prohibited from lying about the goods and services they offer.

The following statement is attributable to NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault:

“Rather than trapping consumers with confusing cancellation processes, sellers should earn our dollars by competing to offer better products. The FTC is sticking up for everyday Americans and making clear that businesses cannot rely on deception to make a profit. NCL has long supported the Commission’s work to make subscriptions easier to manage for consumers, this rule will make those efforts even easier.”

Additional reading:

  • Public comments of NCL and five other organizations supporting the click-to-cancel rule, filed in response to the Commission’s 2023 notice of proposed rulemaking
  • Letter from NCL, Consumer Federation of America, and the National Consumer Law Center supporting the rule in a 2024 administrative law proceeding
  • Public comments of NCL on the harms of current negative-option business practices, filed in response to the Commission’s 2019 advanced notice of proposed rulemaking

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About the National Consumers League (NCL) 

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

Organizations urge Biden-Harris Administration to strengthen child labor protections amid rising workplace injuries and violations

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October 16, 2024

Media contact: Rachael Klarman, Executive Director, rachael.klarman@governingforimpact.org

WASHINGTON, DC — Today, Governing for Impact (GFI), the Economic Policy Institute (EPI), and the Child Labor Coalition (CLC) released a set of executive action proposals the Biden-Harris administration can take to address the alarming rise in child labor violations and workplace injuries in the United States. The proposals, which are grounded in the Department of Labor’s (DOL) existing authority, include preventing children from working in hazardous occupations like milling operations, prohibiting children from handling toxic chemicals, and banning overnight shifts for kids.

The executive action proposals aim to fill a pressing gap in child labor enforcement. Since 2021, more than thirty states have taken steps to weaken child labor laws, including in Arkansas, Iowa, New Jersey, and Michigan. Extreme, industry-aligned groups like those behind Project 2025 have also proposed weakening federal regulations to let more young people work dangerous jobs, claiming that “young adults show an interest in inherently dangerous jobs.”

“Many assume that child labor is a thing of the past, and that there must already be a robust regulatory system in place to ensure that children are safe,” said Reed Shaw, Policy Counsel at GFI. “But the fact is, more and more children are getting injured every year due to unsafe working conditions. As we show in our analysis, the Department of Labor has the authority to fill the gap.”

Nearly a century has passed since Congress enacted the Fair Labor Standards Act (FLSA), which introduced critical protections for child workers in America. Despite this, too many children are still exploited. Injury rates for workers under 18 almost doubled between 2011 and 2020, particularly in agriculture where the risks are highest and the regulations are the weakest.

“At a time when child labor violations are on the rise and many states are simultaneously attempting to weaken child labor laws, there is an urgent need for the U.S. Department of Labor to use its authority to raise federal minimum standards to protect all children who work—no matter what state they live in,” said Nina Mast, Policy and Economic Analyst on EPI’s State Policy and Research team. 

“This release of executive action proposals stands as a call-to-action that more must be done to protect children from occupational dangers,” said Reid Maki, director of child labor advocacy for the National Consumers League and coordinator of the CLC. “Recently, we’ve witnessed wildly expanding hazardous child labor in the U.S. with kids working in meat-packing plants and auto-supply factories. Many of them work throughout the night in grave-yard shifts that leave them with no time to sleep before they attend school completely exhausted. We can and must do more to protect our children.”

To develop regulatory recommendations for the Biden-Harris administration, GFI, EPI, and CLC reviewed the DOL’s existing legal authority and identified steps to better protect child workers. Findings and recommended actions were sent to DOL and outlined in a new report, Protecting Children from Dangerous Work. The executive action proposals include:

  1. Making nonagricultural occupations safer: Expanding the list of nonagricultural occupations deemed too hazardous for workers under 18, such as jobs in security services and milling operations.
  2. Making agricultural occupations safer: Increasing protections for child agricultural workers under 16, including prohibiting children from handling toxic chemicals or operating dangerous machinery.
  3. Regulating working hours: Implementing restrictions on working hours, including a ban on overnight shifts for minors and mandatory rest breaks.

Young workers are being harmed every day. This report urges the Biden administration and the DOL to immediately update and enforce regulations and protect children from harm.

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About Governing for Impact

Governing for Impact (GFI) is a regulatory policy organization dedicated to ensuring the federal government works for working Americans, not corporate lobbyists. The policies we design and the legal insights we develop help increase opportunity for those not historically represented in regulatory policy implementation work: working people. For additional information about GFI, please visit https://governingforimpact.org/.

About Economic Policy Institute

The Economic Policy Institute (EPI) is a nonprofit, nonpartisan think tank working for the last 30 years to counter rising inequality, low wages and weak benefits for working people, slower economic growth, unacceptable employment conditions, and a widening racial wage gap. For additional information about EPI, please visit https://www.epi.org/.

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.

About the Child Labor Coalition

The Child Labor Coalition (CLC) is chaired and coordinated by the National Consumers League and strives to reduce exploitative child labor in the United States and abroad, bringing together over 35 groups to create a powerful voice that promotes public education, research, and advocacy to reduce the most harmful forms of child labor, as well as end child slavery, child trafficking, and child marriage. For additional information about CLC, please visit https://stopchildlabor.org/.

Harris Poll sounds alarm on financial literacy gap

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September 24, 2024

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

WASHINGTON, DC – The National Consumers League (NCL), founder of LifeSmarts, one of the premier youth consumer education programs in the country, is sounding the alarm on the urgent need for better financial education. Recent findings of an independent survey by The Harris Poll, recently commissioned by FICO, revealed a starling reality: over 74% of Americans think their current financial situation would improve if they had access to more personal finance resources and education, and 79% percent of Americans believe high schools should offer financial education. See the FICO study here.

“We are deeply concerned that one out of four younger Americans do not consider themselves to be financially literate,” says Sally Greenberg, NCL’s CEO. “We can guarantee any student who experiences the LifeSmarts curriculum and competes at our state and national championships will be better equipped to navigate financial decision-making throughout their adulthood.”

NCL has seen firsthand how concerns about financial stability can be addressed directly through creative programming offered through schools and community organizations, and the private and public sectors can do more to address the financial literacy gap. We literally can’t afford, as a nation, to wait until children become adults to start teaching them how to manage their finances,” says Greenberg. “They need to build their knowledge base, which will give them the power to control and take charge of the many financial decisions they will be called upon to make in adulthood. Our LifeSmarts stands ready to help in any way we can.”

NCL commends FICO for conducting this important research and for its leadership on financial literacy via its Score a Better Future and Score a Better Future Fundamentals program.  Key components of the Fundamentals curriculum have been incorporated into the LifeSmarts program, which serves more than 125,000 students and 3,000 educators around the country each year.

This October, NCL’s LifeSmarts curriculum will focus on credit education, which is one of the most  critical components of financial literacy. The new research finds that while nearly two-thirds of Gen Z adults (61%) believe their credit score is a fair representation of their overall financial health, fewer than half (46%) of young adults have checked their credit score in the past year. Nearly one in four (24%) are not sure where to find this information. A similar percentage (28%) say they lack the tools or knowledge to improve their credit score.

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 About the National Consumers League (NCL) 

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

About LifeSmarts
The National Consumers League’s (NCL) youth consumer education program, LifeSmarts, was established in 1993 and today serves more than 125,000 middle and high school students and 3,000 educators across the country. Through LifeSmarts, students learn about real-life consumer issues in five topic areas: Health & Safety, Consumer Rights & Responsibilities, Personal Finance, Technology & Workforce Preparation, and the Environment. They compete to win prizes and scholarships at the Varsity National LifeSmarts Championships in April each year and the Junior Varsity National LifeSmarts Championship in May. NCL LifeSmarts is active in all 50 states and the District of Columbia.

About the FICO survey

This survey was conducted online within the United States by The Harris Poll on behalf of FICO from August 27-29, 2024, among 2,092 U.S. adults ages 18 and older. Gen Z respondents were 18-27 years old; Millennials were 28-43 years old; Gen Xers were 44-59 years old; and Baby Boomers were 60-78 years old. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact press@fico.com.

 

National Consumers League statement on DOT action in Alaska-Hawaiian merger review

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September 17, 2024

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

WASHINGTON, DC – The National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, today applauded the United States Department of Transportation’s (DOT) historic agreement with Alaska Airlines and Hawaiian Airlines to place enforceable public interest conditions on the merger. NCL has long called for DOT to exercise its authority more forcefully to police airline industry mergers.   

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

 “After decades of unchecked mergers, four airlines together control over two-thirds of U.S. domestic air travel. Today’s action puts the airline industry on notice that under the Biden-Harris Administration, its days of scrutiny-free consolidation are over. Consumer protection agencies like the Federal Communications Commission have long used their merger review authority to place pro-consumer and pro-competition conditions on mergers. We welcome DOT taking steps to safeguard the frequent flyer miles that Alaska’s and Hawaiian’s rewards program members have built up. And we applaud DOT for ensuring that this merger does not endanger the critical air service that rural communities in Alaska and Hawaii depend on. We look forward to DOT continuing to use all the tools in its regulatory toolbox to protect and promote competition and fairness in the air travel marketplace.” 

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 About the National Consumers League (NCL) 

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

NCL among one of many organizations expressing concern for the growing catalytic converter theft problem

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August 29, 2024

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

WASHINGTON, DC – Today, the National Consumers League (NCL), along with many other organizations representing a cross-section of industry and interested stakeholders, signed a letter to the chairs of both the Committee on Armed Services and the Committee on Commerce, Science, and Transportation expressing their strong support of an amendment to combat the growing national problem of catalytic converter theft. Catalytic converters are being stolen at increasingly high rates because they contain valuable metals, such as rhodium, platinum, and palladium.

NCL’s CEO Sally Greenberg recently shared her own catalytic converter theft experience in this blog post.

The letter to the committees can be found here.

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 About the National Consumers League (NCL) 

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

Food fight: NCL lauds VP Harris’s push for fair grocery pricing amidst corporate greed

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August 23, 2024

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

WASHINGTON, DC – The National Consumers League (NCL), with a 125-year history of advocating for transparency and fairness in the food marketplace, praises Vice President Kamala Harris’s focus on price gouging within the grocery industry. While critics have argued that banning price gouging is a campaign ploy and economic gibberish, NCL has long witnessed the numerous ways corporations can deceive and overcharge consumers. Harris’s plan tackles the abuses within the grocery industry head-on.

For too long, American consumers have been exploited by deceptive corporate practices that erode purchasing power and trust. Without guidelines and accountability, these practices will continue unchecked. Harris’s call to action is a shot across the bow, a powerful reminder to corporations that the Biden-Harris (and potentially a Harris-Walz) Administration is committed to addressing kitchen-table issues, like rising grocery costs.

This is not a new issue, nor is it the only issue leading to higher consumer prices at the supermarket check-out line. Price gouging, particularly during emergencies or disasters, is already regulated in thirty-seven states, with enforcement entrusted to state attorneys general. Harris’s plan would expand these protections, putting the Federal Trade Commission in charge of preventing unfair pricing tactics.

In February 2024, U.S. Representative Jan Schakowsky and U.S. Senator Elizabeth Warren reintroduced the Price Gouging Prevention Act of 2024 to combat corporate price gouging citing American families’ financial struggles amid rising grocery costs and corporate profits.  Expanding the FTC’s authority, as outlined in the Price Gouging Prevention Act, would not be considered price fixing. Rather, the proposed legislation empowers regulatory agencies to enforce fair pricing practices, protect consumers from unjustified price hikes, and promote a competitive and transparent market without interfering with lawful price setting by businesses.

Equally egregious to price gouging is the practice of shrinkflation, where companies reduce product sizes or contents while maintaining or increasing prices. The Shrinkflation Prevention Act, introduced by Senator Bob Casey and supported by the NCL, is a crucial measure to protect consumers from this form of corporate exploitation. Surveys confirm that 73% of consumers are concerned about shrinkflation, and 79% feel cheated.

Another betrayal of consumers is the lack of, or hidden, unit pricing. Unit pricing is a cornerstone of consumer purchasing, providing the cost per pound, quart, liter, or another unit of weight or volume. Unit pricing is a vital tool for budget-conscious consumers. Currently, only nineteen states and the District of Columbia have enacted unit pricing laws or regulations, according to the National Institute of Standards and Technology, leaving consumers in other states without the essential information needed to make informed purchasing decisions.

A lack of competition within the grocery industry also negatively impacts consumers. The recent FTC action to block Kroger Company’s $24.6 billion acquisition of Albertsons Companies, Inc. illustrates the negative impact of reduced competition.  The merger of these two grocery giants, who together own 5,000 stores across forty-eight states, would reduce competition, drive up prices, lower food quality, and degrade customer service. NCL believes that competition benefits consumers, ensuring they receive quality products at fair prices.

Corporate greed almost certainly plays a role in rising grocery prices. One analysis found that over half of the increase (53.9%) in prices in the nonfinancial corporate sector (i.e., companies that produce goods and services) during the height of the COVID pandemic – could be attributed to bigger profit margins. Since the pandemic, mark-ups have remained “extremely elevated relative to historic norms.” Other analyses have found similar results, with corporate profits driving 53% of inflation.

Weekly grocery bills are higher than before COVID-19, and while many factors contribute to this—including supply chain disruptions, pandemic recovery, and interest rates—the bottom line is that consumers are paying more and getting less. The U.S. Department of Agriculture reports that Americans now spend about 11% of their income on food, the highest level in 30 years. Although food prices are expected to rise by 1% this year, consumers are still reeling from last year’s 5% increase.

More work needs to be done at the federal level to understand why inflation rates and the rise in food prices are out of sync. However, one thing is clear: empowering the FTC and state attorneys general to hold companies accountable is a step in the right direction.

The notion that the market will self-correct is not just naive—it is dangerous. Without strong regulatory action, companies will continue to prioritize profits over people, especially in essential sectors like groceries, where families cannot afford price hikes or size reductions. NCL lauds Vice President Harris for taking a stand against corporate greed.

It’s time to put an end to these deceptive practices and ensure that every American has access to affordable, transparent, and fair food pricing. Vice President Harris’s plan is a bold and necessary step toward achieving that goal.

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 About the National Consumers League (NCL) 

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