August 1, 2013

Contact: Ben Klein, NCL Communications, (202) 835-3323, benk@nclnet.org

Washington, DC–The National Consumers League expresses strong opposition to a bill the House will consider shortly that we believe will undermine critically important consumer protections. The so-called “Regulations from the Executive in Need of Scrutiny Act (the REINS Act),” “H.R. 367” is an ill-conceived measure that would undercut the ability of federal agencies to protect consumers from unsafe food, predatory financial products and schemes, and dangerous consumer products. The federal rulemaking process is already lengthy and difficult and this bill would only make it even more time-consuming, expensive, and burdensome for federal agencies to propose consumer protection measures. We believe the end result will be harm to American consumers.

The REINS Act requires that any agency that issues a rule with an economic impact of $100 million or more obtain approval from both houses of Congress of the entire rule without changes, within 70 legislative days of the rule’s being received by Congress. If both chambers do not approve the rule within this time frame, it cannot take effect and is tabled until the following congressional session.

This legislation affects all major rules, even the vast majority that are not controversial. With few exceptions, if Congress fails to act in the allotted time, the rule could not be brought up again until the next Congress and would not be implemented. This hurdle would be virtually impossible for important consumer protection rules to overcome.  The bill strips away the authority of federal agencies that Congress created to develop expertise on how to protect American consumers from dangerous products, tainted food and predatory financial products and services. Most agencies will simply give up trying to protect consumers. If an agency were to persist in its efforts, it would face the prospect of squandering enormous resources to research, write and evaluate an important consumer protection rule, only to be stymied by well-funded special interests able to bottle up the proposed rule in a single house of Congress over a short period of time.

In the Dodd-Frank Act, the Consumer Product Safety Improvement Act, and the Food Safety Modernization Act, for example, Congress delegated rulemaking authority to regulatory agencies precisely because that is the purpose and function of these agencies. Congress has a critical role to play in holding hearings and enacting legislation to address national problems. The regulatory agencies have the expertise to then craft and adopt rules in the highly technical areas governed by each bill. If Congress were to now reverse course and put itself into the role of approving all new rules, the result would be regulatory gridlock at great cost to the health and well being of our citizens.

The REINS Act would add a significant impediment to a regulatory process that already is fraught with delays in the implementation of important consumer protections. Further, this bill would give a majority of members of one chamber of Congress the ability to prevent any consumer protection from becoming law even if the rule is not controversial, is supported by the public and is necessary to protect American consumers. This bill hijacks the process for protecting the health and safety of all Americans and must be stopped.  We urge members of the House of Representatives to oppose this unfortunate and ill-conceived legislation.

If adopted, the REINS Acts would waste federal resources, minimize the ability of federal agencies to do their jobs to protect the public and ultimately harm American consumers. We strongly urge you to oppose this bill.

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About the National Consumers League

July 31, 2013

Contact: Ben Klein, NCL Communications, (202) 835-3323, benk@nclnet.org

Washington, DC – The National Consumers League commends the United States Senate for its votes to confirm five nominees to the National Labor Relations Board (NLRB), ensuring its ability to protect American workers with a fully functioning Board for the first time in a decade. The NLRB is an independent federal agency whose board members are appointed by the President.

The new NLRB Board members are: Mark Pearce (current Chairmen), Kent Hirozawa, Nancy Schiffer, Harry Johnson, and Philip Miscimarra.

The following statement may be attributed to NCL Executive Director Sally Greenberg:

The role of the NLRB is to deliver to both private and union employees the right to bargain for a better work life, as granted by the National Labor Relations Act. The NLRB plays a vital role in the safeguarding of employees’ rights to organize and promoting civil and efficient union-management relations and collective bargaining.

For years, a politicized and understaffed NLRB has been on the brink of becoming inoperable and unable to render any decisions. Without the Senate confirmation of members, the cop on the beat would have been forced to abandon its post this August. We are pleased that the Senate was able to come to this overdue action, ending questions of legitimacy for the Board and ensuring its ability to protect workers and employers.

In the current era, in which workers from all sectors have been under attack, protections like those theoretically provided by the NLRA are more critical than ever. Conservative opposition determined to prevent the NLRB from being fully functional and to undermine the federal laws in place to protect workers has finally been overcome by a series of political moves, including the President’s recess appointments and, finally, this Senate confirmation vote. We are pleased at this bipartisan vote, a step forward for the American worker; and we hope it’s a sign of better things to come.

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About the National Consumers League

July 18, 2013

Contact: Ben Klein, NCL Communications, (202) 835-3323, benk@nclnet.org

Washington, DC – The National Consumers League, the nations pioneering consumer and worker advocacy organization with deep roots in the labor history of this country, praise the Senate’s confirmation of Tom Perez as Secretary of the U.S. Department of Labor (DOL). Perez has spent many years advocating for America’s working families. 

As Secretary of Labor, Perez will serve the critically important role of overseeing the health and safety of workers through OSHA, encouraging cooperation between unions and management, promoting higher pay for the nation’s low-wage workers, and ensuring sufficient inspectors to monitor child labor practices. NCL recognizes the importance of having a strong presence at the head of the DOL. Previous labor secretaries, Robert Reich and Hilda Solis, were awarded NCL’s top honor, the Trumpeter Award. We fully expect that Perez will continue his work to protect workers’ rights and strive for greater opportunity in the workplace.

“We are very pleased that Tom Perez has been confirmed as head of the DOL,” said Sally Greenberg, NCL Executive Director. “Workers around this country can sleep better at night knowing that the Secretary of Labor is in their corner. We look forward to working closely with Mr. Perez to address protecting low-wage workers against wage theft abuses and preventing the exploitation of child labor.”

NCL commends the president for this distinguished appointment and extends our congratulations to Secretary Perez.

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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.

July 17, 2013

Contact: Ben Klein, NCL Communications, benk@nclnet.org, (202) 835-3323

Washington, DC—The National Consumers League welcomed the U.S. Senate’s vote to confirm Richard Cordray as Director of the Consumer Financial Protection Bureau. “The Senate acted to protect the interests of millions of American consumers by voting 66-34 in favor of Richard Cordray’s confirmation to Director of the CFPB. This vote of support is long overdue. Cordray is an unusually talented and committed public servant who can now lead the charge at the Bureau in protecting the financial interests of consumers and do so with full backing of Congress behind him.”

NCL also praised Senate Majority Leader Harry Reid and other senate leadership for overcoming partisan obstacles blocking the Cordray confirmation. “Senator Reid deserves enormous credit for strategically moving the Cordray nomination to a successful vote. Consumers owe him a debt of gratitude.”

CFPB regulates financial services and products in the US. Its work includes policing tricks and traps too often found when consumers interact and sign contracts with financial institutions, including debt collection, banking, credit repair, payday lending, and student loans. 

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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.

July 16, 2013

Contact: Ben Klein, NCL Communications, benk@nclnet.org, (202) 835-3323 

Washington, DC—Today the nation’s pioneering consumer and worker advocacy group expressed its disappointment in a toothless agreement signed by 17 American retailers on July 10. The so-called “ Worker Safety Initiative” purports to improve working conditions in Bangladesh. In the aftermath of the Rana Plaza building collapse, which took 1,129 Bangladeshi workers’ lives in April, companies around the world have been under pressure to improve factory conditions. In May, nearly 70 of them—almost all European—signed the Accord on Building and Fire Safety in Bangladesh, a legally binding agreement with enforcement power absent in its new, American counterpart. America’s biggest retailers—including Walmart, Gap, Target, and Macy’s—refused to sign the European agreement.

“While the National Consumers League is pleased that American companies have taken action to address the often abysmal working conditions in Bangladesh, this initiative requires close examination,” said NCL Executive Director Sally Greenberg. “NCL and other worker’s rights and labor rights groups believe it lacks the enforcement and mandatory procedures found in the accord signed by European companies.”

Under the American plan, participating companies would contribute money towards factory improvements, but the factory owners are responsible for allocating the money and coordinating those improvements. The American companies were unwilling to sign the European Accord because, under it, they could have been subject to unwanted liability. The American agreement is not legally binding, and companies can opt out of the alliance at any point.

In the immediate aftermath of the Rana Plaza building collapse, NCL launched the “10 cents” campaign asking consumers to take a pledge that they would be willing to invest 10 additional cents per garment to implement factory safety measures. The campaign raised awareness among consumers about the minimal investment required to improve the lives of millions of low-wage workers around the world. One dime more per item could help ensure that all factories meet basic safety standards.

“The American plan is a ‘Get out of jail free’ card for these companies, and it doesn’t hold their feet to the fire,” said Greenberg. “If, as Walmart, Gap, and others contend, the European and American plans are nearly identical, then why did they feel the need to create a separate agreement? As knowledgeable and socially conscious consumers, Americans must make sure these companies follow through on their promise to protect workers throughout their supply chain.”

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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.