NCL responds to Senators Crapo, Wyden announcement on needed PBM reforms

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March 14, 2024

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

Washington, DC – The National Consumers League (NCL) today released a statement following Senators Ron Wyden (D-OR) and Mike Crapo (R-ID) recent press conference announcing their push to include bipartisan PBM reforms in the broader funding package.

The following statement is attributable to NCL Chief Executive Officer, Sally Greenberg:

“For far too long now, PBMs have been taking advantage of our drug pricing system, finding ways to increase their profits without delivering value to consumers. Now, after years of investigations, pharmacy closures and high out-of-pocket costs, our leaders are doing something about it. By disconnecting Medicare prescription drug costs from PBM profits, this legislation will address one of the many ways PBMs use the system to their financial advantage. Congress has a huge opportunity to help seniors better afford and access the medications they need. We urge Congress to get this done without delay.”

Learn more about NCL’s work to address the PBM problem 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 nclnet.org.

NCL endorses the Shrinkflation Prevention Act

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March 13, 2024

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

Washington, DC – Today, the National Consumers League sent a letter to the United States Senate urging action on the Shrinkflation Prevention Act. As American consumers struggled with spiking inflation, companies posted steep profits. One analysis found that corporate greed drove over 50% of consumer price increases in the years following the pandemic. One of the methods businesses have used to extract greater profits has been shrinkflation—selling less product at the same price. The Shrinkflation Prevention Act would officially designate this as an unfair or deceptive practice.

“Multiple surveys have found that consumers are unhappy with this practice,” said NCL CEO Sally Greenberg. “Almost four out of five Americans say they feel cheated by shrinkflation. Despite this sentiment, sellers continue to take advantage of the public and participate in this trend.”

The full letter 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 nclnet.org.

NCL applauds Biden Administration actions to minimize unfair charges, protect producers from retaliation

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March 5, 2024

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

Washington, DC – Today, the White House Competition Council announced new actions to lower costs for consumers and promote market health. The Consumer Financial Protection Bureau (CFPB) finalized a rule to save consumers $10 billion a year by capping credit card late fees to an average of $8. The Federal Communications Commission (FCC) is initiating a ban on bulk billing, a practice where landlords or service providers charge all tenants in a building for a particular service—even for residents who do not choose that service. Lastly, the Department of Agriculture (USDA) is implementing protections for farmers and ranchers from retaliatory practices used by the industry’s dominant firms.

The following statement is attributable to NCL Chief Executive Officer Sally Greenberg:

“Under President Biden’s leadership, consumer protection agencies are doing critical work to guard the marketplace against industry misconduct. As more industry sectors have become increasingly consolidated, today’s actions are necessary to ensure that consumers aren’t ripped off and to protect producers from illegal retaliation and discrimination. When businesses concentrate market power and employ unfair practices to maintain that dominance, new legal safeguards and structural reform become necessary to protect the public from further harm. Today’s announcements are an important piece of this effort to maintain healthy marketplaces that benefit consumers and workers.”

The National Consumers League has worked to protect both consumers and workers from consolidated corporate power since 1899. From advocating against banking fees that disproportionately affect marginalized communities to fighting for transparency in telecom billing, NCL continues to provide a voice for the public interest.

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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 nclnet.org.

NCL expresses support for ending the subminimum wage for tipped workers in the state of Connecticut

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March 4, 2024

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

Washington, DC – NCL CEO Sally Greenberg recently testified to the members of the Committee on Labor and Public Employees of the Connecticut General Assembly urging the inclusion of ending the subminimum wage for tipped workers in SB 221. In Connecticut, the subminimum wage for tipped workers is currently at $6.38 per hour.

The restaurant industry in Connecticut “needs to stop basing its business strategy on a 150-year-old system that is the direct legacy of slavery and join the modern working world,” says Greenberg. “It is time to raise the wage and ensure Connecticut’s restaurant industry does not get left behind.”

Greenberg cited One Fair Wage’s recent report claiming the current restaurant industry isn’t facing a worker shortage but rather a wage shortage. One Fair Wage recently published a fact sheet showing a comparative analysis of small business restaurants in Connecticut vs in California.

Greenberg’s full testimony 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 nclnet.org.

NCL celebrates 30 years of LifeSmarts, recognizes its lifelong partners at annual Spring Soiree

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February 28, 2024

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

Washington, DC – NCL celebrates the 30th anniversary of its LifeSmarts program at the National Press Club in Downtown Washington, DC, on Wednesday, February 28. LifeSmarts is the organization’s national consumer literacy program that gives young people in middle and high school the necessary skills to become successful adults, preparing them to be informed consumers and workers.

“We want this evening to celebrate 30 years of this incredible program and honor our partnership with four wonderful organizations that have made LifeSmarts the extraordinary program that it is today,” said NCL CEO Sally Greenberg.

Receiving NCL’s LifeSmarts Lifetime Partnership Award were Steven Mitchell, Executive Director and CEO of Business Professionals of America (BPA); Alex Graham, President and CEO of Future Business Leaders of America (FBLA); Sandy Spavone, Executive Director of Family, Career and Community Leaders of America (FCCLA); and Chelle Travis, Executive Director of SkillsUSA.

The program also included LifeSmarts Advisory Board member Molly Alawode of Kenvue, a longtime partner of LifeSmarts, and Andrew Harris, Director of Public Policy at Amazon, which has also been a major supporter of LifeSmarts.

“I want to congratulate all our LifeSmarts Lifetime Partnership Award honorees,” said Lisa Hertzberg, LifeSmarts program director. “We are honored to work with each of them and we appreciate the opportunities to have partnered with them and make a difference in the lives of so many youths.”

For more information on this year’s event, visit the 2024 Spring Soiree.

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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 nclnet.org.

A coalition of consumer, health groups – including NCL – call for nutrition, ingredient, and allergen labeling on alcoholic beverages

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February 27, 2024

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

Washington, DC – A coalition of consumer and health groups is urging Treasury Secretary Janet Yellen to ensure that the agency responsible for regulating most alcoholic beverages in the U.S. – the Alcohol and Tobacco Tax and Trade Bureau (TTB) – keeps its commitment to require standardized alcohol labeling on all beer, wine, and distilled spirits products by initiating three promised rulemakings on nutrition, ingredients, and allergen labeling on an accelerated basis.

The appeal comes in the form of a February 27 letter from five leading public interest groups as TTB begins a series of “listening sessions” on labeling and advertising of alcoholic beverages on February 28. Raising concerns that the listening sessions are no more than a delay tactic to maintain the status quo and “slow walk deliberations for months,” the organizations – the Asthma and Allergy Foundation of America (AAFA), Center for Science in the Public Interest (CSPI), Consumer Federation of America (CFA), Food Allergy Research and Education (FARE), and National Consumers League (NCL) – called for TTB to publish the rulemakings by June 2024.

The Treasury Department promised that TTB would issue mandatory alcohol labeling rules in a November 17, 2022 letter in response to a lawsuit filed by CSPI, NCL, and CFA. The Department stated its intention to publish the three rulemakings before the end of 2023.

“We write … to express our dismay and serious concern that TTB has backtracked from its written undertaking of the November 17, 2022 agreement,” the groups wrote to Secretary Yellen. “TTB has, in effect, enabled recalcitrant companies by delaying indefinitely rulemakings on mandatory alcohol labeling while opting for a voluntary rule under which labeling “Serving Facts” or “Alcohol Facts” and ingredients are optional.”

Focusing on the health consequences of delaying action on alcohol labeling, the letter from advocates to Secretary Yellen describes how better alcohol labeling will benefit the 84 percent of U.S. adults who drink alcoholic beverages – 216 million people – and who currently do not have the facts about the alcohol they are consuming to protect their health and safety. Overconsumption of alcohol is a costly public health problem that has become much worse in recent years, as alcohol-related deaths have risen substantially. Among the key concerns, alcohol is involved in about 30 percent of all traffic crash fatalities in the U.S, is a source of empty calories that contributes to obesity, can impact blood sugar control in people with diabetes, and labeling can be a life-or-death matter for people with food allergies. Additionally, excessive drinking increases the risk of liver disease, hypertension, cardiovascular disease, alcohol use disorders, certain cancers and severe injuries.

“The consensus among public health and nutrition experts and consumers themselves, in favor of mandatory and complete alcohol labeling is overwhelming,” said Thomas Gremillion, Director of Food Policy at the Consumer Federation of America. “By reneging on its promise to initiate rulemakings, TTB continues to deny Americans the same helpful and easily accessible labeling information now required for conventional foods, dietary supplements, and nonprescription drugs.”

The letter to Secretary Yellen also stresses that alcohol manufacturers have the capability to put standardized Serving Facts labels on their products, when required. This is the case for products such as some hard ciders, hard seltzers, and wine coolers that are regulated by the Food and Drug Administration, which requires such products to have the same Nutrition Facts panel and ingredients statements on nonalcoholic beverages, from soft drinks to juices.

“To date, TTB has taken the position that requiring standardized nutrient content labeling on alcoholic beverages is too costly and burdensome for beverage alcohol manufacturers,” said Sally Greenberg, CEO of the National Consumers League. “However, the inconvenient truth for the industry is that some of the very same companies whose products do not include a Serving Facts statement if they are regulated by TTB already put complete alcohol labeling on their hard ciders, hard seltzers, wine coolers, and other FDA regulated wines and beers.”

Highlighting that the time has come for mandatory alcohol labeling, the letter makes clear that the agency’s current voluntary labeling rules are not working. Although the rule gives companies the option of putting “Serving Facts” or “Alcohol Facts” and ingredients information on their products, new research from the Center for Science in the Public Interest finds that most manufacturers have opted out of TTB’s voluntary program. Using TTB’s COLA database to examine the labels for 132 of the nation’s top beer and wine brands, CSPI’s study found that only 11 labels of the 65 beer brands examined (17%) and none of the 67 wine brands included ingredients lists while 18 beers (28%) and no wines used the voluntary “Serving Facts” label, and one additional beer brand carried the voluntary “Alcohol Facts” label. CSPI’s review also showed that even when serving information is included on beer and wine labels, there is no standard format for where and how the disclosures appear, making it hard for consumers to find information easily and compare different brands.

“We have the data that demonstrate that Treasury’s voluntary rule has failed to adequately improve transparency in alcohol labeling,” said Dr. Peter G. Lurie, President of the Center for Science in the Public Interest. “Ensuring that the agency ends this ineffective voluntary regime by issuing mandatory labeling rules necessitates national leadership. This is why we are appealing directly to Secretary Yellen to intercede personally to require the agency to commit to publish all three proposed rules by June 2024.”

The 2022 letter whereby TTB undertook to publish standardized alcohol content, calorie, and allergen labeling by the end of 2023 resulted from a lawsuit filed by Center for Science in the Public Interest, Consumer Federation of America, and the National Consumers League on October 3, 2022. The suit charged TTB with failing to act on a citizen petition, submitted to the Treasury Department in 2003 to mandate alcohol labeling. CSPI, CFA, and NCL filed the petition along with a coalition of 66 other organizations and eight individuals, including four deans of schools of public health.

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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 nclnet.org.

NCL applauds FTC action to stop imminent grocery monopoly 

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February 26, 2024

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

Washington, DC – Today, the Federal Trade Commission (FTC) and bipartisan state attorneys general sued to block the proposed merger between Kroger and Albertsons. The $24.6 billion deal—the largest supermarket merger in U.S. history—would create a near monopoly by consolidating 5,000 stores and 4,000 pharmacies under one corporation. Without FTC action, consumers would see inflated prices and workers would be stuck with anticompetitive compensation.

“Decades of ignoring federal law have allowed industry consolidation to grow unchecked, leaving everyone worse off except for a handful of executives at the top,” said NCL CEO Sally Greenberg. “The FTC is rightfully asserting its authority and putting the interest of consumers and workers first. Monopolists should know that they can no longer take advantage of the American public without facing legal challenges.”

The proposed deal would eliminate competition between Kroger (including Fred Meyer, Fry’s, and Harris Teer) and Albertsons (among its subsidiaries are Haggen, Safeway, and Vons). Last year, a coalition including NCL and 250 national, state, and local organizations urged the FTC to prevent this merger from taking place. Joining the FTC’s lawsuit are bipartisan attorneys general representing Arizona, California, D.C., Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming.

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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 nclnet.org.

PBM reforms needed now in order to expand access to lower cost biosimilars that would benefit all Americans

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February 22, 2024

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

Washington, DC – The National Consumers League (NCL) recently submitted a letter to the U.S. House and Senate leadership expressing our collective support for Pharmacy Benefit Managers (PBM) reforms to improve consumer and patient access to biosimilars. Given the ongoing surge in prescription drug costs, expanding access to lower cost biosimilars represents a bipartisan solution that would benefit all Americans.

“We are hopeful PBM reforms will be included in a final March healthcare package,” said NCL CEO Sally Greenberg.

The letter 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 nclnet.org.

NCL urges Congress to improve air travel as FAA reauthorization progresses

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February 15, 2024

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

Washington, DC – Last week, the U.S. Senate Commerce Committee advanced the five-year reauthorization of the Federal Aviation Administration (FAA). The legislation does contain some victories for consumers, but it does not contain the deep reforms of an uncompetitive industry that are sorely needed.

“Passengers are crying out to Congress to implement real reforms that make flying less miserable,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “The Senate Commerce Committee could have used its twice-a-decade opportunity to swing for the fences on behalf of the flying public. Unfortunately, they settled for a bunt single.”

NCL, in coalition with other consumer and passenger rights organizations, has called for stronger safeguards to be included in the FAA reauthorization bill for years. Last February, NCL and eight other advocacy groups sent a letter to House and Senate Commerce Committee leaders urging support for a range of critical reforms to the airline industry. Key among those demands was a change to allow state attorneys general to enforce consumer protection laws against airlines, something that federal law currently prohibits them from doing. Thirty-seven bipartisan state attorneys general have also supported this reform, which both the House of Representatives and the Senate have so far ignored in their bills.

“Congress is running out of time to get this right,” said Breyault. “We strongly urge members of the Senate to make protecting the flying public a bigger priority as this bill moves to a floor vote.”

Several of the passenger rights coalition’s other priorities were included in the bill reported out of the Senate Commerce Committee. These reforms include a requirement that children be seated with their family and caregivers without additional fees, a requirement that air travel vouchers not expire before five years, standards for refunds in the event of a delay or cancellation, minimum customer service call center requirements, and creating an assistant Secretary of Aviation Consumer Protection.

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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 nclnet.org.

Top Ten Scams report: Explosion of crypto reports raises alarm 

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February 6, 2024

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

WASHINGTON, D.C. — Cryptocurrency is being used in an increasing number of scams, leading to some of the highest median losses every reported to the National Consumers League (NCL). In its annual 2023 Top Ten Scams report, NCL found that the percentage of crypto-linked scam reports more than doubled year-over-year, making up almost 1-in-10 complaints received. The report, published annually, analyzed more than 2,700 consumer fraud complaints filed with NCL’s Fraud.org campaign last year.  

The median loss for reported investment frauds, including cryptocurrency, ballooned to $20,000. Just two years prior, the number was $1,750. The complaints in this category frequently described schemes where victims were encouraged to put money into cryptocurrencies and cryptocurrency-linked investments that later turned out to be fraudulent.  

“Year after year, complaints to Fraud.org paint a heartbreaking picture,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “It is clear that the problem of fraud is not going away on its own. It is past time for policymakers at every level to take this issue seriously and do everything they can to crackdown on this epidemic.” 

A record year for natural disasters appears to have been reflected in the numbers as well: reports of fake charity scams were up almost 200% compared to 2022. These complaints often involve fraudsters impersonating non-profit aid groups, particularly following crises like the wildfires in Maui. 

The top ten scam categories reported to Fraud.org in 2023 were:  

  1. Prizes/Sweepstakes/Free Gifts  
  2. Internet: General Merchandise  
  3. Phishing/Spoofing  
  4. Investments: Other (incl. cryptocurrency) 
  5. Fake Check Scams 
  6. Advance Fee Loans, Credit Arrangers  
  7. Friendship & Sweetheart Swindles  
  8. Charitable Solicitations 
  9. Family/Friend Imposter  
  10. Home Repair 

“Reporting fraud is an important step for victims,” said NCL Consumer Services Coordinator James Perry. “When someone reaches out, we can connect them with the right resources and begin to walk them through the recovery process. The information they share also helps inform decisions around fighting these scams.” 

Scammers contacting victims through the internet and phone calls initiated three out of four fraud incidents, with the internet replacing phone calls as the number one method of contact in 2023. The Top Ten Scams report also showed a worrying trend in scams targeting young consumers. Compared to 2022, complaints from consumers aged 18-25 increased by 13.12%. 

“The prevalence of scams online should worry everyone, especially as more of daily life becomes virtual,” said NCL Public Policy Manager Eden Iscil. “This is particularly troubling for younger individuals who we know statistically are more likely to become victims of fraud than any other age group. As consumers now grow up online, this problem will only get worse if we don’t dedicate resources to safeguarding our most vulnerable.”  

To view the full 2023 Top Ten Scams report, click here.  

Methodology  

The National Consumers League Top Ten Scams report analyzed 2,756 complaints submitted by consumers to NCL’s Fraud.org campaign in 2023. This data is self-reported by victims and should not be considered a nationally representative sample. NCL shares complaint data with a network of law enforcement and consumer protection agency partners who combine it with other data sets to identify trends in fraud and build cases. 

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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 nclnet.org.