NCL applauds the Senate for confirming Dr. Robert Califf as FDA commissioner

February 15, 2022

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

Washington, DC—Today the nation’s pioneering consumer advocacy group is welcoming news from the Senate that Dr. Robert Califf has been confirmed to serve as the next commissioner of the U.S. Food and Drug Administration. 

The following quote can be attributed to NCL Executive Director Sally Greenberg: 

“Califf gained the trust of the nation during his previous term as Commissioner of the FDA and is all the better prepared to step into this role to get up to speed quickly.  

“We look forward to continuing our work with the FDA under Califf’s leadership to ensure equitable access to vaccines and novel therapeutics to improve the health of consumers regardless of race, ethnicity, or gender. Today, consumers have a better understanding of what the FDA does to make their lives safer and healthier on a daily basis. We support the role of the FDA as a regulator and look forward to seeing further enforcement from the agency to ensure accurate labeling of ingredients and warnings on products sold in the marketplace.

“NCL frequently engages with the FDA to ensure consumer access to safe and effective medicines, foods, and medical devices. We appreciate the leadership Janet Woodcock has provided the agency as acting commissioner during this incredibly tumultuous time for our nation.”

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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 applauds House vote to extend protections to consumers and workers by passing the Forced Arbitration Injustice Repeal (FAIR) Act

February 11, 2022

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

Washington, DC—The National Consumers League (NCL), with a 120+ year old mission to champion the interests of workers and consumers, is applauding the House of Representatives’ action to overwhelmingly pass the bipartisan bill H.R. 4445, the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021.”

The FAIR Act, passed with a 335-97 vote, creates a rare opportunity for employment legislation to pass Congress. The Senate is expected to pass the bill, and President Joe Biden has promised to sign it into law.

“I attended the press conference in 2017 where this bill was first introduced in the Senate. It was a powerful experience to stand with former Fox News Host Gretchen Carlson and then-Senator Al Franken (D-MN), the bill’s sponsor, and to hear her describe the sexual harassment she endured at Fox News and the forced arbitration language she had to sign when she joined the company Five years later, it’s exciting to see this bill pass the House and move on to the Senate,” said Sally Greenberg, NCL’s executive director.

“This is a groundbreaking bill and a big win for people like Carlson, who are simply seeking their day in court,” said Greenberg. NCL joined a coalition of organizations that urged lawmakers to approve the legislation and has supported the rights of consumers, workers, and small businesses to be free from forced arbitration clauses, calling for passage of the Forced Arbitration Injustice Repeal (FAIR) Act.

H.R. 4445 upholds the right of those who have experienced sexual assault or sexual harassment in their workplace to hold the abusers accountable in court, rather than being sent to a closed-door arbitration forum often controlled by the employer or company.

“We believe the strong bipartisan support for this bill shows a clear recognition that forced arbitration is fundamentally unfair, hopefully signally a path to ending forced arbitration once and for all,” said Greenberg.

Forced arbitration provisions are ubiquitous in the fine print of contracts as a pre-condition for obtaining basic products and services such as a credit card, bank loan, apartment lease, or mobile phone. Arbitration is a skewed process, and fundamentally undemocratic because the law does not apply, there is no right of appeal, and the outcome is secret. The arbitrator, too often chosen by the corporation, is likely to heed the interests of the company in hopes of repeat business. And too often companies can dictate where the arbitration will take place, what the rules will be, and how the costs will be borne.

As a reference point, Consumer Reports reviewed consumer products in the most popular product categories it rates – and in two additional categories where safety is a paramount concern, bike helmets and child car seats – and published its findings in 2020. Of the 117 brand/category combinations examined, 60 percent included arbitration clauses. 

Under the FAIR Act, introduced by Representative Hank Johnson (D-GA) and Senator Richard Blumenthal (D-CT), companies would be prohibited from requiring consumers, workers, and small family businesses to give up fundamental legal protections as a precondition for obtaining a product, service, or job. Once a dispute actually arises, and the stakes are clear, consumers, workers, or family businesses could choose arbitration if they determine it to be a better option than the courts.

“If — as so many businesses argue in support of arbitration — it is a process that is more favorable to consumers, then they will voluntarily choose it,” said Greenberg. “But never should arbitration be a consumer’s only choice. We applaud the House, the Senate and President Biden for their support of this landmark legislation.”

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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.

 

New We Can Do This! podcast episode featuring conversation with feminist Karen Mulhauser tackles reproductive rights, women’s history, and today’s challenges

For immediate release: February 9, 2022
Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Katie Brown, katie@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League (NCL), the nation’s pioneering worker and consumer advocacy organization, has released “A woman’s right to choose: Equal access to health care threatened,” a new episode in its  We Can Do This! podcast series. Hosted by NCL Executive Director Sally Greenberg, the episode features a conversation with Karen Mulhauser, longstanding champion for women’s rights. Mulhauser served as the first appointed executive director of the National Abortion Rights Action League (NARAL) in 1974, shortly after the 1973 Roe v. Wade case was decided by the Supreme Court, securing the right to abortion. After leading NARAL, Mulhauser’s work took many directions, including empowering women to register and vote, and the founding of Every Woman Vote 2020.

“With NCL’s long history in advocacy for safe, effective access to health care, we welcome Karen Mulhauser’s perspective on the historical fight for a woman’s right to choose. Mulhauser gives us an intimate view into why these protections are so important and so fragile,” said Greenberg.

An excerpt of Karen’s interview: “One in three women have an abortion. … My story is one that when I was in college and got pregnant unintentionally, I self-induced, and for decades I didn’t talk about that. But part of what I think needs to happen is that people have to tell their stories. … We are losing our democracy, and that’s why I’m building a voter initiative for this. In my long years of life, this is the most important election of my life. And I want to do whatever I can to mobilize as many people as possible.”

This episode contains sensitive topics. Listener discretion is advised.

This episode is now available on nclnet.org and on Apple Podcasts and Google Podcasts.

NCL’s We Can Do This! Podcast | Episode 16 

“A woman’s right to choose: Equal access to health care threatened”

Episode description: The National Consumers League believes in equal health care access for all, and that includes a woman’s right to choose. With the looming possibility of Roe v. Wade being overturned and new laws adopted in states around the country restricting women’s access to abortion and other reproductive services, we sat down with pioneering abortion rights champion  — Karen Mulhauser  — NARAL’s first Executive Director, for a historical perspective on abortion. Mulhauser discusses her personal story, political organizing and her work to secure rights and protections for women.

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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 calls for Spotify removal of Joe Rogan episodes that contain harmful misinformation

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org(412) 945-3242

Washington, DC—Today, February 5, 2022, the National Consumers League sent a letter to Spotify CEO Daniel Ek to call for the removal of episodes of Joe Rogan’s podcast, “The Joe Rogan Experience,” that contain demonstrably harmful misinformation related to masks, vaccines, and other public health measures. The text of the letter appears below.

February 5, 2022

Daniel Ek
Chief Executive Officer
Spotify USA Inc
150 Greenwich Street, 62nd Floor
New York, NY 10007

RE: COVID-19 misinformation on The Joe Rogan Experience

Dear Daniel Ek:

Since late 2020, highly effective mRNA vaccines have been accessible for free to the general public. Despite this, millions of Americans remain unvaccinated, which has been a major contributing factor to the deaths of nearly 900,000 Americans during the pandemic.[1] Spotify has a civic responsibility to do everything in its power to help prevent future COVID-19 deaths—including (but not limited to) removing episodes of Joe Rogan’s podcast, The Joe Rogan Experience, that contain demonstrably harmful misinformation related to masks, vaccines, and other public health measures.

The National Consumers League (NCL), which I lead, has worked hard to combat COVID-19 misinformation.[2] Guided for more than a century by the legacy of our first General Secretary, Florence Kelley, NCL has championed vaccines as lifesaving medical interventions. General Secretary Kelley’s support for inoculations played a key part in mitigating a critical smallpox outbreak at the end of the 19th century and her stalwart advocacy for immunizations has informed NCL’s efforts to increase access to and confidence in vaccines for more than 120 years. Recently, we demanded that the Small Business Administration (SBA) rescind Paycheck Protection Program (PPP) funds that were granted to anti-vaccine groups.[3]

On episode #1639 of his podcast, Rogan recommended that young people not get the vaccine, stating “if you’re like 21 years old, and you say to me, should I get vaccinated? I’ll go no.”[4] On episode #1737, Rogan stated, “they’re trying to say that children need it when they don’t. They don’t need it.”[5] This is but one of many instances of Rogan making statements on his podcast that are clearly misinformation. Data from the CDC shows that over 6,000 individuals under the age of 30 have died from COVID-19 to date.[6] Just last month, almost 800 children under the age of 18 were hospitalized with COVID-19 daily, with young adults’ hospitalization rates being nearly double that number.[7] Unfortunately, Rogan’s harmful rhetoric is not limited to just episodes #1639 and #1737; The Joe Rogan Experience has a long and well-documented history of spreading misinformation that clearly violated Spotify’s Platform Rules.[8]

Spotify’s Platform Rules state that “[c]ontent that promotes dangerous false or dangerous deceptive medial information that may cause offline harm or poses a direct threat to public health,” is prohibited on the platform. The Platform Rules further state that violation of these rules may result in violating content being removed by Spotify and the content publisher’s account suspended.[9] Spotify does not appear to have applied its Platform Rules regarding COVID-19 misinformation to The Joe Rogan Experience despite the fact that the platform has removed 20,000 episodes on other podcasts for containing false claims related to COVID-19.[10] We urge Spotify to enforce its COVID-19 Platform Rules consistently, regardless of who the content creator may be.

Spotify’s failure to police The Joe Rogan Experience, creates serious, and potentially deadly risks for his listeners. Research shows that misinformation has a tangible impact on individuals’ willingness to take measures to reduce the risk of COVID-19 infection and transmission. For example, being exposed to false claims reduced vaccination intent by 6.2 percentage points.[11] Another study showed that misinformation led to a decline in individuals’ reception to authentic COVID-19 health guidance.[12] Given the platform’s massive reach, Spotify is uniquely positioned to help protect its hundreds of millions of users from the harm that flows from incorrect statements, false claims, and lies promulgated on the streaming service.[13]

As Spotify’s most popular podcast, Joe Rogan’s audience includes millions of listeners who view him as a trusted source of information, even when his claims are nonfactual and unfounded.[14] Compared to the $0.0032 per stream rate that Spotify reportedly pays other content creators on the platform,[15] Spotify has clearly decided to make a major investment in The Joe Rogan Experience. I understand that Spotify is a commercial business and not a charitable organization. Still, NCL believes that when the world’s largest digital service provider invests $100 million in an endeavor, the results should better the common good—rather than contribute to the world’s most pressing public health crisis.

We urge you to take action and remove episodes of The Joe Rogan Experience which violate Spotify’s COVID-19 Platform Rules.

Sincerely,

Sally Greenberg
Executive Director
National Consumers League
email: sallyg@nclnet.org

 

cc:       Regan Smith, Head of Public Policy, Government Affairs, Spotify

[1] Note: Unvaccinated persons had 53.2 times the risk for COVID-19 associated death compared with fully vaccinated and boosted individuals. Johnson AG, Amin AB, Ali AR, et al. COVID-19 Incidence and Death Rates Among Unvaccinated and Fully Vaccinated Adults with and Without Booster Doses During Periods of Delta and Omicron Variant Emergence — 25 U.S. Jurisdictions, April 4–December 25, 2021. (2022). MMWR Morb Mortal Wkly Rep, 71, 132–138. DOI: http://dx.doi.org/10.15585/mmwr.mm7104e2

[2] National Consumers League. Get the facts on the COVID-19 vaccine. (2021). https://nclnet.org/vaccines

[3] National Consumers League. No PPP for anti-vaxxers! (2021). https://nclnet.org/ppp_antivaxx/

[4] #1639 – Dave Smith. The Joe Rogan Experience. (2021). https://open.spotify.com/episode/7taqki4fGUkcXESbaUzjgh?si=4VNiaS32TKCiLILuTXiv0Q

[5] #1737- Tim Pool. The Joe Rogan Experience. (2021). https://open.spotify.com/episode/1vnRz7xfy27VFTHVeK740V?si=6541c03af7da47fd

[6] Centers of Disease Control and Prevention. Provisional Death Counts for Coronavirus Disease 2019 (COVID-19). (2022). https://www.cdc.gov/nchs/nvss/vsrr/covid_weekly/index.htm#SexAndAge

[7] Centers for Disease Control and Prevention. COVID Data Tracker: New Hospital Admissions. (2022). https://covid.cdc.gov/covid-data-tracker/#new-hospital-admissions

[8] Paterson, A. Joe Rogan Wrapped: A year of COVID-19 misinformation, right-wing myths, and anti-trans rhetoric. Media Matters. (2021). https://www.mediamatters.org/joe-rogan-experience/joe-rogan-wrapped-year-COVID-19-19-misinformation-right-wing-myths-and-anti-trans

[9] Spotify. Spotify Platform Rules. (2022). https://newsroom.spotify.com/2022-01-30/spotify-platform-rules/

[10] Note: While Spotify has removed at least 40 episodes of the Joe Rogan Experience, those episodes do not appear to have been removed due to violations of the Spotify’s Platform Rules related to COVID-19. (Source: Resnikoff, Paul. “Spotify Has Removed 40 Joe Rogan Episodes To Date — Here’s the Full List.” Digital Music News. (2021). https://www.digitalmusicnews.com/2021/03/30/spotify-joe-rogan-episodes-removed/

[11] Loomba, S., de Figueiredo, A., Piatek, S.J. et al. Measuring the impact of COVID-19 vaccine misinformation on vaccination intent in the UK and USA. Nat Hum Behav 5, 337–348 (2021). https://doi.org/10.1038/s41562-021-01056-1

[12] Kim, H. K., Ahn, J., Atkinson, L., & Kahlor, L. A. (2020). Effects of COVID-19 Misinformation on Information Seeking, Avoidance, and Processing: A Multicountry Comparative Study. Science Communication, 42(5), 586–615. https://doi.org/10.1177/1075547020959670

[13] Spotify. About Spotify. (2022). https://newsroom.spotify.com/company-info/

[14] Variety. Joe Rogan Had the No. 1 Podcast in 2021 on Spotify. (2021). https://variety.com/2021/digital/news/joe-rogan-experience-most-popular-podcast-news-roundup-1235123361/

[15] Justice At Spotify. Union of Musicians and Allied Workers. (2022). https://www.unionofmusicians.org/justice-at-spotify

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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.

Testimony at CDC advisory committee on Moderna COVID-19 vaccine approval

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org(412) 945-3242

Washington, DC—Today, February 4, 2022, NCL Health Policy Associate Milena Berhane provided oral testimony to the Center for Disease Control and Prevention’s Advisory Committee on Immunization Practices in support of the approval of Moderna’s COVID-19 vaccine and pediatric COVID-19 vaccines. Her comments appear below.

February 4, 2022

Thank you, Dr. Lee. My name is Milena Berhane, and today I am representing the National Consumers League. Since NCL’s founding in 1899 by social reformer Florence Kelley, we have advocated for the critical role immunizations play in the preservation and improvement of public health. We extend our gratitude to this Committee for the opportunity to present public comments.

An estimated 890,000 Americans have died from COVID-19 during this pandemic that has persisted in the U.S. for the past two years. The COVID-19 virus continues to threaten the health and safety of many, especially vulnerable populations such as the elderly and immunocompromised groups. The currently available COVID-19 vaccines have worked to save lives, and avoid preventable illness, hospitalizations, and deaths in our communities.

The National Consumers League commends the FDA and the CDC on the approval of the Moderna COVID-19 vaccine, which will continue to be a key tool in the public health response to this pandemic. This vaccine has been, and will continue to be, a safe and effective measure to protecting Americans 18 years of age and older.

America’s families are hopeful that the Pfizer COVID-19 vaccine will be granted Emergency Use Approval for children under 5 years of age. Hospitalization of children under 5 years of age has soared, further evidence of the need for expanding vaccine access to children in this age group. Vaccinating children under the age of 5 will protect them from illness, but also protect their families, caretakers, and teachers from contracting COVID-19 as well.

We are also concerned about the widespread drop-in routine childhood immunization rates during the pandemic. According to CDC data released last May, over 11.7 million children have missed doses of their recommended vaccines.  We are particularly worried that our nation’s most vulnerable children, those who qualified for the Vaccines for Children program, are getting caught up at a much slower rate than children with commercial insurance.

The National Consumers League recognizes the extreme importance of immunizations in protecting the health and safety of all Americans, and will continue its efforts to increase vaccine confidence and uptake across lifespan. We look forward to the upcoming recommendations by this committee regarding these COVID-19 vaccines.

Thank you.

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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.

NCL applauds action to rein in deceptive marketing of contact lenses

February 3, 2022

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DCThe National Consumers League (NCL), America’s pioneering consumer advocacy organization, welcomed the enforcement action undertaken by the Federal Trade Commission (FTC) and the Department of Justice (DOJ) to end the deceptive marketing of contact lenses by Vision Path, Inc.

Vision Path, a direct-to-consumer seller of Hubble contact lenses, will pay penalties and redress totaling $3.5 million to settle charges that it violated the FTC’s Contact Lens Rule and put consumers at risk by failing to obtain proper prescriptions, and neglecting to properly verify prescription information, and by substituting Hubble lenses for those actually prescribed to consumers.

“This action against Vision Path should serve as a warning to any company that disregards laws intended to protect consumers. NCL has been at the forefront of efforts to get Congress and federal regulators to crack down on companies that deceptively market to consumers and illegally substitute their contact lenses in place of those originally prescribed by a patient’s eye doctor,” said NCL Executive Director Sally Greenberg.

The FTC’s complaint alleges that Vision Path engaged in other deceptive practices, such as failing to disclose that “independent” consumer reviews were actually solicited by the company. The FTC also alleges that Vision Path engaged in a deceptive negative-option billing model that encouraged consumers to sign up for 15 pairs of daily-wear contact lenses and then automatically enrolled them in a subscription plan. NCL has long supported legislation, such as the District of Columbia’s landmark Structured Settlements and Automatic Renewal Protections Act of 2018, that would require a consumer’s explicit affirmative consent before such automatically-renewing contracts could kick in.

“Consumers are best served when they work with their health care providers to ensure the most appropriate and safest use of FDA-regulated medical devices, like contact lenses,” said Greenberg. “We are grateful to the DOJ and the Consumer Protection Bureau at the FTC, which led this effort, for their rigorous enforcement of consumer protection laws. While this is an important development, violations of the Contact Lens Rule continue. We will continue to press Congress and federal agencies to ensure that the CLR is being implemented and enforced as Congress intended.”

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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.

Report: Fraud losses hit 10-year high in top scams report

Fast-growing investment scams linked to cryptocurrency

February 1, 2022

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—Being a fraud victim in 2021 was likely to cost more money than at any time in the last 10 years, according to a new report from the National Consumers League (NCL), which runs Fraud.org. In 2021, the median fraud loss reported to the NCL Fraud.org campaign hit a 10-year high of $800, according to the organization’s annual Top Ten Scams Report. Although the percentage of complaints involving financial loss (41.49 percent) took a slight dip from the previous year (47.48 percent), consumers who lost money reported losing it in greater amounts.  The median loss by victims was up $150 in 2021, according to the organization, which analyzed more than 4,300 complaints filed by consumers online, over the phone, and via postal mail.

“What this data tells us is that scammers are getting better at extracting more money from their victims,” said John Breyault, NCL vice president of public policy, telecommunications, and fraud and the director of the Fraud.org campaign. “We remain concerned that consumers facing economic difficulty and isolation from friends and loved ones due the pandemic are creating fertile ground for crooks.”

The top complaint category reported to Fraud.org in 2021 was bogus prizes, sweepstakes, and “free” gifts. Complaints about such scams made up more than one in three (35.23 percent) complaints captured at Fraud.org, an increase of 48 percent year-over-year. Echoing data recently released by the Federal Trade Commission, the fastest-growing type of scam reported to Fraud.org was investment related, particularly those involving cryptocurrencies. Complaints about these scams more than doubled in 2021 (168 percent year-over-year increase).

Top scams reported to Fraud.org in 2021

  1. Prizes/Sweepstakes/Free Gifts
  2. Internet: Gen Merchandise
  3. Phishing/Spoofing
  4. Fake Check Scams
  5. Friendship & Sweetheart Swindles
  6. Investments: Other (incl. cryptocurrency scams)
  7. Advance Fee Loans, Credit Arrangers
  8. Family/Friend Imposters
  9. Computers: Equipment/Software (incl. tech support scams)
  10. Scholarships/Grants

“We hear heartbreaking stories from fraud victims nearly every day,” said James Perry, NCL’s consumer services coordinator. “While these statistics are sobering, behind each one of them are real people,  some of whom have lost their life savings to criminals promising easy money to their victims.”

The goal of most fraudsters is, ultimately, to get paid. In 2021, consumers most frequently told Fraud.org that fraudsters were after their credit card information. However, complaints noting other payment methods such as gift cards, cryptocurrencies, and peer-to-peer payment apps continued to grow in popularity among scammers. In 2021, complaints involving such payment methods increased by nearly half (45.28 percent) year-over-year.

“We are very concerned that scammers are increasingly adopting new payment methods, many of which offer few—if any—consumer protections,” said Eden Iscil, NCL public policy associate. “This new data should serve as a wake-up call to federal regulators that it is past time to close the loopholes in federal consumer protection law that allows these scams to proliferate.”

To view the full 2022 Top Ten Scams report, click here.

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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.

NCL offers support for the Domain Reform for Unlawful Drug Sellers (DRUGS) Act

January 31, 2022

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DCThe National Consumers League is pleased to support the Domain Reform for Unlawful Drug Sellers (DRUGS) Act (HR 6352), which was introduced on January 7, 2022 by U.S. Representatives Bobby L. Rush (D-Ill.) and David B. McKinley, P.E. (R-W.Va.). The Senate equivalent (S. 3399)was introduced by Senators Marco Rubio (R-Fla.) and Amy Klobuchar (D-Minn.). This legislation aims to create a program that holds internet registries and registrars responsible for illegitimate drugs being sold on their online platforms.

“People of all ages have been affected by the sale of illegitimate drugs on the internet. This issue needs a targeted intervention to avoid further harm and death that results from this problem. Requiring online platforms to take action when they are notified of illegal activity on their domains will help to reduce the number of domains selling illegitimate drugs,” said NCL’s Director of Health Policy Jeanette Contreras.

The DRUGS Act would require internet registries to take immediate action when they receive notice from trusted notifiers that one of their domain names is being used to sell drugs illegally online. Agencies that are considered “trusted notifiers” include the Food and Drug Administration (FDA), the Department of Justice (DOJ), the Department of Homeland Security (DHS), State Attorneys General, and State Boards of Pharmacy, among others. After receiving a notice, the online platforms would have to suspend the domain from operating, to allow for an investigation before resuming online sales. The domains would have the option to appeal, by providing evidence of lawful operation.  

This legislation is a monumental step in ensuring that online platforms are held accountable for allowing illegal online pharmacies to be created, and shutting down those that already exist and operate. The DRUGS Act is modeled on a successful FDA pilot program, which resulted in the takedown of nearly 30 domain names used to offer illegal opioids online in 2020.

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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.

NEW RESEARCH: CBD companies exploiting academic partnerships for marketing purposes

January 20, 2022

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The Journal of Studies on Alcohol and Drugs today released new research that reveals the various tactics cannabidiol (CBD) companies use to thwart the Food and Drug Administration (FDA) review process and assert that their therapeutical claims are backed by science.

The study, The Use of Academic Research in Medical-Cannabis Marketing: A Qualitative and Quantitative Review, illuminates the need for FDA regulatory approval and stronger oversight to address the risks to consumers and patients alike when companies exploit that system. The findings reveal nearly 1,000 health claims touting CBD’s ability to mitigate symptoms or treat mental health, autism, pain, sexual health, AIDS, cancer, COVID-19, and more, providing just a snapshot of the current, unregulated marketing tactics being used to mislead the public.

The research was commissioned by Consumers for Safe CBD, a campaign spearheaded by the National Consumers League and conducted by Data Science Solutions. The research took place in the summer of 2020 and was published today in the Journal.

“It’s important that consumers understand what they’re up against when it comes to the current marketplace,” said Sally Greenberg, Executive Director of the National Consumers League. “Day in and day out we see CBD products promoted by celebrities and ‘health experts’ who have no clue what is truly in the products they push. This research helps give a snapshot of just how many misleading claims are out there and will help consumers better understand how to identify — and know to question — marketing red flags.”

“Unfortunately, many CBD manufacturers talk quite a bit about research, but have rarely engaged in the kind of large-scale randomized controlled trials necessary to establish that a drug is safe and effective,” said Theo Caputi, M.P.H, M.SC. author of the study. “CBD products are flooding the retail marketplace — readily available to consumers — and this review shows a serious need for adequate research and testing to ensure safety of these products and effectiveness for the claims companies are making.”

Most of the top medical marijuana companies analyzed:

  • use the existence of academic partnerships and observational relationships in an effort to legitimize health claims, despite having little to no clinical trial activity;
  • routinely use academic research in marketing strategies (“research as marketing”) to mislead the public; and,
  • evade FDA approval process by creating their own pseudo-approval process, making products appear legitimate, safe, effective, and eligible for insurance coverage for a range of health claims through these “research as marketing” tactics.

“It is alarming to see so many companies purposefully evading the FDA process — the gold standard in consumer protection — and making therapeutic claims with little to no real, clinical evidence,” said Greenberg. “Many of these companies have received warning letters from the FDA, yet these harmful and misleading tactics continue. It’s time for Congress to empower FDA to use its full authority to protect consumers. Consumers for Safe CBD will continue to serve as a watchdog to ensure CBD products are safe and effective.”

The CBD market continues to grow despite the FDA stating that CBD cannot be generally regarded as safe (GRAS) for use in food and beverage products. According to a Statista report, CBD sales in the U.S. reached $4.6 billion in 2020. By 2026, the market is expected to grow to $16 billion. Consumers, through these “research as marketing” tactics, have been led to believe that CBD has both medical benefits and health maintenance effects. However, there is only thorough, scientific-backed proof of medical benefits in the one and only FDA-approved CBD prescription drug product available.

“It is arguably unethical and certainly misleading for commercial entities to use the legitimacy of early scientific research — and the announcement of such endeavors — as a marketing tool,” Caputi added, “In fact, this ‘research’ used — or even simply announced in press releases — is not nearly substantial enough to ensure safety and effectiveness of these products for therapeutic use. We must rely on the rigorous FDA approval process to be sure these products meet the gold standard for safety and efficacy.”

Click HERE to read the full study in the Journal of Studies on Alcohol and Drugs.

To  learn more about the risks of unregulated CBD, visit 4safecbd.org.

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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.

NCL applauds decisive action by CFPB against fraudulent payments processor

January 19, 2022

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org or (412) 945-3242

Washington, DC—The National Consumers League (NCL) today applauded action taken by the Consumer Financial Protection Bureau (CFPB) to hold payments processor BrightSpeed accountable for facilitating payments known to be associated with fraudulent tech support schemes. The Bureau, a critical safeguard for consumers nationwide, has banned BrightSpeed and its founder from participating in multiple financial service industries, including payment processing. Fraudulent tech support scams have been significant source of complaints that NCL receives via its Fraud.org website.

The following statement is attributable to NCL Executive Director Sally Greenberg:

“BrightSpeed processed payments for companies that took advantage of victims, especially senior citizens. They continued to serve scammers despite being aware of nearly 1,000 consumer complaints against their clients, as well as multiple inquiries from banks and law enforcement. BrightSpeed is not alone in this; many other financial institutions are also aware that they are being used to facilitate fraudulent activity. Given the massive spike in fraud since the beginning of the pandemic, we must tackle the problem by addressing all entities involved — especially the financial institutions.

“We hope that today’s action by the CFPB reflects a greater shift towards holding not just fraudsters accountable, but also the financial institutions that enable these crimes. Today’s settlement should serve as wakeup call that looking the other way while fraudsters take advantage of financial services platforms will not be tolerated under the Bureau’s new leadership.”

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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.