Price gouging a threat to consumers in new economy

In past natural and man-made disasters, whether in the aftermath of Hurricane Katrina or the 2008-09 financial crisis, opportunistic bad actors have sought to squeeze every last penny from desperate consumers. Unfortunately, the COVID-19 crisis seems to be a little different in this respect.

In the earliest days of pandemic panic, reports of overpriced goods were widespread; products were flying off of shelves, and those that remained were often dramatically marked up. NCL learned of $10 milk, $100+ dollar masks, and outrageous prices on toilet paper. Two Tennessee brothers who stockpiled 17,700 bottles of hand sanitizer with the intent to sell them at a mark-
up online earned instant national notoriety.

“Like moths to the flame, profiteers cannot resist the allure of easy money. In this time of national emergency, it should perhaps come as little surprise that those who wish to make a quick buck off the desperation of consumers are finding few obstacles in their way,” said NCL Executive Director Sally Greenberg.

This spring, price gouging proved to be an immediate threat to consumers across the nation, as unscrupulous sellers increased pricing online and in-person of essentials ranging from personal protective equipment, hand sanitizer, disinfectant products, and even toilet paper and paper towels.

According to the National Law Review, “in normal times, there would be nothing problematic about a seller’s unilateral decision to increase its prices in response to higher consumer demand. However, with emergency declarations in most—if not all—states, such price increases may lead to hefty civil fines and even imprisonment under state laws prohibiting price gouging.”

Indeed, price gouging in times of crisis is illegal in most states. For example, Maryland’s anti-gouging statute prohibits raising the price of many consumer goods and services that increase the seller’s profit by more than 10 percent while the COVID-19 emergency, declared by Governor Larry Hogan, is in effect. California has a similar statute, punishable by up to a year in jail and a $10,000 fine.

“While state laws are important, enforcement alone won’t solve this problem,” said Greenberg. “Reputable businesses must also play their part to keep price gouging off their shelves. We are encouraged when we see sellers committing to stomping out price gouging, such as Amazon’s announcement in April of a ‘zero tolerance’ policy against it.”

In practice, Amazon’s policy means the company is working to remove price gougers from its marketplace, forwarding reports of price gouging to law enforcement, and making it clear to their sellers that price gouging is not allowed. Amazon has removed more than half a million products and suspended thousands of seller accounts in the United States since its commitment to stopping price gougers in its ecommerce platform.

Others are fighting against gouging in different ways. In May, in response to more than 500 complaints from residents about price gouging on essential goods, the Los Angeles County Department of Consumer and Business Affairs announced the launch of a mobile app to make it easier to report cases of price gouging and phony COVID-19 remedies.

“The overwhelming majority of sellers on sites like Amazon, eBay, and other online marketplaces are honest,” said Greenberg. “But these e-commerce marketplaces are where millions of consumers are going to find much-needed products. Particularly for consumers who are at high risk, these online services can be a lifeline, enabling them to stay home, avoid going out into public, and decreasing their chances of contracting the virus. We call on retailers to do the right thing during this terrible pandemic.”

Meet the winners of this year’s Script Your Future Medication Adherence Team Challenge

The 2020 Medication Adherence Team Challenge is part of the national Script Your Future public awareness campaign coordinated by NCL with support from its partners and the Challenge sponsors—the American Association of Colleges of Pharmacy (AACP), the National Association of Chain Drug Stores (NACDS) Foundation, the National Community Pharmacists Association (NCPA) and the American Pharmacists Association (APhA).

Medication non-adherence can lead to devastating health outcomes. Research shows that nearly one in five prescriptions go unfilled and half of all patients with chronic illnesses do not take their medication as prescribed. Improved medication adherence leads to better health outcomes and reduced total healthcare costs, and it was for these reasons that NCL launched the Script Your Future awareness campaign in 2011.

The Team Challenge was established to extend campaign messages into medical and other schools of health professions, and to nurture adherence-minded values in future generations of professionals entering the workplace. Each year, top performing teams are honored with a National Award for overall outstanding team achievement, or a Focused Award, which recognizes outstanding team achievement in the specific areas of health disparity/under-represented community outreach, media/communications outreach, or creative interprofessional team event. This year, we introduced a new focused award category, with the inclusion of a Technology Innovation Focused Award – a category that evaluates creative outreach with a focus on technology-based interventions.

In 2020, our Team Challenge student health professionals were met with unique challenges as they navigated the historic COVID-19 pandemic, which resulted in school closures, event cancelations, and a host of other obstacles. To adhere to social distancing guidelines, our dedicated teams pivoted their campaigns and made an impact in other ways. This year, the Team Challenge observed engagement from nearly 2,900 future healthcare professionals and volunteers, who all together hosted over 250 events in 14 states. Collectively, the teams directly counseled close to 12,000 patients and introduced Script Your Future messaging to over 430,000 consumers, nationwide.  Since the Team Challenge began in 2011, more than 21, 000 future healthcare professionals have directly counseled nearly 87,000 patients and nearly 26 million consumers.

The recognized schools, selected from dozens of applications and 82 participating educational institutions, are listed below.

National Award | University of the Sciences: Philadelphia College of Pharmacy, PA

University of the Sciences (USciences) interdisciplinary medication adherence outreach centered around individuals across all ages, from children to older adults. USciences’ team structure included students of pharmacy, occupational and physical therapies, medicine, and social work. Throughout the Team Challenge, USciences directly counseled 455 patients, reaching a total of 805 people. During their outreach, USciences introduced a new campaign theme – “A future of ______ begins with me”, to personalize medication adherence through each patient interaction. USciences’ campaign also placed a great emphasis on addressing racial disparities, reducing stigma surrounding mental health, and tangential issues like vaccine confidence and proper nutrition.

National Award Finalists

The following schools were named Finalists under the National Award category:
Pacific University School of Pharmacy, West Virginia University School of Pharmacy, Western University College of Pharmacy, Northeast Ohio Medical University (NEOMED), University of Charleston School of Pharmacy, Touro University College of Pharmacy, St. Louis College of Pharmacy.

Rookie Award | Howard University College of Pharmacy – Washington, DC

NCL is thrilled to announce that DC HBCU, Howard University College of Pharmacy, was the recipient of the 2020 Rookie Award. Howard University’s team included students of pharmacy, medicine, social work, and dentistry. Howard University’s target population included homeless or displaced minorities, children and parents, and adults with behavioral issues. The team tailored its disease focus to diabetes and heart disease, as they are chronic conditions that plague the region. Throughout the Challenge, Howard University directly counseled close to 400 patients and reached over 1,000 people with the help of 169 students and volunteers and distributed nearly 1,000 Script Your Future medication adherence resources.

Rookie Award Finalist: University of Arizona College of Pharmacy– AZ

The University of Arizona College of Pharmacy in Tucson, AZ also made a strong showing in the Team Challenge as a first-time competitor.

Focused Awards

Health Disparities Community Outreach Award | St. Louis College of Pharmacy – MO

Pharmacy students from St. Louis College of Pharmacy and nursing students from St. Louis University, joined forces to strategically and intentionally identify their target population – residents of a region of St. Louis known as the “Delmar Divide.” St. Louis College of Pharmacy chose this target population due to the stark disparities observed in the residents directly north and south of the Delmar Divide. For their outreach, St. Louis College of Pharmacy focused their interventions on communities north of the Delmar Divide, which predominantly consists of people of color of lower socioeconomic means. The team chose to focus on chronic conditions like diabetes and hypertension. Together, 60 students and volunteers directly counseled 350 patients and reached nearly 400 people. Through numerous events and newly fostered community partnerships, St. Louis College of Pharmacy disseminated nearly 400 Script Your Future medication adherence resources within the community.

Communication and Media Outreach Award | Lake Erie College of Osteopathic Medicine School of Pharmacy (LECOM) – PA & FL

To illustrate the diversity of their team, LECOM pharmacy and medical students from campuses based in PA and FL produced a public service announcement (PSA) spoken in eight languages, to help amplify the value of medication adherence to numerous populations. The PSA garnered over 2,800 views. LECOM employed social media platforms like Facebook, Instagram, Twitter, and LECOM’s Pulse Newsletter, to help disseminate Script Your Future medication adherence messaging. LECOM students also wrote an original book to present heart health information to the children entitled “Mr. Pumper and the Heart Valves”, which was read to third grade elementary students. Throughout the Challenge, 293 students and volunteers directly counseled over 500 patients, reaching over 1,200 patients, and disseminated over 730 Script Your Future resources in their community.

Creative Inter-Professional Team Event Award | University of Pittsburgh School of Pharmacy – PA

The University of Pittsburgh School of Pharmacy partnered with the Schools of medicine, dentistry, social work, nursing, dietetics, and rehabilitation sciences, to organize a team of over 300 students and volunteers to execute their medication adherence outreach. University of Pittsburgh harnessed the interdisciplinary nature of their team to build a campaign serving older adults in their community, from a holistic treatment perspective. The team addressed issues like hypertension, social isolation, and food insecurity. Throughout the Challenge, University of Pittsburgh directly counseled over 130 patients and reached over 2,200 patients.

Technology Innovation Award| Western University College of Pharmacy – CA

Western University College of Pharmacy made an impressive debut for the inaugural inclusion of the Technology Innovation Award. To foster medication adherence, the team created a dedicated website that directed patients to resources relating to disease areas like COPD, pneumonia, heart failure, and diabetes. The website was geared towards patients recently discharged following a hospital stay and contained features like medication and post-discharge appointment reminders and medication adherence-related infographics in multiple languages.

NCL statement condemning threats to public health officials

June 25, 2020

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

Washington, DC—The National Consumers League (NCL) is deeply concerned with the rise in harassment and threats to public health leaders across the country in response to the nationwide shutdowns due to COVID-19.

Public health leaders are being subjected to pressure following guidelines regarding social distancing and face mask usage. Critics of these guidelines have politicized preventive health measures due to perceived disruptions in personal liberties. They have resorted to “doxxing” public health officials—a practice that involves revealing someone’s private information, such as place of employment and residential address, publicly over the Internet. Other intimidation tactics that have been employed include protesting outside of health officials’ homes to incite fear.

These tactics have created hostile work environments for public health officials, leading to 27 resignations or request of reassignments across 13 states—in the interest of personal safety. Public health workers also fear that these actions could potentially have a negative effect on recruiting people into pursuing careers in the public health field.

“Public health departments are already underfunded and understaffed, and in the midst of this pandemic, we need our full arsenal of public health experts on the front lines,” said NCL Executive Director Sally Greenberg. “We cannot afford to lose any personnel in this space at this time. The U.S. is already behind regarding testing and other preventive measures. We need to let public health workers do their jobs to keep us safe, informed, and empowered regarding our health.

“NCL unequivocally condemns the threats placed against our public health workers. We rely on these individuals to keep us healthy, and we need them now more than ever. All they ask from us in return in our cooperation in flattening the curve.”

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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 commends two GOP senators who will oppose Beck nomination to lead consumer safety agency

June 22, 2020

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

Washington, DC—The National Consumers (NCL) League greatly appreciates the principled stance of two GOP senators who have stated publicly that they cannot support Dr. Nancy Beck for the Chair of the Consumer Product Safety Commission (CPSC). One of those senators, Shelly Moore Capito (R-W.Va.), holds a critical seat on the committee of jurisdiction over the CPSC. That committee will vote either to send her nomination to the full Senate or not.

“Dr. Nancy Beck’s record as it relates to PFAS chemicals, as well as her responses to my questions and the questions of other senators at yesterday’s Commerce Committee hearing have led me to conclude that she is not the right person to lead the Consumer Product Safety Commission,” Sen. Shelley Moore Capito, a member of the U.S. Senate Committee on Commerce, Science and Transportation, which heard from Dr. Beck at her nomination hearing this week.

“I do not believe that Dr. Nancy Beck’s views on chemical safety, including on PFAS substances and asbestos, align with the Consumer Products Safety Commission’s mission,” Sen. Susan Collins (R-ME) said in a statement.

Republicans currently hold 53 Senate seats. If two more Republicans announce their opposition, the party would lack a majority to confirm Beck, assuming all Democrats and independents who caucus as Democrats oppose her.

PFAS Concerns

Concerns about Beck’s responses on PFAS (per- and poly-fluoroalkyl substances) and asbestos were evident during Tuesday’s Senate Commerce, Science, and Transportation Committee nomination hearing. Beck promised senators to champion policies “supported by objective and transparent science.”

Beck’s previous position as a political appointee in the Environmental Protection Agency’s Office of Chemical Safety and Pollution Prevention and her work for the American Chemistry Council raised concerns.

The Commerce panel won’t schedule a vote on Beck’s nomination for at least two weeks to allow for members to ask additional questions for the record, a Republican committee aide said.

Sen. Maria Cantwell (D-WA), the top Democrat on the Commerce Committee, also will vote against Beck’s nomination; Cantwell asked Beck a number of probing questions, as did Senators Tom Udall (D-NM), Richard Blumenthal (D-CT), Jon Tester (D-MT), Tammy Baldwin (D-WI), and Jacky Rosen (D-NV).

Democrats, environmental, and consumer groups have criticized Beck’s nomination to lead the commission, citing her consistent actions to slow or block banning dangerous chemicals and advancing the interests of the chemical industry.

The following letters were sent to the Senate Commerce Committee’s Chairman Roger Wicker and Ranking Member Maria Cantwell, opposing the nomination of Nancy Beck to the Consumer Product Safety Commission (CPSC).

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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 hails sweeping Supreme Court decision protecting LGBTQ employees

June 19, 2020

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

Washington, DC—With a mission of protecting workers and consumers, the National Consumers League (NCL) applauds the Supreme Court’s landmark employment protection decision this week finding that employment discrimination on the basis of sexual orientation or gender identity is prohibited under federal civil rights law. This statement is attributable to Sally Greenberg, NCL’s executive director:

We are applauding this week’s landmark 6-3 Supreme Court decision finding that the law’s prohibition on sex discrimination in employment extends to those who identify as LGBT (lesbian, gay, bisexual, transgender). We commend and thank Justice Neil Gorsuch and his five fellow justices for concluding that ‘An employer who fires an individual for being homosexual or transgender fires that person for traits or actions it would not have questioned in members of a different sex. Sex plays a necessary and undisguisable role in the decision, exactly what Title VII forbids.’ NCL was founded to advocate for the rights of workers to receive decent pay, work in safe conditions and be free from discrimination in the workplace. This decision further extends these critical protections to the LGBT community.

Title VII of the 1964 Civil Rights Act prohibits discrimination in the workplace on the basis of race, religion, national origin and sex. We are pleased that the court found that “sex” is a distinct characteristic but inseparable from the concepts of sexual orientation and gender identity.

The decision is the most significant affirmation of LGBT rights in the United States since the 2015 Supreme Court decision that legalized same-sex marriage and the Court’s first decision addressing transgender civil rights.

Before the decision, LGBT job discrimination was still technically legal in much of the nation. Less than half the states have laws explicitly prohibiting workplace discrimination on the basis of sexual orientation or gender identity. An estimated 11 million Americans identify as LGBT, according to the Williams Institute.

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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 Supreme Court decision protecting DREAMERS

June 18, 2020

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

Washington, DC—The National Consumers League (NCL) applauds the Supreme Court’s decision today to block the Trump Administration’s attempt to end the DACA (Deferred Action for Childhood Arrivals) program for so-called “DREAMERS”—young people who came to the United States as children with parents who were not documented citizens at the time. Millions of these young people grew up in the United States, but their citizenship status is precarious. Thus, under this Obama-era program established in 2012, DACA is critically important to protect these young people and give them a path to citizenship.

This statement is attributable to NCL Executive Director Sally Greenberg:

NCL applauds the 5-4 decision of the U.S. Supreme Court today blocking the Trump Administration’s efforts to undo the protections of DACA. Thousands of aspiring and promising young people who arrived in the United States as children of undocumented immigrants will not, as a result of this decision, lose critical protections DACA provides. Today we join with them in celebrating the Supreme Court’s decision to block Mr. Trump from undermining these essential protections. NCL’s long history of fighting for the rights of workers and consumers includes the rights of immigrants, who remain among the most vulnerable targets of workplace and marketplace abuses. They deserve the same protections that flow to all American citizens. NCL’s policy position on this issue was adopted in 2013.

The Development, Relief, and Education for Alien Minors Act—the proposal to grant temporary conditional residency, with the right to work, to qualifying immigrants who entered the United States as minor—and, if they later satisfy further qualifications, they would attain permanent residency.  

DACA was introduced by President Barack Obama in 2012 and allows young people who were brought to the U.S. illegally as children to stay in the country and work without being deported on a two-year, renewable term. As of March 31, 2020, 640,000 people have active DACA status, and since 2012, more than 825,000 people have utilized the program. The 5-4 Supreme Court majority, written by Chief Justice John Roberts, determined that President Trump and DHS did not adequately consider the impact on the DACA recipients themselves and the potential hardships for the some 700,000 young immigrants brought to the U.S. illegally as children by their parents. 

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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 statement on murder of George Floyd

June 3, 2020

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

Washington, DC—The National Consumers League (NCL) is deeply saddened by the recent unjustified killing of an African American man by police in Minneapolis—just the latest in a long, tragic chain of unwarranted deaths of African Americans by police around the nation. The following statement may be attributed to NCL Executive Director Sally Greenberg:

The callous murder of George Floyd, an African American devoted father, husband, brother, and friend is especially devastating to me personally because it occurred only a few miles from the Minneapolis home I grew up in. Like millions of Americans, I watched as a police officer choked to death a man who was accused by a local store owner of a minor charge of passing off a counterfeit $20 bill.

Like many consumers of color, Mr. Floyd was suspected of a crime by just walking in the door. White Americans must grapple with this reality: African Americans are often followed in stores for no reason, pulled over by police for no reason, and have police called on them for no reason. NCL champions consumer protection and especially for those who suffer from discrimination and predatory practices when they engage in the everyday activities we all take for granted: shopping, walking, driving, jogging, playing music in our cars, or pumping gas. We have also seen how COVID-19 has had the most devastating impact on communities of color. These oppressive disparities must stop.

NCL’s first leader Florence Kelley, raised in an abolitionist Quaker family, refused to stay in hotels that didn’t admit African Americans and appeared on the original charter of the NAACP. To this day NCL has carried forth her legacy and stood alongside African Americans fighting for equality and fair treatment under the law.   

NCL supports the peaceful protesters advocating for systemic change. We pledge to be part of the solution as we try to move on from this devastating moment in American history and will seek out like-minded allies and friends to join us in this struggle.

We are all Americans, and we are all interconnected. It is time to listen and time for each of us to take responsibility to heal the nation. No more delays.

We can do this!

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneering 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.

Consumer groups: Proposed DOT rules will undermine agency’s ability to protect passengers

May 28, 2020

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

Washington, DC—Consumer groups today called the Department of Transportation’s (DOT) proposal to modify how it protects passengers from unfair and deceptive acts and practices in the air travel marketplace “fatally flawed” and urged the agency to abandon its rulemaking. In comments filed with the agency, the National Consumers League and Consumer Action questioned why the Department would begin such a far-reaching rulemaking, which it apparently did at the request of the nation’s largest airline lobbying group.

“The proposed rules, formulated at the behest of the airline lobby, would not benefit consumers,” said John Breyault, NCL vice president of public policy, telecommunications, and fraud. “If adopted, they would give airlines even greater incentives to engage in the kinds of anti-passenger practices—like leaving passengers stuck on the tarmac for hours on end—that Congress intended the DOT to prevent.”

The DOT’s proposed rules (“Defining Unfair or Deceptive Practices,” Docket No. DOT-OST-2019-0182), would also require the agency to overcome burdensome hurdles before any new enforcement actions or consumer protection rulemakings are initiated.

DOT’s enforcement activity is at the lowest level in a decade. Last year, the DOT initiated the fewest number of enforcement actions (9) and the second-lowest amount of civil penalties ($2.2 million) since 2010. Compare this to the $1.4 billion in baggage fees that the eleven biggest U.S. airlines collected in the fourth quarter of 2019 alone. The groups’ comments questioned how such metrics could square with the airline industry’s portrayal of the DOT as a consumer protection agency run amok.

“We understand that the airlines are facing severe economic headwinds due to COVID-19,” said Linda Sherry, Consumer Action’s director of national priorities. “That should be no excuse for the DOT to cave to industry pressure and abandon its critical consumer protection role in the air travel marketplace.”

The organizations’ full comments are available here.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneering 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.

The National Consumers League supports expanded COBRA coverage

Americans are spending billions on rising healthcare costs and need access to affordable, effective medicines and high-quality care.

NCL expresses concern about Trump Administration’s NBPP rule for 2021

May 26, 2020

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

Washington, DC—The National Consumers League (NCL), the nation’s pioneering consumer advocacy organization, expresses concern about the Trump Administration’s Notice of Benefit and Payment Parameters Rule for 2021.

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

“As the COVID-19 pandemic continues to take a toll across the country, consumers should not be subjected to additional obstacles when trying to access the care they need. We are therefore deeply troubled by the Department of Health and Human Services (HHS) decision to permit health plans to use accumulator adjustment programs in its Notice of Benefit and Payment Parameters Rule for 2021.

This is a step in the wrong direction at a time when consumers are struggling to make ends meet. Under these programs, health insurers are not required to count manufacturer cost-sharing assistance toward patients’ annual deductibles, even when no medically appropriate generic equivalent is available. Many patients typically rely on very specific treatments that have no generic or other alternative, resulting in already high out-of-pocket spending. Removing this cost-sharing assistance will force those patients to pay thousands of dollars more in unexpected costs at the pharmacy. These new costs could push some to forego those medications, leading to worsened health outcomes. This could compromise medication adherence and will lead to increased health care costs over time.

Given the significant financial pressure this will place on patients and the negative impact it could have for our health care system as a whole, we ask that HHS reconsider the reversal of its original protections against these programs. Any subsequent course of action should seek to take the burden off of consumers. Employers and insurers must recognize that this is not the time to create barriers to care and refrain from implementing accumulator adjustment programs in 2021.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneering 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.