NCL opposes harmful proposed rule that will expose more to hunger

/in Featured Home - Food, Nutrition, & Obesity, Food, Food policy, Nutrition/by

September 23, 2019

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

Washington, DC—Today, the National Consumers League (NCL) submitted written comments opposing the USDA’s Proposed Rule: Revision of Categorical Eligibility in the Supplemental Nutrition Assistance Program (SNAP), arguing that the proposed policy change would impact millions who qualify for the federal program that is the nation’s first line of defense against hunger.

“Our organization is deeply concerned that the proposed changes would deprive an estimated *3.1 million people of access to this vital program and cause 500,000 children to lose their automatic eligibility for free or subsidized school lunch. This proposed rule may potentially worsen hunger among low-income households, harm local economies, and increase SNAP administrative costs,” wrote NCL in the comments.

Low-income households receiving cash assistance from Aid to Families with Dependent Children (AFDC), Supplemental Security Income (SSI), or General Assistance have long been considered *automatically (or “categorically) eligible for SNAP, which means they do not separately have to pass SNAP’s asset or gross income tests.

Agriculture Secretary Sonny Perdue said the proposed rule change is intended to close a “loophole” that states have misused to “effectively bypass important eligibility guidelines.” However, that’s simply not the case. Broad-Based Categorical Eligibility (BBCE) allows states to cover the gap between income and need by considering cost of living, wages, and other local economic conditions when determining people’s eligibility for SNAP.

The National Consumers League strongly opposes the proposed rule that would expose even more people to the arbitrary food cutoff policy.

NCL’s written comments are available here (PDF).

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

###

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.

Groups’ letter to Congress in support of Taxpayer Service Standards legislation

/in Consumer policy, Consumer Protection, Featured Home - Consumer Protection, imported/by

September 23, 2019

The Honorable Chuck Grassley
Chairman
Committee on Finance
United States Senate
219 Dirksen Senate Office Building
Washington, D.C. 20510-6200

The Honorable Richard Neal
Chairman
Ways & Means Committee
United States House of Representatives
1102 Longworth House Office Building
Washington, D.C. 20515

The Honorable Ron Wyden
Ranking Member
Committee on Finance
United States Senate
219 Dirksen Senate Office Building
Washington, D.C. 20510-6200

The Honorable Kevin Brady
Ranking Member
Ways & Means Committee
United States House of Representatives
1102 Longworth House Office Building
Washington, D.C. 20515

Dear Chairman Grassley, Ranking Member Wyden, Chairman Neal, and Ranking Member Brady:

We are writing to express our support for much-needed Taxpayer Service Standards legislation to protect Americans from tax return preparers who do not meet basic standards of competency, training or ethics. In 2014, the GAO found widespread and significant errors during a “secret shopper” test on paid preparers, with only about 10 percent of preparers calculating the correct refund amount. The Federal Trade Commission ranked tax preparer fraud in the top 30 most common types of fraud in 2017. And yet, the IRS has had little authority to prevent bad actors from becoming tax preparers or remove them once they’re in the system.

We urge Congress to take action to provide some basic protections that will ensure the well-being of American taxpayers and equip the IRS with the tools it needs to do so. 

For many Americans, a tax return is their most significant financial transaction all year. According to the IRS, nearly 60 percent of taxpayers seek help with their taxes from paid preparers. As important as a tax return is, there are actually no basic standards in place to protect taxpayers from incompetent, unethical or sloppy tax preparation services. Yet the consequences of a mistaken tax return can be devastating. For these reasons, we are supporting legislation before the Senate and the House to set taxpayer service standards, allow the IRS to spot and remove habitually bad tax preparers from the system, and protect taxpayers from fraudulent, dishonest and incompetent tax preparers. Specifically, we support –

  • H.R. 3466, introduced by Congressman Estes (R-KS) and Congresswoman Sewell (D-AL). This bill would give the IRS the authority to revoke PTINs from fraudulent, incompetent and unethical preparers.
  • S. 1192 and H.R. 3330, the Taxpayer Protection and Preparer Proficiency Act. These Senate and House companion bills, introduced by Senators Wyden and Cardin and Congressmen Panetta (D-CA) and Yoho (R-FL), respectively, would establish minimum standards for tax return preparers.

Currently, the only requirement to become a paid tax preparer is to obtain a Preparer Tax Identification Number (PTIN) from the IRS. The agency identified nearly 20,000 registered preparers who were potentially non-compliant with their tax filing and payment obligations, with $375 million in taxes due from these preparers as of January 26, 2015.[1] As of May 2017, however, only about 1,700 of 1.3 million PTINs issued had been revoked – 0.001%. Even today, the IRS accepts returns from preparers with expired or invalid PTINs. What’s more, 58% of active PTIN holders have no professional credentials at all, unlike CPAs, attorneys and enrolled agents. This is unacceptable and exposes taxpayers to fraud, incompetence and fees and penalties through no fault of their own.

We thank you for your attention to this important issue and urge you and your colleagues to support S. 1192/H.R. 3330 and H.R. 3466 to protect American taxpayers who unknowingly may be using unqualified or dishonest tax preparers.

Sincerely,                                                                                                   

Center on Budget and Policy Priorities
Consumer Action
MANA – A National Latina Organization
Maryland Consumer Rights Coalition
National Consumers League
Prosperity Now
Virginia Citizens Consumer Council

[1] Treasury Inspector General for Tax Administration, August 27, 2015.

Consumer groups applaud congressional action to improve live event ticketing marketplace

/in Consumer policy, Consumer Protection, Corporate social responsibility, Featured Home - Consumer Protection, Featured Home - Fraud Prevention, Fraud Prevention, imported, Technology/by

September 20, 2019

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

Washington, DC—Today, the National Consumers League (NCL), along with seven other leading consumer and public interest groups, sent a letter to Congressmen Bill Pascrell (D-NJ) and Chairman Frank Pallone (D-NJ) and Senator Richard Blumenthal (D-CT) to applaud the lawmakers’ leadership in fixing the opaque live event industry by reintroducing the Better Oversight of Secondary Sales and Accountability in Concert Ticketing Act of 2019 (BOSS ACT). 

The following statement is attributable to Brian Young, public policy manager at the National Consumers League: 

“Unchecked consolidation in the live event industry has led to an opaque ticket marketplace that is rigged against consumers. In addition to undisclosed holdbacks designed to create a false sense of ticket scarcity, consumers are forced to grapple with a litany of fake websites which pose as legitimate box offices, and ridiculous fees that increase the cost of a ticket by an average of 27-31 percent. These outrageous fees typically prevent comparison shopping as they are often not disclosed until near the end of the purchase process. Likewise, despite the passage of legislation in 2016 which banned the use of ticket–buying BOTS, consumers have witnessed an increase of illegal ticket-buying bot usage of nearly 17 percent.  Fortunately, Congressman Bill Pascrell, Congressman Frank Pallone, and Senator Richard Blumenthal are working to bring transparency and competition back into the live event ticket marketplace. Today’s letter from 8 leading consumer advocacy groups applauds their efforts.” 

To add transparency to the live event ticketing marketplace and empower consumers to make informed purchasing decisions, the BOSS ACT would: 

  • Prevent primary and secondary ticket marketplaces from slamming consumers with hidden fees during checkout process; 
  • Prohibit scalpers from impersonating venues’ and teams’ websites to charge higher prices for less-desirable seats; 
  • Require primary ticket sellers to be honest about the number of tickets they plan on selling; and
  • Require the Federal Trade Commission (FTC) to identify ways to improve enforcement against illegal ticket-buying bots. 

To read the full letter, and learn more about the BOSS ACT, click here. 

###

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.

LifeSmarts launches 2019-20 season with new scholarship, community service opportunities for teens

/in Consumer Education, Consumer literacy, Education, imported, LifeSmarts, Teens/by

September 18, 2019

Millions of student leaders have gained real-world knowledge through the program 

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

Washington, DC–Today marks the official launch of the 2019-2020 season of LifeSmarts, with a new competition going live at LifeSmarts.org. LifeSmarts, a program of the National Consumers League (NCL), is a national scholarship competition and educational program for middle-school and high-school students that tests knowledge of real-life consumer issues and is helping to create a future generation of consumer-savvy adults.

“We are very excited to launch this season of LifeSmarts,” said national Program Director Lisa Hertzberg. “For more than 25 years, LifeSmarts has given students the skills they need to succeed as adults. We’ve seen more than 1.5 million students gain knowledge, confidence, leadership capabilities, and team-building skills. The competition is fun, and the impact of LifeSmarts is life-long.”

LifeSmarts focuses on five main content areas:

  • consumer rights and responsibilities
  • personal finance
  • technology
  • health and safety
  • and the environment

Students are quizzed on their knowledge of these subject areas during online competition. Top-performing teams then advance to statewide competitions, and state champion teams as well as several wildcard teams advance to the national championship held each year in a different American city. The 2020 National LifeSmarts Championship will take place in the Washington, DC area April 25-28, 2020. Winning team members receive scholarships and other prizes.

Last year, students answered more than 3.5 million consumer questions about credit reports, recycling, nutrition, social media, state lemon laws, and everything in between. In April, the LifeSmarts state champion team from Barrington, Rhode Island, took home top honors at the 25th anniversary event in Orlando, Florida.

In addition to online, state, and national competitions, LifeSmarts recognition and awards occur throughout the program year:

  • Teams of students vie for cash prizes in the online TeamSmarts quiz, which focuses on a specific LifeSmarts content area each month from September through February.
  • Classroom mentor programs: Five $1,000 scholarships are awarded each winter to winning LifeSmarts students who become Safety Smart Ambassadors, using LifeSmarts content and UL’s Safety Smart modules to present safety messages to younger children in their communities.
  • Partnering with FBLA (Future Business Leaders of America), 4-H, and FCCLA (Family, Career, and Community Leaders of America), LifeSmarts complements these organizations’ projects, judging events, competitive events, and activities. LifeSmarts offers special opportunities for members of these student leadership organizations.
  • A new quest is open for middle school participants focusing on lithium ion button cell batteries and the risks and hazards they pose to young children. This team-building and leadership opportunity will culminate in a PSA contest among middle school LifeSmarts This project is sponsored by UL’s XPLORLABS, which helps students and teachers solve problems through science and engineering to become part of the movement to make the world a safer place.
  • Thanks to a long-standing partnership with Western Union, high school LifeSmarts participants have the opportunity to educate older citizens to avoid fraud. These LifeSmarts Fraud Ambassadors will highlight common advance-fee and fake check scams, demonstrating that education is the best protection against fraud.
  • A LifeSmarts student will win a $2,000 scholarship by writing the winning privacy essay in a contest sponsored by ITRC and CyberScout.

LifeSmarts is active in all states and the District of Columbia, where NCL is headquartered.

“We are proud of the impact LifeSmarts has made in its 25+ years of educating teens, and we are excited to continue to grow the LifeSmarts program, to educate students about financial literacy, and to create a new generation of savvy, market-ready consumers and workers,” said NCL Executive Director Sally Greenberg. “Too often traditional high school curriculum fails to teach students vital information that will be crucial once students go to college, get their first job, or move out of their parents’ house.”

In addition to hosting the official LifeSmarts competition, LifeSmarts.org provides resources for educators to supplement existing lesson plans. These include daily quizzes, educational videos, social media competitions, focused study guides, and scholarship opportunities. LifeSmarts lessons closely align with courses taught in family and consumer sciences, business, technology, health, and vocational education. Math and English teachers have also had success with LifeSmarts, as have homeschool and community educators.

Major LifeSmarts contributors include: Underwriters Laboratories (UL), Western Union, AARP, Comcast NBCUniversal, Sears Consumer Protection and Education Fund, American Express, Intuit, WSECU, CBM Credit Education Foundation, and a number of state and local sponsors.

Visit LifeSmarts.org for more information.

###

About LifeSmarts

LifeSmarts is a program of the National Consumers League. State coordinators run the programs on a volunteer basis. For more information, visit: LifeSmarts.org, email lifesmarts@nclnet.org, or call the National Consumers League’s communications department at 202-835-3323.

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 in support of UAW Strike

/in Compensation / Wages, Labor, Labor policy/by

September 17, 2019

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) has announced its support for the 48,000 United Auto Workers who have gone on strike this week to demand their share of the $12 billion profits GM earned last year. The strike also comes in protest of GM’s announcement that it–the largest of American automakers–would shutter four different U.S. plants.

“We stand with UAW members who are asking for what is only fair–a reasonable share of the enormous profits GM has enjoyed in the past year alone. The UAW loyally took a hit a decade ago to keep GM profitable and viable. Without the workers, there would be no cars and no profits. Ten years later, with GM back earning billions in profits, auto workers are entitled to enjoy this success and the fruits of their labor: better pay, profit sharing, and an end to GM’s bringing in temporary workers that reduce pay and benefits. Workers also deserve improved health care benefits,” said Sally Greenberg, the League’s executive director.

More than a decade ago when GM was facing bankruptcy, UAW members bore a significant portion of the sacrifices to bring the automaker back to financial health. At the time, the union agreed to a plan whereby General Motors hired many new workers at roughly half the pay of unionized members and greatly reduced their retirement benefits. Then GM brought in temporary workers with even fewer wage-and-benefit packages and little job security.

“GM has reduced its U.S. payrolls, announced it is closing four plants in the United States, and moved a number of others to Mexico–all of which has helped to restore GM to its current health and ability to earn billions in profits, at the sacrifice of its workers,” said Greenberg.

“NCL supports the 48,000 workers who are demanding what is theirs: a fair share in more than 50 GM plants and other locations across the Midwest and South,” said Greenberg. “We support these hardworking women and men and call on GM to sit down with the union and arrive at a contract that shares the benefits of GM’s current profits with its dedicated, hardworking employees.”

###

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 calls upon state legislators to protect their residents from dishonest automatically renewing contracts

/in Consumer policy, Consumer Protection, Fraud policy, Fraud Prevention, Personal finance, Technology, Telecommunications/by

August 12, 2019

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 consumers and worker advocacy organization, calls upon state legislatures across the country to take action to protect consumers from deceptive automatic renewal clauses.

While automatic renewal provisions in consumer contracts, also known as negative option clauses, are billed as helping consumers avoid service disruptions, they can result in financial hardship for consumers. Dishonest companies continue to place these clauses into the fine print of contracts to mask rate hikes, renew gym memberships, generate recurring deliveries, or cause other services to renew without a consumers’ knowledge or consent.

The following statement is attributable to Brian Young, NCL’s public policy manager:

At least 22 states have some protections from automatically renewing contracts; however media reports have shown that companies are now using the guise of a ‘free trial’ to secretly roll consumers into binding contracts, sometimes after as little as a few days. Such clauses can trap consumers in expensive and unwanted contract renewals.

NCL is calling upon each state legislature to review their laws and enact comprehensive legislation. Recently enacted legislation in the District of Columbia is a model bill which requires:

  • clear disclosure of all automatic renewal clauses;
  • a consumer’s affirmative consent for free trials to be rolled over into a contract at the end of a free trial period; and
  • notification by mail, email, or another method of the consumer’s choosing, to be sent to consumers if their long-term contract is set to renew to a “month to month” or longer subscription.

*Thirty-five percent of consumers have complained that they have signed up for an automatically renewing contract without realizing it. Likewise, *48 percent of consumers have had a free trial roll over into a contract without their knowledge. The time is long overdue for state legislators to step in and take action to ensure consumers are not tricked into costly and deceptive business practices.

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

###

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 statement on White House “Protecting Americans from Online Censorship” proposal

/in Consumer policy, Consumer Protection, Telecommunications/by

August 12, 2019

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, America’s pioneering consumer and worker advocacy organization, is urging the Trump Administration not to move forward on its reported proposal to require the Federal Communications Commission (FCC) and Federal Trade Commission (FTC) to regulate speech on the Internet. As reported, the draft proposal would severely curtail the protections that website operators receive under Section 230 of the Communications Decency Act. These protections are crucial to website operators’ abilities to moderate content, including hate speech, violence, and other objectionable content.

The following statement is attributable to John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League:

An open and well-moderated Internet is crucial to consumers’ ability to get the information they need to make informed marketplace decisions and to hold industry and government officials accountable. Nonetheless, the Trump White House seems determined to pursue a fairness doctrine for the Internet in order to placate a small, but vocal portion of the President’s base. In the name of protecting against largely fictitious ‘conservative bias,’ the Administration’s proposal would direct the independent FCC and FTC to exercise authority they don’t legally have and which their leaders have said they don’t want. If reports about the draft executive order are true, the results could be disastrous for consumers and free speech online. This proposal is deeply misguided. We urge the Administration to consign it to the dustbin of history.

###

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.

Calling an end to the health and humanitarian crisis at the border

/in Consumer policy, Consumer Protection, Corporate social responsibility, Health, Health policy/by

Nissa ShaffiFlorence Kelley, first general secretary of the National Consumers League (NCL), was a pioneer in progressive social reform during a time in our nation’s history that was defined by mass immigration and egregious health violations. 120 years later, we bear witness once again to the unconscionable transgressions occurring in migrant detention centers across the border with regards to immigrant rights and access to health care. 

At this very moment, people who are exercising their legal right to seek asylum, according to international and U.S. law, are being systemically dehumanized. The atrocities occurring at our border completely tarnish the social protections that NCL has historically fought to solidify.

On July 10, the House Oversight Committee held a hearing to examine the humanitarian crisis at the border. The investigation followed the release of a July 2 report by the Office of Inspector General (OIG) detailing the dangerous and unsanitary conditions migrant detainees are experiencing at Custom and Border Patrol (CBP) and Immigration Customs Enforcement (ICE) facilities.

Images of children sprawled across cold concrete floors in overcrowded holding cells, wrapped in nothing but flimsy mylar blankets, prompted members of Congress, immigration lawyers, and physicians to visit various migrant detention centers throughout Texas to witness the matter firsthand.

Visitors noted a stench that could be detected immediately upon entry into the facilities, which was attributed to detainees being sardined into holding cells, in conditions that have been classified as inhumane and in violation of international law. A majority of detainees have been denied access to basic toiletries like soap and toothbrushes to help them maintain their hygiene. Additionally, individuals have not been able to shower in weeks, are sleep deprived, and are housed in frigid temperatures in rooms that have been given the apt moniker of the “ICE Box.” Many migrants have claimed that they were wearing the same soiled clothes that they wore during their long passage into the country.

These facilities were not designed to house migrants for prolonged detainment. Regulations prohibit the detention of detainees for longer than 72 hours, yet OIG reported that migrants had been held indefinitely, some even as long as several weeks. The unsanitary conditions prevalent in the detention centers have resulted in outbreaks of the flu, lice, shingles, scabies, and chickenpox. The processing centers in the facilities are housed beyond infrastructural capacity, leading border officials to take desperate measures to hold detainees in cages and under overpasses. These dangerous conditions will inevitably advance the spread of disease, endangering the lives of detainees as well as the general public who will come into contact with CBP and ICE agents.

These facilities are privatized, for-profit migrant detention centers that function outside the purview of federal oversight and accountability. Shareholder interests call for incentivized cuts to medical staffing, which as a result, has led to cruel and negligent practices that have encouraged the spread of disease, the proliferation of trauma, and the violation of human rights.

NCL calls on Congress to address the harrowing health and human rights violations taking place at our borders. NCL strongly advocates for a principled, comprehensive immigration reform that treats all immigrants with respect and dignity, no matter their legal status in the United States. NCL’s immigration policy advocates to:

  • keep families together;
  • ensure a humane pathway to citizenship and builds upon the success of Deferred Action for Childhood Arrivals (DACA) to incorporate young immigrants into mainstream society; and
  • ensure effective enforcement that protects our borders, fosters commerce, and promotes the safe and legitimate movement of people and goods at our ports of entry.

To learn about NCL’s immigration policy, click here.

The National Consumers League calls on lawmakers to work together to enact humane immigration policy reform that genuinely encompasses the promise of American values. Congress must act swiftly and in the best interest of migrants detained to collectively bring an end to this humanitarian crisis.

NCL: Consumers should be able to access broadcast channels for free via Locast

/in Consumer Education, Consumer literacy, Consumer policy, Consumer Protection, Education, Telecommunications/by

August 5, 2019

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

Washington, DC—Last week, the four largest broadcast networks—ABC, CBS, Fox, and NBC—filed suit against Locast, a free streaming service operated by the non-profit Sports Fans Coalition NY. The networks’ lawsuit seeks to block Locast’s streaming of local broadcast programming. The suit alleges that Locast violates copyright laws by failing to compensate the networks for their programming.

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

Consumers can already legally obtain free over-the-air broadcast channels via an antenna on their roofs. We think broadcasters would be better off embracing an innovative technology that allows consumers to more easily access their ad-supported content.

To secure public accessibility of broadcast signals, the Copyright Act expressly permits non-profit organizations to retransmit free over-the-air broadcasts. Locast is operated by the non-profit Sports Fans Coalition NY as a free public service. NCL supports broad consumer choice for access to local broadcast channels.

This year alone, the four largest broadcast networks are expected to generate more than $10 billion in retransmission-consent fees from cable and satellite providers that carry the networks’ programs. These fees are largely passed onto consumers in the form of higher monthly cable and satellite bills. Along with advertising that networks and local television stations sell, retransmission fees support the production of critically important local news content as well as traditional entertainment programming. 

NCL and Sports Fans Coalition (SFC) have a history of working together on a range of important consumer issues. In 2014, together we successfully petitioned the Federal Communications Commission to repeal the Sports Blackout Rule. In 2018, we jointly urged the Federal Trade Commission to protect consumers in the live event ticketing marketplace by cracking down on deceptive “white label ticketing websites.” We have also worked with SFC to create a landmark “Sports Bettor’s Bill of Rights” to ensure that consumers are protected as more states move to legalize online sports betting.

###

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 statement on White House pathway for drug importation

/in Health, Health policy, Healthcare coverage, Insurance, Medication adherence/by

August 2, 2019

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

Washington, DC—As the nation’s pioneer consumer organization, the National Consumers League (NCL) strongly supports consumer access to safe, effective, and affordable prescription drugs. The recent announcement by the White House to open a pathway for importation of drugs from outside of the United States seems unworkable and poses safety and purity challenges.

Six years ago, the U.S. government enacted a safe system to “track and trace” drugs sold to U.S. consumers through the Drug Supply Chain Security Act. The law required, that by 2023, all drugs sold to U.S. consumers must have both a product identifier and a unique package code to allow Food and Drug Administration (FDA) and any buyer in the supply chain to obtain a comprehensive history of where the drug was manufactured and packaged. This secure supply chain system best ensures consumers are receiving medications that are not counterfeit or substandard.

“The recent announcement by the White House ignores the Drug Supply Chain Security Act and undermines the security of the U.S. pharmaceutical supply chain,” said Sally Greenberg, NCL executive director. “This new pathway for importation could easily lead to counterfeit or substandard drugs finding their way to consumer’s medicine cabinets, thus putting patient health and safety at risk.”

In addition to the safety risks posed by this new policy announcement, there are no guarantees that it will save consumers money. The proposal opens the door for states, pharmacies, and distributors to obtain the medications outside of U.S. borders, but it does not require that any cost savings from obtaining those “lower-priced” medications be passed on to consumers. So, even if safety concerns could be addressed, it is not clear that there will be any direct cost savings benefit to consumers.

The threat to public health is real. Counterfeit medications may contain the wrong active ingredient, the wrong amount of the active ingredient, no active ingredient, harmful ingredients, or even poisons such as mercury, road tar, or antifreeze. Counterfeit medications made with deadly ingredients have been found in more than 40 states across America, posing a significant public health threat.

“Allowing importation will only serve to exacerbate the challenge of preventing counterfeit drugs from reaching American patients,” said Greenberg.

NCL continues to advocate for more responsible strategies to ensure the affordability and accessibility of safe and effective prescription drugs.

###

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.