Congressman John Lewis, CFPB’s Richard Cordray to receive highest honor from pioneering consumer watchdog org – National Consumers League

/in imported/by

October 24, 2017

FDA’s Dr. Janet Woodcock to receive Florence Kelley Consumer Leadership Award

Contact: Cindy Hoang (202) 207-2832, cindyh@nclnet.org   

Washington, DC—The National Consumers League (NCL), the nation’s pioneering consumer and worker advocacy organization, will honor Georgia Congressman John Lewis and Consumer Financial Protection Bureau (CFPB) Director Richard Cordray with its highest honor, the Trumpeter Award, on Wednesday, October 25 in Washington, DC. The award has honored leaders in the fight for consumer and workers’ rights for more than 40 years, and past honorees include: Senator Ted Kennedy, the award’s inaugural recipient, as well as Labor Secretaries Hilda Solis, Robert Reich, and Alexis Herman, Senators Carl Levin and Paul Wellstone, Delores Huerta of the United Farm Workers, and other honored consumer and labor leaders. Last year’s recipient was Illinois Attorney General Lisa Madigan.

“The Trumpeter Award is given to leaders who have dedicated their lives to social justice and to fighting for those who cannot defend themselves. This year’s Trumpeter recipients, the legendary Georgia Representative and Civil Rights leader John Lewis, and the indomitable head of the CFPB, Richard Cordray, will join this esteemed group as true American heroes. Congressman John Lewis embodies these values throughout his six-decade career representing citizens of the state of Georgia and across the nation, in his pivotal role in the Civil Rights Movement, and in his continued work in Congress today,” said NCL Executive Director Sally Greenberg. “CFPB Director Cordray’s commitment to regulating industry practices that prey on the most vulnerable consumers have earned him universal respect. As first director of the CFPB, he has set an inspirational trail for others to follow.”

Florence Kelley Consumer Leadership Award

In addition to the Trumpeter Award, NCL will the honor the recipient of this year’s Florence Kelley Consumer Leadership Award: Dr. Janet Woodcock, Director of the Center for Research and Drug Evaluation at the U.S. Food and Drug Administration.

“Dr. Woodcock is a passionate advocate for American patients and consumers, an ally to patient advocacy groups, and a fearless leader at the FDA,” said Karin Bolte, NCL health policy director. “Dr. Woodcock has helped transform the FDA into the agency it is today, one that strives to put patients at the center of its decision-making. We are delighted to celebrate her leadership and the difference it has made for America’s health.”

The event will feature a reception, dinner, and speaking appearances by NCL leadership and the honorees, as well as Maria Cardona, CNN/CNNE Commentator & Principal of Dewey Square Group, and Ellen Sigal, Chairperson and Founder of Friends of Cancer Research.

MEDIA ADVISORY

What:  National Consumers League’s 2017 Trumpeter Awards
When: Wednesday, October 25, 2017 | 7 pm Dinner and Presentation of Awards

Where:
Omni Shoreham Hotel
2500 Calvert Street, NW
Washington, DC 20008 

Members of the media are welcome to attend this event but must RSVP. For questions or to RSVP: Call Cindy Hoang, (202) 207-2832 or Carol McKay, (724) 799-5392.

###

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 condemns Trump Executive Order undermining Affordable Care Act – National Consumers League

/in imported/by

October 13, 2017

Contact: NCL Communications, Cindy Hoang, (202) 207-2832, cindyh@nclnet.org

Washington, DC—The National Consumers League (NCL) condemns the Executive Order issued Thursday by President Trump that would undermine the Affordable Care Act, weaken or eliminate critical consumer protections, make it difficult for those with pre-existing conditions to afford health coverage, and destabilize the individual insurance market.

The Trump Administration’s Executive Order would allow Association Health Plans to offer coverage across state lines that would not be subject to state insurance regulations or the ACA’s requirement to cover the Essential Health Benefits, such as hospitalization; prescription drugs; pregnancy, maternity, and newborn care; mental health and substance use disorder services; preventive and wellness services; and other critical health services.

The availability of Association Health Plans would bifurcate the market, with healthy people buying skimpier, non-ACA compliant policies and sicker people seeking to buy more expensive, comprehensive plans. By thrusting people with pre-existing conditions into a separate risk pool, the Executive Order would result in a death spiral and a return to the pre-ACA days in which those with pre-existing conditions were unable to get affordable coverage on the individual market.

Ignoring the pleas of millions of consumers to protect their care, President Trump’s Executive Order is the latest in a long line of Trump Administration actions to undermine the Affordable Care Act — starting with Congress’ multiple unsuccessful attempts to repeal the law, the President’s refusal to guarantee payment of the Cost-Sharing Reduction subsidies that allow people to afford health coverage, and the sabotage of Open Enrollment by cutting the enrollment period in half, slashing federal support for advertising and navigators, and completely shutting down HealthCare.gov for 12 hours every Sunday throughout Open Enrollment.

“President Trump’s actions are inexcusable,” said Sally Greenberg, NCL executive director. “Rather than promoting Association Health Plans, the Trump Administration should allow Congress to continue the bipartisan process started by Senators Lamar Alexander (R-TN) and Patty Murray (D-WA) in the Senate Health, Education, Labor, and Pensions Committee to strengthen the ACA and stabilize the health insurance marketplace so that all consumers can have access to quality, affordable healthcare.”

###

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.

Major consumer & passenger rights groups launch ad opposing air traffic privatization – National Consumers League

/in imported/by

October 6, 2017

Contact: NCL Vice President of Public Policy, Telecommunications, and Fraud, John Breyault, (202) 207-2819, johnb@nclnet.org

Washington DC—Today, leading airline passenger, consumer and rural organizations, including National Consumers League, FlyersRights.org, Consumer Action, the Alliance for Aviation Across America and In The Public Interest launched an ad to set the record straight on the airlines’ push to privatize the air traffic control system. The ad specifically aims to correct a number of misleading claims put forth by the airlines and their paid front groups that privatization would somehow benefit passengers or communities.

Under the airlines’ privatization plan, oversight of air traffic control would be transferred from the FAA to a corporate board essentially controlled by industry with zero seats for consumer or passenger rights organizations. This unaccountable body would have unlimited power to raise fees and taxes on passengers, cut critical access to community airports and make decisions based on their own business priorities instead of in the interest of safety and the public.

“From major computer meltdowns, lost luggage and children, and dragging their passengers through the aisles of aircraft, the airlines have repeatedly demonstrated an inability to manage their own operations, let alone oversee the world’s busiest air traffic control system. They point the fingers at air traffic control, but the DOT’s own data confirm that the airlines themselves are responsible for the vast majority of delays” said Paul Hudson, President of FlyersRights.org

Notwithstanding the efforts by airline-backed lobbying and PR groups to mislead the public, a wide range of consumer, business, labor stakeholders and notable experts strongly oppose privatization.

“Our air traffic control system is a public good that should not be gifted over to the same big airlines that assault and drag paying customers off flights, shrink seats to medically unsafe proportions and invent increasingly outrageous new fees”; said Linda Sherry, Director of National Priorities at Consumer Action.

John Breyault, Vice President of Public Policy at National Consumers League stated: “In just the past few weeks we’ve witnessed big airlines engaging in troubling hurricane-related price gouging to go along with the ongoing passenger abuses and unsavory marketing and pricing practices that harm consumers. This industry continues to put profits before passengers; based on their track record, they would likely do the same if handed control of our air traffic system.”

“Privatizing air traffic control system would allow the airlines to run it for their own benefit and further direct investment and infrastructure away from thousands of smaller communities around the country, including many towns that have already lost commercial air service,” said Selena Shilad, Executive Director of the Alliance for Aviation Across America.

“Why would we take a critical piece of our national, public infrastructure and turn it over to one, self-interested private interest in the system, without any oversight from Congress? The airlines continue to be the only ones pushing for this risky idea, because they are the only ones that would benefit.  =Our national airspace system should be operated in the public’s best interest, not any one customer’s private interest,” stated Donald Cohen, Executive Director of In the Public Interest.

To view the ad, 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.

NCL applauds pro-consumer additions to autonomous vehicle (AV) legislation – National Consumers League

/in imported/by

October 4, 2017

Contact: NCL Communications, Cindy Hoang, (202) 207-2832, cindyh@nclnet.org

Washington, DC—The National Consumers League (NCL) is applauding a series of positive changes adopted by the Senate Commerce Committee today on a bill that will set the regulatory and legal framework for the deployment of autonomous vehicles in America in for years to come. The bill, the American Vision for Safer Transportation through Advancement of Revolutionary Technologies Act, or AV START Act (S. 1885), is still undergoing changes that the advocates hope will make the AV deployment safer and more consumer-friendly.

Sally Greenberg, NCL executive director said: “Thanks to robust consumer advocacy and the support of consumer champions on the Committee, including Ranking Member Nelson (D-FL), Senators Blumenthal (D-CT), Markey (D-MA), and Baldwin (D-WI) and many others, the bill is much improved, though we still have concerns about AV rollout’s impact on consumer safety protections. We are very pleased to finally have a provision that will address the problem of children dying in hot cars, and provisions giving consumers access to information about AVs.”

NCL, along with other consumer and auto safety organizations, raised concerns at a press conference on October 3 about the bill, including that it contained provisions that would weaken auto safety laws, preempt localities from protecting their own citizens, restrict the right of consumers to go to court if they are injured by faulty designs, and generally leave consumers at risk. NCL also worked with a coalition that included members of industry who share concerns about consumers controlling their data related to AVs and support a provision setting up a federal commission to study the issue. Such a commission would include consumer advocates with expertise on safety and privacy – and make recommendations to Congress on how best to protect the privacy of those data. Many – though not all – of those concerns were addressed at the Senate Commerce Committee markup today.

NCL noted that consumer advocates remained concerned by how the legislation would undermine some of the safeguards on which consumers rely and intend to work with senators to further improve the bill so that it sets up a safety framework that better protects consumers in AVs. “We are getting there,” said Greenberg. “All in all, the bill the Committee adopted today is a vast improvement over the initial drafts. We are grateful to members of the Committee who embraced the need for far greater consumer and privacy protections and supported these critical improvements to the bill.”

###

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: Hands-off approach to autonomous vehicles is ‘dangerous’ – National Consumers League

/in imported/by

October 2, 2017

Contact: NCL Communications, Cindy Hoang, (202) 207-2832, cindyh@nclnet.org

Washington, DC—In a letter to Congress, the National Consumers League (NCL) is expressing grave concerns about Senate legislation to promote the deployment of HAVs or “Highly Autonomous Vehicles.” The bill — S. 1885, the AV START Act — sponsored by Senate Commerce, Science and Transportation Committee Chair and Ranking members Senators John Thune (R-SD) and Gary Peters (D-MI), would alter existing consumer protection laws and regulatory authority for auto safety in favor of speeding the rollout of these autonomous vehicles.

NCL’s letter to the Committee outlines concerns that the bill does not adequately protect consumers or ensure that the self-driving cars of the future will be safe. The letter noted that Congress seems willing to allow massive deployment of this new and –in many ways untested -technology with no strong federal or state oversight.

On Wednesday, Oct. 3, NCL Executive Sally Greenberg will participate in a press conference with a coalition of leading safety and consumer advocates, and families of victims of deadly vehicle defects, to call on the U.S. Senate Committee on Commerce, Science and Transportation to stop and fix this dangerous bill.

NCL notes that this legislation would:

  • Allow untold millions of cars on the market that are exempt from federal safety standards and do not adequately protect occupants in a crash
  • Block states and local highway officials from enforcing their own laws through a sweeping provision – federal preemption – that prevents state and local entities from supervision and regulation of the safe operation of vehicles on their roadways
  • Ignore the auto industry’s long history of introducing dangerous and defective vehicles into the marketplace by taking a largely hands-off approach to the deployment of HAVs, which NCL notes, will undoubtedly have design flaws and be involved in fatal accidents.

NCL’s letter noted the auto industry’s long and unfortunate history of introducing dangerous automotive vehicle designs into the marketplace, including Ford Pinto’s exploding gas tank, the Chevy Corvair collapsing tires, the Ford Explorer tires detreading at high speeds, huge blind zones causing backovers of toddlers, ignition switch defects causing untold deaths, and defective airbags impaling drivers.

The letter sent by NCL on S 1885, the AV START Act,” NCL stated the following additional concerns:

  • The bill has no provisions for a public database – despite requests from consumer advocates – so the public can see impending hazards that will be identified when HAVs are deployed and track communications and responses about AVs between NHTSA and manufacturers. Other federal safety agencies, like the Consumer Product Safety Commission with *www.saferproducts.gov  and the Consumer Financial Protection Bureau, https://www.consumerfinance.gov/data-research/consumer-complaints/, make such information publicly available.
  • Safety exemptions for vehicle safety are far too numerous. They must be strictly limited in scope and any increases must be controlled based on real-world safety performance.
  • NHTSA must be given imminent hazard authority to protect against potentially catastrophic AV defects and the ability to institute recalls quickly.
  • NHTSA must be given adequate and sufficient resources to properly regulate AV technology and should establish an office dedicated to ensuring oversight and accountability.
  • NHTSA needs to be able to hire experts in automotive software technology who are independent from the industry to oversee the safe deployment of AVs
  • Consumers should have information about vehicles at point of sale or upon hiring the vehicle through ride sharing services

“While we are excited about the potential for autonomous vehicles to improve mobility and safety, it cannot be done in a vacuum. This is new and untested technology. Now more than ever, in these early stages, we need strong oversight and regulation to track problems and ensure consumers’ lives aren’t jeopardized when the inevitable happens: systems go down, hacking occurs, software malfunctions, crashes happen. Under S. 1885, the AV START Act, the protections aren’t there.  We are calling on Congress to address this problem, to give NHTSA authority to develop a safety net for this critical technology and provide the resources needed to take action quickly,” said NCL Executive Director Sally Greenberg.

###

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.

 

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

FDA agrees to enforce menu labeling rule in May 2018 – National Consumers League

/in imported/by

September 27, 2017

CSPI and National Consumers League Put Litigation on Hold After Reaching Agreement with Federal Government

Media contact: Jeff Cronin, CSPI: 202-777-8370; Cindy Hoang, NCL: 202-207-2832; Peter Lehner, Earthjustice: 212-845-7389

Washington, DC—U.S. District Court Judge Emmet Sullivan today approved an agreement that paves the way for the Food and Drug Administration to begin enforcing regulations requiring chain restaurants, grocery stores, and convenience stores to include calorie counts on menus in May 2018. The Center for Science in the Public Interest and the National Consumers League sued the FDA in June after the agency abandoned an earlier enforcement deadline only one day before enforcement was due to begin. The nonprofit law firm Earthjustice, which represents CSPI and NCL, and the Department of Justice agreed to stay further proceedings in that lawsuit following an August 25th statement from FDA Commissioner Scott Gottlieb providing assurance that there will be no further delay and no changes to the menu labeling requirements.

Longtime advocates for menu labeling say that the agreement gives much needed clarity both to consumers, who overwhelmingly want and use calorie and other nutrition information, and to companies, many of which are already making calorie counts available to the public on their menus or websites.

“Since Americans are getting more food outside the home than ever before, having access to calorie information at chain restaurants is important for consumers who want to maintain a healthy weight and reduce their risk of diet-related disease,” said CSPI vice president for nutrition Margo G. Wootan. Wootan was recently named by Eating Well magazine as one of the *2017 American Food Heroes for her work on menu labeling.

“Congress passed a law requiring menu labeling more than seven long years ago, and the FDA finalized its regulations almost three years ago,” said Sally Greenberg, executive director of the National Consumers League. “Responsible companies have already invested in compliance. As frustrating as this process has been, we’re glad that the end of the long campaign for menu labeling is now in sight.”

The FDA finalized the menu labeling rule in 2014, with compliance and enforcement due to begin before the end of 2015. The agency subsequently delayed enforcement until May 2017 and then, in the challenged rule, until May 2018. Today’s agreement provides that the lawsuit challenging the delay will proceed only if the FDA announces an additional delay of enforcement or fails to issue guidance to industry by the end of 2017. The guidance will clarify the menu labeling rule and aid implementation—but cannot weaken the rule’s requirements.

“Americans want and deserve to know what they’re eating,” said Earthjustice senior attorney Peter Lehner. “So it is good news that the FDA has affirmed its commitment to ensuring that chain restaurants, supermarkets, convenience stores, movie theaters, and similar food retail establishments provide calorie and other nutrition information to customers.”

Calorie labeling at restaurants isn’t entirely out of the woods, proponents caution. A bill pending in Congress, the so-called Common Sense Nutrition Disclosure Act, would undermine the Administration’s implementation of menu labeling by exempting take-out chains, including pizza restaurants, and others from some of the requirements, and by letting retailers use arbitrary serving sizes to mask total calorie content. The bill would also let supermarkets that sell restaurant-type food hide calorie information in less-visible locations.

“Most of the biggest chain restaurants are already providing calories on menus and menu boards,” Wootan said. “We hope Congress resists the efforts of outlier companies, notably Domino’s and other pizza chains, to weaken menu labeling.”

###

The Center for Science in the Public Interest is a nonprofit health-advocacy group based in Washington, DC, that focuses on nutrition and food safety.  CSPI is supported largely by subscribers to its Nutrition Action Healthletter and by foundation grants.

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.

Earthjustice is the premier nonprofit environmental law organization. We wield the power of law and the strength of partnership to protect people’s health, to preserve magnificent places and wildlife, to advance clean energy, and to combat climate change. We are here because the earth needs a good lawyer.

 

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

LifeSmarts announces ‘Year of Health and Safety’ for national consumer education / scholarship program – National Consumers League

/in imported/by

September 26, 2017

Contact: NCL Communications, Cindy Hoang, (202) 207-2832, cindyh@nclnet.org

Washington, DC–The 24th season of LifeSmarts, a national scholarship competition and educational program coordinated by the National Consumers League (NCL), kicked off earlier this month at LifeSmarts.org, where students learn about real-life consumer issues and compete to win prizes and scholarships. Today, NCL announced that the 2017-2018 LifeSmarts program year will be the “Year of Health and Safety,” with special emphasis on health-related curriculum and competitive opportunities, underwritten by a grant from McNeil Consumer Healthcare.

Today LifeSmarts is unveiling a new community service opportunity for high school students – the LifeSmarts OTC Medicine Safety Mentoring Project. LifeSmarts provides materials and curriculum, bolstered by educational resources produced by Scholastic, to enlist high school students to become mentors for middle school students to help them understand the wise use and safe storage of over-the-counter medicines.

“We are so excited to declare 2017-18 the ‘Year of Health and Safety,’” said national Program Director Lisa Hertzberg. “We know LifeSmarts gives students the skills they need to succeed as adults, and we see students applying what they learn immediately at home and in their communities. We are thrilled to be able to give special focus to this year on health and safety lessons and look forward to rolling out new resources for teachers and opportunities for student participants.”

Besides health and safety, LifeSmarts focuses on four other main content areas: consumer rights and responsibilities, personal finance, technology, 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 advance to the national championship held each year in a different American city. The 2018 National LifeSmarts Championship will take place April 21-24 in San Diego. Winning teams 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. More than 100,000 students are expected to participate in the program in the 2017-18 season. LifeSmarts is active in all states and the District of Columbia, where NCL is headquartered.

“We are excited to have the opportunity to focus on health and safety for consumers at this age, when they are beginning to make decisions for themselves and influencing decisions made by their parents,” said Sally Greenberg, executive director of NCL. “Too often, traditional high school curriculum fails to teach students vital information to become successful adults, and LifeSmarts helps to close that gap.” 

“Johnson & Johnson Consumer Inc. is proud to be a long-standing supporter of the LifeSmarts program and thrilled about the OTC Medicine Safety Mentoring project. As a manufacturer of over-the-counter medicines, Johnson & Johnson Consumer Inc. believes that the LifeSmarts OTC Medicine Safety Mentoring Project can help instill a healthy respect for all medicines in adolescents by teaching core concepts on the responsible use and safe storage of medicines. In doing so, we are building a healthier future for our adolescents, and helping to prevent medicine misuse, errors, and adverse events,” said Ed Kuffner M.D., Chief Medical Officer, Johnson & Johnson Consumer.

In addition to hosting the official LifeSmarts competition, LifeSmarts.org provides resources for teachers 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.

Visit LifeSmarts.org for more information.

LifeSmarts: Learn it. Live it.

###

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 urges the Senate to reject the Graham-Cassidy bill – National Consumers League

/in imported/by

September 25, 2017

Contact: Cindy Hoang, (202) 207-2832, cindyh@nclnet.org

Washington, DC—The National Consumers League (NCL), which has been working to support health care for all Americans since our founding in 1899, is strongly opposed to the Graham-Cassidy bill to repeal and replace the Affordable Care Act (ACA). Like previous repeal bills rejected by the Senate, this proposed legislation will take health coverage away from an estimated 32 million Americans and decimate our health care system as we know it.

Graham-Cassidy is even more harmful than previous ACA repeal and replace bills. Provisions of the bill include the elimination of cost-sharing reductions that help low-income Americans pay for their coverage, and waivers of key consumer safeguards such as the essential health benefits, minimum coverage requirements, and the non-discrimination clause protecting Americans with pre-existing conditions.

Perhaps most egregious are the massive cuts to Medicaid, which covers 70 million Americans. Medicaid expansion is abruptly nixed, leaving millions of vulnerable patients and consumers without coverage. The shift to a per-capita cap will undoubtedly burden states with a huge financial liability, forcing them to choose between raising taxes to meet funding needs, cutting funding from critical programs such as infrastructure or education, or imposing devastating cuts to Medicaid eligibility, benefits, and coverage for millions. 

The Graham-Cassidy bill also represents yet another attempt to railroad legislation through Congress, absent bipartisanship and public discourse. A bill that would fundamentally change our health care system and affect one-sixth of our economy deserves transparency, and more than a few weeks of debate. NCL agrees with Senator John McCain’s opposition to the bill and his acknowledgment that “we could do better working together, Republicans and Democrats, and have not yet really tried.”  Truer words were never spoken. 

NCL joins with Senator McCain in urging the Senate to reject the Graham-Cassidy bill and instead explore bipartisan solutions to strengthen our healthcare system, and particularly support the constructive and bipartisan dialogue led by Chairman Lamar Alexander and Ranking Member Patty Murray in the Senate Health, Education, Labor, and Pensions Committee aimed at stabilizing the insurance market. We will continue to stand alongside our colleagues in the public health and patient advocacy communities to protect access to quality and affordable health care for every American.

###

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.

 

GAO airline fee report shines light on fleecing of passengers, rebuts industry claims – National Consumers League

/in imported/by

September 22, 2017

Contact: John Breyault, NCL, (202) 207-2819, johnb@nclnet.org or Cindy Hoang, (202) 207-2832, cindyh@nclnet.org

Washington, DC—New government data flies in the face of airline industry claims that it’s never been a better time to fly, said the National Consumers League (NCL) today. The report, released by the U.S. Government Accountability Office (GAO) examined the rapid growth in nickel-and-diming by the airline industry, which has piled billions of dollars of fees on the backs of the flying public.

“The GAO report reflects many of the concerns that consumer groups like NCL have expressed about how the airlines are increasingly fleecing passengers via so-called ‘ancillary fees.’” said NCL Executive Director Sally Greenberg. “This new data contradicts the industry myth that ancillary fees make flying cheaper. The report exposes the truth about these fees — that their explosive growth has created a massive profit center for the airlines.”

Highlights from the report include:

  • The growth of ancillary fees has created a giant tax break for airlines, depriving airports of much-needed revenue needed for maintenance and upgrades. For example, the GAO estimated that in 2016 the government lost out on $309 million in tax revenue thanks to baggage fees being exempted from taxation.

  • Airlines’ fee revenues increased in every reported category. From just two fee categories — baggage fees and change/cancellation fees — the airlines collected $7.1 billion 2016 alone, an increase of 13 percent since 2010.

  • Contrary to industry claims that fees help airlines provide a lower-cost service to the flying public, the GAO found that consumers who pay to check a bag pay more in total to fly than they did when a checked bag was included as part of the fare.

  • The study also identified glaring differences in airlines’ a la carte systems, which could leave many consumers frustrated and confused. Different airlines are offering “preferred seats” options but are providing different amenities in their packages. This creates a scenario where a consumer could purchase a preferred seat expecting additional legroom as they have come to expect on another airline, only to receive a seat with minimal leg room.

“The nickel-and-diming of passengers by the airline industry is a huge pain point for consumers,” said John Breyault, NCL vice president of public policy, telecommunications and fraud. “Yet, the airlines want us to believe that these fees allow consumers to fly for less and that consumers don’t mind them. Those industry claims are mythology.”

To help even the playing field between passengers and airlines, the National Consumers League supports the FAIR Fees Act, sponsored by Senator Ed Markey (D-MA) and Senator Richard Blumenthal (D-CT). The legislation has received bipartisan support and is included in the Federal Aviation Administration’s reauthorization bill, which is pending in the U.S. Senate. The FAIR Fees Act would require that fees for baggage, ticket changes, cancellations, and other services be justified by cost to the airlines. NCL believes that this common-sense consumer protection bill would help return sanity to air travel, help end the airlines’ massive tax breaks, and increase competition between the Big Four airlines at a time that they are seeking even greater levels of control over the nation’s air traffic control system.

###

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: Congress should move to address outrageous Equifax conduct in wake of breach – National Consumers League

/in imported/by

September 19, 2017

Contact: John Breyault, NCL, (202) 207-2819, johnb@nclnet.org or Cindy Hoang, (202) 207-2832, cindyh@nclnet.org

Washington, DC – The National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, is calling on Congress, in the strongest possible terms, to hold data brokers responsible for the massive increase in consumers’ data security risk stemming from the breach of 143 million records at Equifax. Since the revelation of the breach earlier this month, it has been reported that Equifax failed to heed warnings about well-known security vulnerabilities in critical systems.

“Equifax was made aware of this exploitable vulnerability, given a patch to prevent it, and then sat on its hands for weeks without action,” said Sally Greenberg, NCL executive director. “What is to prevent any company that collects our most private data from exposing millions of consumers to theft if there are few serious consequences? Where are the incentives to protect our data? That is what is lacking today and why we see breach after breach.”

“Congress needs to act. We need a federal law that holds companies accountable for keeping our information safe. And there must be dire consequences when they fail to do so through sheer negligence,” Greenberg said. “Such consequences should include automatic repayment for damages, regulation of the data brokers, and potentially even criminal liability.”

NCL is calling on Congress to act; we support those consumer champions in Congress who have introduced legislation that would begin to address consumers’ vulnerability to breaches. These include:

  • Freedom From Equifax Exploitation (FREE) Act – NCL applauds Senator Schatz (D-HI) and Senator Warren (D-MA) for introducing legislation that will help consumers reduce their risks of identity fraud. The bill creates a uniform federal process for obtaining and lifting a credit freeze for free. In addition, consumers can receive one additional free credit report and get a refund for any fee credit reporting agencies levied against them when they froze their credit to prevent identity theft.

  • Data Broker Accountability and Transparency Act of 2017 – This common-sense privacy and security legislation, introduced by Senators Blumenthal, Franken, Markey, and Whitehouse, would allow consumers to monitor brokers’ collection of personal data for any inaccuracies in a free and easy-to-use way through a centralized website. The bill also requires data brokers like Equifax to develop and maintain robust privacy and data security programs and provide prompt notice in the event of breaches.

While NCL supports these bills, we await passage of a long-awaited national data security standard, which includes data breach notification requirements modeled after strong state laws in places like Illinois and California. As massive data breaches like Equifax’s become more common, exposing hundreds of millions of consumers to identify theft and other fraud, the need for this legislation will only become more critical. It is long past time for Congress to take action.

###

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.