March 16, 2018

Contact: NCL Communications, Carol McKay, carolm@nclnet.org, (202) 207-2831

Washington, DC–In response to the news that the U.S. Department of Labor’s (DOL) fiduciary rule was struck down, in a 2-1 decision by two judges on the 5th Circuit Court of Appeals, Sally Greenberg, executive director of the National Consumers League, has issued the following statement: 

“The Fifth Circuit Court of Appeals, in a 2-1 vote with Chief Justice Carl Stewart offering a spirited dissent,[1] has issued a legally flawed decision that undoes a critically important Labor Department rule intended to protect the financial interests of retirees and other investors. Simply put, the DOL rule requires financial advisors to put the interests of their clients first. This seems pretty straightforward, but the Chamber of Commerce and other industry interests have consistently opposed this common sense requirement.

The majority misapplied the law, issued an opinion that conflicts with the decisions of every other court that has considered the rule, and discounted the dramatic changes in the retirement landscape over the last 40 years. The results could potentially cost retirement savers as much as $17 billion annually.

The Fifth Circuit’s decision is a setback for all investors, especially those planning for or currently in retirement. It also threatens the Labor Department’s ability to protect investors now and in the future. We urge the Justice Department to appeal this decision, put retirement savers’ interests first, and defend DOL’s authority to impose reasonable standards on those who make a living investing other people’s money.”

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[1] Judge Stewart notes, “That the DOL has extended its regulatory reach to cover more investment-advice fiduciaries and to impose additional conditions on conflicted transactions neither requires nor lends to the panel majority’s conclusion that it has acted contrary to Congress’s directive.”

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About the National Consumers League
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit https://nclnet.org.

March 13, 2018

Contact: NCL Communications, Carol McKay carolm@nclnet.org, (202) 207-2831

Washington, DC—The National Consumers League (NCL) today condemned the poor training and lack of oversight that contributed to the reported death of yet another beloved family pet on Monday’s United Airlines Flight 1284 from Houston to New York. The following statement is attributable to NCL Executive Director Sally Greenberg:

“Incidents like this one are inexcusable, and every member of the flying public should be outraged at United’s callous disregard for the safety of this family’s beloved pet. Consumers whose pockets are already being pinched by billions of dollars worth of add-on fees should not also have to worry about whether their pets will survive a flight. United was right to quickly apologize and take responsibility for this shocking event, but more needs to be done to ensure that this doesn’t happen again. United should invest in better training for its flight attendants so that they follow proper procedures regarding the safe transportation of pets and other animals. For the past two years, United has had the worst record on pet safety in the airline industry. The Department of Transportation needs to take seriously the issue of pet safety on United and other carriers and conduct a full investigation of this and other incidents of pet injuries and deaths on board the nation’s airlines.”

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About the National Consumers League
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit https://nclnet.org.

March 8, 2018

Washington, DC–The National Consumers League is deeply concerned by the Trump Administration’s proposed rule that would broaden the purview of Association Health Plans (AHPs) and significantly alter the way in which they are regulated. This directive is another step towards the dismantling of the Affordable Care Act (ACA) under the guise of promoting “consumer choice,” and counteracts efforts to realizing a health system in which every American has access to quality, affordable health care.

Association Health Plans allow affiliated small businesses and employer trade associations to band together to sell low-cost plans to the individuals they represent. The proposed rule expands the definition of “employer,” which will allow businesses, associations, and self-employed individuals — regardless of affiliation — to join together for the sole purpose of offering health insurance.

While AHPs are less expensive, these savings are achieved through eliminating vital consumer protections and offering significantly less coverage. Under the proposed rule, AHPs will not have to adhere to the same standards as ACA-compliant plans, including the provision of essential health benefits that guarantee coverage of items and services such as mental health treatment, maternity and newborn care, and prescription drugs. They would also be exempt from cost-sharing rules that cap out-of-pocket spending on deductibles, copays, and coinsurance. Unfortunately, many consumers who buy these plans for their low premiums often do not realize until their healthcare needs change that they have purchased a plan that will not cover certain services. Consumers may be forced to forgo necessary care because of a prohibitive price tag or be left with astronomical debt due to the cost of uncovered services.  

Moreover, bolstering AHPs as a suitable alternative to ACA-compliant plans undermines and destabilizes the individual marketplace through heightening adverse selection. AHPs would likely attract younger and healthier individuals, exacerbating the risk pool, and leaving older, sicker individuals who need more robust care vulnerable to skyrocketing premiums and insufficient plan choice. The proposed rule also allows AHPs to establish rates or preclude coverage of certain services based on health status, work industry, age, or gender, which unduly places a broad range of consumers at risk for higher out-of-pocket costs.  

Prior to regulations established by the ACA, AHPs were historically wrought with fraud and predatory practices that left consumers with a litany of pervasive negative financial and health outcomes. The National Consumers League worries that the Trump Administration’s proposed rule would once again expand the pathway for AHPs to operate in a manner that puts consumer protection on the backburner and affordable health care out of reach for so many among us.  We remain committed to ensuring every American has meaningful health coverage and will continue to work with our colleagues to explore ways we can expand access to care without compromising quality.  

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About the National Consumers League
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit https://nclnet.org.

February 8, 2018

Contact: Reid Maki, Child Labor Coalition, (202) 207-2820, reidm@nclnet.org 

Washington, DC–The Child Labor Coalition (CLC) today joins nearly 30 NGOs and trade unions from around the world in calling on the jewelry industry to ensure responsible sourcing of precious metals and gems. One million children toil in mines, often extracting metals, including gold and silver, and gems like jade, emeralds, and diamonds. The work is extremely hazardous, putting children at risk of serious injury and death. Many child miners use toxic substances such as mercury that can cause severe damage to their developing neurological systems. Mining also causes profound ecological damage in many communities, polluting waterways and soil and endangering the health of communities.

“Consumers purchase nearly $300 billion in jewelry each year,” said Sally Greenberg, executive director of the National Consumers League (NCL) and co-chair of the CLC, whose 38 member organizations have worked to reduce child labor around the world for nearly three decades. “It’s time for jewelry companies to do more to provide consumers with jewelry that isn’t tainted with the scourges of child labor and forced labor. Existing mechanisms to clean up this supply chain have not gone far enough. It’s time for greater transparency. Jewelry companies must take responsibility for their supply chains.”

“The prevalence of child labor in the jewelry supply chains is a major concern,” said Reid Maki, NCL’s director of child labor advocacy and coordinator of the CLC. According to the U.S. Department of Labor, child labor is found in gold mining in 21 countries. Child labor is also used to produce silver in Bolivia, rubies and jade in Burma, and diamonds in six African countries. In the Philippines, children do compression mining of gold, submerged under muddy water while they breathe air through flimsy plastic hoses.

Today, the NGOs and trade unions are issuing a Call to Action to the jewelry industry calling on companies to:

• Put in place and implement a robust supply chain due diligence policy;
• Ensure full chain of custody over gold and diamonds by requiring evidence of business transactions and their transport routes from their suppliers;
• Assess and respond to human rights risks throughout their supply chains, and ensuring that workers have a right to unionize and access to effective remedy;
• Use independent third-party audits;
• Publicly report on their human rights due diligence on an annual basis;
• Publish the names of gold and diamond suppliers and their independent third-party audit mechanisms;
• Actively seek gold and diamonds from artisanal and small-scale mines that are not associated with human rights violations and willing to formalize;
• Improve human rights conditions in artisanal and small-scale mining communities;
• Support multi-stakeholder initiatives designed to strengthen responsible minerals sourcing and work with mining cooperatives and trade unions.*

“Through this ‘Call to Action’ and the accompanying campaign, we hope to see real engagement and transformation of the jewelry industry,” said Judy Gearhart, executive director of the International Labor Rights Forum and chair of the CLC’s International Issues Committee.

The CLC also applauds Human Rights Watch’s new report, “The Hidden Cost of Jewelry: Human Rights in Supply Chains and the Responsibility of Jewelry Companies,” which examines the sourcing of gold and diamonds by 13 major jewelry and watch brands that generate more than $30 billion in annual revenue in the United States.

*The campaign action steps are spelled out in greater detail by Human Rights Watch on its web site.

About the Child Labor Coalition

The Child Labor Coalition, which has 38 member organizations, represents consumers, labor unions, educators, human rights and labor rights groups, child advocacy groups, and religious and women’s groups. It was established in 1989, and is co-chaired by the National Consumers League and the American Federation of Teachers. Its mission is to protect working youth and to promote legislation, programs, and initiatives to end child labor exploitation in the United States and abroad. The CLC’s website and membership list can be found at StopChildLabor.org.