NCL applauds Uber’s decision to allow tips for drivers – National Consumers League

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July 20, 2017

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

Washington, DC—The National Consumers League (NCL) applauds Uber for moving forward this week on its pledge to provide riders with the option to tip their drivers.

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

“It seems Uber is going through a reboot with an upper-management overhaul and new leadership. This is a positive step in what we hope will be some new thinking on what this pioneer in ‘disruptive technology’ can bring to American consumers and workers. Polls show riders want the option to tip drivers and we believe this action will be well received by the public. It is also positive that Uber drivers will reap benefits in the form of higher wages. We look forward to learning about new Uber initiatives to improve rider and driver experience.”

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About the National Consumers League

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

NCL opposes Cruz amendment to the Better Care Reconciliation Act – National Consumers League

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July 18, 2017

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

Washington, DC—The National Consumers League (NCL) joins with our colleagues in the health advocacy community in expressing our opposition to the Better Care Reconciliation Act (BCRA) and Senator Ted Cruz’s (R-TX) amendment, which makes a bad bill even worse. The Cruz amendment would allow insurers to sell health plans on the individual marketplaces that do not comply with the Affordable Care Act’s (ACA) consumer protections as long as they also sold compliant plans.

NCL is concerned that the Cruz amendment 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 amendment could 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.

Among other provisions, non-ACA compliant plans would not be required 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. Insurers would be allowed to charge those with pre-existing conditions exorbitant premiums for coverage, or deny coverage outright. They could also impose annual and lifetime limits on coverage. 

In a July 14 letter, America’s Health Insurance Plans and the Blue Cross Blue Shield Association expressed their strong opposition to the Cruz amendment, stating: “It is simply unworkable in any form and would undermine protections for those with pre-existing medical conditions, increase premiums and lead to widespread terminations of coverage for people currently enrolled in the individual market.”

NCL Executive Director Sally Greenberg stated: “In addition to presenting insurmountable obstacles to coverage for those with pre-existing conditions, the Cruz amendment is an invitation to fraud and the selling of junk plans where consumers pay for a policy that doesn’t cover any real healthcare services. We join with our colleagues in opposing the Cruz amendment and urge Congress to reject the BCRA and similar legislative proposals that would give a green light to fraudsters offering junk health insurance while taking access to solid healthcare services away from millions of Americans.”

NCL is encouraged by the latest news that the harmful BCRA has been pulled from Senate consideration. We will continue to work with our colleagues to protect the Affordable Care Act and oppose passage of similar legislation to the BCRA and the Cruz amendment.

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About the National Consumers League

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

Consumer groups call on House to oppose pyramid scheme promotion amendment – National Consumers League

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July 18, 2017

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

Washington, DC—A broad coalition of consumer and Hispanic advocacy organizations is calling on the United States House of Representatives to oppose efforts to weaken the Federal Trade Commission’s (FTC) ability to protect consumers from fraudulent pyramid schemes. On Thursday, July 13, an amendment offered by Congressman John Moolenaar (R-MI) was added to the House Financial Services and General Government Appropriations bill which would eliminate long-standing requirements that direct selling companies establish a viable retail business instead of relying on a churning base of new recruits.

“The courts have consistently stated that the critical difference between a legitimate MLM business and a pyramid scheme is that a MLM’s revenues must come primarily from the sale of products and services to retail customers unaffiliated with the business opportunity,” wrote the groups. “Unfortunately, the Moolenaar amendment would undermine this critical tenet and create numerous carve-outs and exemptions that would prevent the FTC from prosecuting all but the most blatantly fraudulent pyramid schemes.”

While the Moolenaar amendment purports to establish a federal definition for “pyramid promotional schemes,” the language in fact blurs the line between legitimate business opportunities and illegal pyramid schemes. The groups urged Speaker Paul Ryan (R-WI) and Minority Leader Nancy Pelosi (D-CA) to support removing the Moolenaar amendment from the financial services appropriations bill when it comes to the House floor for a vote. 

“The Moolenaar amendment was slipped into the appropriations bill in the dead of night,” said John Breyault, Vice President, Public Policy, Telecommunications, and Fraud at the National Consumers League, which organized the letter. “This direct selling industry knows that this bill stands little chance of becoming law on its own, so instead they are trying to hide it in must-pass legislation. If the bill is as pro-consumer as they would like us to believe, why are they trying to sneak it through at the last minute? The answer is that they know it is a gift to an industry with a long history of pyramid scheme behavior that would relieve it of any meaningful oversight by the FTC.”

Signatories on the letter included Consumer Action, Consumers Union, Consumer Federation of America, Consumer Watchdog, League of United Latin American Citizens, National Association of Consumer Advocates, National Consumer Law Center (on behalf of its low income clients), National Consumers League, Public Citizen, U.S. PIRG, William W. Keep, PhD, and Peter J. Vander Nat, ​PhD.

To view the full letter, click here.

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About the National Consumers League

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

LifeSmarts honors FCCLA student leaders in Nashville – National Consumers League

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July 18, 2017

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

Campus High School students from Wichita, KS, recognized with top honors in LifeSmarts competition at FCCLA National Leadership Conference in Nashville

Washington, DC—Earlier this month, students from Campus High School, in Wichita, KS, competing at the 2017 Family, Career and Community Leaders of America (FCCLA) National Leadership Conference (NLC) took home top honors for winning first place in an FCCLA LifeSmarts competitive event held during the conference, July 2 – 6, in Nashville, Tennessee. More than 8,000 high school students from across the country competed in 32 competitive events, including the FCCLA/LifeSmarts Knowledge Bowl, during the FCCLA NLC. 

LifeSmarts is an educational and scholarship program run by the National Consumers League (NCL), the nation’s oldest consumer advocacy organization. LifeSmarts competitively tests high school students’ knowledge of consumer awareness, with subjects including personal finance, health and safety, consumer rights and responsibilities, technology, and the environment. The free program is available in all 50 states, the District of Columbia, and in partnership with student leadership programs FCCLA, as well the Future Business Leaders of America (FBLA). Thanks to the partnership with FCCLA, traditional LifeSmarts topics are expanded to include tourism, housing, fashion design, and early childhood development to focus on family and consumer sciences-specific content within the competition.

In Nashville, the top 14 FCCLA LifeSmarts teams competed over the course of two days. On Monday, July 3, teams competed in pool play, competing three times for cumulative points. The top eight teams advanced to a knockout bracket, which determined the final match-up between Campus High School and the team from Brookings High School, Brookings, South Dakota. On Wednesday, July 5, the two finalist teams competed head-to-head in front of thousands of spectators to kick off the FCCLA Recognition Session held during the NLC. 

Students attended the FCCLA conference to expand their networks, enhance leadership skills, attend workshops, and compete in FCCLA STAR events, including the FCCLA/LifeSmarts Knowledge Bowl.

LifeSmarts honors in Nashville

Students from Campus High School in Wichita, KS, coached by Renae Spangler, took home first place in the LifeSmarts competition. The team is made up of students Hope Wilson, Nick Redfield, Heather Robey, Karina Villa, and Kasen Williams.

Other winners included:

  • Brookings High School from Brookings, SD, coached by Joline Dunbar (2nd place)
  • West St. Francois High School from Park Hills, MO, coached by Tiffany Miller (3rd place)

“We are so proud of all the LifeSmarts competitors. Throughout competition they exemplified the strength of the LifeSmarts and FCCLA partnership, showcasing team spirit, good sportsmanship, leadership, and a breadth of knowledge in financial literacy and family and consumer sciences,” said Lisa Hertzberg, LifeSmarts program director.     

The LifeSmarts competition is part of a comprehensive, national, competitive events program sponsored by FCCLA, in partnership with NCL, which recognizes and rewards excellence in a broad range of family and consumer sciences and career-related areas. For many students, the competitive events are the capstone activity of their academic careers. In addition to competitions, students immersed themselves in interactive workshops, visited an information-packed exhibit hall, and heard from motivational speakers on a broad range of topics. 

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About LifeSmarts and the National Consumers League

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.

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 nclnet.org.

About FCCLA

Family, Career and Community Leaders of America (FCCLA), is a dynamic and effective national student organization that helps young men and women become leaders and address important personal, family, work, and societal issues through Family and Consumer Sciences education.  FCCLA has more than 160,000 members and more than 5,400 chapters from 48 state associations, Puerto Rico, and the Virgin Islands.

FCCLA: The Ultimate Leadership Experience is unique among youth organizations because its programs are planned and run by members, and it’s the only career and technical in-school student organization with a central focus on family.  Participation in national programs and chapter activities helps members become strong leaders in families, careers, and communities.

LifeSmarts honors FBLA student leaders in Anaheim – National Consumers League

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July 18, 2017

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

George C. Marshall High School students recognized with top honors in LifeSmarts competition at FBLA National Leadership Conference in Anaheim

Washington, DC—Earlier this month, students from George C. Marshall High School in Falls Church, VA, competing at the 2017 Future Business Leaders of America (FBLA) National Leadership Conference, took home cash prizes for winning first place in the FBLA LifeSmarts competitive event, June 29–July 2, in Anaheim, California. More than 14,000 of America’s best and brightest high school students from across the country gathered in Anaheim for the annual leadership conference, hosted by FBLA, at which top future business students compete in 65 events.

LifeSmarts is an educational and scholarship program run by the National Consumers League (NCL), the nation’s oldest consumer advocacy organization. LifeSmarts competitively tests high school students’ knowledge of consumer awareness, with subjects including personal finance, health and safety, consumer rights and responsibilities, technology, and the environment. The free program is available in all 50 states, the District of Columbia, and in partnership with student leadership programs FBLA, as well as the Family, Career and Community Leaders of America (FCCLA.) 

Sixteen FBLA LifeSmarts teams competed over the course of two days, accumulating points through buzzer matches, a team competition, and individual written assessments. The top eight teams advanced to the second day of competition and competed in a knock-out bracket. The team from George C. Marshall High School beat a team from Lynbrook High School in San Jose, California, in the final match.

Students attended the FBLA conference to enhance their business skills, expand their networks, and participate in business-related competitive events, including the LifeSmarts competition.

LifeSmarts honors in Anaheim

Students from George C. Marshall High School, Falls Church, Virginia, coached by FBLA Adviser Rebekah Glasbrenner, took home first place in the LifeSmarts competition. The team is made up of students Ethan Epstein and Sam Hassett, both recent graduates.

Other winners included:

  • Lynbrook High School from San Jose, California (2nd place)
  • Nickerson High School from Nickerson, Kansas (3rd place)
  • Pensacola High School from Pensacola, Florida (4th place)

“We are so proud of all the LifeSmarts competitors. Throughout competition they exemplified the strength of the LifeSmarts and FBLA partnership, showcasing team spirit, good sportsmanship, leadership, and a breadth of knowledge in financial literacy and consumer rights,” said Lisa Hertzberg, LifeSmarts program director.

The LifeSmarts competition is part of a comprehensive, national, competitive events program sponsored by FBLA-PBL, in partnership with NCL, which recognizes and rewards excellence in a broad range of business and career-related areas. For many students, the competitive events are the capstone activity of their academic careers. In addition to competitions, students immersed themselves in interactive workshops, visited an information-packed exhibit hall, and heard from motivational speakers on a broad range of business topics.

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About LifeSmarts and the National Consumers League

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.

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 nclnet.org.

About FBLA-PBL, Inc.

Future Business Leaders of America-Phi Beta Lambda, Inc., the premier student business organization, is a nonprofit 501(c)(3) education association with a quarter million members and advisers in over 6,500 active middle school, high school, and college chapters worldwide. Its mission is to bring business and education together in a positive working relationship through innovative leadership and career development programs. The association is headquartered in Reston, Virginia, just outside of Washington, DC For more information, visit fbla-pbl.org.

NCL statement before FDA’s Oncologic Drugs Advisory Committee – National Consumers League

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July 13, 2017

Statement of Sally Greenberg, Executive Director
National Consumers League

FDA-2017-N-2732
Oncologic Drugs Advisory Committee; Notice of Meeting; Establishment of a Public Docket; Request for Comments 
Open Public Hearing Re: Consideration of Mylan’s biosimilar to Genentech Inc.’s HERCEPTIN (trastuzumab) 

The National Consumers League (NCL) appreciates the opportunity to testify today in support of biosimilars. My name is Sally Greenberg, Executive Director of NCL. Since our founding in 1899, NCL has long been concerned with ensuring the safety, effectiveness, and appropriate use of both prescription and OTC drugs, and medication adherence, which we have helped to advance through our Script Your Future Campaign. 

In addition to being a champion for safe and effective medicines, NCL is committed to ensuring that consumers have access to quality medicines that are also affordable. NCL is a strong supporter of biosimilars, and testified last October in support of the reauthorization of the Biosimilar User Fee Act (BsUFA). We recognize that the entry of biosimilars into the U.S. market presents an opportunity to broaden patient access to life-saving biologic treatments while bolstering competition, reducing costs, and realizing better health outcomes.

Biologics are a manifestation of revolutionary advancements in the development of therapies for patients with debilitating and deadly diseases such as diabetes, multiple sclerosis, rheumatoid arthritis, and various forms of cancer. Unfortunately, the price for these complex therapies is often prohibitive for the vulnerable patients who need them the most – with some costing upward of several hundred thousand dollars per year. Biosimilars provide a less expensive alternative to their reference products, offering the same potency and therapeutic benefits at a fraction of the price. Similar to the dynamic relationship of generic and brand name drugs, the presence of biosimilars will not only encourage patient choice, but also boost market competition and drive down costs.

The biosimilar being considered today would be an alternative to the biologic medicine trastuzumab, which treats HER2-positive breast cancer and gastric cancer. HER2+ breast cancer is a particularly aggressive form of breast cancer that affects 1 in 5 women with the disease. In 2017 alone, it is estimated that over 300,000 people will be diagnosed with breast cancer and over 40,000 women will die as a result of this terrible disease. Fortunately, biologic therapies have transformed the way in which we treat breast cancer, with many patients experiencing decreased odds of recurrence, increased odds of survival, and an improved quality of life.

NCL supports FDA’s science-based review of Mylan’s and other new biosimilar applications so that patients can have expanded and affordable access to the safe and effective biologic medicines they need. Thank you for the opportunity to testify today.

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About the National Consumers League

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

National Consumers League opposes Department of Education rollbacks – National Consumers League

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July 13, 2017

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

The National Consumers League (NCL), the nation’s pioneering consumer advocacy organization, filed comments with the Department of Education (DOE) yesterday strongly opposing the dismantling of two pro-consumer Obama-era rules that are intended to prevent predatory practices at for-profit colleges. The first being the “gainful employment regulations,” finalized in October 2014, and the second, “borrower defense to repayment and college accountability regulations,” which was finalized in November 2016. 

“For years, predatory for-profit colleges have defrauded students and families while profiting from federal aid. Multiple investigations have revealed that federal taxpayers are subsidizing schools and programs that consistently leave students and veterans with loans they cannot repay and credentials they cannot use. These schools have offered low-quality, high-priced programs, shortchanged students in their support service offerings, and often misrepresented their abysmal graduation and job-placement rates,” said NCL’s Executive Director Sally Greenberg. “We are asking the Department of Education to reconsider this position and protect the interests of students who have often been treated abysmally by for profit institutions.”  

Read NCL’s full comments to the Department of Education here. 

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About the National Consumers League

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

National Consumers League condemns Senator Cotton’s efforts to roll back long overdue consumer protections – National Consumers League

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July 12, 2017

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

The following statement is attributable to Sally Greenberg, NCL executive director:

“After years of careful study and a mandate from Congress, the CFPB rolled out a long overdue rule to protect consumers from forced arbitration. The CFPB’s new rule will guarantee consumers’ rights to join together in a class action. Unfortunately, it took Senator Tom Cotton (R-AR) and corporate lobbyists less than a day to begin working to undermine this important consumer protection by introducing a Congressional Review Act resolution designed to overturn the rule.

It’s no wonder that corporate lobbyists are so worried about being barred from practicing forced arbitration. Many companies have snuck these provisions into their contracts to protect themselves from being sued for illegal behavior, making them effectively above the rule of law. These odious rip off clauses not only protect corporate wrongdoing, they actually encourage bad practices, because companies know that no matter how badly they act, they face few or no legal consequences. We saw companies hide behind these clauses when Wells Fargo committed identity fraud against their customers, and when Kay Jewelers and Fox News were found to be sexually harassing their employees. While they may try to overturn this long overdue consumer protection, they must not succeed. NCL is committed to protecting consumers from these ‘rip off clauses,’ ensuring that all consumers have access to the justice system, and that corporations are not allowed to abuse their customers and employees with impunity.”

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About the National Consumers League

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

National Consumers League celebrates CFPB’s final rule to guarantee consumers their day in court – National Consumers League

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July 11, 2017

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

Washington, DC— After five years of careful study, the Consumer Financial Protection Bureau (CFPB) today issued its final rule to greatly restrict the use of forced arbitration clauses in consumer contracts. The National Consumers League (NCL) applauds the CFPB’s efforts to restore consumers’ right to challenge financial fraud in court, and the agency’s realization of its congressional mandate under the Dodd-Frank Act to rein in this practice.

The following statement is attributable to Sally Greenberg, NCL executive director:

“Forced arbitration is a tactic employed by corporate America to deprive consumers of their day in court when companies engage in misconduct. These ‘ripoff clauses’ are always buried in the fine print of contracts and have the effect of curtailing consumers’ legal rights and forcing them into closed arbitration sessions bought and paid for by company interests. Since the arbitrators rely on industry for business, arbitrators too often side against harmed consumers and in favor of their corporate clients–in fact, 93 percent of the time. Under the new rules, companies will not have free rein to use these odious clauses, which NCL believes gives a green light for toxic corporate behavior. The CFPB’s rule will help restore the rights of consumers to join class-action lawsuits and bring transparency to the opaque process of arbitration. NCL is proud to stand with more than 280 consumer, civil rights, labor, and community groups to support the CFPB’s arbitration rule. Today’s action is an important step forward in the fight to empower consumers in the financial marketplace.”

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About the National Consumers League

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

NCL letter to Committee on Commerce, Science, and Transportation in support of Fair Fees Act – National Consumers League

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June 28, 2017

The Honorable John Thune
Chairman
Committee on Commerce, Science, and Transportation
United States Senate
512 Dirksen Senate Office Building
Washington, DC 20510

The Honorable Bill Nelson
Ranking Member
Committee on Commerce, Science, and Transportation
United States Senate
512 Dirksen Senate Office Building
Washington, DC 20510

Dear Senators Thune and Nelson,

The National Consumers League (NCL) urges you to support the FAIR Fees Act of 2017. The bill, sponsored by Senators Markey and Blumenthal will increase competition and benefit consumers who are increasingly abused by the airlines’ nickel-and-diming practices.

Thanks to unchecked consolidation, four major airlines now control more than 80% of all domestic flights. This unprecedented concentration of power has allowed the proliferation of punitive add-on fees to spread unchecked. Through an industry-wide “unbundling” strategy, the three biggest U.S. airlines — United, American, Delta — increased their ancillary fees revenue from $5.3 billion in 2008 to $14.69 billion in 2015, a staggering 177% increase. [1] U.S. air carriers, legally barred from colluding on fares, have shown a willingness to collaborate on fees. In 2013, for instance, the three largest domestic airlines all increased their cancellation/change fees from $150 to $200 within two weeks of each other. [2]

The massive increase in ancillary fees coincided with a long period of low fuel costs and historically high profits for the airlines. [3] In a truly competitive marketplace, airlines would have shared their savings with consumers to increase their market share, or at the very least, the increase in fees would have coincided with additional service. Unfortunately for consumers, the ancillary fees charged by the airlines bear no relation to the actual cost for the airline to provide the service that these fees allegedly support.

Fortunately, the FAIR Fees Act, which received bipartisan support when it was considered last year, would rein in this abusive practice. Under the legislation, airlines would be prohibited airlines from charging cancellation, baggage or other ancillary fees that are “unreasonable or disproportionate to the costs incurred by the air carrier,” as determined by the Department of Transportation.

Increasing competition is the best solution for improving consumers’ air travel experience. In the absence of competition, rules banning unfair and deceptive practices, such as advertising low fares only to slam consumers with large ancillary fees that bear no relation to the cost of providing the service is the next best step. NCL urges you to support the bipartisan FAIR Fees Act, and we hope we can count on your help in advancing this common sense pro-consumer legislation through committee.

Sincerely,

Sally Greenberg
Executive Director
National Consumers League

CC: Members of the Senate Commerce Committee

[1] IdeaWorksCompany.com. 2016 CarTrawler Yearbook of Ancillary Revenue. September 20, 2016. Online: https://www.cartrawler.com/ct/media/2016/09/CarTrawler-ancillary-revenue-yearbook-2016.pdf

[2] Mayerowitz, Scott. “Analysis:Airline mergers have already led to higher fares,” Associated Press. August 14, 2013. Online:https://indianexpress.com/article/news-archive/web/airline-mergers-have-already-led-to-higher-fares/

[3] Mouawad, Jad. “Airlines Reap Record Profits, and Passengers Get Peanuts,” New York Times. February 6, 2016. Online: https://www.nytimes.com/2016/02/07/business/energy-environment/airlines-reap-record-profits-and-passengers-get-peanuts.html