NCL applauds Sen. Rockefeller for investigating airline fees – National Consumers League

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August 20, 2014

For immediate release: August 20, 2014
Contact: Ben Klein, National Consumers League, benk@nclnet.org, (202) 835-3323

Washington, DC—The National Consumers League, the nation’s oldest consumer advocacy organization, today applauded Senator Jay Rockefeller for opening an inquiry into airline passenger fees and consumer data privacy policies.

Last year, NCL published a groundbreaking report examining the troubling correlation between rising cancellation/change fees, the high cost of refundable tickets and the misleading marketing of travel insurance products. Among the recommendations in the report was a call for Congressional oversight hearings to examine these issues. NCL is therefore particularly encouraged by Senator Rockefeller’s request for information from ten major U.S. airlines about cancellation and change fees and travel insurance revenues.

The following statement is attributable to Sally Greenberg, National Consumers League (NCL) Executive Director:

“Consumers are fed up with the ever-growing list of add-on fees that airlines are piling on top of basic airfares. These fees are contributing to record airline industry profits at a time when consumers’ travel budgets remain strapped due to the sluggish economic recovery. To make matters worse, many of these fees are poorly disclosed and the sale of travel of travel insurance and the coverage it provides is deceptively advertised. This makes comparison-shopping all but impossible for millions of American travelers. We applaud Senator Rockefeller for launching this important investigation and look forward to a robust accounting of the impact of these fees and deceptive insurance products on consumers.”

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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 releases consumer guide to buying fall concert, NFL tickets online – National Consumers League

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August 19, 2014

For immediate release: August 19, 2014
Contact: Ben Klein, National Consumers League, benk@nclnet.org, (202) 835-3323

Washington, DC – With many of the top recording artists on tour through the fall and the NFL season about to kickoff, the National Consumers League (NCL) today released a “Practical Guide to Buying Live Event and Sports Tickets” to help fans navigate the often confusing and cumbersome process of buying tickets online.

Once as easy as going to the box office, stadium, or the local record store, buying tickets to live event and sporting events has become a maze of ticket websites, resellers, online classified ads, and street vendors all competing for consumer dollars.

“We want to make sure fans have the information they need to make the best ticket buying decisions; we also want to raise awareness about anti-consumer practices in the ticketing industry,” said NCL’s Vice President of Public Policy, Telecommunications and Fraud John Breyault. “For example, fans should be on the lookout for restricted ticketing, undisclosed price floors, and deceptive websites that lure unsuspecting fans into buying resale tickets. NCL has developed a list of tips that will help consumers find their way through this thicket of potential problems.”  

Restricted ticketing, which ties the consumer’s ticket to their credit card and ID, makes it difficult, if not impossible, for consumers to transfer their tickets or share them. And the 30 million Americans who do not have a credit or debit card can’t even purchase this type of ticket in the first place.

“We think consumers should have the right to choose what they do with their tickets after purchase. If plans change, no one should have to lose 100 percent of the ticket value because they can’t give it away or resell it,” added Breyault.

In addition, some resale marketplaces, such as Ticketmaster’s TicketExchange, limit how low a ticket can be priced. That’s an outrageous practice. This price floor is not disclosed to consumers, who might think they’re getting a reasonable deal; in reality, there may be cheaper tickets available on other sites that don’t control prices.

However, when shopping for tickets online, particularly when doing an Internet search, consumers should be sure they know where they are buying their tickets from and whether it is a reseller or the box office that they are doing business with.

“Some ticket resellers create websites that pose as a box office or the official ticket seller. These are deceptive, and consumers should take the time to make sure they know if they are buying a resale ticket or not,” said Breyault.

To avoid these pitfalls and others, NCL suggests following these seven steps:

  1. Read the Fine Print: Artists are increasingly selling restricted tickets, also known as paperless or Credit Card Entry tickets, which require the buyer to show up at the stadium and present the purchasing credit card and photo ID. The premise for creation of the restricted ticket is to prevent scalping; the unintended consequence for consumers is that they cannot even give or resell a ticket to a friend since the buyer’s credit card is required to get the ticket at the venue. The fine print indicates these tickets are nontransferable and cannot be given away as gifts or resold. Consumers can easily miss this important information unless they pay close attention during the ticket buying process.
  2. Look into Presales: Popular artists, venues, and ticket vendors tend to allocate large blocks of tickets to fan club members, VIPs, premium credit card holders, and personal acquaintances, leaving only a small portion of tickets to the general public. For example, a 2011 Justin Bieber concert in Nashville, only made 1,001 out of 14,000 seats available to the general public.
  3. Beware of Hidden Price Floors: When purchasing resale tickets on secondary sites, check multiple sources to make sure you get the best price. Some teams and ticket vendors dictate the minimum price that tickets can be sold for, preventing consumers from buying tickets at the cheapest price possible.
  4. Use Reliable Sellers: If you’re unsure whether a company is legitimate, check its ratings with the Better Business Bureau. Also be sure to be certain as to whether you are buying tickets from the box office, official ticket agent, or a reseller. Some ticket resellers hide the fact that they are a reseller or even pose to look like the official ticket agent. If purchasing from a ticket broker, check to see if it is a member of the National Association of Ticket Brokers, whose Code of Ethics requires members to adhere to basic consumer protections. Be careful buying tickets from Craigslist or resellers on the street since these outlets do not have refund policies or any solid consumer protections.
  5. Check your ticket vendor’s guarantee policy: For example, websites like StubHub, TicketExchange, Ace Tickets, and members of the National Association of Ticket Brokers guarantee every ticket sold on their sites and will replace them or provide refunds to consumers if the event that they receive the wrong tickets, their tickets are invalid, or an event is cancelled.
  6. Buy with a Credit Card: Regardless of where you buy tickets, be sure to use a credit card so you can dispute any unfair or unauthorized charges. Before entering your credit card information online, double check the company’s URL to ensure you don’t get duped by an imposter and be sure the site has “https://” at the beginning of its address.
  7. Check if the Price Includes Additional Fees: Unlike airline tickets, which are now required by law to disclose all taxes and additional fees upfront, the ticket price listed at the start of the purchasing process will likely not be your final price. If you are shopping between multiple websites to compare prices, make sure you know if you are comparing ticket prices that include fees.

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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.

Sonderman named National Consumers League Vice President of Strategic Alliances and Development – National Consumers League

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August 11, 2014

For immediate release: August 11, 2014
Contact: Ben Klein, National Consumers League (202) 835-3323, benk@nclnet.org

Washington, DC — The National Consumers League (NCL) has named Amy Sonderman Vice President, Strategic Alliances and Development, effective September 1. In her new capacity, Sonderman will direct NCL’s fundraising strategy and external partnerships. NCL is the nation’s pioneering consumer and labor advocacy organization, founded in 1899 and headquartered in Washington, DC.

Sonderman succeeds former Vice President of Development Larry Bostian, who has been named Senior Advisor to Executive Director Sally Greenberg.

“We are thrilled to have Amy assume this leadership position for our organization,” said Greenberg. “Her dedication to NCL’s mission and proven track record of creating lasting relationships with external partners will benefit our numerous programs and initiatives.”

“Making the marketplace and workplace safer for consumers and workers is a large and long-term challenge, and no one organization can do it alone,” said Sonderman. “I am proud to lead NCL’s efforts to forge partnerships and gather support from labor organizations, responsible corporate partners, and fellow advocates to advance such an important mission.”

“I congratulate Amy, and I’m grateful for the chance to take on this new role,” said Bostian. “I look forward to continuing to contribute to NCL’s mission while increasing my volunteer involvement in addiction recovery.”

Sonderman was previously Director of Partnerships and Development at NCL. Before joining NCL in 2011, she worked in fundraising at the Muscular Dystrophy Association and at the Girl Scouts of America. She also previously served as the Associate Executive Director at the Greater Pittston YMCA, where she began her nonprofit career. Sonderman graduated with honors from University of North Carolina at Charlotte with a degree in Political Science and earned a Masters in Public Administration from Marywood University. She is a member of the National Honor Society for Public Affairs and Administration and the Association of Fundraising Professionals.

As Senior Advisor, Bostian will continue to work in fundraising and assist Greenberg on special projects and assignments. 

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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.

President Obama continues year of action with executive order protecting workers – National Consumers League

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July 31, 2014

Contact: Ben Klein, National Consumers League, benk@nclnet.org, (202) 835-3323

President Obama continues his Year of Action today signing the Fair Pay and Safe Workplaces executive order. This order will require that prospective federal contractors with contracts over $1 million disclose past labor law violations and will create a framework for how federal agencies should consider such violations. The U.S. Department of Labor estimates that there are roughly 24,000 businesses with federal contracts, employing about 28 million workers. Most significantly, the order bans federal contractors from forcing employees to give up their ability to seek justice in court through mandatory arbitration clauses workers are forced to sign as a condition of employment. The executive order also requires contractors to provide employees with a stub containing detailed info about their pay, taxes, withholdings, and other payment information. 

The following statement can be attributed to Sally Greenberg, executive director of the National Consumers League:

“Time and again, President Obama has demonstrated that if Congress is unable or unwilling to act to protect American workers, he will. Today marks another important step for increasing workplace protections. In order to know if they’re being paid properly, employees need to have access to the hours worked, including overtime hours, taxes, fees, and any paycheck deductions. This order will end the practice of employees being forced to sign mandatory arbitration agreements with employers. We commend the President and DOL for compelling contractors to treat workers fairly as a condition of getting access to federal contracts and being paid with taxpayer dollars under these contracts.” 

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About the National Consumers League 
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Its 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.

 

A SWEET Act that will improve the nation’s health – National Consumers League

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July 30, 2014

Contact: Ben Klein, National Consumers League, benk@nclnet.org, (202) 835-3323

Washington, DC – The National Consumers League (NCL), the nation’s pioneering consumer advocacy group, supports the Sugar-Sweetened Beverages Tax Act of 2014 (SWEET Act), introduced today by Rep. Rosa L. DeLauro (D-CT). The bill has two original cosponsors Rep. Eleanor Holmes Norton (D-DC) and Rep. Jim Moran (D-VA). This groundbreaking measure will levy a one cent tax per every teaspoon (4.2 grams) of caloric sweetener (sugar, high fructose corn syrup, etc.) on most sweetened beverages.

A tax on sweetened drinks has proven to be an effective strategy for reducing consumption. A 2014 study by the Robert Wood Johnson Foundation found that a .04 cent per-calorie tax on sweetened beverages would reduce annual per person consumption by 5,800 calories. Sales data collected from supermarkets across New York State found that this  .04 cent tax reduced consumption of beverage calories by 9.3 percent.

“A soda tax on sweetened beverages is one way to reduce consumption and direct tax funding toward education and prevention of obesity,” said Sally Greenberg, executive director of the National Consumers League. “Incentivizing consumers to make smart purchasing decisions will help reduce consumption of soda and other drinks that are bereft of any nutritional value. With skyrocketing obesity rates among adults and children, these conditions and their ancillary health consequences place a tremendous burden on our healthcare system.”

The national obesity rate now stands at 34.9 percent of adults and 17 percent of children. Communities of color have disproportionately higher rates of obesity with 47.8 percent of adult African Americans being obese and 42.5 percent of adult Hispanics being obese. High rates of obesity lead to diabetes, heart disease, and other health issues which cost our healthcare system an estimated $190 billion every year.

Revenue collected from the new SWEET Act tax would be provided to the Prevention and Public Health Fund to support initiatives aimed at reducing rates of obesity and decreasing healthcare expenses from weight-related medical issues. 

In November, San Francisco, CA and Berkeley, CA will vote on imposing taxes on sweetened beverages. In Mexico, a tax on soda was enacted in January 2014 that imposes a one peso per liter tax on sweetened drinks, increasing the cost of a two-liter soda by about 10 percent. 

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About the National Consumers League 
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Its 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 expresses grave concern about Bolivia’s decision to lower age of work to ten – National Consumers League

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July 22, 2013

Contact: Ben Klein, National Consumers League, benk@nclnet.org, (202) 835-3323

Washington, DC—The National Consumers League (NCL), the nation’s oldest consumer advocacy organization with a long history of fighting to improve child labor laws in the United States and abroad, decries the decision last week by Bolivia to enact a new law that lowers the age of work from 14 to 10.

“Ten-year-olds belong in school–not in mines, forests, and factories. Bolivia’s baffling action is a huge step backward and endangers the country’s 500,000 working children,” said NCL Executive Director Sally Greenberg, who is also the co-chair of the Child Labor Coalition (CLC), which NCL has co-chaired for 25 years. “In the last decade, the world has made remarkable progress in reducing abusive child labor by one-third, according to estimates by the International Labour Organization.”

“While the new law is aimed at ‘self-employed’ children, our great fear is that the health and safety of Bolivia’s many thousands of children in hazardous work–like mining–will be endangered as a larger number of children sent out to work by their families will be legally employed,” said Reid Maki, NCL’s director of child labor advocacy and the coordinator of the CLC. The U.S. Department of Labor lists nuts, bricks, corn, gold, silver, sugarcane, tin, and zinc as products produced with child labor in the country. Children are already doing some of the most grueling work in the world in Bolivia.”

“Bolivian government officials have said that they are unable to control child labor and that lowering the age of work will lead to greater protection of child workers because their work will now be legal,” said Greenberg. “Essentially, the government of Bolivia is surrendering. The level of exploitation will increase, and children will pay the price.”

“We also do not accept the argument that legal child labor is a necessary tool to reduce poverty in Bolivia, which ranks 70th on the ‘fragile states index,’ an annual ranking of the stability and the pressures countries face,” said Maki. “If 69 countries facing greater problems than Bolivia have not had to lower the age of work, surely Bolivia does not.”

“I’d like to remind the global community of the words of Hull House reformer Grace Abbott, an early child labor advocate in the United States,” said Greenberg. “’If you continue to use the labor of children as the treatment for…poverty, you will have both until the end of time.'”

 

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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.

Chicago Data Breach Victims at Heightened Risk of Identity Theft, New Study Shows – National Consumers League

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July 16, 2014

Contact: National Consumers League, Ben Klein, (202) 835-3323, benk@nclnet.org
Carol McKay, (412) 945-3242, carolm@nclnet.org
Javelin Strategy & Research, Danielle Ostrovsky (410) 302-9459,dostrovsky.ctr@javelinstrategy.com
Natalie Bauer, Office of Attorney General Madigan, 312-814-4947,nbauer@atg.state.il.us

Attorney General Madigan and National Consumers League Address Online Security for Illinois Residents

Chicago – New research released today by the National Consumers League (NCL) and Javelin Strategy and Research reveals disturbing trends for Chicago residents who have been affected by data breaches, finding that 72 percent of fraud victims were also victims of data breach, suggesting a strong link between breaches and fraud.

Attorney General Madigan joined representatives from NCL and Javelin Strategy & Research Wednesday at 1871 to discuss the research findings and resources for Illinois residents to protect themselves from identity theft.

“The latest data breaches have served as a wakeup call signaling that government and the private sector need to take serious, meaningful action to curb this growing threat to our financial security,” Madigan said.

Also included in the research were findings that show consumers are losing faith in business to protect their identities and want more government action on fraud prevention measures.

“Data insecurity is leading to real consumer harm and this report confirms consumers are at a loss for where to turn in the face of this national problem,” said NCL’s John Breyault. “As consumers share vast amounts of personal data with businesses, government and other entities, they expect their information to be protected from malicious hackers.”

This event today in Chicago is the third in NCL’s’ #DataInsecurity Project, and follows similar events in Miami and Los Angeles which featured United States Attorney for the Southern District of Florida Wifredo Ferrer, Federal Trade Commission Commissioner Terrell McSweeny and Joanne McNabb, Director of Privacy Education & Policy for the California Office of the Attorney General.

“In this polarized political climate, it’s rare for Americans to express such agreement on any issue,” said Al Pascual, Javelin’s Senior Analyst of Fraud and Security. “But when itcomes to the security of their personally identifiable information, the respondents said with one voice that the government must do more.”

#DataInsecurity Project Findings For Chicago Metropolitan Area Fraud Victims

The National Consumers League recently released new research examining the impact of data breaches and identity fraud on consumer victims in four key regions nationwide, including the Chicago metropolitan area. According to the study, Americans are urgently calling out for government action on the growing threat posed by data breach and identity theft.

The study, conducted in partnership with Javelin Strategy & Research, shows that theimpact of data breaches on consumers is indeed severe: 61 percent of data breach victims who also experienced identity theft reported that the breached information was used to commit the fraud against them. What’s more, nearly half of all fraud victims – 49 percent – do not know where the information used to defraud them was compromised.

The NCL/Javelin study, which includes surveys of fraud victims from Chicago, Los Angeles, Miami and Minneapolis, along with additional Javelin research on national fraud trends, found that consumers are calling for government to take action. A mere 28 percent of victims surveyed said the government’s requirements for protecting healthcare and financial data were “sufficient.”

In Chicago, 43 percent of fraud victims said their data was used to make online purchases and 28 percent said their information was used to make purchases in-person. Among fraud victims in Chicago, 72 percent had previously received a data breachnotification which is higher than reporting by victims in Minneapolis (66 percent), but is comparatively worse than in Los Angeles (82 percent) and Miami (80 percent) where the rates of data breach notification among fraud victims were significantly higher.

According to the new study, the consequences of consumer fraud have a serious ripple effect: fraud victims report losing trust in the businesses where their data was compromised. For example, 59 percent of respondents whose data was breached at a retailer expressed  “significantly decreased” trust in retailers who failed to protect their information. “When consumer trust drops, so do sales,” added Breyault, “This study is only the latest evidence for why the business community should be one of the most vocal advocates for protecting consumer data.”

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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, visitwww.nclnet.org.

NCL applauding DC City Council for Wage Theft vote – National Consumers League

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July 14, 2014

Contact: Ben Klein, National Consumers League, benk@nclnet.org, (202) 835-3323

Washington, DC—Today, the National Consumers League (NCL), the nation’s pioneering consumer and worker advocacy organization, is applauding the Washington, DC City Council for its unanimous vote in favor of the Wage Theft Prevention Act of 2014. The bill is designed to create formal hearings with enforceable judgments, provide better access to lawyers for wage theft victims, strengthen the District’s worker protection laws, and increase penalties for employers who commit wage and hour violations.

“This is another great step towards protecting District workers from a destructive labor practice,” said Michell K. McIntyre, Outreach Director, Labor & Worker Rights. “We’re hopeful that Mayor Gray will sign the bill into law to better the lives of workers across Washington, DC. NCL thanks every member of the DC City Council for standing up for all District workers, showing strength and resolve to do the right thing in the face of industry opposition. The DC Council has set an exemplary standard for city and state legislators around the nation.”

The bill now heads to Mayor Vincent Gray’s desk. He has three options: he can sign the bill into law; veto the bill, sending it back to the City Council for a councilmember vote to override the veto; or he can choose to take no action and after a set amount of time the bill will become law. 

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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.

FTC Commissioner Terrell McSweeny speaks at NCL event on data breach, ID theft – National Consumers League

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July 8, 2014

Contact: National Consumers League, Ben Klein, (202) 835-3323, benk@nclnet.org
Carol McKay, (412) 945-3242, carolm@nclnet.org
Javelin Strategy & Research, Danielle Ostrovsky 410-302-9459, dostrovsky.ctr@javelinstrategy.com

FTC Commissioner Terrell McSweeny Speaks at National Consumers League Event on Data Breach, Identity Theft

Commissioner McSweeny Joined by Joanne McNabb, Director of Privacy Education & Policy For the California Office of the Attorney General, to Discuss New NCL Research on Data Breach, Identity Theft and Impact on Californians

Los Angeles, CA – Federal Trade Commission Commissioner Terrell McSweeny spoke today at a National Consumers League briefing on data breach and identity theft, where she discussed new research findings about the consumer impact of data breach and fraud.

Commissioner McSweeny was joined in Los Angeles by Joanne McNabb, Director of Privacy Education & Policy for the California Office of the Attorney General, for the second event of the National Consumers League’s #DataInsecurity Project, a cross-country series to raise awareness and push for action on consumer data security.

After a morning press event with several data security experts, the two officials joined NCL Vice President John Breyault to discuss a new study, released by NCL and Javelin Strategy & Research, which revealed disturbing trends for Los Angeles residents who have been affected by data breach and identity fraud. Nearly half of identity fraud victims are unaware where their information was compromised, while 61 percent of those who were also data breach victims reported that the breached information was used to commit fraud. The majority of data breaches affecting fraud victims involved a compromised retailer; fraud victims also reported that their information was used to make unauthorized purchases, either online (31 percent) or in person (39 percent). As a result, Los Angeles identity fraud victims are losing trust in retailers’ ability to keep their personal information secure and prevent it from being used to commit fraud.

“This report shows that fraud victims are calling for a decisive and coordinated response from both governments and the business community,” said Sally Greenberg, NCL executive director. “We thank Commissioner McSweeny and Director McNabb for joining us for this important discussion, and for their continued advocacy on behalf of consumers.”

#DataInsecurity Project Findings on Los Angeles Metropolitan Area Victims

The National Consumers League has released new research examining the impact of data breaches and identity fraud on consumer victims in four key regions nationwide, including the Los Angeles metropolitan area. According to the study, Americans are urgently calling out for government action on the growing threat posed by data breach and identity theft.

The study, conducted in partnership with Javelin Strategy & Research, shows that the impact of data breaches on consumers is indeed severe: 61 percent of data breach victims who also experienced identity theft reported that the breached information was used to commit the fraud against them. What’s more, nearly half of fraud victims — 49 percent — do not know where the information used to defraud them was compromised.

“Data insecurity is leading to real consumer harm, and this report confirms consumers are at a loss for where to turn in the face of this national problem,” said NCL’s Breyault. “As consumers share vast amounts of personal data with businesses, government and other entities, they expect their information to be protected from malicious hackers.”

The NCL/Javelin study, which includes surveys of fraud victims from Los Angeles, Miami, Chicago, and Minneapolis, along with additional Javelin research on national fraud trends, found that consumers are calling for government to take action. A mere 28 percent of victims surveyed said the government’s requirements for protecting healthcare and financial data were “sufficient.”

In Los Angeles, 35 percent of fraud victims said their data was used to make online purchases and 44 percent said their information was used to make purchases in-person. Among fraud victims in Los Angeles, 82 percent had received a notice of data breach previously which corresponds with reporting by victims in Miami (80 percent), but it is significantly higher than in Chicago (72 percent) and Minneapolis (66 percent).

“In this polarized political climate, it’s rare for Americans to express such agreement on any issue,” said Al Pascual, Javelin’s Senior Analyst of Fraud & Security. “But when it comes to the security of their personally identifiable information, the respondents said with one voice that the government must do more.”

According to the new study, the consequences of consumer fraud have a serious ripple effect: fraud victims report losing trust in the businesses where their data was compromised. For example, 59 percent of respondents whose data was breached at a retailer expressed “significantly decreased” trust in retailers who failed to protect their information. “When consumer trust drops, so do sales,” added Breyault, “This study is only the latest evidence for why the business community should be one of the most vocal advocates for protecting consumer data.”

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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 decries Supreme Court rulings in Harris v. Quinn and Burwell v. Hobby Lobby – National Consumers League

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June 30, 2014

Contact: Ben Klein, National Consumers League, benk@nclnet.org, (202) 835-3323

Washington, DC–Today’s Supreme Court decisions on Harris v. Quinn and Burwell v. Hobby Lobby is a sharp rebuke to working families and especially female employees across the country, according to a statement released by the National Consumers League (NCL).

In the Harris v. Quinn decision, the Supreme Court ruled 5-4 that Illinois home healthcare workers cannot be forced to pay an agency fee to the labor group negotiating their employment contract. This ruling creates insecurity and instability for employers and unions throughout the public sector. The decision creates a special class for Medicaid and state funded home healthcare workers as neither private nor public, but rather “partial public employees.”

At issue in this case was whether non-union members could reap the wages, benefits, and protections negotiated in a collectively bargained contract without being required to pay union dues. As “partial public employees”, the Court decided that the same labor rules do not apply and that workers can opt out of joining a union and go without contributing dues to the labor union that is responsible for negotiating their employment contract.

“At a time when many wages are stagnant, others are eroding, and income inequality is out of control, joining together to collectively bargain is one of the only proven ways that home care workers can improve their working conditions,” said Sally Greenberg, executive director of the National Consumers League.  

“NCL calls on the Obama Administration to stick to the promise it implement long-awaited federal companionship worker regulations for 2.5 million home care workers by January 1, 2015. The new rules will extend basic federal minimum wage and overtime protections to the millions of workers who care for seniors and people with disabilities living independently in their homes.”

Also today, by the same margin of 5-4, the Supreme Court ruled in the Burwell v. Hobby Lobby case that for-profit employers’ religious beliefs can determine a workers’ access to healthcare. The ruling makes it acceptable for closely-held corporations to use their religious beliefs to take away benefits guaranteed to their employees by law. This decision allows bosses to deny women coverage for basic needs such as birth control. 

This case challenged a part of the Affordable Care Act requiring health plans to cover contraception without a co-pay.

“The Court’s decision prohibits female workers from making their own health decisions without intrusion from their bosses,” said Greenberg. “This ruling is a step in the wrong direction for women, workers, and employers.”

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About the National Consumers League 
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Its 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.