NCL urges FTC to require meaningful reforms in any potential settlement with Herbalife – National Consumers League

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May 13, 2016

Contact: NCL Cindy Hoang, cindyh@nclnet.org, (202) 835-3323

Washington, DC–The National Consumers League, the nation’s pioneering consumer and worker advocacy organization, today urged the Federal Trade Commission to ensure that any potential settlement of its investigation of multi-level marketing company Herbalife requires meaningful reform and significant consumer redress.

In a letter to the FTC Chairwoman Edith Ramirez, NCL cited recent news reports — based on Herbalife’s quarterly results —  that the Commission’s investigation of Herbalife may be drawing to a close. NCL’s letter urged the Commission to ensure that any potential injunctive relief addresses persistent structural concerns that the FTC’s investigation may have uncovered through its investigation.

“As the Commission has found time and again in enforcement actions against MLM companies such Vemma, Fortune Hi-Tech Marketing, BurnLounge, and others, the threat of pyramid scheme behavior in the MLM industry is significant and persistent,” wrote NCL Executive Director Sally Greenberg. “Any potential settlement of the FTC’s investigation will be critical to ensuring that legitimate MLMs are readily distinguishable from illegal pyramid schemes.”

In March 2013, NCL was the first national consumer group to call for an FTC investigation of allegations of pyramid scheme behavior at Herbalife. In March 2014, the Commission opened its investigation of the company.

“Last year, I heard personally from low-income and minority consumers in locations across the country who have lost money to fraudulent business opportunities. These consumers wanted nothing more than to achieve the American dream through hard work,” said Greenberg. “The FTC’s investigation of Herbalife should lay to rest once and for all whether the company offered them a legitimate business opportunity — as it claims — or operates as a fraudulent pyramid scheme — as its critics allege, and require structural changes in the company’s business model should the latter be found.”

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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 statement on Google decision to ban payday loan ads – National Consumers League

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May 12, 2016

Contact: NCL Cindy Hoang, cindyh@nclnet.org, (202) 835-3323

Washington, DC–The National Consumers League, the nation’s pioneering consumer and worker advocacy organization, applauds the decision by Google to ban payday lending ads on its advertising network. Google has long banned ads for dangerous products like guns, drugs and counterfeit products. The company’s decision to ban payday loans ads acknowledges the inescapable fact that those dangerous loans harm millions of low-income American consumers by trapping them in an inescapable web of debt.

The following statement is attributable to Sally Greenberg, Executive Director of the National Consumers League:

“By banning payday loans ads, Google has taken a principled stand that will benefit the 12 million Americans who are forced to rely on these predatory financial products every year. The payday lending industry has increasingly migrated online, often as a way to escape consumer protection regulations.  We are therefore heartened that Google has responded to the calls by advocates from across the consumer and civil rights community to get the company to take the right step.”

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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.

New survey reveals how labeling contributes to food waste – National Consumers League

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May 11, 2016

Americans mistakenly believe feds control date labeling on food; Advocates decry how confusion is contributing to global food waste epidemic

Industry, NGOs, government reps gathering today at Food Waste Summit in Washington to analyze food waste epidemic and search for solutions

Contacts: Najeema Holas-Huggins, nholashuggins@law.harvard.edu, (617) 390-2624 and Carol McKay, carolm@nclnet.org, (724) 799-5392

Washington, DC— At a Food Waste Summit in Washington today hosted by Keystone Policy Center and the National Consumers League (NCL), researchers will release new data, which confirms widespread consumer confusion over food date labeling and how it likely contributes to food waste. The new national survey assessing consumer perceptions of date labels and reporting are a collaborative effort of NCL, Harvard Food Law and Policy Clinic, and Johns Hopkins University Center for Livable Future.

According to the new survey, conducted in April, there is considerable uncertainty about the regulation of food labeling in the United States, with a third of adult Americans mistakenly believing the federal government regulates date labels. Only one percent of respondents responded correctly that only certain products are federally regulated; in fact, the only product for which date labels are regulated federally is infant formula. The reality is that all other foods are regulated at the state level or not at all, depending on the state. The results also identified how consumers interpret date labels—whether terms communicate food safety vs. quality—findings which advocates expect could be useful in supporting voluntary industry efforts to standardize date labels as well as potential federal legislation to standardize date label language.

“Each year, 40 percent of our food supply goes to waste, a tragedy given the number of Americans—nearly 50 million—who live in food-insecure households,” said NCL Executive Director Sally Greenberg. “And one of the reasons why we waste so much is that consumers misunderstand the many different dates and language printed on food products. Consumers too often interpret date labels to mean that the food is no longer safe to eat, when that food is often times still both healthy and of peak quality. The link between confusion over date labeling and food waste is clear.”

KEY FINDINGS (full report)

Consumers take action based on dates.

More than one third of the population (37%) say they always or usually throw away food because it is close to or past the date that appears on the package. 84% of consumers throw out food based on date labels at least occasionally.

Younger consumers are the strictest.

Notably, younger consumers (age 18-34) were most likely to discard food based on the date label, while older consumers (65+) were the least likely to do so.

Safety vs. quality: misperceptions and uncertainty about what date labels mean.

The survey examined perceptions of six date labels: best by, best if used by, freshest by, expires on, use by, and sell by. Findings revealed a striking amount of diversity in interpretation of the meaning of these labels, suggesting a need for standard labeling and consumer education. However, “best if used by” was most commonly seen as an indicator of food quality (70%) and “expires on” was most commonly seen as an indicator of food safety (54%).

Misinformation about government role.

A third of consumers wrongly think that date labels are federally regulated (36%), and 26% were unsure. Only 1% said they are federally regulated only for specific foods, which is technically the correct answer; the only food for which date labels are regulated federally is infant formula.

Those who were more likely to think that labels are federally regulated included younger consumers (18-34), African Americans, Hispanics, households of three or more, and households with children.

“Many people throw away food once the date on the package has passed because they think the date is an indicator of safety, but in fact for most foods the date is a manufacturer’s best guess as to how long the product will be at its peak quality,” said Emily Broad Leib, Director of the Harvard Food Law and Policy Clinic and a survey co-author. “With only a few exceptions, food will remain wholesome and safe to eat long past its expiration date. When consumers misinterpret indicators of quality and freshness for indicators of a food’s safety, this increases the amount of food that is unnecessarily discarded, leading to wasted food, hungry households, and a waste of resources nationally.”

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About the survey

This survey was fielded online to a demographically representative sample of 1,029 adults from April 7-10, 2016. These questions were part of a CARAVAN® omnibus survey that is conducted twice a week by ORC International. The findings presented here are one piece of a larger analysis of consumer perceptions of date labels.

About The Harvard Food Law and Policy Clinic

The Harvard Food Law and Policy Clinic (FLPC) was established in 2010 to provide legal advice to nonprofits and government agencies seeking to increase access to healthy foods, support small-scale and sustainable farmers, and reduce waste of healthy, wholesome food, while educating law students about ways to use law and policy to impact the food system. For more information, visit https://www.chlpi.org/flpc, find us on Facebook, and follow us on twitter @HarvardFLPC.

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 applauds new CFPB proposed rule on arbitration clauses – National Consumers League

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May 5, 2016

Contact: NCL Cindy Hoang, cindyh@nclnet.org, (202) 835-3323

Washington, DC–The National Consumers League (NCL) applauds the Consumer Financial Protection Bureau (CFPB) for its recent proposal to restrict the use of forced arbitration clauses in consumer financial contracts.

The CFPB aims to prohibit financial companies from using mandatory-arbitration clauses as a way to block class-action lawsuits, in which a large number of plaintiffs with similar complaints band together. Companies would still be able to require consumers to enter arbitration to resolve individual disputes.

NCL agrees with CFPB Director Richard Cordray that the proposed rule would restrict forced arbitration that “effectively denies groups of consumers the right to seek justice and relief for wrongdoing.”

Forced arbitration clauses have become standard in recent years because of a string of court rulings that have limited consumers’ ability to file lawsuits. A landmark Supreme Court case in 2011, AT&T Mobility LLC v. Concepcion, allowed businesses to enforce class-action waivers in their contracts. NCL joined other consumer groups in supporting Concepcion’s claims.   

There will be a 90-day comment period before the rule goes into effect.

The following statement may be attributed to NCL Executive Director Sally Greenberg:

The CFPB’s action is a welcome response to these odious forced arbitration clauses found in the vast majority of consumer contracts. These clauses remove consumers’ right to hold companies accountable when they have engaged in corporate wrongdoing and are especially unfair when they limit class actions. The CFPB’s proposal will help to even the playing field for consumers in their interactions with financial institutions. The financial services industry often argues that arbitration is better for consumers than going to court. If that is true, that choice should be voluntary for consumers. If given the choice of arbitrating a claim or going to court as part of a class of consumers, consumers will choose the more advantageous route. Sadly, today they don’t have that choice because–with the exception of Bank of America–they are forced to sign away their right to go to court. Indeed, a 2015 CFPB study of six markets found that consumers filed few arbitration cases—an average of 600 a year. The CFPB said few consumers bring individual actions on small claims—either in court or in arbitration—because they aren’t aware of their legal rights or they find the process too time-consuming or troublesome.

The industry also claims that class actions will simply enrich plaintiffs’ lawyers, with consumers receiving little compensation. This is disingenuous—though individual consumers may not get large payouts, successful class action lawsuits have been very effective in changing unfair corporate practices. Moreover, when corporations stop hiring lawyers to write these clauses into contracts, perhaps consumers will no longer need the class action as a vehicle to protect their rights. Until then, consumers have every right to have legal representation to even the playing field in these financial service contracts.

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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 statement of Senate passage of FAA Reauthorization Bill – National Consumers League

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April 19, 2016

Contact: NCL Cindy Hoang, cindyh@nclnet.org, (202) 835-3323

Washington, DC – The U.S. Senate today approved the Federal Aviation Administration Reauthorization Act of 2016 on a 95-3 vote. Unfortunately, despite support from every major national consumers and travellers rights groups as well as business travel managers, the Senate failed to even vote on the FAIR Fees Act, which was offered as an amendment and received bipartisan support in committee. This bill, co-sponsored by Senators Markey and Blumenthal proposed common-sense, pro-consumer reforms that would have prohibited air carriers from imposing ancillary fees that were unreasonable or disproportional to the costs incurred by the airlines. Such action would address competition concerns raised by the Department of Justice, Department of Justice, travelers’ rights advocates and consumers nationwide. 

While the bill is not perfect, we recognize and applaud the fact that it does contain a number of important new consumer protections which address the out-of-control growth of ancillary fees that are increasingly squeezing the pocketbooks of the traveling public. In particular, consumers will benefit from provisions requiring automatic refunds on baggage fees when luggage arrives late, automatic refunds of ancillary fees when services are purchased and not delivered, better disclosure of ancillary fees, an investigation of the Department of Transportation (DOT’s) consumer protection enforcement efforts and improvements to the Department of Transportation’s complaint process, among other provisions. In addition, NCL is pleased with the absence of air traffic control privatization in bill, which reflects the broadly held consensus that such action would significantly harm the FAA’s ability to ensure the safety of the air travel system for the millions of consumers who depend it.

The following statement is attributable to Sally Greenberg, Executive Director of the National Consumers League:

“Complaints to the Department of Transportation about the price of flying were the fastest-growing type of complaint to the agency last year.  Consumers are demanding real reforms that address the explosion of airline fees, yet the Senate failed to even vote on the FAIR Fees Act. While we recognize that important new consumer protections were included in the FAA reauthorization bill, we are deeply disappointed that the full Senate did not take up Senators Markey, Blumenthal, and Klobuchar’s common-sense consumer protection amendment. Thanks to consolidation, the biggest U.S. airlines are increasingly able to reduce capacity and raise fees, free from a credible competitive threat. This is a textbook case of oligopolistic behavior that Congress, the DOT and the DOJ must recognize and act upon.”

The National Consumers League will continue to press for the addition of much-needed consumer protections to the FAA reauthorization legislation as it moves toward a vote in the U.S. House of Representatives.

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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.

Pennsylvania takes 2016 National LifeSmarts title in Denver – National Consumers League

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April 12, 2016

Contact: National Consumers League, Carol McKay, (724) 799-5392, carolm@nclnet.org

Denver, CO—The student team from Dallas, PA, coached by Kevin West, was crowned national LifeSmarts champions in Denver on Tuesday, April 12 at the 22nd annual National LifeSmarts Championship. In a tight final match against the returning champs from Jacksonville, FL, the teens from Dallas High School outplayed their opponents in an exciting end to the 4-day competition. The Florida team, from Paxon School for Advanced Studies, coached by Kathie Loggie, held the national title in 2015 and 2013.

Teams from Honolulu, Hawaii, and Coffee County, Tennessee placed third.

“We are so proud of these students from Pennsylvania, who represented their state program with class and pride,” said LifeSmarts Program Director Lisa Hertzberg. “They played hard and demonstrated their consumer smarts throughout the four-day event. They are true LifeSmarts champions.”

LifeSmarts is an education and scholarship program run by the Washington, DC-based National Consumers League (NCL), the nation’s oldest consumer advocacy organization. It competitively tests high school students’ knowledge of consumer awareness, with subjects including personal finance, health and safety, consumer rights and responsibility, technology, and the environment. LifeSmarts is available in all 50 states, the District of Columbia, and in partnership programs with student leadership programs FBLA and FCCLA.

Teens from each of the 33 state champion teams represented at nationals competed as individuals, and the top five scorers received scholarships from NCL. This year’s winners were:

  • Environment: Michael Lamontagne, Rhode Island
  • Personal Finance: Alyssa Simoes, Connecticut
  • Health and Safety: Ethan Epstein, Virginia
  • Consumer Rights and Responsibilities: Eli Shea, Rhode Island
  • Technology: Chris Biesecker, Pennsylvania

Taylor Heslop, from Kansas, and Brandon Mahsetky from California, were named the 2016 Students of the Year. Donna Mancuso, from Crosby High School in Connecticut, and Coach West, from Dallas High School in Pennsylvania, were named LifeSmarts Coaches of the Year. Long-time State Coordinator Jim Hedemark, from Rhode Island, earned the Coordinator of the Year honor.

“NCL’s LifeSmarts program is allowing us to rear a generation of consumer-savvy teenagers who often outsmart their parents on issues related to avoiding fraud, credit and debt, and complicated healthcare decisions,” said NCL Executive Director Sally Greenberg. In the 22 years that LifeSmarts has been educating high school and middle school teens on consumer issues, it has grown dramatically, with more than 3 million consumer questions answered at www.lifesmarts.org in the online competition during the 2015-2016 program year.

For team photos, event schedules, grid standings, and more, log on to www.facebook.com/LifeSmarts

All winners at the national LifeSmarts Competition received valuable prizes donated by sponsors to the National Consumers League, including scholarships, savings bonds, gift cards, and more. To learn more about the program, contact NCL’s Lisa Hertzberg at 202-835-3323.

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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: www.lifesmarts.org, email lifesmarts@nclnet.org or call the National Consumers League’s communications department at 202-835-3323.

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

NCL statement on Blankenship sentencing – National Consumers League

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April 9, 2016

Contact: NCL Cindy Hoang, cindyh@nclnet.org, (202) 835-3323

Washington, DC-The National Consumers League has issued the following statement, which may be attributed to Executive Director Sally Greenberg, on the sentencing this week of Don Blankenship, mine owner of the Upper Big Branch mine, where 29 miners were killed in 2010. Blankenship was convicted of conspiring to violate mine safety standards and sentenced to one year in prison.

The justice system was at work in the sentencing of Don Blankenship this week to one year in prison. Blankenship’s notorious management style – putting profits over the safety of workers – and creating a working environment of subterfuge, fear, and intimidation, created the conditions that lead to the deaths of 29 miners at Upper Big Branch mine. This sentence won’t bring back the lives of these hardworking miners, but it does send a message to coal operators who skirt the law: you do so at your own risk.

NCL stands alongside mineworkers, the United Mine Workers of America, and all those who labor under dangerous conditions in support of the safety and health of workers. Their welfare must never take a back seat to profits.

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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.

Mile High City to host 2016 National LifeSmarts Championship event April 9-12 – National Consumers League

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April 8, 2016

State champion teams to face off at 22nd annual national consumer literacy scholarship competition in Denver

Contact: Carol McKay, carolm@nclnet.org, (724) 799-5392

Washington, DC — In celebration of April’s Financial Literacy Month, the National Consumers League (NCL) has announced the nearly three dozen state champion teams that have earned a spot at the 2016 National LifeSmarts Championship, which will take place starting later this week in Denver, Colorado.

LifeSmarts (www.LifeSmarts.org) is a national consumer literacy scholarship competition, celebrating its 22nd season this year, hosted by NCL, the nation’s oldest consumer watchdog organization. The 2016 National LifeSmarts Champion team will be crowned at the Embassy Suites by Hilton Downtown Denver on Tuesday, April 12.

LifeSmarts is a competitive educational program, in which teams of students begin online. Top-scorers progress to state competitions, and then state champion teams meet each April to compete in the National LifeSmarts Championship. This year’s lineup of state champion teams come from as near as Elk Creek 4-H Club, Arapahoe County, Colorado, and as far away as the Florida team from Jacksonville, which returns to defend its title as last year’s national champs.

“We are so proud of this year’s state LifeSmarts champions, who have proven themselves to be the best and the brightest of the next generation of consumers,” said Sally Greenberg, NCL Executive Director. “LifeSmarts is fun and fast, and the perfect vehicle for educating young consumers. Our program goes in-depth on the issues kids—and adults—are facing now: finances, health care, the environment, and technology.”

The 2016 National LifeSmarts Champion and other winning teams will walk away with prizes and scholarships. In addition to placing as a team, individual students have the opportunity to compete for scholarships by demonstrating knowledge in specific program topic areas. The top eight placing teams and top five individuals are recognized. Additionally, NCL will award scholarships to winning participants from its Safety Smart Ambassador program, conducted in conjunction with Underwriters Laboratories (UL), which offers high school students the opportunity to teach very young students environmental and safety in-classroom lessons as a community service.

NCL thanks the sponsors who make the program possible including Experian, UL, Western Union, LifeLock, Comcast, Google, Intuit, McNeil Consumer Healthcare, and American Express.

Consumer-savvy teens representing 31 states and the District of Columbia will compete at this year’s national event. Throughout the 2015-2016 program year, more than 100,000 teens competed online for a chance to represent their states at the 2016 National LifeSmarts Championship. Players answered more than 3 million consumer questions in the online competition.

MEDIA AVAILABILITY

When:  April 12, 2016
Where:  Embassy Suites Downtown Denver, 1420 Stout Street, Denver, CO  80202

Final and semi-final matches begin:  Tuesday, April 12, 9 a.m. Mountain Daylight Time
Awards Ceremony: 11:30 a.m. – 1:00 p.m. Mountain Daylight Time

Follow the competition online

Parents and teachers can follow the action at Facebook.com/LifeSmarts and via Twitter: #LifeSmarts

The semi-final and final competition matches will be streamed live at www.LifeSmarts.org.

Tuesday, April 12, 2016 starting at 9 a.m. Mountain Daylight Time (8 a.m. Pacific Time, 12 p.m. Eastern)

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About the National Consumers League and LifeSmarts

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

NCL statement on fiduciary rule – National Consumers League

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April 6, 2016

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

Washington, DC–The National Consumers League (NCL) welcomes new standards for investment advice that were finalized today and will be implemented by the Department of Labor. The rule is designed to ensure that all financial professionals who offer retirement investment advice act in their customers’ best interests. 

The following may be attributed to NCL Executive Director Sally Greenberg:

While this new rule will be of substantial assistance to retirees and those near retirement, its biggest impact will likely be for young people who will need to create their own retirement savings. They need to be able to rely on their investment advisors to act in their best interests. 

Many might assume that this basic, yet essential standard for consumer protection -for financial professionals to act in the customers’ best interests – was already required, but that was not the case until today.

According to estimates by the Obama Administration, more than $17 billion is unnecessarily lost every year from retirement savings under our current system. Over decades, putting this money back into the investment accounts of consumers will add up. This powerful new rule will benefit consumers well into retirement years and help solidify a financially secure future for millions of Americans.

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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 group letter to Sens. McConnell and Reid on FAIR Fees Act – National Consumers League

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April 5, 2016

The Honorable Mitch McConnell
Majority Leader
United States Senate
317 Russell Senate Office Building
Washington, DC 20510 

The Honorable Harry Reid
Minority Leader
United States Senate
522 Hart Senate Office Building
Washington, DC 20510

Dear Senators McConnell and Reid, 

The undersigned consumer and traveler advocacy organizations call on you and members of the U.S. Senate to adopt measures that strengthen consumer protections in the U.S. air travel industry. Specifically, as the Senate prepares to take up the Federal Aviation Administration Reauthorization Act of 2016 (S. 2658) we ask that you support the inclusion of the FAIR Fees Act (S. 2656), sponsored by Senators Markey and Blumenthal, as an amendment to the full bill.

Ancillary fees are out of control and the lack of effective competition means that market forces alone are unlikely to stop their growth. In 2015, U.S. airlines collected $10.8 billion in ancillary fees, an increase of 24% since 2014.[i] These fees, combined with historically low fuel prices and increasingly cramped seats drove record profits for the industry in 2015,[ii] a trend that is expected to continue in 2016.[iii]Ancillary fees bear little to no relation to the cost to actually provide the services these fees allegedly support. These add-on fees also generate significant consumer outrage. For example:

  • From 2009-2014, cancellation/change fees increased by 2-5 times the rate of inflation.[iv]
  • In April 2013, the three largest domestic airlines all raised their cancellation/change fees from $150 to $200 within two weeks of each other;[v]
  • Consumer complaints to the Department of Transportation (DOT) increased by 30 percent from 2014 to 2015. [vi]
  • Complaints about airline fares are the fastest-growing category of complaint to the DOT (97.93% year-over-year increase). [vii] 

The Justice Department (DOJ) pointed to exactly these kinds of anticompetitive fees in its complaint against the American Airlines-U.S. Airways merger when it stated:

  • “Increasing consolidation among large airlines has hurt passengers. The major airlines have copied each other in raising fares, imposing new fees on travelers, reducing or eliminating service on a number of city pairs, and downgrading amenities[;]”[viii] and
  • “In recent years, however, the major airlines have, in tandem, raised fares, imposed new and higher fees, and reduced service. Competition has diminished and consumers have paid a heavy price.”[ix]

The FAIR Fees Act, which enjoyed bipartisan support in the Senate Commerce Committee, would prohibit airlines from charging cancellation, baggage or other ancillary fees that are “unreasonable or disproportional to the costs incurred by the air carrier,” under standards to be set by the DOT. The bill does not seek to re-regulate the airlines, but it serves to remedy a systemic violation of the free market system that has been pointed out repeatedly by both DOT and DOJ. 

The FAA Reauthorization Act is an important opportunity for you and your Senate colleagues to protect the millions of consumers who depend on the airline industry to provide an affordable, dependable and safe travel experience. The FAIR Fees Act would do much to help reign in the industry’s increasing reliance on ancillary fees, which are unfairly squeezing the pocketbooks of the flying public. We urge you to support this common sense, pro-consumer bill.

Sincerely,

National Consumers League
Business Travel Coalition
Consumer Action
Consumer Federation of America
Consumers Union
Consumer Watchdog
FlyersRights.org
National Association of Airline Passengers
Public Citizen
Travelers United
U.S. PIRG

[i] Elliott, Christopher. “Airlines Made Close to $11 Billion Off of Fees This Year,” Fortune.com. November 18, 2015. Online: https://fortune.com/2015/11/18/airline-fees-customers/

[ii] 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

[iii] International Air Transport Association. “Airlines Continue to Improve Profitability 5.1% Net Profit Margin for 2016,” Press Release. December 10, 2015. Online: https://www.iata.org/pressroom/pr/Pages/2015-12-10-01.aspx

[iv] United States Senate Committee on Commerce, Science and Transportation. The Unfriendly Skies: Consumer Confusion Over Airline Fees: Staff Report for Ranking Member Nelson. August 6, 2015. Pg. 6. Online:  https://www.commerce.senate.gov/public/_cache/files/79d9b832-3d92-48a4-af4f-9a4cce28f5ae/8CB39475B79345233CAE7F94EB0129E1.8-6-15-final-airline-report.pdf

[v] Mayerowitz, Scott. “Analysis: Airline mergers have already led to higher fares,” Associated Press. August 14, 2013. Online: https://www.mercurynews.com/travel/ci_23861826/analysis-airline-mergers-have-already-led-higher-fares

[vi] U.S. Department of Transportation. “2015 Airline Consumer Complaints Up From Previous Year,” Press release. February 18, 2016. Online: https://www.transportation.gov/briefing-room/2015-airline-consumer-complaints-previous-year

[vii] U.S. Department of Transportation. Air Travel Consumer Report: February 2016. Pg. 43. Online: https://www.transportation.gov/sites/dot.gov/files/docs/2016FebruaryATCR_1.pdf

[viii] United States of American et al v. US Airways Group, Inc. and AMR Corporation. Complaint. Pg. 14, Para. 35. August 13, 1013.  Online: https://www.justice.gov/atr/case-document/file/514531/download

[ix] ibid. Pg. 3, Para. 1.