Consumer group applauds trio of Senators for requesting Congressional hearing to examine data security standards – National Consumers League

/in , /by

January 3, 2014

Contact: Ben Klein, NCL Communications, (202) 835-3323, benk@nclnet.org

Washington, DC – The National Consumers League (NCL), the nation’s pioneering consumer advocacy organization, is applauding a trio of Senators who are asking for a hearing on the nation’s data security standards. In the aftermath of the recent Target data security breach affecting 40 million credit and debit cards, Senators Robert Menendez (D-NJ), Mark Warner (D-VA), and Charles Schumer (D-NY) have signed a letter requesting that the Senate Banking Committee hold a hearing “as soon as reasonably possible.”

“It is time that Congress examine our data security standards and determine how business can better protect consumers’ financial information,” said Sally Greenberg, NCL Executive Director. “When our personal information is compromised, not only does it have the potential to cost the consumer significant time and money, but it also threatens our confidence in the security practices of the companies with whom we share our information. There is more that businesses can and should be doing to ensure our sensitive information is protected. Congress can be very helpful in pressing for a far stronger set of policies to protect private consumer financial data.”

The Senators were prompted to pen the letter to Sen. Tim Johnson (D-SD), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, by the Target data breach, which took place at the height of the busiest shopping time of 2013, between Thanksgiving and Christmas.

In early December, just a few days before news about the Target data breach emerged, NCL released a white paper discussing the impact of data breaches on consumer vulnerability to fraud and the resulting loss of trust in the online economy. The NCL white paper included a number of policy recommendations to better protect consumers’ data including calling for a national data breach notification standard and urging the Obama Administration to explore incentives and penalties to encourage private sector businesses to better protect consumer data.

NCL’s letter to Sen. Johnson urges Congress to take a closer look at the problem and corresponding solutions at a hearing. Federal agencies like the Federal Trade Commission, cyber security experts and advocacy groups of NCL can offer concrete proposals to better protect consumer data.

To read the letter, click here.

To read the white paper, click here.

###

About the National Consumers League

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

NCL commends the DC City Council for its vote in favor of workers’ rights – National Consumers League

/in /by

December 17, 2013

Contact: NCL Communications, Ben Klein, (202) 835-3323, benk@nclnet.org

Washington, DC—Today, the National Consumers League (NCL), the nation’s pioneering consumer and worker advocacy organization, applauds the DC City Council for two unanimous votes that will boost workers’ pay and expand paid sick days to tipped workers.

“This is a great step, very welcome, and long overdue,” said Sally Greenberg, NCL Executive Director. “We’re hopeful that Mayor Gray will sign the bills into law and better the lives of workers across Washington, DC. NCL thanks every member of the DC City Council for standing up for those on the lowest rung of the income ladder. You each have shown 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 two approved measures will expand the city’s 2008 law on paid sick leave to include workers whose incomes rely on tips and increase the minimum wage in the District for all other workers from $8.25 to $11.50 per hour over a three-year period.

“Consumers have spoken very clearly in overwhelming support of tipped workers who serve them at dining establishments, for improving their wages, and providing them with paid sick leave,” Greenberg said. “It’s not just a matter of compassion; it’s a matter of public health and food safety. If the proposals are ultimately signed into law,thousands of tipped workers will have the freedom to stay home to recover when they are sick, instead of coming to work and potentially infecting coworkers and customers. This is especially critical now that cold and flu season is upon us.”

According to the DC Fiscal Policy Institute, the gap between high-income and low-income households in the District is the third-highest among the 50 largest cities, after Atlanta and Boston. The $3.25 increase in the minimum wage, which will raise the minimum wage to $11.50, will help lift some 51,000 workers, who now struggle to make ends meet, out of poverty.

The typical minimum-wage worker is 34 years old, supports a family, and works full time. The new wage floor would mean a full-time salary of $23,920 a year, which will lift a family of three to just above the poverty level. “This is still not enough money to cover basic expenses, but it is a vast improvement of the current minimum wage,” said Michell McIntyre, NCL’s Outreach Director, Labor & Worker Rights.

Although the new minimum wage bill does not raise the tipped minimum wage (currently $2.77 an hour), Councilmember Mary Cheh introduced a measure that would make the tipped minimum wage the same as the standard minimum wage.

“We look forward to seeing both bills signed into law and working with Councilmember Cheh on a tipped minimum wage bill,” said Greenberg.

These two bills now head to Mayor Vincent Gray’s desk. He can sign the bills into law, veto the bills, which would send them 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 bills will become law. 

###

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.

Study: U.S. parents’ flu vaccine misconceptions concerning advocates – National Consumers League

/in /by

December 17, 2013

Contact: NCL Communications, Ben Klein, (202) 835-3323, benk@nclnet.org

Washington, DC—According to a new survey released (report PDF) by the National Consumers League (NCL), fears and misperceptions about flu vaccines persist among Americans—adults and parents of children under the age of 17 alike. With flu season underway and the start of winter upon us, consumer advocates are concerned that misinformation about side effects and ineffectiveness of vaccines may be contributing to a failure to have children vaccinated.

In recent years, the science has evolved on the importance of getting vaccinated for the flu. It used to be the case that medical experts recommended flu shots only for the most vulnerable groups; but because healthy people benefit from the vaccine as well, medical experts now recommend that nearly everyone get the flu shot.

“Getting the flu can be serious, especially to children under 5 and other high risk groups,” said NCL Executive Director Sally Greenberg. “In our survey, however, we found the majority of parents of a child in this age group have not had them vaccinated with the flu vaccine” Despite an obvious desire to avoid coming down with the flu, consumers are unlikely to receive a flu vaccine because of their perceived good health, and the assumed side effects and ineffectiveness of the vaccine. “For parents, there is a disconnect between fear of their child contracting the flu and a failure to get the recommended vaccines to prevent its spread,” said Greenberg.

The national survey was conducted online by Harris Interactive among 1,756 U.S. adult Americans, of whom 993 are parents of children under 18, in August – September 2013.

The survey findings are a reminder that we need continuing consumer and patient education on the importance of both adults and children receiving a flu shot annually. The American College of Physicians, for example, strongly advises Americans to receive the vaccines endorsed by the Center for Disease Control (CDC) Advisory Committee on Immunization Practices, which includes an annual flu shot.

“A new version of the flu vaccine is prepared annually to best match the strains of flu virus currently circulating; while the effectiveness of the vaccine is better some years than others, getting vaccinated always results in better protection than not getting vaccinated,” said Molly Cooke, MD, FACP, President of the American College of Physicians.  “The flu vaccine does not cause flu in vaccine recipients.  It is understandable that some people regard being in good health as a reason to skip vaccination. This is because we used to reserve flu vaccination for elderly people and those with serious chronic illnesses. However, it is now clear that healthy people benefit as well. In addition, the more of us who are vaccinated, the better our families and communities are protected.”

The CDC recommends that all individuals over the age of 6 months receive the flu vaccine each year. It is especially important for people who are at high risk of developing serious complications if they get sick with the flu, including children under 5, pregnant women and those with medical conditions like asthma and diabetes.  The bottom line is that healthy or not, everyone should be vaccinated against the flu.

“Despite consensus among health agencies and health care professionals that vaccines are good for individuals and communities, vaccinations have, in recent years, appeared to have developed a negative stigma, and this is preventing some of us from doing our part in disease prevention,” said Rebecca Burkholder, NCL Vice President for Health Policy. “This flu season, many consumers will fail to get vaccinated. Misconceptions about how vaccines work are putting  all of us at risk.”

Highlights from the survey

Men vs. Women: Perceptions of how ‘severe’ the flu is

Over a third of adults rate the flu as very severe.  Women are more likely to rate the flu as severe than men.

  • Thirty-six percent (36%) of adults rated the flu as an 8, 9, or 10 on a scale from 1 to 10 where 0 means “not at all severe” and 10 means “extremely severe.”
  • Women are more likely than men to rate the flu as an 8, 9, or 10 for severity (43% vs. 28%).

Adults aren’t current on vaccinations

While nearly three-quarters of adults (74%) say they have received the flu vaccine, nearly 32% of those last received the flu vaccine a year ago or more.

  • Just over 5 in 10 (53%) parents have received a flu vaccination within the last year, compared to nearly 7 in 10 (68%) adults.

Why we aren’t vaccinating

The most common reason for not receiving the flu vaccine among adults who reported they have never received a flu shot was their good health (45%), side effects (29%), and perceived ineffectiveness of the vaccine (24%).

  • One in five (21%) said the reason they have not received the flu vaccine is because they do not believe the flu is a serious illness.
  • One in five (20%) say they fear of contracting the flu from the vaccination is a reason they have not received the flu vaccine.

Parents of children under 18 who reported they have never received a flu shot were more likely to say that the flu is not a serious illness as a reason for not receiving the vaccine themselves (31%).  However, when parents were asked to rate how concerned they were about their child contracting diseases, they were more likely to report they were concerned about their child contracting the flu than any other disease on the list with the exception of meningitis.

  • Parents are more likely than the general population to avoid receiving a vaccination due to fears of contracting the flu as a result of the vaccination (29% vs. 20%).
  • 33% of parents report they are extremely or very concerned about their child contracting the flu.
  • 44% of parents say their child has received vaccine.

Where the Flu vaccine is received

A number of adults report receiving flu shots in venues like the workplace or retail health clinic.

  • Nearly 4 in 10 (39%)adults received the flu shot in their doctor’s office.
  • Nearly 1 in 5 (18%) adults received a flu shot in a retail clinic (located in large retail settings such as drug stores, grocery stores or big box stores).
  • Parents are more likely to use/take advantage of vaccinations offered by their employer/workplace (24% vs. 18% adults).

On self-reported knowledge

Adults who say they are extremely or very knowledgeable about how vaccines work were more likely than those who said they were somewhat or not at all knowledgeable to report they have received a flu vaccine (82% vs. 68%).

  • Adults are more likely to say it is extremely or very important or important for a child to receive recommended vaccinations than they are to say it is extremely or very important or important for an adult to receive recommended vaccinations (91% vs. 75%).

About the Survey

NCL commissioned this survey, conducted by Harris Interactive, with an unrestricted educational grant from Pfizer. NCL and Harris Interactive are solely responsible for the design of the survey

The NCL Vaccine Survey of  adult Americans was conducted with an emphasis on parents of children between 0-17, to investigate vaccination rates and opinions among the general US population. A total of 1,756 adults aged 18 + were surveyed nationally of whom 993 were parents of children aged 0-17. The survey was conducted online from August 22 to September 9, 2013.

Survey results are weighted to be representative of the US population for gender, age, ethnicity, education, income and region based on the current US Census.

The full survey report, including additional findings on vaccine perceptions, can be found online at www.nclnet.org.

###

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.

About Harris Interactive®
Harris Interactive is one of the world’s leading market research firms, leveraging research, technology, and business acumen to transform relevant insight into actionable foresight. Known widely for The Harris Poll®, Harris offers proprietary solutions in the areas of market and customer insight, corporate brand and reputation strategy, and marketing, advertising, public relations and communications research across a wide range of industries. Additionally, Harris has a portfolio of multi-client offerings that complement our custom solutions while maximizing a client’s research investment. Serving clients worldwide through our North American and European offices, Harris specializes in delivering research solutions that help our clients stay ahead of what’s next. For more information, please visit www.theharrispoll.com.

FTC Chairwoman Edith Ramirez speaks at National Consumers League event on identity theft – National Consumers League

/in , /by

December 16, 2013

Contact: Ben Klein, NCL Communications, (202) 835-3323, benk@nclnet.org

Washington, DC – Speaking at a National Consumers League event on identity theft, FTC Chairwoman Edith Ramirez said Thursday that more can be done by the private sector and government to protect consumers and businesses from identity theft.

“It’s clear to me that we need to do more,” said Ramirez, who called for the government to make sure “small and medium sized companies know what they need to do and really understand the importance of data security.”

Chairwoman Ramirez was joined by former FTC Chairwoman Deborah Platt Majoras in giving keynote remarks at the event yesterday. Majoras served as founding co-chair of President George W. Bush’s Identity Theft Task Force from 2006-2008, leading a major campaign by the federal government to address the growing threat of ID theft.

The two officials joined experts in consumer protection and data security to discuss the growing problem of identity theft, which affected 12.6 million Americans in 2012. Fraud and identity theft have topped the list of FTC consumer complaints for 13 straight years. Although policymakers have taken strides to cut the incidence of these online crimes, the threat remains: every three seconds, a new American becomes a victim of identity theft.

“This event helped to focus attention on the continuing challenge of protecting consumers from identity theft,” said Sally Greenberg, executive director of the National Consumers League. “Government at all levels, along with law enforcement, have taken steps to help protect consumers from identity theft, but more must be done. We thank Chairwoman Ramirez and former Chairwoman Majoras for joining us to discuss the task of protect consumers from identity thieves and online fraud.”

The event coincided with the release of a new National Consumers League policy paper entitled “The State of Identity Theft in 2013.” The policy paper, authored by John Breyault, NCL’s Vice President of Public Policy, Telecommunications and Fraud, discusses the measures that have been put in place to protect consumers, and puts forward specific policy recommendations to improve identity theft protections for the future.

“We have taken important steps over the past 15 years to help protect consumers from identity theft,” said Breyault. “But policymakers, advocates and the general public must work to stay ahead of identity thieves and reduce the risk of identity theft. We hope this week’s discussions will be an impetus for further action against online identity thieves.”

Watch a video of the event on the National Consumer League’s YouTube channel.

###

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 tech industry efforts to address government surveillance – National Consumers League

/in /by

December 10, 2013

Contact: NCL Communications, Ben Klein, (202) 835-3323, benk@nclnet.org

Washington, DC – The National Consumers League (NCL), the nation’s pioneering consumer and worker advocacy organization, today applauded the announcement by eight major technology industry companies of a coordinated effort to address the widespread collection of consumer data by the U.S. government.

In an open letter to Congress and the Obama Administration, the companies – AOL, Apple, Facebook, Google, LinkedIn, Microsoft, Twitter, and Yahoo — urged the federal government to abide by a set of principles limiting the massive collection of data about American citizens by federal intelligence agencies.

“Reforms addressing the mass surveillance of ordinary Americans is long overdue,” said NCL Executive Director Sally Greenberg. “Consumers expect that the corporations to which they entrust their data will not turn it over to the government without very specific goals and parameters tied closely to achieving specific national security goals.”

NCL supports legislation, like that introduced by Senators Jeff Merkley (D-OR), Mike Lee (R-UT) and Ron Wyden (D-OR), that would require the Department of Justice to unseal certain rulings by the Foreign Intelligence Surveillance Act (FISA) courts. This would do much to shine a spotlight on the workings of this court and start to restore consumers’ trust in the telecommunications and technology industry.

NCL appreciates that many companies have said no to demands for bulk data and commends these eight companies for asking for scrutiny over government intrusion into the private data of ordinary citizens.

###

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.

Statement on Nelson Mandela’s passing – National Consumers League

/in /by

December 6, 2013

Contact: NCL Communications, Ben Klein, (202) 835-3323, benk@nclnet.org

Washington, DC — The following statement can be attributed to NCL Executive Director Sally Greenberg:

The National Consumers League mourns the death of Nelson Mandela, one of the most transformational and inspirational leaders in the modern era. Mr. Mandela was willing to give his life to the cause of dismantling South Africa’s vicious and oppressive system of racial apartheid. He spent 27 years in prison before being released in 1990, going on to become President of South Africa. Mandela stood for dignity and respect for people the world over. Admirably, when he accepted the role of leader of his nation, he did so without turning to rancor or vengeance against his earlier tormentors. In so doing, he inspired his countrymen and women to put down their weapons, reject anger and recrimination, and strive for a peaceable and harmonious transition to democracy.

The National Consumers League’s 114 year commitment to championing the rights of consumers and the dignity of working people is very much in keeping with the causes to which Nelson Mandela was devoted.   In the pantheon of great leaders throughout human history, Mandela surely stands at the top. We salute his life and mourn his passing.

###

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.

Consumers League applauds DC Council vote – National Consumers League

/in /by

December 3, 2013

Contact: NCL Communications, Ben Klein, (202) 835-3323, benk@nclnet.org

Washington, DC–The National Consumers League (NCL) today applauded the DC City Council for votes that would boost workers’ pay and expand their paid sick days.

“These are great first steps, very welcome, and long overdue,” said Sally Greenberg, NCL Executive Director.

The two measures approved would expand the city’s 2008 law on paid sick leave to include workers whose incomes rely on tips and increase the minimum wage in the District for all other workers from $8.25 to $11.50 per hour over a three-year period.

“Consumers have spoken very clearly in overwhelming support of tipped workers who serve them at dining establishments, for improving their wages and providing them with paid sick leave,” Greenberg said. “It’s not just a matter of compassion; it’s a matter of public health and food safety.”  

“If the proposals are ultimately adopted, thousands of tipped workers will have the freedom to stay home to recover when they are sick, instead of coming to work and potentially infecting coworkers and customers,” said Greenberg. “This is especially critical now that cold and flu season is upon us.”

According to the DC Fiscal Policy Institute, the gap between high-income and low-income households in the District is the third-highest among the 50 largest cities, after Atlanta and Boston. The $3.25 increase in the minimum wage will help some 51,000 workers who now struggle to make ends meet and help to lift them out of poverty.

The typical minimum-wage worker is 34 years old, supports a family, and works full time. The new wage floor would mean a full-time salary of $23,920 a year, which will lift a family of three to just above the poverty level. “This is still not enough money to cover basic expenses, but it is a vast improvement of the current minimum wage,” said Michell McIntyre, NCL’s Outreach Director, Labor & Worker Rights.

Although the new minimum wage bill does not raise the tipped minimum wage (currently $2.77 an hour), Councilmember Mary Cheh introduced a measure that would make the tipped minimum wage the same as the standard minimum wage.

“We look forward to seeing both bills signed into law and working with Councilmember Cheh on a tipped minimum wage bill,” said Greenberg.

###

About the National Consumers League

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

Child Labor Coalition press release: Ban Child Labor in US Tobacco Fields – National Consumers League

/in /by

November 22, 2013

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

Washington, DC—In the wake of child labor exposés by The Nation magazine last week, the Child Labor Coalition is calling on the U.S. Department of Labor (DOL) to immediately ban child labor in tobacco fields—something the department had proposed to do in 2011.

In “Why Are Children Working in American Tobacco Fields?,” Gabriel Thompson’s reporting describes the alarming health risks young tobacco workers face. He tells the story of three young sisters age 12, 13, and 14 whose tobacco harvesting made them ill from “green tobacco sickness” or nicotine poisoning. Despite their health problems, the girls went on to work four summers of 60-hour weeks in the tobacco fields, absorbing the nicotine from the equivalent of 36 cigarettes each day, according to a study cited by The Nation.

“We don’t let 12-year-olds buy and smoke cigarettes,” noted Sally Greenberg, co-chair of the Child Labor Coalition and the executive director of the National Consumers League. “Why would we let them perform dangerous work in tobacco fields beginning at the age of 12? It simply isn’t right.”

“Children should not be allowed to perform dangerous work, especially in the tobacco fields,” said Norma Flores López, Chair of the Domestic Issues Committee for the Child Labor Coalition and the Director of the Children in the Fields Campaign at the Association of Farmworker Opportunity Programs. “Children are especially vulnerable to the effects of nicotine, pesticides and heat stress they are exposed to in the tobacco fields. We urge the Secretary to put the health of farmworker children over the interest of tobacco companies, and strengthen the protections for children working in agriculture.”

Thompson’s reporting cited a study that one in four tobacco workers contract green tobacco sickness.”Symptoms range from dizziness and vomiting to difficulty breathing and heart rate fluctuations requiring hospitalization,” reported Thompson. “The pain can be so excruciating that some workers call it ‘the green monster.’ A tobacco farmer in Kentucky said the sickness ‘can make you feel like you’re going to die…’”

Thompson notes that the known hazards of tobacco work have led countries “like Russia and Kazakhstan to ban anyone under 18 from harvesting tobacco,” and that the US “has played a role in such global efforts, recently spending at least $2.75 million” to eliminate child tobacco labor in Malawi.”

The US Department of Labor had called for a ban on tobacco harvesting by individuals under 18 in proposed “hazardous occupations orders” issued in 2011. These proposed occupational safety rules would have limited or prohibited teen work in 15 areas that are known to be dangerous for teen workers—unless the young individual was working on their family’s farm. Sadly, the rules were withdrawn in April 2012 after months of intense pressure from the American Farm Bureau and many members of the farm community. Many health and safety advocacy groups, including the CLC, felt the campaign against the proposed rules, which would have exempted children working on their own family farm, profoundly misleading.

When the proposed rules were withdrawn, the CLC estimated that not implementing them would result in the death of 50 to 100 working children on farms over the next decade.

“In withdrawing these badly needed safety rules, the Obama Administration yielded to industry lobbyists, but this new information about exposure to tobacco raises new warning flags,” noted Greenberg. “The Nation’s reporting makes it clear that the US government has a responsibility to protect 12-year-olds toiling in the fields. It must pick up the process it started and protect child workers from the known dangers of tobacco harvesting.”

In an accompanying piece, “Regulations are Killed, and Kids Die,” researcher Mariya Strauss notes that at least 12 young farmworkers under the age of 16 have died since the proposed regulations were withdrawn. “At least four of them died doing the hazardous tasks those rules would have prohibited them from performing,” said Strauss.

Federal data on youth occupational injuries and fatalities is glaringly incomplete, suggested Strauss: “It’s impossible not to conclude that incidents are being missed.” The CLC calls on the federal government to correct the numerous data flaws cited by Strauss. “Without accurate data collection, health and safety experts cannot design appropriate prevention strategies,” said Reid Maki, coordinator of the CLC.

“We owe it to our children to give them every opportunity to thrive, and to keep them out of harm’s way,” said Lorretta Johnson, Secretary Treasurer of the American Federation of Teachers and Co-Chair of the CLC, “It is our responsibility to educate the whole child and look after their well being in and out of the classroom. Congress must raise the age at which children can work for wages in agriculture from the current age of 12 to the same minimum age of all other industries—15 or 16. Legislation currently in Congress, the Children’s Act for Responsible Employment (CARE), H.R. 2342, addresses the inequities and harsh conditions faced by many child farm laborers, it would close the child labor loopholes for kids not working on their family’s farm. We cannot afford to let political pressure keep us from fulfilling our collective responsibility of providing all children with equal access to high quality public education.”

###

About the Child Labor Coalition

The Child Labor Coalition is comprised of 30 organizations, representing consumers, labor unions, educators, human rights and labor rights groups, child advocacy groups, and religious groups. It was established in 1989, and is co-chaired by the National Consumers League and the American Federation of Teachers. Its mission is to protect working youth and to promote legislation, programs, and initiatives to end child labor exploitation in the United States and abroad. For more information, please call CLC Coordinator Reid Maki at (202) 207-2820 [reidm@nclnet.org].

National Consumers League statement on decision by major wireless carriers to cease commercial PSMS billing – National Consumers League

/in /by

November 22, 2013

Contact: NCL Communications, Ben Klein, (202) 835-3323, benk@nclnet.org

Washington, DC—The National Consumers League, the nation’s pioneering non-profit consumer and worker advocacy organization, today applauded the agreement between 45 state Attorneys General and three major wireless carriers – AT&T, Sprint and T-Mobile – to end billing for commercial Premium Short Messaging Services (“PSMS”). The decision addresses a major source of cramming – the unauthorized placement of third-party charges on consumers’ cell phones. The carriers will reportedly continue to provide billing services for charitable donations.

The NCL has led a campaign to reform third-party billing and address the threat of cramming. Last year, in response to pressure from consumer groups, the class-action bar, Congress and federal and state regulators, the nation’s major landline telephone carriers agreed to cease billing for so-called “enhanced” services, which had been a major source of cramming. Yesterday’s announcement is a major step towards addressing the migration of cramming fraud to wireless phone bills. A NCL analysis earlier this year estimated that cramming on wireless phone bills costs American consumers $887 million annually.

“This announcement is a major victory for consumers,” said Sally Greenberg, NCL Executive Director. “As we have long argued, third-party billing on phone bills is an inherently insecure payment method. We are glad to see that the wireless industry is committed to protecting its subscribers from fraud while preserving legitimate uses of this technology, such as text-to-donate.”

While this is welcome news for millions of consumers, the agreement is reportedly only a voluntary commitment by the three carriers. Second, the nation’s largest wireless carrier, Verizon Wireless, is not part of the agreement. However, according to a statement from the company, the carrier is also planning to end premium messaging. We believe that regulation is still necessary to give these voluntary agreements the force of law and to ensure that cramming fraud doesn’t migrate to smaller rural and regional wireless carriers.

“Voluntary commitments are a good first step towards ending wireless cramming once and for all,” said John Breyault, NCL Vice President of Public Policy, Telecommunications and Fraud. “However, regulations are still necessary to protect all wireless, landline and VoIP users. Consumers shouldn’t be less protected from cramming just because they don’t get service from one of the biggest carriers.”

###

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 issues holiday travel advisory: Think twice before purchasing travel insurance this season – National Consumers League

/in /by

November 22, 2013

Contact: NCL Communications, Ben Klein, benk@nclnet.org, (202) 835-3323

Washington, DC – The nation’s pioneering consumer advocacy organization has issued a warning to consumers planning air travel this holiday season to avoid wasting money on travel “protection” insurance policies, which are often worthless to consumers.  The Washington, DC-based National Consumers League (NCL) found, in a report published this fall, that while online travel Web sites offer insurance as “peace of mind” for the consumer, some of the most popular policies give little actual protection if something unexpected necessitates and change in travel plans.

As the nation enters the beginning of the holiday travel season, and with one of the busiest travel weeks of the year just ahead, NCL is warning air travelers to think twice before making travel insurance purchases and read the policies over carefully before buying. According to the industry trade group Airlines for America, an estimated 25 million passengers will fly over the 12-day Thanksgiving travel period.

“With the rising cost of airfare, and the inability for most consumers to afford truly flexible, refundable tickets, consumers reasonably fear that the need for a last-minute change to air itineraries could break the bank. Enter air travel insurance, which consumers are buying to hedge against the risk of paying hefty change or cancellation fees,” said Sally Greenberg, NCL Executive Director. “The unfortunate reality is that these ‘protection’ policies bring in big bucks for the airlines each year but offer very little real value for consumers.”

Airline travel insurance is typically marketed as a small add-on after consumers buy tickets. The fee is typically based on the price of the ticket. These small fees are big business for the airlines industry. Travel insurance sales ballooned to a nearly $2 billion industry in 2012. It is unclear how much travel insurance policies actually pay out in benefits. Based on the high commissions travel insurance agents advertise receiving, advocates suspect that it is significantly higher than commissions earned for more traditional auto, home, or life insurance.

The NCL study focused on trip-cancellation insurance, which is aggressively marketed during the airline ticket-buying process. For example, the checkbox to buy travel insurance is sometimes pre-checked, meaning consumers must actively decline insurance they may not want in the first place.

NCL has issued a number of recommendations for reform, including a requirement that insurance sellers be transparent about the percent of claims they actually pay out. This would enable consumers to better judge the value of travel insurance. For example, relatively low premiums for travel insurance may not be a good deal if there is a track record of paying out few claims.

NCL’s close inspection of the fine print in these travel insurance policies revealed a long list of exclusions, including some of the most common scenarios an air travel consumer could reasonably anticipate. For example, common exclusions include losses stemming from:

  • Illness involving an existing medical condition
  • Pregnancy or childbirth
  • Termination of employment
  • A business meeting being cancelled
  • A student’s test date being changed

“While airline travel insurance may seem like a modest price to pay to protect yourself from bigger costs later, the reality is that this insurance may not pay out,” said John Breyault, NCL Vice President of Public Policy, Telecommunications and Fraud and author of NCL’s report. “Travel insurance gives consumers a false sense of comfort that they will be covered in the event they need to change their flight. In reality, these policies are riddled with exclusions and exceptions and are likely a bad deal for consumers.”

To read NCL’s full report, click here.

###

About the National Consumers League

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