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.

Consumer Fraud Alert: Unwanted software downloads costing Americans billions – National Consumers League

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April 5, 2016

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

Washington, DC—The nation’s pioneering consumer advocacy organization is today issuing a warning for consumers about the increasing prevalence of unwanted software—annoying and sometimes dangerous malware being downloaded unknowingly by computer users. According to the National Consumers League (NCL), which operates the newly relaunched Fraud.org, unwanted software is installed on tens of millions of computers in America and is associated with billions of dollars in fraud every year.

“When you download free software, it might come with an unexpected addition: hidden programs that can cause problems on your computer ranging from the merely annoying to truly dangerous,” said John Breyault, vice president of public policy, telecommunications, and fraud. “Unwanted software has been around for some time, but in recent years, it has become an even bigger concern for Internet users and is a significant enough threat to consumers that we’ve issued today’s Fraud Alert to warn them and help prevent these downloads.”

A May 2015 study by Google, UC Berkeley, and UC Santa Barbara found that tens of millions of visitors to Google’s services had unwanted adware installed on their computer. Within that group, half had at least two, and nearly one-third of users had at least four such programs infecting their machines. And that’s just for one type of unwanted software infection. Unwanted software was the source of nearly 20 percent of complaints from Chrome users alone in 2014.

A similar study by security firm Namogoo found that 15-30 percent of e-commerce website visitors were infected with malware that causes them to view injected ads, malicious links, and fraudulent spyware on otherwise legitimate sites.

Unwanted software imposes a range of costs on consumers affected by it. They can slow computers to a crawl, resulting in wasted time for users. It can prompt consumers to spend money on expensive computer support services to get the infections removed from their computers. Worst of all, unwanted software can raise the risk of identity fraud, which could potentially result in lost job opportunities, difficulty in obtaining credit, delays in obtaining tax refunds, and thousands of dollars in direct costs.

“While unwanted software can appear to be simply an annoyance that detracts from the experience of using a browser, these dangerous downloads in fact pose a significant security risk to consumers’ personal information,” said Breyault. “Some software will disable security protections and settings to take control of a consumer’s computer, leaving that computer vulnerable to hackers and data thieves.”

At Fraud.org, the new alert explains how unwanted software can get onto someone’s computer, the damage it can cause, and what a consumer should do to do if they have already installed it. The consumer group offers the following tips for avoiding it in the first place:

  • Get your software directly from the source. When you’re looking for a new program, look on the publisher’s website first. Software download repositories may bundle in unwanted software with legitimate downloads.
  • Avoid clicking on pop-ups or banner ads that warn you of slow performance on your computer. This is often a ruse to lead you to websites that host unwanted software.
  • Make sure everything is up-to-date. To best protect yourself, repeatedly update your browser and operating systems; older systems are more susceptible to being infected by malware. Be sure to check for computer and browser updates in computer settings. Ads claiming that your computer software is out-of-date are likely to lead you to more unwanted software.
  • Routinely scan your computer. Use antivirus software to regularly scan your computer for programs that you don’t recognize.
  • Pay attention when installing new software. When downloading programs and extensions, pay attention to the fine print. In particular, be on the lookout for pre-checked boxes that offer to install things like toolbars or other software in addition to the software you were looking for.
  • Heed your browser’s warnings. Most major Web browsers now have functionality built-in that will warn you when you are about to enter an unsafe website. Chances are that if your browser is telling you to not visit a certain website or download a particular program, you’re better off steering clear.

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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 applauds U.S. Supreme Court decision on Friedrichs v. California Teachers Association – National Consumers League

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March 31, 2016

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

The National Consumers League (NCL) applauds the outcome in the critically important public sector union dues case of Friedrichs v. California Teachers Association. The decision was handed down this week by the Supreme Court. The case was argued before the Court while the late Justice Antonin Scalia was still sitting, and his hostile questions signaled a sure vote against the unions. But this week the Court ended with a deadlocked 4 to 4 decision.

A ruling against the Califonia Teachers Association would have dealt public sector unions a severe blow, hampering their ability to collect fees from workers who chose not to join the union. These workers would benefit from the gains the union negotiations provide, but would have been allowed, had Friedrichs gone their way, to get out of paying dues. 

As NCL noted in an earlier statement, conservative foundations and business leaders orchestrated the effort to bring this case to a Supreme Court whose majority was–while Scalia was still sitting the Court–not favorable to unions. “This brass-knuckles campaign to weaken public sector unions is a decades-long strategy that came up short,” said Sally Greenberg, executive director of the League. “The 4-4 deadlock denied enemies of those unions that victory.”

When the case was argued in January, the Court’s conservative majority seemed ready to decide that forcing public workers to support unions they had declined to join violates the First Amendment. Justice Scalia’s death changed the balance of power in this case.

NCL appreciates the support expressed by four justices for the right of unions to collect dues from all workers who benefit from the fruits of collective bargaining. Justices Ruth Bader Ginsburg, Stephen G. Breyer, Sonia Sotomayor, and Elena Kagan all voted in support of unions and of employees paying their fair share. 

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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.

All-new Fraud.org launched with special data breach education portal – National Consumers League

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March 29, 2016

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

Washington, DC—The nation’s pioneering consumer advocacy organization, the National Consumers League (NCL) today unveiled an all-new Fraud.org, its consumer fraud education Web site. With an updated design, improved user experience, and a new consumer portal about understanding the current epidemic of data breaches, Fraud.org is a valuable new consumer education resource for consumers, media, and policymakers in Washington and beyond.

Since 1992, NCL has tracked trends in scams by collecting complaints from consumers—first via a toll-free hotline, and now at Fraud.org. The consumer group provides direct counseling to victims and relays reports daily to more than 90 law enforcement and consumer protection agencies in the United States and Canada, including the Federal Trade Commission, state Attorneys General, and police departments. For 20 years, Fraud.org has been one of the nation’s premier resources for consumers to learn about and report Internet and telemarketing scams.

“We are proud to debut the new and improved Fraud.org, an invaluable tool in the fight against fraud,” said Sally Greenberg, NCL executive director. “Because we track data as provided to us directly from consumers, Fraud.org is able to identify trends in emerging scams and deliver crucial information to consumer protection professionals and law enforcement to help them bring con artists to justice.”

“Stopping fraud is one of the most important ways that the FTC improves consumers’ lives. The FTC’s Consumer Sentinel complaint database is a critical tool in that fight, but its success relies on contributors like the National Consumers League,” said FTC Commissioner Maureen K. Ohlhausen. “NCL has greatly added to the FTC database’s volume and diversity and its new and improved Fraud.org no doubt will further strengthen our partnership in the ongoing fight against fraud.”

Fraud remains a widespread problem, costing Americans billions of dollars annually. The growing epidemic of data breaches plaguing American businesses and consumers prompted the watchdog group to enhance its resources for education and prevention. NCL also publishes a bi-weekly email newsletter, The #DataInsecurity Digest, focused on breach news, policy, and advocacy.

“Fraud.org’s new ‘Data Breach HQ’ is the culmination of years of work on our #DataInsecurity project. Until now, we’d been focused on keeping policymakers and advocates informed about the data breach epidemic and our call for improved security and regulations,” said John Breyault, NCL vice president of public policy, telecommunications, and fraud. “With the new site’s special section on data breaches, we’ve brought need-to-know information to consumers—alerts about the latest breaches and their implications, information about how to avoid identity theft, and more.”

Through a complete overhaul of its design, the new Fraud.org will make it easier for consumers to find the information they need to avoid scams. In addition to the new data breach portal, the new site includes easy access to monthly fraud alerts identifying emerging scams, tips on identifying and avoiding common scams, and an improved form for reporting incidents of fraud.

“With new scams popping up every day, there is a greater need than ever for reliable information to help consumers spot the scams and avoid becoming a fraud victim statistic,” said Breyault. “We aim to make Fraud.org a go-to resource for consumers so they can find the information they need to avoid the daily onslaught of fraudulent tricks and traps.” 

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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 welcomes long-overdue OSHA silica rule – National Consumers League

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March 25, 2016

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

Washington, DC–The National Consumers League (NCL), the nation’s pioneering consumer and worker advocacy organization, is welcoming news that the U.S. Department of Labor will release a long-awaited and long-overdue standard on silica. The following statement may be attributed to NCL Executive Director Sally Greenberg, who testified before the U.S. Occupational Safety and Health Administration (OSHA) on the issue in 2014:

An estimated 2.2 million American workers are exposed to silica dust every year, with about 1.8 million of those working in construction. Exposure can lead to silicosis, as well as increased susceptibility to lung cancer, kidney disease, and autoimmune disorders.

The current silica standards, adopted more than 40 years ago, are badly outdated, and the new silica regulations would limit levels of dust exposure for workers and prevent an estimated 1,600 new cases of silicosis.

NCL commends the DOL staff and leadership for their steadfast work to bring this rule to fruition. 

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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 calls on Senate to add additional consumer protection provisions to FAA Reauthorization Act – National Consumers League

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March 21, 2016

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

Washington, DC—The National Consumers League (NCL) today called on Congressional leaders to build on the bipartisan support for pro-consumer amendments to the Senate’s Federal Aviation Administration (FAA) Reauthorization Act as the bill moves toward a vote on the floor of the Senate.

Last week, thanks to the diligent work of Senators Blumenthal, Klobuchar, Markey, and Nelson, the Senate Commerce Committee passed a FAA Reauthorization Act that includes many pro-traveler provisions that address concerns consumers have voiced for years. Requirements including airlines refund baggage fees when luggage arrives late, increased fee disclosure rules, and improvements to the Department of Transportation (DOT) complaint process are all provisions of the bill that will improve the flying experience for millions of travelers. However, there remain many serious issues that need to be addressed as the bill moves toward a floor vote.

In particular, NCL urges the full Senate to improve the bill by passing pro-consumer amendments like Senator Markey’s FAIR Fees Act, which received bipartisan support to prohibit air carriers from imposing fees that are “not reasonable and proportional” to the costs incurred by the air carriers. The Senate should also approve Senator Schumer’s proposal to require the FAA to establish minimum seat and seat pitch size standards.

“Industry consolidation, cheap fuel, packed planes, and a never-ending list of fees have combined to drive airline industry profits to historic levels,” said Sally Greenberg, NCL executive director. “The Senate Commerce Committee took the first step, and now it’s time for the full Senate to step in and ensure that the industry’s profits are not coming at the expense of consumers’ safety and pocketbooks.”

The FAA Reauthorization Act is also an important opportunity for the Senate to act on NCL’s recommendations that additional consumer protections be mandated to protect the flying public including:

  • Mandating that all ancillary fee data be reported so that consumers can compare flights based on the true cost of flying, not just a deceptively low base fare;

  • Giving the Department of Transportation authority to regulate unfair and deceptive acts and practices in the market for travel insurance;

  • Requiring travel insurance loss ratios to be reported, as the Affordable Care Act requires of health insurance providers;

  • Tiering cancellation fees based on the proximity of the travel dates;

  • Allowing consumers to transfer their tickets to another traveler without incurring a fee; and,

  • Eliminating standby fees for missed flights.

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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 FAA regarding reauthorization bill – National Consumers League

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March 16, 2016

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

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

Dear Senators Thune and Nelson:

The American air travel industry has, in less than a decade, consolidated from nine national carriers to just four today. Between them, American, Delta, Southwest and United control 80% of the market for domestic air travel.[1] Consolidation, combined with cheap fuel, increasingly cramped cabins and a litany of fees, has enabled the airlines to post their highest profits on record — $14.1 billion for the Big Four airlines alone. The industry’s record profits are set to continue as far as the eye can see, and are estimated at $33 billion in 2016, according to the International Air Transport Association.

As the Commerce Committee considers S.2658, the Federal Aviation Administration Reauthorization Act of 2016, consumer organizations ask that you support measures to ensure that these profits are not coming at the expense of the wallets, care, and safety of the flying public. To achieve this, the undersigned organizations urge you and your colleagues to strengthen S.2658 by approving a number of consumer protection amendments.

Specifically, we ask that you support the following amendments:

  • Blumenthal_6 – The average American is today 20-30 pounds heavier and an inch taller that in 1960.[2] However, airlines have reduced average legroom from 35 inches in 1970 to 31 inches today. Average seat width has shrunk from 18 inches to 16 ½ inches in the same timeframe.[3]  There are also far more people occupying those shrinking seats. The average flight is now 85% full – an industry record.[4] This amendment would freeze further seat size reductions while the Department of Transportation (DOT) establishes minimum standards for safe seat size for egress and for passengers’ ability to move around and avoid such conditions as deep vein thrombosis, a condition associated with long airline flights.
  • Blumenthal_7 – The Federal Aviation Administration (FAA) hasn’t studied whether reductions in seat sizes have affected the ability of consumers, including people with disabilities, to evacuate safely in the event of an emergency. This amendment would require the FAA to conduct a review and update its regulations on emergency evacuations.
  • Blumenthal_10 – This amendment provides consumers with a private right of action against unfair and deceptive practices by an air carrier, foreign carrier, or ticket agent. This amendment would add much-needed enforcement resources, through a private right, against abuses of the flying public by airlines.
  • Blumenthal_11 – This amendment prevents air carriers from claiming that federal law preempts consumers and states from bringing claims under state consumer protection laws. This would strengthen the ability of consumers and state attorneys general to hold airlines accountable for abuses against the flying public.
  • Blumenthal_15 – In 2015, consumers spent an estimated $3.8 billion on baggage fees alone.[5] This amendment would require the Government Accountability Office to conduct a report on the effects of baggage fees on increased airport security costs and other economic disruptions.
  • Blumenthal_18 – This amendment would prohibit the use of electronic cigarettes on board an aircraft.
  • Blumenthal_29 – This amendment would extend the charter of the Advisory Committee on Aviation Consumer Protection until 2022, protecting a key venue for consumer concerns about the airline industry to be heard on the record.
  • Blumenthal_30 – The value of a robust consumer complaint database has been demonstrated by numerous federal agencies, including the National Highway Traffic Safety Administration, the Consumer Product Safety Administration and the Consumer Financial Protection Bureau. This amendment would require airlines to forward consumer complaints to the DOT and make those publicly available.
  • Blumenthal_34 – This amendment would require the DOT to examine airlines’ agreements to provide alternative flights on another airline in the event of a delayed or cancelled flight.
  • Blumenthal_35 – This amendment would empower the DOT to investigate unfair or deceptive practices in the offering- and coverage provided by –  flight cancellation insurance, an issue raised in a 2013 report on travel insurance.[6]
  • Blumenthal_37 – This amendment would require airlines to provide automatic refunds of baggage fees if a bag is delayed by more than 6 hours (12 hours for international flights) or damaged.
  • Blumenthal_40 – This amendment would prohibit air carriers from limiting access by consumers to information about schedules, fares and fees. This would do much to allow online ticketing agents and travel search engines to develop tools that can accurately show the true cost of flying, including fees.
  • Markey_20 – The airlines are seeing their profits surge largely because of a range of add-on fees that bear little relation to cost of the services provided.[7] This amendment, originally offered as a the Forbid Airlines from Imposing Ridiculous Fees Act of 2016 (FAIR Fees Act) by Senators Markey and Blumenthal, would prohibit air carriers from imposing ancillary fees that are not reasonable and proportional to the costs incurred by the air carriers.

U.S. airlines have long argued that competition, driven by industry deregulation, would provide a check on anti-consumer conduct in the industry. However, as the American airline industry has consolidated, competitive pressures have vanished, leaving consumers to bear the brunt of higher fees, less space and atrocious service. With complaints skyrocketing, consumers are telling Washington “enough is enough.”[8] S. 2658 is an important opportunity for Senators on this Committee to promote greater transparency and accountability on the part of the airlines. We urge you to support these important amendments.

Sincerely,

Sally Greenberg
Executive Director
National Consumers League

Linda Sherry
Director, National Priorities
Consumer Action

Susan Grant
Director of Consumer Protection and Privacy
Consumer Federation of America

George Slover
Senior Policy Counsel
Consumers Union

Ed Mierzwinski
Consumer Program Director
U.S. PIRG

CC: Members of the Senate Commerce Committee

 

[1] Mutzbaugh, Ben. “Era of airline merger mania comes to a close with last US Airways flight,” USA Today. October 16, 2015. Online: https://usat.ly/1OxPQll

[2] Remarks of Congressman Steve Cohen. “INTRODUCTION OF SEAT EGRESS IN AIR TRAVEL (SEAT) ACT,” Congressional Record. February 8, 2016.

[3] Elliott, Christopher. “Your airplane seat is going to keep shrinking,” Fortune. September 12, 2015. Online: https://fortune.com/2015/09/12/airline-seats-shrink/

[4] Bureau of Transportation Statistics T-100 Segment data. Online: https://www.transtats.bts.gov/Data_Elements.aspx?Data=5

[5] Bureau of Transportation Statistics. “Baggage Fees By Airline 2015,” December 15, 2015. Online: https://www.bts.gov/content/baggage-fees-airline-2015

[6] National Consumers League. “Air travel insurance big bucks, little protection,” Press release. September 2013. Online: https://nclnet.org/air_travel_insurance_big_bucks_little_protection

[7] Mutzabaugh, Benjamin. “Airlines collected record baggage fees in 2012,” USA Today. May 15, 2013. Online: https://www.usatoday.com/story/todayinthesky/2013/05/14/airlines-collected-record-baggage-fees-in-2012/2158983/ (“The airlines took in $159.5 billion in revenue last year and had expenses of $153.6 billion, according to the government. That 3.7% profit margin comes entirely from the baggage and change fees.”)

[8] Department of Transportation. “2015 Airline Consumer Complaints Up From Previous Year,” Press Release. February 18, 2016. Online: https://www.bts.gov/newsroom/2015-airline-consumer-complaints-previous-year

NCL calls on car services to ‘do the right thing’ and avoid gouging consumers during Metro shutdown – National Consumers League

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March 16, 2016

Contact: Carol McKay, (412) 945-3242, carolm@nclnet.org | Sally Greenberg, (202) 631-2301, sallyg@nclnet.org

Washington, DC—With this morning’s WMATA Metrorail service shutdown, the National Consumers League (NCL) is calling on car services including taxis and ride sharing services to do the right thing and abstain from fare-increase practices such as surge pricing or added surcharges. The following statement can be attributed to Sally Greenberg, executive director of the DC-based consumer group.

“Many Washington-area consumers are facing a difficult day today, and we urge companies to not further inconvenience consumers who have limited transportation options by charging exorbitant fees. Just like any other day, consumers will need to get to work, to doctors appointments, and to hospital visits, and many will have to scramble to find ways just to get their kids to school. Taxi and ride-sharing services perform a critical public service, especially in a time of crisis like today. We call on them to do the right thing: resist the temptation to take advantage of this unfortunate situation, cap rates, and ensure reasonable accessibility while Metro is out of service due to safety concerns.”

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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: Identity theft complaints rise 47 percent in 2015, FTC report finds – National Consumers League

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March 2, 2016

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

Washington, DC—New data from the Federal Trade Commission highlights the continuing threat of identity theft to millions of consumers. In its Consumer Sentinel Network Data Book, the Commission reported a 47 percent year on year increase in identity theft complaints. As it has been for the preceding 15 years, complaints about identity theft remain among the top scams consumers report to the Commission.

“Nearly half a million complaints sends a clear message: more needs to be done to protect consumers from identity fraud,” said National Consumers League Executive Director Sally Greenberg. “One of the key drivers of the identity theft threat is the continuing flow of consumers’ personal information to fraudsters thanks to the ongoing epidemic of data breaches. The FTC’s new data should be a clanging alarm bell to policymakers in Washington and beyond that an election year is an excuse to take their feet off the gas pedal when it comes to pushing for real data security reform.”

According to Javelin Strategy & Research, nearly 1 in 3 data breach victims will experience identity fraud.  As information on tens of millions of consumers affected by data breaches continues to fall in to the hands of cybercriminals, it is likely that millions more consumers will suffer from identity fraud.

Again this year, the Data Book identified tax and wage-related identity theft as a top source of identity theft complaints to the FTC. With the recent data breach at the Internal Revenue Service, it is very likely this type of fraud will continue to affect consumers this year. While there is no fool-proof way to prevent tax ID theft, NCL has published a step-by-step guide to spotting and recovering from this fraud.

For policymakers, the need for reform should be clear. Ensuring that companies collecting consumers’ data protect it is critical to bringing down rates of identity fraud. However, without leadership from Washington, businesses and other entities that amass vast troves of consumer data will have little incentive to put data security ahead of profits.

Unfortunately, real reforms to improve data security have languished in Congress while hackers and other cyber-crooks have had a field day at consumers’ expense.  That’s why NCL has called on policymakers to adopt NCL’s Congressional Data Security Agenda. The agenda calls for reforms that:

  • Create a national data breach notification standard, while protecting strong state laws like California’s;
  • Require data holders to abide by reasonable data security requirements;
  • Clarify and strengthen the FTC’s data security authority;
  • Promote robust cyber-insurance underwriting standards;
  • Increase federal civil and criminal penalties for malicious hacking; and
  • Strengthen international anti-cybercrime partnerships.

“We know that these nearly 500,000 identity theft complaints are likely just the tip of the iceberg. Far too many identity theft victims don’t report the crime, if they’re even aware of it,” said NCL Vice President of Public Policy, Telecommunications and Fraud John Breyault. “Consumers can take steps to mitigate their risk of identity theft, but they can’t prevent it entirely. That’s why we need leaders in Washington to help make sure that the companies that hold consumers’ data protect it to the greatest extent possible.”

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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.