As federal and state tax fraud prevention efforts ramp up, National Consumers League launches toolkit to help promote free IRS tax preparation services, educate on refund delays new for 2017

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December 7, 2016

Toolkit designed to help Volunteer Income Tax Assistance programs raise awareness among EITC/ACTC recipients about new refund delays, promote free in-person and online tax preparation IRS resources 

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

Washington, DC—The National Consumers League (NCL), the nation’s pioneer consumer and worker advocacy organization, announced today the launch of its IRS Refund Delay Toolkit. The free toolkit will provide the more than 12,000 Volunteer Income Tax Assistance (VITA) programs across the country a comprehensive set of resources to help inform consumers about new changes in tax law, which require the IRS to delay issuing refunds for taxpayers claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) until February 15.

The updated law, which has no exceptions, is designed to give the IRS more time to help detect and prevent fraud. Tax identity fraud is one of the fastest-growing types of fraud—it accounted for almost half of the 491,000 ID theft complaints filed with the Federal Trade Commission last year. NCL is making this toolkit available for free to the more than 12,000 VITA programs operating nationwide to help them protect consumers from identity theft and other tax-related frauds by using free tax preparation services.

The IRS relies on local VITA programs, along with the brand-name online tax preparation software offered through its Free File program, to help qualifying individuals file their federal taxes each year, free of charge. NCL’s IRS Refund Delay Toolkit will provide VITAs with strategies, practical tips, tools, and educational messages that they can use to encourage consumers to rely on these options, thus helping them to avoid schemes which claim to offer quicker refunds, but actually result in high-interest payday loans or costly short-term refund advances, both of which are detrimental to consumers in the long run.

“It has never been more important for consumers to prepare accurate income tax returns,” said John Breyault, NCL’s Vice President of Public Policy, Telecommunications and Fraud. “Our goal is to help consumers reduce their risk of falling victim to tax identity fraud, connect with services that will help them navigate this year’s delay and keep 100 percent of their federal refunds without worrying about hidden fees or unexpected charges.”

The effort is intended to build on the IRS’ success in reducing tax identity fraud rates, which decreased by nearly 50 percent in last year’s filing season. In 2015, 1.2 million confirmed identity theft returns were filed and stopped, totaling $7.2 billion in potential losses to taxpayers. In that same period in 2016, only 787,000 confirmed identity theft returns, totaling $4 billion in fraudulent refunds, made it into the IRS’ system: a decrease of almost 500,000 fraudulent returns stopped before processing.  By guiding consumers to free IRS tax preparation services, NCL believes that the numbers of confirmed tax identity fraud cases in 2017 can continue to decline.

With the support of an unrestricted educational grant from the Intuit Financial Freedom Foundation, NCL has partnered with the CFED Taxpayer Opportunity Network to help distribute the toolkit to its network of VITA programs and volunteer tax preparers. “Helping VITA programs prepare for the potential impact the refund delay may have on EITC filers and VITA volunteers is critical,” said Rebecca Thompson, CFED’s Project Director of the Taxpayer Opportunity Network. “We are excited to work with NCL on a toolkit that helps VITAs communicate with taxpayers, volunteers and community partners about the refund delay.”

Learn more about free tax preparation services like VITAs or Free File and access the toolkit by visiting https://partners.taxtimeallies.org/resources/.

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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 United Airlines to halt introduction of “Basic Economy” fare – National Consumers League

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December 7, 2016

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

Washington, DC — The National Consumers League, the nation’s pioneering consumer and worker advocacy organization, today called on United Airlines to heed the concerns of passenger advocates and policymakers and halt its plans to introduce its “Basic Economy” fare class. Rules for the new fare class, scheduled to take effect on January 1, 2017, will prevent customers from bringing carry-on baggage on flights, requiring more flyers to pay onerous baggage fees. In addition, “Basic Economy” tickets will come with no guarantee that families will be able to sit together nor allow passengers to know ahead of their flights where their seats are located on an aircraft.

The following statement if attributable to John Breyault, National Consumers League vice president of public policy, telecommunications and fraud: 

In a competitive marketplace, airlines would be falling over themselves to offer consumers the most perks at the lowest price. Instead, we have the major U.S. airlines engaging in a race to the bottom to see who can offer the worst service at the highest profit margin. This is the textbook definition of market failure. United’s draconian “Basic Economy” fare cannot be seen as anything other than the beginning of a slippery slope that will pressure the other legacy airlines — who control 80% of domestic flights and are enjoying record profits — to follow suit. Flyers and policymakers should make no mistake that today’s “Basic Economy” fare will almost certainly be service level that many, if not most of us may soon be forced to endure, whether we’re United customers or not. United should heed the concerns of a diverse coalition of flyers rights advocates and senior members of Congress and halt the introduction of its “Basic Economy” fare class.

Earlier this year, NCL joined with a broad coalition of public interest and business travel groups in calling on Congress to pass the FAIR Fees Act; consumer protection legislation that would prohibit airlines from charging cancellation, baggage or other ancillary fees that are “unreasonable or disproportional” to the costs incurred by the air carrier. Given United’s actions, the need for such common-sense rules — which received bipartisan support — appears greater than ever.

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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 statement on the nomination of Dr. Tom Price (R-GA) for Secretary of Health and Human Services – National Consumers League

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December 1, 2016

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

Washington, DC—The National Consumers League (NCL) has issued the following statement, which may be attributed to Executive Director Sally Greenberg:

NCL, the nation’s pioneering consumer organization, founded in 1899, is alarmed to learn of the nomination of Dr. Tom Price (R-GA) to head the Department of Health and Human Services, whose mission is “Improving the health, safety, and well-being of America.” Dr. Price’s stated positions will, to the contrary, erode the nation’s essential health and safety laws and cause particular harm to older Americans and women.

Dr Price is an ideologue with extreme views, including: privatizing Medicare, a critical program that provides high quality health care for older Americans; repealing the Affordable Care Act, which today provides 20 million previously uninsured Americans with health coverage; and denying women access to both contraception AND abortion services, which is an illogical strategy towards a goal of reducing unwanted pregnancies. The State of Colorado is a case in point. Teenagers and poor women were offered free intrauterine devices and implants that prevent pregnancy. The birthrate among teenagers across the state plunged by 40 percent from 2009 to 2013, while their rate of abortions fell by 42 percent, according to the Colorado Department of Public Health and Environment.

NCL has a long history of supporting health insurance for all, health coverage for seniors, and access to reproductive health care for women. They worked diligently over many years to secure the health care gains that women, seniors, and all Americans enjoy today. Dr. Price would roll back the clock on the health and well-being of millions of Americans. We urge the Senate to reject Dr. Price’s nomination. President-Elect Trump should instead nominate someone whose views are in step with the health care needs of the American people.

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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 commends Senate passage of the BOTS Act – National Consumers League

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December 1, 2016

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

Washington, DC—The National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, applauds the Senate’s passage of S. 3183, the Better Online Ticket Sales (BOTS) Act of 2016. The bill, which for the first time prohibits the use of ticket-purchasing software known as “ticket bots,” passed on a bipartisan vote and now heads back to the House of Representatives. NCL believes this bill is an important first step toward the goal of fostering a fairer live event ticketing marketplace.

The following statement is attributable to John Breyault, NCL Vice President of Public Policy, Telecommunications and Fraud:

“The BOTS Act received bipartisan support in both chambers of Congress because it is a common-sense, pro-consumer step forward in the fight to fix a rigged live event ticket marketplace. Ticket bots have for far too long been used by unscrupulous ticket brokers to jump in line ahead of fans who just want to buy tickets to see their favorite bands, Broadway shows and sports teams at an affordable price. This important legislation now heads back to the House of Representatives for what we hope will be a final vote. We urge lawmakers there to quickly take up this consumer-friendly bill and send it on to the President for his signature.”

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About the National Consumers League

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

LifeSmarts consumer literacy program launches first-ever mobile app – National Consumers League

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November 22, 2016

‘LifeSmarts Adventure’ offers fun alternative way to study, compete, win prizes on virtual cross-country tour of national parks

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

Washington, DC—LifeSmarts, a national consumer literacy program and scholarship competition for middle-school and high-school students, today announced the launch of its first mobile app, available for smart phones through Web browsers. The new app, “LifeSmarts Adventure,” offers LifeSmarts participants a unique, fun approach to study content, compete, and win prizes. Visit LifeSmartsAdventure.org to view.

The first LifeSmarts Adventure is a virtual, cross-country road trip touring five U.S. national parks. The second version of LifeSmarts Adventure, with a new theme and content focus, will launch in the new year. To play, students answer a series of LifeSmarts curriculum questions at each stop. The app tracks progress and leaderboards show top-scoring travelers. The top three participants earn trophies that stay with them on future LifeSmarts Adventures, with new episodes released periodically throughout the LifeSmarts program year (which runs on a traditional academic calendar). Students who earn trophies will have the chance to win prizes.

LifeSmarts Adventure is a web-based app that is best rendered on a mobile device using a browser with an Internet connection, but the app may also be viewed using a computer at lifesmartsadventure.org. The app was made possible by a new partnership with LifeLock, Inc., (NYSE: LOCK), an industry leader in proactive identity theft protection.

“The app is an exciting extension of LifeSmarts,” said LifeSmarts Program Director Lisa Hertzberg. “Designed as a practice tool for LifeSmarts students to quiz themselves and see how they measure up against others across the country, it is also a fun and accessible way for all consumers to test their marketplace savvy.

The LifeSmarts Adventure app features:

  • Focus on LifeSmarts content: The first episode of LifeSmarts Adventure focuses entirely on personal finance topics, such as money management and investing
  • The ability for students to practice on their own mobile device
  • A leaderboard that students can follow to see how they score compared to their peers across the country
  • Opportunities for recognition, virtual completion badges and trophies, and prizes such as gift cards
  • Easy-to-use, attractive interface
  • Fun theme of a National Parks road trip

Beta testers from the LifeSmarts Student Advisory Board enjoyed their sneak peek of LifeSmarts Adventure, saying they cannot wait for the app to launch and be available to all students. In particular, they liked the variety of questions, the content covered, the fun graphics, and the leaderboards. Visit LifeSmartsAdventure.org to get the app.

Sample questions from LifeSmarts Adventure include:

A credit card is an example of _____ credit, a mortgage loan is not.

  1. Revolving (correct)
  2. Closed-end
  3. Single-payment
  4. Installment

Financial planners help people with more than just investing.

  1. True (correct)
  2. False

A _____ is a diversified investment, a single stock is not.

  1. Bond
  2. Certificate of Deposit
  3. Mutual fund (correct)
  4. Checking account

The FDIC protects consumers if:

  1. The stock market crashes
  2. Banks fail (correct)
  3. Treasury bonds bottom out
  4. Inflation hits double digits

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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. LifeSmarts focuses on five main content areas: consumer rights and responsibilities, personal finance, technology, health and safety, and the environment. Students are quizzed on their knowledge of these subject areas during online competition. Top-performing teams then advance to statewide competitions, and state champion teams advance to the national championship held each year in a different American city. The 2017 National LifeSmarts Championship will take place April 21-24, in Pittsburgh, PA. Winning teams receive scholarships and other prizes.

LifeSmarts offers American students the chance to get a head start on the responsibilities of adulthood before being thrown in to the marketplace through educational curriculum and scholarship / prize opportunities. Pre- and post-testing on related consumer issues show LifeSmarts participants, on average, see their scores increase from a C to a B+/A-. Last year, students answered more than 3 million competition questions about credit reports, recycling, nutrition, social media, state lemon laws, and everything in between. To learn more, visit www.LifeSmarts.org.

NCL mourns the passing of auto safety icon Clarence Ditlow – National Consumers League

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November 11, 2016

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

The National Consumers League (NCL) mourns the passing of a great auto safety advocate, Clarence Ditlow. Clarence had served as the founder and Executive Director of the Center for Auto Safety since 1976. He died at the age of 72 after a long struggle with colon cancer. This statement is attributed to NCL’s Executive Director Sally Greenberg.

“Clarence Ditlow’s name is synonymous with auto safety. Anyone in the industry who has spent a day working in this area knows Clarence and the Center for Auto Safety. In my years at Consumers Union (CU), I had many occasions to work with Clarence, who served on CU’s Board of Directors, and see him in action. His research and advocacy exposing auto defects–including ignition switches, roof crush, and sudden acceleration–were invaluable and helped to vastly improve the safety and reliability of today’s vehicles. Consumers owe him a debt of gratitude for continuously keeping industry’s feet to the fire and demanding that automakers deliver far safer and more fuel efficient vehicles. The remarkable progress we’ve seen in reduced deaths and injuries since the Center was founded is a testament to Clarence’s work. Since 1970, the death rate on America’s roads has dropped dramatically, from 5.2 per 100 million vehicle miles traveled in 1969 to 1.1 per 100 million vehicle miles in 2010.”

The Center for Auto Safety helped to expose faulty airbag inflators, defective tires, dangerously designed ignition switches, defective engine mounts, roofs on vehicles that collapsed on impact and crushed occupants, exploding gas tanks and child seats with defective latches, and many other auto safety issues.  

Saluting his work, Sens. Ed Markey (D-MA) and Richard Blumenthal (D-VCT) said in a statement in the Congressional Record of Sept. 29, 2016:

“Through a lifetime of work improving automotive and safety laws, Mr. Ditlow has helped save thousands of lives and prevented many more injuries than would otherwise have occurred. A tireless champion for consumers, his work has resulted in better government oversight of automakers, the installation of key safety features, and the exposure of safety defects in millions of cars, SUVs and other trucks….Mr. Ditlow’s discovery of numerous automotive defects, combined with his persistent pressure on safety agencies and automakers alike, led to the removal of many unsafe vehicles from the road.”

The National Consumers League mourns the loss of Clarence Ditlow, fellow safety advocate and crusader, who did so much to advance the cause of safer and more fuel efficient automotive vehicles. 

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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 pays tribute to Esther Shapiro, longtime board member and consumer crusader (1918-2016) – National Consumers League

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October 21, 2016

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

Washington, DC—The staff and Board of Directors of the National Consumers League (NCL) mourn the passing of Esther Shapiro, career consumer advocate, longtime National Consumers League Board Member, and head of Detroit’s Consumer Affairs Department for 24 years, appointed by Mayor Coleman Young in 1974. Shapiro died last Friday, October 14, at her home in Detroit’s Lafayette Park area. She was 98.

Shapiro was born in 1918 in Chicago, an only child of Jewish immigrants. According to her grandson Nick, in 1939, at age 20, she moved to New York City and got an office job at a garment factory, “very literally a sweatshop … Conditions were so bad that the girls actually went on strike.”

“Management came down on them hard, so they had a meeting and the people had pretty much decided on going back when the union organizer jumped on the table and said, ‘Like hell you’re going back.’ And that very dashing young man was her husband-to-be, Harold Shapiro,” said Nick Shapiro.

During World War II, Esther and Harold lived in Tacoma, WA. After the war, the couple moved to Detroit so that Harold Shapiro could work as a union organizer. The Shapiros became early volunteers in the civil rights movement, socializing often with Coleman Young, talking politics until the wee hours, and working hard on Young’s campaign for Mayor.

Shapiro had been a volunteer coordinator for Detroit’s board of education, but heard that the Michigan Credit Union League had a post for a consumer advocate for statewide credit unions.

“She impressed them with her ideas about educating consumers, about budgeting, and the law. So she taught herself on the job,” said her daughter, Andrea Shapiro. This gave her the skills for becoming the city’s consumer crusader

Shapiro became a consumer champion just as the movement was peaking in the 1970s. President Kennedy issued a manifesto on consumer rights in 1962, and three years later Ralph Nader’s iconic expose on the auto industry, Unsafe At Any Speed, was published. Shapiro became close with Esther Peterson, who served as consumer advisor to Presidents Kennedy and Johnson and headed the White House Office of Consumer Affairs under President Jimmy Carter. Shapiro joined the NCL Board of Directors in the 1980’s and served alongside Peterson.

Shapiro’s voice for consumers became known throughout the region because of her regular appearances on Detroit radio stations and her consumer columns in the Detroit Free Press, which ran from 1986 to 1995. She was fond of the expression, “The big print giveth and the small print taketh away.”

Shapiro headed Detroit’s consumer office well past Young’s departure, finally leaving at age 80. NCL celebrated with her and attended her induction into the Michigan Women’s Hall of Fame in October 2015. Throughout her life, Shapiro supported NCL and members of the staff, attending many LifeSmarts teen financial literacy and consumer education competitions in her years on the Board. In 1997, NCL honored Esther Shapiro with the Florence Kelley Consumer Leadership Award.

Reflecting on the evolution of consumer advocacy, Shapiro noted that consumer protection had largely taken shape of warnings in fine print on product labeling, and most of her consumer columns ended with Caveat Emptor – let the buyer beware and not expect government’s protection. In an interview two years ago, according to the Detroit Free Press, Shapiro said, “We tried — we tried very hard, and I think we did some good.”

Shapiro was predeceased by her husband and son, Mark. She is survived by her daughter, four grandchildren and three great-grandchildren. Esther also felt a great sense of pride that her granddaughter Evelyn Shapiro, works as a carpenter and has a union leadership role. 

“Esther was a force early on that propelled the consumer movement … A female force,” said NCL Board Member Jodie Bernstein.

“The National Consumers League is grateful for the many contributions of this pioneering consumer advocate and for her service to the NCL Board over several decades,” said NCL Executive Director Sally Greenberg. “She and I became friends and she always offered me wise and valued counsel since the day I arrived at NCL. It was an honor to work with a consumer champion and pioneer. We at NCL will miss her.”

A memorial service for Esther Shapiro will be held at 2 p.m. Nov. 13 in the large meeting room of 1300 Lafayette, the high-rise apartment building just down the block from Shapiro’s condominium in Detroit’s Lafayette Park development.

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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.

Greenberg comments on Biosimilar User Fee Act (BsUFA II) – National Consumers League

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October 20, 2016

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

Washington, DC–The National Consumers League (NCL) appreciates the opportunity to deliver these comments on the reauthorization of the Biosimilar User Fee Act for fiscal years 2018 through 2022 (BsUFA II). The National Consumers League has long been concerned with ensuring the safety of foods and drugs. Among NCL’s top priorities are ensuring the safety, effectiveness, and appropriate use of both prescription and over-the-counter (OTC) drugs, and medication adherence, which we have helped to advance through our Script Your Future Campaign.

The National Consumers League is a strong supporter of biosimilars, since they help to provide less expensive biological products for patients with serious diseases, such as rheumatoid arthritis, multiple sclerosis, and cancer. Since 2012, BsUFA has helped to provide FDA with the resources the agency needs to enhance the science-based review of new biosimilars. User fees are integral to the FDA’s ability to review drugs and biologics in a timely manner, since the agency is woefully underfunded. To make matters worse, due to a .5% Across-the-Board (ATB) cut included in the Continuing Resolution, the FDA will experience a $2.5 million cut in funding over the 10-week period until December 9. It is clear that user fees are necessary for the FDA to carry out its drug and biologic review functions.      

Click here to read the full statement.

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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.

America’s Health Insurance Plans and National Consumers League Launch New Education Effort to Help Consumers Better Understand their Health Insurance – National Consumers League

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October 18, 2016

MyHealthPlan.guide informs, educates, and engages consumers on health insurance options

Contact: David Merritt, America’s Health Insurance Plans, press@ahip.org, 202-778-3200
Cindy Hoang, National Consumers League, cindyh@nclnet.org, (202) 207-2832 

Washington, DC – America’s Health Insurance Plans (AHIP) has partnered with the National Consumers League (NCL) to launch MyHealthPlan.guide, a comprehensive online guide that informs, educates, and engages consumers to better understand how health insurance works.

Health care can be complex and confusing. A recent state analysis found that 42 percent of consumers who bought their own insurance said they lacked a clear understanding of their health insurance plans. Other studies show that consumers are unaware of key factors they should consider before selecting a plan. And many consumers are unaware of the critical benefits their plan covers, including free preventive services.

MyHealthPlan.guide can help solve these challenges. From open season for employer-sponsored coverage to open enrollment in the Marketplaces and Medicare, this will be an important and timely resource for consumers who are buying insurance for the first time or who have questions about their existing plan. It also complements health plan sites that offer more information about specific products, plans, and benefits.

“Health insurance can be frustrating when you don’t have the right information to make the best decision for yourself or your family. That’s why we want to help inform, educate, and engage consumers to make sure they have the information and tools at their fingertips to make the best decisions about their healthcare,” said AHIP CEO Marilyn Tavenner. 

The new online, interactive resource offers three portals for consumers — “Choosing a Health Plan,” “Living a Healthy Lifestyle” and “Using my Health Plan.” Each portal offers tailored, in-depth answers, information, and resources for their specific questions – but presented in a simple, straight-forward way. Consumers can also search MyHealthPlan.guide using keywords, look up terms using the site’s glossary and access a curated list of additional recommended resources and most popular searches.

The growing engagement of consumers in healthcare decision-making is a key part of the movement toward value-based healthcare delivery models and the industry’s ongoing investment in consumer-friendly online resources, personal health devices and smartphone applications.

“Consumers today are more engaged in healthcare decision-making than ever before—a trend that is predicted to grow for the foreseeable future. MyHealthPlan.guide aims to provide consumers with easy-to-access, straightforward information to determine the health insurance coverage that is right for them and how to best use it to meet their personal health needs,” said NCL Executive Director Sally Greenberg. 

Early evidence has shown that such increased engagement is positive—consumers will make informed healthcare decisions when they are provided the right information in the right format. However, despite the growing opportunity for engagement, it can often be difficult for consumers to find all of the information they need in one place, leaving many confused and overwhelmed rather than empowered. MyHealthPlan.guide is an important step by health plans, working in partnership with consumer advocates, to begin to bridge the gap in information. AHIP and NCL will use feedback on the site’s user experience to update and expand on the site over time.

Access MyHealthPlan.guide and learn more about AHIP and NCL’s efforts to inform, educate, and engage consumers by going to https://myhealthplan.guide/

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About AHIP

America’s Health Insurance Plans (AHIP) is the national trade association representing the health insurance community. AHIP’s members provide health and supplemental benefits through employer-sponsored coverage, the individual insurance market, and public programs such as Medicare and Medicaid. AHIP advocates for solutions that expand access to affordable health care coverage to all Americans through a competitive marketplace that fosters choice, quality, and innovation.

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 calls on FCC to examine high cost of international mobile roaming – National Consumers League

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October 12, 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, today called on the Federal Communications Commission (FCC) to examine the role that international mobile roaming (IMR) services play in wireless “bill shock.” An NCL analysis of the market for IMR services found that a significant portion of the more than 73 million Americans who travel abroad annually may be at risk of incurring higher than expected charges on their wireless phone bills, a phenomenon commonly known as “bill shock.”

In 2011, at the urging of the FCC and consumer groups—including NCL—the wireless industry began providing notifications to travelers of international roaming charges that they may incur while using their cell phones overseas. Given the explosive growth of data-intensive smartphones since 2011, however, NCL believes that notifications alone may not be sufficient to prevent IMR-related bill shock. In comments filed with the FCC, NCL called on the Commission to gather new data on the impact of IMR-related bill shock and consider possible regulatory or voluntary industry solutions.

“No one wants a sky-high cell phone bill as a souvenir of their trip,” said John Breyault, NCL vice president of public policy, telecommunications and fraud. “Unfortunately, due to the high cost of roaming, even consumers who are careful and try to limit their mobile data use can come home to a surprise bill in their mailbox.”

NCL’s analysis of the major American wireless carriers’ IMR service offerings found that roaming package pricing is extremely expensive when compared with domestic service rates. In addition, the carriers’ roaming packages often offer significantly smaller data allotments, slower speeds or both. Finally, while there are cheaper alternatives to buying roaming packages—such as buying a local SIM card and prepaid plan in the destination country—NCL found no instances where U.S. carriers attempted to educate their subscribers about those alternatives.

“We recognize that U.S. carriers are often at the mercy of foreign carriers who can and do set wholesale IMR rates far in excess of cost,” said Breyault. “However, as regulators around the world have recognized, this situation represents a market failure which the FCC would be wise to examine as it seeks to protect the millions of American consumers who take their smartphones with them while traveling abroad.”

Since the FCC last examined bill shock, international regulators have taken action to address the high cost of IMR services. The European Union (EU) will eliminate intra-EU roaming fees by 2017 and the Gulf Cooperation Council countries have agreed to reduce IMR data rates by two-thirds by 2020. The Asia Pacific Economic Council and Organization for Economic Co-operation and Development (OECD) have also urged member countries to take action to address high IMR rates and educate consumers often cheaper alternatives to IMR services.

“Consumers in the U.S. should not play second fiddle to consumers in Europe or the Gulf countries when it comes to protections from IMR-related bill shock,” said Sally Greenberg, NCL’s executive director. “Consumers should not be put at risk of incurring outrageous cell phone charges just because they took their phone with them while traveling abroad.”

Click here to read NCL’s full FCC filing.

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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.