National Consumers League statement on FCC actions promoting media diversity and competition – National Consumers League

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March 31, 2014

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

Washington, DC – The National Consumers League today applauded the Federal Communications Commission (FCC) for its vote to attribute the Commission’s media ownership rules to Joint Sales Agreements between television stations. NCL also applauded the Commission’s unanimous vote to prohibit certain joint retransmission consent negotiations by broadcasters.

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

“The promotion of diversity, competition and localism in the media is central to the FCC’s mission. It is therefore imperative that agreements allowing broadcasters to avoid the Commission’s media ownership limits be prohibited, absent a compelling public interest reason that they be waived. The Commission’s action today rightfully supports consumers’ access to a wide variety of voices on the nation’s public airwaves.”

“As NCL has stated in the past, consumers should not be pawns in the seemingly never-ending retransmission fights between billion-dollar cable companies and media conglomerates. The FCC’s action to prohibit certain joint retransmission consent negotiations by broadcasters will help prod all parties at the table to focus on the best interests of their ultimate customers – bill-paying consumers.”

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About the National Consumers League 

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

Fraud alert: New malware scams making April fools out of victims – National Consumers League

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March 27, 2014

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

Washington, DC—Anti-fraud advocates at the National Consumers League are warning consumers this month about a scam being tracked by the Federal Trade Commission, the FBI, and other federal agencies: Cryptolocker malware. Crooks are targeting consumers and businesses with sophisticated technology that, spread through email and difficult-to-detect downloads, encrypts the contents of a hard drive, making it impossible to use one’s files. According to the FTC, after the malware is installed by an unsuspecting computer user, the Cryptolocker crooks send a ransom note demanding hundreds of dollars in payment via Bitcoin or another anonymous payment method before they will unlock the files. Once a consumer pays the ransom, there’s no guarantee that the fraudster will not simply ask for more money.

“Even if you pay the ransom, are you really willing to bet that the criminals running this scam will honor their promises and unlock your computer files?” said John Breyault, director of NCL’s Fraud.org campaign.

Ransomware has been around for a decade, but the frequency and severity of CryptoLocker scams appears to be on the rise. According to Dell SecureWorks, CryptoLocker raked in $5 million dollars in the last four months of 2013 alone.

A study by the University of Kent found that 2 out of every 5 CryptoLocker victims pay the ransom. This malware is especially sneaky, as it can be disguised as JPEG images, as PDF files, as Microsoft Office files, and other innocuous, familiar files. There are even reports that Facebook could be one of the likeliest places to get a CryptoLocker malware. Businesses have also been reported to be victimized by these scams.

Tips for avoiding Cryptolocker and other malware scams

  1. Back up your files frequently on a separate device (which does not remain connected to your main computer) or use free cloud storage systems that are available online.
  2. Be on the lookout for suspicious looking phishing emails and links. Do not click on links or attachments from untrusted senders.
  3. Consider using ad-filtering applications that are free for your web browser to avoid clicking on suspicious links from ad pop-ups either by accident or by compulsion.

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About the National Consumers League 

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

Advocates call for FTC action to address data insecurity – National Consumers League

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March 25, 2014

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

Washington, DC – A coalition of consumer and privacy organizations today called on the Federal Trade Commission (FTC) to convene a forum examining the ongoing impact of data insecurity on America’s consumers. In a letter to FTC Chairwoman Edith Ramirez, the groups cited the increased consumer awareness of the threat of data breaches and other cybersecurity risks in the wake of data thefts at Target, Michaels, Snapchat, and other businesses.

“The Target breach should serve as a wake-up call that more must be done to address the looming data insecurity disaster,” noted the groups. “This is no longer an issue that can be limited to discussion among cybersecurity experts. It is now a threat to the entire economy.”

Statistics cited by the organizations included:

  • Since 2005, there have been more than 4,000 disclosed data breaches, a rate of more than one per day for nine straight years, according to the Privacy Rights Clearinghouse.
  • According to Javelin Strategy & Research, 13.1 million consumers suffered identity fraud in 2013, the second highest level on record. Total annual identity fraud losses were $18 billion.
  • Since 2004, more than 1.1 billion consumer records have been exposed to unauthorized parties, according to Verizon.

Past FTC workshops have examined pressing data security challenges surrounding the “Internet of Things,” mobile devices, and tax-related identity theft, among other issues. These forums provide an important opportunity for policymakers to convene experts and discuss ongoing consumer protection issues facing the Commission.

Organizations listed on the letter included Consumer Action, Consumer Federation of America, National Consumers League (NCL) and Privacy Rights Clearinghouse.

“The threat to consumers and the economy from data breaches is very real and growing,” said John Breyault, NCL Vice President of Public Policy, Telecommunications and Fraud. “Given the vast amounts of personal information that consumers are being asked to provide, it is imperative that the data be better protected from hackers and other malicious actors. As the nation’s leading consumer protection agency, the FTC is the right organization to lead a national conversation on this issue.”

Read the groups’ letter here.

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About the National Consumers League 

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

National Consumers League statement on Murthy nomination for Surgeon General – National Consumers League

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March 19, 2014

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

Washington, DC – The following statement is attributable to Sally Greenberg, Executive Director of the National Consumers League.

As the nation’s pioneering consumer organization and one concerned throughout our 115-year history about the health and well-being of Americans, the National Consumers League (NCL) finds it troubling that the current nominee for Surgeon General, Dr. Vivek Murthy, is facing criticism for supporting basic measures to improve our nation’s health. Murthy, a great public health champion, is a strong advocate for the Affordable Care Act and, like the majority of Americans, for including reasonable gun policies as part of our nation’s health agenda. If confirmed, he plans to make combating America’s obesity epidemic a top priority. These issues are exactly what a Surgeon General should include in his or her agenda. 

Because of Murthy’s mentioning guns as a health matter, some members of Congress have indicated they would not vote to confirm him. We think this is unfortunate and shortsighted . Gun violence does affect the health of Americans:  on average, eight young people under the age of 20 are killed by guns every day. American children die by guns 11 times as often as children in other high-income countries. On average, 32 Americans are murdered with guns every day, and 140 seek emergency room treatment for gun assaults.

NCL has enjoyed strong relationships with past U.S. Surgeons General. In 2000, NCL honored Surgeon General Dr. David Satcher with its highest honor, the Trumpeter Award. Most recently, the 18th Surgeon General Regina Benjamin, also a Trumpeter Award recipient, worked with the League to support and promote our medication adherence campaign, Script Your Future.

President Obama’s Surgeon General nominee is widely respected as a physician and a public health expert. He has degrees from Harvard and Yale, and is an eminently qualified physician. We think he is moderate and thoughtful in his positions, and brings impeccable credentials to the post.  The National Consumers League calls upon the Senate to confirm Vivek Murthy to the post of Surgeon General of the United States.

 

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About the National Consumers League 

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

NCL commends President Obama for regs on overtime and updating other labor laws – National Consumers League

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March 14, 2014

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

Washington, DC – The National Consumers League (NCL) applauds President Obama for directing the U.S. Department of Labor (DOL) to revise and update outdated, Depression-era overtime laws and tighten the loopholes in the Fair Labor Standards Act (FLSA). NCL, the nation’s pioneering worker and consumer advocacy organization, commends the President for using his executive power to call for this positive step forward for millions of American workers.

“President Obama’s directive is a giant step for the millions of Americans who work full time and yet still struggle to make ends meet,” said Sally Greenberg, Executive Director of NCL. “With Congress conflicted on these issues, an executive order will require businesses to pay workers what they earn for any additional hours they work.”

Franklin Delano Roosevelt’s Secretary of Labor Frances Perkins, who had previously served as NCL secretary, crafted the FLSA, which was signed into law in 1938. It was created to give Americans basic workplace rights including a federal minimum wage, overtime protections, bans against child labor, and record-keeping mandates to keep businesses honest about the number of hours employees worked.

When originally constructed, the overtime statute in the FLSA included a pay threshold and three job classification exemptions: executive, professional, and administrative. Today, many employers avoid paying their employees overtime by exploiting the exemptions in the FLSA. By manipulating job titles and descriptions, employers avoid paying many employees who work over a 40-hour workweek one and a half times the normal hourly rate for the extra hours.

Millions of other workers are exempt from overtime rules if they make more than $455 a week or $23,660 a year, which is still below the poverty line for a family of four.

“For decades, Americans’ wages have stagnated, even as worker productivity has soared,” said Michell McIntyre, NCL’s Outreach Director, Labor and Worker Rights. “The changes in the exemptions to overtime pay could make all the difference for families struggling to make ends meet. This is an important step. It is time to give Americans a raise.”

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

National Consumers League Statement on FTC Investigation of Herbalife – National Consumers League

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March 12, 2014

Contact: Sally Greenberg, Executive Director, National Consumers League, (202) 631-2301, sallyg@nclnet.org or John Breyault, Vice President of Public Policy, Telecommunications and Fraud, (202) 835-3323,  johnb@nclnet.org

Washington, DC – The National Consumers League, the nation’s pioneering consumer and worker advocacy organization, today welcomed the news that the Federal Trade Commission has launched an investigation of Herbalife, one year to the day after NCL originally called for such action. The following statement is attributable to NCL Executive Director Sally Greenberg:

“We applaud the Federal Trade Commission for opening this important investigation. In early 2013, NCL met with representatives of the Direct Selling Association, Herbalife and Pershing Square Capital Management to examine questions about the legality of Herbalife’s business model and whether consumers recruited to sell products for the company were victims of a pyramid scheme. Unfortunately, these meetings did not alleviate our concerns. Subsequently, NCL asked FTC Chairwoman Edith Ramirez  in a letter dated March 12, 2013 to open an investigation to determine whether Herbalife is a legitimate multi-level marketing company, as the company claims, or an illegal pyramid scheme.” 

“The beneficiaries of today’s action will be the millions of consumers who purchase and try to earn money selling Herbalife’s products. This is an important step and we commend the FTC for its action.”

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

As Saudi Arabia Ratifies Child Labor Convention 138, the Child Labor Coalition Urges the U.S. to Ratify Now – National Consumers League

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February 28, 2014

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

Washington, DC–The 31-member Child Labor Coalition (CLC) welcomes news that Saudi Arabia has become the 167th country to ratify Convention 138, setting a minimum age for work at 15, and it urges the US to ratify the convention as well. Drafted by the members of the International Labour Organization in 1973, Convention 138 asks nations to work to eliminate exploitive child labor and establish minimum ages at which children are allowed to work. Most countries have set those minimums at 15 or 16, with about one-third of nations adopting 14 as the age limit on a temporary basis. Convention 138 allows light work that is not harmful for children who are 13-15. In the US, however, children are allowed to perform strenuous labor for wages in agriculture beginning at the age of 12.

“The United States is dedicated to eliminating exploitive child labor around the world,” noted Sally Greenberg, co-chair of the Child Labor Coalition and executive director of the National Consumers League, which played a crucial role in eliminating many forms of child labor in the US in the 19th and early 20th century. “With 167 countries pledging minimum age restrictions for work at 14, 15, or 16, we need to join the international community and do the same. If Saudi Arabia can ratify protections for child workers, certainly the US should also do so. We must also adopt Convention 138’s prohibitions of harmful and dangerous work by those under 18.” 

“Before the US can ratify Convention 138, it must close the loopholes in US child labor law that allow children to work for wages in agriculture at age 12,” noted Norma Flores Lopez, director of the Children in the Fields Campaign for the Association of Farmworker Opportunity Programs and the chair of the CLC’s Domestic Issues Committee. “Farm work is particularly dangerous—with mortality rates four times that of other industries—yet we allow children who are 12 to perform back-breaking labor in the fields for unlimited hours when school is not in session.”

“As a former child migrant farmworker, I know the dangers children in the fields are exposed to—powerful machinery, razor-sharp tools, and pesticide poisoning—to name just a few,” added Flores Lopez. “Child labor has a huge impact on the farmworker community, creating rampant generational poverty as the rigors of the work, migration, and endless school disruptions cause children to tire and drop out of school. With millions of unemployed adults in America, why must we rely on young children to harvest our fruits and vegetables?”

“By continuing to keep children working in the fields, the US causes adult wages in agriculture to remain artificially low, making it nearly impossible for these families to invest in their children and break the cycle of poverty,” noted Judy Gearhart, executive director of the International Labor Rights Forum and chair of the CLC’s International Issues Committee. “The US should take immediate steps to ratify international treaties like Convention 138 and the Convention on the Rights of the Children—both embraced nearly unanimously by United Nations members—that work to increase protections for children.”

“The elimination of child labor has been a goal of educators for many years,” added Dr. Lorretta Johnson, secretary-treasurer of the American Federation of Teachers and a co-chair of the CLC.  “Tackling the issue of child labor has gone hand-in-hand with our efforts to ensure that quality education is provided as a right to all children. Here and abroad, the elimination of child labor goes beyond education, and should also include policy changes that address societal poverty and inequality, as well the legal framework that ILO Convention 138 helps provide.”

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About the Child Labor Coalition

The Child Labor Coalition represents consumers, labor unions, educators, human rights and labor rights groups, child advocacy groups, and religious and women’s 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. [The CLC’s site and membership list can be found at www.stopchildlabor.org]

Consumer group: Moderation key during National Nutrition Month – National Consumers League

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February 27, 2014

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

Washington, DC–March marks the beginning of National Nutrition Month, and the National Consumers League (NCL), the nation’s pioneering consumer advocacy organization, is reminding consumers of the importance of developing healthy dietary and physical activity practices this month and year-round.

Obesity continues to plague Americans: more than a third are obese, according to the Centers for Disease Control and Prevention (CDC). An additional third of American adults are overweight. There was some good news this week from the CDC, however. Among kids ages 2 to 5 the obesity rate dropped from 14% in 2003-2004 to just over 8% in 2011-2012,. That represents a drop of 43%, CDC said.

The overweight and obese are at risk for heart disease, certain cancers, diabetes, and other life-threatening illnesses. National Nutrition Month is sponsored by the Academy of Nutrition and Dietetics. During March advocates and educators will focus on the importance of making informed choices and developing sound eating and physical activity habits. In observance of the month, NCL offers consumers five tips for developing a healthier diet:

  1. Increase intake of whole grains, making half of all grains consumed whole grains.
  2. Reduce consumption of soda and juice drinks containing high fructose corn syrup and other sweeteners.
  3. Monitor and minimize calorie intake from alcoholic beverages.  
  4. Be aware of large portion sizes, especially when dining out.
  5. Prepare more meals at home, where you have more control over the ingredients, including salt, sugar, and fat. 

Cutting down on some of the most calorie-dense foods that are easy to consume in large quantities, such as sodas, chips, cakes, and cookies, is a big step in the right direction.  NCL has prepared a consumer-friendly factsheet of the major sources of calories in the American diet to help identify which foods consumers tend to overindulge in.  Surprisingly, some foods, like candy (slightly more than 2% of calories), are not on the list.  Others, like soda, pizza, cakes, and cookies figure high on the list.

Most important to maintaining a healthy diet is eating mostly low-calorie, low fat, and nutrient dense foods.  The U.S. Department of Agriculture recommends, through its “My Plate” campaign, that fruits and vegetables comprise half of each meal. Health advocates also recommend that Americans get into the habit of checking nutrition labels, which will be updated under new federal regulations for the first time in 20 years.  Almost every packaged food item includes the Nutrition Facts Labels; most importantly, these labels provide calories per serving and help consumers monitor and control intake for a 2,000 calorie a day diet. The new Nutrition Facts Label will reflect more accurate caloric information – a bag of corn chips, which most people eat in one sitting, will have a caloric listing that reflects calories in the whole bag, not 2 ½ servings, for example, as we see so often today. The new label will include larger font and a listing for added sugars, which is useful information.  

Many restaurants today post calories on their menus, which is also helpful in keeping caloric intake under 2,000 a day.

We need to be realistic in helping Americans reach and maintain healthy weights. “Very restrictive diets may be impossible to maintain in the long-term,” said Sally Greenberg NCL Executive Director. “Indulging in a sweet treat in moderation, particularly dark chocolate, which has in recent years been revealed to offer health benefits, may make following a healthy diet and the long-term benefits of weight loss more achievable.” The American Dietetic Association echoes this idea. For those with a sweet tooth, Kerry Neville, MS, RD a registered dietitian and American Dietetic Association spokeswoman, recommends small indulgences, like a small candy bar, as an aid in maintaining a healthy diet and curbing cravings.

Physical activity is also critical for maintaining a healthy weight. The Dietary Guidelines recommend that adults do at least 150 minutes, or two and a half hours, of moderate intensity physical activity, such as walking at a brisk clip or riding a bike, each week.

“Not everyone can or will commit that kind of time to getting physical exercise, so it’s important to know that even a little exercise is better than none,” said Greenberg. “Once or twice a week at the gym or a brisk walk during the week can yield very beneficial rewards.”

For more Nutrition Month tips, visit nclnet.org or the factsheet.

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

Hawaii ticketing bill an opportunity to create consumer-friendly ticket marketplace – National Consumers League

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February 12, 2014

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

Washington, DC – The National Consumers League, the nation’s pioneering consumer advocacy organization has submitted a letter to the Committee on Consumer Protection and Commerce of the Hawaii House of Representatives regarding HB 2012, a bill that addresses the difficulty consumers have in accessing tickets to concerts and sporting events at a fair price.

“Consumers are right to be outraged when they try to buy tickets and find that they have sold out in seconds, only to quickly reappear on the secondary market at inflated prices. NCL applauds the committee for examining this complex issue,” said NCL Vice President of Public Policy on Telecommunications and Fraud John Breyault. “However long experience has taught that there are no silver bullets that will fix the problem of fair access to tickets in the long term. For instance, price caps on resold tickets may have the unintended consequence of driving consumers searching for tickets to back alley scalpers and online classified websites like Craigslist, which provide no protections whatsoever. Instead, a pro-consumer solution to this issue requires a multi-pronged approach. NCL supports a number of reforms that would help level the playing field when it comes to ticket-buying.”

First, according to the consumer group, the use of “bot” software by unscrupulous ticket brokers denies consumer fair access to tickets is a serious problem. By jumping to the front of the digital line, this software enables brokers to scoop up the most desirable tickets quickly, often before the average consumer has a chance to buy. HB 2012 rightfully outlaws the use of “bot” software, which is already illegal in more than a dozen states. NCL is also calling for greater cooperation between primary ticketers like Ticketmaster, ticket brokers, ticket exchanges like StubHub and state attorneys general to put an end to the use of ticket “bots.”

In its letter, NCL also argued that a well-functioning ticket market can only exist if consumers have the information they need to make an informed decision. Unfortunately, the game is often rigged by promoters, artists, broker and primary ticketers through the rampant and little-discussed use of “holdbacks.” In far too many shows, only a small fraction of tickets are ever put on sale to the general public. This leads consumers to believe that a quick sellout is due to high demand, skewing the fair market price on the resale market. This is why NCL supports transparency laws that would require sellers to disclose how many tickets will be made available for a given event. Armed with this information, consumers can make an informed decision whether to buy tickets the usual way, or obtain tickets through pre-sales, credit card rewards programs, or other means.

NCL supports consumer protections such as requiring brokers to register with the state, provide toll-free customer service lines and offer refunds if tickets purchased on the resale market are fraudulent. These are common-sense protections that would address many of the problems consumers encounter when they are forced to buy from street-level scalpers or deceptive online resale Web sites.

Finally, NCL opposes the use of restrictive technologies like “paperless” tickets. This solution to the scalping problem is worse than the disease, since it prevents consumers from buying, selling, donating or giving away tickets as they wish. In addition, the use of this technology may lock consumers into one seller’s resale service, which is likely to involve higher fees and more restrictions than consumers typically face today.

“We applaud the Hawaii State Legislature for tackling the issue of creating a fair, transparent and competitive ticket-buying marketplace,” said Breyault. “Consumers in the Aloha State are well-served by this debate.”

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

NCL commends President for federal contractor minimum wage increase – National Consumers League

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February 12, 2014

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

Washington, DC—The National Consumers League applauds President Obama’s leadership in signing an executive order to raise the minimum wage for employees of federal contractors to $10.10 an hour. The National Consumers League (NCL), the nation’s pioneering worker and consumer advocacy organization, commends the President for using executive powers to take a positive step for this group of minimum wage workers.

“As we all seek ways to close the growing wealth disparities in the United States, the President’s action is a big step up for thousands of workers struggling to make ends meet on the paltry federal minimum wage of $7.25 an hour,” said Sally Greenberg, Executive Director of NCL. “We join so many allies, including Change To Win and the Good Jobs Nation, who have spent months demonstrating outside federal buildings calling on the President to use the power of the pen to help lift these low income workers out of poverty.”

The Executive Order mirrors the President’s State of the Union proposal for raising the minimum wage to $10.10 an hour. Similar legislation has been introduced in the U.S. Senate by Sen. Tom Harkin (D-IA), and in the U.S. House of Representatives by Rep. George Miller (D-CA); both bills are stalled in Congress.. 

NCL has joined worker advocacy groups in supporting one-day strikes at federally operated buildings including Union Station and the Smithsonian Air & Space Museum, to ask President Obama to do what is right by those who work in federal facilities.  Many low-income workers shared their stories of wage theft, working overtime with no additional pay, unsafe working conditions, and lack of benefits or raises over many years. These workers bravely went on strike, putting their jobs in jeopardy, to demonstrate and tell their stories.  

Many Americans are often surprised to learn that workers in these facilities are so poorly paid that they must rely on taxpayer-funded relief programs for food, housing, and healthcare assistance.

“We are so gratified that the President and Labor Secretary Tom Perez have heard our pleas on behalf of workers at the lowest end of the economic spectrum. A federal executive order increasing the wages the US government’s contractors pay will have a ripple effect across the economy. We applaud the President and his Administration listening to these workers and acting on their behalf,” said Michell McIntyre, NCL’s Outreach Director, Labor and Worker Rights.

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