LifeSmarts in Hollywood

Hello from sunny Southern California! NCL and LifeSmarts staff have arrived at the Sheraton Universal in Universal City, CA, where 33 teams are en route to compete at the 2011 National LifeSmarts Championship event.

Can’t join us in Hollywood? Follow the action online:

2011 National LifeSmarts Championship official event blog

Final day of competition streaming live online, Tuesday, May 3 at noon Eastern / 9 am Pacific

Follow us on Twitter for live score info

Become an NCL and LifeSmarts Facebook fan

The power of a seal of approval

When NCL was founded in 1899, one its primary objectives was to achieve better working conditions for workers across the country; the League’s first constitution states, “goods [should] be produced and distributed at reasonable prices and in adequate quantity, but under fair, safe, and healthy working conditions that foster quality products for consumers and a decent standard of living for workers.”

NCL White Label

Florence Kelley, NCL’s first leader, created the NCL White Label campaign to promote decent working conditions by encouraging the sale of products produced under a set of regulatory guidelines. The League implemented a system of inspecting production sites and offered the NCL White Label to products that met the League’s requirements. The League also educated consumers about the negative effects of subsidizing sweatshop labor and urged consumers to boycott goods that failed to carry the label. Eventually, much of the league’s legislative agenda – including a minimum wage and the abolition of child labor – was enacted, forcing manufacturers to reform their abusive production practices.

GoodWeave label

GoodWeave label

Today, GoodWeave is conducting a similar, outstanding campaign also aimed at eradicating child labor. According to the organization’s website, GoodWeave was founded on a simple premise: If enough people demand certified child-labor-free rugs, manufacturers will employ only skilled, adult artisans, and children will no longer be exploited in the carpet industry. GoodWeave inspects and certifies carpet-weaving facilities and offers its trademarked label to rugs that meet its production standards. However, the nonprofit’s work goes beyond certification, the group also rescues children directly from the looms, helps fund educational opportunities for children, and provides resources for weaving families and communities.

GoodWeave is a member of the NCL co-chaired Child Labor Coalition. Click here to watch a recent CNN news clip or view the video below to learn more about GoodWeave’s valuable work and mission.

Advocates to CPSC, industry: making window blinds safer an easy fix

By Sally Greenberg, NCL Executive Director

It’s hard to believe that something as seemingly benign as a window blind shade could kill a child, but as a recent New York Times story illustrated, we haven’t yet solved the fatal hazard window blinds present to children. Andrew Martin’s Times story is a cautionary tale about what happens when regulators wait and wait for industry to get off the dime and design a safer product. It doesn’t happen without regulatory pressure toward a mandatory standard.

As Martin’s story illustrates, regulators have been aware of the hazards of window cord blinds since at least the early 1980s, when a federal study to determine the causes of child strangulation tied 41 deaths to drapery and blind cords. Everything from warnings to discontinuing certain styles like horizontal blinds with pull cords ending in a loop, to other fixes like a breakaway device, have been tried. In fact, one manufacturer, Comfortex, produced an ad that highlighted its own solution to the cord problem. Comfortex advertised: “In 1996, only one company offered a real solution to the problem of injuries due to cords. While the industry searched for ways to make cords safer, Comfortex found a way to make shades without cords.”

Over a period of many years, the Consumer Product Safety Commission (CPSC) has been talking about cracking down on the industry and insisting on a cord-free design. Corded window blinds continue to present dangers to kids. It seems that no matter how well the cords on these blinds are hidden, when a child’s crib or bed is near a window with such a blind, the danger that the child will reach into the window blind and become entangled in the cord is always present.

For years, CPSC has asked manufacturers to devise a way to eliminate the risks from window cords or face the possibility of mandatory regulations. But manufacturers have dragged their feet on addressing safety hazards for decades, making minor tweaks or putting the onus on parents to shorten cords or buy tie-down devices.

CPSC has a task force to look at the issue. As an NCL friend and safety expert Carol Pollack-Nelson told the Times, “It was my understanding that we were eliminating the hazard. Now they are talking about reducing the hazard. We don’t want reduced strangulation. We want no chance of it.” We agree with Carol.

As the Times story also noted, a solution has been available for several decades: cordless blinds. The industry has testified that the additional cost of making a cordless blind is $1 to $2. And industry says cordless blinds are more difficult to manufacture than corded blinds.

Are these extra cost and other concerns worth the cost of a child’s life? Talk to parents who’ve lost a child – or seen their child suffer brain damage from being entangled in a window blind cord – and the answer will be, unequivocally yes. Would any of us disagree if our own children’s lives were in question?

The CPSC should stop pussyfooting around. We have a product that with a pattern of injury, there’s a technology to make it safe, and doing so is not prohibitively expensive. After years of handwringing, the CPSC should move forward at long last and put a mandatory standard in place for window blinds. No child should have to die because regulators and industry can’t make a simple decision to adopt a safer design for window shades.

It’s National Parks Week!

If you are fortunate enough to live close to a national park, consider getting out there and discovering something new about one of the 394 national parks in the United States.

For one year each week, the National Park Service waives admission fees in order to encourage people can affordably witness the connection between human and environmental health and the vital role America’s national parks play in both.

Did you know that America’s national parks aren’t just protected forests and deserts? The National Park Service is the U.S. federal agency that manages all national parks, many national monuments, and other conservation and historical properties with various title designations. It was created on August 25, 1916, by Congress through the National Park Service Organic Act.

Whether you prefer a 20-mile backcountry hike in Yosemite or a leisurely stroll around Philadelphia’s Independence Hall, moving outside is good for you and offers a chance to explore these places you own. Search the events calendar to find your National Park Week “must-dos,” and share your national park experience

Lessons to be learned from a newsworthy medical malpractice case

By NCL Executive Director Sally Greenberg

Medical malpractice and abuse of the government payment systems tend to go hand in hand, but the medical profession rarely blows the whistle on its own members. Vishal James Makker, a Portland, Oregon doctor, has finally lost his operating privileges after an investigation – launched by the Wall Street Journal – showed that he performed multiple spinal fusion surgeries on the same patients and billed Medicare for huge reimbursement charges. Makker is also facing multiple malpractice lawsuits, with one filed last week, for a total of 9 such suits in seven years. What’s interesting here is that the medical profession does such a poor job policing itself; several years ago the Oregon Board of Medicine, clearly perceiving that Dr. Makker’s surgeries were subpar, forced the doctor to undergo remedial training for unnecessary surgeries and billing for procedures he didn’t perform. But they let him continue practicing.

The result is that Dr. Makker continued to harm patients with unnecessary and harmful surgeries while bilking the government to cover the cost. From January 2009 to May 2010, Dr. Makker was performing two to three surgeries a week—the highest rate of spinal fusion surgeries among 3,407 surgeons who performed the procedure on 20 or more Medicare patients in 2008 and 2009. Dr. Makker’s rate was ten times the national average. He operated on some of his patients as many as seven times.

Further adding to the intrigue is the fact that Makker had a sweetheart deal with a spinal implant maker, which gives financial incentives to doctors who use its products in their surgeries. The Wall Street Journal says that the surgeon received $519,674 from the spinal implant manufacturer in a year and a half’s time.

There are a couple of lessons to be learned from this scenario. First, the American Medical Association fights medical malpractice lawsuits with a vengeance but doctors do a lousy job of policing their own. A tiny percentage of doctors commit the vast majority of malpractice and physicians know who are the bad apples are, but, as with Dr. Makker, they don’t police them effectively. This doctor is under scrutiny largely because of a newspaper article. The second lesson to take from the Makker case is that it’s unhealthy to have doctors get financial rewards to do more surgeries with a manufacturer’s devices. It puts all the wrong incentives in place.

Lastly, as Congress debates deep cuts in Medicare, policing doctors who abuse the system by overbilling for unnecessary procedures would save many millions. That’s a far better approach than punishing patients who rely on Medicare for their health care.

Food manufacturers’ claims ‘ripe’ with deception

When you reach for a bottle of spaghetti or pizza sauce at your local supermarket, would you rather the product be made from fresh, California vine-ripened tomatoes or reconstituted from industrial tomato concentrate? Food manufacturers like Del Monte and Contadina are guessing you prefer fresh ingredients in your food, and are going so far as to place false, misleading labeling on some of their products to entice consumers to buy them.

Unscrupulous food manufactures slapping inaccurate statements on their products to justify premium prices is nothing new. In the tomato sauce industry, concentrated tomato paste is often mixed with water to produce a common, accepted, and budget-friendly tomato sauce, and the ingredients list on such a product should indicate a concentrate was involved. If a product made from concentrate, however, includes claims such as “packed full of premium vine-ripened tomatoes,” “select 100% California tomatoes” and “packed in season,” these are deceptive practices under federal food labeling law.

NCL has been keeping an eye on this “from concentrate” and other food labeling issue for decades. In 2009 NCL wrote to the FDA asking the federal watchdog to crack down on misleading claims on tomato sauces. Products that NCL points to as deceptively labeled today include:

  • Del Monte Seafood Cocktail Sauce that claims “Made from California Vine-ripened Tomatoes” on the front of the package when, in fact, it is made from concentrate (tomato paste and added water). An image of a vine-ripened tomato appears directly below the claim.
  • Classico Tomato & Basil Pasta Sauce that states on the label “In colorful Naples, pasta sauces are pure and simple, with ripe, red tomatoes…” when the product is actually made from concentrate. The claim has been deleted from new “value size” jars of the sauce, but still appears on the label of the regular size product.
  • Contadina Pizza Sauce and Contadina Puree that state “Contadina picks the Freshest Tomatoes,” and “Our vine-ripened Roma style tomatoes are grown to a rich red color before picking…”

Back in 2009 NCL wrote to FDA to urge the agency to warn the food industry that claims implying that products are made from fresh ingredients when they are actually made from concentrate are deceptive under federal law. NCL also requested that FDA require that all fruit and vegetable products remanufactured from concentrate state “From Concentrate” on the fronts of food packages.

NCL is happy to report that since issuing the FDA complaint, the largest producer of tomato sauces, ConAgra Foods, has taken some corrective steps. The company’s Hunt’s brand removed the claim “Packed full of premium vine-ripened tomatoes” from its tomato sauce label, and the words “packed in season” were removed from the company’s Angela Mia Pizza Sauce label. Other misleading claims remain and work still needs to be done, but ConAgra has taken strides in the right direction.

In tough economic times, when consumers are still carefully monitoring their budgets and fuel and food prices continue to rise, having accurate pricing and product information is more important than ever; there is simply no room for duping consumers with false product information.

Roosevelt Institute defining ‘blueprint’ for college reformers

By Sally Greenberg, NCL Executive Director

This weekend I had the honor of speaking to the Roosevelt Institute Campus Network (RICN) at its Midwest meeting on the Northwestern Campus in the Chicago suburb of Evanston. The RICN is an organization of progressive college students – “millenials” – an exciting generation of young people with a social reform agenda. RICN’s publication “Blueprint for the Millenial America” is a wonderful recitation of the issues that are important to this group of young activists – economic and racial justice, LGBT equality, college affordability, green jobs, environmental protection, access to quality health care for all Americans, and a path to legal immigration for those seeking opportunity in the United States.

I joined a list of speakers that included Gillian Sorenson of the United Nations Foundation talking about the U.S. policy on international human rights and the hope and expectation that the United States would live up to the highest standards of human rights (though it has too often not done so in the past), Congresswoman Jan Schakowsky (D-IL), whose district includes Northwestern University, fresh off the plane from the brinksmanship of the House leadership who at the last minute struck to avert a government shutdown. Also speaking were Damon Silvers of the AFL-CIO, who is always an insightful thinker and great speaker. I reminded students that NCL’s Florence Kelley met and inspired her greatest protégé when speaking on a college campus – Mt. Holyoke – where Frances Perkins heard about the work of the National Consumers League and joined the organization out of college.

And then we had a chance to learn from the students – we heard from group at the Northwestern Campus for cafeteria workers.

The Northwestern Living Wage Campaign is a well organized, well researched and coordinated effort to ensure that the huge multi million dollar food services like Sedexo and Aramark are paying their workforce a living wage. The campaign defines a living wage as “an hourly wage standard that takes into account the local cost of housing, health care and other expenses necessary to support a family.” I predict they will win the day at the campus, despite opposition from the NU college president Morton Schapiro, who himself makes over a million dollars, the students said. Even the student newspaper editorial page (shame on them!) opposed the NLWC. But the justice of their cause – the 1,300 student names they’ve gotten on their petition – shows the odds are in their favor.

Thanks to the RICN for pulling these diverse voices together for the Midwestern conference. These are the progressive students of the future and NCL looks forward to a long and productive relationship with them.

 

Cost of legal representation too high for many

By NCL Executive Director Sally Greenberg

As often happens when I’m trying to get out of the office, my phone rang on a recent late Friday afternoon. On the line was a woman who described her difficult circumstances. She and her husband inherited his mother’s condo after she died. They live in Alabama, and the condo is in South Carolina. They are both unemployed and can’t pay the condo fees and the condominium association won’t let them off the hook. I asked her whether she’s considered hiring a lawyer to take on her case

“If we can’t pay the condo fees, then we sure can’t afford a lawyer,” she told me. I suggested she call the South Carolina Attorney General’s office. “We already did that,” she told me. “They said they couldn’t help.”  She had tried everything. And my heart went out to her. I suggested she make a pact with the condo association that she’ll put the condo on the market and pay the fees out of the money from the sale.

The condo association wouldn’t accept that compromise either. I have a lot of friends in the legal profession in law schools and cities around the country, including South Carolina. I can usually think of someone who can offer advice, if not actual help, so I asked her to send me an email. But her circumstances reminded me that the average person in need of legal services usually cannot afford to pay the hefty prices too many lawyers charge. Recent articles in the Wall Street Journal show some superstar lawyers fees topping $1,000 an hour and making well over $5 million per year.

No one expects the average person to pay that kind of hourly fee, but nevertheless, when the top rung is getting ridiculous fees like this, it creates fee creep among more average attorney fees. We need a system that provides far more access to affordable civil legal services to average people, the way the criminal justice system provides representation to those accused of committing a crime.

Smart computing

By Jacob Markey, Summer 2010 LifeSmarts intern

In just a few weeks, LifeSmarts teams from across the country will travel to Hollywood to compete for the 2011 LifeSmarts National Championship. They will get the chance to put their knowledge to the test, while also enjoying the city, meeting some great new people, and having a ton of fun.

Like other readers of the Savvy Consumer Blog, they would be wise to review this month’s LifeSmarts post on Technology. As I mentioned back in December, there are many safety concerns consumers should keep in mind online to keep their personal information private online to better avoid identity theft. With more consumers going online to buy goods, conduct online banking, or read the news, identity theft is a persistent problem for consumers.

Here are some helpful tips to ensure that you have a safer experience online:

  • Know that the site you are buying from is safe and reliable. Be thorough and review a person’s or online store’s background information: Check the person’s online ratings to see if others give the seller positive or negative reviews; see if the business is accredited with the Better Business Bureau in their state; make sure the site is secure if you are paying with your credit card. By taking these types of actions, you will decrease the likelihood that you will do business with a person looking to scam you.
  • Watch the actions you take when using an unsecured wireless network at places like cafes, hotels, and airports. Computer thieves can snoop on unsecured connections to steal your personal information and exploit it if they acquire it. It is recommended that you abstain from reviewing banking and other sensitive information when using an unsecured wireless network. If you need to work on confidential information, it is better to choose a secured wired connection or an encrypted wireless connection that requires a password.

Teens must be aware that there is much to watch out for on the Internet. Even Web sites that look harmless may contain dangerous information. If you have any concerns about these types of issues, ask your parents for advice.

Identity theft and computer issues remain a problem. Following smart Internet browsing will help decrease the likelihood that your computer will become infected, your personal information stolen, and losing a ton of money.

Think twice about tax refund ‘quickies’

Why you should avoid the tempting offer of an instant tax refund: while not technically a scam, refund anticipation loans (known as RAL’s in industry jargon and often advertised as “rapid refund” loans) are used to get cash to consumers in as little as 24-48 hours after a return is filed.

What is generally not well disclosed to consumers is that such “refunds” are actually loans from the tax preparer, often with hefty fees and even heftier interest rates (149 percent in some cases!). And, for consumers whose tax refunds are unexpectedly withheld from the government, they are still obligated to repay the loan, at the exorbitant interest rate. Such loans are often targeted at low-income and immigrant communities, preying on unfamiliarity with the tax system.

McClatchy Newspapers report that, in recent months, a number of big-name tax preparers, including H&R Block, have stopped offering RALs because their banking partners have been forced to back out by federal regulators. But about 7.2 million U.S. taxpayers used RALs in 2009, paying about $606 million in loan fees, plus an additional $58 million in add-on charges, according to a recent study issued jointly by the National Consumer Law Center and the Consumer Federation of America.

Fewer consumers are falling for the promises of an RAL, thankfully, but the offer of more quickly getting your tax refund – especially when times are tight – is still appealing to many consumers. Avoid the need for an RAL – do your taxes early, and monitor and adjust the taxes that are withheld from each paycheck throughout the year so you can avoid loaning Uncle Sam money you could be making better use of.