Industry Considers Update of Voluntary Window Covering Standard
The Window Covering Manufacturing Association (WCMA) announced last month that it has initiated the process of opening up and updating the voluntary safety standard for window coverings, which includes window blinds and shades.
Safety advocates have long sought action to reduce the toll of deaths and injuries associated corded window coverings. Twelve children have died every year since 1983 due to strangulation by window covering cords. Many more have suffered permanent brain damage since the hazard was first identified 33 years ago.
In a joint statement, Parents for Window Blind Safety, Kids in Danger, Consumers Union, Independent Safety Consulting, and CFA voiced support for the effort to update the standard, noting that in its current form children are not protected from the risk of strangulation posed by corded window coverings.
“In opening the standard, WCMA must prioritize that any revisions will finally address the strangulation hazard posed by accessible cords in an effective way. But today’s announcement does not provide the critical details necessary to know whether that will be the case. We will be at the table to monitor the discussions and press for a standard that effectively addresses the strangulation hazards on all window covering products,” said Rachel Weintraub, CFA Legislative Director and General Counsel.
“For this process to be productive, it must be open to all interested parties and incorporate the contributions of the U.S. Consumer Product Safety Commission (CPSC) and consumer advocates,” the groups added. “We appreciate the CPSC staff’s commitment to participating in this standards process—their involvement is critical.”
FTC Urged to Require Online Funeral Price Disclosure
CFA and the Funeral Consumers Alliance (FCA) filed a petition with the Federal Trade Commission (FTC) last week urging the agency to revise the “Funeral Rule” so consumers can obtain price information for funeral services online. In a nationwide survey of funeral home pricing practices, CFA and FCA found that very few funeral homes fully disclose prices online.
“The Funeral Rule has protected consumers for over 30 years by requiring funeral homes to disclose price information in a meaningful fashion. The Rule was enacted to provide basic price information for vulnerable consumers purchasing funeral services,” the groups stated in a press release. “This information is vital to protect consumers. Many Americans cannot afford the average funeral as the market functions today, and between now and 2019, consumers will likely spend at least $50 billion on funeral services.”
“In the 1980s, consumers were prepared to comparison shop by phone and even to visit funeral homes to collect price information, but commerce has been revolutionized because of the Internet,” said CFA Executive Director Stephen Brobeck. “In almost every other market, information is just a click away and that intensifies competition, drives down prices and improves services. Especially for such an expensive purchase by vulnerable consumers, quick access to price information is vital. Consumers expect to get information online, which is why we are urging the FTC to update the rule.”
Imposter Scams Top 2015’s Fastest Growing Consumer Complaints
Phony IRS agents and other imposter scams topped the list of fastest-growing complaints to state and local consumer protection agencies last year, according to the latest report from the annual survey released last week by CFA and the North American Consumer Protection Investigators (NACPI).
“If someone calls or emails you unexpectedly claiming to be from the IRS, your utility company, a tech support company, or even your employer, don’t assume that it’s true,” said CFA Director of Consumer Protection Susan Grant. “Be especially wary if you’re asked to send money immediately or provide personal information that the person should already have – these are danger signs of fraud.”
Thirty-three consumer agencies from twenty-one states participated in the survey, which asked about the most common complaints they received in 2015, the fastest-growing complaints, the worst complaints, new kinds of consumer problems, agencies’ biggest achievements and challenges, and new laws that are needed to better protect consumers. While phony IRS agents and other imposter scams was last year’s fastest growing complaint, the top complaints most commonly made to state and local consumer agencies continued to be about auto-related problems and home improvement and construction.
The full report is available here.
Savings Interest, Effort, and Effectiveness Steady Over Last Year
The interest, effort, and effectiveness of Americans in saving money remained steady compared to a year ago, except for declines for Americans earning $100,000 or more, according to a survey released last month by America Saves.
The America Saves Personal Savings Index, which is measured three times a year, measured Americans’ savings interest at 65 percent, savings effort at 57 percent, and savings effectiveness at 56 percent in May 2016. All were within two percentage points of the January 2016 and May 2015 indicators.
“It surprised us that, unlike all other households, high-income households evidenced less interest, effort, and effectiveness than they did a year ago,” said CFA Executive Director Stephen Brobeck, a founder of America Saves. “I can only speculate that most of them know they are well-off but were a little shaken by the decline in stock prices early this year,” he added.
Other income categories were more stable. Savings indicators were roughly the same or higher than last year for those making $75,000 or less. While savings efforts among those earning between $25,000 and $50,000 declined 5 percentage points, savings interest and effectiveness remained the same.
Despite the decline over the last year in savings indicators among the wealthiest, low-income Americans remain significantly far behind. Americans making less than $25,000 trail the highest income earners in savings interest, savings effort, and saving effectiveness by 18, 24, and 25 percentage points respectively.
“Our survey makes clear that financial resources make an impact on Americans’ personal savings interest, effort, and effectiveness,” said Brobeck. “Low-income Americans struggling financially today are less able and less likely to be interested in saving or making an effort to save, which means they could continue to struggle tomorrow.”