Consumer Protection

PROTECTING CONSUMER SAFETY—Toys should not be toxic or dangerous for children to play with. Our food should not make us sick. The terms for banking and credit accounts should be clear and easy to understand.

LOOKING OUT FOR CONSUMERS

TexPIRG’s consumer program works to alert the public to hidden dangers and scams and to ban anti-consumer practices and unsafe products.

TROUBLE IN TOYLAND

For 30 years, TexPIRG’s "Trouble In Toyland" report has surveyed store shelves and identified choking hazards, noise hazards and other dangers. Our report has led to at least 150 recalls and other regulatory actions over the years.

Get our tips for avoiding dangerous toys.

BIGGER BANKS, BIGGER FEES

In April, TexPIRG released a report in which we surveyed more than 350 bank branches and revealed that fewer than half of branches obeyed their legal duty to fully disclose fees to prospective customers, while one in four provided no fee information at all. We also found that despite widespread stories about the “death” of free checking, free and low-cost checking choices are still widely available, if consumers shop around.

Find out how to beat high bank fees.

SEE ALL CONSUMER RESOURCES

Issue updates

Statement on Procter & Gamble’s New Preservative Tracker in Personal Care Products

Personal care product giant Procter & Gamble (P&G) recently unveiled a new preservative tracker, which lets consumers know which preservatives are included in various categories of P&G’s products, such as baby wipes, skin care, and hair care products. Consumers can search the tracker by ingredient or by product type.

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News Release | Consumer Protection

Yahoo Data Breach Presents Opportunity for Strong Response

Statement by Mike Litt at the U.S. PIRG Education Fund, on the latest announced Yahoo data breach.

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News Release | U.S. PIRG | Consumer Protection

Consumer Advocates Concerned By Court Ruling Overturning Ban on High-Powered Magnets

We've joined leading consumer and pediatrician organizations in a joint news release with a sharp critique of a U.S. appellate court decision overturning a U.S. Consumer Product Safety Commission ban on the sale of high-powered small magnets (some as small as BBs) that pose a severe ingestion problem for children and youth. As our Trouble In Toyland report released on November 22 pointed out: "Nearly 80 percent of high-powered magnet ingestions require invasive medical intervention, either through an endoscopy, surgery, or both. In comparison, only 10 to 20 percent of other foreign body ingestions require endoscopic intervention and almost none require surgery."

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Blog Post | Consumer Protection

Addicted to Hand Sanitizer: A Wells Fargo Scandal Update | Ed Mierzwinski

More questions continue to be raised about the Wells Fargo scandal. When did it really start- 2013, 2011 or 2005? What did execs know and when did they know it? How many frontline employees were fired because they complained as whistleblowers? Does setting up a fake account constitute criminal identity theft? Should deposed chairman and CEO John Stumpf go to jail? If the culture was pure, how did a frontline worker get "addicted to (drinking) hand sanitizer? Should he pay back more bonus compensation? Here's a flyaround of some of what's going on. By the way, did you know that even the Better Business Bureau has thrown Wells out?

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Blog Post | Consumer Protection

Consumer Financial Protection Bureau: By the numbers | Kathryn Lee

The Consumer Financial Protection Bureau released a breakdown of their successes they’ve had in the short five-year period they’ve been established. We're very proud to have been a part of building it and defending it; we're also very proud of the many achievements the youthful CFPB has made to make the financial marketplace fairer for consumers.

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News Release | U.S. PIRG | Consumer Protection

Over 7,000 Comments Submitted to Department of Labor

Every year, over $17 billion is lost from retirement savings to fees and charges, according to the Council of Economic Advisors. Today, we submitted over 7,000 PIRG member comments urging the U.S. Department of Labor to finalize a strong rule requiring retirement advisors to put the interests of their customers first. We also submitted a detailed expert comment of our own in the important "conflicted advice" rulemaking.

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News Release | US PIRG Education Fund | Consumer Protection

Top 10 List: How the CFPB Works for Consumers

The Consumer Financial Protection Bureau (CFPB) turns 4 on July 21st. To celebrate and increase public awareness of the agency, U.S. PIRG Education Fund released a new webpage, “Meet the CFPB: Just Ten of the Ways It Works for You.

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News Release | U.S. PIRG | Consumer Protection

We Commend CFPB For Adding Consumer Stories To Public Complaint Database

Yesterday, the CFPB published the first batch (7,700) of consumer narratives or stories to the Public Consumer Complaint Database it began in 2011. We've used the database to publish five reports (so far) analyzing complaint trends in markets ranging from credit cards to student loans but we have also long urged the voluntary addition of stories to the data fields. Now, consumers can learn if what happened to them happened to anyone else. Now, researchers can track which banks are more responsive to particular problems and which ignore their customers. A good resource is now an excellent resource.

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How Companies Turn Your Facebook Activity Into a Credit Score

This story in The Nation explains our work challenging the way data brokers use "black box," or secret, algorithms to make scoring decisions that may violate the law and deny credit opportunities. This work was also the subject of our recent livestream event featuring Professor Frank Pasquale and his new book, "The Black Box Society." We've now posted an archive of that event, in 3 chapters on our Youtube page.

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News Release | U.S. PIRG | Consumer Protection

PIRG Commends Supporters of Duckworth Amendment to Protect Our Troops From High-Cost Loans

Last night, on a 32-30 bipartisan vote, the House Armed Services Committee supported the Tammy Duckworth (IL) amendment to strike language from the National Defense Authorization Act that would have delayed Pentagon-proposed improvements to the Military Lending Act of 2007. It's a critical victory for servicemembers, veterans and their families, although the fight to protect our troops from high-cost loans will continue.

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Report | TexPIRG Education Fund

AutoNation, which bills itself as “America’s Largest Auto Retailer,” is selling recalled used vehicles that contain dangerous safety defects. In a survey of over 2,400 used vehicles for sale at 28 AutoNation locations, 1 in 9 were found to have unrepaired safety recalls. Those vehicles are potentially hazardous to the people who buy them, their passengers and everyone else on the road. Vehicles with defects subject to safety recalls – including malfunctioning Takata airbags and General Motors ignition switches – have been responsible for thousands of injuries and deaths.

Every AutoNation location surveyed was found to have unsafe, recalled used vehicles for sale.

• Researchers surveyed used vehicles for sale at 28 AutoNation locations in 16 metro areas across the nation during July and August 2019. Out of 2,429 vehicles surveyed, 285 had unrepaired safety recalls. 

• Some dealerships had a significantly greater proportion of used vehicles under recall than others. At the Chrysler Jeep West (CO) location, nearly 1 in 5 used vehicles had an unrepaired safety recall. At the Honda Fremont (CA), Hyundai Denver (CO), Chrysler Dodge Jeep Ram and Fiat Johnson City (TN) and Subaru Spokane Valley (WA) dealerships, more than 1 in 6 used vehicles contained an unrepaired safety recall.

• Even “certified” pre-owned vehicles often have unresolved recalls. Our survey found 14 instances of “certified” cars with unrepaired safety recalls.

All vehicle safety recalls should be taken seriously, and vehicles should be repaired before sale to consumers for use on the roads. Some victims have been killed within hours of when a dealer handed them the key to a defective car.

69 of the 2,429 used vehicles surveyed contained recalled Takata airbags that have been linked to 24 deaths and over 200 injuries globally. Exploding shrapnel from defective airbags has caused blindness and brain injury, as well as death from blood loss.

Some recalled used vehicles at AutoNation had no remedy available. 

Of the vehicles surveyed, 47 (16 percent of recalled vehicles) had an unrepaired safety recall for which a remedy wasn’t available at the time of the analysis. Consumers who purchase such a vehicle may have to wait for months or longer before their unsafe recalled vehicle can be repaired.

AutoNation advertises that its used vehicles are “worry free.”

AutoNation claims on its website that “we take the risk out of buying a pre-owned vehicle,” and that “as an industry leader we hold ourselves to higher standards.” It also purports to “provide promises and processes you won’t find anywhere else,” and advertises its pre-owned vehicles as “worry free.”

However, former AutoNation CEO Mike Jackson has admitted that vehicles with safety recalls are far from “worry free.” In 2016, Automotive News reported that he said: 

"These are not that the wrong tire-pressure sticker is on the car or some other little minor item. …These are significant safety recalls, and we feel the time has passed that it's appropriate to take a vehicle in trade with a significant safety recall and turn around the next day and sell it to consumers.”

His statement was referencing the promise that AutoNation made in 2015 not to sell used vehicles with unrepaired recalls. But this pledge lasted less than 18 months. On November 28, 2016, AutoNation walked back on its promise and began to market recalled vehicles.

Many recalled vehicles are at dealers with service shops capable of making repairs in-house.

Most AutoNation dealerships are franchisees which sell new cars that are affiliated with a specific manufacturer and have service shops that specialize in fixing that manufacturer’s vehicles. Since recalled vehicles typically must be returned to an authorized dealer for repairs, this should make it easier for those dealerships to make repairs to used recalled vehicles of the same brand, as a service department capable of making the repairs often exists on site. But, our survey found 62 used vehicles that were being sold by AutoNation dealerships of the same make as the vehicle under recall. 

Dealers’ sales of used vehicles with unrepaired safety recalls may be illegal. 

All states prohibit licensed dealers, including those that sell used vehicles, from engaging in practices such as bait and switch, false advertising, unfair and deceptive acts and practices, fraud, violating express or implied warranties and the common law duty of care, negligence or causing wrongful death. AutoNation’s failure to repair recalled cars despite promising that it is selling vehicles that are of high quality may violate these provisions. 

Auto dealers should not sell unrepaired recalled used cars to consumers. To help address the risks posed by AutoNation’s sales of unsafe recalled vehicles to consumers:

Policy recommendations

  • The U.S. District Court in Washington, D.C., should grant the relief requested by Consumers for Auto Reliability and Safety, U.S. PIRG, and the Center for Auto Safety, and overturn the Federal Trade Commission’s consent orders with GM and with the automotive dealership chains CarMax, Lithia, Koons, West-Herr and Asbury that allows them to advertise that unsafe vehicles with unrepaired safety recalls are "safe," "subject to rigorous inspections," "repaired for safety," and "certified," as long as they merely disclose that the vehicles may have an open safety recall.

  • The Federal Trade Commission should prohibit AutoNation and other dealers from engaging in deceptive and unfair practices, such as advertising its used vehicles as “worry free” and high-quality when they have unrepaired safety recalls. 

  • State attorneys general should investigate AutoNation and other dealers who engage in such practices, and enforce existing state laws that prohibit them from selling unsafe, unrepaired recalled vehicles to the motoring public. 

  • AutoNation should honor the commitment it made in 2015 and re-institute its former policy of not selling used cars with unrepaired recalls. Dealerships across the country should follow suit and implement policies that prevent the sale of used vehicles with unrepaired safety recalls. 

For consumers

  • As long as dealers continue to sell vehicles with unrepaired recalls, consumers should investigate any used vehicle they plan on purchasing to make sure that it does not contain unrepaired recalls. If the vehicle does have an unrepaired recall, consumers should refuse to buy it until it has been repaired by the seller at an authorized dealership.

  • If you recently purchased a used car, you should look up the Vehicle Identification Number (VIN) at www.safecar.gov. If there is an unrepaired recall, go to any of the manufacturer’s authorized dealerships to have it fixed. 

  • If you own a vehicle that is subject to a safety recall, and the parts are not available to fix the recall, insist on getting a safe loaner or rental vehicle from the manufacturer. 

  • Consumers or surviving family members harmed by dealers who sold unrepaired, recalled used cars should consult an attorney in their state who specializes in representing consumers in auto warranty and auto fraud litigation.

News Release | TexPIRG Education Fund

AutoNation, America’s largest auto retailer, is selling used vehicles with unrepaired safety recalls including explosive Takata airbags, faulty GM ignition switches and defects with no fix available. Unsafe Used Cars for Sale, a new report from Texas Public Interest Research Group Education Fund and the Consumers for Auto Reliability and Safety (CARS) Foundation, 1 in 7 cars for sale in Texas at AutoNation dealerships are dangerous to drivers, passengers and others who share the roads. 

“By selling recalled cars with safety defects, AutoNation endangers customers’ lives before they even reach home,” said Adam Garber, U.S. Public Interest Research Group Education Fund’s Consumer Watchdog. “The only way that AutoNation can ensure a ‘worry-free’ purchase is to repair every recalled vehicle before selling it.”

The survey found numerous unsafe cars among more than 2,400 vehicles analyzed at 28 dealerships in 12 states. 1 in 9 cars for sale at all surveyed dealerships had active recalls and specifically, 1 in 7 cars at surveyed Texas dealerships have recalls. The recalled vehicles had defects that could cause vehicles to stall in traffic, seat belts to fail, Takata air bags to propel metal fragments at passengers, cars to catch on fire, or steering to malfunction.

News Release | U.S. PIRG Education Fund

A new analysis of publicly available information from the FDA by U.S. Public Interest Research Group Education Fund finds only 26 percent of a class of recalled blood pressure medications have been assessed for carcinogen contamiantion -- and the majority had some lots with higher levels than the FDA considers safe.

Blog Post

Were you affected by the Capital One breach, one of the largest thefts of data from any bank to date?

News Release | TexPIRG

Three months after nearly 5.4 million infant sleepers were recalled for causing 36 infant deaths, a new survey by the U.S. Public Interest Research Group Education (U.S. PIRG) and Kids in Danger (KID) revealed that many child care facilities continue to use these dangerous inclined sleepers. The survey began after PIRG Consumer Watchdog Adam Garber discovered that his own son’s daycare in Philadelphia was using the recalled products.

“Every day, millions of parents drop their kids off, assuming their daycares have the information they need to keep their kids safe,” said Garber. “This failed recall is a wakeup call that our current system leaves too many infants at risk from these dangerous sleepers.”

U.S. PIRG and KID blamed the situation on confusing messages about the recall. Initially, a consumer warning for the Fisher-Price Rock ‘n Play on April 4th linked deaths to infant rollovers, leading some parents and facilities to conclude that proper use would keep babies safe. But a more complete analysis revealed some deaths occurred when the child was buckled in, leading the company and the U.S. Consumer Product Safety Commission (CPSC) to fully recall the 4.7 million Rock ‘n Play sleepers soon after on April 14. On April 26, nearly 700,000 units of the Kids II Rocking Sleeper were recalled.

Consumer Protection | U.S. PIRG

Campus debit cards cost students over $24 million in fees

Report shows how campus debit cards — along with how they are marketed — are putting students' financial well-being at risk across the country.

 

Consumer Protection | U.S. PIRG

The real price of medications

The results of our investigation of variations in prescription drug prices may surprise you.

 

Consumer Protection | U.S. PIRG

Driving into debt

The hidden costs of risky auto loans to consumers and our communities

 

Consumer Protection

Congressional investigation concludes that Equifax breach was entirely preventable

The worst data breach in history could have been prevented with some basic security measures.

 
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