Consumer Protection

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LOS ANGELES - Attorney General Kamala D. Harris today issued a consumer alert to Californians regarding potential scams targeting seniors during Medicare’s open enrollment period, from October 15 through December 7.  During this time, senior citizens who are 65 years old and older should assess their Medicare plans and consider various plan options.  Any Medicare plan changes that are made during open enrollment will be effective on January 1, 2016.  In the course of evaluating Medicare plans, seniors should vigilantly ensure that they are not taken advantage of by Medicare scam artists who may misguide them, or attempt to obtain and misuse their personal information. 

What to look out for

The Attorney General offers California consumers the following tips in order to protect themselves during Medicare’s open enrollment period:

•  Consumers should not provide social security numbers or account information to callers who claim to be Medicare employees.  Medicare employees will not call and request such information by phone.

•  Seniors should not provide personal information to callers who claim to be calling on behalf of a doctor, hospital, or health agency.  When seniors are uncertain about the identity of a caller, they should directly contact the organization in question.

•  Medicare does not have door-to-door sales representatives.  Seniors should be cautious of individuals posing as door-to-door sales representatives for Medicare, and should not allow such individuals into their homes.   

•  Be wary of offers to provide free medical exams or supplies.  Dishonest companies may use these offers to obtain and misuse your personal information. 

•  Be careful of marketing promotions where a free lunch is offered to seniors in exchange for attending a presentation or signing up for a plan.  Since federal law does not permit a free meal to be provided during the marketing of Medicare health or drug plans, anyone offering this arrangement should not be trusted.

•  If a representative demands that billing information be provided by phone or on the web, refuse to provide such information and request a bill in the mail.  Medicare plan representatives are not allowed to ask you for payment over the phone or web. 

•  A salesperson should not use aggressive sales tactics to force a senior into purchasing a Medicare product or plan that is unnecessary or unsuitable.  If you encounter such tactics, do not make a decision until you have had a chance to discuss it with a trusted friend or relative who can assist you with determining what best suits your needs. 

What to do if you are the victim of a Medicare scam

If you believe you are a victim of Medicare fraud, call and file a report at the Inspector General’s hotline:  1-800-447-8477.  You can find more information here: www.stopmedicarefraud.gov. 

The Centers for Medicare and Medicaid Services have prepared a convenient YouTube video titled “Medicare & You” that explains how to protect yourself from becoming a victim of Medicare fraud:  To watch the video, please go to: https://www.youtube.com/watch?v=fY9lmEKlu88. 

The California Department of Insurance provides insurance protection for Californians and collects complaints on Medicare plans that are underwritten by insurance companies.  To submit a complaint to the California Department of Insurance regarding a Medicare fraud or scam, please visit: https://www.insurance.ca.gov/01-consumers/101-help/index.cfm.

The California Department of Justice protects the rights of consumers and collects complaints on scams in order to identify patterns of wrongful activity.  To submit a complaint to the California Department of Justice regarding a Medicare fraud or scam, please use one of the following complaint forms:

English: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company.  

En Español: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_sp.pdf

中文: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_chin.pdf

Tiếng Việt: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_viet.pdf

HELPFUL RESOURCES

To learn more about Medicare, visit the official U.S. Government site for Medicare at https://www.medicare.gov (English) or https://es.medicare.gov (Español).

The California Department of Insurance regulates health plans that are underwritten by insurance companies.  Information regarding the various health care options for seniors is available at http://www.insurance.ca.gov/0150-seniors/0300healthplans.  

The California Department of Aging’s Health Insurance Counseling and Advocacy Program (HICAP) offers information on Medicare and assistance with Medicare benefits.  Learn more about HICAP at https://www.aging.ca.gov/HICAP. 

SAN FRANCISCO - Attorney General Kamala D. Harris is urging California T-Mobile customers and T-Mobile account applicants to immediately place fraud alerts on their credit records in the wake of the massive breach of T-Mobile customer data housed at Experian, one of the nation’s major credit reporting agencies. Placing a fraud alert on your credit records protects consumers from identity theft by requiring that businesses verify your identity before issuing credit.

Up to 15 million T-Mobile customers’ and account applicants’ Social Security numbers, names, addresses, dates of birth, and identification numbers (such as driver’s license, military ID or passport number) were exposed in the cyber attack on Experian. According to Experian, the breach compromised data that was used by T-Mobile in connection with credit checks of individuals who applied for T-Mobile services from September 1, 2013 through September 16, 2015.  In the wrong hands, it could be used for identity theft, particularly “new account fraud,” or opening up new accounts in the victim’s name.

Unlike credit monitoring, which notifies individuals when activity has occurred on their credit records, a fraud alert is a preventive measure. When a fraud alert is in place, a merchant or other credit issuer checking the credit history of someone applying for credit gets a notice that there is a fraud alert. This alerts the merchant to take extra steps to verify the identity of the applicant. A fraud alert lasts 90 days and can be renewed.

A longer-lasting protection is a security freeze, which prevents the opening of new credit accounts unless the consumer has taken steps to temporarily lift the freeze. A freeze costs $10 per credit bureau or $5 for Californians over 65; it is free to victims of identity theft.  For instructions on how to place a freeze on your account, please see “How to ‘Freeze’ Your Credit Files: Tips for Consumers” under “Helpful Links” below.   

You can place a fraud alert with all three major credit bureaus by calling just one of the toll-free fraud numbers below. You will reach an automated telephone system that allows you to flag your file with an alert at all three bureaus. You will also be sent instructions on how to get a free copy of your report from each of the credit bureaus.

Experian 1-888-397-3742

Equifax 1-800-525-6285

TransUnion 1-800-680-7289

Helpful Links:

T-Mobile Breach Notice: https://oag.ca.gov/ecrime/databreach/reports/sb24-58079

For additional information on “Breach Help: Consumer Tips from the California Attorney General”, visit:  http://oag.ca.gov/sites/all/files/agweb/pdfs/privacy/cis-17-breach-help.pdf

For additional information on “How to ‘Freeze” Your Credit Files: Tips for Consumers”, visit: http://oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_10_credit_freeze_doj.pdf

SAN FRANCISCO - Attorney General Kamala D. Harris today announced changes to regulations implementing Proposition 65, the landmark law requiring businesses to provide warnings if they expose individuals to any listed carcinogens or reproductive toxins.    

The proposed amended regulations are the product of nearly five years of analysis and have been drafted in consultation with business and environmental groups.  They are intended to protect public health and the environment while helping to stem abuse of the law’s mechanism to allow for enforcement by private parties.  The amendments mark the first substantial change to the Attorney General’s Proposition 65 regulations since their adoption in 2001-2003. The 45-day public comment period is open until November 9.

“California has led the nation for decades in protecting our residents and the environment from pollutants and toxic chemicals,” said Attorney General Harris.  “These proposed changes maintain the intent of Proposition 65 and our vital legacy of public health and environmental protections while eliminating incentives to abuse the system.  Good public policy means rejecting the false choice that suggests we must sacrifice our commitment to the environment and public health for California businesses to thrive.”

In 1986, California voters approved the initiative to address their growing concerns about exposure to toxic chemicals. These regulatory changes will help restore public confidence that Proposition 65 is used for its proper health-protective purposes and not abused for private gain.  The proposed amendments focus on increased transparency and accountability to ensure that civil penalties in litigation brought by private enforcers under Proposition 65 are used for purposes that are clearly defined, relevant to the violations which prompted the settlement, and beneficial to Californians. 

The proposed regulations would also increase accountability by capping “in lieu of penalties” payments to ensure that the Office of Environment Health Hazard Assessment receives revenues necessary to continue its work of implementing Proposition 65 and protecting public health, as intended by the statute.  The proposed changes also raise the bar for demonstrating that settlements requiring reformulation confer a significant public benefit, instead making individual cases fact-specific and stating that payments under a settlement “may” confer public benefit.

For information on submitting public comments, click here.

Attorney General Harris has a long history of taking action to protect the health and well-being of California communities.  She has filed lawsuits to enforce Proposition 65 and other environmental laws, protecting local communities from diesel emissions, hazardous electronic waste, and other harmful pollutants.  She has also supported the Environmental Protection Agency’s efforts to curb greenhouse gas emissions from coal-fired power plants and led a coalition of states in intervening to defend the EPA from attacks and legal challenges.

SAN FRANCISCO - Attorney General Kamala D. Harris today issued a consumer alert to inform Californians that tomorrow, Saturday September 26, is the 10th National Prescription Drug Take-Back Day, an initiative led by the U.S. Drug Enforcement Administration in partnership with local law enforcement. Take-Back Day serves to provide individuals with accessible, responsible, and safe options for disposing of prescription drugs.  Unwanted, unused, and/or expired prescription drugs can be disposed, with no questions asked, at more than 325 collection sites throughout California.

Prescription drugs in the home are highly susceptible to abuse. Studies have shown that as much as 70% of persons who first misuse prescription drugs obtained the medication from their friends or relatives. Prescription drugs are also a leading cause of accidental poisoning and overdose. Data compiled by the Centers for Disease Control indicate that 51.8% of drug overdose deaths in the United States in 2013 were related to prescription drugs.

By clearing out medicine cabinets of unwanted and expired prescription drugs, Californians can actively combat prescription drug abuse by reducing availability and thus minimizing the risk of abuse. Not all medications can be safely disposed at home, and consumers should always check the labels on their medicines for instructions on the safe disposal of unused medication. But consumers can eliminate any uncertainty over how to dispose of their medication by bringing it to a take-back day event. They can anonymously dispose of prescription drugs and ensure that they will be safely discarded.

Drug Drop-Off Locations

On Saturday, September 26, from 10pm-2pm, special collection sites will be open across California. Last year, over 56,695 pounds (28 tons) of prescription drugs were dropped off at Take-Back Day collection sites in California alone.

This service is free and anonymous for consumers. For more information and to find the closest collection site to you, please visit: www.deadiversion.usdoj.gov/drug_disposal/takeback/index.html and click on “Locate a Collection Site.”

Additional Information and Resources

For information on year-round options for recycling medication, please visit: http://www.calrecycle.ca.gov/HomeHazWaste/Medications/household.htm

For information on disposing unused medication, please visit: http://www.fda.gov/Drugs/ResourcesForYou/Consumers/BuyingUsingMedicineSafely/EnsuringSafeUseofMedicine/SafeDisposalofMedicines/ucm186187.htm#Flush_List . 

SACRAMENTO - Attorney General Kamala D. Harris released the following statement today in response to Governor Jerry Brown’s signing of Assembly Bill 556, legislation authored by Assemblymember Jacqui Irwin (D-Thousand Oaks) and sponsored by Attorney General Harris that will help increase consumer confidence in charitable giving.

“I applaud Governor Brown for signing AB 556, our legislation to increase transparency and accountability in charitable fundraising,” said Attorney General Harris. “This law empowers Californians to donate wisely by providing clear information about how charities use their donations. I thank Assemblymember Irwin for introducing the legislation and for her leadership on this important issue.”

AB 556 closes loopholes in disclosure laws for paid commercial fundraising campaigns by modifying the definition of “commercial fundraiser” to include fundraising counsel that use deceptive tricks to evade registration and fundraising transparency requirements. Fundraising campaigns involving these for-profit companies will now have to disclose whether a portion of donor contributions will be directed to the paid fundraiser.  The bill also expands the existing 10-year statute of limitations for charitable enforcement cases to include for-profit fundraising firms and other third parties who engage in misconduct, extending the window of time to investigate and prosecute violations of charitable law by for-profit fundraisers.

“I’m pleased that Governor Brown signed AB 556, a collaborative effort with Attorney General Kamala Harris to increase transparency in charitable donations,” said Assemblymember Irwin. “This bill will support consumer confidence for the more than 70,000 active nonprofit organizations doing great work in California.”

The bill was supported by a diverse coalition of nonprofits operating in California and received unanimous support in both the Assembly and the Senate.

Attorney General Harris’ office recently released a report summarizing the results of charitable solicitation campaigns conducted by commercial fundraisers in 2013, which found that commercial fundraisers collected approximately $361.5 million in charitable contributions in 2013, an increase of $67.2 million over the amount reported in 2012. Read the report here: https://oag.ca.gov/sites/all/files/agweb/pdfs/charities/publications/2013cfr/cfr2013.pdf.

LOS ANGELES - California Attorney General Kamala D. Harris today issued a consumer alert on reports of price gouging by businesses, namely hotels, during the devastating wildfires that have swept our state. The Attorney General also issued a warning that the California Department of Justice is prepared to investigate and prosecute those that attempt to wrongfully profit from the destructive fires that are driving Californians out of their homes.

"As first responders fight to save communities from raging wildfires and thousands of Californians face devastation and hardship, it is exploitative and also unlawful for businesses to engage in price gouging," said Attorney General Harris.

California’s anti-price gouging statute, Penal Code Section 396, becomes effective immediately after the Governor or a local official declares a state of emergency. Governor Jerry Brown declared a state of emergency in Calaveras and Amador counties on September 11, 2015, and in Lake and Napa counties on September 13, 2015.  

California law generally prohibits charging a price that exceeds, by more than 10%, the price of an item before the declaration of emergency. This law applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline.  The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and rental housing.  Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials have increased for the business.

Violations of the price gouging statute are subject to criminal prosecution that can result in one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $5,000 per violation, injunctive relief and mandatory restitution.  The Attorney General and local district attorneys can enforce the statute.

Anyone who has been the victim of price gouging, or who has information regarding potential price gouging, is encouraged to immediately file a complaint with the Attorney General's Office by going to the Attorney General's website or by calling (800) 952-5225.

SACRAMENTO -- Attorney General Kamala D. Harris today announced her support for State Senator Bob Wieckowski’s Economic Equity and Financial Stability Initiative, a three-bill package to protect consumers from abusive debt buyer practices and help struggling Californians manage their personal debt and gain a fresh financial start.

“This legislation will help many Californians manage their debt without being abused,” said Attorney General Harris. “Low-wage earners fighting to pay down debt are often harmed by abusive debt collection practices that keep them from reaching financial stability. This legislation will offer consumers a path to getting their finances back on track and give them the tools to fight back against predatory practices.”

The initiative consists of SB 308, SB 501, and SB 641:

• SB 308 – Allows debtors to retain enough of their assets so that they can get back on their feet after a bankruptcy.
• SB 501 – Establishes a tiered garnishment rate to lower the unjustly high percentage of income currently taken from low-income workers’ paychecks.
• SB 641 – Provides low-income consumers with legal recourse to avoid being forced to pay off someone else’s debt or a debt they have already paid.

“Attorney General Harris is fearless when it comes to standing up to some of the abuses of banks and debt collectors, whose sloppy work and misconduct puts consumers in harm’s way and threatens their financial futures,” Wieckowski said. “She is a tireless fighter for consumers and I am proud to join countless working families throughout California in welcoming her support for this initiative.”

All three bills have passed the state Senate and SB 501 and SB 641 are on the Assembly floor.  SB 308 is currently in the Assembly Appropriations Committee.  The bills enjoy a broad array of support from a diverse coalition of organizations ranging from AARP to labor to legal aid groups.

LOS ANGELES – Attorney General Kamala D. Harris today issued a consumer alert to Californians based on an increased number of complaints regarding student loan debt consolidation scams received by the Attorney General’s Public Inquiry Unit. Often times purporting to offer “student debt management” or “student loan consolidation” plans, private companies are charging borrowers upfront or monthly fees for FREE federal loan benefits. These companies may claim that they have a special relationship with the Department of Education or that a special governmental loan consolidation will be ending soon and will urge students to use their services in obtaining student loan consolidation or relief. Many times these companies will charge an initial application fee as well as a monthly service fee. 

Consolidating federal student loans is FREE and can only be done through the Federal Direct Consolidation Program. A Direct Consolidation Loan will combine multiple federal student loans into one loan, resulting in a single monthly payment. Most Direct Consolidation Loans will be eligible for alternative payment plans, including income-driven repayment plans that can lower monthly payments according to income levels. Private education loans are not eligible for the Federal Direct Consolidation Program.

Applying for a Direct Consolidation Loan can be completed online:

Step 1:  Find out more information on the eligibility requirements, benefits, and potential warnings against federal loan consolidation at the Department of Education’s Federal Student Aid website here: https://studentaid.ed.gov/sa/repay-loans/consolidation. 

Step 2:  Make a list of all of your federal student loans. You can get a complete list of all of your federal loans here: https://nslds.ed.gov/nslds/nslds_SA/.

Step 3:  Apply for a Direct Consolidation Loan by completing and submitting the FREE Federal Direct Consolidation Loan Application and Promissory Note found here: https://studentloans.gov/myDirectLoan/consolidationPaper.action.  

Step 4:  Choose and apply for a Repayment Plan option. If you are having trouble making your student loan payments, you may want to consider an income-driven repayment plan such as the Income Based Repayment Plan, Pay As You Earn Plan, Income Contingent Repayment Plan, or the Income Sensitive Repayment Plan: https://studentaid.ed.gov/sa/repay-loans/understand/plans. The online Repayment Estimator may be helpful in determining the best repayment plan for your needs: https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action.  

If You Are a Current Servicemember with Federal Student Loans:

As a current servicemember you may be eligible for special benefits and repayment options for your federal student loans. More information can be found here: https://studentaid.ed.gov/sa/sites/default/files/military-student-loan-benefits.pdf.  

For More Information on Federal Loan Consolidation: 

If you have questions about consolidating your federal student loans, you can contact the Department of Education’s Loan Consolidation Information Call Center at: (800) 557-7392 or visit www.studentloans.gov/. 

To File a Complaint About a Possible Student Loan Debt Relief Scam, Contact:

The Attorney General’s Public Inquiry Unit: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company

Consumer Financial Protection Bureau: http://www.consumerfinance.gov/complaint/

LOS ANGELES -- California Attorney General Kamala D. Harris today announced that California and 47 other states and the District of Columbia have reached a $71 million settlement with pharmaceutical company Amgen Inc. to resolve allegations that Amgen unlawfully promoted biologic medications Aranesp and Enbrel. California will receive $4.6 million from the settlement.

Aranesp is used to treat certain types of anemia by stimulating bone marrow to produce red blood cells.  Enbrel is used to treat a number of conditions, including plaque psoriasis. 

“Amgen’s false marketing denied consumers the ability to make educated decisions about their healthcare,” said Attorney General Harris. “This settlement will hold the company accountable for its deceptive marketing and prevent it from using misleading practices in the future.”

In documents filed today, Attorney General Harris and the other attorneys general allege that Amgen violated state consumer protection laws by: (1) promoting Aranesp for dosing frequencies longer than the FDA approved label without competent and reliable scientific evidence to substantiate the extended dosing frequencies; (2) promoting Aranesp for anemia caused by cancer without having FDA approval or competent and reliable scientific evidence to support it; and (3) promoting Enbrel for mild plaque psoriasis even though Enbrel is only approved by the FDA to treat chronic moderate to severe plaque psoriasis.

The consent judgment requires Amgen to reform its marketing and promotional practices.  For example, under the terms of the consent judgment, Amgen may not make false, deceptive, or misleading written or oral claims in promoting Enbrel or any drug in the same class as Aranesp.

The other states participating in the settlement are Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming, as well as the District of Columbia. 

SAN FRANCISCO – Attorney General Kamala D. Harris today announced that Capital Sweepstakes Systems, Inc. (Capital Sweepstakes), a major sweepstakes gambling software provider, will pay $700,000 in civil penalties and costs and admit that it violated state gambling laws, in a case brought by the joint state and local Sweepstakes Gambling Task Force.

This settlement resolves allegations that Capital Sweepstakes violated state laws governing illegal gambling and unfair competition.  In addition to the $700,000 it will pay, Capital Sweepstakes is barred from conducting any kind of sweepstakes operations in the state for 10 years.

“Capital Sweepstakes profited by targeting low-income communities, misrepresenting their slot-machine style operations as legal enterprises and creating magnets for crime,” said Attorney General Harris. “My office is dedicated to combatting and dismantling illegal and unregulated gambling operations statewide. I thank our Gambling Task Force and the Bureau of Gambling Control for their tireless investigative work.”

This case stems from a joint investigation conducted by the Federal Bureau of Investigation (FBI) and the California Department of Justice, Bureau of Gambling Control that included extensive undercover work and multiple search warrants being served on Capital Sweepstakes’ California operations.  Additionally, cash and accounts totaling more than $3,000,000 were seized in the investigation. 

As a result of the joint investigation, Capital Sweepstakes and co-defendant Kevin Freels pled guilty to federal felony gambling charges and agreed to forfeit $1.6 million to the federal government, in addition to the $700,000 in civil penalties and costs paid to resolve the state’s suit, for a total of $2.3 million. 

Software developers like Capital Sweepstakes design software systems that create interactive gambling-themed games that they represent as lawful promotional sweepstakes for play at sweepstakes cafés, but they constitute illegal gambling under state law.  These illegal operations often are magnets for other crime at the local level and generally target a vulnerable low-income clientele. 

Sweepstakes gambling enterprises are a nationwide problem and are estimated to earn over $10 billion a year.  Attorney General Harris recently filed an amicus brief in the California Supreme Court in support of several cases that the Kern County District Attorney’s Office brought against sweepstakes gambling operations.  The Supreme Court ruled unanimously that these sweepstakes gambling operations are illegal.  

Attorney General Harris continues to take the lead in the battle against these illegal gambling operations, having been involved in seizures of illegal sweepstakes gambling equipment and funds across the state and pioneering the use of the Unfair Competition Law to provide stronger monetary remedies against them. 

The Sweepstakes Gambling Task Force was formed to bring an end to illegal sweepstakes gambling operations in California and includes the California Attorney General’s Office, Contra Costa County District Attorney Mark A. Peterson, Fresno County District Attorney Lisa A. Smittcamp, Kern County District Attorney Lisa S. Green, Merced County District Attorney Larry Morse II, Riverside County District Attorney Michael A. Hestrin, San Diego County District Attorney Bonnie M. Dumanis, Sonoma County District Attorney Jill R. Ravitch, Tulare County District Attorney Timothy Ward, and Los Angeles City Attorney Michael N. Feuer.