For Immediate Release
5/19/99
CONTACT:	Cleo Manuel
	Holly Anderson
	(202) 835-3323

WASHINGTON, D.C.///MAY 19, 1999///Six million online consumers already have been victimized by credit card-related fraud or unauthorized use on the Web, yet most Americans remain open to the technology-related advances expected between now and the year 2020, according to "Consumers in the 21st Century," a landmark national opinion survey conducted by Louis Harris and Associates, Inc. to commemorate the 100th anniversary of the non-profit National Consumers League.

"This survey shows that Web era consumers are every bit as vulnerable as those who were around before the Internet changed the way that more and more of us do things," said National Consumer League President Linda Golodner. "While the Web can empower consumers with information, it also leaves the unwary exposed to new variations on old fraud and abuse schemes. We now have a much better sense of how consumer groups can use new technologies to meet the evolving needs of Americans in the Information Age."

As an example of the pioneering use of cutting-edge technology by a consumer group, Golodner pointed to NCLís popular National Fraud Information Center at 1-800/876-7060 or on the Web at www.fraud.org, which handles five million hits per year.

MAJOR SURVEY FINDINGS

The "Consumers in the 21st Century" survey was made possible by the financial support of Ameritech, Wyeth-Ayerst Pharmaceuticals and the Shapiro Educational Foundation. Among the key findings reported by Louis Harris and Associates are the following:

• Millions hit by online credit fraud/misuse. When those with Web access were asked if they have personally experienced online fraud or misuse of information related to their credit cards, 7 percent ñ or 6,000,000 online consumers ñ reported having had such a problem. Louis Harris and Associates Executive Vice President David Krane commented: "While the 7 percent accounts for a still relatively small share of online users, the underlying number of 6,000,000 Americans marks this as a major consumer issue for the new century."
• Technology is embraced. Three out of four Americans (76 percent) look optimistically to the future with the belief that, in general, new technology will make life easier and more convenient. For example, almost two thirds (63 percent) expect that by the year 2020 wires will not be needed in homes in order to operate computers and telephones.
• Online banking is most popular. Two-thirds of Americans (66 percent) believe that it is likely that by the year 2020 all banking will be done online. And while the public is split on whether we will still be using cash or paper money at that time (49 percent likely versus 47 percent unlikely), they are secure (76 percent) with the idea of conducting banking transactions electronically ñ either through automatic teller machines or electronic fund transfers.
• At-home shopping also set to rise. At-home shopping, either by telephone or online, is clearly believed to be the wave of the future. Three out five (57 percent) of adults believe that by 2020 they will be shopping online more than they are today and one-third (33 percent) feel similarly about shopping by telephone. Megamalls and strip malls or local community stores are predicted by the majority to be used about as much in the future as they are today.
• Slamming, cramming and other telecommunication issues. Half (50 percent) of all Americans report that either they or someone they know, have been "crammed" ñ that is, had unauthorized charges or services they did not order appear on their phone bill. Additionally, three in five (39 percent) report that either they or someone they know, have been "slammed" ñ that is, had telephone companies switched without their consent. While competition and consumer choice are clearly strongly supported and desired, consolidation of telecommunications services garners significant interest. At first glance these findings may seem contradictory, however, it seems that ideally, Americans would like a number of companies offering complete telecommunications packages to compete for their business. Further, 83 percent of Americans state that they would be at least somewhat likely, if they were able to, to purchase all their telecommunications services ñ including local and long-distance telephone, Internet connection, and cable service ñ through one company.
• "Information overload" is a myth. When it comes to the amount of information available when making purchase decisions, fully half (50 percent) of the public feel that they do not have enough information, with fewer (42 percent) being satisfied with the amount of information and only 6 percent reporting information overload.
• Web used more for research than purchases. Two out of five (42 percent) of those who access the Internet or World Wide Web do so to gather information about products and services, while only 24 percent go online to actually make purchases.
• Balking on privacy online. The majority of online users are not comfortable providing credit card (73 percent), other financial (73 percent), or personal (70 percent) information to businesses online. Despite these general privacy concerns, a majority (62 percent) of online consumers feel secure about the idea of conducting banking transactions such as paying bills or checking account balances online.
• Split on economic impact of Internet. Predictions about the impact of the Internet on the economy in the next 20 years are split with 44 percent believing the Internet will hurt local store and the local economy while 45 percent think the Internet will create a stronger economy and save people money.

OTHER SURVEY FINDINGS

The NCL "Consumers in the 21st Century" also asked a wide-ranging series of questions on other topics, including health care, telecommunications, and general consumer knowledge. Here are some of the other survey highlights:

• Sweatshops now a major issue. Topping the list as the #1 topic that worries consumers a "great deal" is the use of sweatshops or child labor in the production of goods (61 percent) followed closely by advertising and commercialism targeted at children (59 percent). Further evidence of Americansí concern about the issue of child labor is the finding that if there was a label on products indicating that they were made without the use of child labor, fully three-quarters (77 percent) of consumers would be likely to look for this label in making their purchase decisions. Additionally, a majority (55 percent) of the public would be willing to pay more for products with such a label.
• Improvements noted in consumer views. Strong majorities of the public feel that product safety (78 percent), product labeling and information (85 percent), and consumer shopping skills (77 percent) have improved in the last five years. Similarly, pluralities of the public believe that over the last five years, the quality of most products and services has improved (49 percent) and companies have gotten better at handling consumer complaints (48 percent). This positive trend in consumer opinion has increased in all of these areas since 1982.
• Perception sours on value for money. A majority of Americans (54 percent) feel that the value they get for their money on most goods and services has gotten worse over the last five years.
• What irks consumers the most. American consumers are clear and strong in their assessment of everyday consumer occurrences ñ they are fed up! On a scale of one to 10, where a one means it does not bother them at all and a 10 means they are completely fed up with it, junk mail tops the list of consumer nuisances with 59 percent of the public giving it a score of 10. Automated phone services came in a close second with 54 percent of consumers saying they are fed up with dialing a company and then hearing a recording, such as: "Press 1 for . . . "

METHODOLOGY

Interviews for "Consumers and the 21st Century" were conducted by telephone among a nationally representative sample of 1,006 adults, aged 18 or over. The interviewing took place from April 22-May 3, 1999. Figures for age, sex, race, education, and number of adults in the household were weighted where necessary to bring them in line with their actual proportions in the population.

In theory, with a sample of this size, there is a 95 percent certainty that the results have a statistical precision of plus or minus 3 percentage points of what they would be if the entire adult population had been surveyed with complete accuracy. There are several other possible sources of error in all polls or surveys that are probably more serious than theoretical calculations of sampling error. They include refusals to be interviewed (non-response), question wording and question order, interviewer bias, weighting by demographic control data, and screening. It is difficult or impossible to quantify the errors that may result from these factors.

For more information, write the National Consumers League at 1701 K Street, N. W., Suite 1200, Washington, DC 20006; 202-835-3323.

The National Consumers League, founded in 1899, is America's pioneer consumer organization. NCL's three-pronged approach of research, education and advocacy has made it an effective representative and source of information for consumers and workers. NCL is a private, nonprofit organization representing the consumer on marketplace and workplace issues.