Monday, October 25, 2004

Consumer News & Alerts -- October 25, 2004

THEY'LL WISH THEY WERE IN DIXIE


Instead, Delta's headed for a touchdown in bankruptcy court. The nation's #3 carrier is expected to make it official this week. It will join US Airways and United, who are not having a nice day as they fret about what their final destination may be. Plucky Independence Air is also flying on fumes and its bankruptcy ETA is somewhere around January.



Tough times in the airline business mean bargains for travelers today. Ah, but tomorrow? Well, think about it: after the charred husks are swept aside and only a few grizzled survivors remain, are they likely to continue slashing fares while piling on the free movies and those yummy potato chips and pretzels? Didn't think so. Our advice is along the lines of, "Smoke 'em if you've got 'em." Translation: Travel now. You'll pay later.



VIOXX PAIN WORSENS

The Vioxx withdrawal is one of those pains that just won't go away. Many doctors and patients are frustrated in their search for a replacement and even those who have suffered no ill effects fear they have done permanent harm to themselves by taking the powerful pain-killer. Meanwhile, Merck faces financial cataclysm as its earnings drop and lawsuits mount.



Pfizer is pulling out all the stops to protect its Bextra and Celebrex from further harm, launching an expensive new study of Celebrex' safety. And regulators? They're scrambling to look like they're leading the drive to protect patients, not being pulled along behind. See our Vioxx round-up for more grisly details.



Study Links Traffic to Heart Attacks

Sure, Vioxx could cause a heart attack but so can lots of other things -- including sitting and stewing in traffic. A German study found that being in traffic as a driver or passenger increases the risk of a heart attack within an hour of your trip. The longer you're in traffic, the greater the risk. Guess what? The heightened risk even applies to bicyclists.



VERIZON BETS A BUNDLE ON FIBER

The word "historic" is thrown around a little freely these days but considering how long the Dilberts have been talking about building fiber-optic networks to the home, we were mildly astonished when Verizon announced it would spend nearly $3 billion to build fiber to the doorstep of one million homes and businesses. This closes the "last-mile gap" that has kept broadband communications from developing its full potential. Besides offering lightning-fast Internet connections, Verizon will offer cable-style television service, including extensive video-on-demand.



Analysts are skeptical that the market demand will justify the huge investment but Verizon, which has bided its time for more than a decade, says it's confident of success. The biggest competitor: cable televison systems, which tend to be fiber-to-the-curb, meaning that fiber-optic cable brings the signal into the neighborhood, where it's then shunted onto slow-speed coaxial cable, reaching the consumer in a watered-down state.



Wireless Spending Takes Flight The world has changed since the phone companies began dithering about fiber back in the late 1980s. For one thing, wireless phones are slowly displacing traditional landline service. For the first time, spending on wireless service has passed spending for wired phones.



Free the VoIP And then there's VoIP, the latest political football. It's simply a means of sending phone calls over the Internet at vastly reduced cost. But the question is whether politicians and regulators will pile on so many fees that the savings disappear. After all, many consumers' phone bills amount to about 50% taxes and fees and 50% charges for the actual service. FCC Chair Michael Powell wants the states to keep their sticky hands off VoIP.



A NEW DISH BIRD

No, it's not supposed to say "a new bird dish." This isn't a cooking show. And it has nothing to do with the Presidential election of 1964, when the worst thing anyone could say about an incumbent's daughter was that she bore a striking resemblance to the candidate. Rather, this has to do with the DISH Network, which has not only quite a few annoyed customers but also a brand-new satellite. The new Ka-band bird has advanced broadband capabilities, so expect to see DISH introduce new Internet access services.



NorVergence on the Verge Norvergence sweet-talked small business owners into leasing a batch of equipment for a low-cost phone and Internet deal that didn't quite connect. Now the leasing companies want their money but the anguished cries of the victims are getting the attention of attorneys general and maybe, someday, the Federal Trade Commission.



Florida Judge OKs AT&T Prosecution AT&T has become such a non-entity that its tribulations are hardly news anymore but it's comforting nonetheless to know that a judge has ruled that Florida can move forward with its case against the fading giant. Florida charges AT&T billed customers for service they neither had nor wanted and, when they complained, tried to talk them into taking additional services they didn't want.



$155 MILLION AVALANCHE

There might have been a time when Harry Siskind wasn't clear on why they call it an "avalanche clause" but he knows now. The former promoter of "Body Solutions Evening Weight Loss Formula" convinced a judge last year that he had only $500,000 to his name, so the judge suspended the rest of a $155 million judgment, with the provision that the entire amount would become due if it turned out Siskind had jiggered his books. The feds say that's exactly what Siskind did and, assuming the judge approves, the entire $155 million judgment will land on Siskind like a -- what else? -- avalanche.



A Slimmer Portfolio The promoters of Slim Down Solution had a good thing going. They sold gobs of their D-glucosamine goop, claiming it could block dietary fat absorption and enable consumers to lose weight without changing their diet. But a judge last week found no truth in the claims. Not only that, the court held the promoters liable for $30 million in consumer damages.



RECALLS & SAFETY ALERTS



Beefmaster Explorer Outdoor Gas Grill The valve can stay open, causing a fire hazard.


Earlyears Spirolly Rattle The rattle can come open, releasing small beads, thereby creating a choking hazard for infant consumers.

Tai Tung Toys Beads can leak out of the toy ice cream car, police car and washing machine, creating a choking hazard.

Zippo Lighters Fuel can spill out of the nozzle, causing a fire hazard.

Arlotta Mattress Pads They're not flame-retardant.


Venti Caldo ed Incapace di Ritenere Andrew is molto vivace about that hot Starbucks brew dripping into his lap from the faulty venti cups. (Wait a minute, venti it means 20, no?)




GIVE IT A REST, SENATOR

Many voters get annoyed because they think that politicians don't listen to them. Then there is, of course, the other side of the coin -- voters who don't want to listen to politicians. The latter group includes Helga of Clearwater, who just wants Bob Graham to stop calling her. Translation: Could we just vote already and get it over with?



OUR SITE OR YOURS?

If you have a Web site of your own, you can now display our news headlines in categories ranging from Automotive to Travel on your site, with new categories being added all the time. Why would you want to do this? Well, it's free, it keeps your site fresh, builds return visits, positions you for future growth -- all while you sleep. It's quick and easy. No diets or exercise required. Don't wait, act now!


Monday, October 18, 2004

Consumer News & Alerts -- October 18, 2004

SPITZER SINKS TEETH INTO INSURERS

New York Attorney General Eliot Spitzer, the pit bull of law enforcement, has clamped down on Marsh & McLennan, the nation's leading insurance brokerage. Two of the firm's top executives have pleaded guilty to criminal charges and are likely to put Spitzer on the scent of many more juicy morsels. "Trust me, this is day one," said Spitzer. Wall Street swooned at the news; insurance company stocks dropped 6% or more.



In a nutshell, Spitzer charges insurance brokers are rigging bids and collecting huge fees from major insurance companies for throwing business their way, instead of looking out for their clients' best interests, which is what they're being paid to do.



THE VIOXX FLU


Maybe it was all those Presidential debates, or maybe too much time on the cell phone. Whatever the cause, American consumers suddenly have a wide assortment of health-related aches and pains to deal with.



Pfizer "Discovers" Bextra Risks Last week, Pfizer said its COX-2 inhibitors Bextra and Celebrex didn't carry the same risks as Vioxx. But now, Pfizer warns that Bextra poses risks of heart attack and stroke in patients who have had coronary bypass surgery. The risk was demonstrated in a study the company completed last spring and confirmed similar risks found a year earlier. Pfizer continues to insist its drugs differ chemically from Vioxx and don't pose the same risks ... well, not exactly the same, anyway.



Vioxx Refunds After a controlled study confirmed earlier suspicions that Vioxx could cause heart attacks and strokes in those who used it for an extended period, Merck withdrew the popular pain reliever voluntarily. "Merck did the right thing," said Acting FDA Commissioner Dr. Lester M. Crawford. Maybe so. But the giant drug company also left millions of consumers trying to figure out what to do with their remaining supply.



The company says it will pay refunds to anyone who can produce unused pills and the purchase receipts but the attorneys general from five states last week warned Merck that's not good enough. They informed Merck that another drug company was being investigated for the manner in which it conducted a recall, making it clear Merck could face big legal problems if it doesn't adopt a more liberal refund policy.



PROZAC GETS BLACK BOX WARNING

Like COX-2 inhibitors, certain types of antidepressants have for quite some time raised serious concerns among researchers. Now the Food and Drug Administration has ordered that Prozac and similar drugs display the dread "black box," a prominent notice of potentially deadly side effects. The concern is that the so-called SSRIs -- it stands for selective serotonin reuptake inhibitors -- can cause suicidal thoughts and behavior in children and adolescents.



Hang Up and Drive! There's no question cell phones are bad for your driving but now a Swedish study indicates they may be bad for what's inside your skull as well. Researchers found that people who have used cell phones for at least 10 years have an increased risk of developing a rare brain tumor. Note: The variable in those studied was not how much they talked but how long they had been using a cell phone. Significant differences became apparent at the ten-year mark.



A Privileged Class? It's been difficult to get any information about medical malpractice because everyone's trying to spin it their way, spouting theories and generalities. The only way to consider the issue intelligently is to look at actual cases, disregarding the self-interested smokescreens of the combatants.



To facilitate this, we have begun digging out and reporting on routine malpractice cases around the country. Check out our Malpractice News section where you can read about Robin Christopher, Elsa Lopez, Michael Osgood and others whose families say their deaths were caused by substandard medical care. To borrow a phrase -- we'll report, you decide. (A shortcut to this section: http://www.malpracticenews.org).



Full Disclosure Shocking though it is, the electron-stained wretches who run this newsletter and Web site are not lawyers. Our site is not owned or controlled by a law firm. We don't know why so many of those who send us epistles wrapped about virtual bricks seem to be under this mistaken impression. We could not care less whether malpractice lawyers make a lot of money or none at all. The only dog we have in this fight is enabling enlightened consumer decisions.



The Vultures Come Out To Play Amid the squabbling over the loss of half the U.S. flu vaccine supply comes the harsh reminder that profiteering inevitably follows (and, for that matter, often precedes) any widespread misfortune. Officials in Florida and Kansas have charged a Florida company with charging wildly inflated prices for flu vaccine destined for a nursing home in Kansas City. Other buzzard sightings will no doubt follow.



HIGH-VOLTAGE INTERNET

Basically, anything that vibrates can transmit data -- and that includes the power lines that bring electricity into your home. It's not technically difficult to use those lines to transmit telephone calls, cable television and high-speed data. And now that the Federal Communications Commission (FCC) has cleared the way for power companies to zap more than juice through their lines, there may soon be some interesting new competitors offering broadband service, especially in rural areas that have so far been shunned by cable and telephone-based providers.



WEB OUTLAWS ENDANGER TEENS

We've never understood why parents get so exercised about the possibility their kids might surf across something sexual or otherwise taboo on the Internet but show relatively little concern about things their kids can order over the Web that they can't buy in person. Like cigarettes. It is illegal to sell or provide cigarettes to minors yet hundreds of Web sites do just that. An advocacy group argues that it's time for local and state officials to start enforcing the law by prosecuting sites that sell tobacco to kids and the parcel services that deliver them. Agree? You can sign an online petition at e-pidemic.org/petition/.



GOOGLE SEARCHES NEW REAL ESTATE

We're bowled over by the Googleplex's latest -- Google Desktop, which will search your hard drive about 18 googilion times faster than the dreary search function built into Windows software. We now find -- in a split second -- misplaced documents and emails that we had long since given up on.




This reminds us that in all the blather that's written about Google, we have yet to find an analyst who recognizes what we consider Google's real genius: their stuff smokes. Google's Web searches are faster than a z3 with an after-market chip, as is Gmail, which we've been testing for months. In fact, Gmail is so much faster than any other Web-based e-mail service that it's not even in the same product category. We find it ludicrous that everyone harps about the ads while disregarding Gmail's speed and superior sorting capability.



Shocking Disclosure Your humble editor's threadbare portfolio includes a few shares of Google stock.




Starbucks Blends Brews and Blues Soon you'll be able to order a grande latte with a pinch (oops, better make that a blend) of Alanis Morisette and Madonna. Starbucks is introducing CD-burning kiosks where you can choose any seven songs from a library of 200,000 for $8.99. We have to admit this is a pretty swift idea, considering how long it takes to get a cup of coffee these days.



Amazon Muscles Netflix Aside They don't call it Amazon.com for nothing. Rumors that the online merchandising goliath plans to enter the monthly DVD rental business sent Netflix into a tailspin. It slashed its monthly subscription price from $21.99 a month to $17.99 while its stocked tanked and analysts began to administer last rites. Blockbuster also took to its bed, cutting its price from $19.99 to $17.99. Wal-Mart, as far as anyone could tell, had not yet noticed.



Something's Brewing Before it kicks sand in too many faces, Amazon should take note of Starbucks. Amazon's reliance on such quaint delivery channels as snail mail and UPS is a distinct disadvantage compared to Starbucks' "Sip, Burn & Go" model. There's no reason Starbucks can't print books and burn DVDs on demand. No muss, no fuss and would you like a bagel or a muffin with that?



SAD SACK NEWS ...



Hydro-Gel Promoters Shed Excess Dollars A Canadian-based fulfillment company doing business as Beauty Visions Worldwide and SlimShop has agreed to refund $72,000 to consumers to settle Federal Trade Commission charges that it made false and unsubstantiated weight-loss claims for two purported weight-loss patches - "Hydro-Gel Slim Patch" and "Slenderstrip."



Mortgage Spammer DC Enterprises sent out loads of spam pitching low-interest mortgages and got itself sued by the state of Massachusetts. The company will pay a $25,000 fine and has promised never to do it again.




RECALLS



IKEA Fargglad Children’s Chair The plastic feet can detach, posing a choking hazard to small children.


Care Bears Lunch Kits The pull-up drinking spout can detach from the bottle, posing a choking hazard to young children.


Little Giant Cooler Pumps The motor caps on the "swamp cooler" pumps are not made with flame-retardant material and an internal electrical failure can ignite the cap, posing a fire hazard.



Chrysler Minivans An electrical problem could cause the driver's side air bag to fail.


Polar and Trailblazer Work Boots The protective toe cap on the boots may not provide sufficient impact and compression protection.



A PHONY MEMORIAL TO BAD TASTE

The "Freedom Tower Silver Dollar" has been shamelessly hawked on infomercials and the Internet as a supposed memorial to those killed at the World Trade Center. This tasteless display of mawkishness is gruesome enough but in fact, says New York Attorney General Eliot Spitzer, the coins contain almost no silver and are not legal tender, which would mean they're not silver dollars, now wouldn't it? And as for the loathesome claim the coins are "minted from pure silver recovered from Ground Zero," well ... enough said.



Monday, October 11, 2004

Consumer News & Alerts -- October 11, 2004

VEXED BY VIOXX

It's a wonder we still put such faith in supposed wonder drugs. A few days ago, Merck's Vioxx was a wildly popular pain killer. Today, it's withdrawn from the market and researchers say "tens of thousands" of patients may have suffered heart attacks or strokes as a result of taking Vioxx. Aren't there alternative drugs? Yes but researchers warn that other so-called COX-2 drugs, like Pfizer's Celebrex, may pose similar risks. Pfizer denies it.



Courthouse parking was at a premium in the class-action hotbed of Madison County, Illinois, as news of the Vioxx withdrawal spread. One lawyer, in a frenzy to find a plaintiff, used his mother. Like many of those named in early lawsuits, Patricia Bilbrey, 75, had not suffered any catastrophic injury. Her son's lawsuit seeks long-term medical monitoring of her condition (not to mention others similarly affected). Canadians and Australians also rushed to their bars of justice.



Feeling ill? There's plenty of other bad news on the health front ...



Forget the Flu Vaccine Every year there's a problem with the flu vaccine. This year there's not nearly enough of it to go around.



FDA Finds Problems in Reimported Drugs The feds intercepted some drugs from Canada and found various problems with them. Of course, the root of the problem is that the U.S. drug manufacturers have cut off shipments to many Canadian pharmacies, thus creating a black market.

The Governator Strikes Again What's the most common cause of unnecessary death in the hospital? That's right, sepsis -- better known as infection. So why did California's wunderkind Schwarzenegger veto a bill that would have required hospitals to report their infection rates? Good question.



Malpractice Limits on the Ballot Four states are considering limiting your right to recover damages for medical injury. Think this is a good idea? Don't forget the 200,000 fatalities caused by hospital errors each year.



Frequent Filers Those calling for limits on malpractice suits and other lawsuits filed on behalf of individuals tend to overlook something: businesses file lawsuits all the time. In fact, the vast majority of lawsuits are filed by businesses -- many of them the very businesses that want to limit consumers' right to sue.



LAWSUITS BUG ORKIN


Forget sand fleas, Orkin is swatting some really pesky pests that have been boring into its Florida operations. A consumer lawsuit seeks to represent 65,000 Florida customers and the state's attorney general is reported to be investigating racketeering allegations against the company. All this while a federal judge upheld a multimillion-dollar arbitration judgment in favor of an Orkin customer.



FEDS DO THE MATH

Federal agencies have been rounding up telemarketing scammers faster than the District of Columbia can write parking tickets. John Ashcroft has been keeping score. His tally: 135 arrests. Ashcroft calls it "the most extensive multinational enforcement operation ever directed at telemarketing fraud schemes."



THEY'LL (ALMOST) PAY YOU TO DRIVE IT AWAY!


Speaking of parking tickets, car dealers have parking lots full of 2004 models and manufacturers are getting a little desperate to move 'em out, which can create some good buys for careful shoppers. The average manufacturer incentive per vehicle sold in the United States was $3,146 in September 2004, the highest ever. Yes, buying a car is treacherous but take a sharp pencil with you, keep an eye on the discount and you could drive off in a bargain.

Midsize Safety Improves Contrary to what many SUV owners seem to think, a vehicle doesn't have to be big to be safe. The latest side impact crash tests conducted by the Insurance Institute for Highway Safety gave half of the eight midsize cars good ratings. In fact, none of the cars received a poor rating. The test results are worth more than a sidelong glance if you're car-shopping.



INTERNET PHONE SERVICE SURGES

Local telephone competitors are becoming scarcer than snail darters since the Bell companies' maneuvering squeezed out the new players. But Internet and cable-based phone services are moving fast to fill the niche. Time Warner has just announced it will offer Internet phone service in New York and New Jersey, taking on phone giant Verizon in its biggest market.



THE TROUBLE WITH SEARS ...

Believe it or not, we try to buy things from companies routinely roughed up on our Web site, just to be fair. So when our aging Kelvinator breathed its last, we beat it over to Sears to buy a new refrigerator. A very helpful salesperson helped us find the right model and tried her best to sign us up for a Sears credit card and a service agreement. She did her job but Sears let us both down by failing on two separate occasions to actually put a refrigerator on a truck and bring it to our house. We wound up buying a KitchenAid from a local appliance store, which delivered it the next day.



This sounds familiar to Dave, a Sears employee. He'd like less pressure to sell maintenance agreements and more merchandise in the warehouse. It doesn't do much good to sell something, only to have the sale fall through because Sears doesn't have the item in stock, notes Dave. Hard to argue with that.



On the other hand, we hear from many consumers who probably would have been happier if their Kenmore refrigerator, washer/dryer or dishwasher had been out of stock.



PERFIDY UNMASKED ...



Identity Thieves Target Voters With the Presidential race as iffy as a Dell rebate, identity theft scammers have some new dirty tricks up their sleeves. Arkansas Attorney General Mike Beebe Beebe says voters are getting phone calls from people who ask for a Social Security Number and date of birth in order to confirm their voter registrations or to make so-called "corrections" to local voter rolls. Beware: voters are never required to give out this information over the phone.



Ohio Sues Active Solutions The home health products company is accused of misrepresenting sales, not honoring warranties, and not informing consumers about their right to cancel contracts. The company sells "mobility products," such as powered wheelchairs and scooters, to elderly or disabled consumers.



Lose Money While You Sleep An operation that used illegal spam to promote a bogus get-rich-quick scheme has been shut down by a U.S. District Court. The company claimed that consumers could buy a "home mailing kit" for a "shipping and handling" fee of $24.77; that the defendants would pay consumers $4 for each envelope they stuffed and mailed; and that the offer was backed by a 30-day, money back "NO QUESTIONS ASKED" guarantee.



An Expensive Day for Days Inn The Days Inn Airport in West Palm Beach has agreed to pay $70,000, including $10,000 for consumer restitution to settle charges that it overcharged consumers for basic necessities during a declared state of emergency, during Florida's most active hurricane season in history.



RECALLS & SAFETY ALERTS



Audi A6 Models The throttle could stick due to ice buildup in cold-weather states.

Dell Notebook AC Adapters They can overheat and start a fire.


Sundance Towel Radiators The towel rack may overheat and rupture, releasing heated fluid which could result in a burn injury.

New York Zion Electric Fans The wiring is undersized and the power plug is not polarized, creating fire and shock hazards.



MALE PATTERN SAILING

Our apologies to Christopher Columbus and his many adherents for our boorish behavior in publishing our newsletter today. We have a bad habit of misplacing this holiday. Somehow we think Sr. Columbus would understand. He was not exactly Mr. North-South himself. We will observe the day by washing our aging Alfa Romeos and feasting on spinach tortellini.





Monday, October 04, 2004

Consumer News & Alerts -- October 4, 2004

NEITHER VERITY NORVERGENCE

The NorVergence story is straight out of the Sopranos songbook. From its base in Newark, NorVergence went around the country promising small businesses they could save big bucks on their telephone and Internet costs. It signed them up for the service and for a long-term lease on a piece of equipment called the "Matrix," the magic box that would supposedly produce the huge savings. Well, you know what happened next...

Verily, Verity ... Working with eBillit and Integretel, the too-cleverly-named Verity International Inc., Ltd., used the infamous "dialer" download scam to bill telephone subscribers for "videotext" services they supposedly purchased. In an important ruling, a New York federal court held that simply capturing some unlucky soul's telephone number does not constitute authorization to being billing charges to that number. This ruling has the potential to upset a lot of clever "cramming" schemes, where spurious charges are added to phone bills.



A SINGULAR SETBACK

California has slammed Cingular Wireless with a $12 million fine and ordered it to pay $40 million or more to tens of thousands of Californians who were charged early termination fees. It's the biggest fine of its kind and a big hit for Cingular, which is buying AT&T Wireless. Both carriers have had more than their share of network problems, yet both kept selling phones as though they would have no trouble providing service. When customers couldn't get a signal and tried to cancel, Cingular hit them with penalties of $150 to $400. Sounds familiar, doesn't it?



ATTACK OF THE KILLER VITAMINS

You knew this had to happen. British researchers have found no evidence that gulping vitamin supplements reduces the risk of gastrointestinal cancer. Even worse, they found it actually appears to increase the risk -- enough so that 9,000 in every million users of such vitamin supplements will die prematurely as a result of taking something they think is good for them. Oh by the way, earlier studies show vitamin supplments can't be shown to reduce the risk of heart attack either.



What is good for you? Well, the best way to get all the nutrients you need is to eat a well-balanced diet using the freshest ingredients possible. Whole grains are good too -- a message General Mills has finally heeded. It's announced that all of its breakfast cereals will henceforth be made with whole grains.



LIFE WITHOUT VIOXX

What's a pain patient to do now that Vioxx has been withdrawn because of a link with heart attacks and strokes? There are several alternatives, nearly all of them cheaper. Vioxx' advantage was that it was easy on the stomach and some patients may have trouble finding another drug they can tolerate without distress.



ORBITZ TRANS CENDANT

Cendant, hotel franchiser and owner of the Cheap Tickets Web site, is buying online travel site Orbitz for $28 a share, or about $1.2 billion. The proceeds will buy about a day's worth of jet fuel for the major airlines who are Orbitz' founders.



And With Orbitz ... Cendant is getting not only one of the top three online travel sites, but also -- presumably -- Orbitz' questionable affiliation with Memberworks, a/k/a MWI.



USAir Uses the "L" Word In a bankruptcy court filing, the fading-to-black carrier said there was a "high probability" it would be forced to liquidate if it doesn't win more labor givebacks.



IF TOSHIBA MADE CARS ...

Most states give automakers three attempts to fix a problem before a car can be declared a lemon. If computer makers were held to that standard, Toshiba would have a big problem. As things stand now, it's Toshiba's customers who have the problem: many of them go for weeks without their computers while Toshiba tries repeatedly to fix problems that never seem to be resolved. It's not just computers -- the same sorry routine occurs with Toshiba's home electronics products.



PROTEVA PAYOUT DEADLINE NEARS

If you were one of the thousands who who bought a Proteva brand computer from the Home Shopping Network, you have until October 10 to file your claim. Consumers are eligible to receive between $25 and $500 from a $5 million fund.



SPIES, SPOOFS, PHISH, Etc.



Senate Considers Spyware Ban The Senate Commerce Committee has approved the Spy Block Act, and sent it on to the full Senate for a vote. No, it's not aimed at terrorist spies. This has to do with the spyware that somehow winds up on your computer.



Amazon, Microsoft Sue Alleged Phishers, Spoofers If you can't annihilate them with software, sue them. Amazon and Microsoft have done just that, suing those who spoof their domain names for phishing expeditions.



ID Theft "Protection" Consumer Benefits Group delivered no benefits, Oklahoma charges.



Fast Cash Loans Charged with Illegal Practices Washington State accused the payday lender of abusing its customers thorugh illegal collection procedures, lending practices and overcharges




RECALLS & Safety Alerts




BFGoodrich, Uniroyal, Liberator, Medalist, Phantom, Prospector Tires BFGoodrich says the tires in question don't meet company standards.


Mazda3 Models Mazda is recalling 42,000 cars because their airbags may fail to deploy in a crash

Allez Sport, Allez Elite, Roubaix, and Sequoia Bicycles The handlebar can come loose and turn unexpectedly.

Scatto Bicycle Wheel Quick Release It can release a little too quickly.


PlayKids USA Baby Walkers The walkers don't meet federal safety standards. They can fit through open doors and fail to stop at stairways.

Sauder TV/VCR Cart It can tip over.

Polaris Sportsman ATV The fuel line can leak, possibly causing a fire.




THERE'S JOY IN MUDVILLE

Aside from mud slinging, influence peddling and log rolling, there hasn't been much to do in Washington since that dreadful day 33 years ago when the District's beloved Senators (the ball club not the legislators) were stolen away by a bunch of Texans. Thus, even K Streeters momentarily took their eyes off the ball last week to applaud D.C.'s deft catch of the Montreal Expos franchise, which not only cleared the bases and brought baseball back to the District but also sent too-wealthy, latte-sipping, SUV-choked rival Northern Virginia to the showers.



In the outfield ... Some very earnest consumer groups have issued a manifesto, listing the items consumers should think about as they prepare to go to the polls. We agree with most of it but good luck getting anyone to pay attention.



If pigs could count ... Congress has dithered away another inning, sliding into fiscal year 2005 without passing a budget. This creates the opportunity for all manner of curve balls and stolen bases when the time comes to slam through last-minute plays that look good from way up in the stands but don't quite pass muster up close. Or so says the publisher of the Pig Book.










Monday, September 27, 2004

Consumer News & Alerts -- September 27, 2004

THE COMPTROLLER IS NOT AMUSED

Bankers aren't afraid of much but they do tend to perk up when the Comptroller of the Currency speaks. No, the comptroller doesn't count the pennies pouring out of the mint; he regulates national banks. And he doesn't like what he's been seeing -- federally-chartered banks pulling such no-class tricks as jacking up interest rates without warning, falsely promising high-limit cards and widely promoting low interest rates without fully disclosing the limitations.



"The OCC expects that customers be given adequate information and fair choices in the selection of credit products," said Comptroller of the Currency John D. Hawke, Jr., having just donned his velvet gloves. Banks found to engaged in unseemly practices will face "all appropriate supervisory action," he huffed.




STAYING UPRIGHT IN A LOPSIDED WORLD

There's no question Americans like their SUVs. Too bad they're so quick to tip over. A government study, however, finds that SUVs equipped with electronic stability control reduced the incidence of single-vehicle accidents by 67 percent. Unfortunately, the stability systems are on only 7.4 percent of cars and SUVs sold in 2003.



YOU CAN BUY A GOOD CAR WITH BAD CREDIT

Many families have tarnished credit histories because of job loss, a serious illness or a few years of impulsive spending. This can make it hard to buy a decent car, but as our Anne Zieger reports, that doesn't have to be the case. Follow Anne's suggestions, heed her warnings and you'll be ready to go get your wheels.



RITE AID WILL SNUFF UNDERAGE TOBACCO SALES

The younger one gets hooked on tobacco, the harder it is to quit -- and the greater the damage to lungs, heart and other vital systems. That's why parents and public health officials try to deter kids from smoking. Their efforts are too often undone by careless, uncaring or greedy merchants who illegally sell cigarettes to minors. Faced down by 22 states' legal officers, the Rite Aid chain has agreed to do the right thing and lock up the smokes.



Texas Sues Online Tobacco Site Kids unable to buy cigarettes at retail outlets often turn to the Internet, where just about anything goes. This is starting to change, though, as law enforcement trains its sites on the more blatant e-merchants of death. Texas Attorney General Greg Abbott recently won an injunction against Cyco.Net, ordering it to ensure that it does not sell to anyone under 18.



A Perfect Record How bad is the problem of online tobacco sales to minors? As bad as it can get. We sampled a number of online tobacconists not long ago and found that not one -- meaning none -- had a verifiable method of determining whether a purchaser was of legal age. The sites we tested are listed in the Hall of Shame at e-pidemic.org.



WITH BEST FRIENDS LIKE THIS ...


Finding a safe place to leave your pet can be a challenge. Last year, Johanna wrote to us about the death of her English Bulldog after a stay at a Best Friends pet "resort." Others have reported similar experiences, including Rose, whose Doberman died after an unexplained injury at Best Friends.



TALK ABOUT AN ENTITLEMENT ...

Angry readers like Henry of Slidell lashed us for suggesting the tax-bloated government should do a better job of evacuating the elderly and disabled when hurricanes and other disasters are imminent. OK, but how will Henry feel about this one? Sen. John McCain (R-Ariz.), hardly a Socialist, has introduced legislation under which the government would subsidize new TV sets for those unable to afford their own HDTV upgrade.



CELL PHONE PRIVACY


Most major wireless carriers are pressing ahead with plans for a directory of cell phone customers. They say the directory would be a service to consumers. Uh huh. It would also create a lucrative list-rental business for the phone companies and open you up to telemarketing calls on your cell phone, which would quickly burn up quite a few billable minutes. That doesn't hurt the cell phone companies either. Congress is straining mightily to tell which way the wind is blowing on this one.



Junk Fax Bill Could Boomerang
Congress is considering a bill that would supposedly ban junk faxes. But the measure is full of holes and critics say it could actually encourage some types of junk faxes. Ah, but it would supercede conflicting state laws, several of which are much tougher. How many lobbyists' fingerprints might we find on this one?



FCC Slowing Broadband Roll-Out? A new study says broadband deployment is being slowed by the FCC's permitting the Bell companies to raise wholesale rates on their circuits. The study ignores the Bells' response, which is that without raising rates they won't be able to build new networks quickly enough to meet demand.



FDA WANTS A SAFER EGG


Unlike SUVs, it's not lack of stability that makes eggs dangerous. It's lack of cleanliness, which leads in turn to the risk of salmonella. The Food and Drug Administration has come up with new regulations for big chicken ranchers that it says would cut the number of bad eggs. Maybe so, but the best rule for now is to treat raw eggs as though they were poison. Be sure to cook them thoroughly and to scrub your hands, countertop and any utensils that come into contact with the ovoids.



GETTING MARRIED IN THE MORNING?

Don't count on American Airlines to get you to the church (or the beach) on time. Natalie and her beau wanted to be married on the beach in Jamaica. Everything was set. The wedding dress and tux were packed, along with the rings, divorce decrees and so forth. Only problem was, American was running a couple of days behind schedule and the luggage was even later than that. By the time the bags showed up, it was too late. The bride and groom were long gone ... though we hope they'll manage to live happily ever after anyway.



RUDE AWAKENING FOR MATTRESS SITES

We ordered six tons of gravel on the Web recently, so you'd think you can buy just about anything online now. Maybe so but those who ordered mattresses from two online retailers lost a lot of sleep over their purchases. New York Attorney General Eliot Spitzer took up their cause and has smoothed out the wrinkles.



Of course, things aren't much better if you go buy the thing yourself. You might want to review our behind-the-scenes look at the Mattress Mafia before setting forth.



SCANNING THE SCAMS



Judge Bars Misleading Ab Force Claims Vibrating belts don't help anyone lose weight, a judge declared in upholding Federal Trade Commission charges against the "Ab Force" contraption.



California Extracts Decayed Dentists Twenty dentists are charged with fraud, conspiracy, grand theft, child abuse, elder abuse, assault and intentional infliction of great bodily injury. The state charges the dentists performed unnecessary and even dangerous procedures for the purpose of billing Medi-Cal, California's version of Medicaid.



Cashier's Check Scammers Getting Bolder Scam artists don't normally prey on attorneys general. Thus, Missouri Attorney General Jay Nixon was bemused when he opened his mail to find a version of the notorious cashier's check scam. P.S., He didn't fall for it.



Medicare Discount Card Scammers In Illinois, Attorney General Lisa Madigan sued two Canadian telemarketing firms that used confusion over a new federal government Medicare discount prescription drug card program to drain money out of consumers' checking accounts after persuading them to give up sensitive financial information.



RECALLS & SAFETY ALERTS





• Jaloma Pacifiers The nipple can come off, posing a choking hazard.


• Reebok Toddler’s Athletic Shoes The logo tag can be peeled off and possibly ingested.

• Kids' Director's Chairs They can collapse, exposing sharp metal.


• IKEA Glass-Door Cabinets They can fall off the wall.



• Bombardier, John Deere ATVs The brakes can fail.


• Ebtek Brand Backpacks with Stools The stool can collapse.


• Forte Flyte, Weyless Carbon Handlebars They can break without warning.



THE RATS' SHIP SANK?

RSS is one of the latest buzz words in the World Wide Web world. There's no general agreement on what RSS stands for. It might be "really stupid system" but most think it's "really simple syndication." Whatever it is, we now have it. RSS lets you receive instant updates from us throughout the week, including items that don't make it into the newsletter. If you're a Webmaster, you can use our RSS feed to display the latest consumer news headlines on your site. At the moment we have just a single, all-in-one feed but by the end of the week, we'll have feeds for automotive, financial, health, homeowners, travel, etc. Details are -- where else -- in our RSS section.



You won't need blog lights By popular demand, we are also getting our very own blog. Details soon.




Monday, September 20, 2004

Consumer News & Alerts -- September 20, 2004

AMERIDEBT RUNNING QUITE A TAB
The Internal Revenue Service has presented AmeriDebt with what's popularly called a "gimme." It's for $15 million, which is bad enough, but to make matters worse, the claim is based on the IRS' expectation that AmeriDebt will lose its tax-exempt status. AmeriDebt must be way over its credit limit by now -- it also faces potentially huge damages from suits filed by the Federal Trade Commission and several states.


CVS SETTLES WITH PENNSYLVANIA
Pennsylvania requires pharmacies to give a 20% discount for prescriptions resulting from auto accidents. The idea is to reduce the total cost of caring for accident victims. CVS blithely ignored this and charged its customers full freight or simply declined to fill their prescriptions. Now the company has agreed to pay refunds to those it overcharged and to publicly disclose that it won't fill prescriptions for auto accident victims.

The callousness CVS displayed in Pennsylvania is hardly surprising. We receive a constant chorus of complaints about errors and cruelty in CVS pharmacies. No wonder an estimated 7,000 Americans die from pharmacy errors each year -- such things as the wrong drug, the wrong dosage, the wrong count and mistaken identity.

It pays to shop around. As for pricing, CVS again sets the gold standard, with prices that often far exceed competitors. Jackie had been paying CVS $86.93 for a popular antibiotic that she now gets at Wal-Mart for $7.00. Fill a $3.33 prescription and CVS will charge you a $9.90 copay.



AT LAST: SAFER POWER WINDOWS
New federal rules mandate safer power window switches, designed to prevent accidental strangulation of children. European and Japanese manufacturers have used the safer switches in their U.S. models since the early 1990s but the Detroit beasts have whimpered about the cost, estimated at $8 per vehicle. Moving at its customary breakneck speed, the National Highway Traffic Safety Administration has decreed the safer switches must be installed not one second later than Oct. 1, 2008.



FEDS WANT TIRE PRESSURE MONITORS
For those who have lost all feeling in their hands, the National Highway Traffic Safety Administration (NHTSA) wants to add another warning device to American cars. This one would tell drivers when a tire is significantly under-inflated. Driving with under-inflated tires can cause tread separation and blowouts. Of course, it also causes mushy handling, which can admittedly go undetected amidst such distractions as cell phone calls, DVD malfunctions and cupholder overload.



On the other hand, maybe we should emphasize driver training that covers the technical aspects of driving -- including the high-speed evasive maneuvers that most drivers never get to practice until they need them. By then, of course, it's usually too late. Our Joe Benton has been making the transition from Beltway wannabe to fully certified race-car driver. And his 1991 Miata has undergone an attitude adjustment from cute little car to bulked-up racer. He chronicles the trip in our new Auto Racing section.


Bumper Matching a Mish-Mash Besides guzzling fuel, maiming their owners in rollovers, killing occupants of sensible vehicles and making laughing stocks of their drivers, SUVs have smashed the whole notion of bumper compatability to bits. SUV bumpers are not only higher, many of these absurd vehicles don't even have bumpers, which often means the SUV is more heavily damaged than the car it strikes. In recent tests, 10-mph collisions caused up to $6,000 damage because of bumper mismatches.



Another Look at Honda Fires Despite stepped-up training of Honda technicians, brand-new CR-Vs continue to catch fire right after their first oil change. Federal safety regulators have taken note of this and re-opened their probe into 44 fires that occurred in the little SUVs.



HEAVY SEAS
A cruise is supposed to consist of a glistening ship smoothly plying shining seas while the pampered passengers frolic on sun-splashed decks. But in Mary Anne's case, it was a water-splashed deck and a slippery one at that that scuttled her adventure on the bounding main and landed her in a small Mexican hospital while the ship's medical crew did the frolicking.

While illness or injury may be about the worst thing that can happen on a cruise, paying for a cruise you don't take comes close. That happened to Carina. Her Carnival cruise was overbooked but does that mean she gets her deposit back? Don't bet on it.



CAN YOU READ THIS?
Congratulations but it doesn't mean you're not nearsighted. Until now, the options for such folk were eyeglasses, contacts or laser surgery. Now there's a fourth possibility -- a lens impant, similar to that used after cataract surery. It's a surgical procedure but a relatively simple one and for many people, it could mean better vision and a lot less inconvenience. Check with your ophthalmologist to see if it's right for you.



Massachusetts Drills Delta Dental Many dental insurance plans are so wimpy a good flossing exhausts them. Such was the case with Delta Dental, the Massachusetts Attorney General charged. The company's advertising and marketing materials were misleading, the state argued.



KIRBY SWEEPS UP ITS SMUDGES
Over 1,000 West Virginia consumers got black smudges on their credit reports after defaulting on payments to Kirby vacuum's finance company. Now, those smudges are being swept up after a suit by the state's Attorney General.



BANKS ATTACK CALIFORNIA PRIVACY LAW
Never make a banker angry. A pack of snarling bankers and their henchmen are attacking California's so-called "SB1", considered by most consumer advocates to provide the strongest financial privacy protection in the U.S. It allows customers to "opt-out" of allowing banks to share their personal information with affiliated companies. The bankers' lawsuit charges that the state law conflicts with more permissive federal legislation.



Soaring Energy Bills Everyone talks about gasoline prices but it's home energy costs that have gone through the roof. American consumers have been hit by an average $1,000 increase in their annual household energy bills during the past four years, draining more than $500 billion from the economy, a report from Consumers Union and Consumer Federation of America finds. The reason? Unchecked consolidation in the oil and gas industry.



HEAD FOR THE HILLS!
"Almost doesn't count," they say, but New Orleans again missed obliteration by the barest of margins last week. The city is in a hole surrounded by water and a hurricane in the right spot would mean the destruction of an entire metropolitan area, most likely with tens of thousands of deaths. In light of this, it's alarming that there was no organized evacuation plan in the Big Easy as Hurricane Ivan barreled towards it -- and no organized help for the millions of refugees who took to the highways, as New Orleans writer Leonard Johnson tells us.



New Orleans is the only city the American Red Cross stays out of as hurricanes approach. Why? Too dangerous. And so the elderly, disabled and unlucky were left to fend for themselves. The City That Cares Forgot forgot about them. Or didn't care.



SCAMS & OUTRAGES



Spitzer vs. Jos. A. Bank It was a knock-out in the first round as New York dynamo Eliot Spitzer ("Rudy Jr." in some circles) took on mild-mannered Joseph A. Bank, who swears it will never again say a gray suit is "on sale" unless its price has been reduced.



Minnesota Sues LCR for Slamming LCR brings slamming to "a new low" by using its own employees to impersonate customers "verifying" long-distance service switches, Minnesota charges.



Citibank E-Mail Scam Making the Rounds We have given up mentioning specific "phishing" scams because there are so many and they are all so similar. But despite that, here's one that's been causing a lot of trouble.



Auction Scammers Settle Up Known as Electro Depot, BES Systems, Dallas Tech Surplus and New York Tech Surplus, a couple of scam artists placed ads on auction sites, including eBay, posing as laptop computer sellers. In fact, they had lots of gall ... but no laptops.



RECALLS


“Baby Björn” Infant Carriers The buckle can collapse, possibly dumping baby.
NCR Inkjet Refill Kits They're not childproof.
Suzuki Eiger ATVs The front suspension can collapse.
Polaris Predator ATV The brakes can fail.
Volvo S80, S60, XC70 The fan can short out and the engine can overheat.



DEER HUNT SCAMMER SKINNED
A Missouri man, Mark Henry, had a good thing going. He used the Internet to sell deer hunters the "opportunity" to hunt on prime land he said he owned in Missouri. There was only one problem: the land didn't exist. Jay Nixon, the state's Attorney General, then went hunting for Henry, who has now agreed to pay back more than $15,000 to the hunters he swindled.

Monday, September 13, 2004

Consumer News & Alerts -- September 13, 2004

US AIRWAYS BANKRUPT ... AGAIN

To no one's surprise, US Airways filed for bankruptcy yesterday, for the second time in three years. Among those left holding the tab are U.S. taxpayers, who partly funded the carrier's first emergence from bankruptcy. What about travelers? US Air will continue to operate for now, so there's no reason to cancel existing reservations and no reason to avoid the airline for the next few months. Be sure to pay with a credit card. If you have a lot of frequent flier miles built up, this might be a good time to try to redeem them.



HELP IS ON THE WAY?

The recovery from Hurricanes Charley and Frances seems maddeningly slow to those whose homes and businesses suffered wind or flood damage, or both. Private insurance is expected to pay for most of the damage but grants and loans are available from federal agencies for those who lack insurance. As always, scams follow storms so homeowners should be very careful about giving personal information to strangers or allowing "inspectors" into their homes without demanding proper identification.



Three years after 9/11, it's interesting to note the rather grudging response many businesses have made to the recent spate of hurricanes, tropical storms and other disasters. A few examples:



Thrifty Rent-A-Car Applied drop charges to Rick, who had little choice.



Royal Caribbean Cruise Lines Forced its passengers to race to a different port (against the directions of state officials) to board an abbreviated cruise.



FedEx Accepted storm relief supplies for Orlando but didn't deliver them.




Travelocity Kept 100% of Jim's air and lodging fare even though his trip was scrubbed by the weather.



Kingsgate Resort, Williamsburg, VA Colonial Williamsburg was in retreat but that didn't stop the hotel from charging Stacey for a room she didn't use.




LEARN TO LIKE FAT FISH

You may not think of fish as being fat, but some fish are a lot fatter than others -- salmon, tuna, lake trout and herring among them. These fine finned friends contain what are called omega-3 fatty acids, basically fish oil, and despite all you've heard about fat being bad this fat seems to be good for you. Research -- the real kind, not the infomercial variety -- shows omega-3 oils can help reduce heart disease. The feds have just approved placing health claims on the labels of qualified food.



Yes, you can buy pills that claim to be omega-3 but as with everything, it's much better to get your nutrients from natural sources, in this case big slimy slabs of fish. Pills and dietary supplements may be impure or may contain too much or not enough of the nutrient in quetion.



CORAL CALCIUM ON THE ROCKS

Kevin Trudeau, of late-night infomercial fame, will have to find a new line of work. He'll also be looking for a car and a place to live. Trudeau has agreed to be banned forever from doing infomercials for Coral Calcium and Biotape. He will also pay $500,000 in cash and surrender his house and car to the Federal Trade Commission to settle charges that his promotional efforts were a bit too, shall we say, enthusiastic.



IT'S WILD AND WOOLY ...

We expect that if you could flatten West Virginia out, it would be about as big as Texas. Even in its current wrinkled condition, the Mountain State is not to be trifled with. When Cross Country Bank tried to silence local employees of its Applied Card Solutions, it ran into a buzzsaw and is now swapping lawsuits with West Virginia Attorney General Darrell McGraw.



JBC Legal Group made an equally serious mistake. The California bill collector proudly proclaimed that McGraw had dropped his class action suit against the company, which McGraw charges uses abusive practices to collect debts. Now McGraw is really mad. "JBC's false announcement that my office dismissed its suit represents a deliberate effort to mislead the public about its fraudulent practices," he fumed.



SPRINT, AT&T COME CLEAN

Sprint and AT&T will pay nearly $1.5 million in penalties to the Federal Trade Commission. Why? They failed to come clean with customers to whom they denied service because of an adverse credit report. None of the money will go to consumers; the government is keeping all of it.



EQUIFAX GETS A BIG BAD CHECK CHARGE


A class action suit alleged Equifax charged consumers $20 "bad check fees" that were not authorized by law. The case, which dragged on for more than seven years, resulted in a $7.9 million settlement that will compensate thousands of consumers for illegitimate fees charged by the check processing company.



INVESCO Settles with Colorado Colorado Attorney General Ken Salazar has announced a $325 million settlement with INVESCO Funds Group Inc. Most of the money will go to reimburse investors. Salazar had charged the Denver-based investment advisor permitted excessive market timing activity in a number of its mutual funds, including those trading in international and foreign securities.



MID-AMERICAN MIDDLEMAN HITS BACK

Forget the jokes about corn, Iowa prides itself on its wholesome reputation, so when Attorney General Tom Miller found that a Canadian sweepstakes scheme was using an Iowa address to make itself look legit, he fired up the thresher, alerted the U.S. Postal Inspector and impounded mail sent to the mail drop. "We allege the mailings are illegal -- and that they are used to identify elderly consumers who are vulnerable to big-ticket telephone scams from Canada and the U.S," Miller said.



MISSOURI REINS IN HOMESAVERS

HomeSavers USA claims it can help consumers in danger of losing their homes to foreclosure. But in many cases, the consumer pays hundreds of dollars only to be told there's nothing HomeSavers can do to help. Missouri recently prosecuted the company and wrested a promise it would make refunds to Missouri consumers. That leaves only 49 states to go.



MIXING IT UP

You never know what products are likely to turn into slow-drip torture. Take the KitchenAid electric mixer. This innocuous device has driven Bob and others up the wall because of plastic gears chewing themselves to bits, while Elaina's mixer developed the nasty habit of leaking oil into the cookie batter.



SCAMS ON PARADE

Blue Sky Airways Consumers who booked flights on Mainline Airways found their feet glued to the tarmac. The fares from Los Angeles to Hawaii were great. Only problem: the airline doesn't exist.



Disabled Firefighters Association Sure, it sounds good but the Ohio Attorney General claims the Santa Ana, CA, "charity" falsely claims that donations go to burn victims and disabled firefighters.



Two Charities Agree to Leave Oregon Global Mindlink Foundation and Select International Donors Corporation sold expensive "memberships" to seniors.



Check Home Heating Contracts Carefully With cold weather soon to hit much of the country and energy prices rising, it's important to watch out for home heating scams.



Work at Home Scheme Targets Hispanics FTC charges Salomon Press misled Spanish-seeking consumers seeking high-paying jobs that didn't require English skills.




Taylor Gifts Settles PA Suit The company agreed to clean up its catalog and Internet sales practices.



RECALLS & SAFETY ALERTS



Ford Econoline Vans A defect in the anti-lock brake unit can start a fire.


Super Soaker Monster Rocket The cap can come off and become a projectile.



NOTHING TO WEAR

Having "nothing to wear" is a problem, all right ... particularly if it's your wedding day. Pennsylvania has sued a four-state chain of bridal shops charging it with leaving brides gownless.



SEARCH AND YOU MIGHT FIND

Our Web site is like your teen-aged daughter's bedroom. There's stuff everywhere and finding the one item you're looking for can be tough. We are trying out a new search mechanism the next few weeks. Among its other virtues, it tries to offer suggestions to narrow your search. Give it a try when you have a chance and let us know how you like it. (There's a search box in the top right-hand corner of virtually every page).