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?

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