Combined Cingular-AT&T Data Tops the List of Wireless Complaints
Cingular and AT&T Wireless, which merged late last year to form the nation’s largest cell phone company, have the worst combined complaint record for 2004, according to records obtained by Consumers Union from the Federal Communications Commission through the Freedom of Information Act. AT&T Wireless also had the worse complaint record for two years running, the data showed.
The total number of complaints filed about wireless phone service also increased nearly 38 percent from 2003 to 2004, according the FCC’s website. Complaints rose from 21,357 in 2003 to 29,478 in 2004.
"The staggering increase in complaints is further evidence that reform is needed in the wireless phone market so consumers can get a fair shake," said Janee Briesemeister, senior policy analyst for Consumers Union, non-profit publisher of Consumer Reports.
"Since the cell phone industry brought out its 'voluntary consumer code,' consumer complaints have skyrocketed, which shoots down their claim that the marketplace is working and consumer rights’ laws aren’t needed. The numbers don’t lie – there continues to be a problem, and its getting worse, not better."
Of the more than 29,000 complaints filed in 2004, Cingular-AT&T Wireless ranked first among the top eight carriers both on a total complaint basis (combining each company’s complaint record prior to and after the merger), and in complaints adjusted to account for differences in the number of subscribers. The combined complaints for Cingular-AT&T Wireless came in at 289 per million customers. Of the national wireless companies, Verizon had the fewest complaints per million, at 76. Overall, regional carrier US Cellular has the lowest number of complaints per million subscribers, at 39.
For all of the major cell phone companies, consumers complained the most about billing problems. Complaints about transferring their phone numbers, service quality, contracts and marketing were close behind.
Consumer Help Web customer files show the same experience. "AT&T is by far the least responsive of wireless companies, " said Consumer Help Web President Joan Bounacos. "We have referred consumer complaints to regulatory agencies and local consumer attorneys five times in the past year."
Bounacos said the company's records show a complete lack of response rather than a response that was not consumer-friendly. "It's as though a brick wall is put between the company and consumers," she said. "Even letters to executives go unanswered."
To view specific complaint data go to Cell-Phone Complaints: A Sorry Picture for Cingular/AT&T.
Thursday, March 31, 2005
Wednesday, March 30, 2005
FTC Settles with AmeriDebt: Company to Shut Down
AmeriDebt, Inc. will shut down its debt management operation as part of a settlement of Federal Trade Commission charges that it deceived consumers into paying at least $170 million in hidden fees. The FTC charged that the company misrepresented that it was a nonprofit credit counseling organization that would teach consumers how to manage their finances for no up-front fee. The settlement requires AmeriDebt to transfer all current clients’ accounts to a third party and bars the company from participating in any aspect of the credit counseling business in the future. The settlement does not include the other defendants – the FTC’s case against Andris Pukke, DebtWorks, and the relief defendant, Mrs. Pukke, will continue.
In a complaint filed in November 2003, the FTC charged that AmeriDebt, Inc., DebtWorks, Inc., and Andris Pukke deceived consumers with claims that AmeriDebt was a nonprofit organization that could help consumers get out of debt without an up-front fee. The FTC charged that, rather than operating for charitable purposes as advertised, AmeriDebt was funneling profits to affiliated for-profit entities, including DebtWorks and Andris Pukke. According to the FTC, AmeriDebt deceived new clients into making a “voluntary contribution” to enroll in the program. The FTC alleged that AmeriDebt kept these initial “contributions” as fees without consumers’ knowledge, rather than disbursing the money to consumers’ creditors as promised.
The FTC’s complaint also charged that, despite promises to teach them how to manage their money to avoid future debt, the defendants simply enrolled all customers in debt management plans (DMPs). In the DMP, consumers made a single monthly payment to AmeriDebt for all their unsecured debts; the payment was then to be disbursed to the consumers’ creditors. The FTC charged AmeriDebt with deceptive practices and also with violating the Gramm-Leach-Bliley (GLB) Act by failing to provide consumers with required privacy notices. In addition, the complaint named Andris Pukke’s wife, Pamela Pukke, as a relief defendant.
In June 2004, AmeriDebt filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Maryland. At the request of the FTC and others, the bankruptcy court removed existing management and appointed a Trustee to oversee AmeriDebt.
The stipulated final order bars AmeriDebt from participating in the credit counseling, debt management, or credit education business. As part of the settlement and the bankruptcy case, the company will shut down its operations by transferring all existing DMPs to a third party. The Trustee, Mark Taylor, Esq. of the law firm of Arent Fox PLLC, has already taken steps to transfer AmeriDebt’s existing DMPs to a reputable credit counseling agency consistent with the terms of the order.
In addition, the stipulated final order prohibits AmeriDebt from misrepresenting that it is a nonprofit organization; that it does not charge up-front fees for its services; and that it will counsel consumers about their finances. The company also is prohibited from violating the GLB Act in the future. The order requires the company to file a plan of liquidation with the bankruptcy court. In addition, the order contains a judgment of $170 million, but the FTC will collect on this amount, if at all, through the AmeriDebt bankruptcy case. Finally, the order contains standard recordkeeping requirements to assist the FTC in monitoring the defendant’s compliance.
For updates to the case, the FTC consumer hotline number for AmeriDebt is:1-877-862-0886.The Commission vote authorizing staff to file the stipulated final judgment and order was 5-0. The order was filed in the U.S. District Court for the District of Maryland on March 18, 2005.
Note: This stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of a law violation. A stipulated final order requires approval by the court and has the force of law when signed by the judge.
AmeriDebt, Inc. will shut down its debt management operation as part of a settlement of Federal Trade Commission charges that it deceived consumers into paying at least $170 million in hidden fees. The FTC charged that the company misrepresented that it was a nonprofit credit counseling organization that would teach consumers how to manage their finances for no up-front fee. The settlement requires AmeriDebt to transfer all current clients’ accounts to a third party and bars the company from participating in any aspect of the credit counseling business in the future. The settlement does not include the other defendants – the FTC’s case against Andris Pukke, DebtWorks, and the relief defendant, Mrs. Pukke, will continue.
In a complaint filed in November 2003, the FTC charged that AmeriDebt, Inc., DebtWorks, Inc., and Andris Pukke deceived consumers with claims that AmeriDebt was a nonprofit organization that could help consumers get out of debt without an up-front fee. The FTC charged that, rather than operating for charitable purposes as advertised, AmeriDebt was funneling profits to affiliated for-profit entities, including DebtWorks and Andris Pukke. According to the FTC, AmeriDebt deceived new clients into making a “voluntary contribution” to enroll in the program. The FTC alleged that AmeriDebt kept these initial “contributions” as fees without consumers’ knowledge, rather than disbursing the money to consumers’ creditors as promised.
The FTC’s complaint also charged that, despite promises to teach them how to manage their money to avoid future debt, the defendants simply enrolled all customers in debt management plans (DMPs). In the DMP, consumers made a single monthly payment to AmeriDebt for all their unsecured debts; the payment was then to be disbursed to the consumers’ creditors. The FTC charged AmeriDebt with deceptive practices and also with violating the Gramm-Leach-Bliley (GLB) Act by failing to provide consumers with required privacy notices. In addition, the complaint named Andris Pukke’s wife, Pamela Pukke, as a relief defendant.
In June 2004, AmeriDebt filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Maryland. At the request of the FTC and others, the bankruptcy court removed existing management and appointed a Trustee to oversee AmeriDebt.
The stipulated final order bars AmeriDebt from participating in the credit counseling, debt management, or credit education business. As part of the settlement and the bankruptcy case, the company will shut down its operations by transferring all existing DMPs to a third party. The Trustee, Mark Taylor, Esq. of the law firm of Arent Fox PLLC, has already taken steps to transfer AmeriDebt’s existing DMPs to a reputable credit counseling agency consistent with the terms of the order.
In addition, the stipulated final order prohibits AmeriDebt from misrepresenting that it is a nonprofit organization; that it does not charge up-front fees for its services; and that it will counsel consumers about their finances. The company also is prohibited from violating the GLB Act in the future. The order requires the company to file a plan of liquidation with the bankruptcy court. In addition, the order contains a judgment of $170 million, but the FTC will collect on this amount, if at all, through the AmeriDebt bankruptcy case. Finally, the order contains standard recordkeeping requirements to assist the FTC in monitoring the defendant’s compliance.
For updates to the case, the FTC consumer hotline number for AmeriDebt is:1-877-862-0886.The Commission vote authorizing staff to file the stipulated final judgment and order was 5-0. The order was filed in the U.S. District Court for the District of Maryland on March 18, 2005.
Note: This stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of a law violation. A stipulated final order requires approval by the court and has the force of law when signed by the judge.
Tuesday, March 29, 2005
Blockbuster Settles With Most States Over Late Fees, New Jersey Case Still Open
Blockbuster announced today that it had reached an agreement with 46 states and the District of Columbia that will compel the video giant to change the manner in which it advertises its late fee policies.
An action in New Jersey earlier this year caused other states to accuse Blockbuster of misleading consumers regarding the new policy, which automatically converts rental items kept seven days past the return date to sales. "Customers should not have to search for the real price hidden behind catchy slogans and disclaimers," said Michigan Attorney General Mike Cox when announcing the settlement.
Blockbuster said Tuesday that it would pay more than $600,000 to cover the costs incurred by states who took action against the company. Blockbuster also agreed to take the following actions by March 31:
Blockbuster announced today that it had reached an agreement with 46 states and the District of Columbia that will compel the video giant to change the manner in which it advertises its late fee policies.
An action in New Jersey earlier this year caused other states to accuse Blockbuster of misleading consumers regarding the new policy, which automatically converts rental items kept seven days past the return date to sales. "Customers should not have to search for the real price hidden behind catchy slogans and disclaimers," said Michigan Attorney General Mike Cox when announcing the settlement.
Blockbuster said Tuesday that it would pay more than $600,000 to cover the costs incurred by states who took action against the company. Blockbuster also agreed to take the following actions by March 31:
- more in-store signage, including door decals, counter signs, and checkout line signs displaying the End of Late Fees brochures;
- No Late Fees Info Centers, complete with the End of Late Fees brochures and terms and conditions, that explain the entire program;
- redesigned receipts that include program details and the sales price and date on which the customer will purchase the movie or game if the item is not returned;
- highlighting of key program details on Blockbuster’s website to make the information even easier to access
- reinforced employee training, including specific reminders for effectively communicating the program to customers;
- an offer to refund/credit customers of corporate and participating franchise stores for prior restocking fees and/or charges for non-returned product; and
- an offer to provide free rental coupons for customers of non-participating franchise stores who did not understand whether the program applied to them at the time of the transaction.
Monday, March 28, 2005
2005 Consumer Action Handbook Is Free Again
The U.S. government has released the 2005 Consumer Action Handbook and has returned the title to its group of free titles. Previous editions were free until a brief experiment recently where the online version was free and the printed copy was available for a nominal fee.
"The Consumer Action Handbook is the best overall resource on the market," said Consumer Help Web President Joan Bounacos. "We even use much of the contact information data in our complaint resolution service. Making it available at no charge is certainly a boon for consumers."
Copies of the 2005 Handbook are available by completing an online form.
The U.S. government has released the 2005 Consumer Action Handbook and has returned the title to its group of free titles. Previous editions were free until a brief experiment recently where the online version was free and the printed copy was available for a nominal fee.
"The Consumer Action Handbook is the best overall resource on the market," said Consumer Help Web President Joan Bounacos. "We even use much of the contact information data in our complaint resolution service. Making it available at no charge is certainly a boon for consumers."
Copies of the 2005 Handbook are available by completing an online form.
Friday, March 25, 2005
Yahoo! Free Email Quadruples Storage Space, Consumer Advocates Urge Keeping At Least One Free Email Account
Reacting to similar offers from Google and Microsoft, Yahoo! announced yesterday that it would quadruple storage space for its free mail accounts to 1 gigabyte beginning next month.
Yahoo!, which previously charged for storage space, moved the online community one step closer to making web mail a commodity. Many consumer advocates advise maintaining at least one free email account to be used for commercial purposes to avoid a consumer's main account from attracting unwanted solicitations.
"Yahoo and Google offer outstanding consumer services," said Joan Bounacos, president of Consumer Help Web. "Their spam filters are strong and with the additional storage capacity, consumers can use one of these free accounts whenever a commercial or other web site requests an email address. Doing so frees up your personal email account and should limit the amount of unwanted email you receive."
Reacting to similar offers from Google and Microsoft, Yahoo! announced yesterday that it would quadruple storage space for its free mail accounts to 1 gigabyte beginning next month.
Yahoo!, which previously charged for storage space, moved the online community one step closer to making web mail a commodity. Many consumer advocates advise maintaining at least one free email account to be used for commercial purposes to avoid a consumer's main account from attracting unwanted solicitations.
"Yahoo and Google offer outstanding consumer services," said Joan Bounacos, president of Consumer Help Web. "Their spam filters are strong and with the additional storage capacity, consumers can use one of these free accounts whenever a commercial or other web site requests an email address. Doing so frees up your personal email account and should limit the amount of unwanted email you receive."
Thursday, March 24, 2005
Illinois Senate To Vote On Joining Other States In Releasing Used Vehicle Accident Data
Attorney General Lisa Madigan and Sen. James T. Meeks (D-15), introduced Senate Bill 1839, which would help protect used-car buyers in Illinois. Secretary of State Jesse White and vehicle history company Carfax are also endorsing SB-1839 that would make police-reported accidents information available to both dealers and consumers.
A vote on SB-1839 is scheduled for early April in the Illinois Senate, having passed through the Housing and Community Affairs Committee.
An estimated 700,000 cars were involved in police-reported accidents throughout the State of Illinois in 2003. Much of this information, however, is never disclosed when cars are later sold.
"Carfax applauds Attorney General Madigan and Senator Meeks for this decisive measure to protect both dealers and consumers in Illinois," said Larry Gamache, communications director at Carfax. "No longer will used-car buyers have to wonder if the car they are considering has ever been in an accident so severe that a police report was filed."
Currently 38 other states - including New York, California and Michigan - disclose police-reported accidents to the public
Attorney General Lisa Madigan and Sen. James T. Meeks (D-15), introduced Senate Bill 1839, which would help protect used-car buyers in Illinois. Secretary of State Jesse White and vehicle history company Carfax are also endorsing SB-1839 that would make police-reported accidents information available to both dealers and consumers.
A vote on SB-1839 is scheduled for early April in the Illinois Senate, having passed through the Housing and Community Affairs Committee.
An estimated 700,000 cars were involved in police-reported accidents throughout the State of Illinois in 2003. Much of this information, however, is never disclosed when cars are later sold.
"Carfax applauds Attorney General Madigan and Senator Meeks for this decisive measure to protect both dealers and consumers in Illinois," said Larry Gamache, communications director at Carfax. "No longer will used-car buyers have to wonder if the car they are considering has ever been in an accident so severe that a police report was filed."
Currently 38 other states - including New York, California and Michigan - disclose police-reported accidents to the public
Wednesday, March 23, 2005
Texas Sues Vonage For Lack Of 911 Service
Texas Attorney General Greg Abbott announced today that the state has filed a lawsuit against Internet telephone company Vonage for failing to disclose that traditional 911 emergency phone service is unavailable.
This is not just about bad customer service; it’s a matter of life and death," said Abbott in a statement. The Attorney General's office has cited a Houston woman's inability to contact a police dispatcher after two people were shot in her home.
Vonage, headquartered in Edison, New Jersey, is the nation's largest provider of Internet phone service, known as Voice Over Internet Protocol (VoIP). The company has more than 400,000 lines in service and an estimated $50 million in annual revenues.
The lawsuit was filed under the Texas Deceptive Trade Practices Act and seeks an injunction against the company's alleged misrepresentation of its 911 services as well as $20,000 for each violation of the Act.
Texas Attorney General Greg Abbott announced today that the state has filed a lawsuit against Internet telephone company Vonage for failing to disclose that traditional 911 emergency phone service is unavailable.
This is not just about bad customer service; it’s a matter of life and death," said Abbott in a statement. The Attorney General's office has cited a Houston woman's inability to contact a police dispatcher after two people were shot in her home.
Vonage, headquartered in Edison, New Jersey, is the nation's largest provider of Internet phone service, known as Voice Over Internet Protocol (VoIP). The company has more than 400,000 lines in service and an estimated $50 million in annual revenues.
The lawsuit was filed under the Texas Deceptive Trade Practices Act and seeks an injunction against the company's alleged misrepresentation of its 911 services as well as $20,000 for each violation of the Act.
Tuesday, March 22, 2005
Graco Fined $4 Million, Issues Massive Recall
Children products manufacturer Graco was fined $4 million and was compelled to recall more than a million units of swings, beds and other equipment for children sold between 1991 and 2003.
The Consumer Product Safety Commission's fine, which can be appealed, was levied after the company failed to disclose hundreds of injuries related to 16 products. Graco Children's Products is now owned by Newell Rubbermaid, which did not own the company when the disclosures were required to take place. CPSC Chairman Hal Stratton praised the company, saying, "The action taken by Newell Rubbermaid to identify these critical safety failures by companies they purchased and take the necessary measures to improve product safety is a positive step that other companies should follow."
Consumers who own a Graco product can visit the CPSC's web site to determine if the product is part of the recall.
Children products manufacturer Graco was fined $4 million and was compelled to recall more than a million units of swings, beds and other equipment for children sold between 1991 and 2003.
The Consumer Product Safety Commission's fine, which can be appealed, was levied after the company failed to disclose hundreds of injuries related to 16 products. Graco Children's Products is now owned by Newell Rubbermaid, which did not own the company when the disclosures were required to take place. CPSC Chairman Hal Stratton praised the company, saying, "The action taken by Newell Rubbermaid to identify these critical safety failures by companies they purchased and take the necessary measures to improve product safety is a positive step that other companies should follow."
Consumers who own a Graco product can visit the CPSC's web site to determine if the product is part of the recall.
Monday, March 21, 2005
WorldCom Directors Kick In $20 Million To Settle Shareholder Suits
Eleven former WorldCom (now MCI) members of the board of directors have pledged to pay more than $20 million of their own funds to settle a class action lawsuit brought by shareholders of the embattled company's stock.
The directors' settlement is part of a total of more than $55 milion, with the balance being paid by insurance companies. The company's two lead investment banks have pledged an additional $4.6 billion, and estimates are that the total amount paid out in the suit will surpass $6 billion.
A settlement of that size means that many shareholders will receive a substantial portion of their loss in stock value when the company engaged in accounting fraud and spiraled into bankruptcy.
Eleven former WorldCom (now MCI) members of the board of directors have pledged to pay more than $20 million of their own funds to settle a class action lawsuit brought by shareholders of the embattled company's stock.
The directors' settlement is part of a total of more than $55 milion, with the balance being paid by insurance companies. The company's two lead investment banks have pledged an additional $4.6 billion, and estimates are that the total amount paid out in the suit will surpass $6 billion.
A settlement of that size means that many shareholders will receive a substantial portion of their loss in stock value when the company engaged in accounting fraud and spiraled into bankruptcy.
Friday, March 18, 2005
FDIC: Banks Must Warn Consumers Of Identity Disclosure
The Federal Deposit Insurance Commission (FDIC) voted 5-0 today to approve a ruling forcing banks to notify customers when their Social Security number or other identification numbers may have been released or misued by external entities.
The action comes on the heels of Bank of America's admission that it had lost data tapes with personal records of 1.2 million individuals.
The FDIC ruling, if approved by the Federal Reserve, could cause a significant increase in identity theft disclosures," said Jim Stickley, Chief Technology Officer of TraceSecurity in a prepared statement. "Today, most large-scale identity thefts go unreported, either because the bank wants to avoid tarnishing their reputation or because they are simply unaware of the breaches. Many banks employ archaic data privacy practices that haven't kept pace with the evolving threats. The exploits of identity thieves, however, which are often coordinated by international crime syndicates, have become increasingly creative and sophisticated. Many banks are caught in a catch-22 situation: Their customers are demanding greater online access to a broader range of financial services, yet as banks make their services available online to customers, they're also making them available to thieves."
The Federal Deposit Insurance Commission (FDIC) voted 5-0 today to approve a ruling forcing banks to notify customers when their Social Security number or other identification numbers may have been released or misued by external entities.
The action comes on the heels of Bank of America's admission that it had lost data tapes with personal records of 1.2 million individuals.
The FDIC ruling, if approved by the Federal Reserve, could cause a significant increase in identity theft disclosures," said Jim Stickley, Chief Technology Officer of TraceSecurity in a prepared statement. "Today, most large-scale identity thefts go unreported, either because the bank wants to avoid tarnishing their reputation or because they are simply unaware of the breaches. Many banks employ archaic data privacy practices that haven't kept pace with the evolving threats. The exploits of identity thieves, however, which are often coordinated by international crime syndicates, have become increasingly creative and sophisticated. Many banks are caught in a catch-22 situation: Their customers are demanding greater online access to a broader range of financial services, yet as banks make their services available online to customers, they're also making them available to thieves."
Thursday, March 17, 2005
Westlaw Reacts To Data Integrity Breaches
Information services company Westlaw has announced that many companies and government agencies will no longer be able to obtain Social Security numbers from the company's databases.
"The events of the past months illustrate the importance of tougher controls, and we're pleased to be a part of a broader and ongoing effort that supports both individual privacy and homeland security concerns," said Peter Warwick, CEO of Thomson West.
One of the key factors in the company's decision is undoubtedly the announcement last month that competitor ChoicePoint had improperly released tens of thousands of records to unauthorized people. Law enforcement officials believe the data will be used to commit identity theft crimes.
Industry observers praised Westlaw's decision to limit access to Social Security number data, but the action may not be enough to halt legislative action that would impact the entire industry.
Information services company Westlaw has announced that many companies and government agencies will no longer be able to obtain Social Security numbers from the company's databases.
"The events of the past months illustrate the importance of tougher controls, and we're pleased to be a part of a broader and ongoing effort that supports both individual privacy and homeland security concerns," said Peter Warwick, CEO of Thomson West.
One of the key factors in the company's decision is undoubtedly the announcement last month that competitor ChoicePoint had improperly released tens of thousands of records to unauthorized people. Law enforcement officials believe the data will be used to commit identity theft crimes.
Industry observers praised Westlaw's decision to limit access to Social Security number data, but the action may not be enough to halt legislative action that would impact the entire industry.
Wednesday, March 16, 2005
CPSC, Bernat Yarn Announce Recall of “Fur Out” Yarn
The U.S. Consumer Product Safety Commission announces the following recall in voluntary cooperation with the firm below. Consumers should stop using recalled products immediately unless otherwise instructed.
Name of Product: Bernat “Fur Out” yarn
Units: About 730,000 1.75-ounce balls of yarn
Manufacturer/Importer: Spin Rite LP of Ontario, Canada
Hazard: “Fur Out” yarn is flammable when used as the sole yarn in a garment. Garments constructed of “Fur Out” yarn are dangerously flammable when exposed to a flame, posing a burn risk to consumers.
Incidents/Injuries: Bernat has received two reports of garments made of the recalled yarn burning, with one person receiving singed eyebrows.
Description: All 17 Bernat “Fur Out” yarn colors are involved in this recall. The recalled yarn can be identified by UPC numbers beginning with “05735527” and ending with one of the following numbers:
1319 1326 1333 1340 1357 1364 1371 1388 1395
1401 1685 2583 2590 2606 2613 2620 2637
Sold by: Yarn and craft stores nationwide and in Canada since April 2004 for between $4 and $6 per ball.
Manufactured in: Turkey.
Remedy: Consumers should stop using Bernat “Fur Out” yarn and items made with Bernat “Fur Out” yarn immediately and contact the manufacturer for instructions on how to return the products and receive a full refund.
Consumer Contact: Contact Bernat Yarn at (800) 641-5634 between 8 a.m. and 5 p.m. Monday through Friday or visit the firm’s Web site at http://www.bernat.com
The U.S. Consumer Product Safety Commission announces the following recall in voluntary cooperation with the firm below. Consumers should stop using recalled products immediately unless otherwise instructed.
Name of Product: Bernat “Fur Out” yarn
Units: About 730,000 1.75-ounce balls of yarn
Manufacturer/Importer: Spin Rite LP of Ontario, Canada
Hazard: “Fur Out” yarn is flammable when used as the sole yarn in a garment. Garments constructed of “Fur Out” yarn are dangerously flammable when exposed to a flame, posing a burn risk to consumers.
Incidents/Injuries: Bernat has received two reports of garments made of the recalled yarn burning, with one person receiving singed eyebrows.
Description: All 17 Bernat “Fur Out” yarn colors are involved in this recall. The recalled yarn can be identified by UPC numbers beginning with “05735527” and ending with one of the following numbers:
1319 1326 1333 1340 1357 1364 1371 1388 1395
1401 1685 2583 2590 2606 2613 2620 2637
Sold by: Yarn and craft stores nationwide and in Canada since April 2004 for between $4 and $6 per ball.
Manufactured in: Turkey.
Remedy: Consumers should stop using Bernat “Fur Out” yarn and items made with Bernat “Fur Out” yarn immediately and contact the manufacturer for instructions on how to return the products and receive a full refund.
Consumer Contact: Contact Bernat Yarn at (800) 641-5634 between 8 a.m. and 5 p.m. Monday through Friday or visit the firm’s Web site at http://www.bernat.com
Tuesday, March 15, 2005
Mortgages To Stay Below 6.25% For 2005
Interest rates on mortgages continue to rise according to data from Freddie Mac, but are expected to remain at record low levels for the remainder of 2005.
The rate for a 30 year mortgage was 5.85% for the week ending March 10, 2005, but Freddie Mac spokesperson Amy Crews Cutts remained positive. "Even with rising mortgage rates over the last four weeks, 30-year fixed-rate mortgage rates remain an historical bargain," she said. "To date, contract rates for these mortgages have been below 6 percent for 31 weeks in a row, and we don't expect these rates will rise very much above 6-1/4 percent by year-end.
Interest rates on mortgages continue to rise according to data from Freddie Mac, but are expected to remain at record low levels for the remainder of 2005.
The rate for a 30 year mortgage was 5.85% for the week ending March 10, 2005, but Freddie Mac spokesperson Amy Crews Cutts remained positive. "Even with rising mortgage rates over the last four weeks, 30-year fixed-rate mortgage rates remain an historical bargain," she said. "To date, contract rates for these mortgages have been below 6 percent for 31 weeks in a row, and we don't expect these rates will rise very much above 6-1/4 percent by year-end.
Monday, March 14, 2005
FTC Bars Bogus Anti-Spyware Claims
An operation that offered consumers free spyware detection scans that “detected” spyware even if there was not any, to market anti-spyware software that does not work has been barred from making deceptive claims by a U. S. District court at the request of the FTC. The FTC will seek a permanent halt to the marketing scam and redress for consumers.
In papers filed with the court, the FTC alleges that Spyware Assassin and its affiliates used Web sites, e-mail, banner ads, and pop-ups to drive consumers to the Spyware Assassin Web site. After exposing consumers to a litany of the dire consequences of having spyware on their computers, the Web site warns, “you WILL eventually experience credit card and/identity theft and your computer will ultimately crash and cease working for good . . . It’s not a matter of if, but truly a matter of when.”
According to the FTC complaint, the Web site offers to scan consumers’ computers at no cost to determine whether they’re infected with spyware. One “scan”– the remote scan – is performed when consumers land on the Web site. The free “scan” displays a pop-up message that states, “URGENT ERROR ALERT: You have dangerous spyware virus infections on your computer. Click OK to install the latest free update to fix these errors. Immediate action is highly recommended before you continue!” The other “scan”– the “local scan” – is performed when consumers click to download the defendants’ software. Both scans warn consumers that they have spyware installed on their system.
The FTC charges that, “the defendants’ free remote scan is phony, and the defendants’ representations that they have detected spyware on the consumer’s computer are deceptive.” According to the agency, the pop-up that announces that consumers have spyware pops up automatically, even when the computer is clean and does not have spyware installed on it.
During the “local” scan consumers are warned that their computer is infected with spyware and a message flashes on the screen listing the names and file locations of the spyware on the system. Even when the computer is clean of all spyware, the defendants report that spyware has been detected, and the file folders the defendants claim contain the spyware are either empty or contain files that do not contain spyware, according to the agency.
The defendants claim that the software they sell for $29.95 will “remove all spyware programs and files” and will “prevent any future breaches.” According to the FTC, the “anti-spyware” software does not remove all or substantially all spyware, and the defendants deceptive claims violate the FTC Act, which bars deceptive claims.
The agency will seek a permanent ban on the deceptive claims and will ask the court to order consumer redress from defendants MaxTheater, Inc., a Washington corporation and Thomas L. Delanoy, its principal.
An operation that offered consumers free spyware detection scans that “detected” spyware even if there was not any, to market anti-spyware software that does not work has been barred from making deceptive claims by a U. S. District court at the request of the FTC. The FTC will seek a permanent halt to the marketing scam and redress for consumers.
In papers filed with the court, the FTC alleges that Spyware Assassin and its affiliates used Web sites, e-mail, banner ads, and pop-ups to drive consumers to the Spyware Assassin Web site. After exposing consumers to a litany of the dire consequences of having spyware on their computers, the Web site warns, “you WILL eventually experience credit card and/identity theft and your computer will ultimately crash and cease working for good . . . It’s not a matter of if, but truly a matter of when.”
According to the FTC complaint, the Web site offers to scan consumers’ computers at no cost to determine whether they’re infected with spyware. One “scan”– the remote scan – is performed when consumers land on the Web site. The free “scan” displays a pop-up message that states, “URGENT ERROR ALERT: You have dangerous spyware virus infections on your computer. Click OK to install the latest free update to fix these errors. Immediate action is highly recommended before you continue!” The other “scan”– the “local scan” – is performed when consumers click to download the defendants’ software. Both scans warn consumers that they have spyware installed on their system.
The FTC charges that, “the defendants’ free remote scan is phony, and the defendants’ representations that they have detected spyware on the consumer’s computer are deceptive.” According to the agency, the pop-up that announces that consumers have spyware pops up automatically, even when the computer is clean and does not have spyware installed on it.
During the “local” scan consumers are warned that their computer is infected with spyware and a message flashes on the screen listing the names and file locations of the spyware on the system. Even when the computer is clean of all spyware, the defendants report that spyware has been detected, and the file folders the defendants claim contain the spyware are either empty or contain files that do not contain spyware, according to the agency.
The defendants claim that the software they sell for $29.95 will “remove all spyware programs and files” and will “prevent any future breaches.” According to the FTC, the “anti-spyware” software does not remove all or substantially all spyware, and the defendants deceptive claims violate the FTC Act, which bars deceptive claims.
The agency will seek a permanent ban on the deceptive claims and will ask the court to order consumer redress from defendants MaxTheater, Inc., a Washington corporation and Thomas L. Delanoy, its principal.
Friday, March 11, 2005
CompUSA Liable For Overdue Rebates
The Federal Trade Commission issued an order today declaring that CompUSA was liable for thousands of rebates never paid by a manufacturer. The government agency found that the giant electronics retailer knew of delays at peripherals manufacturer Q.P.S, but did not stop advertising the rebates.
“When it comes to rebates, retailers must deliver on their promises,” said Lydia Parnes, Acting Director of the FTC’s Bureau of Consumer Protection. “The message to retailers is clear – the FTC is on the beat and will take action if you advertise manufacturers’ rebates when you know they aren’t honoring their promises.”
Q.P.S., which filed for bankruptcy in 2002, initially took between one and six months to pay rebates in 2001 before halting all payments. The company's principals, Priti and Rajeev Sharma, were prohibited by the FTC from engaging in similar practices in the future.
CompUSA, meanwhile, must pay all valid claims filed as well as revamp its rebate process. Among the changes ordered by the FTC are prohibitions against advertising certain manfacturer rebates and advertising the timing of when rebates would be paid.
The action is still not final. After publication in the Federal Register, the FTC will gather comments until April 9, 2005. The agency will then determine whether the action is final.
The Federal Trade Commission issued an order today declaring that CompUSA was liable for thousands of rebates never paid by a manufacturer. The government agency found that the giant electronics retailer knew of delays at peripherals manufacturer Q.P.S, but did not stop advertising the rebates.
“When it comes to rebates, retailers must deliver on their promises,” said Lydia Parnes, Acting Director of the FTC’s Bureau of Consumer Protection. “The message to retailers is clear – the FTC is on the beat and will take action if you advertise manufacturers’ rebates when you know they aren’t honoring their promises.”
Q.P.S., which filed for bankruptcy in 2002, initially took between one and six months to pay rebates in 2001 before halting all payments. The company's principals, Priti and Rajeev Sharma, were prohibited by the FTC from engaging in similar practices in the future.
CompUSA, meanwhile, must pay all valid claims filed as well as revamp its rebate process. Among the changes ordered by the FTC are prohibitions against advertising certain manfacturer rebates and advertising the timing of when rebates would be paid.
The action is still not final. After publication in the Federal Register, the FTC will gather comments until April 9, 2005. The agency will then determine whether the action is final.
Thursday, March 10, 2005
FCC Calls For Consumer Friendly Wireless Bills, Advocates Claim Action Isn't Enough
Responding to petitions from consumer advocacy groups, the Federal Communications Commission expanded its rules Thursday to create more consumer-friendly wireless bills. Those consumer agencies, however, quickly found fault with the actions.
The government agency now requires "billing descriptions be brief, clear, non-misleading and in plain language". The Commission also stated that bills may be considered misleading if discretionary line items are combined with tax or government-mandated fees. Finally, the agency is requesting comment on the distinction between government-mandated and other charges and whether those charges should appear in a different section of the bill.
In a statement issued after the FCC's action, Chairman Michael K. Powell said, "Wireless consumers deserve accurate, meaningful billing information in a format they can understand."
At least one consumer group, the National Association of State Utility Consumer Advocates, found fault with the FCC's actions. "This is a lose-lose for America's consumers," said David Bergmann of the Office of the Ohio's Consumer Council and chairman of the organization.
His statements were echoed by many other advocates, including Janee Briesemeister of Consumers Union, who claimed more than 18,000 consumers had commented on the issue and said, "No matter how the agency spins this decision -- it is anti-consumer."
Consumer groups had lobbied the FCC to ban charges that falsely implied they were made due to government regulations. The groups said that these fees are typically excluded when wireless companies advertise and promote their price plans.
Responding to petitions from consumer advocacy groups, the Federal Communications Commission expanded its rules Thursday to create more consumer-friendly wireless bills. Those consumer agencies, however, quickly found fault with the actions.
The government agency now requires "billing descriptions be brief, clear, non-misleading and in plain language". The Commission also stated that bills may be considered misleading if discretionary line items are combined with tax or government-mandated fees. Finally, the agency is requesting comment on the distinction between government-mandated and other charges and whether those charges should appear in a different section of the bill.
In a statement issued after the FCC's action, Chairman Michael K. Powell said, "Wireless consumers deserve accurate, meaningful billing information in a format they can understand."
At least one consumer group, the National Association of State Utility Consumer Advocates, found fault with the FCC's actions. "This is a lose-lose for America's consumers," said David Bergmann of the Office of the Ohio's Consumer Council and chairman of the organization.
His statements were echoed by many other advocates, including Janee Briesemeister of Consumers Union, who claimed more than 18,000 consumers had commented on the issue and said, "No matter how the agency spins this decision -- it is anti-consumer."
Consumer groups had lobbied the FCC to ban charges that falsely implied they were made due to government regulations. The groups said that these fees are typically excluded when wireless companies advertise and promote their price plans.
Tuesday, March 08, 2005
2.8 MIllion Metal Charms Recalled For High Levels Of Lead
In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Hirschberg Schutz & Co. Inc., of Warren, N.J., is voluntarily recalling about 2.8 million metal charms. The recalled metal charms contain high levels of lead, posing a serious risk of lead poisoning to young children.
CPSC received a report of a six-year-old girl who mouthed these charms worn on a homemade necklace. She developed elevated lead levels in her blood that may be related to the charms. Lead poisoning in children is associated with behavioral problems, learning disabilities, hearing problems and growth retardation.
The recalled metal charms were sold under the name “Charming Thoughts™.” Most of the charms are silver-colored with small silver loops. They were sold in packages of two to 12 pieces. The packages are marked “The Card Connection™,” “Charming Thoughts™” and “Hirschberg Schutz & Co. Inc.”
The metal charms are various shapes including small hearts, crowns, birds, picture frames, perfume bottles and a cross. Some of the metal charms have small blue, pink or yellow stones and are printed with words including “princess,” “congratulations,” “city girl,” “world traveler” and “life’s blessings.” “Insert photo here,” “cherish,” “love,” and “honor” are printed on the picture frame charms.
The metal charms were sold as decorations for place cards, greeting cards, collages, memory boxes, gift cards, scrapbooks, invitations and gift bags. The charms also can be attached to necklaces and bracelets.
The recalled metal charms were sold at Michaels Stores from July 2002 through February 2005, at Recollections stores from October 2004 through February 2005, and at Hancock Fabrics stores from January 2004 through January 2005 for between $3 to $4. All of the charms were manufactured in China.
Consumers should immediately take these metal charms away from children and contact Hirschberg Schutz & Co. at (800) 873-5506 anytime to receive a refund. Consumers also can e-mail the firm at charmsrecall@horizongroupusa.com for more information.
In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Hirschberg Schutz & Co. Inc., of Warren, N.J., is voluntarily recalling about 2.8 million metal charms. The recalled metal charms contain high levels of lead, posing a serious risk of lead poisoning to young children.
CPSC received a report of a six-year-old girl who mouthed these charms worn on a homemade necklace. She developed elevated lead levels in her blood that may be related to the charms. Lead poisoning in children is associated with behavioral problems, learning disabilities, hearing problems and growth retardation.
The recalled metal charms were sold under the name “Charming Thoughts™.” Most of the charms are silver-colored with small silver loops. They were sold in packages of two to 12 pieces. The packages are marked “The Card Connection™,” “Charming Thoughts™” and “Hirschberg Schutz & Co. Inc.”
The metal charms are various shapes including small hearts, crowns, birds, picture frames, perfume bottles and a cross. Some of the metal charms have small blue, pink or yellow stones and are printed with words including “princess,” “congratulations,” “city girl,” “world traveler” and “life’s blessings.” “Insert photo here,” “cherish,” “love,” and “honor” are printed on the picture frame charms.
The metal charms were sold as decorations for place cards, greeting cards, collages, memory boxes, gift cards, scrapbooks, invitations and gift bags. The charms also can be attached to necklaces and bracelets.
The recalled metal charms were sold at Michaels Stores from July 2002 through February 2005, at Recollections stores from October 2004 through February 2005, and at Hancock Fabrics stores from January 2004 through January 2005 for between $3 to $4. All of the charms were manufactured in China.
Consumers should immediately take these metal charms away from children and contact Hirschberg Schutz & Co. at (800) 873-5506 anytime to receive a refund. Consumers also can e-mail the firm at charmsrecall@horizongroupusa.com for more information.
Monday, March 07, 2005
Consumer Reports Lauds Japanese, Korean Vehicle Reliability
In its annual consumer survey, advocacy company and publisher Consumer Reports announced that "Japanese and Korean automakers once again produced the most trouble-free vehicles overall". The organization also noted that reliability for domestic cars and trucks improved, while reliability from European makes declined.
Overall, the survey of more than 800,000 consumers found that the 2004 Hyundai Sonata was the most reliable vehicle with only 2 incidents per 100 owners. Subaru led all brands with an average of 8 problems per 100 vehicles.
Surprisingly, luxury brands such as Lincoln and Mercedes Benz finished at or near the bottom with more than 20 incidents per 100 vehicles.
The full report is available in the April issue of Consumer Reports.
In its annual consumer survey, advocacy company and publisher Consumer Reports announced that "Japanese and Korean automakers once again produced the most trouble-free vehicles overall". The organization also noted that reliability for domestic cars and trucks improved, while reliability from European makes declined.
Overall, the survey of more than 800,000 consumers found that the 2004 Hyundai Sonata was the most reliable vehicle with only 2 incidents per 100 owners. Subaru led all brands with an average of 8 problems per 100 vehicles.
Surprisingly, luxury brands such as Lincoln and Mercedes Benz finished at or near the bottom with more than 20 incidents per 100 vehicles.
The full report is available in the April issue of Consumer Reports.
Friday, March 04, 2005
Company Can No Longer Block Internet Phone Calls, Says FCC
The Federal Communications Commission (FCC) reached an agreement with North Carolina telephone company Madison River, LLC that prohibits the firm from blocking Internet calls (known as VoIP calls) from its network. The company was able to use its technology to block traffic that competed with its regular service offering.
Madison River, which filed paperwork late in 2004 to launch a public stock offering, signed a "consent decree" and agreed to pay a $15,000 fine. Industry analysts believe this ruling is the first of its kind in the growing Internet telephone segment.
In a prepared statement released after the agreement was announced, FCC Commissioner Michael Powell said, "In my view, the surest way to preserve ‘Net Freedom’ is to handle these issues in an enforcement context where hypothetical worriers give way to concrete facts and—as we have shown today—real solutions,"
The Federal Communications Commission (FCC) reached an agreement with North Carolina telephone company Madison River, LLC that prohibits the firm from blocking Internet calls (known as VoIP calls) from its network. The company was able to use its technology to block traffic that competed with its regular service offering.
Madison River, which filed paperwork late in 2004 to launch a public stock offering, signed a "consent decree" and agreed to pay a $15,000 fine. Industry analysts believe this ruling is the first of its kind in the growing Internet telephone segment.
In a prepared statement released after the agreement was announced, FCC Commissioner Michael Powell said, "In my view, the surest way to preserve ‘Net Freedom’ is to handle these issues in an enforcement context where hypothetical worriers give way to concrete facts and—as we have shown today—real solutions,"
Thursday, March 03, 2005
Feds: US Airways Caused Christmas Delays, Comair Cleared
A report by the United States Department of Transportation found that the hundreds of thousands of airline passengers whose travel was disrupted during the Christmas holidays were partially the result of poor weather and partially due to poor customer service.
In a prepared statement, Secretary of Transportation Norman Y. Mineta exonerated Comair, saying, "The report makes clear that Comair’s troubles were caused by an ice storm that was greater than anticipated and limitations in its crew scheduling computer that it was unaware existed".
The Secretary had caustic comments for US Airways, however. In the same statement, Secretary Mineta said, "By contrast, US Airways’ troubles were the result of staffing shortfalls at its Philadelphia hub. The Inspector General found that while these shortfalls were anticipated by US Airways’ management, their plans to address them did not succeed. I am troubled that the report also indicates that US Airways lacked certain data concerning the disruptions, such as the number of lost baggage or whether persons with disabilities and unaccompanied minors were properly accommodated."
US Airways seemed to take the chiding in stride, releasing a statement that read in part, "We have worked very hard since that time to improve our staffing situation and implement other changes that will enhance our operations, including a major February schedule change that is having a clear and beneficial impact....[W]e trust that DOT officials recognize both our regret over the situation as well as the many initiatives we have taken to improve service to our customers
A report by the United States Department of Transportation found that the hundreds of thousands of airline passengers whose travel was disrupted during the Christmas holidays were partially the result of poor weather and partially due to poor customer service.
In a prepared statement, Secretary of Transportation Norman Y. Mineta exonerated Comair, saying, "The report makes clear that Comair’s troubles were caused by an ice storm that was greater than anticipated and limitations in its crew scheduling computer that it was unaware existed".
The Secretary had caustic comments for US Airways, however. In the same statement, Secretary Mineta said, "By contrast, US Airways’ troubles were the result of staffing shortfalls at its Philadelphia hub. The Inspector General found that while these shortfalls were anticipated by US Airways’ management, their plans to address them did not succeed. I am troubled that the report also indicates that US Airways lacked certain data concerning the disruptions, such as the number of lost baggage or whether persons with disabilities and unaccompanied minors were properly accommodated."
US Airways seemed to take the chiding in stride, releasing a statement that read in part, "We have worked very hard since that time to improve our staffing situation and implement other changes that will enhance our operations, including a major February schedule change that is having a clear and beneficial impact....[W]e trust that DOT officials recognize both our regret over the situation as well as the many initiatives we have taken to improve service to our customers
Wednesday, March 02, 2005
Nation's Largest Mall Group Gets Customer Friendly
Indianapolis based Simon Property Group, which owns or has an interest in 296 shopping properties throughout the United States, altered its Visa Giftcard policy this week after being pressured by New York Attorney General Eliot Spitzer.
The company reported that it entered into a "consent agreement" that will eliminate an "administrative fee" previously charged consumers if they did not use the card during a six monthl period.
The Attorney General's office filed a lawsuit against Simon in a Manhattan court last month. In addition to the administrative change, Simon agreed to pay $125,000 in penalties and costs.
Albany lawmakers were quick to praise the Attorney General's office, one of the highest-profile offices in the country with a reputation for tackling big names and winning big settlements.
Indianapolis based Simon Property Group, which owns or has an interest in 296 shopping properties throughout the United States, altered its Visa Giftcard policy this week after being pressured by New York Attorney General Eliot Spitzer.
The company reported that it entered into a "consent agreement" that will eliminate an "administrative fee" previously charged consumers if they did not use the card during a six monthl period.
The Attorney General's office filed a lawsuit against Simon in a Manhattan court last month. In addition to the administrative change, Simon agreed to pay $125,000 in penalties and costs.
Albany lawmakers were quick to praise the Attorney General's office, one of the highest-profile offices in the country with a reputation for tackling big names and winning big settlements.
Tuesday, March 01, 2005
Whirlpool Recalls 162,000 Dishwashers For Fire Hazard
Whirlpool and the Consumer Product Safety Commission have announced a recall of 162,000 dishwashers sold under the brand names of Kenmore and Whirlpool.
The affected models are:
If you have own one of these machines, stop using it immediately. You can obtain more information on the web at repair.whirlpool.com or by calling toll-free (866) 769-7260.
Whirlpool and the Consumer Product Safety Commission have announced a recall of 162,000 dishwashers sold under the brand names of Kenmore and Whirlpool.
The affected models are:
| Brand | Product | Model Number Begins With | Serial Number Range |
|---|---|---|---|
| Whirlpool® | Under-the-counter plastic tall tub dishwashers | DU1 DUL GU1 GU2 GU6 | FR2200000 to FR2499999 |
| Kenmore® | Under-the-counter plastic tall tub dishwashers | 665.143 665.160 665.163 665.170 665.173 | FR2200000 to FR4599999 |
If you have own one of these machines, stop using it immediately. You can obtain more information on the web at repair.whirlpool.com or by calling toll-free (866) 769-7260.
