Lead In Reebok Bracelet Linked To Child's Death, Immediate Recall of 300K Pieces







The United States Consumer Product Safety Commission and Reebok are recalling approximately 300,000 bracelets sold between 2004 and 2006 for $33-50. The bracelets were maunfactured in China and may contain a toxic level of lead, according to the government agency.

If your child has been given this braccelet, immediately take the bracelet from the child and call Reebok at (800) 994-6260 between 8 a.m. and 5 p.m. ET Monday through Friday

posted by Consumer Help Web Editorial Team at 1:00 PM | 0 comments
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  Keeping Your Health Coverage Intact

If you've recently lost your job and are worried about health benefits, check out your rights under COBRA.

COBRA is a federal law that enables you to keep coverage for yourself and your family after a job loss and other events, such as divorce. In some cases, you can continue coverage (at your own cost, of course) for up to 18 months.

Get details in the free Employee's Guide to Health Benefits Under COBRA from the Department of Labor. For your free copy, send your name and address to:

Federal Citizen Information Center
Dept. 624N
Pueblo, CO 81009

You can also call toll-free to 1 (888) 8 PUEBLO and ask for Item 624N.

posted by Consumer Help Web Editorial Team at 6:10 PM | 0 comments
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  Baldridge Awards Presented

Vice President Dick Cheney and Commerce Secretary Carlos Gutierrez presented six U.S. organizations with the Malcolm Baldrige National Quality Award, the nation’s highest honor for performance excellence and quality achievement.

“With innovative practices, a strong commitment to excellence and visionary leadership, the 2005 Baldrige Award recipients represent the best of American business, education and health care,” said Commerce Secretary Gutierrez. He added, “Since 1988, the Malcolm Baldrige National Quality Award program has gained world-wide recognition for the vital role it is playing in helping organizations achieve and sustain excellence.”

The 2005 Baldrige Award recipients are:

• Sunny Fresh Foods, Inc., Monticello, Minn. (manufacturing)
• DynMcDermott Petroleum Operations, New Orleans, La. (service)
• Park Place Lexus, Plano, Texas (small business)
• Richland College, Dallas, Texas (education);
• Jenks Public Schools, Jenks, Okla. (education)
• Bronson Methodist Hospital, Kalamazoo, Mich. (health care).
  

This is the first time that a community college, an automotive dealership and an oil industry business have received a Baldrige Award. Sunny Fresh Foods is a two-time Baldrige Award recipient; it received the award in the small business category in 1999. Baldrige Award recipients can reapply after five years.

Following a six-month evaluation process, including an on-site visit by a team of examiners, the 2005 Baldrige Award recipients were selected from among 64 applicants. An independent board of examiners evaluated them in seven areas: leadership; strategic planning; customer and market focus; measurement, analysis and knowledge management; human resource focus; process management; and results.

posted by Consumer Help Web Editorial Team at 1:08 PM | 0 comments
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  Card Systems Settles FTC Charges

In the largest known compromise of financial data to date, CardSystems Solutions, Inc. and its successor, Solidus Networks, Inc., doing business as Pay By Touch Solutions, have agreed to settle Federal Trade Commission charges that CardSystems' failure to take appropriate security measures to protect the sensitive information of tens of millions of consumers was an unfair practice that violated federal law. According to the FTC, the security breach resulted in millions of dollars in fraudulent purchases. The settlement will require CardSystems and Pay By Touch to implement a comprehensive information security program and obtain audits by an independent third-party security professional every other year for 20 years.

This is the ninth FTC case targeting companies whose security practices compromised consumers' confidential financial information, and the first the Commission has brought against a credit card processor.

“CardSystems kept information it had no reason to keep and then stored it in a way that put consumers' financial information at risk,” said Deborah Platt Majoras, Chairman of the FTC. “Any company that keeps sensitive consumer information must take steps to ensure that the data is held in a secure manner.”

According to the FTC, CardSystems provided merchants with products and services used in “authorization processing” – obtaining approval for credit and debit card purchases from the banks that issued the cards. Last year, it processed about 210 million card purchases, totaling more than $15 billion, for more than 119,000 small and mid-size merchants. In processing these transactions, CardSystems collected personal information from the magnetic strip of the card, including the card number, expiration date, and other data. CardSystems then stored this information on its computer network. Pay By Touch acquired CardSystems' assets in December 2005, and now processes transactions for the same merchants CardSystems served.

The FTC charged that CardSystems engaged in a number of practices that, taken together, failed to provide reasonable and appropriate security for sensitive consumer information. Specifically, the agency alleges that CardSystems:

* created unnecessary risks to the information by storing it;
* did not adequately assess the vulnerability of its computer network to commonly known or reasonably foreseeable attacks, including “Structured Query Language” injection attacks;
* did not implement simple, low-cost, and readily available defenses to such attacks;
* did not use strong passwords to prevent a hacker from gaining control over computers on its computer network and access to personal information stored on the network;
* did not use readily available security measures to limit access between computers on its network and between its computers and the Internet; and
* failed to employ sufficient measures to detect unauthorized access to personal information or to conduct security investigations.

According to the FTC's complaint, these practices compromised millions of credit and debit cards, and led to millions of dollars in fraudulent purchases. In addition, after the fraud was discovered, banks cancelled and re-issued thousands of credit cards, and consumers experienced inconvenience, worry, and time loss dealing with the affected cards.

The proposed settlement requires CardSystems and Pay By Touch to establish and maintain a comprehensive information security program that includes administrative, technical, and physical safeguards. The settlement also requires them to obtain – every two years for the next 20 years – an audit from a qualified, independent, third-party professional that confirms that its security program meets the standards of the order, and to comply with standard bookkeeping and record-keeping provisions.

This case is similar to prior FTC actions involving alleged failures to secure credit and debit card information. As in the prior cases, CardSystems faces potential liability in the millions of dollars under bank procedures and in private litigation for losses related to the breach.

Tags: Card Systems , Pay by Touch , privacy , data breach

posted by Consumer Help Web Editorial Team at 9:29 PM | 0 comments
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  Commercial Alert Pushing For Healthy School Food

Commercial Alert applauded new bi-partisan legislation in Congress to restrict the sale of junk food in public schools. The Child Nutrition Promotion and School Lunch Protection Act would expand the definition of food of minimal nutritional value, and empower the U.S. Department of Agriculture (USDA) to stop the sale of unhealthy foods everywhere in school not just in school cafeterias.

"Our children are suffering from an obesity epidemic, but federal laws governing the sale of food in schools are a junk food manufacturers dream,” said Gary Ruskin, executive director of Commercial Alert, a nonprofit corporate watchdog group. "It’s time for Congress to wake up and take the childhood obesity problem seriously."

The federal definition of food of minimal nutritional value is extremely narrow. It includes only sodas, water ices, chewing gum, and candies made mostly of sugar. Still worse, the USDA can only stop the sale of these foods during meal times in cafeterias—not in vending machines elsewhere in schools, or in school stores.

In June 2005, the USDA rejected Commercial Alert’s petition to enforce the competitive foods rule, which prohibits public schools from selling food of minimal nutritional value during mealtimes in school cafeterias.

In 2003, Commercial Alert, backed by dozens of endorsing organizations and prominent scholars, started a campaign in support of the Childhood Obesity Prevention Agenda, to help stop the childhood obesity epidemic by banning the marketing, distribution and sale of junk food in schools, and improving the quality of food provided to schoolchildren.

Last month, in response to recent findings by scientists at the U.S. Food and Drug Administration and elsewhere that certain soft drinks may contain amounts of the carcinogen benzene above the U.S. legal limit for drinking water, Commercial Alert and public health advocates sent letters to all U.S. chief state school officers, asking them to stop the sale and marketing of these soft drinks in public schools, until they can be proven safe and free from benzene contamination.

FDA , Commercial Alert, school food

posted by Consumer Help Web Editorial Team at 4:26 PM | 0 comments
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  Saab Recall Expected Next Month, 2001 9/3 Models Subject To Action

The National Highway Traffic Safety Administration (NHTSA) has announced that approximately 11,000 Saab 9/3s from the model year 2001 are being recalled because the fuel pump retaining tabs holding the fuel lines were damaged on some vehicles during production. The government agency says that this could the fuel lines to loosen from the pump and leak over time, creating a potential fire hazard.

Saab dealers are expected to install a bracket that will secure the lines even if the tabs break. Consumers can refer to Saab Recall No. 06033 when talking with their dealer to see if their vehicle is affected.

posted by Consumer Help Web Editorial Team at 6:19 PM | 0 comments
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  Earth Day and You: How To Change Your World

Earth Day is a time to celebrate gains we have made and create new visions to accelerate environmental progress. Earth Day is a time to unite around new actions. Earth Day and every day is a time to act to protect our planet.

Here is what you can do at home:

SAVE ENERGY

• Use the Energy Star program (www.energystar.gov) to find energy efficient products for your home. The right choices can save families about 30% ($400 a year) while reducing our emissions of greenhouse gases. Whether you are looking to replace old appliances, remodel, or buy a new house, the can help. ENERGY STAR is the government's backed symbol for energy efficiency. The ENERGY STAR label makes it easy to know which products to buy without sacrificing features, style or comfort that today's consumers expect.
• Turn off appliances and lights when you leave the room.
• Use the microwave to cook small meals. (It uses less power than an oven.)
• Purchase "Green Power" for your home's electricity. (Contact your power supplier to see where and if it is available.)
• Have leaky air conditioning and refrigeration systems repaired.
• Cut back on air conditioning and heating use if you can.
• Insulate your home, water heater and pipes. Keep in mind that every trip adds to air pollution. Learn more at It All Adds Up.
• Replace incandescent light bulbs with Natural Resources Conservation Service.

REDUCE/REUSE/RECYCLE

• Practice the three R's: first reduce how much you use, then reuse what you can, and then recycle the rest. Then, dispose of what's left in the most environmentally friendly way. Read the tips below and explore the Consumer's Handbook for Reducing Solid Waste

Reduce:

• Buy permanent items instead of disposables.
• Buy and use only what you need.
• Buy products with less packaging.
• Buy products that use less toxic chemicals.

Reuse:

• Repair items as much as possible.
• Use durable coffee mugs.
• Use cloth napkins or towels.
• Clean out juice bottles and use them for water.
• Use empty jars to hold leftover food.
• Reuse boxes.
• Purchase refillable pens and pencils.
• Participate in a paint collection and reuse program. For information on handling household solid waste, visit www.epa.gov/epaoswer/osw/citizens.htm.
• Donate extras to people you know or to charity instead of throwing them away.
• Reuse grocery bags as trash bags.

Recycle:

• Recycle paper (printer paper, newspapers, mail, etc.), plastic, glass bottles, cardboard, and aluminum cans. If your community doesn't collect at the curb, take them to a collection center.
• Recycle electronics. More information is at www.epa.gov/ecycling/index.htm or www.epa.gov/reg3wcmd/eCycling.htm
• Recycle used motor oil (read an EPA brochure in PDF format).
• Compost food scraps, grass and other yard clippings, and dead plants.
• Close the loop - buy recycled products and products that use recycled packaging. That's what makes recycling economically possible. Learn more at epa.gov/epaoswer/non-hw/muncpl/buyrec.htm

For more Help Web Earth Day tips, visit:

Beading Help Web blog

posted by Consumer Help Web Editorial Team at 1:25 PM | 0 comments
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  ISP Deliberately Sold Data, Says NY Lawsuit

New York Attorney General Eliot Spitzer has sued a company responsible for what is believed to be the largest deliberate breach of privacy in internet history.

The suit against web site operator Gratis Internet alleges that the company sold personal information obtained from millions of consumers under a strict promise of confidentiality.

"Unless checked now, companies that collect and sell information on consumers will continue to find ways to erode the basic standards that protect privacy in the internet age," Spitzer said.

Spitzer’s office began an investigation of companies involved in "data mining" or compilation and sale of marketing lists, early last year. The focus of the investigation quickly turned to Gratis, a Washington, D.C. -based company that owns and operates several web sites that provide consumers with ways to receive free products, generally through free trials of yet other products. These sites include or have included: FreeiPods.com; FreeCDs.com; FreeDVDs.com and FreeVideoGames.com.

From 2000 through 2004 Gratis made numerous explicit promises to the users of its web sites about protecting personal information. Among the promises the company made were:

"We will never give out, sell or lend your name or information to anyone";

"We will never lend, sell or give out for any reason your email address or personal information";

"We at [Gratis web site] respect your privacy and do not sell, rent or loan any personally identifiable information regarding our customers to any third party"; and

"Please note that we do not provide your E-mail address to our business partners."

Even on its sign-up pages, Gratis promised consumers that it "does not . . . sell/rent emails."

However, the Attorney General’s investigation confirmed that Gratis’s owners, Peter Martin and Robert Jewell, repeatedly violated these promises during 2004 and 2005 by selling access to lists of millions of Gratis’s customers to three independent email marketers. The marketers then sent hundreds of millions of email solicitations to those users, on behalf of their own customers. In each of these deals, Gratis wrongfully shared between one and seven million confidential user records. This is believed to be the largest deliberate breach of a privacy policy ever discovered by U.S. law enforcement.

Leading privacy advocates praised the lawsuit:

Marc Rotenberg, the Executive Director of the Electronic Privacy Information Center based in Washington D.C. said: "Without strong enforcement, privacy policies are meaningless. We support the efforts of the New York Attorney General to safeguard consumer privacy."

Beth Givens, Director of the Privacy Rights Clearinghouse, a consumer advocacy organization said: "Attorney General Spitzer continues to send a strong message to Gratis and others like it who would sell their email lists to spammers when their privacy policy says otherwise: Deception doesn't pay."

The suit also sets forth how, during the course of its investigation, Gratis repeatedly, but falsely, denied that such data sharing had even occurred. In one written response to the Attorney General, for instance, Gratis assured the Attorney General that "at all times during its existence . . . Gratis has never sold, rented, or lent email addresses or personal information of its users to any third-party and the company has always maintained control over and ownership of such information."
The Attorney General’s suit cites specific data sharing contracts, as well as testimony and other evidence provided by internet marketers that did business with Gratis. The suit, filed in New York State Supreme Court, seeks penalties and injunctive relief, against Gratis and its principals, under New York’s consumer fraud statutes

The lawsuit follows the Attorney General’s settlement, earlier this month, with e-mail marketer Datran Media, to whom Gratis had sold its user records.

Tags: Spitzer , privacy , Gratis

posted by Consumer Help Web Editorial Team at 6:50 PM | 0 comments
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  Identity Theft Scam Stopped, Phisher Posed As AOL and Paypal

One spammer down, many to go

In a joint law enforcement initiative, the Federal Trade Commission and the Department of Justice have brought two separate actions to shut down a spam operation that hijacked logos from AOL and Paypal to con hundreds of consumers into providing credit card and bank account numbers. At the request of the FTC, a U.S. District Court ordered the defendant to halt his identity theft scam, known as “phishing.” The Justice Department obtained a criminal conviction and the defendant is awaiting sentencing.

The scam worked like this: Consumers received e-mail that appeared to come from America Online or Paypal. The “from” line identified the sender as “billing center,” or “account department” and the subject line carried warnings such as “AOL Billing Error Please Read Enclosed Email,” and “Please Update Account Information Urgent!” The text of the message contained a warning that if the consumers did not respond to the e-mail, their account would be cancelled. Some of the spam said, “. . . we have to ask all our members for updated/correct billing information. Please be advised that this is mandatory. If we do not get your updated billing information, your account will be revoked and put under review and may be cancelled.” A hyperlink in the e-mail took consumers to what appeared to be the AOL Billing Center, with AOL’s logo and live links to real AOL Web pages. But the copy-cat Web page belonged to the defendant. The defendant asked consumers to provide information such as their names and mothers’ maiden names, billing addresses, Social Security numbers, dates of birth, bank account numbers, and bank routing numbers. The defendant also asked consumers to provide their AOL screen names and passwords.

The FTC alleges that the defendant used the information that consumers submitted to establish new credit card accounts and to make unauthorized changes – such as changing the address – on existing credit accounts. According to the FTC, he placed orders and made purchases using the unwitting consumers’ credit information.

The Paypal scheme worked in a similar way, with the defendant using the Paypal passwords that consumers provided to access consumers’ Paypal accounts and to purchase goods or services on their accounts.

The FTC charged that the acts and practices were deceptive and unfair, in violation of the FTC Act. In addition, the FTC alleged that the defendant’s practices violated provisions of the Gramm Leach-Bliley Act designed to protect the privacy of consumers’ sensitive financial information.

Defendant Zachary Keith Hill of Houston, Texas was named in the FTC complaint and the DOJ criminal information filed in United States District Court for the Eastern District of Virginia, Alexandria Division.

“As the Hill case demonstrates, the government can make a difference when agencies work together to crack down on Internet identity theft scams,” said Assistant Attorney General Christopher A. Wray of the Criminal Division of the U.S. Department of Justice. “The Department of Justice remains committed to working closely with the FTC to shut down these phishing operations and protect Internet users from thieves who seek to steal their valuable identity and financial information.”

“This investigation demonstrates the importance of interagency cooperation in clamping down on cyberscammers,” said Howard Beales, Director of the FTC Bureau of Consumer Protection. “The DOJ and FTC contributed complimentary skills and enforcement tools to catch up with this phishing scam, shut it down, and send a clear message that electronic identity theft won’t be tolerated.”

These cases were brought with the invaluable assistance of the Federal Bureau of Investigation’s Washington Field Office, and the United States Attorney for the Eastern District of Virginia’s Computer Hacking and Intellectual Property Squad.

The FTC has established a special Criminal Liaison Unit to expand criminal prosecution of consumer fraud. The Criminal Liaison Unit identifies enforcement agencies that may bring specific types of consumer fraud cases, educates criminal law enforcers in areas of FTC expertise, and coordinates training with criminal authorities to help the FTC prepare cases for referral and parallel prosecutions. Since 1996, dozens of FTC civil cases have resulted in concurrent or subsequent criminal prosecutions. The Criminal Liaison Unit will build on these existing FTC efforts to ensure appropriate criminal prosecution of consumer fraud.

Tags: phishing , spoofing , AOL , Paypal , FTC

posted by Consumer Help Web Editorial Team at 6:35 PM | 0 comments
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  Judge Halts Netflix Class-Action Settlement

San Francisco Superior Court Judge Thomas Mellon Jr. has halted the settlement reached by Netflix that would have allowed subscribers to upgrade their plan at no cost for a short time period.

According to media reports, the judge is seeking to reduce the amount paid to the plantiff's lawyers as well as change some of Netflix's disclosure requirements. The on-again/off-again settlement should find a home next month.

Meanwhile, consumer advocates continue to carefully watch the proceedings since the use of the word "unlimited" may soon have case law precedent based on Internet companies.

Tags: Netflix , class-action , throttling , consumer

posted by Consumer Help Web Editorial Team at 6:09 PM | 0 comments
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  IRS Contractors Can Sell Data: Philly Inquirer

Cheers to Jeff Gelles of The Philadelphia Inquirer who reports that the agency is considering allowing tax preparers to sell data about their clients.

"In a world of identity theft and Sarbanes-Oxley, this makes no sense," said Consumer Help Web President Joan Bounacos. "Why would anyone use a tax preparer who disclosed that they would sell the data? Only price or non-disclosure would typically change that and neither seems good for the consumer."

Gelles' article broke March 21 and has the IRS and the blogsphere in an uproar, to say nothing of consumer advocates. The IRS, which typically spits out 1-2 press releases a day, has been strangely quiet. The same cannot be said of consumer advocacy groups.

US-PIRG's Pennsylvania chapter and the Consumer Federation of America both testified April 4 at the IRS' final hearings on the subject. The IRS is reportedly considering changes based on an outpouring of public emotion, but perhaps most importantly, after lawmakers began questioning the agency's motives.

posted by Consumer Help Web Editorial Team at 5:10 PM | 0 comments
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  Curtain Falls on Two Bogus “Biz Opp” Actors Who Cost Consumers More Than $30 Million

Two persons have agreed to settle Federal Trade Commission charges for their roles in a fraudulent business opportunity scheme targeted in early 2005 as part of “Project Biz Opp Flop,” a crackdown on violations of the FTC’s Franchise Rule, which requires that prospective franchisees must be given a full disclosure document about business opportunities they are offered, and Section 5(a) of the FTC Act, which prohibits unfair and deceptive acts or practices affecting commerce.

Scott Douglas Rinaldo was involved with the wrongful practices of World Traders Association Inc., a Nevada corporation, and several other corporate and individual defendants, including International Merchandise Group and The Global Connection. Shannon Kirk Holden was involved with the wrongful practices of The Global Connection during part of the time it was in operation. According to the FTC complaint, the defendants violated the FTC Act and the Franchise Rule by making false and deceptive promises to franchise purchasers who paid as much as $8,000 in return for access to overstocked merchandise, expert training in the surplus goods industry, and substantial income.

Under a stipulated judgment and order for permanent injunction proposed by the FTC, Rinaldo is permanently barred from being involved in, and making misrepresentations concerning, any aspect of commerce in business ventures. Holden is permanently barred from making misrepresentations to consumers who might purchase business ventures, goods, or services.

Judgments representing the amounts of consumer injury attributed to the two defendants – more than $30.7 million for Rinaldo and more than $491,000 for Holden – will be suspended due to their inability to pay. The judgments will be imposed if they are found to have misrepresented their financial condition.

The Commission voted 5-0 on March 7 to authorize staff to file each of the two stipulated judgments and orders for permanent injunction, which occurred on March 16 in U.S. District Court for the Central District of California, Western Division.

Note: A stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of law violations. A stipulated final order requires approval by the court and has the force of law when signed by the judge.

Tags: FTC , scam , consumer

posted by Consumer Help Web Editorial Team at 8:03 AM | 0 comments
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  100,000 Magazine Subscribers Eligible For Refunds

A group of 23 states have announced that Time Inc. will pay consumers over $4 million in refunds related to how the company processed renewals. Time is the publisher of its flagship weekly news magazine, as well as People, Sports Illustrated and other magazines.

"As they seek to meet the demands of competition and the marketplace, companies cannot compromise fairness to consumers,” said California Attorney General Bill Lockyer. “Every consumer has a right to be fully informed about the products they buy, and a right to not be charged for products they never asked for and do not want. That’s what this case is about. We’re pleased Time has agreed to reform its practices and provide restitution to consumers billed for unwanted subscriptions.”

Aside from the $4.3 million in refunds, Time will pay the 23 states a total of $4.5 million to cover their investigation costs.

The settlement resolves the states’ investigation into Time’s marketing and billing practices related to automatic renewal offers, its general billing and collection procedures, and its invoice look-alike solicitations. The states launched their probe after receiving complaints from consumers that Time was billing them or charging their credit cards for unwanted magazine subscriptions.

The complaints started after Time initiated an automatic renewal program that required consumers to affirmatively cancel subscriptions if they did not want them. The change broke with Time’s previous practice of offering limited-term subscriptions that customers could renew, if they desired, at the end of the term. Time made the change without adequately informing its customers, which caused confusion and generated numerous complaints.

Other consumer complaints focused on solicitations Time mailed consumers that appeared to be invoices and which lacked conspicuous disclosures required by law. The states’ investigation found that these mail solicitations misled some consumers into paying for unwanted or unordered subscriptions.

In the 23 states, more than 108,000 customers will be eligible to receive restitution. Eligible customers include many of those who paid for magazine subscriptions that were automatically renewed between January 1998 and May 2004.

Within the next three months, Time will send state-approved refund letters and claim forms directly to consumers who may be eligible. The letters will explain the settlement and contain instructions on how to apply for refunds. Consumers should look for an envelope from Time that says “REFUND OFFER ENCLOSED.” There is no need for consumers to a state office or attorney to qualify or apply for a refund.

Aside from the monetary payments, Time agreed to adopt reforms of the practices targeted by the states’ investigation. Among the reforms, Time will:

● Clearly and conspicuously disclose to consumers all material terms for automatic subscription renewals. For the next five years, consumers will have the opportunity to affirmatively indicate whether they want to exercise the automatic renewal option. Before the end of the subscription period, Time will send customers written reminders of the automatic renewal, their right to cancel the subscription and the procedure for cancellation.

● Honor all requests to cancel subscriptions as soon as reasonably possible. If customers are charged for magazines they did not order, Time will refund the subscription price.

● Not mail to consumers subscription solicitations that resemble bills, invoices or statements of accounts due.

● Not submit the unpaid accounts of automatic renewal customers to third-party debt collectors.

Tags: Time , subscription , refund

posted by Consumer Help Web Editorial Team at 6:47 PM | 0 comments
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  Netflix Class Settlement Called "Gimmick", Delayed

A settlement in a class action suit between Netflix and millions of subscribers is in jeopardy because consumer and government advocates believe the settlement is more marketing ploy than compensation.

Under the proposed settlement, Netflix subscribers would be allowed to upgrade their membership to the next highest tier at no additional cost for a certain period of time, typically 30 days. At the end of that time, the consumer must proactively contact Netflix and downgrade their service or face being charged for the higher level of service in future months.

posted by Consumer Help Web Editorial Team at 12:25 PM | 0 comments
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  FTC: 'Debt Elimination Program' Fails to Deliver Guaranteed Lower Interest Rates

The Federal Trade Commission and the Washington State Attorney General have asked a federal judge to order Debt Solutions Inc. and three other telemarketers in Washington and Florida to stop charging consumers hundreds of dollars for a “debt elimination program” that offers a false promise of substantially reduced interest rates and thousands of dollars in savings.

The agencies jointly filed the action in U. S. District Court in Seattle, seeking an injunction against them and refund of monies paid for violations of Section 5(a) of the FTC Act, the FTC’s Telemarketing Sales Rule (TSR), and Washington’s Consumer Protection Act.

“The defendants’ so-called ‘debt elimination program’ was not the answer for consumers who found themselves in financial hot water,” said Lydia Parnes, Director of the FTC’s Bureau of Consumer Protection. “There are a variety of legitimate options to reduce debt, including more realistic budgeting, credit counseling from reputable organizations, debt consolidation programs, and, if need be, filing for bankruptcy. In every case, though, people should be wary of any business that claims it can negotiate substantially lower interest rates on credit cards and loans.”

According to the FTC and the State of Washington’s complaint, since at least 2002, Debt Solutions Inc., DSI Financial Inc., DSI Direct Inc., Pacific Consolidation Services Inc., Kenneth Schwartz, Jennifer Ruth Whalen, David C. Schwartz, and Greg Moses have telemarketed and sold what they call a debt elimination program by making unsolicited phone calls to consumers nationwide, and by marketing the program on several Internet Web sites, including www.debt2wealth.com and www.acceleratedfinancialinc.com. The complaint alleges that the defendants falsely represented to consumers that they would be assigned a financial consultant whose special relationships with creditors will enable the consultant to negotiate substantially lower interest rates, saving consumers thousands of dollars, reducing their monthly payments, and paying off their debts three to five times faster–all without higher monthly payments. In fact,according to the complaint, consumers who purchase the program typically do not have theirinterest rates lowered at all, and, if they do, the reductions are rarely more than one percentage point.

Consumers are promised a full refund if they do not save at least $2,500, but few consumers have received the guaranteed refund, according to the agencies’ complaint. Before buying the program for $399 to $629, the complaint alleges, consumers are not told that the promised savings may take decades to achieve, or that most of the savings will result from simply paying more money every month, not from reduced interest rates. The defendants also claim the program is endorsed by the Financial Standards Council in Canada and the Registered Financial Planners Institute of North America, but both claims are false, according to the complaint.

The FTC and the State of Washington’s complaint alleges that the defendants violated Section 5(a) of the FTC Act by falsely representing that purchasers will (1) save thousands of dollars in a short time; (2) have credit card and loan interest rates reduced substantially; (3) pay off their debt much faster without higher monthly payments; and (4) reduce their monthly credit card and loan payments. The complaint also alleges that they falsely represent that they have special relationships with credit card companies and lenders, and that their program is endorsed by the two organizations mentioned above. It also alleges that they misrepresented their money-back guarantee.

The complaint further alleges that the defendants violated the TSR and Washington state law by misrepresenting projected savings, failing to disclose the limits of their money-back guarantee, calling phone numbers listed on the Do Not Call Registry, failing to pay the required annual fee for access to DNC-listed numbers, and calling persons who had asked them to stop calling. The defendants also violated Washington state law by engaging in unfair or deceptive acts or practices and unfair methods of competition.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant actually has violated the law. The case will be decided by the court.

posted by Consumer Help Web Editorial Team at 12:16 PM | 0 comments
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  Trade Group Faults Big Companies For Promoting Adware

Large well-respected companies are helping to fund the virulent spread of unwanted and potentially harmful "adware" by paying for advertisements generated by those programs, according to a new report by the Center for Democracy & Technology.

In "Following the Money: How Advertising Dollars Encourage Nuisance and Harmful Adware and What Can be Done to Reverse the Trend," CDT details how -- through a complicated network of intermediaries -- major advertisers pay to have their products and services advertised though pop-ups and other ads generated by unwanted advertising software or "adware." The report dissects the financial relationships behind those arrangements and identifies several mainstream companies that advertise through one particularly unscrupulous adware distributor. An electronic copy of the report is available online at http://www.cdt.org/privacy/20060320adware.pdf.

"Knowingly or not, these companies are fueling the spread of unwanted programs that clog people's computers, threaten privacy and tarnish the Internet experience for millions," CDT Deputy Director Ari Schwartz said. "Because the adware financing model is willfully convoluted, many companies may not know where their advertising dollars are ending up. We're urging those advertisers to be more vigilant to ensure that they aren't unwittingly bankrolling one of the Internet's fastest-growing problems."

The report urges all companies that advertise online to adopt and enforce meaningful ad placement policies. Several organizations, including the Interactive Travel Services Association, Major League Baseball, Dell and Verizon, have established policies that prohibit or discourage the use of nuisance or harmful adware in serving ads, the report found. Those policies can serve as a template for other advertisers. By adopting such policies and making sure that all of their affiliates abide by them, advertisers can begin to dry up a major source of funding for unwanted adware.

Earlier this year, CDT filed a complaint with the Federal Trade Commission alleging that 180solutions, one of the world's largest adware distributors, had engaged in a pattern of unfair and deceptive trade practices. The complaint detailed how 180solutions and its affiliates had duped countless Internet users into downloading the company's advertising software. In "Following the Money," CDT sought to identify companies that were advertising through 180solutions, and to inquire about their ad placement policies. Two companies responded to CDT's requests by establishing ad placement policies, and five more said they already had policies in place.

Eleven others -- Altrec, Club Med Americas, GreetingCards.com, LetsTalk.com, NetZero, PeoplePC, PerfectMatch, ProFlowers, True.com, uBid and Waterfront Media -- did not respond to CDT's request for information about their ad placement policies.

CDT is committed to increasing its scrutiny of companies that support nuisance or harmful adware with their advertising dollars. FTC Commissioner John Leibowitz recently signaled that he would urge the commission would take a closer look at the adware market and name companies that did business with unscrupulous distributors.

"The time is now for companies to take a more active role in policing their own online advertising activity," Schwartz said. "Although unscrupulous adware companies bear the greatest blame for the spread of the unwanted programs, those programs wouldn't exist without advertising dollars to fund them. We need to cut that revenue stream off at the source."

posted by Consumer Help Web Editorial Team at 12:08 PM | 0 comments
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  Chrysler Wiper Recall Affects Quarter Million Vehicles

Chrysler Corporation has announced that some of its most popular vehicles, including the 2005 and 2006 Dodge Durango, Caravan minivans and Town & Country will be recalled because of a faulty winshield wiper motor that could cause the wipers to stop working.

The automaker said that no injuries or accidents had been attributed to the defect and that recalls would start soon.

posted by Consumer Help Web Editorial Team at 12:02 PM | 0 comments
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  Geico, Consumer Groups Square Off Over Criteria

Media reports in The Washington Post that have been picked up by other outlets accuse Geico of discriminating against drivers by basing their premium on occupation and education level.

The results were announced by the Consumer Federation of America (CFA), an advocacy organization that told the Post it entered rate quote requests into Geico's web site for drivers with similar characteristics and attributes except for education and occupation. Geico and other insurers defended its actions in the Post article written by consumer financial mavens Albert Crenshaw and Caroline Mayer, but the CFA is reportedly set to ask regulators to change Geico's practices.

posted by Consumer Help Web Editorial Team at 11:49 AM | 0 comments
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  Wireless Problems Declining, Says J.D. Power

The overall rate of customers experiencing a wireless call quality problem has declined for a second consecutive year, with reported problems per 100 calls (PP100) reaching the lowest level since the inaugural study in 2003, according to Volume 1 of the J.D. Power and Associates 2006 Wireless Call Quality Performance StudySM released in March.

The study, now in its fourth year, measures the number of problems experienced with wireless call quality on a semi-annual basis. Call quality is based on seven customer-reported problem areas that impact overall carrier performance. They are: dropped/disconnected calls; static/interference; connection on first try; voice distortion; no echoes; no immediate voice mail notification; and no immediate text message notification.

The study finds that the percentage of wireless calls with at least one problem has declined from 26 PP100 in 2005 to 24 PP100 in the 2006 study—an improvement of 8 percent. The number of wireless calls that involved a problem also declined by 15 percent when comparing the 2004 (30 PP100) and 2005 studies. A lower PP100 score is better, as it means fewer problems experienced with call quality.

In addition to the decline in overall call quality problems, considerable improvements have been made in the areas of dropped/disconnected calls and calls with voice distortion. The number of dropped/disconnected calls has decreased by 15 percent when compared to the 2005 study. The number of calls experiencing voice distortion, which occurs when voice patterns become inconsistent due to problems with digital frequency, has decreased by 25 percent when compared to 2005.

“It’s clear that wireless providers have made great strides in improving the quality of calls, especially in those areas that impact customer churn the most, such as calls that are dropped or disconnected,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. “With an increasingly competitive environment and an increase in the number of services used in conjunction with a cell phone, carriers that offer superior network quality will improve their likelihood of attracting new customers and will increase customer retention. In fact, improving network quality is a beneficial financial incentive for wireless carriers, as customers experiencing at least one call quality problem are three times more likely to indicate they ‘definitely will’ switch carriers in the future.”

The study also finds that overall call quality performance varies based on where a call is placed or received. Wireless calls within a local calling area have significantly lower PP100 ratings when compared to calls placed or received while roaming—27 PP100 and 55 PP100, respectively. Additionally, outdoor wireless calls typically experience less problems when compared to calls placed inside of buildings, particularly those made from home. “It is clear that carriers need to manage their network to reflect their specific customer’s usage patterns in order to provide the best possible call quality experience,” said Parsons.

T-Mobile and Verizon Wireless rank highest in five of the six U.S. regions (including one tie) included in the study. T-Mobile and Verizon Wireless both perform particularly well in the areas of initial connections, dropped/disconnected calls and voice distortion. U.S. Cellular is the only other carrier to rank highest in a region (North Central).

posted by Consumer Help Web Editorial Team at 8:56 AM | 0 comments
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  Movie Theaters Want To Jam Your Cell Phone

John Fithian probably didn't expect the explosive reaction the blogsphere has given him since he advocated in a speech last month that movie theaters receive permission to jam cell phone signals. Fithian is the director of the National Association of Theater Owners so his words carry more weight than those of the average multiplex manager.

Fithian reportedly told an audience of movie theater owners that the trade association plans to petition the Federal Communications Commission for permission to jam cell phone signals. Media reports, especially in the Los Angeles Times, quote the association executive as saying that rude theater patrons are one reason why movie attendance is down.

Our friends at Movie Help Web say Fithian forgot to mention faster-to-DVD releases, the time-shifting availability of DVRs and growing prominence of on-demand movie channels, to say nothing of a little company called Netflix.

posted by Consumer Help Web Editorial Team at 6:41 PM | 0 comments
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  NCMEC Leads Fight Against Child Porn - How You Can Help

Eighteen of the world’s most prominent financial institutions and Internet industry leaders have joined with the National Center for Missing & Exploited Children (NCMEC), and its sister organization, the International Centre for Missing & Exploited Children (ICMEC) in the fight against Internet child pornography. The goal is to eradicate commercial child pornography by 2008.

The new Financial Coalition Against Child Pornography includes leading banks, credit card companies, third party payment companies and Internet services companies. Founding members of the Coalition include America Online, American Express Company, Bank of America, Chase, Citigroup, Discover Financial Services LLC, e-gold, First Data Corporation, First National Bank of Omaha, MasterCard, Microsoft, North American Bancard, PayPal, First PREMIER Bank/PREMIER Bankcard, Standard Chartered Bank, Visa, Wells Fargo, and Yahoo! Inc.

The Coalition will work in collaboration with Child Focus of Belgium, the European Federation for Missing and Sexually Exploited Children, the International Association of Internet Hotlines (INHOPE), the U.S. Office of the Comptroller of the Currency, and law firm DLA Piper Rudnick Gray Cary.

Child pornography has become a multi-billion dollar commercial enterprise and is among the fastest growing businesses on the Internet. The Internet has enabled instant access to child pornography by thousands and possibly millions of individuals around the world. And the ability to use credit cards and other payment methods has made purchasing child pornography easy.
Senator Richard C. Shelby (R-AL), Chairman of the Senate Banking, Housing and Urban Affairs Committee, was the catalyst in bringing these industry leaders together to address the problem. In challenging them to join with NCMEC and ICMEC in this effort, Senator Shelby said, “If people were purchasing heroin or cocaine and using their credit cards, we would be outraged and would do something about it. This is worse.”

The exact number of child pornography web sites is difficult to determine. In 2001, the CyberTipline operated by NCMEC had received more than 24,400 reports of child pornography. By the beginning of 2006, that number had climbed to more than 340,000.
“Not only have we seen an increase in reports of Internet child pornography, but the victims are becoming younger and the images are becoming more graphic and violent,” said Ernie Allen, President and CEO of NCMEC and ICMEC, and Chairman of the Coalition. “To eliminate the commercial viability of child pornography, we must stop the flow of money. To do that, we need the involvement of the world’s leaders in the payments industry and the Internet. The founding members of the Financial Coalition Against Child Pornography are to be commended for joining this critical fight.”

If members of the public have knowledge of a child pornography web site they are encouraged to report it immediately to the CyberTipline managed by the National Center for Missing & Exploited Children (www.cybertipline.com or 1-800-843-5678). Citizens outside the United States can call the CyberTipline or can contact any number of hotlines around the world. To learn more about these hotlines, visit the website of the International Association of Internet Hotlines (INHOPE) at www.inhope.org.

posted by Consumer Help Web Editorial Team at 5:08 PM | 0 comments
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