Guidance Settles FTC Charges
Guidance Software Inc. has agreed to settle Federal Trade Commission charges that its failure to take reasonable security measures to protect sensitive customer data contradicted security promises made on its Web site and violated federal law. According to the FTC, Guidance’s data-security failure allowed hackers to access sensitive credit card information for thousands of consumers. The settlement will require the company to implement a comprehensive information-security program and obtain audits by an independent third-party security professional every other year for 10 years.
Guidance sells software and related training, materials, and services customers use to investigate and respond to computer breaches and other security incidents.
According to the FTC complaint, Guidance failed to implement simple, inexpensive and readily available security measures to protect consumers’ data. In contrast to claims about data security made on Guidance’s Web site, the company created unnecessary risks to credit card information by permanently storing it in clear readable text. In addition, the complaint alleges that Guidance failed to protect the information by:
* failing to assess adequately the vulnerability of its network to commonly known or reasonably foreseeable Web-based attacks, such as structured query language injection attacks;
* failing to implement simple, low-cost, and readily available defenses to such attacks;
* storing in clear, readable text network administrator credentials, such as user name and password, that facilitated access to credit card information stored on the network;
* failing to use readily available security measures to monitor and limit access from the corporate network to the Internet; and
* failing to employ measures to detect unauthorized access to consumers’ credit card information.
The settlement bars misrepresentations about security measures in the future and requires Guidance to establish and maintain a comprehensive information-security program that includes administrative, technical, and physical safeguards. The settlement also requires Guidance to obtain, every two years for the next 10 years, an audit from a qualified, independent, third-party professional to assure that its security program meets the standards of the order. The company also will be subject to standard record keeping and reporting provisions to allow the FTC to monitor compliance.
Monday, November 20, 2006
FDA Recalls Baby and Wet Wipes
Rockline Industries announced that it has initiated a voluntary nationwide product withdrawal to the retail level of certain lots of its store brand wet wipes. The voluntary withdrawal is a result of routine product testing that detected the presence of a micro-organism known as Burkholderia cepacia (B. cepacia).
Rockline Industries announced that it has initiated a voluntary nationwide product withdrawal to the retail level of certain lots of its store brand wet wipes. The voluntary withdrawal is a result of routine product testing that detected the presence of a micro-organism known as Burkholderia cepacia (B. cepacia).
According to the Centers for Disease Control (CDC), B. cepacia is a bacteria that can be found in soil and water. The CDC says "B. cepacia poses little medical risk to healthy people. However, people who have certain health problems like weakened immune systems or chronic lung diseases, particularly cystic fibrosis (CF), may be more susceptible to infections with B. cepacia. B. cepacia is a known cause of infections in hospitalized patients." Further information on B. cepacia can be found on the CDC website at: (http://www.cdc.gov/ncidod/dhqp/id_BcepaciaFS.html).
"The well being of those who use our products is our top priority," said Alan Perlman, Rockline spokesman. "We are voluntarily removing this product from stores to maintain the highest possible standards of quality for our retail customers and their consumers. While the probability of a health risk is remote, we want to take every precaution. Consumers will receive a full refund or replacement."
There have been no reports of illness related to this incident, according to Perlman. Only a small portion of the company's wet wipes products are affected. Those products that are affected will likely have a bad odor described as sour milk.
The company encourages consumers who have purchased wet wipes between Aug. 21 and Nov. 17, 2006 to check the lot code of the product. The lot code, which is not the same as a bar code, is typically found on the back label or side panel of the package and includes the word "Lot" followed by a series of numbers. Affected products have lot codes with the first 5 digits beginning at 06233 and ending at 06253. These numbers will be followed by either 0220197 or 0220693. No other lot codes or products are affected. Perlman recommended discontinuing use of the product and returning the package to the place of purchase for a full refund or replacement.
Sunday, November 19, 2006
50,000 Espresso Makers Recalled
The United States Consumer Product Safety Commission and Atico International have announced a recall of more than 50,000 espresso makers sold under the name Espresso Express.
The government agency says that the machine's heating element can separate from the base and cause burns or other injuries. Atico reports that they have been notified of 42 such incidents, including 9 burn injuries and 7 consumers who were struck by machine parts.
Consumers were cautioned to immediately cease using the machines and contact Atico at (877) 546-4835 for instructions.
The United States Consumer Product Safety Commission and Atico International have announced a recall of more than 50,000 espresso makers sold under the name Espresso Express.
The government agency says that the machine's heating element can separate from the base and cause burns or other injuries. Atico reports that they have been notified of 42 such incidents, including 9 burn injuries and 7 consumers who were struck by machine parts.
Consumers were cautioned to immediately cease using the machines and contact Atico at (877) 546-4835 for instructions.
Rent-A-Center Settles California Lawsuit
California Attorney General Bill Lockyer announced the nation’s largest rent-to-own business, Rent-A-Center, Inc. (RAC), will pay more than $7 million in restitution to thousands of California customers under a settlement, finalized this month by the San Francisco County Superior Court, that resolves a consumer protection lawsuit brought by Lockyer.
“Our economic system is not driven solely by the profit motive,” said Lockyer. “To function properly, businesses must deal fairly and honestly with consumers. Rent-A-Center flouted this fundamental principle, violated state law and harmed consumers. This settlement not only will provide restitution to thousands of victims, but also ensure the company reforms its business practices to conform with the law.”
The settlement resolves a lawsuit, filed simultaneously with the settlement, that alleged RAC failed to disclose the true cost of its rent-to-own program to California consumers. Additionally, RAC engaged in deceptive advertising in marketing and selling memberships in its “Preferred Customer Club (Club),” according to the complaint.
The settlement requires RAC to make full or partial refunds to thousands of California consumers who bought Club memberships, or who rented or purchased electronic merchandise, appliances, or computer systems from RAC on or after November 1, 2004. Lockyer’s office estimated the restitution will total more than $7 million. RAC also will pay $750,000 in civil penalties.
RAC rents and sells new and used household merchandise, including televisions, computers, furniture and appliances. Customers typically sign a self-renewing weekly or monthly lease for the rented merchandise. The lease agreements include an option to purchase, either by continuing to pay rent for a specified period of time, or by early payment of some specified portion of the remaining lease payments.
Lockyer’s complaint alleged RAC, in violation of state law, engaged in unfair competition and illegally misrepresented the cash price of certain merchandise.
The complaint also alleged RAC misrepresented the benefits and terms of its Club membership in numerous ways. The misrepresentations included: falsely claiming to provide an extended warranty, insurance, or service contract for rental merchandise; and telling consumers they would receive up to $500 in grocery discounts, without adequately disclosing that to obtain the maximum discounts consumers had to pay RAC more than $100 in additional fees.
Aside from the monetary payments, the settlement imposes reforms of RAC’s business practices. These “injunctive relief” provisions include:
Requiring RAC to comply with California’s Karnette Rental-Purchase Act in all rent-to-own transactions; prohibiting RAC from charging prices that exceed the maximum amount allowed by law; and requiring RAC to clearly disclose all terms of its Club membership, including any costs, benefits, services, features, discounts and cancellation rights.
In addition to the $7 million in restitution, RAC will deposit more than $7 million into a special consumer protection trust fund. The additional $7 million comes from a prior, private lawsuit brought against RAC, and represents restitution funds left undistributed to consumers in that case. The $7 million deposited into the special fund will be used solely to enforce consumer protection laws, and to protect California consumers in the areas of consumer lending and finance, debt collection, and the sale and lease of consumer goods or services.
RAC is based in Plano, Texas and operates 2,880 stores in all 50 states. In 2005, the company’s revenues totaled $2.34 billion.
California Attorney General Bill Lockyer announced the nation’s largest rent-to-own business, Rent-A-Center, Inc. (RAC), will pay more than $7 million in restitution to thousands of California customers under a settlement, finalized this month by the San Francisco County Superior Court, that resolves a consumer protection lawsuit brought by Lockyer.
“Our economic system is not driven solely by the profit motive,” said Lockyer. “To function properly, businesses must deal fairly and honestly with consumers. Rent-A-Center flouted this fundamental principle, violated state law and harmed consumers. This settlement not only will provide restitution to thousands of victims, but also ensure the company reforms its business practices to conform with the law.”
The settlement resolves a lawsuit, filed simultaneously with the settlement, that alleged RAC failed to disclose the true cost of its rent-to-own program to California consumers. Additionally, RAC engaged in deceptive advertising in marketing and selling memberships in its “Preferred Customer Club (Club),” according to the complaint.
The settlement requires RAC to make full or partial refunds to thousands of California consumers who bought Club memberships, or who rented or purchased electronic merchandise, appliances, or computer systems from RAC on or after November 1, 2004. Lockyer’s office estimated the restitution will total more than $7 million. RAC also will pay $750,000 in civil penalties.
RAC rents and sells new and used household merchandise, including televisions, computers, furniture and appliances. Customers typically sign a self-renewing weekly or monthly lease for the rented merchandise. The lease agreements include an option to purchase, either by continuing to pay rent for a specified period of time, or by early payment of some specified portion of the remaining lease payments.
Lockyer’s complaint alleged RAC, in violation of state law, engaged in unfair competition and illegally misrepresented the cash price of certain merchandise.
The complaint also alleged RAC misrepresented the benefits and terms of its Club membership in numerous ways. The misrepresentations included: falsely claiming to provide an extended warranty, insurance, or service contract for rental merchandise; and telling consumers they would receive up to $500 in grocery discounts, without adequately disclosing that to obtain the maximum discounts consumers had to pay RAC more than $100 in additional fees.
Aside from the monetary payments, the settlement imposes reforms of RAC’s business practices. These “injunctive relief” provisions include:
Requiring RAC to comply with California’s Karnette Rental-Purchase Act in all rent-to-own transactions; prohibiting RAC from charging prices that exceed the maximum amount allowed by law; and requiring RAC to clearly disclose all terms of its Club membership, including any costs, benefits, services, features, discounts and cancellation rights.
In addition to the $7 million in restitution, RAC will deposit more than $7 million into a special consumer protection trust fund. The additional $7 million comes from a prior, private lawsuit brought against RAC, and represents restitution funds left undistributed to consumers in that case. The $7 million deposited into the special fund will be used solely to enforce consumer protection laws, and to protect California consumers in the areas of consumer lending and finance, debt collection, and the sale and lease of consumer goods or services.
RAC is based in Plano, Texas and operates 2,880 stores in all 50 states. In 2005, the company’s revenues totaled $2.34 billion.
Sunday, November 05, 2006
EPA Shows Consumers How To Save Money This Winter
The average American family spends $1,900 a year on energy bills, much of which goes to heating and cooling our homes. Consumers can save as much as 20 percent annually on total energy costs – and reduce their environmental impact – by following four simple recommendations from the government's Energy Star program.
These four steps will help you "H.E.A.T" smartly while reducing home energy consumption and environmental impact this winter:
* Home Sealing. Seal air leaks and add insulation – paying special attention to your attic and basement, where the biggest gaps and cracks are often found. This will keep warm air inside where it belongs and help your equipment perform more efficiently.
* Equipment Maintenance. Dirt and neglect are the number one causes of system failure. Get a check-up of your heating system to make sure it's performing efficiently and safely. Clean or replace your system's air filter to help lower energy bills and maintain better indoor air quality.
* Ask for Energy Star. Look for the Energy Star label when purchasing products. If just one in 10 households bought Energy Star qualified heating and cooling products, the change would keep 18 billion pounds of greenhouse gas emissions out of our air.
* Thermostat Use. Install a programmable thermostat to save energy during times when you're home or away. When properly used, a programmable thermostat can save as much as $150 a year in energy costs.
There is also an easy way for businesses and other organizations to save 10 percent or more on their energy bills this winter: turn down the heat. Many businesses operate their heating systems 24 hours a day, even when no one is using the facility. If businesses cut back just one hour of operation out of every 12, their energy savings could equal about eight percent. If every business in the United States saved 10 percent on their energy bills, Americans would save about $10 billion and reduce greenhouse gas emissions equivalent to those from 15 million vehicles.
The average American family spends $1,900 a year on energy bills, much of which goes to heating and cooling our homes. Consumers can save as much as 20 percent annually on total energy costs – and reduce their environmental impact – by following four simple recommendations from the government's Energy Star program.
These four steps will help you "H.E.A.T" smartly while reducing home energy consumption and environmental impact this winter:
* Home Sealing. Seal air leaks and add insulation – paying special attention to your attic and basement, where the biggest gaps and cracks are often found. This will keep warm air inside where it belongs and help your equipment perform more efficiently.
* Equipment Maintenance. Dirt and neglect are the number one causes of system failure. Get a check-up of your heating system to make sure it's performing efficiently and safely. Clean or replace your system's air filter to help lower energy bills and maintain better indoor air quality.
* Ask for Energy Star. Look for the Energy Star label when purchasing products. If just one in 10 households bought Energy Star qualified heating and cooling products, the change would keep 18 billion pounds of greenhouse gas emissions out of our air.
* Thermostat Use. Install a programmable thermostat to save energy during times when you're home or away. When properly used, a programmable thermostat can save as much as $150 a year in energy costs.
There is also an easy way for businesses and other organizations to save 10 percent or more on their energy bills this winter: turn down the heat. Many businesses operate their heating systems 24 hours a day, even when no one is using the facility. If businesses cut back just one hour of operation out of every 12, their energy savings could equal about eight percent. If every business in the United States saved 10 percent on their energy bills, Americans would save about $10 billion and reduce greenhouse gas emissions equivalent to those from 15 million vehicles.
Mazda and Ford Fires Probed
The National Highway Traffic Safety Administration has launched an investigation of Fords and Mazdas from the 2001 through 2003 model years. There have been 8 fires reported in these vehicles, as well as two other incidents.
The vehicles being investigated are the Ford Escape and Mazda Tribute. Thus far, the Escape, rather than its Tribute twin, have had the major problems reported. The result of the investigation could result in a recall or be found to be isolated coincidences.
The National Highway Traffic Safety Administration has launched an investigation of Fords and Mazdas from the 2001 through 2003 model years. There have been 8 fires reported in these vehicles, as well as two other incidents.
The vehicles being investigated are the Ford Escape and Mazda Tribute. Thus far, the Escape, rather than its Tribute twin, have had the major problems reported. The result of the investigation could result in a recall or be found to be isolated coincidences.
