Consumer Help Web: February 2007

790,000 Volkswagens Recalled

Volkswagen and the National Highway Traffic Safety Administration are recalling nearly 800,000 vehicles, dating back to model year 1999, because the brake lights might not function properly. A similar recall occurred in Europe last year and brings the total number of vehicles recalled over one million.

The company said that dealers would repair the problem now, but it would be at least one month before notifications were sent to customers, prompting them to visit a dealership to have the car repaired.

Labels: recall, Volkswagen

Washington Attorney General To Battle Internet Scams

Washington consumers filed 18,354 complaints with the Attorney General’s Office in 2006. Consumers reported fewer complaints about online auctions while communications companies and retailers, which have held the No. 1 and No. 2 spots for at least the last six years, continued to top the list.

The Attorney General’s Consumer Protection Division released its annual Top 20 list of consumer complaint categories this month. At the same time, Attorney General Rob McKenna acknowledged the division’s work in recovering $12.5 million for consumers through litigation, complaint mediation, and the Lemon Law program during the 2005-2006 fiscal year.

Online auctions slipped in the rankings from No. 6 to No. 19. Consumers reported 319 complaints about online auctions last year, compared to 774 in 2005 – the first year in which data was available.

Conversely, consumer complaints concerning electronic shopping shot up from No. 9 in 2005, when 532 complaints were reported, to No. 5 last year, when 819 were reported. The category held the No. 3 spot in 2004 and 2003.

Consumer Protection Division staff said the data seems to suggest that more people are shopping online, but the online auction frenzy is waning. A longer period of time is needed to positively identify trends, however; and some of the difference can be attributed to how complaints were categorized. The Attorney General’s Office also noted that complaints about online auction fraud outnumber all other issues reported by Washington state consumers last year to the FBI’s Internet Crime Complaint Center.

“Complaints received by our office suggest that consumers are becoming more careful about bidding for merchandise in online auctions,” McKenna said, “but risk is still there. The Internet is ripe for fraud and some consumers are blindly shopping on sites they are not familiar with. Shoppers should only visit reputable sites in order to ensure trouble-free transactions and reduce the likelihood of becoming victims of identity theft.”

“Last year, the Attorney General’s Office ramped up our enforcement efforts in a number of important areas including fighting high-tech fraud,” McKenna added. “We started the year by filing our first case under Washington’s Computer Spyware Act and ended the year by settling for $1 million. We’ve since filed four other cases under the anti-spyware statute.”

Also in 2006, the Consumer Protection Division:

* Settled its first federal anti-spam law with two companies accused of blanketing the Seattle School District and nonprofit organizations with junk e-mails.
* Reached a $325 million multi-state settlement with Ameriquest Mortgage Company concerning predatory lending allegations.
* Settled an important case in the area of consumer health and fitness with the operators of LA Weight Loss diet centers. The substantial increase in consumer complaints about health and diet clubs can be attributed to this settlement, as consumers were encouraged to file complaints with the Attorney General’s Office in order to be eligible for refunds.

The office also expanded its outreach efforts:

* Consumer protection staff made 195 presentations to consumer groups in 2006, reaching more than 13,375 attendees. Identity theft was the most frequently requested topic.
* McKenna created LEGIT, Washington’s Law Enforcement Group against Identity Theft, last year. The group is working on several initiatives to reduce identity theft.
* McKenna also convened two statewide Latino Consumer Education Conferences, bringing together expert consumer advocates and a diverse group of participants with a shared goal of helping protect Washington’s Latino consumers from fraud. Following that success, Norma Chavez, of the Consumer Protection Division, recently conducted two workshops in Spanish in South Seattle in conjunction with National Consumer Protection Week.
* The Attorney General’s Office, AARP, Microsoft and the Federal Trade Commission teamed up in 2006 to present a Cyber Safety Campaign to educate the public about online hazards such as phishing scams, viruses and spyware.

The Consumer Protection Division is focusing its enforcement efforts on ten key areas considered the most critical to consumers: Internet commerce; privacy and identity theft; senior fraud; automobile sales and the Lemon Law; credit and financial industries; health and drugs; telecommunications issues; charitable solicitations; emergency home repair contractors and emerging marketplace issues.

Top 20 Complaint Categories for 2006

Rank	Industry	Total Complaints	Percent of Total Complaints	2005 Rank	2005 Total Complaints
1	Communications	1,468	8.00%	1	1,680
2	Retail Sales	1,398	7.62%	2	1,318
3	Collections	1,307	7.12%	3	1,270
4	Auto Sales	934	5.09%	4	1,017
5	Electronic Shopping	819	4.46%	9	532
6	Contractors	818	4.46%	5	844
7	Health & Diet Clubs	785	4.28%	20	199
8	Books/Magazines & Directory Publishers	653	3.56%	8	596
9	Credit Card Issuers	584	3.18%	7	664
10	Auto Repair	486	2.65%	10	522
11	Health Care	454	2.47%	12	399
12	Internet Service Providers	443	2.41%	11	409
13	Consumer Lending & Transfer Agents	420	2.29%	14	317
14	Commercial Banking	398	2.17%	11	409
15	Telemarketing	392	2.14%	15	288
16	Cable Networks & Program Distribution	376	2.05%	18	246
17	Insurance	339	1.85%	16	287
18	Mortgage Lending	324	1.77%	19	229
19	Online Auctions	319	1.74%	6	774
20	Travel	318	1.73%	13	320

Labels: complaint

Carfax Study Shows Number of Flood Damaged Vehicles Doubled

A new study by Carfax shows that waves of flood damaged cars are washing up in areas all across the country. Over the last five years, the number of waterlogged wrecks revealed by Carfax Vehicle History Reports has doubled nationwide. Furthermore, massive increases have occurred in numerous states. Individual state results can be found in the table below.

“Our data shows a clear pattern of growth for those states within close proximity to the Gulf Coast or that have large populations and sprawling urban areas,” said Larry Gamache, communications director at Carfax. “Flooded cars are indeed on the move and consumers everywhere are at risk. However, using the information gathered in our database, and new resources like Carfax Xpert, used car shoppers can uncover some of the nasty secrets a car may be hiding.”

Water can fatally damage a car’s most important features – like the electrical and safety systems – causing airbags and antilock brakes to malfunction and effectively turning the car into a ticking time bomb. Under the Carfax Buyback Guarantee, cars purchased with Carfax Vehicle History Reports that do not contain DMV-reported incidents (salvage, flood damage, lemon, odometer problems) may be eligible to be bought back from Carfax.

With used car sales expected to top 44 million this year, consumers should be on high alert for signs of hidden damage and potential fraud.

“In the aftermath of Hurricane Katrina, an unprecedented effort was made by the auto industry to identify, process and report these vehicles, as well as warn consumers about the dangers of flooded cars,” added Gamache. “We are ever-vigilant in making sure our customers have the information they need to protect themselves. We urge anyone buying a used car to get a Carfax Vehicle History Report that qualifies for the Carfax Buyback Guarantee and have a mechanic thoroughly inspect the vehicle prior to purchase.”

Flood Damage Growth By State (2002 – 2006)

AL– 374%

DE– 112%

KS– 151%

MN– 173%

NH– 30%

OR– 57%

UT– 7%

AR– 122%

FL– 96%

KY– 102%

MO– 170%

NJ– 46%

PA– 161%

VA– 189%

AZ– 84%

GA– 159%

LA– 343%

MS– 633%

NM– 27%

RI– 40%

VT– 39%

CA– 25%

IA– 28%

MA– 26%

MT– 172%

NV– (-4%)

SC– 63%

WA– 47%

CO– 77%

ID– 32%

MD– 136%

NC– 47%

NY– 35%

SD– 86%

WI– 108%

CT– 6%

IL– 23%

ME– 127%

ND– 131%

OH– 99%

TN– 52%

WV– 44%

DC– 8%

IN– 62%

MI– 162%

NE– (-12%)

OK– 231%

TX– 68%

WY– 54%

*excludes Alaska and Hawaii

Labels: carfax, vehicle

Toy Rabbit Recall - Seasonal Alert For Child Safety

The United States Consumer Product Safety Commission and Fisher-Price have combined to announce a voluntary recall of 500,000 "Laugh and Learn Bunny Toys" because of a choking hazard.

The government agency reported that no injuries had occurred yet, but the toy company reacted quickly after learning that the nose could detach and pose a choking hazard.

This recall involves the Laugh and Learn Learning Bunny that measures about 10-inches tall. The yellow bunny with one green and one orange ear has musical and counting sound effects. The words, "Laugh and Learn" are printed on the bunny's shirt. Product numbers involved in the recall are: K0468, K2960, K2961, K2962, K2963, K2964, K2965, K3440, K6898, K7884, L0327, and K5862. The product numbers are located on the fabric tag sewn to the body of the bunny. Only bunnies with three dimensional pompom noses are included in this recall. Bunnies with flat or embroidered noses are not subject to this recall.

Again to its credit, the company has asked consumers to take the toy from a child and contact Fisher-Price to arrange a replacement toy of the consumer's choice. That is a classy way to end what could have been public relations nightmare.

For additional information, contact Fisher-Price at (866) 447-5003 anytime.

Labels: Fisher-Price, recall

TJX Companies Report Data Breach - Fraud Alert

TJX, which owns retailers TJ Maxx, Marshalls, Home Goods and AJ Wright, has reported a data breach and says that transaction data from 2003 and 2006 was stolen.

"Unfortunately, the public is becoming used to data breaches," said Consumer Help Web President Joan Bounacos. "This one is more serious than a company simply missing data," she added. "The company admits that the data was stolen, yet strangely has not offered free credit monitoring to its customers for that time."

TJX has established a toll free customer help line. Callers from the United States may reach the help line at (866) 484-6978.

Labels: identity theft

Live Customer Service Scores Better Finds Power Study

Customer service issues that are handled by a computer automated response system (ARS) on the telephone generate significantly lower customer care ratings when compared with issues handled by a live representative, according to the J.D. Power and Associates 2007 Wireless Customer Care Performance StudySM —Volume 1.

Now in its fifth year, the semi-annual study provides a detailed report card on wireless provider customer care performance based on customer experiences with three point-of-contact methods: telephone calls with a service representative and/or automated response system (ARS); visits to a retail wireless store; and online Internet connection. Within each contact method, processing issues such as problem resolution efficiency and hold-time duration are also measured.

Overall, customers who speak with a service representative on the telephone provide an average index score of 127 points, which is significantly higher than the industry average of 98 points. However, customers contacting their carrier with a problem or inquiring through an ARS system rate their experiences significantly lower, averaging 92 index points. The index score drops even further (to 73 points) for contacts made over the Internet.

"One of the main factors contributing to this performance disparity is the quality of the response that is given," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "A service representative—either over the phone or in person—has the ability to answer customer questions and clarify answers. This flexibility is very limited in both ARS and Internet contact methods."

In addition, scores for the ARS contact method have decreased 5 percent to 92 index points in overall performance when compared to the most previous reporting period six months ago (97 points). The largest declines were reported for customers experiencing too many prompts before getting to the desired menu and the lack of relevant menu options available to address the customer's inquiry.

"As more companies strive to save operating costs by encouraging customers to contact Internet- and computer-based customer service programs, they run the risk of increasing the rate of customers who will switch carriers, especially as the number of contacts needed to resolve issues rises," said Parsons. "Since future churn levels are four times as high among those who rate their wireless carrier below average in customer care, the challenge for wireless providers is to offer an easy and efficient customer care transaction experience."

For a fifth consecutive reporting period, T-Mobile ranks highest among the five largest wireless service providers by creating a positive experience among customers who contact the carrier for service or assistance. With an index score of 107 points, T-Mobile performs well across all factors that determine overall satisfaction, particularly in the ARS and retail contact channels, and in the overall hold-time duration on the phone. Verizon Wireless (101) and Alltel (99), respectively, follow T-Mobile in the rankings.

The study also finds several key wireless customer care patterns:

* More than one-half (55%) of wireless users have contacted the customer service department for assistance within the past year, marking a nearly 7 percent decline from the most recent reporting period (July 2006).
* The average number of contacts necessary to resolve an inquiry by phone is 1.87—up from 1.76 in the previous reporting period.
* Among customers who contact their provider, 73 percent do so by telephone and 24 percent do so through their provider’s retail store. E-mail/Internet accounts for only 3 percent of customer contacts.
* The average initial reported hold time on calls to the customer service department is 3.58 minutes. In comparison, it takes an average of 8 minutes before speaking in-person to a representative at one of the provider’s retail stores.
* More than four in 10 customers (42%) contact their provider with a billing-related service inquiry, with 55 percent of these contacts attributed to inaccurate charges. Additionally, 30 percent of all customer care inquiries are call-quality related.

The 2007 Wireless Customer Care Performance Study—Volume 1 is based on responses from more than 13,970 wireless customers who contacted customer care within the past year. The results are from the past two reporting waves, conducted in June and September 2006. The 2007 Volume 2 report will be issued in July 2007.

Labels: customer satisfaction, J.D. Power, wireless

Easy Bake Ovens, Maytag Dishwashers Recalled Due To Fires and Burns

Millions of household name products have been recalled this week by the United States Consumer Product Safety Commission.

The venerable Easy-Bake Oven, a childhood institution manufactured by Hasbro pictured right, has been blamed for injuring several dozen children whose hands were caught in the toy. An additional 5 children were treated for burns. As a result, the agency and company issued a statement that the toy should not be used by anyone under the age of eight years old.

The affected units have the number 65805 and Hasbro stamped into the plastic at the rear of the oven. Any unit sold before May 2006 is not included in this recall.

Consumers should contact Easy-Bake at (800) 601-8418 between 8:30 a.m. and 4:30 p.m. eastern time during any day to receive a free kit to repair the oven.

The company says that almost one million units are involved in the recall.

Another company recalling units is Maytag, the manufacturer of Maytag and Jenn-Air dishwashers. The company recalled 2.3 million units after receiving reports of 135 fires in the dishwasher.

Maytag says that liquid rinse-aid can leak from its dispenser and come into contact with the dishwasher's internal warning and cause a fire. Units affected include Maytag and Jenn-Air under counter or portable plastic tub dishwashers with black, white, almond, bisque or stainless steel front panels.

The CPSC suggests consumers contact Maytag toll-free at (800) 675-0535 anytime to determine if their dishwasher is one of the units manufactured in a 4 year period that is covered by the recall.

e recall involves Maytag® and Jenn-Air® under counter or portable plastic tub dishwashers. The dishwashers have black, white, almond, bisque and stainless steel front panels. The following model and serial numbers are printed on a label located on the dishwasher�s plastic frame on top of or to the left of the door opening. Consumers should contact Maytag to determine if their dishwasher is included in this recall

Labels: CPSC, Hasbro, Maytag, recall

Price Gouging Warnings After Florida Tornadoes

Florida Agriculture and Consumer Services Commissioner Charles H. Bronson has urged state residents to report any instances of price gouging in the wake of the tornadoes that tore through four Central Florida counties this week.

State law prohibits charging exorbitant or excessive prices for essential items, including shelter, gasoline, food, water, ice, generators or lumber following the declaration of an emergency, unless the increases in the amount charged are attributable to additional costs incurred by retailers.

Governor Charlie Crist has declared an emergency in Volusia, Sumter, Lake and Seminole counties, triggering the activation of the price-gouging statute. The price gouging law’s activation is limited to activities only in those counties.

Individuals or businesses found to have engaged in price gouging face fines of up to $1,000 per violation, or up to a maximum fine of $25,000 a day.

“We’re asking consumers to come forward and let us know if any retailers have exploited our citizens or are profiteering from the tornadoes,” Bronson said. “This activity is not only reprehensible, it’s illegal.”

Bronson is asking residents who have any evidence that price gouging has occurred or is occurring to report it at once to his department’s toll-free hotline - 1 800 HELP FLA (435-7352). In addition to the price gouging oversight, Bronson’s Division of Forestry is providing assistance in clearing roads and removing debris.

Labels: Florida, price gouging

Sony BMG Agrees To FTC Settlement Of Copy Protection Scheme Complaints

Sony BMG Music Entertainment has agreed to settle Federal Trade Commission charges that it violated federal law when it sold CDs without telling consumers that they contained software that limited the devices on which the music could be played, restricted the number of copies that could be made, and contained technology that monitored their listening habits to send them marketing messages.

According to the FTC, the software also exposed consumers to significant security risks and was unreasonably difficult to uninstall. The proposed settlement requires Sony BMG to clearly disclose limitations on consumers’ use of music CDs, bars it from using collected information for marketing, prohibits it from installing software without consumer consent, and requires it to provide a reasonable means of uninstalling that software. The settlement also requires that Sony BMG allow consumers to exchange the CDs through June 31, 2007, and reimburse consumers for up to $150 to repair damage to their computers that they may have suffered in trying to remove the software.

“Installations of secret software that create security risks are intrusive and unlawful,” said FTC Chairman Deborah Platt Majoras. “Consumers’ computers belong to them, and companies must adequately disclose unexpected limitations on the customary use of their products so consumers can make informed decisions regarding whether to purchase and install that content.”

According to the complaint detailing the charges, Sony BMG embedded in its music CDs content protection software, also known as Digital Rights Management software, which installed itself on consumers’ computers to restrict the number of times the audio files could be copied. It also prevented the music from being played on certain portable digital devices. The music could not be transferred directly to iPods, for example. In addition to restricting the use of the CDs on computers using the Windows Operating System, the software, which was concealed from consumers, created security vulnerabilities that could allow hackers and other third parties to gain access to consumers’ computers.

The FTC alleges that the installation of software without consumer consent that exposed consumers’ computers to security risks was unfair and violated federal law. In addition, the complaint alleges that hiding the software from consumers and failing to provide a means to uninstall it also were unfair practices in violation of federal law.

The agency charged that it was deceptive for Sony BMG to fail to disclose adequately that software would be installed on consumers’ computers, and that the software would limit consumers’ copying and use of the CDs on their computers. The FTC also alleged that it was deceptive, in violation of federal law, to fail to disclose that Sony BMG’s monitoring technology, included on many of its CDs, monitored consumers’ music listening preferences and sent targeted marketing ads to their computers.

The settlement requires clear and prominent disclosure on the packaging of Sony BMG’s future CDs of any limits on copying or restrictions on the use of playback devices. It bars the company from installing content protection software without obtaining consumers’ authorization, and, if Sony BMG conditions consumers’ use of its CDs on installation of the content protection software, it must disclose that requirement on the product packaging.

In addition, the settlement bars Sony BMG from using the information on consumers’ listening preferences that it has already gathered through the monitoring technology it installed and bars them from using the information to deliver ads to those consumers. For future CDs containing such technology, the agreement requires that, before transmitting information about consumers, their computers or their use of the CD, Sony BMG must clearly disclose on consumers’ computer screens what the technology will do, and obtain consumers’ consent. If it conditions consumers’ use of its CDs on their agreement to have information collected, Sony BMG must disclose that condition clearly on the CDs’ packaging.

The settlement bars Sony BMG from installing or hiding content protection software that prevents consumers from finding or removing the software, and requires that it provide a reasonable and effective way to uninstall any content protection software. It requires that for two years, Sony BMG provide an uninstall tool and patches to repair the security vulnerabilities created on consumers’ computers by previously installed software. The company is required to advertise these free fixes on its Web site.

As part of the settlement, Sony BMG will allow consumers to exchange CDs containing the concealed software purchased before December 31, 2006 for new CDs that are not content-protected, and will be required to reimburse consumers up to $150 to repair damage that resulted directly from consumers’ attempts to remove the software installed without their consent. Sony BMG is required to publish notices on its Web site describing the exchange and repair reimbursement programs.

Sony BMG also is required to provide financial inducements to retailers to return the CDs that create security problems for consumers’ computers. For CDs already in its stock that are sold to retailers, Sony BMG is required to disclose on the product packaging the restrictions on use and the security vulnerabilities.

Finally, the settlement contains record-keeping and reporting provisions designed to allow the agency to monitor compliance with its order.

The Commission vote to accept the proposed consent agreement was 5-0. The FTC will publish an announcement regarding the agreement in the Federal Register shortly. The agreement will be subject to public comment for 30 days, beginning today and continuing through March 1, after which the Commission will decide whether to make it final.

Labels: copy protection, Digital Rights Management, FTC, Sony

Wednesday, February 28, 2007

Friday, February 23, 2007

Thursday, February 22, 2007

Wednesday, February 21, 2007

Thursday, February 15, 2007

Thursday, February 08, 2007

Wednesday, February 07, 2007

Tuesday, February 06, 2007

Monday, February 05, 2007

Archives