Wednesday, November 28, 2007
How To Know Your Email Card Is Safe
Cheers to American Greetings (
NYSE:AM) for their holiday initiative.
One month after proving they were serious about a web presence by acquiring WebShots.com to go with Blue Mountain and other well known ecard providers, the company's online division launched
an education effort today to help consumers know when they are receiving a legitimate holiday card.
Among the company's recommendations were to hover your computer's cursor over the link to retrieve or "pick up" your card. If the card is from AG Interactive or one of its companies, the link shown by your activity will not be a string of numbers (called an IP address), but will be located at
http://www.american-greetings.com.
The company also said that it had set up a special mailbox at "security (at) americangreetings dot com" where consumers could send suspicous email. Additional information is available at the
company's email protection center.
Labels: AGI, American Greetings, email, spoof
Monday, November 26, 2007
Check Gift Card Terms *Before* Buying
We wrote this spring about restaurant giant Darden (Olive Garden and Red Lobster parent company) and its
huge settlement with the FTC over gift card expiration dates.
Now comes a good reminder and a caveat from Illinois Attorney General Lisa Madigan (pictured). The Illionois AG says that
gift cards sold in Illinois must disclose their expiration date. Cards sold after January 1, 2008 in Illinois must retain their value for 5 years.
As states attempt to regulate this issue at their level, we also remind all consumers during this holiday season that gift cards (especially gift charge cards bearing a Visa or MasterCard logo) may have excessive activation fees. In our testing earlier this year, we found multiple cards for sale in denominations as low as $25 that had activation fees of up to $5.95. Spending just under one-quarter of the value of a card for activation is a horrible business practice.
Don't fall for it.
Read the
entire instructions on the card. If the card does not disclose the expiration date and explicitly state there is no activation fee, you may want to look elsewhere for that special gift. Sometimes The Grinch comes dressed up as an excessive fee.
Labels: Darden, gift card, illinois, madigan
Thursday, November 22, 2007
Music Exec Says Industry "Went To War" With Consumers
PC World has terrific coverage of music company executive Edgar Bronfman's talk at a conference in Macau where the
businessman acknowledged companies "went to war" with consumers. Kudos to the bloggers at the venerable print publication for spotting and publicizing this fast.
Bronfman has long been a controversial figure. After taking over the family business, he sold huge chunks of the company in different acquisitions in order to create an entertainment conglomerate. Both acquisitions failed miserably, but the scion finally took over Warner Music in 2004.
Now he is 'fessing up to consumers around the world. During his speech, he reportedly said,
We used to fool ourselves. We used to think our content was perfect just exactly as it was. We expected our business would remain blissfully unaffected even as the world of interactivity, constant connection and file sharing was exploding. And of course we were wrong.
Indeed. Now if Bronfman can use his considerable influence to allow consumers to copy music for their own use without violating various laws, his words will truly begin his reputation rehabilitation.
Remember: just because you can technically do something doesn't mean that you're allowed to do so.
Labels: Bronfman, PC World, Warner Music
Wednesday, November 21, 2007
Texas Goes Greener, Tests Lowering Consumer Power Use and Bills
A consortium of Texas energy companies is launching a two year pilot for consumers to learn the impact of automatically lowering their energy usage.
The "Direct Response Project" will turn off high load items like swimming pool pumps and air conditioners for a short time during a short period. Consumers who participate will receive energy-efficiency benefits from the participating companies.
This is win-win-win.
About two thousand Texas families will receive upgraded energy equipment and monitoring. Texas utilities can respond to public demand for more environmentally friendly behavior. And while the utilities will ultimately lose a little revenue, they also introduce a non-disruptive technology to their existing service and work on changing consumer behavior at the same time.
A treasure trove of data will come out of this project, but two years is a long time to wait. One wonders if the time horizon can be accelerated given the looming environmental crisis.
If you're in Dallas or Houston and interested in the program, contact your electric company.
Labels: energy, environment, Texas, utility
Tuesday, November 20, 2007
FDA Finally Moves On Avandia
We wrote about
diabetes drug Avandia's dangers in June. We noted the FDA had not moved with much speed yet, which seems somewhat ironic given the rhetoric and cries surrounding the Consumer Product Safety Commission.
But while doctors continued prescribing Avandia (and its partner Avandamet and other combinations) with a warning, the Food and Drug Administration waited because of conflicting studies. Last week, the agency finally
added its most strident warning, (pdf link) the black box, to Avandia and also includes a statement warning of an increased risk of heart trouble among diabetes patients who already have increased risk.
Dr. Janet Woodcock of the FDA said that pharma giant GlaxoSmithKline (
NYSE:GSK) was cooperating with the agency. Woodcock also said that tests showing increased heart attack risk were tempered by longer-term studies that conflicted with the data.
The frustrating part of this issue is that months elapsed before the FDA got to this point and now years may be go by before a decision is made. Dr. John Jenkins, also speaking on behalf of the FDA, added that "So this will likely be, you know, a long term study. It could take as many as four or five years. So over that time it’ll be multiple comparisons."
Despite strong questions from
The Los Angeles Times' Ricardo Alonso-Zaldivar, FDA representatives refused to address the issue of the agency's own safety officers calling for the drug's removal from the market. Alonso-Zaldivar pushed well, but was eventually silenced. Follow-ups from
The Wall Street Journal and other media outlets were similarly stonewalled. FDA officials also refused to disclose the panel's vote and other information that will undoubtedly be challenged with a Freedom of Information Act request.
For now, diabetics taking Avandia or one of the two commercially available compounds containing Avandia are
strongly urged to talk with their physician about whether this drug is appropriate for them.
Labels: Avandia, FDA, Glaxo, GSK
Monday, November 19, 2007
Congress, Media Continue CPSC Attacks
Suddenly it's the agency's fault.
Writing in the
Albany Times Union, Marianne Means calls the state of the
Consumer Product Safety "a national embarrassment". The
Washington Post stopped
just short of editorializing its CPSC news although reporter Annys Shin was quick to paint a
business v. consumer and
House v. Senate battle scenario.
What is happening now
is a national disgrace. After years of gutting federal consumer protection, this spring and summer saw big cases reach the public's consciousness. Suddenly, the average consumer wanted to know about consumer protection, which is something we consumer advocates have been trying to talk with them about for over a decade. Tax cuts, celebrities in jail for two hours at a time and
American Idol took the place of paying attention to the products we use and consume.
One can imagine a U-shaped curve showing American interest in consumerism peaking with Ralph Nader's crusades decades ago, bottoming out during the "greed is good" phase and peaking again with word about shoddy products endangering us. CPSC Commissioner Nord gets that issue. In
Nord's testimony to Congress (pdf link) weeks ago, she reminded Congress that the CPSC had not been reauthorized since 1990. In her words:
"Most of America's consumer products, not just toys, now come from overseas manufacturers. Much has changed in the marketplace, in technology and in communications since 1990. The result is that the inspection and enforcement tools at the agency's disposal with respect to imported products are not as strong as they need to be."Nord also pointed out two very critical issues that most pundits seem to miss:
* Relative to the USDA and FDA's groups tasked with product safety, the CPSC has a minuscule amount of resources available.
* As Nord testified, the CPSC
does not have ultimate authority on imports. By statute, Customs and Border Protection has the direct authority to deal with failures of import goods.
So while America pounds the wardrums for being exposed to potentially dangerous products in an all-you-can eat land of dollar stores and low cost providers trumping quality nearly every time, a balanced look at the issue is appropriate.
The CPSC failed because Congress, and by extension the American people, continually cut the agency's resources. This was followed by nearly a generation of not acknowledging the global marketplace, all of which stopped the CPSC from doing an effective job.
Why not work with the agency on a go-forward plan, a tactic we've now suggested three times, instead of starting with a new agency. Holding an entity accountable for circumstances beyond its control and mandate is a national embarrassment, exactly what one would expect when stories of what DVDs are on sale and the middle of the pro football season knock the tragic story of 3,000 people dead in Bangladesh off the front page of most newspapers.
Labels: Congress, CPSC, Nord
Thursday, November 15, 2007
Microsoft Will Help Parents Limit Video Game Time
The Family Timer is Microsoft Corporation's latest attempt to garner support for its Xbox gaming console. The
technology company has announced a deal with the PTA to promote a new feature that allows parents to set automated time limits on how long the console is used.
Microsoft cited a study that claimed nearly half of parents surveyed stated that setting responsible limits on the amount of gaming time created "tension". We think that's called parenting and while an automated solution (available via download next month) is a good way to help parents remember how much time is left, especially in large families, the best solution for most families is to work together to find the right amount of time for each child to play.
Credit goes to Microsoft for attempting to work with organizations like the PTA and the Boys and Girls Clubs, but education and diversity remains the most effective tool.
Labels: Microsoft, video games, XBox
Tuesday, November 13, 2007
Traveling Consumers Should Expect Thanksgiving Crush
Travelers using airplanes to go over rivers and through woods during next week's Thanksgiving holiday may be in for
full flights during the holiday.
The American Transport Association, an industry group run by the airlines, expects flights to
average 90% full during the period -- an increase over this year's already-crowded 80%. Serious delays have crippled carriers like JetBlue and US Airways over the last several years, and both spent an enormous amount of time and resources overcoming the perception of standing passengers. Doing so during the busiest travel time of the year could be devastating for a carrier.
Our hints:
-- Check with your airline now. Today. Make sure you know the flight, hold a seat assignment and when you need to check luggage. If you live in a major city with more than one airport, make sure you know which airport you are flying from. Yes, it happens.
-- Try to check-in for your flight from home on the day of travel. This is sometimes possible even if you're checking bags. If you can get away with carry-on only, do that, but make sure you know the airline and
TSA's rules for carry-on luggage. Keep that 3-1-1 rule in mind!
-- The TSA also offers
security line checkpoint waiting time on the web. See if you can view that on a web-enabled phone. Information will be power.
-- Get to the airport early. Even if you're a frequent traveler who knows all the tricks and tips, you'll be traveling with thousands or tens of thousands who don't. At a minimum, double your travel time.
-- Keep up your good spirits. There will likely be traffic delays. There could be weather delays. Either will have a ripple effect throughout the system. Roll with the punches, and don't stress too much.
-- Coming home may be even trickier. Some people are leaving early and some are leaving late to get to their destination, but just about everyone you can think of is coming home in the same tiny window. Remember that for your trip home.
90% load factors are huge. That means there won't be space for multiple carry on bags, there will be long delays and lines just to board and checked bags will take that much longer to get to the carousel. The large number also means that your options may be much more limited if you miss your flight so be sure to allow plenty of time for parking and traffic to the airport.
Labels: airline, airport
Monday, November 12, 2007
Florida Cyberfraud Unit Cracking Down, Web Marketer Pays $1 Million
Florida Attorney General Bill
McCollum is focusing on the Internet as one of his key issues.
McCollum's new "
CyberFraud Task Force" is aiming at the entire web, not just a single niche, to protect Florida's consumers.
They also have just announced an
agreement with web marketer Azoogle. The company, which engages in multiple marketing opportunities for businesses and consumers, was marketing
ringtones to younger consumers when it caught the task force's attention.
Azoogle was not charged with nor did they admit any wrongdoing, but the company did make a $1 million payment to Florida. and is said to be cooperating with the task force.
Florida is one of those states where the local consumer protection offices wield power and do a great job consumers. Larry
Kaplan of the
Broward County Commission in Fort
Lauderdale is one example of a great consumer advocate, but the state can obviously muster resources that exceed local capabilities.
A staunch Republican who served in the House of Representatives for over 20 years with assignments such as Bill Clinton's impeachment and the Iran-Contra hearings,
McCollum is an experienced litigator who seems to have found a home for himself in consumer affairs.
Labels: Azoogle, Bill McCollum, CyberFraud Task Force, Florida
Friday, November 09, 2007
Merck Makes Settlement One Month After Consumer Help Web Predicts
After New Jersey's highest court refused last month to grant consumers class action status in a suit against Merck (NYSE:
MRK) over its painkiller
Vioxx, we
predicted the Merck lawsuits would end, actually using the phrase in October that they would "dry up".
Just one month later, Merck is making that happen with a reported settlement of $4.5 billion. The company fought a brilliant strategy, using surgical precision in the media, steering clear of anything bombastic and finally proving two things:
1. Merck could cast enough doubt in individual cases to win the majority of them.
2. There would be no class action and dream team of litigators seeking to carve up the pie.
Not being doctors, we can't speak to whether
Vioxx is good or bad, but we can say that Merck played this consumer affairs disaster better than any company in recent memory. The company said they would fight each case individually, a tactic seen by some as stalling, especially after the first big verdict.
But then the wins started piling up, and Merck was suddenly more in control of the situation. The company still showed restraint and soldiered forward.
Today was the bombshell -- $4.5 billion for 27,000 cases. After fighting off enough cases to prove it could win more often than not and survive a class action designation, Merck made a big chunk of the other 27,000 go away.
The money sounds big, but it isn't. One simple piece of division shows the offer at about $180,000 per suit
before legal fees. That is such a small amount relative to the size of Merck that the company's shares are actually up in early trading before the market officially opens. And now someone who wants to continue on has to convince a court why this amount is insufficient, which is undoubtedly the next step for many.
But win, lose or draw, we saw the pattern last month after following this story for years. Is this good for consumers? That's a
marcro-economic debate for another time. Is it good for individual consumers? That's also a debate for another time, but do consider how many of the company's 60,000 employees would lose their jobs if there was a class action or a bigger settlement. And consider that Merck's
Gardasil is said to be a blockbuster that will save women from cervical cancer just as its
Junavia is one of diabetes' most promising medicines just at that disease reaches epidemic scale.
If there was a smoking gun, some hint of deliberate wrongdoing by Merck, we would be the first to urge juries to shatter the company through big verdicts and and throw them on the scrap heap with Enron. But no one ever managed to prove that. That's an ugly, clinical way to look at the world, but ultimately, without tort reform, we run the risk of individual cases have massive, national economic repercussions.
The proper way is likely somewhere in between.
Labels: Merck, Vioxx
Thursday, November 08, 2007
Frustrated Shopping Online? You're Not Alone
Tealeaf Technology and Harris Polls are sending out word of their look at more than 2,000 adults who shop online.
We are not surprised to learn that more than half of consumers who have a problem with an online store report being dissatisfied with the results. Our complaint letter service gets a steady stream of those complaints.
What does surprise is MSNBC quoting Tealeaf's study that says 87% of online shoppers have some sort of problem. We think that number is too high, but are certainly interested in learning more as more about the methodology is made public.
What about you? Do you shop online, and if you do, are most transactions handled to your satisfaction? We have an entire
shopping site reviewing online stores, and while the reviews are sometimes mixed, the overwhelming majority are positive.
Our experience is that when a problem surfaces that consumers start to feel pressure and report dissatisfaction. But 87%? That is a big number.
Labels: customer satisfaction, Tealeaf Technology
Wednesday, November 07, 2007
FTC Nails Big Companies On Do Not Call Violations: Craftmatic, ADT and Ameriquest Among Targets
The sound of consumer clapping can be heard since their telephones may be ringing less often today.
The FTC has announced settlements with huge companies -- massive ones, really -- that are among the agency's largest ever.
Want to win a Craftmatic bed? Sure, they look cool, but if you filled out a sweepstakes entry form, the feds say that Craftmatic called and called. The FTC's statement also says that Craftmatic's predictive (automatic) dialer did not connect outbound calls to one of their sales reps in 2 seconds resulting in "millions" of abandoned calls. That is not only awful customer service, but hideously expensive service as well.
Worst of all those alleged violations in our eyes? When consumers (not customers -- consumers who filled out a simple sweepstakes entry) asked to be put on the company's do not call list, their requests were
ignored. That is inexcusable in our books and perhaps one of the main reasons why
Craftmatic settled the claims with a penalty exceeding $4 million.
The other companies did not fare well either. ADT's alarm services group and two of its dealers ignored the do not call registry and are out $2 million. Financial product company Ameriquest was also charged with ignoring the do not call registry among other violations.
Remember, you need to log calls when you tell a company to add you to their do not call registry. Log their name, their number and the time and date. That level of detail is invaluable in helping prove these cases.
A final thought about unwanted telephone calls. While yesterday was Election Day for many local and state races, the big day is coming. Telephone technology is more advanced than it was four years ago so just think about what the 2008 Presidential election (and the primaries leading up to it) will do to the number of automated calls made?
Political calls are conveniently exempt from the do not call registry. A new non-profit is valiantly registering names and numbers to present to campaigns so that
consumers receive only the political calls they want -- or none at all. Register at the above link if you want to be a part of that process and keep your dinner warm.
Labels: ADT, Ameriquest, Craftmatic, do not call, FTC, stop political calls
Tuesday, November 06, 2007
Credit Problems? Freeze!
One of the better protections available to identity theft victims is now globally available. Credit reporting agency Experian was the last holdout among the three major companies processing credit information in the United States.
A freeze simply means that no
new companies can access your credit records. This means a new account can't be opened in your name. TransUnion and Equifax already offered the service, which is mandated by state law in multiple jurisdictions for identity theft victims.
Experian announced that any consumer would be able to freeze their account -- even permanently -- for a fee of $10 for any reason other than identity theft.
This is a major boon for consumers, one that was fought by Consumers Union, who later issued a statement criticizing the charge but supportive of the move.
Labels: Consumers Union, credit, Experian
Saturday, November 03, 2007
*Food Recall - Critical* One Million Pounds Ground Beef Recalled
Food giant Cargill has
recalled one million pounds of ground beef that was shipped to 10 states, mostly in the East. The company says that the U.S. Department of Agriculture reported a positive reading for
E. coli contamination in meat processed October 8. The company also says no illnesses have been linked to the meat, but after the painful lesson from Topps this fall, wasted no time in recalling the meat.
The affected states are in the East, but who knows how food can travel? Better to be safe than sorry. The link above lists the ground beef recalled by brand names. The meat was sold at multiple stores including Giant, Giant Eagle and Wegmans throughout the East.
Consumers with questions about the recall should call Cargill at 1-877-455-103
Labels: Cargill, food, ground beef, recall, safety
Thursday, November 01, 2007
FTC Warning: Don't Open Our Mail
The Federal Trade Commission is warning consumers that they are the victims of a
phishing attack. Someone is using email to impersonate the FTC, which is pretty dumb on the intelligence scale.
The federal agency says that the email comes from an address labeled frauddep@ftc.gov. An FTC seal is included in the email, but there are multiple spelling and other errors. There are links and an attachment in the email, both of which could cause your computer to be infected by a virus.
If you received any such email, run your computer's virus checking software to be safe. If you haven't and do, just delete that email. Better safe than sorry this week. If the FTC wants you, I'm sure they'll contact you another way. What makes this so different is that the address
appears to be from the government and the use of the
FTC's logo.
Woe to the company who spoofed the FTC. We expect to be reporting on an arrest any day now.
Labels: email, FTC, spoof
