Consumer Help Web

[customer service] Hilton Web Site Continues To Cause Errors

2008-03-23T12:57:00.004-04:00

Sometimes even elite status doesn't save a traveler from having bad experiences with a travel company's web site. As a Hilton Diamond member, I have access to a nifty phone number that is usually answered in seconds. Stay dozens of nights a year in the same hotel chain, and you can get that too.

But what I don't understand is why Hilton's online reservations and comment systems have been broken for months. Yes, Hilton corporate staff knows about the issue.

Today was the epitome of poor customer service.

After receiving an email asking me to comment on my stay at $439/night in New York for 4 nights, I clicked on the appropriate button. Imagine my surprise, when I had to fill out a complaint form. Having designed enough customer service systems over two decades, I was not pleased with this development, but I dutifully completed the information and then wrote my comment.

Their system reported an error twice when I clicked the submit button. I scanned the email only to find the expected "Do not reply to this email" message. Seems I wasn't so important despite the opening paragraph. So I went to the main Hilton site and clicked the contact button.

Yep, another crash.

The web is working fine on the two computers on my desk. Hilton, however, has been up and down for a year to the point where Diamond call center employees have had to give me special URLs to check my reservation.

Seems like Paris isn't the only dysfunctional Hilton.

[legal] Reebok Pays $1 Million Two Years After Recall

2008-03-20T21:02:00.000-04:00

Consumer Help Web warned consumers about lead in a child's bracelet nearly two years ago. One of the earliest very public recalls linked to products produced in China, toxic levels of lead in the bracelet were linked to a child's death. The bracelets were sold for two years at a price between $33 and $50.

Now the U.S. Consumer Product Safety Commission (CPSC) has announced that Reebook will pay a record $1 million penalty related to the Federal Hazardous Substances Act (FHSA).

As part of the settlement, Reebok denied any wrongdoing or violating federal law despite the company's recall of 300,00 of the bracelets that the consumer watchdog group claimed had too much lead.

[auto] More Damaged Cars Being Sold

2008-03-12T08:58:00.003-04:00

A new Carfax.com study shows that the number of "salvaged" cars checked by the company's customers increased 50% in five years.

This is big news and worth any consumer's time.

A salvaged car is one that has essentially been damaged to a point related to its value. That percentage varies from state to state and the calculation methods used vary from company to company. It obviously benefits some companies, such as an insurance company, to avoid declaring the car as a salvage vehicle and instead repair the vehicle.

But even when cars and light trucks were reported to the state as salvaged, they were often transported to other states where reporting requirements or other technicalities allowed someone to sell the car without disclosing the extensive damage. This practice is called "title washing", and while still seen today, companies like Carfax that pioneered the concept of national vehicle history, have surely cut down on the number of such vehicles.

Those salvage cars are out there, however, and the volume surprised Carfax, which eats, breathes and sleeps vehicle history information.

"This problem is more widespread than we previously thought," said Larry Gamache, Carfax's communications director in a statement. "Based on our data, the number one concern consumers should have right now, even above flood damage, is unknowingly buying a used car that was badly damaged in an accident. Buying a salvaged car may not be a bad investment, but you must make sure you're aware of any prior damage and, more importantly, see that the proper repairs were made.

[complaints] Washington Top 20 Complaints Unchanged At The Top

2008-03-11T07:28:00.003-04:00

The most common complaints against Washington businesses remained largely unchanged from 2006 to 2007 according to Washington Attorney General Rob McKenna.

Complaints against communications companies, collections agencies, stores, auto sales, and contractors continue to occupy the top spots among companies Washington consumers complain about. Although many common complaint categories remain in the Top 20 for years regardless of state, Washington did see some interesting surprises.

Landlord/tenant disputes jumped from position 21 to #7, and cable networks moved up six spots from #16 to #10. Despite the mortgage crisis that may be triggering a nationwide recession, complaints about mortgage lenders only showed a slight increase and remained outside the top 10 categories.

Consumer Help Web sees similar complaint patterns from our clients. Auto and communication companies are among the top issues year in and year out. Maryland is another state where this trend is almost repeated. After winning a $1700 credit for a Maryland consumer on his phone bill, Consumer Help Web also helped a customer there recently with an auto manufacturer issue. The consumer, M. Wilson of Hagerstown, Maryland, later wrote us,

Toyota corrected the problem with my navigation system free of charge last week. The system has been working fine ever since. All that I can say is thanks. I always get results when I contact your service.

Now that National Consumer Protection Week is over, many media outlets will stop covering so many stories about consumer advocacy and customer service problems. Companies like Consumer Help Web continue reporting on issues in this blog and as we resolve complaints year-round from consumers who can't get a company to respond to them.

[safety] USDA Refuses To Identify Companies With Bad Beef

2008-03-09T21:11:00.002-04:00

After the US Department of Agriculture's surprise beef recall in February, we wrote about Consumer Help Web's disapproval of the process. On February 18, we chastised the federal agency, pointing out that "consumers have no way of knowing if tainted beef is in their freezer."

To make matters worse, USDA officials have told a Congressional committee that they are not allowed to nor do they intend to disclose the names of food distributors who may have received tainted meat products from Hallmark/Westland Meat Packing Company.

This position did not sit well with Congressional leaders, especially after a USDA spokesperson referred to the information as "proprietary". We join our voice with Representative Maurice Hinchey (D-NY), who candidly told USDA officials that information regarding safety hazards American consumers face are not "proprietary".

We understand the need for rules to help protect the interests of businesses and their employees (who are also consumers) when a company is under investigation. But three weeks after a so-called "recall", consumers still can't identify the products. We find that inexcusable.

Tell us how you feel by voting below.

[travel] Airlines Erase Paper Tickets

2008-03-04T09:02:00.003-05:00

As struggling U.S. air carriers try to reach profitability by scaling back services, consumers will soon be missing another staple -- the paper ticket.

The association most of the world's airlines belong to has reached consensus that its members will stop issuing paper tickets for travel as of June 1, 2008. Checking in for a flight from a PC, mobile phone or airport kiosk has become the norm for many frequent travelers, but this is no longer simply an option for frequent, tech-savvy travelers.

Consumer Help Web receives many complaints from travelers who don't often travel for business and might only take several flights in their entire lives. The familiar processes frequent travelers grumble about are unknown to those consumers.

Many start standing in line the moment they reach the airport, unaware of luggage weight limits, how to operate check-in kiosks or security checkpoint procedures. If a consumer flies once every few years, the rules constantly change, and they often miss a connection, are forced to abandon a keepsake at security or waste time standing in at least one too many lines.

Airlines are like many physicians in such cases. Accustomed to seeing a crush of humanity and horrible situations, the average consumer's frustration seems minimal and not worthy of effort. When Consumer Help Web contacts airlines (or cruise ships or even bus lines), even our team is sometimes greeted with a perfunctory offer of extra frequent-flier miles for our customer or a coupon for a future trip. Since neither are very valuable for consumers who don't travel by very often, we have learned to excel at guiding our consumer customers to an appropriate resolution they want to receive.

Meanwhile, we love technology, but we're not sure there was enough time to phase-in the "no paper ticket" rule. Tell us what you think below.

[solving complaints] FTC Chair Leaving With Mixed Reviews, Consumer Help Web Activity Often Earlier Than Agency's

2008-03-03T08:16:00.004-05:00

As Deborah Majoras plans to leave her leadership role at the Federal Trade Commission (FTC) this spring, she leaves the Bush administration with yet another big consumer hole to quickly fill.

Majoras, an attorney in private practice before her appointment, will join Procter & Gamble as their General Counsel, a consumer affairs move that is as high voltage as a company can make. Fending off consumer complaints and lawsuits is much easier when your inhouse attorney was in charge of the federal watchdog agency.

Consumer Help Web often resolves many complaints that later make their way to the FTC and other agencies. We've long proposed that government agencies should survey private companies and law firms about consumer issues, just as they do with local and state agencies. Giving details is not as important as sharing that we have just resolved 3 complaints this months on a particular wireless carrier or company that was leaving consumers in the lurch.

Majoras' leaving reminds me of cases the agency brought under her tenure like CortiSlim. The FTC took action against the weight loss industry in 2007 after years of complaints. Fortunately for consumer, ConsumerHelpWeb.com was helping consumers three years earlier against that very same company.

Just one example of how our complaint resolution service works fast:

In June 2004, Al Di Grazia of Hayward, California wrote us about the very same issues with CortiSlim the FTC later investigated. We immediately contacted the company's senior executives, and Mr. Di Grazia's complaint was quickly resolved. He even received a check in that time for more than $100. Mr. Di Grazia wrote us days after we resolved his complaint against CortiSlim:

I was not getting anywhere with the other company. After contacting Consumer Help Web, I received my full refund in less than one week. I wanted to let you know that you are great.

There is a place and need for FTC enforcement and combined recalls from federal agencies. There is also a place for consumer advocates like ConsumerHelpWeb.com who can quickly get things done and help those agencies identify trends months, if not years, before they are known and acted upon.

We appreciate Ms. Majoras' past service and while we understand the allure of a private sector paycheck, we remain hopeful that as government agencies collate data and build cases that they will look to the trenches of consumer affairs where action is being taken much earlier.

[travel] Airlines Raise Baggage Fees

2008-02-27T09:13:00.003-05:00

Forget the number of carry-on pieces and the long lines. Air travel is about to get more interesting as US Airways joins United in charging extra for a second piece of luggage.

Consumers quickly (and too easily) rolled over for weight limits on buggage that continued shrinking. Two major US carriers are now saying that they will charge extra for a second piece of luggage, even on international flights.

While I've taken plenty of one or two day international flights for business, I can't imagine that carrying a second piece of luggage if I travel to Europe or the islands is going to cost me more.

But it is. The new rules go in effect May 5, coincidentally just in time for peak travel season.

[scams] FTC Takes Aim At BlueHippo's Finance Scheme

2008-02-27T08:34:00.003-05:00

The Federal Trade Commission announced that it has won a settlement from a company called Blue Hippo that financed consumer electronics like computers and televisions for people with bad credit. This is similar to the rent-to-own world, but even worse.

According to the federal agency, Blue Hippo did not deliver goods to some consumers and violated multiple federal laws, including those covering Truth in Lending and the Mail Order Rule.

Court filings show unbelievable sales pitches such as "Do you want to own a computer, but have less than perfect credit? No problem. If you have a checking account, a home phone and can afford a weekly payment of just $35 for only 12 months, BlueHippo Funding says you're approved, guaranteed."

If you are reading this and considering such an offer, stop now. The axiom of "too good to be true" is accurate. If you can't afford it, don't put yourself in debt exceeding your means for instant gratification. You'll just make others wealthier.

Meanwhile, look for our upcoming article on the Mail Order Rule that discusses its growing importance in the age of Internet shopping.

[mortgage] Nevada, California, Florida Top Foreclosure Increase, Slower Than 2007 Rate

2008-02-26T07:47:00.005-05:00

News about mortgage foreclosure rates jumping 57% in January 2008 when compared to January 2007 seems destined to dominate today's headlines. But one mortgage expert thinks there might be a silver lining in the gloomy numbers.

RealtyTrac CEO James J. Saccacio, whose company performs the analysis for multiple media outlets thinks some promising mortgage news is mixed in with the big number.

"January's foreclosure numbers demonstrate that foreclosure activity is continuing on its upward trend, substantially increasing from a year ago in many states," said Saccacio in a statement. "However, the 8 percent monthly increase in January is not as precipitous as the 19 percent spike we saw in January of 2007, and several key states actually experienced decreasing foreclosure activity from the previous month."

RealtyTrac's cautiously optimistic outlook on the mortgage market is worth noting, especially for context. As radios and television blare that 57% number in the coming days, remembering that context may prove very beneficial.

Meanwhile, if you are behind in making mortgage payments, contact the lender and talk with them about how to create a payment plan that keeps you in your home. Your local consumer regulatory agency also has information about appropriate credit counseling services. Don't simply choose one from the phone book or an online search -- get advice from the pros. The FCIC maintains a free online list of consumer agencies on their website.

[safety] As Recalls Pile Up, Legislative Inaction Hampers CPSC

2008-02-25T07:48:00.005-05:00

The Consumer Product Safety Commission, a federal agency operating with only 2 of 3 commissioners, continues to fumble through its mission while Congress, consumer advocates and the public swirl around the group in a messy melange of ideas.

CPSC staffing levels have dropped through the years to half of where they were when the agency was founded three decades ago. President Bush's attempt last year to fill temporary agency head Nancy Nord's role with a manufacturing lobbyist was met with derision and quickly withdrawn. Nord continues as Acting Chair of the agency while the House of Representatives and Senate consider legislation that would fund the organization to approximately $80 million while giving the group broader powers or potentially entangling the agency's mandate with states rights.

Our issues with the agency's rules are that recalls still remain voluntary and penalties are relatively minor. We support broadening the agency's role while giving informed consumers tools with which they can make good choices. Provisions for consumer databases exist in the Senate's floor bill (S. 2045) while legislation that passed the House calls for mandatory recalls.

"Both the Senate bill and the House bill passed earlier include important safety provisions that will help CPSC's ability to keep our children safe. We hope that the final conference bill will take the strongest language from both and give the agency the funding, staff and teeth they so desperately need," said Nancy Cowles, Director of Kids in Danger.

Kids in Danger has created a safety poster we'll be sharing later this week that shows recently recalled items that place children in harm's way.

In our opinion, neither piece of legislation is the best answer in its current form. Rather than throwing brickbats at the agency itself, we hope lawmakers will take a fresh look at this legislation and all safety issues.

Problems with jurisdiction already exist at the federal level. Complicating the matter by involving state Attorney Generals might be a recipe for more dangerous products being sold for longer periods of time. Other consumer advocates feel differently, but ultimately, this is more than an issue of stalled legislation. Consumer safety crosses race, gender and economic lines.

[privacy] ChoicePoint Gets A New Parent

2008-02-23T06:23:00.004-05:00

We have been highly critical of information services company ChoicePoint (NYSE: CPS) for years, ever since they admitted selling private consumer data in early 2005. Identity theft was starting to ramp up as an American consumer's worst nightmare, data was sometimes being lost or stolen, but this was the first time in recent memory that a company collecting the data admitted that it sold more than 140,000 consumer records to individuals posing as businesses.

The timeline grew as gruesome as one might expect. Only one week later, ChoicePoint admitted that they knew about their data breach as early as October 2004, but were working with law enforcement. We were critical and remain critical of the decision to suppress news from consumers about a deliberate breach of consumer information.

Congress justifiably got involved, but little came out of the federal government's queries, something we see repeated too often. This time, however, the Federal Trade Commission stepped in and chased down ChoicePoint's processes. A year later, the company announced it would pay a $15 million fine, including $5 million for consumers, to settle the FTC's complaint that ChoicePoint did not have adequate safeguards in place.

The only time we believed the company was being harshly treated was when a coalition made up of nearly every state bellied up to the trough and beat another $500,000 out of ChoicePoint. We said then and believe now that this was just a money and headline grab gambit and did little to help consumers.

Now an even bigger information company, Reed Elsevier (NYSE: RUK) which owns information company Lexis-Nexis among others, has stepped in with $4 billion or so to buy ChoicePoint. The premium being paid for the information housed in Georgia-based ChoicePoint is staggering. Less than one month ago, the market value of the company (as determined by its stock price) was about $2.3 billion. While stocks have been battered and there are value buys out there, this is akin to Microsoft trying to take on Yahoo!

We can (and do) argue both sides of consolidation at Consumer Help Web. Concentrating data in a few companies allows for more stringent regulation, tighter controls and a wider spotlight. At the same time, the mess our nation's three major bureaus have created finally caused the government to legislate that consumers receive free access to each company's report every year to examine the report for errors. That is a lot of power to put in the hands of a for-profit entity.

We see the same issue with Google now. We adore Google for its groundbreaking contributions to Internet searching. At the same time, multiple consumers in multiple consumers have expressed to us their concerns that the search company is gathering a picture of consumers that is too detailed. Indeed, search queries and other information are associated with Google accounts and create a history of what was searched for by a person. That's not a marketer's fantasy, but a consumer's nightmare. Every unimaginable intensely private search query is dutifully logged by massive computer centers and tied to an individual.

That is why we are not fans of Google's proposed Health offering, why we think Microsoft's Health offering has failed to gain traction and why we are very concerned about the merger of two giants like Reed Elsevier and ChoicePoint, even if the latter has been learned a painful lesson.

[customer service] CareFirst Forgets Their First Name

2008-02-22T18:09:00.006-05:00

Today was one of the days we saw a major company's contact center operations take a giant step back. Listening to those are sad -- especially when so much attention is being made of customer satisfaction.

During a routine call to healthcare giant CareFirst, a customer service representative told me that my provider had been paid for multiple claims I was being billed for by the provider. Interestingly enough, CareFirst's own computer system showed my coverage as lapsed because I had switched from one group to another, and the old group's coverage still showed on the record.

"That's IT's problem," said our rep, whom we call Cheryl, since that's the only name she provides.

No, actually, it's the company's problem, but what do we do about this bill?

Well, says Cheryl, it's your doctor's fault.

[Stop when you sense a trend developing]

But I want to speak with a supervisor. Cheryl says that doesn't happen because there are none. Apparently Cheryl, whose supervisor uses the name Ms. Taylor, is working by herself tonight. All of CareFirst's 3 million policyholders are apparently being cared for by Cheryl tonight because a supervisor can only call back within 24-48 hours. That's an awesome responsibility.

Later, we get force-transferred (that's what call center reps call the process when they transfer your call without permission). We have to give Cheryl credit though. She forced us into a provider queue for doctors and hospitals. With no id code to enter, we couldn't go anywhere. No buttons transferred us out and without a code, we couldn't get connected to anyone.

The only choice? Hang up.

The First Company, the one originally known as CareFirst, apparently meant healthcare, not customer service care.

As consumers you don't have to accept that kind of behavior when it is inflicted upon you. In our case, a letter is already on its way to "Interim CEO" David D. Wolf. This will allow Mr. Wolf and his team in Owings Mill, Maryland to relieve Cheryl of her awesome responsibility in supervising the company for the next 48 hours.

Mr. Wolf will also presumably fix "the IT problem" and "my doctor's problem". Because this happened to a Consumer Help Web person (and we were fair to say this was going on the web), we won't list CareFirst under our pending complaints, nor will we put a negative one next to their score in our databases.

Yet.

We'll keep you posted on what happens, however, to this real life case study where we can freely use the customer's name and experiences. Our demand letter to Mr. Wolf is very simple and requires that CareFirst update its computer systems to show our family's updated coverage and rescind the letter sent to our doctor demanding a refund for money they already paid him.

A simple resolution request laser-targeted to the senior executive gets results. We get those results and help hundreds of consumers. If this happened to you, let us help you resolve your complaint too.

[safety] Is USDA's Beef Recall Hogwash, Bull or Neither?

2008-02-18T13:48:00.005-05:00

The United States Department of Agriculture ratcheted up the heat on consumer safety issues by issuing a recall of 143 million pounds of beef from Hallmark/Westland Meat Packing Company. That organization supplies food distributors, including federal food programs, with ground beef.

As with many recalls, this one seems more about the timing than consumer safety. The USDA dumped this news on the American public during the Sunday of a 3 day holiday weekend. The agency conceded by Monday that "most" of the meat had likely already been eaten and that the meat company had voluntarily ceased operations on February 1.

Consumers don't need a sundial to know that this issue was news at least 16 days ago, and one therefore becomes concerned about the timing and any potential motivation.

Perhaps the worst part of this scare headline is that consumers have no way of knowing if tainted beef is in their freezer. We don't understand why the scare headlines were pushed out more than two weeks after the plant's closure and before a way of identifying retail purchases existed. What we do know is this that is a great tactic that buys everyone some time but still beats the wardrums of consumer safety.

Except in this case, consumers can do nothing to ensure their safety, if a threat even exists, because they can't identify any potentially contaminated food.

When news is made for the apparent sake of making news, one wonders about motivation. Wouldn't an announcement when the company voluntarily ceased operating almost three weeks ago have been appropriate? That's almost a month's worth of possible consumption allowed to go by when the company and the government knew there were potential safety issues.

We'll be addressing the issues surrounding the CPSC and Congressional attempts to legislate safety that seem oddly akin to the economic stimulus package, but for now, we'll just skip the burger for a turkey burger and wait to hear the all clear sign.

By our reckoning, that should be in May, just in time for a nice Memorial Day barbeque.

Weight Loss Lawsuits Continue [healthcare]

2008-02-12T08:52:00.000-05:00

The Federal Trade Commission is again chasing the makers of a reported weight-loss drug. This chase is court, however, and reminiscent of last year's actions against Cortislim and Xenadrine.

As American waistlines grow, marketers continue looking for the magic pill that replaces diet and exercise. Now a California company has been accused of marketing weight loss product that the government says are ineffective for weight loss.

The products are sold with the brand names Zyladex Plus, Questral AC, Questral AC Fat Killer Plus, Rapid Loss 245, and Rapid Loss Rx.

The federal agency says the marketing claims for these products are unsubstantiated and filed suit in San Francisco last week.

We reported over a year ago that the government filed complaints against CortiSlim and three other products. At the time, FTC Chair Deborah Platt Majoras said, "You won't find weight loss in a bottle of pills that claims it has the latest scientific breakthrough or miracle ingredient. Paying for fad science is a good way to lose cash, not pounds."

By October 2007, Cortislim customers had a settlement offer. The deadline for filing for redress in that case was October 27, 2007 (a good reason to subscribe to our blog if you missed it).

Meanwhile, we've contacted representatives for the defendant in this case and will share any comments they make about their products.

Smoking Cessation Drug May Cause Problems [health]

2008-02-04T11:35:00.000-05:00

The U.S. Food and Drug Administration is warning consumers using a medication doctors prescribe to help people stop smoking may cause behavioral changes, depression and even suicide. The federal agency said that Chantix is effective in helping people kick their cigarette habit but may pose serious mental health issues.

Chantix has been approved for use since May 2006 and amazingly enough can block the effects of nicotine in a smoker's brain if the smoker resumes smoking. That effect reportedly enables people to avoid smoking because neurological effects are neutralized. Now there is concern that Chantix also causes serious neurological effects beyond blocking nicotine's effects.

The FDA is working with Pfizer, Inc (NYSE: PFE) to create a patient guide and to change the medication's labeling so that warnings about the drug's use are more prominent. "Health care professionals should closely monitor patients for behavior and mood changes if they are taking this drug," said Dr. Bob Rappaport of the FDA in a statement.

Consumers were also cautioned to tell their physician about any history of psychiatric illness or changes in mood or behavior after using the drug.

Appraiser Sues Washington Mutual [finance]

2008-01-22T21:44:00.000-05:00

Jennifer Wertz is a home appraiser who began working for Washington Mutual (NYSE: WM) through a third party about 18 months ago. In court papers filed in Superior Court in California (Sacramento), Wertz claims that she was designated a "preferred" vendor whose work was "proven".

Since then, however, things have gone downhill, and now the financial giant has a David and Goliath situation that would naturally turn even uglier if other Davids (or Jennifers) showed up alleging similar behavior.

Wertz's suit against WAMU is neatly summarized in two allegations (#17 and #19 in her January 10, 2008 filing):

17. On or about May 21,2007, RICHTER [ed note: previously identified as a Washington Mutual Sales Manager] informed Plaintiff that a loan for which laintiff
had prepared an appraisal report had been declined because Plaintiff had indicated in her report "declining" market conditions. RICHTER insisted that Plaintiff change her appraisal report to indicate "stable" market conditions so that the loan could be approved. RICHTER, however did not provide any evidence to contradict Plaintiffs opinion and the facts supporting the decline of market conditions. RICHTER then told Plaintiff that if she did not change the appraisal report, that,she RICHTER would have Plaintiff blocked or prevented from doing any WAMU appraisal work.

and

19. On or about June 13,2007, LSI informed Plaintiff that Plaintiff had been blocked by WAMU, that WAMU would not give Plaintiff any more appraiser work because of two of Plaintiffs appraisal reports.

It has certainly be an old saw, if not an axiom, that home appraisers favored by lenders bring in high appraisals so that borderline lending situations are not quite so close. In our informal poll today, homeowners gravely nodded when we shared the story. Those who had refinanced believed that appraisers helped the process because they were friendly with the lender or wanted to stay in the lender's good graces.

The latter is simply poor judgment if it occurred. But what Ms. Wertz is alleging is much more serious. This would be the smoking gun zealous consumer advocates (yes, we're supposed to be one too, but we believe in stories having two sides) use to prove that the subprime mortgage crisis led to an economic crisis and was caused by greedy lenders.

And the ankle bone is connected to the.....

We still say greedy consumers had more than a share in creating this mess. Ms. Wertz's day in court will be interesting and closely watched, however, and heaven help us all if she is not the only appraiser to make similar allegations.

Saving Money On Your Electric Bill [finance]

2008-01-18T15:00:00.000-05:00

As the South gets hit this week with snow, prompting widespread panic and oil slowly retreats from its all time high, today's Arizona Republic has a great story with tips on how to save on your electric bill.

You likely know many, if not all, of these tips, but we thought the list was worth linking to although we still are not being into the notion that the economy is on the brink of recession. Still, electricity is expensive and folks with electric heat are really getting walloped.

We have a couple of quibbles with the Republic's list. For example, consumers are urged to "Enroll in a plan that averages consumption over the year, taking the seasonal swings out of electric bills." That idea often gets a lot of play and makes many financial planners recommendation lists. We don't like the idea for the same reason we don't like 15 year mortgages.

With proper financial discipline, consumers should not be paying more for electricity during because they do so at the peak. We're not thinking about some super-nifty pre-purchase of electricity at a locked-in price. We're thinking of the bill that runs $100 every month except for two months when it runs $200.

Under that scenario, a consumer pays eight $300 invoices ($2400) and four $600 invoices ($2400) -- a total of $4,800 for electricity in the year. Some financial planners and almost all utility plans urge consumers to pay a monthly average and may even offer a one time incentive to do so.

That is an awful idea. In our scenario, the consumer pays $400 each month. The notion is that the sting of the $600 bills will be mitigated. That's the same silly notion that causes consumers to overpay their taxes, giving the government an interest free loan, so they "get" a refund in the spring. Such plans simply cost your money.

To optimize your financial situation, plan separately and create a budget for each month. Save the extra $100 in an interest bearing account or some other way until its time to pay your utility bill. There is no reason to overpay a company for convenience.

The same holds true for a 15 year mortgage. Don't lock yourself into a higher monthly payment. Make sure you don't have a pre-payment penalty and then start paying down your mortgage every month. In that month where the kids needs braces, the washing machine breaks and you happen to have a $600 utility bill, that extra cash flow might help you.

The smartest thing to do right now to cut your heating bills? Make sure your home is properly winterized (no cracks, gaps, drafts, etc.) with storm windows where appropriate. Then have a good quality HVAC (heating and air conditioning) contractor check your system. Older systems are less efficient and can cost you more money. Don't fall for an automatic upgrade, but don't bury your head in the sand by thinking you can get away with if it ain't broke, don't fix it.

Check with your local utility. Many offer programs that let you buy new energy efficient appliances at discounts or even provide loan programs for them. If you can't pay cash, and the utility savings justify the cost, go ahead and take a loan. Your utility or credit union may even offer a low cost loan.

But whatever you do, don't pre-pay your electric bill. Pay bills (not loans, bills) when they are due, not before.

IRS Collection Agents For Hire Collect Less Than 5% Of Assigned Accounts

2008-01-11T10:19:00.000-05:00

We have railed against the Internal Revenue Service using private tax collectors for a long time. At the very least, having tax data in non-IRS control is just bad policy especially since we read every so often about the agency's own employees being terminated for snooping around tax files belonging to celebrities or neighbors.

We hate the notion that a collection agent, regardless of how many documents are signed, can be given access to the same kind of information. We know that the information is given when taxes are allegedly owed (although dispute issues still remain unclear), but having federal tax information in the hands of private companies incentivized to collect revenue gives us a bad feeling.

Things are looking up, however, because even IRS Taxpayer Advocate Nina Olsen reported to Congress that the private debt collectors are "falling far short" of the IRS' goals. We were worried about privacy issues, but we should have been worried about the program's management.

Olson reported to Congress that the private collection agencies only managed to collect $31 million of more than $180 million expected. Worse, the program cost more than it took in. The IRS sold this program to legislators by claiming that the program would generate $1.5 billion to $2.2 billion over a 10 year period. Right now, the program is only $1.47 billion behind for the next 9 years.

To her credit, Olson continues to call for the program to end. To buttress her argument, she shared that the collection agents are not required to divulge the scripts their agents use when calling potential debtors, or as we like to call them, citizens. The IRS is reportedly blind to the scripts used (which none of us who have ever hired a call center would ever allow) and the program continues on in 2008.

Are you outraged yet? Good. Contact your local legislators. If you're not sure who to contact, here are links for the House of Representatives and the U.S. Senate. Tell your representatives that you won't tolerate gross financial mismanagement, lack of accountability from private contractors doing government work you pay for and taxpayer information released to non-government employees.

Baltimore Sues Wells Fargo Over Mortgage Discrimination

2008-01-10T10:52:00.000-05:00

Kudos to Baltimore Sheila Dixon (left). When data reached the City of Baltimore that they believe showed a major finance company was targeting minority neighborhoods and creating foreclosures based on "illegal practices", they took decisive action and sued.

The City and Mayor Dixon didn't just find any old company to pursue. Instead, they filed suit in U.S. District Court against Wells Fargo & Company (NYSE: WFC), the $100 billion financial giant. The suit claims that Wells Fargo targeted minority neighborhoods and engaged in "predatory lending practices" including unsuitable products and terms and deceptive practices.

The result, the suit alleges, is that Wells Fargo "has one of the highest rates of foreclosure of any lender in Baltimore, and its foreclosure rate in majority African American neighborhoods is four times the rate in majority white neighborhoods, and twice the City average."

But Mayor Dixon and the government have not filed for damages alone. Instead, the suit will ask for punitive damages sufficient to cover past and future losses and enough "to deter" Wells Fargo from engaging in such behavior in the future.

Other suits from cities caught in a housing crisis caused by foreclosed mortgages are expected, including one from Cleveland versus multiple lenders.

Rate The Restaurant? How About Rating A Radiologist?

2008-01-09T10:38:00.000-05:00

Zagat, the favorite foodie survey company that has become ubiquitous online, has moved its technology to a new area -- health care.

Anthem Blue Cross and Blue Shield has announced that a partnership with Zagat that allows consumers to rate their physician experiences. Insurers and managed care companies have compiled physician and hospital metrics for years, and many web sites offering physician "report cards" have launched in the last few years, but the program links two brand name organizations in a new field.

The service will initially be available only in parts of Ohio, but with both companies having national partnerships, one can easily imagine the program spreading if successful.

The results can be a mixed bag, warns Consumer Help Web's George Bounacos. "We find that extreme emotions, either positive or negative, compel people to review or comment on goods and services," said the consumer advocate. "There is a danger inherent in crowd rating versus traditional market research that bias can move the results to consumers who feel strongly about a physician one way or another."

Bounacos advises that the ratings should be a part of a consumer's research and not serve as the only measure to determine whether someone should see a specific physician.

PeoplePC To Issue Refunds

2008-01-08T11:30:00.000-05:00

New York Attorney General Andrew Cuomo continues following on the heels of Governor Spitzer, who used crusading as an AG to successfully run for Albany.

New to Cuomo's resume is a victory over PeoplePC, an Earthlink (NASDAQ: ELNK) subsidiary that also partners with AARP. Cuomo accused the company of making false and deceptive statements that resulted in consumers being overbilled.

More than 50,000 New Yorkers may now be eligible for refunds and one wonders if other states will jump on the bandwagon. New York consumers have until May 8, 2008 to file a claim, which Cuomo's office says should be done directly with the company.

If you think you're eligible, the claim form can be downloaded from the New York government's site. How do you know if you're eligible? Cuomo's office says, "New York customers who incurred charges by using telephone access numbers suggested by PeoplePC are encouraged to submit claims for refunds."

That's good enough for us. Give it a shot.

Airline Service Improves During Last November, Government Says

2008-01-03T15:55:00.000-05:00

As consumer reports begin to filter to Consumer Help Web about holiday travel horrors, the U.S. Department of Transportation says that November 2007 airline performance was better than in the past.

November, including that awful Thanksgiving travel period, had fewer delays (20%, down from 23.% a year ago and 21.8% the prior month) and fewer cancellations (1% versus 1.6% a year ago and 1.2% in October).

Even more astonishing with full flights criss-crossing the country was that the missing luggage rate plummeted. Despite the improved performance, complaints rose more than 30% from the prior November. Also not discussed in the government report was the Bush administration's decision to open air corridors typically reserved for the military during the peak Thanksgiving time.

So which airlines were the best and worst?

The airline arriving on-time most often were:

1. Hawaiian Airlines -- 92.4 percent
2. Aloha Airlines -- 91.6 percent
3. Delta Air Lines -- 85.6 percent

Atlantic Southeast Airlines posted the lowest mark of all airlines with a 76.7% rate.

In a marked improvement from their horrible February, JetBlue joined the ranks of the airlines canceling the fewest number of flights:

1. Frontier Airlines -- 0.1 percent
2. Continental Airlines -- 0.2 percent
3. JetBlue Airways -- 0.2 percent

The highest rate of cancellations, meanwhile, was Mesa Airlines, which canceled 2.9% of all flights.

But what about specific flights? There are some you may want to consider based on their November 2007 performance. According to the Department of Transportation, the most frequently delayed flights:

1. ExpressJet Airlines flight 2979 from Hartford, CT/Springfield, MA to Newark, NJ -- 88.5%

2. Continental Airlines flight 1532 from Houston Bush to New York LaGuardia -- 87.5%

3. ExpressJet Airlines flight 2076 from Newark, NJ to Indianapolis -- 85.2%

3. Mesa Airlines flight 7462 from Washington Dulles to New York LaGuardia -- 85.2%

5. American Airlines flight 350 from Chicago O’Hare to New York LaGuardia -- 83.3%

5. American Airlines flight 1497 from Newark, NJ to Chicago O’Hare -- 83.3%

5. ExpressJet Airlines flight 2717 from Newark, NJ to St. Louis – 83.3%

Millions of Consumers Face Tax Filing Delay

2008-01-02T13:30:00.000-05:00

If taxes are, along with death, certain, than consumers anticipating a refund are also almost certainly anxious to file as soon as possible each new year.

Tax refunds are never a good thing. Receiving a tax refund means that a consumer has essentially given the federal government an interest free loan. Worse, if the consumer is carrying debt and uses the refund to help pay that debt, accruing interest could have been avoided by having the proper amount withheld.

Yet another wrinkle occurs when consumers are subject to the Alternative Minimum Tax (AMT). As a result of tax code changes enacted in December, the rules covering who is affected by AMT and by how much have changed. IRS computers will need to be re-programmed according to the tax collection agency. As many as 4 million consumers could potentially be affected by these changes, with the biggest change being that their federal returns cannot be filed until February 11, 2008.

That date is being called a "target date" by the IRS and is obviously subject to change. Consumer Help Web will keep you posted on new announcements.

More tax return delay information is available at the IRS site.

----

Important Note: This information is presented for news and information purposes. Consumer Help Web, Inc. is not a tax preparation entity, nor is this legal or financial advice. Consult your tax advisor or the Internal Revenue Service for more information on how this delay could impact you.

CPSC Lowers Boom On HSN For Failing To Report Safety Issues

2007-12-28T16:16:00.000-05:00

The US Consumer Product Safety Commission says that HSN will pay an $875,000 fine for failing to report safety issues regarding its sale of The Welbilt Electronic Pressure Cooker (pictured left)

HSN, which was known as Home Shopping Network during the 2001 to 2004 time period in which the government agency said the offenses occurred, denied any wrongdoing or liability. The law requires manufacturers and distributors to immediately report safety issues.

The company's actions were termed a penalty, rather than a fine, but the results are simple semantics. The CPSC claims that the company received more than two dozen reports of consumers who were burned when the cooker's lid allegedly opened prematurely. The agency worked with Welbilt and HSN in 2005 to recall nearly 4,000 units in 2005. Those cookers were made in Korea.

"This simply shows that even a small recall can have major repercussions," said Consumer Help Web's George Bounacos. "We have been trained to think in terms of millions or hundreds of thousands, but in this case, the reported injury rate was more than 1 out of every 170."

Bounacos' comments came during his announcement of a new recall information portal for consumers. "Too many agencies announce recalls and investigations for the average consumer to learn about them all. Even when stores do comply, the second-hand market for used goods thrives, from eBay to consignment shops. RecallRecap.com will help consumers quickly check for free whether the product they're interested in was recalled, and if so, for what reason."

Senior Scam Halted In Time For Christmas

2007-12-27T10:50:00.001-05:00

California's Attorney General and Insurance Commissioner wrapped up a long-running lawsuit in time for the Christmas holidays.

In announcing a $7.2 million settlement with multiple organizations, the California AG's office did what few do in such settlements. $5 million of the settlement will go to restitution with $1 million fines for two different companies.

The scam worked like this:

California officials said that the companies tricked senior citizens into buying annuities—long-term financial vehicles with high penalties for early withdrawal. The annuities offered the possibility of future payments, but only after a lengthy surrender penalty period. Because of their long window to mature, California officials said the investments were not typically suitable for senior citizens.

One of the companies, Family First Insurance, reportedly sent sales representatives, who were not authorized to practice law, to senior citizens’ homes to provide legal advice on estate planning. Those representatives naturally did not disclose that their ultimate goal was to sell annuities. After preparing the living trust documents the agents returned to the seniors’ homes—under the guise of acting as their financial or estate advisors—and induced the seniors to move their liquid assets into annuities.

Family First will be forced to cease operating according to California officials, who offered some solid advice for consumers in the wake of the problems.

* Consumers should be wary if someone claims to a trust expert, senior estate planner or paralegal, or to work with an attorney who is an expert in estate planning. These agents are not attorneys and not experts in living trusts. If seniors need assistance with preparing a trust or other estate plan, they should seek out their own attorney whose expertise is in estate planning.

* Be wary of free seminars or sales presentation on living trust services.

* Use caution if the representative asks for access to your personal financial information while setting up or updating an existing living trust. Agents use this ploy to ultimately pitch annuity investments.

* Some may also criticize existing investments, saying that these investments carry more risk than the annuity.

* And finally, a big warning bell should go off if someone does not discuss the drawbacks of a particular investment option.

Saturn Now Requires CARFAX

2007-12-21T09:41:00.000-05:00

Saturn has announced that checking a CARFAX Vehicle History Report is required before a Saturn dealer can "certify" a used vehicle.

Certified pre-owned programs (CPO) are becoming an industry norm as manufacturers with late model inventory seek to remove the stigma of a used vehicle and bolster prices. Saturn, like pricier European models, is known for reliability and durability, but that doesn't necessarily mean that a specific vehicle is safe or roadworthy.

Using a CARFAX report along with a mechanic's inspection remains the company's mantra, and the advice is sound. Meanwhile, part of the work will already be done for Saturn buyers now that dealers are required to check the CARFAX report before selling the vehicle as "certified".

The majority of certified used vehicles sold in the United States must now be checked through CARFAX.

If This Is The Season, You're Already Shipping Too Late

2007-12-20T15:02:00.000-05:00

Consumers write us every year, frustrated to the point of anger or tears, because a merchant missed a delivery date. It happened to us twice this year, most recently with 1800Flowers.com.

Our reviewer Lynn Kvigne called out this florist for glitches, but did admit that the merchant tried hard to recover. They did the same with us again this year, missing an order we placed yesterday for "same day delivery". The merchant does provide a telephone number, and they did agree to have the florist re-route the delivery to the recipient's home, but consumers make this purchase because they need something there on the same day.

We see this happen every year with the delivery services like FedEx and UPS also. Remember two things:

1. It's December 20 and you don't have any of their official shipping days left before Christmas Eve.

2. The overnight and special delivery fees are not guaranteed during this time of year.

Think of the guarantee as akin to an airline's weather or mechanical delay. Just as the airline is not responsible for a delay then, UPS, FedEx and the others will not be responsible for a delay now. That's not to say you shouldn't make use of them. Get there now. But also understand that your package may still not get there, and it's not their fault.

We actually meant to post this earlier this week, but delays happen. You see how it is?

Sprint Nextel Moves To Fix Customer Service Issues

2007-12-19T15:24:00.000-05:00

Sprint Nextel (NYSE: S) tapped former AT&T Wireless executive Daniel Hesse for the second time to help manage the company. Hesse spent most of his career with AT&T before joining Sprint and spinning off the company's Embarq subsidiary over a year ago.

Hesse is joining Sprint Nextel as CEO after the company's bets on Wimax technology and a reputation for customer service problems have halved the company's stock price from the low $20 range to well under $10 now.

Nextel, before merging with Sprint, went through a similar dry spell before its then new push-to-talk technology and merger buttressed the company's fortunes. Sprint Nextel received more complaints in 2007 than any other wireless carrier, said Consumer Help Web President Joan Bounacos, who praised the company for being "responsive" when contacted by the company's complaint letter writing service.

Like Twitter? Like T-Mobile? They May Not Be Good Together

2007-12-17T13:36:00.000-05:00

We have always thought T-Mobile an outstanding wireless company. They are consistently responsive to us when we send complaint letters, and they get far fewer than any other wireless carrier.

We're not so sure about Twitter. One of us is a big fan, one keeps trying to be and the rest of the folks want to know about their content areas. Still, learning about T-Mobile's stance today regarding Twitter was a dash of cold water in the face reminiscent of that brief horrible period when Intuit turned its back on special service and almost killed Quicken.

Irreverent but usually darn accurate Silicon Valley site Valleywag wrote yesterday about T-Mobile refusing to allow text messages to Twitter's service. A blogger apparently tried a net neutrality argument, but that was quashed by the executive response team. Instead, it appears that the tech contingent (the gang who first made the Sidekick go viral and sell big) will do the company's reputation more harm than any philosophical argument.

Why is this seemingly tech-oriented battle important for consumers?

The answer lies in what we told a client today. There will be millions of new cell phones with web capabilities unwrapped around Christmas trees next week. T-Mobile's representative wrote in response to Twitter:

"... some Services are not available on third-party networks or while roaming. We may impose credit, usage, or other limits to Service, cancel or suspend Service, or block certain types of calls, messages, or sessions (such as international, 900, or 976 calls) at our discretion."

Knowing what your carrier provides is one of the keys to making that new wireless purchase a winner. Read the fine print before you wrap the present.

When Do Not Call Means Forever

2007-12-12T23:43:00.000-05:00

Remember that nifty "Do Not Call" list you registered for some time ago with tens of millions of your best friends? We're betting you didn't know that there was a time limit involved.

It's true. The original program was only designed as a short-run measure. Now the House of Representatives wants to make it permanent and has overwhelmingly voted to make the status permanent and continue funding operations from telemarketing firms. These are both good measures that are long overdue.

But don't forget that certain calls are exempt. They include calls from businesses with which you have established or continued a relationship, charities, and our favorite, political calls. The CCD, a non-profit group in Washington, is continuing its efforts to compile a do not call list that would be voluntary for politicians. As the 2008 presidential elections come up next year, we can't think of any smarter move you can make since registration is free. Visit StopPoliticalCalls.org to add your name to the political do not call list.

Kudos To Amex On Their New Resolution Policy

2007-12-11T20:57:00.000-05:00

This move will be unpopular with merchants of every stripe (although we've never had a chargeback at Consumer Help Web so we don't mind...), but American Express' new "billing inquiry" resolution process improves an already good process.

Amex used to flag the funds in question, ask the merchant or member to supply documentation and then make a decision. Now the burden of proof is strictly on the merchant (as it should be in any billing dispute) and the process can be initiated online in addition to phone.

Capping the entire process is a fairly long satisfaction survey to gauge the customer's reaction to the process. The financial services company says it will make a donation to the American Cancer Society for each completed submission and has donated over $400,000 so far. We understand enough about marketing to know that there is a cap and that the value of an individual survey may not be much.

That said, whenever a company tries something new and asks if you like the new process or procedure, you're being a smart consumer to vote. In the world of customer sampling, even a handful of votes can garner lots of upper management attention. Make sure they hear your voice.

Our Take On The Mortgage Crisis

2007-12-10T14:35:00.000-05:00

Last week, House Democrats defied the Bush administration's veto threat and rammed through H.R. 6, energy legislation that would change fuel economy requirements for cars and light vehicles over a 13 year period.

Among the arguments raised by the White House and Senate Republicans was that the bill legislated a free market economy.

We thought that was an interesting excuse then because the U.S. does not have a free market economy, despite any political rhetoric to the contrary. Yet the subprime mortgage issue apparently required federal government intervention in those very same markets, which leaves us with a single question.

Why?

Overextended consumers in danger of losing their homes is a terrible plight. Equally terrible are the tens of thousands of innocent consumers now on unemployment in time for the holidays because they worked for large financial institutions who gave credit to greedy consumers.

Yes, greedy consumers. "But I didn't know (or think) the rate would change that much," is the most common rallying cry. We're sure that is true because our discussions with consumers show that most don't spend long enough during their mortgage closing process to actually read, much less understand, the documents on what is typically the largest purchase of their life.

We listened to these same consumers crow about their low, low rates while stodgy conservative consumers clung to 30 year fixed mortgages and vowed to reduce their overall interest expense by voluntary rather than mandatory pre-payment as in the accelerated 15 year mortgages. We likewise saw many consumers opt for interest-only notes. Many of those consumers now have no equity left in their homes, which financial planners tell us often funds a major portion of a person's retirement nest egg.

Any financial institution who did not fully disclose the maximum interest rates and payment schedules should face civil, and as necessary, criminal penalties at an individual level. But consumers who just guessed wrong and traded 36 lower payments until a rate reset don't deserve and shouldn't receive federal intervention. No matter what assurances government officials make, the market is too symbiotic for these measures not to impact the overall consumer mortgage market.

Bad financial planning by greedy consumers shouldn't be protected at the expense of fiscally prudent consumers who did their homework and chose not to speculate with their home. For consumers who were told the odds and gambled (much like a lottery or slot machine) with their home, we have sympathy, but a bailout is the wrong message to send to our financial trading partners throughout the world, to our independent businesses and to our younger consumers who have now learned that engaging in the latest financial fad may not have repercussions.

Reinforcing that lesson may be the biggest problem this debacle caused.

Know Before You Buy - CompUSA To Close After Christmas

2007-12-08T12:32:00.000-05:00

After acquiring privately-owned computer retailer CompUSA, the new owners have announced plans to close the company's stores.

This is important news for consumers who purchase holiday gifts at those stores. Returns, refunds and exchanges may not be possible after the holiday depending on how fast the company moves to sell store locations and close the retail business. If the chain is even still selling gift cards, we would hope that full disclosure of the chain's pending demise is printed on the card.

Gordon Brothers, a well known equity firm that also owns Things Remembered and Toys R Us among other well known brands, made front page news throughout the country today with its announcement to close the large computer store's retail operations. We think it is incredibly irresponsible, however, that neither the new owner's site nor the main CompUSA site included any of this important consumer information 24 hours after the deal was announced.

One wonders how this lack of information was created in an age of push-button technology, instant messaging and the ability to publish data on the web within minutes. In the absence of a simple message reassuring consumers that their purchases will be protected for a certain amount of time, we can only advise the well known axiom, caveat emptor, buyer beware.

Forget Mortgages Now. One Agency Tells You (Free) 51 Ways To Save

2007-12-07T08:30:00.000-05:00

As the government interference in the free market mortgage economy sorts itself out over the coming hours and days, we'll share our thoughts on this big piece of consumer news. There are still several battles looming and today's Wall Street reaction before a true temperature can be taken of the unilateral government actions being taken.

Meanwhile, the FCIC, one of our favorite federal or local agencies, does an excellent job with a new publication on saving on loans and credit cards. As always, the agency and its content partners do a great job describing an issue and its solutions (or prevention) in plain ole' English.

(from their release)

For many, nothing says the holidays more than shopping: hitting the sales, taking in the sights, searching for the perfect gift for everyone on your list.

But it's very easy to shop yourself into more debt than you can handle. This year, resolve to keep your expenses in check and your credit intact -- it's a gift you'll appreciate the whole year through.

Check out 51 Ways to Save Hundreds on Loans and Credit Cards from the Federal Deposit Insurance Corporation (FDIC) and the Federal Citizen Information Center to get advice you can use now and to start the new year off right.

BUDGET: Set a budget whenever you shop. Decide how much you can spend, and don't go over that limit. Paying with plastic? Look at how much you already owe on your cards. One of the quickest ways to run up debt is to only pay the minimum amount owed on your credit cards. Late fees add up, too, and so does going over your credit limit. 51 Ways to Save has other helpful tips for paying less in credit card fees and interest.

BEWARE QUICK CASH LOANS: Proceed with caution if you're looking for quick cash for a shopping trip. Car title or "payday loans" can get you money fast, but they come at a steep price -- the interest rate on a payday loan can be as high as 391 percent! Instead, start a savings account where you can put just a little bit from each paycheck throughout the year. You'll have saved plenty for gifts in time for the next holiday season. If you're considering other loan options for extra cash (like a home equity loan), make sure to check out 51 Ways to Save to learn how to shop for the best deal, compare Annual Percentage Rates (APR) and read the fine print to save even more.

You can get 51 Ways To Save three ways (four, if you count sending us a $25 money order...we're just joking, don't do that)

* Send your name and address to 51 Ways to Save, Pueblo, Colorado 81009.

* Visit www.pueblo.gsa.gov/rc/n7051waystosave.htm to order online or to read or print these and hundreds of other Federal publications for free.

* Call toll-free 1 (888) 8 PUEBLO weekdays 8 a.m. to 8 p.m.

House Votes Green, But White House Threatens Veto

2007-12-06T16:57:00.000-05:00

Don't count on decreasing your dependence on traditional energy sources based on legislation approved in the House of Representatives today.

The Democrat controlled House passed H.R. 6 less than an hour ago. This legislation jumps fuel economy requirements from 27.5 miles per gallon to 35 miles per gallon and increases the tax burden on traditional energy companies. Rolling back the previous tax credits is earmarked to investigate alternative energy sources such as wind and solar. The fuel economy requirements, called CAFE requirements, would be phased in over a 12 year period.

Except Senate Republicans and a defiant White House are promising the bill will never become law. Original author Rep. Nick Rahal (D-WV) and 198 co-sponsors ensured the bill, introduced at the beginning of 2007, would easily pass the House.

The bill had not yet been passed when the White House released a statement saying that H.R. 6 "...would raise taxes and increase energy prices for Americans. That is a misguided approach and if it made it to the President's desk, he would veto it."

Despite the promised veto and the threat that Senate Republican leaders might even manage enough votes to keep the bill from going to the White House, the House moved quickly after threatening the legislation all week.

"This showdown over energy happened along party lines," said Consumer Help Web COO George Bounacos. "Things are now politicized to the point that the Bush administration refers to their concept as 'energy security' and the House bill approving the Senate's earlier amendments refers to 'energy alternatives.' While they argue over words and taxes, nothing changes and consumers still face huge price increases at the gas pump since that remains our primary fuel source for personal transportation."

Strong lobbying groups for the automobile manufacturing and energy industries kept the bill stalled almost to the holiday break. With the House's work now down, CNN is quoting Senate Democrats who say they will introduce the legislation as early as 48 hours, even calling back candidates involved in the 2008 Presidential election process.

Oil prices jumped $3 higher today, once again crossing the $90 mark.

FTC Closes Envelope On Work-At-Home Firms

2007-12-05T16:47:00.000-05:00

The Federal Trade Commission has announced the conclusion of cases against firms targeting "work at home" employers. We wrote about the initial FTC charges earlier this year.

Since then, the federal agency has amended its complaint and judgments have been entered against multiple defendants at an individual and corporate level. The new FTC statement does not accuse any of the entities of wrongdoing, but instead says that monies were received when that they were not entitled to.

We believe that more important than any particular fine or criminal case the agency could have pursued through the Justice Department is the warning sent to the lucrative industry of luring unsuspecting consumers into an arrangement where the consumer not only doesn't make any money, but often is the only party paying any money. With repeated crackdowns, those engaged in improper business activities designed to cheat consumers have clear notice from the federal government that consequences will occur when caught.

Meanwhile, if a work from home or envelope stuffing deal sounds too good to be true, call your state's local employment commission and your local or state consumer protection office to check out the company before doing anything. Deals that sound too good often aren't good.

Levin Committee Opens Hearings On Credit Card Interest Hikes

2007-12-04T16:27:00.000-05:00

Powerful Senator Carl Levin (D-MI) opened Senate hearings today that put credit lending giants on notice that sudden rate hikes would soon come under greater scrutiny.

Levin chairs the Subcommittee on Investigations under the Homeland Committee and criticized the industry from the credit bureaus to the credit lenders for a lack of transparency in the process. Citing multiple examples in which the interest rate on a consumer's credit card could suddenly and retroactively increase, Levin announced that the Subcommittee would review the process.

Using the occasion to describe legislation he has been co-sponsoring with Senator McCaskill (D-MO) almost all year, Senator Levin said, "When a credit card issuer promises to provide a cardholder with a specific interest rate if they meet their credit card obligations, and the cardholder holds up their end of the bargain, the credit card issuer should have to do the same."

Amen.

The Michigan senator referred to the mysterious FICO credit scores many lenders use to determine interest rates and said that he would advocate that the underlying data used to generate those scores be kept so that a consumer could challenge an increase. Consumers currently are advised of an increase, but Levin said that many are unaware of the increase's trigger, including spending within an individual account's limit, but at a higher percentage of that limit.

Senator Levin chastised lenders and called the practice "offensive".

We think this is the first step in more transparency to credit reporting laws, a long overdue overhaul of how lenders operate now. We certainly don't expect lenders to issue credit to bad credit risks and we respect a lender's light to charge a premium interest rate to protects itself when granting credit to consumers with poor credit.

But full disclosure in plain English with no retroactive increases makes sense to us too. And if someone is issued a credit limit by a lender, their interest rate on another account shoudn't rise if the consumer spends that money. Credit is a privilege, not a right, but consumers ultimately pay for that privilege through interest, card fees and higher prices when merchants have to keep prices higher rather than absorb the fees credit card companies charge them for each transaction.

Cheers to Carl Levin. Read up on S. 1395, (pdf file) and call your own Senator about signing on to the bill. This is a good one.

How To Know Your Email Card Is Safe

2007-11-28T15:25:00.000-05:00

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.

Check Gift Card Terms Before Buying

2007-11-26T14:30:00.000-05:00

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.

Music Exec Says Industry "Went To War" With Consumers

2007-11-22T12:20:00.001-05:00

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.

Texas Goes Greener, Tests Lowering Consumer Power Use and Bills

2007-11-21T13:39:00.001-05:00

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.

FDA Finally Moves On Avandia

2007-11-20T11:06:00.000-05:00

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.

Congress, Media Continue CPSC Attacks

2007-11-19T14:18:00.000-05:00

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.

Microsoft Will Help Parents Limit Video Game Time

2007-11-15T10:09:00.000-05:00

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.

Traveling Consumers Should Expect Thanksgiving Crush

2007-11-13T13:13:00.000-05:00

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.

Florida Cyberfraud Unit Cracking Down, Web Marketer Pays $1 Million

2007-11-12T13:23:00.000-05:00

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.

Merck Makes Settlement One Month After Consumer Help Web Predicts

2007-11-09T08:42:00.000-05:00

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.

Frustrated Shopping Online? You're Not Alone

2007-11-08T12:44:00.000-05:00

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.

FTC Nails Big Companies On Do Not Call Violations: Craftmatic, ADT and Ameriquest Among Targets

2007-11-07T13:49:00.000-05:00

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 c onsumers 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.

Credit Problems? Freeze!

2007-11-06T16:21:00.000-05:00

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.

Food Recall - Critical One Million Pounds Ground Beef Recalled

2007-11-03T21:11:00.000-04:00

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

FTC Warning: Don't Open Our Mail

2007-11-01T16:59:00.000-04:00

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.

Stripped Down CPSC Continues Struggling

2007-10-31T08:32:00.000-04:00

In various recall notices, we have repeatedly said that now is not the time for recriminations about the recall process in the U.S. Apparently House Speaker Nancy Pelosi (D-CA), where CA most definitely does not stand for consumer affairs, is calling for CPSC head Nancy Nord (pictured) to resign.

The entire recall system is broken, but it's not broken because of anything Nancy Nord did or didn't do. It's broken because years of budget cuts cut the agency to shreds. It's broken because the CPSC doesn't have control over things the USDA and FDA control. It's broken because consumerism was stripped out of the federal government when the Office of Consumer Affairs was shuttered almost a decade ago. While OCA didn't recall items, they were one more official voice that could summon resources for consumers.

So the OCA is killed off, the CPSC's budget is torn to shreds over years and suddenly Representative Pelosi wants Nancy Nord to resign? Why? Apparently the issue stems from Nord's comments to not overwhelm the agency's infrastructure with money and resources now, but to let them create a cogent plan to increase resources and responsibility.

The political grandstanding has no place in this debate. One does not right a decade of wrongs by writing a check. You don't double an agency's budget in a dysfunctional federal government bureaucracy and then scream for scalps when caution, prudence and good planning is suggested.
Here is an idea for consumers reading this today. Call someone who represents you in Congress and urge them to support the CPSC, but to give them time to create a strong moving-forward plan. If you happen to be a big donor to political campaigns, reminding the office of that certainly wouldn't hurt.

You can call Representative Pelosi's office too. Faced with multiple defeats and the inability to muster enough votes to override a lame duck President when she has control of the House, the Speaker is now going after soft targets.

She ought to be ashamed of her behavior. The CPSC does need help and does need reform. Getting rid of people who actually know what is going on is not the way to do that.

Weeks Later, Graco and Simplicity Offer Crib Repair Kit

2007-10-30T14:31:00.000-04:00

We wrote over one month ago about three children who died while in their cribs and the manufacturer's impending recall. We also offered then as we do now to help any parent for free if they experience difficulties in having the manufacturer assist them with the crib recall.

Simplicity is now offering a free "repair kit" for Simplicity and Graco branded cribs. Consumers must register with the company to get the kit. The site is at simplicityforchildren.com. Parents can also call the company toll-free at 888-593-9274.

Although the launch of our recall site is days away, this issue bears repeating for all consumers. If you forwarded our last blog about this problem to parents, please make sure they have the updated information too.

Countrywide Goes Proactive

2007-10-29T07:19:00.000-04:00

We're still not backing down from pushing a healthy dose of the blame for the mortgage crisis on consumers who overextended themselves. When a recent piece on Capital One aired, an middle-aged couple explained how the credit card giant kept offering them cards even though they were overextended and couldn't pay their existing cards.

Let's be clear, and let's be smart consumers.

Stop digging when you're in a hole. The slanted piece somehow blamed CapOne instead of irresponsible consumers who kept applying for credit cards they couldn't afford to pay. The same issue is rampant in the subprime mortgage crisis that is damaging the American economy. Banks and financial institutions sell mortgage and other financial products. If you can't afford them, you shouldn't be applying, much less accepting, them.

That said, Countrywide Financial (NYSE: CFC), the nation's largest mortgage lender, has announced that it will proactively rewrite more than 80,000 mortgages. The amount is an unfathomable number with a lot of zeroes. This is after Countrywide was forced to grasp at an $11 billion line of credit offered by Bank of America and after thousands of people lost their jobs.

Consumer advocates have been excessively critical of the mortgage lending industry for making loans to consumers who may not have been unable to pay them back. We think that forces too much responsibility at the business world. If a consumer has diabetes, one shouldn't sue the baker for making lovely cakes and pies available. Likewise, if a consumer has a driver's license that restricts night driving, don't go after the auto manufacturer for putting headlights on the car.

Consumers knew or should have known the risks involved with a variable mortgage. Many seemed positively snobbish about the low, low, low rates they were receiving. The smart consumers we knew all either planned to sell before the first adjustment period and needed a place to park the proceeds of their previous sale or locked into a fixed rate.

We're reminded of one of the smartest people we know who once asked us, "Should I apply for a 30 year or 15 year fixed mortgage?" Our answer remains the same: why lock in a higher rate when, with discipline, you can create even less than a 15 year mortgage provided you don't have a pre-payment penalty for some reason.

This is all opinion from consumer advocates, not financial advice from any sort of planners or consultants. You should talk with a professional before becoming involved in a mortgage. And if you can't afford one, look in the government listings of your telephone book for a local or state agency who can help you.

But don't sign for a mortgage you may not be able to afford in the future and then chastise the company for offering you the opportunity. Perhaps the biggest part of being a smart consumer is knowing when to say "no". And if you don't have the knowledge, find a professional who does.

Meanwhile, hats off to Countrywide for being a smart consumer-friendly company. Yes, they are taking a licking from those who want to blame the fast food restaurant for serving hot coffee. We prefer consumers take more responsibility and let us help them fight the battles against the companies who do them wrong.

If you think you were hurt in this recent financial crisis, think of the consumers who no longer have a job because Countrywide laid them off. And think of the small investors who owned CFC as part of their retirement funds, and saw the healthy stock's value get halved.

And put down the doughnut unless you're planning to work out later.

Chasing Your Domain Name

2007-10-25T07:52:00.000-04:00

If you have bought a domain name to use on the web for business or personal reasons, you have undoubtedly seen what looks like a bill for renewal.

We are not singling out any one company yet, although there are three on our radar now. This "bill" is actually a renewal notice, and like the telephone "slamming" of the 1980s (when shady phone salespeople would switch your service to another carrier after deregulation), this is simply a scam. We try to look at things from a businessperson's point of view to be fair, but there is no good reason for this kind of program.

The envelope looks official, and is addressed to the person listed as the domain's administrative contact. Sometimes, there is a flag on the envelope to evoke officialdom. There is always a very professional, very business-like font and notice. If you don't read every line carefully, you might just think the letter is your registrar's notice.

Guess what? We have used four different registrars, including two of the nation's biggest, in the last four years. Not a single one ever sent us mail. They sent email -- that's how they communicate, being Internet companies and all.

Here is what will happen if you renew your domain registration through the mail with one of these companies:

You will lose your original registrar and switch to this new company.
You will be offered services you don't need like "domain submission".
You will overpay. You will overpay a lot.

This last point is especially troubling. In an offer we received at Consumer Help Web this week, we were offered the opportunity to renew one of our domain names for $35, and we didn't even have to send money now. That's lovely, except that our domain registrar already bills our credit card automatically, all our domains automatically renew and the wholesale cost of a "dot com" renewal is just over $6. We pay $6.99. Prices up to $9.99 are fine. After that, someone is making too much money for what is essentially a commodity.

So if you get a solicitation in the mail for a domain you bought to show of your family's photo album or write a blog, ignore the mail and contact the company you used to register your domain. Chances are good that you have already signed up for automatic renewal. Then take out your financial calendar or budget (you do have one, right?) and enter the domain renewal as an item 30 days before it is due to expire.

Sometimes the mail brings bad things. Domain renewal offers are one of them.

Political Do Not Call Registry Launched

2007-10-24T17:10:00.000-04:00

Tens of millions of Americans signed up for the original do not call registry. One of the exemptions they may not have known or cared about at the time was regarding political calls. Still another is that registration is good for only five years meaning most people need to sign up again next year.

A new registry to supplement the FTC's list is now operational, and organizers hope that politicians running for hundreds of offices nationally in 2008 begin making use of the non-profit's service. "I started the registry to improve the quality of life for the average American during the election season,” said Shaun Dakin, the registry's founder and CEO.

Dakin cites multiple studies to explain why this kind of registry is necessary. Perhaps the most telling number is that 64 percent of voters received a call (sometimes known as a "robo-call") during the final weeks of the 2006 election according to a Pew Internet market research study. One can only imagine the call frequency increasing during a presidential race.

The best part about the new National Political Do Not Call Registry is its price: free. Voters simply visit the site to register a free political do not call request. Unlike the FTC, this registry cannot force candidates to honor a request, but as Dakin points out, "Political candidates understand numbers."

That they do. If a consumer takes the time to tell a political candidate they don't want to be called, yet they continue receiving calls, one would expect the candidate's vote to be at risk.

==============

Disclosure: Consumer Help Web co-founder George Bounacos assisted the registry as an advisory board member.

Federal Delays Keep Piling Up, But No OTC Cold Meds For Kids Is Official

2007-10-20T07:44:00.000-04:00

We were outraged last week when the federal government said it would delay hearings on the safety of children using OTC cold medicine.

This is why the federal government either needs better, faster regulatory and investigative resources or some sense of urgency. The public knew that this was an issue days ago. The medical community apparently knew months, if not years, ago. Even the companies that made the over-the-counter meds specifically for kids yanked them off the shelves before the hearings.

If an organization the size of McNeil (makers of Tylenol, St. Joseph Aspirin, Mylanta and others) can mobilize to pull medicine from retail shelves all over the country, why does it take a much smaller organization one week to pull together hearings? Why weren't there hearings the next day? What about the weekend? We work weekends sometimes. Do you? Why doesn't the FDA?

And if they do, where is the sense of urgency? We are happy to recognize the makers of the OTC medicines for children for acting fast while still wondering what they knew about this issue going into the fall of 2007. The FDA alone is not culpable. The USDA botched their recall of the tainted pot pies just weeks ago when everyone from the manufacturer to the CDC to the retailers yanked the food from the shelves.

Federal government must act faster. This is why Federal Express is used rather than the USPS when it absolutely positively has to be there overnight. This is why passport regulations are enacted and then lifted when family vacations and critical business trips were destroyed. No organization is perfect, but most private sector companies have some sort of disaster or crisis contingency plan. Our government is charged with many things and does well with some of them. Where they continue missing in the Year of the Recall is speed to take action.

Consumer safety continues to get short shrift, and that cannot continue.

IRS Private Tax Collectors To Stop Activities

2007-10-17T23:22:00.000-04:00

We told you two years ago about the IRS retaining private debt collectors for income tax. The House of Representatives, led by rising Dem star Chris Van Hollen of Maryland, voted by a wide margin to end the program.

Van Hollen used strong words when speaking against the program, which was controversial from its inception and suffered from higher than anticipated start up costs. Republicans claimed the program had not been given enough time to work while Democrats said the initial results precluded the program from continuing.

When we spoke with consumers, most were less concerned about a private agency collecting money owed the government, but expressed uneasiness over tax records, even if only the amount due, being shared with a non-governmental agency. As one taxpayer told us, "What if the person is appealing the tax bill or fighting it? The IRS already makes enough mistakes. I wouldn't want them telling collection agencies I was a deadbeat."

Swanson Continues Consumer Crusade

2007-10-16T11:52:00.000-04:00

We remain big fans of Minnesota Attorney General Lori Swanson.

All AGs are supposed to understand consumerism and issues facing their constitutents. A few (New York Governor Elliot Spitzer comes to mind) ride the crusading wagon straight into a governorship or higher elected office. New York's Andrew Cuomo, who succeeded Spitzer, seems to be taking this route as well.

We're bipartisan -- Republican Rob McKenna is also doing great things in Washington (state) as is former California AG Bill Lockyer. Beyond political ambition, we're not quite sure why Lockyer moved from AG to State Treasurer, but unlike McKenna and Swanson, he often seemed to swing for the fences instead of consistently hitting singles and doubles.

Swanson, who has to be considered an up-and-comer for any Democratic post or consumer advocacy position. Her current role has proven to be a fertile jumping-off point. Hubert Humphrey's son occupied this spot, as did Walter Mondale.

Her latest victory is against Allianz Life Insurance. Swanson alleged that the company was selling financial products to seniors without first ensuring the product was suitable. More importantly, court papers filed by the AG's office in January alleged that some of the products may have been misrepresented.

After less than a year, Allianz caved. A settlement offer has been accepted by the judge assigned to the case, and while a little complex for a blog post, essentially allows seniors who accepted these offers to be refunded without penalty and with interest.

This is not the first time Swanson has taken on a big company and won. We remain impressed and encourage Minnesota consumers to bookmark and regularly visit their AG's page.

AT&T Not Alone In Consumer Battles

2007-10-15T18:02:00.000-04:00

Information Week is reporting that the California Supreme Court has agreed to let a class action suit against T-Mobile proceed.

At issue is the often-reviled early termination fee and phone lockdown that occurs when a subscriber cancels early. As we wrote last week when praising Verizon Wireless, locked phones (owned by the consumer) and early termination fees are the second biggest issue consumers contact us about after excessive roaming charges. Interestingly enough, T-Mobile often ranks as one of the better wireless companies in terms of number of complaints and resolutions. Verizon's actions last week render most of this issue moot, and T-Mobile now has a long way to go.

California, New York, Minnesota and Washington (state) often lead the way on consumer issue legislation and judicial decisions. Now that T-Mobile has appealed to the highest court in the state, this case is moving forward. How the decision is rendered will impact tens of millions of consumers.

Meanwhile, today is also Blog Action Day. If you have one of those old cell phones around the house, don't throw it away. Talk with your local women's center or police department. Many will help you recycle that phone for someone who needs but can't afford their own phone. The phone will typically be limited to dialing emergency numbers only.

You'll not only help our planet, but you could save a life. Be sure to read the other Blog Action Day folks who are sharing their thoughts, helps, tips, hints and exhortations about the environment.

Recall Recap: This Week's Major Recalls

2007-10-14T09:53:00.000-04:00

Toshiba Recalls Portable DVD Power Supplies, Starbucks Pulls Kid Cups

First batteries, now power supplies. As we grow into a more wired society, those electronic components can be dangerous.

Toshiba (OTC:TOSBF) is recallingmore than 140,000 power supplies sold with its portable DVD player. The company says no consumers have injured but they have reports about two units overheating. his recall involves the AC adapter sold with the Toshiba portable DVD player Model SD-P1600. Toshiba and ADPV16 can be found on the side of the adapter. Toshiba, Model SD-P1600, and the serial number can be found on a rating label on the bottom of the cabinet for the DVD player. One guess to name the Asian country where these were made.

The electronics giant is telling consumers to contact them and stop using the unit. Call Toshiba Customer Solutions toll-free at (877) 290-6064 between 9 a.m. and 7 p.m. CT Monday through Friday for more information.

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More electronics recalls hit Home Depot (NYSE:HD). If you shopped there this summer for fluorescent light fixtures sold under the Lithonia name, you need to see if you have a bum product.

This recall involves the Lithonia Lighting Nickel End Wrap fluorescent ceiling light fixtures model number New 2 32 120 RE BN and date code N050807. Lithonia Lighting, the model number, and the date code can be found on the shipping box or on a label located inside the fixture, next to the fluorescent tube. To read the label on the fixture, consumers should turn the power off at the home's circuit breaker and remove the plastic cover of the light fixture. Light fixtures sold in a box marked with a round pink sticker are not included in this recall.

Home Depot is offering a full refund or exchange if you bring the unit back to them. If you don't know what you're doing and someone else installed this, please call an electrician!

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Aren't these cups cute? We thought so too. . But coffee retailer Starbucks (NASDAQ:SBUX) has received 7 reports of the cup breaking and creating the potential to choke a small child. Starbucks also said they had received two such instances. Bring the cup back to the store, and Starbucks says they will provide a full refund and a free beverage (which may be more than the refund!). Need more info? Call Starbucks at (888) 288-4008 anytime.

Christmas Tree Shops is recalling nearly 10,000 candles that can cause a fire. A glitter decoration outside the candle is the culprit. The company says that consumers should stop using the candles and return them to the store for a refund. For more questions, call Christmas Tree Shops toll-free at (888) 287-3232 between 8 a.m. and 4 p.m. ET Monday through Friday. Be careful with these candles. They were sold during the 2006 holiday season, and you may have packed them away for this year.

No Cold Meds For Baby As Regulators Miss Again

2007-10-12T08:17:00.000-04:00

In a year where federal regulatory agencies have come under sharp criticism for their delays in protecting American consumers, the business community decided to solve its own issues this week.

The federal Food and Drug Administration has scheduled hearings for next week regarding the safety of children under two using over the counter medicines that treat cold symptoms. The manufacturers of popular brands such as Dimetapp, Tylenol and Robitussin have all voluntarily begun pulling their infant formulations from grocery and drugstore shelves.

Even if the science proves that their formulations were wrong to begin with, we continue to question the effectiveness of nearly every federal agency charged with protecting consumers, especially the USDA and FDA. Attacking the CPSC is a more popular sport these days, but they appear to us to show a bias to action. Meanwhile, the FTC continues doing very well in shutting down the most egregious business operators, and the FCIC does a fine job educating consumers.

If consumer safety does not warrant a cabinet-level position, then what does? These are the clothes we wear, the appliances we use, the food we eat and the medicine that heals us. Shouldn't there be some level of oversight at a macro level that helps consumers? Having already done away with the federal Consumer Affairs office, we're left with a bowl of alphabet soup that doesn't work very well.

We would have saved news of an action like this for our weekly recall feature debuting this week, but can't because too much of this medication is not on store shelves, but on medicine cabinet shelves throughout the country. Help your children. Get rid of it now, and ask your pediatrician how to care for your small child.

Last month it was lead in toys -- an understandable if inexcusable issue. Then it was cribs that kill children and playpens that could hurt them. Now the medicine we give them to ease their colds (infant formulations of the medicine tens of millions of Americans ingest each year) are under fire.

And no one is watching out for the children. Let's reinvent government the other way for a change and put some consumer advocates in charge of the helter-skelter, hit and miss efforts of the individual agencies.

Verizon Looks After Wireless Customer Concerns

2007-10-11T11:31:00.000-04:00

A tip of the blog hat to Dory Devlin at Yahoo! Tech for her recent post on Verizon allowing customers to change the makeup of their service plan without triggering a renewal.

As Dory points out, the wireless giant realized that when a service becomes a commodity, good customer service processes can be a differentiator. Next to roaming charges that unexpectedly hit customer invoices, the biggest wireless complaint Consumer Help Web receives is a service plan change creating a contract extension.

Good catch on Yahoo!'s part and brilliant move from Verizon. Seeing companies profit when doing right by the customer is awesome!

Could The Vioxx Lawsuits Dry Up?

2007-10-11T07:11:00.000-04:00

The New Jersey Supreme Court denied a motion that would have created a class action against Merck last month. Pundits and armchair lawyers who enjoy Boston Legal questioned Merck's strategy for the four plus years the Vioxx issue has been in the courts.

Now the company has won its first case in Florida, and on October 5, another case in New Jersey. Those wins may have pundits singing a different tune. Rolling up the issue into class action and paying a penalty to be distributed may have been conventional wisdom, but Merck fought for reputation, much like Dan Rather is fighting now against CBS, and appears to be winning a consensus.

We won't argue whether Vioxx is a bad medicine with unintended side effects. What we will say is that Merck has won and lost a lot, and interestingly enough, won much more than it has lost. Of the 16 trials concluded as of today, Merck has successfully defended itself eleven times. That is not a function of a powerful corporation beating up a local lawyer because this is not a John Grisham novel. Good firms have taken on Merck and lost.

But what does all this mean for consumers? The issues has certainly brought to light the impact of a steady regimen of NSAIDs (painkillers) over time. That may have changed medical recommendations for years to come. More importantly, Merck's decision may have actually helped consumers in the long run. By refusing to cave and settle, Merck started the dialogue on tort reform.

That helps consumers from rising prices everywhere because of frivolous lawsuits that get rolled into a class action and scare a company into settling. Basic finance theory holds that the profit margin won't typically take a long-term hit so prices rise over time. That ends up costing all consumers.

Victims of corporate wrongdoing must be protected and compensated. But with precious few exceptions, the result of this compensation is typically a higher price or lower quality product passed to the entire consumer market, not a long-term company financial shortfall.

American Express Tops Credit Card Satisfaction Survey

2007-10-10T09:35:00.000-04:00

JD Power's first report on credit card satisfaction is out, and the market research company says American Express had the highest satisfaction ratings among U.S. consumers.

Ten different credit cards were studied across five factors. Power assigned different weights to ratings. The methodology resulted in "benefits and features" being deemed eight times more valuable than "resolution".

Discover Card came in a surprisingly strong second place, finishing only 7 points behind Amex on a 1,000 point scale.

Power also found that consumers who pay the full balance on their card each month valued rewards more while those who carry a balance naturally found lower interest rates and fees more valuable. The study also finds that rewards are key in credit card selection across the industry, and 80 percent of card holders receive some type of reward with their credit card usage.

While rewards programs are important to many credit card customers, some are also attracted to credit cards that offer lower interest rates and no annual fees. The study finds that customers of Discover, WaMu and Wells Fargo frequently cite “no annual fees” as the reason they selected their card. In addition, 84 percent of Wells Fargo card holders also use Wells Fargo as their primary bank.

“It’s important for credit card issuers to communicate to their customers all of the benefits their card has to offer,” said Taylor. “Customers who are aware of and use their card benefits are generally more satisfied with their issuer.”

Among the credit card networks, customer satisfaction with American Express and Discover is significantly higher than with MasterCard or Visa. However, 89 percent of Visa customers and 87 percent of MasterCard customers indicate that their card is accepted everywhere they want to use it, while only 17 percent of American Express and 19 percent of Discover customers say the same. MasterCard holders have slightly higher satisfaction than those with a Visa, which is primarily driven by higher satisfaction with membership benefits.

Spanish Speakers Still Scam Target

2007-10-07T10:56:00.001-04:00

The Federal Trade Commission reviewed 300 work-at-home opportunities this week that targeted Spanish speaking candidates. The government agency found that nearly two-thirds of those ads were "deceptive". One company had such egregious problems that the FTC sought an emergency restraining order, forbidding the company from operations.

“Ads promising big earnings by working from your home can look very attractive to many consumers,” said Lydia Parnes, Director of the FTC’s Bureau of Consumer Protection. “But, we know that most of the promises never come true and the opportunities never pay off. The FTC is using every tool in its arsenal, including law enforcement, education, and media monitoring, to protect consumers from these types of scams.”

We applaud the FTC's actions because many smart consumers do find themselves wondering if these operations can be true. After all, if a company can afford to keep advertising, then it must be legitimate, goes the reasoning. That is just not true, says Consumer Help Web's George Bounacos.

"Too many operations can quickly slip through the cracks of an overburdened protection system," Bounacos said. "We saw that in the CPSC's struggle against budget cuts ending up in massive recalls. The same difficulties plague the FDA, USDA and other agencies whose job is to protect consumers. Remember the words your parents taught you: if it sounds too good to be true, then it probably isn't."

Bounacos said that Consumer Help Web has worked with consumer regulatory agencies once the consumer agrees to release their information. "We've shared data at the state and federal level because those agencies have too much to focus on. If our complaint letter service uncovers systemic issues, we will ask our consumer for permission to share their information and turn the data over to regulatory authorities."

Consumer Help Web has sent information about lottery schemes originating from Canada and the U.K. among other more sensitive issues.

"Every company makes mistakes," agreed Consumer Help Web President Joan Bounacos. "What makes a company great is how they resolve those mistakes. As for those who target people with deceptive advertising, we resolved as a private organization to help the public sector protection agencies whenever appropriate."

ENVELOPE STUFFING SCHEME

One of the FTC's latest victories is a law enforcement action against an alleged work-at-home scam. This enterprise advertised envelope stuffing jobs nationwide, including in Spanish-language newspapers. The advertising promised consumers a whopping $17.50 for each envelope they stuffed and guaranteed consumers a weekly paycheck of up to $1,400, or more.

One ad stated:

$1400/week stuffing envelopes @ home!
Easy work, awesome income, FT/PT,
No experience necessary. $200 Cash Hiring Bonus!

However, according to the FTC, after consumers paid a $45 “registration deposit,” most consumers never heard from the company again. Other consumers were ultimately told by the defendants that the only way to earn the promised money was to replicate the fraudulent envelope-stuffing scheme by making the same false claims to other consumers, a so-called Ponzi scheme or multi-level marketing scheme.

The FTC’s complaint names Integrity Marketing Team, Inc., Byron C. Peterson, and Min Sung Kim, doing business as Home Business System, as defendants and charges that they misrepresent that consumers who participated in their envelope stuffing opportunity are likely to earn substantial income, and that they would pay consumers at least $17.50 for each envelope the consumers stuff.

Kiplinger's Misses On Basic Privacy Issues, Security Breach Shows Order Date and Account Status

2007-10-05T11:39:00.000-04:00

We think the content in Kiplinger's various publications is first-rate. That is why there is a company subscription and at least one Consumer Help Web person with a personal subscription.

But imagine our recent horror to see that the publications that do so much to educate consumers misses on the most basic of privacy issues.

A subscription invoice grabbed our attention. Always looking to be cost and time-effective, we went to pay the bill online. That is when we found that Kiplinger's marketers had apparently beaten Kiplinger's lawyers in 2 out of 3 falls.

That can be the only explanation for a "customer service" series that first compels the consumer to divulge an email address so that can be matched against the physical address. Then the most basic of all issues -- account security -- goes away. We typed in our address and waited for some sort of prompt. Instead, simply providing an email address and the address of a current or past subscriber was enough to gain access to the account.

No top secret information rests there. You likely won't be the victim of identity theft as a result of this. But an unscrupulous financial planner or other person interested in people who read this magazine can mine the list for details without bothering to purchase a subscriber list. Even worse, this open account system even tells anyone the date a subscription was ordered and its payment status.

Here is how we got there:

1) We typed in the catch-all domain for the publishing company and selected "Customer Service":

2) Now we're presented with a publication list:

3) Selecting Kiplinger's Personal Finance magazine gave us more options:

4) Intrigued by not finding an account challenge yet, we soldier on:

5) We next used the oldest trick in the book and entered the email test@test.com as "our" email address. (Note that we don't know who owns this address, but we know we don't). Doing this led us to an email search that came up empty. Now Kiplinger's allows us to associate an active account with that dummy email address and gives us access to the account.

6) Finally, we entered our name and address. Remember, we haven't been challenged for any personal information.. We were given immediate access to the account even after we had properly registered with a real email address.. We've left a little of each address line in this image to show how the system parrots the information back after confirming that a subscription exists:

7) We're immediately given access to the account with no passwords, no name challenges or security. We had not even paid for 8 weeks, although to be completely honest, we don't usually pay until the first issue is sent.

Our point in this is not to embarrass a good publisher. Instead, we shared this today so that as smart consumers you know to demand better data security everywhere. In a world where even good security systems get hacked, leaving basic information open, no matter how trivial, is inexcusable.

One final note: Kiplinger's owns all images of its site. They were retrieved on a personal computer in an individual's home. We did play with three executives' addresses available through public, unpaid Internet searches, including that of Knight Kiplinger, but ultimately changed no record except one belonging to us. And yes, we paid for our subscription.

Cars To Have Additional Protection By 2013

2007-10-01T13:09:00.000-04:00

The National Highway Traffic Safety Administration has issued a directive stating that all passenger vehicles sold in the US by model year 2012 (typically in fall of the previous year) have new protection.

Head protection, sometimes called side curtain protection, is due to be phased in for 2010 model vehicles, just two years away. Full implantation throughout all new car models is due two years later.

Side protection is becoming more common in safety-conscious buyers, who until now have paid a premium for the protection in either higher vehicle prices or in a more expensive trim package that offers the additional protection.

Approximately half of 2008 model vehicles offer some sort of side protection. The federal agency said that hundreds of lives could be saved with full implementation.

Gound Beef Recall Swells To 21 Million Pounds

2007-09-29T20:48:00.001-04:00

Just as we were set to warn consumers about a mid-sized food recall, Topps Meat Company today announced that their ground beef recall has affected millions of pounds of the food.

According to the company and federal government, more than 21 million pounds of ground beef are at risk for carrying a bad form of E. coli, a disease that impacts many but can cause death in children, the elderly or those with other health problems.

This ground beef already bears a U.S. Department of Agriculture brand. Do not eat this food.

The USDA division charged with monitoring this food said today that they are investigating more than two dozen illnesses in Connecticut, Florida, Indiana, Maine, New Jersey, New York, Ohio and Pennsylvania.

The frozen meat was produced on various dates between Sept. 25, 2006, and Sept. 25, 2007. The food was throughout the NY area and then to states throughout the East and Midwest. Each package bears the establishment number “Est. 9748” inside the USDA mark of inspection as well as a sell-by date between “SEP 25 07” and “SEP 25 08.”

Brand names include Topps, West Side, Shop Rite and Roma among others.

Call toll-free to 888-734-0451 with questions about the recall.

Don't Be Stonewalled - Cases of The Week - September 29

2007-09-29T15:16:00.000-04:00

Three of Consumer Help Web's cases this week underscore the need for consumer education throughout the country. Too often, the task is left to underfunded government agencies or the very businesses impacted (usually negatively) by well-informed consumers.

With that in mind, we selected three case studies this week where ordinary consumers like you or any of us were stonewalled by a company's representatives. The issue is not that the individual complaints were not heard, but that they were not heard by empowered decision makers.

We often talk with consumers who receive a response from a businessperson and grumble, "I don't like what they said, but I understand it." And understanding the business perspective is one of the steps in becoming a smart consumer. More important than that understanding, though, is how far and hard to escalate the matter. That escalation is our common theme this month.

The first case is a Washington, D.C. consumer who bought a Jeep at Farrish of Fairfax. The dealership is a well-regarded one. Even bbb.org, an organization that tries hard but is still an organization driven by business membership dues, notes that they have only received four complaints about the dealership in the last year. For a dealership of their size, that is a record to be proud of.

Unfortunately, our customer got stuck with a bad vehicle. Things happen. That is why there are managers and resolutions. But when George interviewed our client, he quickly learned that the sales team had buffered the company's management from the Jeep that kept experiencing mechanical difficulties. We learned that despite numerous unsuccessful repair attempts, Farrish of Fairfax left this consumer with a huge potential lifetime value in the cold. Now the consumer has contacted us in a prelude to what could easily become regulatory or legal action.

While the sales team may have thought the problem would go away, the situation simply escalated. We always train consumers to state what they want as a resolution and ask one simple question: After hearing what I want to resolve my complaint, are you empowered to take that action? If the person you are dealing with says they are, then don't compromise if you are correct. If not, then it makes great sense for everyone to move up the ladder.

Our second case was a consumer traveling on Continental Airlines. She told us that her luggage was broken on a vacation to Mexico. On the return trip, though, she arrived and the luggage didn't. The airline promised the luggage would arrive, but it didn't. When it finally did arrive, our customer was forced to return to the airport to get her bag, where she quickly discovered that her digital camera was missing. Worse, the pictures of her vacation were gone, presumably forever.

"They didn't even offer me an overnight kit," this consumer told us. But they should have, and likely would have, had they been pushed to do so. Even more important, the airline should have delivered the bag to this consumer rather than compelling her to return to the airport. As for this missing camera, a Continental employee reportedly told her that filling out a form was a waste of time. But that's the only way that Continental would have even filed a claim.

Knowing how far to push the empowered person is just as important as knowing who to push. This consumer did too much of the airline's work and is paying the price for it now.

The final case we selected this week was a lovely woman who bought her teenage son a Microsoft Zune music player. The teen not only constantly used the player, but even downloaded songs form Microsoft rather than the ubiquitous Apple iTunes store. When the family saw a dark splotch on the screen, they didn't immediately act. The area of the malfunctioning screen spread and soon, the music player stopped working.

The family called Microsoft, where a customer service representative reportedly told them that the Zune player would not be covered under warranty because it was damaged by the user. But how could a phone rep who never saw the device know that?

Exactly. They couldn't and didn't. Instead, they stonewalled the consumer, but this consumer was smart enough to fight back.

When you're faced with a stonewalling customer service representative, ask nicely for the name of that person's immediate supervisor. Then ask to be connected to that person. If the representative refuses or offers someone else, hold fast. Climb the corporate ladder until you speak with someone willing to take action.

We'll keep you all apprised of what happens with these consumers and the companies that stonewalled them.

Now Own An iBrick Instead of An iPhone?

2007-09-29T11:14:00.001-04:00

The good nerds at Slashdot.com reminded the geek community today of AT&T's "legal policy" regarding service. Those terms include a nebulous provision for damaging the company's "name or reputation".

That's ugly enough for most consumers, but what really hits hard is this basic concept: AT&T and Apple colluded to harm an electronics device they no longer owned by creating software that would render the device inoperable.

Game over. If "do no evil" is Google's mantra and supposed business guideline, perhaps "stop doing harm" should be the case for Apple and AT&T. Folks, you don't own the device. If you don't want it on your network, that's great. You can't sell someone a car, though, and tell them they can't work on it. Doing so might void the warranty, a risk informed consumers may choose to make. Working on your car, however, doesn't mean that someone comes to your house in the middle of the night and offers you an unmarked bag of sugar as a "fuel additive".

Yes, it's a fuel additive. Don't do it to your car. You will cause massive damage to the vehicle.

And that's what happened here. Had AT&T or Apple bothered to tell consumers, "Your download will disable your device if you have not followed the warranty guidelines," then I would be on their side. Instead, they turned iPhones into iBricks, destroying the carefully laid credibility Apple was slowly rebuilding.

At Consumer Help Web, we had made the choice to switch multiple machines from Dells to Macs. Apple's position in this matter has scuttled that idea. Now, we're wondering if iTunes and iPods are still in our future. That is what happens to companies who act in an imperious and harmful manner. Good luck, boys and girls. We hope Pixar works out because your actions this week may have cost you the "nerd influencer" demographic you needed for survival in the computer market. Good luck as a media company (and set aside a nice reserve for the class action suit)

Apple's Bad Week Continues

2007-09-27T21:22:00.000-04:00

Perhaps the public relations damage was inevitable although Apple has risen to exalted status and fallen before. The iPod and its free iTunes software changed that. Apple was suddenly the darling of the tech sector's eye again. Emboldened by their success, the company mashed unlikely partners AT&T and Google into the iPhone.

Apple honcho Steve Jobs narrowly avoided a public relations crisis when he slashed prices only months after releasing the most hyped product of the decade. Quickly and decisively, he marched back to his consumers (none of whom deserved any special treatment) and proferred $100 credits. The move was sheer marketing genius, the kind that has landed Jobs a place in the history of the Information Age now being written. Even Amazon's announcement this week of a new store to compete directly with iTunes didn't seem to shake the customer even though Amazon is big enough and powerful enough to make the market a two company race.

But the whimsical Apple, your buddy with the iPod and the cool talking guy hawking Macs on television, turned vicious today. After a group of tinkerers, led by a recently graduated high school senior hacked into their iPhones and found they could use it for other applications, they released the know-how to the world. Geeks, especially in the computer sector, are like that. These are the folks who skipped Tivo and DVRs, bought a $400 budget laptop and made their own.

And Apple hosed them today. With the release of a new set of firmware, programs that instruct the iPhone how to operate, Apple not only undid the damage to its AT&T partner, but rendered the consumer's phones unusuable if they downloaded the firmware.

Writing at Ziff-Davis tonight, Jason O'Grady says he has no intention of upgrading. He'll skip the new features to keep his choice of carriers alive. Over at PC World, blogger Melissa Perenson reminds consumers that Apple warned them this might happen. She is taking a wait-and-see approach, she says, but reports that the team responsible for hacking the iPhone in the past promises a "restoration hack" in the future -- perhaps as early as next week.

All of this begs the question: did Apple, the darling of the tech set, risk its credibility with the move? Will there be an iPod backlash in addition to what might every well be an iPhone firestorm?

And more important is this question: when consumers bought the iPhone they undoubtedly gave away too many rights, but once they owned the equipment, the device should have been free for them to use as they see fit. So besides lost credibility, we would not be surprised to see Apple challenged in court over destroying equipment owned by consumers.

Stop the phone from working at the iTunes music store? Sure
Stop the phone from working on AT&T's network? Absolutely. A no-brainer
Stop the phone from working at all? I'm lost on that one, and so, I think, is Apple for taking consumer choice away.

More Child Recalls This Week - Add Playpens to Cribs

2007-09-27T07:05:00.000-04:00

Again forgetting the recriminations for today, we ask that you please help spread the word about Kolcraft play yards, what you and your parents called "playpens".

The Consumer Product Safety Commission has already linked the death of a 10 month old boy to the units. The strap across the changing table apparently poses a strangulation effort.

As with the infamous Graco/Aspen crib recall, Kolcraft is sending consumers a kit to fix the strap and eliminate the danger. Pundits say that a similar style of recall was insufficient for the crib manufacturer.

Consumer Help Web understands the financial burden parents of a new child face. These are relatively expensive units that cost between $50 and $130. If you have any doubt in your ability to properly fix the playpen, please dispose of it safely by dismantling it. Your child's safety is worth $130 or not having a playpen for a short period of time.

Reports are surfacing across the Internet that recalled goods are also surfacing at garage sales and even on eBay and other Internet auctions. "It's a natural and likely benign issue," said Consumer Help Web Chief Operating Officer George Bounacos. "If a parent doesn't learn about the recall and their child is not hurt, there is a booming unrecorded market in baby items passed among friends and relatives or sold at yard sales. Doing so is being a good consumer, but the buyer must research the item first."

The play yards recalled now were manufactured in China over a 6 year period. Kolcraft has received multiple reports of children rolling into unsafe positions in these units. The company says that consumers should immediately stop using the changing tables and rocking cradle and contact the firm. They should also immediately cut off and remove the existing changing table restraint strap. Consumers should always remove the raised changing table and cradle or bassinet before placing a child in a play yard.

For additional information, call Kolcraft at (888) 655-8484 anytime, or visit the firm’s web site at www.kolcraft.com.

All of that is good advice, but we remain committed to our advice to parents. If you feel like the repair is beyond you, dismantle the unit so no one else uses it and buy something safer. Please don't guess.

Also please remember to pass the word about the massive crib recall several days ago. Consumer Help Web will continue helping parents who face difficulties fulfilling the terms of this recall and waive our complaint resolution fee.

FTC Shapes Up CortiSlim While Consumers Gain Refunds

2007-09-26T10:55:00.000-04:00

We wrote in January that the Federal Trade Commission was chasing what it called "fad science" and filed four complaints against weight loss product manufacturers. ConsumerHelpWeb.com had already helped a consumer with a complaint resolution against CortiSlim, one of those the FTC named, but the FTC wanted a broad sweep through the industry.

The federal agency has won against CortiSlim andCortiStress. Consumers will be refunded as part of this settlement, but as in all such cases, the amount of the resolution depends on how many consumers apply for refunds.

The deadline for applying for a refund is October 27, 2007 -- just one month away -- so be sure to pass this link to your friends and family who may have used CortiSlim or CortiStress. Consumers who purchased either product between August 1, 2003 and May 31, 2006 are eligible for a refund and can apply by downloading a claim form at www.CortiSlimsettlement.com or by calling 1-800-560-6532 to receive a claim form by mail.

Amazon Joins Music Download Fray

2007-09-25T09:33:00.000-04:00

Only Apple and its ubiquitous iPod have managed to capture enough consumer attention and share of mind to legally sell music online. The service has many competitors, but none are close in size to the technology company. Even The Beatles eventually came around to the little iPod rectangle and its iTunes store.

Today, Amazon is the latest entrant into the music download business, and many analysts believe the leading web retailer is one of the few companies poised to give Apple a run for its money. The new service is called Amazon MP3, and what it lacks in scope (2 major music companies are still holdouts), the service makes up for in marketing muscle, reach and consumer presence.

"Amazon presents consumers with the choice they've waited for," said George Bounacos of Consumer Help Web. "By creating a service that also works on iPod, Amazon has already changed the marketplace by offering similar titles at 89 cents instead of iTunes' minimum of 99 cents." The difference is important, Bounacos said, because Apple's iTunes store has sold several billion songs worldwide. "Consumers might think that a dime isn't important, but several billion dimes is," he said.

Amazon's MP3 service is also getting positive reviews from early adopters. "A real alternative to iTunes," wrote Michael Arrington of leading technology blog TechCrunch. Armstrong's review of the new service praised the music's quality and mentioned support for multiple systems, including Linux. Arrington also noted that the best-selling albums were priced low: no more than $8.99 each.

"That's what happens in a competitive marketplace," Bounacos said. "Consumers benefit because suddenly the average price isn't 99 cents, but somewhere in between. Competition is always a plus for consumers. The marketplace will now be able to decide the appropriate price, rather than the company with first mover advantage."

"Why Did It Take Three Deaths? - CRITICAL SAFETY RECALL FOR CRIBS

2007-09-22T11:02:00.000-04:00

If you have an infant or know anyone who does, you must pass this information along today. Read this short piece, and get busy. Email it to your friends, and tell them to email their friends.

The US Consumer Product Safety Commission and a large crib manufacturer have issued an immediate recall of 1 million cribs. Three children have died.

The cribs have the name Aspen and Graco.

The Aspen crib models are: Aspen 3 in 1, Aspen 4 in 1, Nursery-In-A-Box, Crib N Changer Combo, Chelsea and Pooh 4 in 1.

The Graco crib models are: Ultra 3 in 1, Ultra 4 in 1, Ultra 5 in 1, Whitney and the Trio.

More model numbers are found on the envelope attached to the mattress or on the label on the crib's headboard. The model numbers are 4600, 4605, 4705, 5000, 8000, 8324, 8800, 8740, 8910, 8994, 8050, 8750, 8760 and 8896.

Call the manufacturer now at 888-593-9274 if you own one of these cribs.

We never condone sp@m or unsolicited email. Today we're asking you to write everyone in your address book. Send them to this story, and we'll also point them to the great non-profit KidsInDanger.org. Their press release about the recall is in a free PDF file here.

As consumer advocates, we'll work with others to deal with recriminations and blame later. Today, we make the children safe. Consumer Help Web is waiving its $29.99 fee for any person who owns one of these cribs and can not get satisfaction. Complete our order form so we have the details, and skip the payment page. Those are being redirected to a special mailbox, and we will call you if you need help, but call the manufacturer first. They will be responsive. Let us know if they are not, and we will help you for free.

I'm Too Fat For My Car

2007-09-20T07:25:00.000-04:00

Well, maybe not me personally, by myself with a bag of Doritos and a Big Gulp perched on top of the cupholder since it won't fit inside the darn thing. But me and a couple of friends? Well, despite our relative success in life and being bright folks, we just may be too fat for our cars.

The National Highway Traffic Safety Administration long ago set "gross vehicle weight limits". Those rules essentially told manufacturers not to reinforce the chassis with tin foil, for example, because if a vehicle claimed to support a number of adults, each adult would be assumed to weigh 150 pounds. So a four passenger vehicle must carry 600 pounds safely.

Guess what? That includes luggage too.

But a funny thing happened on the way to the 21st century. Cars, those death traps Ralph Nader wailed about, got safer and more reliable. And Americans got heavier and fatter.

The Centers for Disease Control has data showing the average weight of the U.S. population going back to 2002. That study shows American men weighed an average of 190 pounds while American women weighed an average of 163 pounds. (The study also amusingly shows men's waist sizes as 39 inches, which is possible for taller guys, but we think some of those waist measurements were from the guys who wear their pants two inches below their waist.)

Think about the averages again. If 4 men are in a car, the old vehicle standards presumes they weigh 600 pounds. In reality, they weigh an average of 760 pounds. Four men from the old standard are the same weight as today's standard.

USA Today examined this issue and spoke with auto manufacturers about overweight Americans exceeding their vehicle's weight limits. The manufacturers swear to the paper there is a safety limit involved because, as USA Today points out, two 200 pound men aren't supposed to be cleared to ride in a Corvette or a Miata. We believe the manufacturers are conservative just like they are when your vehicle's fuel gauge reads empty, and you know you can drive to the gas station.

What is most worrisome for us is the idea being bandied about now that insurance companies may soon be rejecting claims for structural damage to a vehicle if the combined passenger weight exceeds the manufacturer's posted weight.

Let's be clear. This is bad for consumers, this is bad for the insurance industry and this is bad for manufacturers who point at the government regulations. But those regulations are a minimum, the insurance companies know better and all the regulation in the world isn't changing that 190 pound statistic.

This is not a blog calling for a referendum on national healthy policy regarding obesity. We do need to address that issue through better education and reinforcement of the message. Just as smoking rates declined, obesity can also decline. But the facts are these:

American men in 2002 weighed an average of 190 pounds, not 150.

American women in 2002 weighed an average of 163 pounds, not 150.

Ask yourself this question: Are you weighing less today than you did five years ago? And then ask this question. Why can't two men of average weight (regardless of whether that weight is healthy, the number is the number) drive in a Corvette without the chance for an insurance company to claim the vehicle was improperly operated?

No, We Haven't Cured The Common Cold

2007-09-19T12:51:00.000-04:00

Procter and Gamble is a marketing icon. The conglomerate has not only trained some of the best marketers of the last 50 years, but continues to innovate consumer products.

Sometimes that innovation can get the company in a little hot water.

Today is one such day. The Food and Drug Administration sent a letter yesterday to P&G that essentially said the company's hand sanitizer for kids didn't exactly work as planned.

The letter, signed by FDA District Director Carol A. Heppe, acknowledged that an ingredient in Vicks Early Defense called triclosan is certified for use as an "antimicrobial cleanser", the company's claims about it fighting cold "germs" (sic). Heppe went on to remind P&G President Alan Lafley that colds are caused by viruses and that no evidence existed suggesting that the company's product worked as claimed.

Yes, you can still catch a cold, but Mom said you could go in the pool after eating without waiting 30 minutes.

The agency is apparently reviewing the whole subject of topical cleansers. Meanwhile, the FDA has given Procter and Gamble's smart marketers until early October to start marketing their new hand sanitizer in a way that ensures consumers know what they are buying.

Put The Spinach Down (Again)

2007-09-18T11:37:00.000-04:00

Fresh veggies can't catch a break. Bagged salad mixes are back in the news after food giant Dole said that bagged salad green mixes available in the United States and Canada showed signs of E. coli contamination.

The company said that about 5,000 bags of its "Heart's Delight" salad mix was potentially at risk. The product was sold in 3 Canadian provinces and Illinois, Indiana, Maine, Michigan, Mississippi, New York, Ohio, Pennsylvania,and Tennessee. The Canadian government has cautioned its citizens about eating the potentially tainted food. The U.S. Food and Drug Administration is in talks with the company to determine a course of action.

The "Hearts Delight" mix that is affected has a "best if used by" date of September 19. In a written statement, Dole asked consumers not to eat the product and reminded them that produce should not be eaten beyond the "best date"; in other words, tomorrow.

More information is available from Dole at toll-free at 800-356-3111.

Buckle Up. The Friendly Skies Are Taking Your Miles

2007-09-17T07:49:00.001-04:00

The airline frequent flier program has become a staple of American consumerism. The concept, which borrowed heavily from the trading stamps of a generation earlier, is designed with one single purpose: keep fliers brand loyal.

We admit that it has worked at Consumer Help Web. Our informal poll around here showed that at least two people have paid more to fly on "their" airline. How much more?

"Never more than $100," said George.

Fine, but how many times did you do that?

"A couple. Okay, maybe like five."

So our free spender, who paradoxically is our best researcher, spent about $500 just for the privilege of adding miles to his account. Why?

"I wanted to get my million miler status," he said, before sheepishly admitting that he was still less than halfway there.

Still, nearly 500,00 miles is big brand loyalty. An airline would seem to want to do anything to create that level of loyalty. That's why we don't understand United's latest move.

In a letter to frequent fliers this month, the airline that flew out of bankruptcy protection announced that a mileage balance will be zeroed out if a customer has not earned or redeemed miles during an 18 month period.

We understand that managing the liability and the accounting of this golden goose program is expensive. What we don't understand is how an airline in an industry that is battered by poor service for the last 12 months can put the proverbial gun to consumers' heads.

The letter lists many ways a consumer can keep their miles active. They include using a United-branded affinity credit card or buying miles if they're not flying. The whole concept adds up to one thing: regularly use United or lose all of your miles.

In a paragraph we can only call chutzpah, United rewarded consumers who stuck with the airlines when amenities died by writing this gem:

"This change preserves more seats for our most loyal customers, which is good news for you. Keep your account active, and you'll compete with fewer people for free* award travel on United*."

First, any sentence that purports to be a consumer benefit that has two footnotes should set off alarm bells. Second, was there something in the office coffee that day? Our translation of the legacy carrier's statement is this:

"Use our services more often or we'll eliminate the 'loyalty' premium we gave you."

See you around the friendly skies.

"We're Using Cheaper Parts": Dell Tech Support Rep

2007-09-14T18:53:00.000-04:00

Dell remains a success story of the early Information Age. The innovative company disrupted the entire nascent PC market and gave consumers better choices, flexibility and pricing.

Then it got awfully big. Revenue continues growing, yet operating income is decreasing. That is called a shrinking margin, and investors hate that. Share in the company's stock hit 30 four years ago and kept climbing. The slide began in 2005 with increased competition and decreased customer satisfaction. Just a year ago, the stock slid under 20 for the first time in years. The board and Michael Dell himself have struggled to bring margins back to the healthy range where where investors will reward them.

But Consumer Help Web's team has noticed that Dell machines are more fragile than ever before. We're seeing a useful life on the budget model Inspiron of only one year. Integrated video on the motherboard caused one to be useless. Meanwhile, keys and displays are going bad on two others. In fact the latest model (an Inspiron 1501) had the keyboard replaced in August, and the DVD drive replaced in September. What happens when it is out of warranty in two months?

According to a transcript we have of a Dell support technician, the company's representatives are not even allowed to refer to a laptop by its colloquial name. Instead, they're to refer to the machines as "notebook computers" so that no one gets hurt or burned by putting the machine in their lap. The same rep said to us in chat mode that complaints were up because the company was using "cheaper parts". We didn't prompt her, but she knew who we were.

This should not come as news to subscribers. In 2003, web media giant CNet reported on Dell's unsatisfactory ratings among business customers. ComputerWorld reported the same results for consumers one year later. Topping things off was the never-shy Forbes, which called Dell's satisfaction ratings a "deep dive"and predicted the stock slide that occurred.

Will the company recover?

Consumer Help Web received a satisfaction survey. We left strident comments and rated the entire process as a "1" on a scale of 10. We also invited Dell to contact us to try win us back from Lenovo and Apple. We'll let you know if that ever happens. Meanwhile, caveat emptor. These are rough days for Dell, and consumers ultimately pay the price.

No Vioxx Class Action Says NJ Supreme Court

2007-09-07T14:17:00.000-04:00

Merck's legal strategy surrounding claims against its Vioxx medication appears to continue to be successful. The company chose to fight each claim individually. Now the New Jersey Supreme Court has refused to consolidate multiple filings as a class action, giving the big pharma manufacturer another victory.

"Arguing each case individually is ideal for the company," says Consumer Help Web President Joan Bounacos. "They can continue to address each plaintiff's issues individually, allow multiple juries to hear the facts and point to multiple successful defenses. The strategy will drag the company through courts for years, but is proving successful."

Consumer Help Web produced a checklist for potential Vioxx plaintiffs nearly two years ago. "After the first verdict came in so high, we saw spikes in consumers lining up to file suit," Bounacos said. "Our goal was to ensure that consumers made smart choices when choosing their legal team."

Meanwhile, the New Jersey's court's order that all related cases be assigned to Superior Court Judge Carol Higbee remains in effect. Judge Higbee issued her first case management order regarding Vioxx four years ago.

Mattel's Barbie Joins Spongebob Squarepants, Dora On Recall List

2007-09-05T07:39:00.000-04:00

Another month, another Mattel recall. And what a surprise. This one also has addresses safety issues with toys manufactured in China.

The Consumer Product Safety Commission said that that Mattel claimed no reports of injuries had occurred, but that parents and caregivers should immediately take the toys from children and contact Mattel for a replacement. The company has set up a toll-free hotline staffed around the clock at (888) 496-8330.

As the eBay season ramps up again, parents are especially cautioned to beware of toys being auctioned. A Forbes report claimed that the business magazine had found recalled toys for sale without warnings on the popular auction site.

The toys affected by this recall are shown below.

Product	Product Number	Date Code Number
Barbie® Dream Puppy House™ (lead paint on dog)	J9485	286-6JX through 365-6JX or 001-7JX through 232-7JX (product number and date code are marked on the bottom of the house)
Barbie® Dream Kitty Condo™ Playset (lead paint on cat)	J9486	286-6JX through 365-6JX or 001-7JX through 232-7JX (product number and date code are marked on the bottom of the house)
Barbie® Table and Chairs Kitchen Playset (lead paint on dog, chip platter, dinner plates)	K8606	All (product number is marked under the table)
Barbie® Bathtub and Toilet Playset (lead point on cat)	K8607	All (product number is marked under the tub)
Barbie® Futon and Table Living Room Playset (lead paint on cat)	K8608	All (product number is marked on the cushion label)
Barbie® Desk and Chair Bedroom Playset (lead paint on dog)	K8609	All (product number is marked under the desk)
Barbie® Couch & Table Living Room Playset (lead paint on purse)	K8613	All (product number is marked under the table)

New Month, Same Housing Woes

2007-09-04T08:48:00.000-04:00

After July's foreclosure rate surged 9% from June to July and almost doubled between July 2006 and July 2007, many expected August's market gyrations would follow. The Federal Reserve Bank eased the situation somewhat by attempting to control liquidity.

Now Congress is getting involved.

Senator Chuck Schumer (D-NY) has told lending giant, Countrywide Financial, to stop compensating brokers more for adjustable mortgages. Schumer said at a press conference that 40% of borrowers in an adjustable rate mortgage could have qualified for conventional financing.

As usual when politics and consumers mix, the results are framed by the different perspectives. Consumers took adjustable rate mortgages to lower their payments or qualify for homes they couldn't afford. The mortgage industry did not take advantage of the consumer. The consumer has taken advantage of a loophole that provided a year or three of monthly cash flow. Now with higher rates, those consumers who cannot afford their homes are going to have to take action. They will need to move or take second jobs or higher paying positions that involve other sacrifices.

Foreclosure should be the last possible resort. Banks and lenders did not cause the subprime crisis. Consumers did. While late night comedians joke about anyone qualifying for a mortgage, the same consumer truths were applicable in that market.

1) Understand the terms.
2) Don't overextend yourself if the worst case scenario you agreed to occurs.

Perhaps the second car has to be sold. Perhaps one of the children can't go to college this year or can only go part-time. By behaving as though a low rate mortgage is a right rather than a privilege earned by strong credit ratings, consumers who wanted it all are driving a financial crisis impacting those who had it all.

Consumer Help Web always reminds consumers to know their rights. Knowing their responsibilities is just as important.

Dialing 911 On Your Cell Phone? Not So Fast

2007-08-31T13:19:00.000-04:00

Several wireless companies remain non-compliant with a federal government requirement that consumers using their phones can reach appropriate emergency services when dialing 911.

The Federal Communications Commission had issued a rule stating that 95% of consumer phones be equipped to make 911 calls. The agency says that three companies -- Sprint Nextel, Alltel and United States Cellular -- have failed to do so and will be fined.

In a decision published yesterday, the FCC said it would send Notices of Apparent Liability for Forfeiture (“NALs”) to the companies. The companies have 30 days to submit statements regarding their non-compliance. The Commission then has the opportunity to enforce fines ranging from $500,000 to more than one million dollars against the companies.

An FCC statement said that Alltel and US Cellular were now compliant, but had missed the deadline.

How Airlines Can Improve Their On Time Statistics

2007-08-30T13:30:00.000-04:00

Airline timeliness statistics are regularly released by the U.S. government so that consumers can make informed choices about which flight to take.

Right after unveiling a new terminal at New York's busy JFK Airport, American Airlines also snuck in a way to improve its on-time statistics. The Washington Post reports today that the Dallas based airline said it will add five to seven minutes to each flight at its largest airports. The carrier said the move would help reduce delays and avoid cancellations.

The schedule change will also help that all important statistic.

Using This Knife May Cut You

2007-08-30T11:13:00.001-04:00

Gerber Legendary Blades is recalling 154,000 knives made in...wait for it....China.

The company, a division of scissors maker Fiskars that is not affiliated with the baby food company, says that its Exchange-A-Blade pocket knives have a manufacturing defect. The back of the blade can slide past the support, according to the company, and cut a consumer. Gerber reported that the company was aware of eight such incidents, including several where the consumer needed medical attention and stitches.

The recall involves Gerber EAB Pocket Knives, model numbers 22-41548, 22-41548CDIP, 22-01548W and 22-41548W. Consumer should stop using the knife immediately and contact Gerber for a new knife. Calls are toll free at (877) 204-5510 between 9 a.m. and 5 p.m. PT, Monday through Friday.

FAA Requires Airlines Test Jets After Explosion In Japan

2007-08-28T18:12:00.000-04:00

After last week's horrifying air travel accident when an China Air 737 caught fire after landing in Japan, the United States Federal Aviation Administration has given American carriers three weeks to test their own planes.

According to an FAA Airworthiness Directive issued this weekend, American companies flying certain Boeing 737 models must complete testing of their fleet by mid-September. The agency said that "Loose or missing parts...if not detected and corrected, could result in a fuel leak and consequent fire."

Aero-News Net has identified eight U.S. airlines flying the planes as Southwest, American, Delta, Continental Air Tran, Alaska Air, ATA and Aloha. The aviation news site is tracking airline compliance with the directive.

(beep) Would You Like Fries With That?

2007-08-27T15:11:00.001-04:00

PC World's Mark Sullivan blogs today about an AOL tech support chat session that left him feeling a little less like a customer and a little more like a database query.

Judging by the partial transcript Sullivan posted, the entity at the other end was perfectly scripted and pressing buttons that fired macro and marketing-perfect answers at the user or a bot.

That's right. Even when Sullivan baited the conversation by asking if he was typing to a male or female, he did not get a straight answer. He finally called the person (?) "HAL" after the computer in the classic movie 2001. Still no answer.

Only a month ago, we wrote about AOL's refund policies and our work on behalf of consumers who were owed money. Even if Sullivan had received service from someone in Bangalore or South America or even Dubuque, now is not the time for the beleaguered company to be coy regarding its service.

(beep) You've got customers.

GE Seeking Compliance On Dishwasher Recall

2007-08-24T11:22:00.000-04:00

Full page, color ads in major newspapers are showing up regarding the GE dishwasher recall. We reported on the details months ago when they became public, but there is apparently still not enough compliance.

Please do not use affected dishwashers until they are repaired or replaced. The details of the machines are in the link above and cover brand names Kenmore and Hotpoint, in addition to GE. The company is offering a free repair or a rebate amount of varying amounts on a new purchase. All of the affected units are more than five years old.

Consumers need to know that using the dishwasher with a liquid rinse can cause an electrical short-circuit, overheating and even fire.

The Wheels On The XBox Burn, Burn, Burn

2007-08-23T21:50:00.000-04:00

Microsoft Corporation announced yesterday that an add-on device for their XBox 360 game console can overheat. No fires, injuries or other problems have been reported, but the company received dozens of complaints that the unit overheated and smoke was visible.

The company said consumers could fix the problem with the "Wireless Racing Wheel", but cautioned consumers that they should not use electrical power when using the device until they received a repair kit. Microsoft did not say when the kits would ship, and the federal government has not issued a recall notice.

The new console from Microsoft has taken its share of abuse. With a larger Sony installed base and tremendous buzz around Nintendo's Wii, Microsoft's XBox was best known for its "red ring of death", the lights that displayed when some units locked up. The phrase was a play on words based on computer user's referring to failures in the company's Windows operating system as a "blue screen of death".

Blue or red, unplug your XBox's steering wheel until it is repaired.

Skype Antes Up Resolution

2007-08-22T22:07:00.000-04:00

When eBay's Skype phone service crashed last week, users throughout the world were faced with a spinning icon and wasted computer cycles. The company later said that the crash's scope was international and cited stress caused by millions of computers rebooting after receiving an updated Microsoft patch.

Pundits throughout the blogsphere and traditional media continued to ask why this particular update, one of many Microsoft regularly sends subscribers, caused the crash, but the company would only state that the crash was unintentional and not the work of hackers.

Many of Skype's users have free accounts, the remnants of a well received promotion that offered free service to any landline phone during 2006. Millions of users pay for varying levels of service, however, including local phone numbers, the ability to call any phone and reduced international calling rates. To compensate users, Skype has added a week to any paid subscriber's account.

If The Skies Aren't Friendly, San Francisco Lines May Be

2007-08-20T11:26:00.000-04:00

Security lines are a necessary evil at airports. Comedian Bill Maher has a great schtick on flying without them, but no one wants to do that.

While everyone gets frustrated in a long line, frequent travelers -- the kind of passenger who take 20, 50 or even 100 flights a year -- often find themselves spending plenty of time on the other side of the detectors. Many have their own favorite lines and times, but one family with twins in strollers can change the day.

Registered traveler programs might be one answer. For about $100, passengers can opt to have a background investigation done and enter shorter lines. One such program, Clear by Verified Identity Pass is due to open at San Francisco's busy airport in September. Here's betting that the gateway to Silicon Valley (if you don't count San Jose...) will see more than its share of travelers sign up, which begs the question transportation officials have asked about their highways for years.

What happens when the express lanes slow down?

Could Credit, Customer Service Cripple Jet Blue?

2007-08-11T19:59:00.000-04:00

Celebrity CEOs are sometimes worth their weight in platinum. Gates, Jobs, Bezos, Buffett and others have set a high watermark that brand them as much as their company. Even the late Dave Thomas helped resuscitate hamburger chain Wendy's when McDonald's and Burger King threatened the then-higher priced chain.

David Neelman, a serial entrepreneur and airline exec for virtually his entire adult life, was joining their ranks as he led low-cost, non-union JetBlue Airways into the public consciousness. Focusing on frills passengers wanted and mixing second-tier airports with some strategic hubs, Neelman had JetBlue poised somewhere between the low-cost carriers and the legacy major airlines.

Then one service catastrophe after another hit the company in early 2007. JetBlue was the country's eighth largest carrier when a series of winter storms caused it to cancel more than 1,000 flights in February. The cancellations disrupted travel plans for more than 100,000 passengers, and Neelman found himself on the short end of the blame stick. A hasty departure upstairs to the Chairman's seat was arranged for Neelman, and the CEO duties were handed over to another airline veteran, David Barger.

The cachet of free televisions and big seats was no longer the differentiator it had once been. MaxJet began operations to Europe, quickly followed by the launch this week of Virgin America. Both pose huge threats to the cool factor JetBlue enjoyed among younger travelers. Even Wired blogger Dylan Tweney extolled the virtues of Virgin to the world's geeks.

So where has JetBlue gone wrong? Wall Street pundits still are concerned about the company 's cash flow and the growing liability lines on the company's balance sheet. Key financial metrics like ROA and ROE continue to slump in negativity territory.

And then there is the customer experience.

Consumer Help Web was going to try the airline out for a big search engine conference in San Jose this month. We know the web, we understand online airline booking and were willing to fly into Oakland direct from our DC area offices. The price was competitive with the majors, even though United has a hub in DC and nearby San Francisco.

Then the roof caved in. JetBlue's web site returned pricing for a direct flight and prompted us for payment. There were no seat maps so we had no idea whether people would be traveling on full or open flights, or worse, whether someone would be in a middle seat for three hours.

Being good consumers, we called. And we continue to tell ourselves that the grumbles we've heard about JetBlue are traced back to poor customer experience. To begin with, we never should have had to call. But the results were astounding when we did.

"You'll get to choose a seat when you pay," the bored sounding CSR told us on the phone.

No amount of appealing to reason, rationality or the promise of winning new customers could convince her to research the flight and tell us. We moved from asking to declaring that we would not use JetBlue. They would join another unnamed airline on our blacklist.

This comment was met with indifference as well. Finally, we did the only thing most consumers can do before purchasing when they don't feel like investing the time to climb the corporate ladder. We asked that the call receiver make a note of our dissatisfaction and let her manager know that we were unhappy. The thinking here is that if the manager hears that enough, the word makes its way up the ranks.

Not at JetBlue though. Our call receiver refused to tell her manager. The best way to complain, she said, was to visit their web site and use the complaint form there. Three of us here have customer contact center experience. We agreed that we could fix this nonsensical approach in a morning with two coffee breaks -- it's just that easy. We might even do the training free if JetBlue asked nicely.

This wasn't an isolated incident, you see. We tried calling back again and were met with the same brick wall.

Poor customer web experience.

Atrocious call center training.

Nonsensical complaint policies.

JetBlue may have televisions and big seats, but in the battle for customer's hearts and minds, that only works once. Think back to the last time you said to yourself, "I hate doing business with that company, but they give me what I want." It's not a phrase most people say ever and certainly not often.

In the turbulent wake of rising fuel prices, increased competition and a major service quality meltdown, JetBlue may be the next airline finding itself short of customers, cash and finally, solvency.

Don't Catch This Fish

2007-08-11T13:08:00.000-04:00

Seafood lovers may find their choices more limited at the supermarket after the Food and Drug Administration said some fish imported from China could be harmful. The government agency said that farm-raised fish from China being sold in the United States contained anti-bacterial drugs not approved for use in this country.

The FDA singled out popular seafood like shrimp and catfish, as well as basa, dace and eel. The levels of drugs found in the fish were low, but the FDA issued an "Import Alert" that gives the agency the authority to stop import shipments and test them for the drugs. Food companies are able to apply for exemptions if they meet certain criteria.

Trade between the U.S. and China has suffered this year after recalls affecting toys, automobile tires, laptop batteries and pet food.

Flood Vehicles Showing Up For Sale, Carfax Warns

2007-08-09T14:06:00.001-04:00

After weeks of heavy flooding in the Midwest, used car shoppers everywhere need to be on high alert as vehicles damaged by floodwaters may be sold - knowingly or unknowingly - by dealers or individuals.

A recent study by vehicle history leader Carfax shows that the number of flood cars discovered by their customers' reports has doubled nationwide in only five years. Thousands of waterlogged wrecks from Hurricane Katrina and Rita already have made their way back onto the market. The Virginia company also warns that ore are still showing up around the country.

Carfax continues to offer a free Carfax Flood Check to help consumers avoid unknowingly buying a flood-damaged car. 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 by Carfax.

Government Will Consider Untested Matresses Unsafe

2007-08-09T08:51:00.000-04:00

Growing concern over imported goods and a hyper-competitive market have prompted the federal government to issue a ruling that any mattresses not tested by the government would be considered unsafe and subject to recall. The Consumer Product Safety Commission said the mattresses would be considered flammable.

A "narrow exception" has been made for medical beds meeting strict criteria.

No More Running Through The Airport Like O.J., Flights Post Awful Records

2007-08-07T08:49:00.000-04:00

Older readers may remember O.J. Simpson's famous Hertz commercials back when he was a football player and actor. The spots showed the star running back racing through an airport and hurtling over chairs, suitcase and other obstacles.

According to the latest government data, travelers can stroll more leisurely than Simpson.

The nation's airlines, despite rising fuel prices and terrorism concerns, posted some of the worst flight delay statistics in recent memory during June. The national average for timeliness was 68.1%, down almost a full percent from last June. More astonishing was the 100% delay experienced by eight different flights last month. The Bureau of Transportation Statistics reported that 6 of the 8 flights originated from New York's JFK Airport or from Atlanta's Hartsfield. One of the other flights was a departure from Tennessee to Atlanta, and for some inexplicable reason, Northwest's flight 656 from its hub in Detroit to Newark, New Jersey joined the group at 100%.

But late arrivals were not the only issue facing travelers in June. Three airlines canceled more than 5% of their flights in June: Mesa, American Eagle and Northwest.

When flights did take off, there was a good chance that the luggage was also delayed or even lost. The government agency said that "mishandled baggage" complaints rose 25% for a 6 month period ending in June. There were 7.34 reports of mishandled baggage for each 1,000 passengers during the period. Put in perspective, a small regional jet holds nearly 50 passengers while larger jets can hold more than 100, sometimes much more. Another way of expressing the rate the government reported is that 1 out of every 136 passengers reported a baggage problem, and many passengers continue to only bring carry-on luggage.

Keep your cool during the waning days of summer, and you just may want to consider carry-on luggage for shorter trips. At least you won't bump into O.J. Chances are his flight is late too.