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Consumer News 1999



Black & Decker Fined for Hiding Toaster Defects Spacemaker model caused more than 1,000 fires.

Value America Cuts Back Slumping sales lead to cut backs, restructuring and co-founders' resignations.

E-tailers Brace for Holiday Returns Online shoppers set new records but the second wave is about to hit.

Class Action Suit Filed Against Ford The suit seeks compensation for owners of 1995 Windstar minivans and other Ford vehicles subject to early head gasket failure.

Auto Recalls Often Come Too Late Critics say automakers too often drag their feet in reporting safety defects to federal regulators.

CPSC Surfing Web for Unsafe Products  Agency opens "war room" to monitor e-commerce. 

Hotel Chain Faces Discrimination Suit  Adam's Mark accused of illegal bias against black patrons. 

AutoNation Quits Used-Car Market  Shifts resources to new-car segment.

American Home Products Settles Sweepstakes Class Action  Will pay $33 million in claims and clean up its act in future mailings. 

Post Office Snags Lost Loot for California Woman  Cash and endorsed checks promptly returned.  Happens all the time, posties insist.

Ford Credit Pays $600,000 In Discrimination Case  FTC charges Ford Credit discriminated against unmarried couples.

Computer Worm Disguises Itself as Y2K Bug  E-mail worm seeks to reformat hard drive.

FTC Puts Brakes on Misleading Auto Lease Ads  Settlement with six Philadelphia dealers latest in series of enforcement actions. 

Settlement in Fair Debt Collection Practices Case  National Financial Services pays cash settlement and agrees to obey the law. 

Michigan Sues J.C. Penney for Scanner Errors  Error rate as high as 61 percent, suit charges. 

Cars Head List of Consumer Gripes  Consumer agencies say cars and home improvements were once again big problems in 1999.

FTC/FDA Warn of Unapproved HIV Test Kits  Kits may not detect HIV and AIDS as advertised. 

Washington Attorney General Sues Microworkz  Charges firm did not deliver what it promised. 

Microwaves Cause Memory Loss in Rats  Implications for human cell phone users?

St. Louis Car Dealers to Pay $40,000 Penalty  FTC charges noncompliance with truth-in-lending and lease laws.

2000 May Not Be Merry and Bright for Telemarketers  Tough new legislation introduced in Congress.

Holiday Season is Ground Zero for E-tailers  Consumers not willing to hear any more excuses.

Three Big Airlines Join Priceline.com  Addition of American, United, US Airways seen as boost for Priceline.

FDA Warns Weight-Loss Product is Dangerous  Triax can cause severe complications, agency says. 

More Competition Coming to Web Travel  Four major airlines have formed a joint venture to launch a new site for price-sensitive travelers.

Toshiba to Pay $1 Billion in Computer Class Action  The Japanese manufacturer agreed to settle claims it sold five million defective laptops in the United States.

Congress Puts Airlines in the Pilot's Seat Consumer complaints rise but heavy political spending by the airlines keeps Congress under control. 

Warranty War Heats Up;  Isuzu One-Ups Hyundai  Both now offering ten-year drivetrain warranties. 

New Federal Law Protects Online Kids  Commercial Web sites will need to get parental consent before collecting personal information from children under 13.

FTC Sues Work-At-Home Medical Billing Scheme  Suit says Medical Capital Corp. took customers' money, did next to nothing in return.

"New Credit Identity" Defendants Settle With Feds  Scams promised consumers a new credit identity and misrepresented the process as legal.  In fact, it is a felony.

Patricia Erickson Settles With FTC in Modeling Scam  Agrees not be be involved with Model 1 or Creative Talent Management or any similar scheme. 

Bank of America Launches E-tail Service   Aimed at small merchants, the service should help increase competition online.

Airlines Raise Leisure Fares  Only Southwest stays the course. 

Parental Liability No Minor Matter  States beefing up laws that make parents responsible for their offsprings' misdeeds. 

State Farm Loses Parts Case  The insurer was sued by policyholders who said it ordered body shops to use subpar replacement parts.

Pyramids?  They Belong in Egypt  Amway's Quixtar is a new variation on a familiar old theme -- multilevel marketing.  

Don't Take Baby to Bed!  A study finds hundreds of deaths attributed to babies and adults sleeping in the same bed.

Company Sentenced for Selling Recalled Toys  Mazel Company bought recalled toys at a discount and resold them to small retailers.  

Christopher's Day Off  A Fairfax County, Va., lad cuts school and makes a pilgrimage to Missouri. 

Amway Gets Personal on the Net  Soap, shampoo and more!  

FTC Halts Internet Hijacking Scam  Scammers used copied pages to lure surfers to pornographic sites.

Proteva & Home Shopping Network Named in Class Action   Lawsuit filed in response to ConsumerAffairs.Com complaints.

Wal-Mart Testing New "Computer Doctor" Centers  The giant chain may get into computer upgrades and repair.

$4 Billion Fen-Phen Settlement Reported More than 4,100 lawsuits claim diet-pill heart-valve damage.

Unilever Agrees to Can the Hype for Vaseline Intensive Care Anti-Bacterial Lotion  The company claimed its lotion "stopped germs for hours."

FTC Files Against Fraudulent Credit Card Protection Plans  Companies sold protection that didn't exist and wasn't needed.

Shell & Castrol Settle FTC Charges  Agree to stop making claims about Castrol Syntec improving acceleration.

Mobile X-Ray Owner Sentenced in Mammogram Fraud Case  Virginia facility did not have proper FDA certification.

NHTSA Wants Safer Child Car Seats  The head of the federal agency says manufacturers are cutting corners on safety.

Canadian Telemarketers Target U.S. Seniors with Lottery Scam  "Almost guaranteed to win."

Proteva Files For Bankruptcy  The computer maker listed debts of more than $10 million in its bankruptcy petition.

Home Depot Coming to the Web  Home Depot is planning a major expansion of its Web presence.

Watch that Peanut Butter!  Food allergies pose growing threat.  Is your child's school safe?

Value America, Proteva Go After Low-Income Buyers  Deal includes "free" Internet to credit buyers.

Ford Gets Restraining Order Against Web Site  Robert Lane's site has been publishing internal Ford documents about safety, emissions and reliability.

Rascals Come in Many Forms  Fast-close salesmen take advantage of homebound elders.

Travel Scammers Tripped Up FTC launches major assault on travel fraud.

Minuteman Press, Speedy Sign  Pay Redress Judgment Charged with misleading franchisees.

Home Depot Fencing Off Its Turf  Warns suppliers to stay out of e-retailing.

Credit Card & Y2K "Protection" Scams Shut Down FTC goes after Canadian telemarketers.

FTC Wants Tighter Regulations of Online Pharmacies  Says potential for consumer abuse is high.

Banks Charge Both Parties for Bad Checks  Banks are now slapping fees not only on those who write bad checks but also on those who cash them.

Exxon:  No Gabbing & Gassing Exxon is asking customers to turn off cell phones while fueling.

USDA Warns of Listeria Risk  A bacteria that infests ready-to-eat foods such as luncheon meats and hot dogs is a serious health threat. 

   

Work At Home Scheme The Federal Trade Commission has filed a lawsuit against an alleged work-at-home pyramid scam.

FTC Attacks Internet Cramming  The FTC has shut down a "cramming" operation that targets small businesses, religious organizations, charities, and foundations.

Check Look-Alikes Under Fire Congress may regulate home equity loan solicitations.

Bottled Water -- How Safe?  No one really knows because it's largely unregulated.

Movers Hold Consumers Hostage   Fraud among interstate movers is out of control, consumer officials say.

McDonald's Pays $4 Million Failed to inform government of injuries on its playgrounds.

Man Sues Gym in Wife's Death Gym prescribed ephedra, suit says.

Watch that Grill!  Safety commission warns of grill dangers.

FTC Warns of Internet Health Scams Says 800 sites are questionable.

Home HIV Tests Not Reliable  Kits tested by the FTC gave false negative results.

FTC Cracks Down on Small Business Scams Internet "cramming" is costing companies millions

Internet Coupon Fraud  FTC sends greetings to 51 sites

Suit Says Sears Defrauded Tire Customers  Damages could reach $400 million.

FTC Accuses Tiger Direct of Misleading Claims  The mail-order computer dealer is accused of misleading consumers about warranties.

Goodyear, Texaco Named in Suits Class action lawsuits charge that Goodyear and Texaco auto service centers have illegally charged consumers for disposing of used oil.

States Targeting Spam  State lawmakers, eager to get into the Internet regulation game, are finding unsolicited email -- or "spam" -- a convenient target.

Portability Charge Added to Phone Bills  Bell Atlantic has added a 23-cent monthly charge for "number portability" the latest new charge for local phone service.

Lights, Camera, Scam   The FTC charged three Washington, D.C.-area modeling agencies with misleading would-be models.

D.A. Probes Providian  The San Francisco District Attorney has opened a probe of Providian Finance after receiving "a lot of complaints," a spokesman said.

Consumers Giving up Right to Sue  Increasingly, the corporate gods are writing forced arbitration clauses into their service agreements.

Cell Phone-Cancer Links  Preliminary results show both a biological and a statistical link between cell phone usage and brain cancer.

FTC Wants Dell, Micron to Reformat Ads Inadequate disclosure of leasing costs, agency says.

Wronger Than Dirt FTC Drains Laundry Detergent Substitutes that Claim to Reduce Pollution.

FCC Requires Clearer Phone Bills  Clearer dispute process also required under new rules.

Home Shopping Network Pays $1 Million Fine  It's the second time the television retailer has been hauled before the Federal Trade Commission for making unsubstantiated advertising claims.

FTC Hits iMall for $4 Million  Company will make restitution to "investors" who bought into its Internet franchise schemes.

AltaVista Starts Selling Search Results AltaVista, under pressure to increase its revenue in preparation for an initial public offering later this year, has started selling the top spot in 500 search categories.

96% Car Loans Coming to Florida?  A Florida Senate committee ignored consumer advocates and rammed through a bill that would let car-title loan companies charge poor people up to 96 percent a year.

New SIDS Warnings  Infants under 12 months should be put to sleep in a crib with no soft bedding of any kind on top of the baby, the Consumer Protection Safety Commission warned.

Up, Up and Away  ATM surcharges are bringing in $2.1 billion for banks, with 93 percent of banks charging customers who use another bank's ATM. 

Pay in Advance, Then Pay Again  Publishers Clearing Housing gets a little carried away with its billing.

An Insider's View of Extended Warranties WW, a former Sears salesman, berates his former employer and its "protection" plans.

FTC Credit Crackdown Hits 43 Firms The FTC hit firms that help consumers illegally create new credit profiles.

USDA Approves Expanded Irradiation of Meat  Fighting a growing wave of food poisonings, the U.S. Agriculture Department is allowing meat packers and chicken pluckers to use irradiation more freely.

Imitation Auto Parts Being Forced on Consumers by Insurers   Many insurance companies are pushing shoddy and defective imitation replacement parts on car owners after a crash.

FDA Wants Recall of GBL  A "natural" supplement sold through numerous Web sites and used by body-builders and those seeking to lose weight is being blamed for one death and 54 serious illnesses.

Agencies Watching How Internet Merchants Handle Returns  
Consumer protection agencies nationwide are keeping a careful eye on how well Internet-based merchants handle the thousands of post-holiday returns.

Life in ConsumerHell.Com  The holidays were not merry and bright for many online shoppers, The New York Times notes.

Cramming Overtakes Slamming  Cramming refers to placing charges for unwanted goods or services on a consumer's local telephone bill and it is rapidly spiraling out of control. 

Companies Using Credit-Card Offers to Collect Old Debts   Unscrupulous companies are offering consumers new credit cards, on the condition that uncollectable debts are added to the balance of the new card.

Small Businesses Being Ripped Off by Credit Card Merchant Account Brokers  Small business are being skinned by fast-close scam artists who are overcharging them for merchant accounts.

L.L. Bean Child Backpack Carriers Recalled A child backpack carrier that poses a strangulation risk is being recalled.

Latest Scam from Canada  A caller informs you that you are the recipient of a large cash settlement in a Canadian lawsuit and even gives you the name of the judge and perhaps the docket number.


Consumer News

May 17 2008

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