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Consumer News & Alerts, July 23, 2003





T-BONED! SMALL SUVs FLUNK SIDE-IMPACT TEST
The Subaru Forrester was the only small SUV that was rough and rugged enough to get a top grade on both the front and side impact tests administered by the Insurance Institute for Highway Safety. Illustrating the value of side airbags, the Ford Escape with the optional bags passed the side-impact test but the same model without the bags got a poor rating. In many of the models tested, injuries to the dummies in the 30-mile-per-hour t-bone test would have been severe and even fatal. A full list of the models tested is on our site.

STEEL WHEELS MAY CRACK ON GM TRUCKS
Federal safety regulators are opening a defect investigation into 384,608 of General Motors' 1999-2003 full-sized pickups and SUVs after two reports of cracked wheels. A GM spokesman said the cracked wheels caused a slow leak in the tires and did not present an immediate safety risk.

KENNEDY BREAKS RANKS, SUPPORTS G-O-P DRUG BILL
Amid confusion, clamor and conflict, both houses of Congress are likely to approve Medicare drug prescription benefit bills this week, a $400 billion down payment on a program that has nowhere to go but up as the huge baby boomer generation ages its way onto the Medicare rolls. If further proof were needed that the smoke of battle is confusing the troops, liberal lion Sen. Ted Kennedy has thrown his support to the GOP bill. His position is basically that seniors need the coverage and there'll be plenty of time for political tinkering in future sessions.

FLU, CHOLESTEROL AND SEASILVER ...
-- Nasal mist flu vaccine approved. There's an easier way to get your flu vaccine. It's a simple nasal mist. That means no shot, and more traditional vaccine for those who need it.
-- Lipitor recall expanded. Counterfeit versions of the popular cholesterol fighter are circulating and health officials fear they may lack some of the essential ingredients.
-- Feds raid Seasilver The feds have shut down the Seasilver plant and seized its inventory. FDA Commissioner Mark B. McClellan calls it "intolerable health fraud."

WALGREEN HELPS ITSELF
We've learned that Walgreen is charging consumers a minimum $8.99 fee for prescriptions, even when the cost of the medication is less than $8.99. This is not disclosed to the consumer and may be a violation of consumer protection laws. Anyone who has had this experience should file a consumer complaint with us.

LAWMAKERS BEHAVE NICELY
By and large, state legislators can be expected to do whatever the insurance companies ask. Insurance is largely regulated at the state level and the insurance companies like it that way, thank you. Take Florida, for example. Consumers there had started kvetching about insurance companies setting premiums based partly on policeholders' credit ratings. That's illegal, consumers cried. Not anymore, the insurance companies replied after the state legislature and Gov. Job Bush knuckled under and legalized the odious practice.

FUMING FRITZ
The credit rating-insurance premium link-up really irks Fritz of Delray Beach. He was all set to give the Florida insurance regulators an earful when he found out the insurance companies had beaten him to the punch and whispered sweet nothings (or maybe somethings) in the legislators' ears. Fritz now despairs of getting fair treatment from Florida insurers -- and, sadly, he is fully justified in feeling that way.

ON THE HOOF
Then there's Congress, which is now offering take-out service. Rep. Ric Keller, R-Fla., doesn't want the big restaurant chain that's headquartered in his district to get indigestion thinking of all the bad things that might happen if the occasional poisoned customer sues them. So Keller has introduced legislation that would basically make restaurants and food companies exempt from being pestered by consumer suits.

BE THE FIRST TO KNOW
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IT'S WHAT YOU MAKE IT
Last week we asked anyone who'd had a good experience with debt counselors and consolidators to lt us know about it. We heard from a few of you and, as often happens, those nominated as Good Guys are in other consumers' Rogues Gallery. The floor's still open, so don't be shy.

GUESS THEIR SITE IS SAFE?
Guess Guess didn't really guess it was all that important to lock up its online customers' personal data as securely as it claimed to do. Guess again. The Federal Trade Commission charged the company with failing to adequately safeguard customers' personal data -- address, waistband size, credit card number, that kind of thing. In an out-of-court settlement, the company has agreed to leave a bit less to guesswork from now on.

RECALLS
• Fisher-Price Crib Mobiles. The batteries can leak caustic acid.
• HDC Electrical Products. Wiring is inadequate and can cause overheating, leading to shocks and fires.

IN PRAISE OF OLDER CARS
Consumers like Jai, whose VW basted itself, buy new cars thinking they'll be trouble-free and cheap to operate. In fact, new cars are now so expensive that any savings in repair costs are eaten up by savage depreciation, taxes and higher insurance costs. Older cars -- and we mean ten years or more -- cost next to nothing and if you pick a good one, repair costs can be quite minimal. It's a lot better to put that extra $40,000 or so into an annuity or -- gasp -- the stock market than into over-priced rolling stock.





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