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Consumer News & Alerts

December 20, 2004

TARGET'S LUMP OF COAL
For whatever reason -- indigestion, perhaps? -- Target this year decided to play Scrooge and ban the Salvation Army from collecting donations in front of its stores. Wal-Mart, which despite a year of bad p.r. hits is no one's fool, announced it will not only continue to welcome the Army and other charities throughout the year but will match whatever its shoppers throw into the Salvation Army's buckets, up to $1 million.

The Target customers we heard from were spitting nails. "I can guarantee you that I won't step foot in a Target store again," said Elaine of Sturgeon Bay, WI. "I am a member of the Jewish community and am appalled you didn't allow the Salvation Army to raise funds for the poor during the Christmas season. I will not shop at your store until the Salvation Army is welcome," wrote Andrew of Sacramento.

A Christmas Story
Many years ago, your editor was searching for human interest stories in the news-dead runup to Christmas, a time of great boredom and ennui in newsrooms. I found an elderly, blind widow with cancer who had been evicted on Dec. 24, her few belongings tossed into the foot-deep snow on the freezing streets of Denver. Her offense: She had taken in a homeless young couple and their newborn child (sound familiar?), thus violating some obscure rule about how many unrelated adults could share an apartment.

Now, it's considered unethical and unprofessional for reporters to become "involved" in the stories they cover but I could not resist calling around to try to find some help for this poor soul. City, county and state agencies were completely useless. I then called the Salvation Army. I did not identify myself as a reporter for a worldwide news agency and said only that I was trying to get some help for an elderly and nearly penniless woman evicted for trying to help others. "We'll be right there," came the crisp response.

In the only Christmas miracle I've ever witnessed, a Salvation Army van rolled up not 20 minutes later, bundled up the woman and her belongings and drove off into the snow. Your editor is, to put it mildly, not very religious, but ever since that blistering cold day in the 1970s, I have kept a special place for the Salvation Army in my heart and checkbook. I hope you'll do the same ... at a kettle near you or at www.salvationarmyusa.org.

SANTA WAS GOOD TO THE BANKS
It's not even Christmas yet but Citibank and MBNA already got their presents. Under their trees were shiny new agreements with American Express, courtesy of the Supreme Court which celebrated Halloween by freeing banks to issue cards with any goblins they choose, not just Visa and MasterCard. The banks covet American Express, which is thought to appeal to big spenders. Not only that, Amex also takes a bigger bite out of each transaction. Banks love this because they get a nibble too. All this jollity, of course, is ultimately at the expense of the consumer, but hey ... 'tis the season.

Ghost of Christmas Future Visits Blockbuster Perhaps Blockbuster CEO John Antioco had a little too much eggnog and dreamed he saw Amazon, Netflix and Encore dancing on his delete key? Whatever the cause, Blockbuster has thrown caution to the winds and eliminated late fees. But before breaking into the God-bless-us-everyone chant, it's best to read the fine print, which says something like: you keep it, you buy it.

PFIZER FINDS HEALTH RISKS WITH CELEBREX
It will be a blue, blue Christmas around the Pfizer tree. Turns out Celebrex, like its COX-2 brothers Vioxx and Bextra, produces an increased risk of heart attack and stroke. Meanwhile -- attention: arthritis sufferers -- a study finds that Iboprofen may reduce heart attack risks. So does aspirin, for that matter. Both are much cheaper than the COX-2 drugs. There are downsides, of course, so individual consumers should check with their doctor.

Those stuck with a medicine chest full of Vioxx will be happy to know that several state attorneys general have banded together to beat an improved Vioxx refund program out of Merck.

FEDS PROSECUTE SKIN PATCH PROMOTERS
You think wearing a skin patch will help you lose weight? Might as well try a tattoo, according to the Federal Trade Commission. Besides disputing that the transdermal patch aids in weight loss, the agency challenges claims that the patch or its main ingredient, sea kelp, has been approved by the Food and Drug Administration (FDA). The FTC says Transdermal Products International Marketing Corporation and SG Institute of Health & Education aimed their sales pitch to Hispanic consumers.

DaimlerChrysler and GM Announce Hybrid Initiative The companies want to develop hybrid architecture that can be used in GM, Chrysler and Mercedes vehicles. DaimlerChrysler says the technology is expected to improve acceleration, not to mention fuel economy and range (which is really the same thing but it never hurts to have another bullet point).

Kentucky Sues J.D. Byrider The nationwide used car chain targets low-income consumers with bad credit and usually manages to slip past local consumer protection radar. But Kentucky has accused Byrider's Louisville franchise of misleading customers about its warranties, violating the federal Truth in Lending Act and making false claims about its "certified" vehicles.

A LUNGFUL OF LEAD
If you buy cigarettes on the Web or from shady vendors who cough up what look like name brands at low, low prices, you may be buying counterfeit cigarettes produced by smugglers allied with the Russian Mob and other unsavory characters. British health officials last week warned that smuggled cigarettes were contaminated with heavy metals, including the human carcinogens cadmium and arsenic. This is very bad stuff. U.S. authorities are mum on the subject for now, although many of those buying contraband smokes are teens who turn to the Web looking for vendors who'll sell to minors. P.S., Every single Web cigarette vendor we have checked sells to anyone who can hit Enter.

AIRBORNE BLATHER COMING SOON
Desperate for something they can charge extra for, the airlines are hoping to get a brisk tailwind from wireless Internet and cell phone service in their cabins. Both are on course following action by the Federal Communications Commission. Not only will the likes of American and Delta be able to gouge travelers for wireless data and phone calls but now they can start selling earplugs.

FCC Cuts Local Competitors Loose No longer will the Verizons of the world have to accommodate pesky competitors selling local service at a discount over lines owned by the local Bell company. The FCC bowed to court rulings that found the practice illegal. So don't look for MCI and AT&T offering local phone service in your neighborhood anytime soon. All their bluster aside, they're not about to pay the full freight.

TRAINS, PLANES, AUTOMOBILES
Whether it's trekking home for Christmas or heading for the slopes and beaches, Americans are on the move this holiday season. One survey finds that nearly 36% of Americans will be on the road or in the sky. AAA estimates that 62.7 million Americans will travel 50 miles or more from home this holiday, a 3 percent increase from last year. Anyone you go, lines will be long, traffic dense and prices high.

Holiday CHAOS Confronts US Air Flight attendants are threatening to stage scattered job actions as US Airways limps through what may be its last Christmas season.

United is cutting its flight schedule by 14 percent, eliminating many domestic flights and switching to smaller aircraft on many others. Continental, is adding non-stop service from Newark to Lagos, Nigeria, making it the only U.S. carrier to fly to six continents and the only one with scheduled service to Africa. It's cutting domestic flights, though.

Florida Probes On the ground, Florida Attorney General Charlie Crist is pursuing an anti-trust investigation into high gas prices in his state. He is asking a court to force Amerada Hess to open the spigot on information it has so far kept bottled up.

Premier Travel isn't going anywhere. The Florida-based travel club, which for years has been wrangling with consumer protection authorities, has declared bankruptcy. Its members, who paid up to $6,000 to join, are left holding an empty ticket envelope.

Airline Intelligence No, you don't normally see "airline" and "intelligence" in the same sentence but it's necessary to explain Congress' latest roundabout ways of operating. As part of the gigantic Intelligence Reform Bill, judging the merits of which is way above our pay grade, Congress inserted a few lines extending the requirement that surviving airlines honor the tickets issued by their bankrupt brethren. It also put a $50 ceiling on the prices airlines charge to rebook round-trip tickets. American and other carriers have recently been charging $100 for rebookings.

SEASON'S SCAMS & OUTRAGES

Big Pay Phone Refund Most of us never get more than a few nickels from pay phone return slots but New York Attorney General Eliot Spitzer has browbeaten a New York firm into paying $1.65 million to victims of a pay phone pyramid scheme.

Online Lawn Mower Scam In Missouri, which takes online scams seriously, a gentlemen who sold Troy Bilt lawn equipment on Internet auctions but didn't deliver the goods has been ordered to cough up the coins.

Texas Freezes Assets of Online University Trinity Southern, which gave an MBA to a Pennsylvania prosecutor's cat, is now in the doghouse with lawmen closer to home.

RECALLS & SAFETY WARNINGS

• Children's Metallic Necklaces The recalled necklaces have medallions that came in four different designs depicting frogs, dolphins with a small bead on the tail, a sunshine smiley face and an alien face on a starburst. They contain high levels of lead, exposing children to lead poisoning.
• Ford Expands Escape-Tribute Recall A problem with the accelerator cable can cause trouble.
• Swing-N-Slide Swing Seats The seat can break, throwing the user to the ground.
• First Team Basketball Hoops The backboard can fall off.
• Psion Laptop Power Adapters They can overheat and start a fire.

TOO MANY BLOWS TO THE HEAD?
Charlie Weis will be making about $2 million a year in his new job as head football coach for Notre Dame, so you'd think he would be filled with cheer. Instead the former New England Patriots offensive coordinator has filed a malpractice suit against five Massachusetts General surgeons who performed a gastric bypass operation on him in 2002. Weis says he suffered complications from the surgery that nearly killed him. But the surgeons' lawyer noted wryly that Weiss is: a., alive and apparently functioning well; and b., no longer weighs more than 300 pounds, as he did before the surgery. Maybe, they suggested, the surgeons did something right? The jury's not expected to be out very long on this one.

HOLIDAY PUBLICATION SCHEDULE
With Christmas and New Year's falling on Saturdays, we can't figure out what our holiday schedule is. So leave a light on and we may put a newsletter or two in your stocking. Never mind the milk and cookies. Drive carefully, eat judiciously, spend wisely and have a great holiday.

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