Current Events in November 2000

WASHINGTON, Nov. 28, 2000 -- Defendants in a pyramid scheme that disguised itself as a legitimate work-at-home operation have agreed to settle Federal Trade Commission charges that the scheme violated federal laws. The settlement bans the defendants from engaging in pyramid schemes in the future, bars misrepresentations about the availability and profitability of jobs and requires that the defendants pay $72,000 in consumer redress.

On July 7, 1999, the FTC alleged that DP Marketing and its principals, David Martinelli, Jr. and Deana Plourde, sent consumers unsolicited commercial e-mail -- "spam" -- with messages such as:

"National Marketing Company seeks individuals to handle office duties from home. This is a full or part-time position with a salary of $13.50/hr. The position consists of processing applications for credit, loans or employment, as well as online consumer service."

Cosco Inc. is voluntarily recalling about one million Options 5 High Chairs. The high chairs are adjustable and have both recline and upright positions. In the recline position, the seats can separate from the frame and fall to the ground. In the upright position, the seats can slip from their set height position to the lowest position or can fall to the ground.

Additionally, some seats were sold with a metal restraint anchor that can slip through the back of the seat allowing the child to fall to the ground. Infants and toddlers can suffer head, face and bodily injuries.

The recall is being conducted in cooperation with the U.S. Consumer Product Safety Commission (CPSC).

Cosco and CPSC have received 168 reports of incidents involving the high chairs' seats or restraints, including 57 injury reports, primarily to the head and face. Two children reportedly suffered slight concussions; twelve children were monitored for head injuries; and others suffered swollen eyes, bloody noses and lips, bumps and bruises.

The Cosco Options 5 High Chairs being recalled have five options for use: high chair, infant feeding, youth chair, play chair and booster seat. The chair's seat can be used in a reclined infant position or adjusted into seven upright height positions for toddlers. It has four tray positions, a vinyl seat pad and a removable footrest. "Cosco" is on the chair's leg support bar, tray and on a sticker on the bottom of the seat. The restraint system consists of a waist/crotch belt and a plastic T-bar attached to the tray. The recalled chairs can be identified by model number 03-286 and manufacture date, which are located on the bottom of the seat.

The Options 5 High Chairs subject to this recall were manufactured from December 1, 1997 through August 11, 2000. Mass merchandise, juvenile products and major discount department stores nationwide sold the high chairs for about $40 to $50.

Cosco is offering consumers two types of repair kits, depending on the date their high chair was manufactured. To prevent seat separation, all kits will contain a redesigned handle that stays out and fits over the frame each time the seat is used in the recline position. In many incidents in the recline position, the handle was not over the frame of the high chair.

Consumers should stop using these high chairs immediately, and order a free repair kit from Cosco by calling (800) 221-6736 between 8 a.m. and 4:30 p.m. ET Monday through Friday. Consumers also may visit the company's web site to order a free repair kit and to obtain instructions for proper assembly and use. When contacting Cosco, consumers should have the chair in front of them to provide the model number and four-digit manufacture date, which are located on the bottom of the seat. The manufacture date will determine which repair kit is needed.

Bridgestone/Firestone has agreed to replace an additional 1.4 million tires beyond the 6.5 million AT, ATX II and specific Wilderness tires covered in a recall ordered by the National Highway Traffic Safety Administration (NHTSA).

The action resulted from an agreement with the Attorneys General of 48 states, Puerto Rico and the District of Columbia.

The additional tires have been identified as having high tread separation rates. Included are 24 tire models, including additional sizes of the ATX and specific tires from the Firehawk, ATX 23 Degree, Widetrack Radial Baja, Wilderness AT and Wilderness HT lines.

Consumers should go to an authorized Bridgestone/Firestone dealer to obtain reimbursement forms. Consumers will receive up to $140 per tire for any competitor's tire they purchase to replace one of the tires listed under the recall. Bridgestone/Firestone has also agreed to transfer any road hazard warranty or insurance to the new tire, free of charge. It will take four to six weeks for the reimbursement check to arrive.

Additionally, the Attorneys General requested -- and Bridgestone/Firestone agreed -- that consumers will no longer have to sign a release waiving their legal rights as a condition of participating in the recall program. Any such waivers that were signed prior to the agreement will not be enforced.

WASHINGTON, Nov. 21, 2000 -- The National Highway Traffic Safety Administration (NHTSA) may be taking aim at Goodyear. The agency is reported to be about to open an investigation into defects in Goodyear Wrangler Load Range E tires used on commercial-size pickup trucks and vans.

The Washington Post reported that the agency has received 37 complaints about the Wrangler tires and said there have been 25 lawsuits filed against Goodyear alleging tread separation and other premature failures.

The tires are provided as original equipment on heavy-duty Dodge and Ford pickups and vans. About 27.5 million of the tires have been manufactured under Goodyear and other brand names.

Goodyear said it has replaced the tires for some customers who have had problems but denied that the model has a safety defect. The company maintains the problelms are due to overloading and vehicle modifications.

Goodyear has been making the tires for a decade. It modified the design in the mid-1990s after receiving complaints about tire failures. That could open the company to charges that it knew about a defect but failed to notify NHTSA as required by law.

Some 6.5 million Bridgestone/Firestone tires used on Ford Explorers and other vehicles have been recalled. Ford has claimed that problems disappeared when the Firestone tires were replaced with Goodyears. A NHTSA probe of Goodyear would potentially call those claims into doubt.