Current Events in June 2008

Sarah Scheuring tried for two months to contact her husband stationed in Afghanistan using a multitude of the prepaid AT&T calling cardsavailable to military personnel and their families, only to have the minutes on her cards disappear, leaving her with about two minutes of talk time for each $27.50 card.

An AT&T spokesman said the company believed it was an isolated incident and credited Scheuring's account.

I have spent over $700 in the last two months because I have no other option to get a hold of my husband, Scheuring wrote to us in mid-May.

Her husband, Charles, was deployed to Afghanistan in March after a 12-month stint in Iraq in 2005 and 2006.

He is stationed in an area where there is not even running water let alone Internet or a call center, Scheuring said. His international cell phone is all I have to communicate with him.

When she tries calling Charles on the prepaid cards sold exclusively on the Army Air Force Exchange Service Web site, she said 99 percent of the time it won't connect. Rather than just disconnect and not incur any charges, the service makes a noise like a fax machine and then starts ringing.

Instead of someone picking up the line, the phone just keeps ringing and while it's ringing it incurs charges, Scheuring said.

How is constant ringing a connected call? she asked.

It took her a a handful of $27.50 phone cards the most expensive AT&T offers soldiers and their families before she learned the incessant ringing was draining her minutes so quickly and now she said she knows when I hear the ringing, I hang up immediately.

But, even when she does not hang up the phone as soon as it starts ringing, it still charges her connection costs, which quickly burn up her minutes.

Frustrated with the almost complete lack of connectivity through AT&T and missing Charles, Scheuring decided to use her cell phone to make the calls. Even though her cell phone provider charged her $3.05 per minute, it was cheaper than what she was paying through the AT&T cards and considerably more convenient since her cell phone calls always went right through to her husband.

Scheuring said AT&T offered her a $350 voucher and told her that it was because of Afghanistan's phone service that her calls didn't go through. They also said they cannot guarantee prepaid minutes made to cell phones even though that language is absent in their terms and conditions.

Scheuring said she'd rather have cash because AT&T's service is useless to her and she would like some assistance paying back her cell phone debt and to pay back all the wasted money on nearly useless phone cards.

Later, Sarah clarified that AT&T, which is also her wireless provider, credited her wireless account with $454 on top of the $350 phone card they gave her.

Fletcher Cook, an AT&T; spokesperson said he believes it is an isolated incident because of her husband's remote location in Afghanistan.

"We've worked with this customer at length," Fletcher said. "We want to keep her happy and retain her as a customer."

After a call from ConsumerAffairs.com, AT&T; called Sarah and converted her $350 phone card, which she said was useless since AT&T's service was spotty, into a $350 wireless credit.

In the past few days Scheuring found an even better solution: IDT). Since Charles' cell phone is provided by IDT, Scheuring can use IDT's prepaid cards and connect immediately. She said she pays $10 for about 55 minutes now.

It's still more than what AT&T advertises for its cards, which are the only options for soldiers using the call centers at bases overseas, but Scheuring said she's just happy she's found some way to keep in contact with Charles during his 15-month deployment.

AT&T advertises these cards to troops and their families knowing that we do not have any other option, Scheuring said. Then they turn around and rip us off.

The U.S. Food and Drug Administration is cautioning consumers about a salmonellosis outbreak in New Mexico and Texas that it says appears to be linked to consumption of certain types of raw red tomatoes and products containing raw red tomatoes.

The consumer alert issued by the agency notes the bacteria causing the illnesses are Salmonella serotype Saintpaul, an uncommon type of Salmonella.

The specific type and source of tomatoes are under investigation. However, preliminary data suggest that raw red plum, red Roma, or round red tomatoes are the cause.

"At this time, consumers in New Mexico and Texas should limit their tomato consumption to tomatoes that have not been implicated in the outbreak," the FDA said in its alert. "These include cherry tomatoes, grape tomatoes, tomatoes sold with the vine still attached, and tomatoes grown at home."

Salmonella can cause serious and sometimes fatal infections particularly in young children, frail or elderly people, and those with weakened immune systems. Healthy people often experience fever, diarrhea, nausea, vomiting, and abdominal pain. In rare circumstances, the organism can get into the bloodstream and produce more severe illnesses.

Consumers in New Mexico and Texas who have recently eaten raw tomatoes or foods containing raw tomatoes and are experiencing any of these symptoms should contact their health care provider, the FDA said. All Salmonella infections should be reported to state or local health authorities.

From April 23 though June 1, 2008, there have been 57 reported cases of salmonellosis caused by Salmonella Saintpaul in New Mexico and Texas, including 17 hospitalizations. Approximately 30 reports of illness in Arizona, Colorado, Idaho, Illinois, Indiana, Kansas, and Utah are currently being investigated to determine whether they are also linked to tomatoes. There are no reported deaths.

FDA says the source of the contaminated tomatoes may be limited to a single grower or packer or tomatoes from a specific geographic area. The agency also notes that there are many tomato crops across the country and in foreign countries that are just becoming ready for harvest or will become ready in the coming months.

Alltel's 13.2 million cell phone subscribers are about to become Verizon Wireless customers. Verizon Wireless has agreed to buy its competitor for more than $28 billion, creating the U.S.' largest mobile phone company.

The new combined company will have more than 80 million customers, placing it slightly ahead of AT&T, currently the nation's largest cell phone provider.

Alltel currently operates its own network in 34 states, focusing mostly on serving small to medium sized U.S. cities. Verizon is purchasing Alltel from a unit of Goldman Sachs Group Inc., which acquired it late last year.

The deal still must be approved, not only by shareholders, but also by the Federal Communications Commission and the Justice Department. Analysts say Verizon will most likely have to sell off some of its regional assets in places where both companies currently complete.

Even so, executives at Verizon express confidence the deal can close by the end of 2008. Under the proposed terms, Verizon Wireless would aquire Alltel's assets for $5.9 billion and assume more than $22 billion in debt.

June 4, 2008    
Polaris Industries is expanding its recall of all-terrain vehicles (ATVs). The ATVs can have defective Electronic Control Modules (ECM) that overheat, posing a fire and burn hazard to riders.

Since the recall expansion announced in February 2008, Polaris has received four more reports of ECMs melting and two reports of smoke or fire contained to the ECM. No injuries have been reported.

This recall involves the Polaris ATVs with model year 2004 and model numbers listed below that have been serviced for electrical problems and received a defective EMC during service work. The ATVs were sold under market names Scrambler 500 and Sportsman 400, 500, or 6 x 6. The model number is printed on a decal attached to the front side of the radiator (Sportsman) or the top of the front cab cover (Scrambler 500).

The ATVs, made in the United States, were sold at Polaris dealers nationwide from July 2004 through January 2008 for between $3,800 and $7,900.

Consumers should disconnect the negative (black) battery cable from the battery when the ATV is not in use. Consumers should contact their local Polaris dealer to schedule a free repair. Registered owners received direct mail notification of this recall.

For additional information, contact Polaris toll-free at (888) 704-5290 between 8 a.m. and 5 p.m. CT Monday through Friday, or visit the firm's Web site at www.polarisindustries.com

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

Dubbed Eating Right Kids, the new line-up, which will roll out this summer, includes more than 100 food and drink products that will be promoted as helping moms pick more nutritious food for their children.

Warner Bros. chairman-CEO Barry Meyer said the deal is a way to turn its well-known cartoon characters into "ambassadors of health and fitness." He said the partnership "allows us to utilize the Looney Tunes characters' enduring popularity with kids and teens to promote a lifestyle choice that's healthier for them."

Both supermarkets and Hollywood have been pilloried by consumer groups for promoting and selling too much junk food to children, contributing to a nationwide epidemice of obesity and early health problems.

As part of the deal, Warner Bros. said it will no longer feature its Looney Tunes characters on less-healthy food packaging, other than certain ice cream products or birthday cakes.

"We've cleared the market of anything that might be considered unhealthy," said Brad Globe, prexy of Warner Bros. Worldwide Consumer Products. "Our Looney Tunes characters are our crown jewels. We said, 'Hey, we need to figure out how we can be part of some kind of solution and use our characters in a positive way that will improve the issues related to childhood obesity.'"

Safeway's Eating Right Kids packaging will exclusively feature such characters as Bugs Bunny, Tweety, Taz, Sylvester, Wile E. Coyote, Roadrunner, Marvin the Martian and Daffy Duck.

Included in the line-up are breakfast foods, portable meals, dairy, snacks and beverages.

Safeway said the products will be formulated based on the most recent dietary recommendations from several federal and state agencies, including the Dept. of Health and Human Services, the Dept. of Agriculture, Alliance for a Healthier Generation, as well as California's school nutrition guidelines.

Major Hollywood studios have been trying to push healthier eating. Disney no longer promotes its films through McDonald's and has recently stayed away from junk food manufacturers as promotional partners, Variety reported. DreamWorks Animation has featured Shrek in anti-obesity campaigns.

The price of the lowly egg has risen more than 30 percent over the last year in much of the country, but farmers say you shouldn't blame the chickens. Scratch around a little and you'll find that, like everything else these days, high gas prices are largely to blame.

The wholesale price for Grade A eggs currently hovers around $1.14 in much of the country, which translates to a retail price of about twice that much. At Pavilions on W. Olympic Blvd. in Beverly Hills, Calif., Lucerne cage-free A eggs were on sale for $4.79 a dozen this morning. A Safeway in Fairfax, Va., was offering Lucerne large AA eggs for $2.19 a dozen.

Like so many other food staples, eggs are found in a wide variety of prepared foods and are used extensively by do-it-yourself chefs, making it hard to avoid shelling out more for the nutritious ovoids. Egg substitutes are available but they usually cost more than the real thing.

Chicken ranchers say the cost of getting a hen ready to lay eggs is up 60 percent, thanks to chicken feed that, well, isn't chicken feed anymore. Feed costs a third more than last year. Then there's diesel fuel that's approaching $5 a gallon and packaging costs that are climbing nearly as fast. The plastic containers that hold the eggs have gone from 5 cents to more than 7 cents in many areas.

And don't forget those chilly mornings. Most chicken ranchers use propane to heat their chicken houses and provide hot water for washing the eggs. The cost of propane has risen 50 percent in the last year.

Ethanol gets the blame

So if chicken ranchers aren't to blame for the high prices, who is? Supermarkets say they're having trouble dealing with rising food and transportation costs while their customers become increasingly tight with a buck.

The National Retail Federation, the Washington-based trade association for grocery stores, chain restaurants and other retailers, puts a big part of the blame on Congress and its love affair with ethanol .

"We've seen a tremendous increase in food prices. I don't think there's any disagreement that our ethanol policy has played a role in that," said Erik Autor, a federation vice president, told the Atlanta Journal-Constitution. "We're very concerned about this. And it is one thing Congress can do something about."

Trying to cut imports of oil from the Middle East, Congress has mandated that Americans use 9 billion gallons of ethanol by year's end and 36 billion gallons by 2022. In addition, oil refiners who blend ethanol with gasoline receive a 51-cent-per-gallon tax credit.

Most of the nation's ethanol is produced from corn -- and corn is what makes the feed that fattens up not just hens but beef cattle, hogs and other creatures bred for human consumption. So as corn is diverted to gas tanks, there's less available for animal feed.

Rising demand for corn in China, India and other developing countries is also driving up prices.

Corn currently is going for about $5.99 a bushel but with fewer acres planted this year, prices could climb to $7 or even $8, some agriculture observers predict.

Daiso is recalling children's bracelets and zodiac signs. The jewelry contains high levels of lead. Lead is toxic if ingested by young children and can cause adverse health effects.

This recall involves children's bracelets and Zodiac-sign necklaces. The necklaces have a black, non-metal cord and a silver rectangular pendant. An abstract design and a zodiacal name is printed on the front. The bracelets have a black, non-metal cord and plastic beads. Silver pendants shaped as a knife, cupid, sun, heart and bird wings are sold with the bracelets. The jewelry has UPC numbers 984343144040 (necklace) and 947678164466 (bracelet) printed on the back label.

The items were sold at Daiso retail stores in Washington State from October 2007 through December 2007 for about $2. They were made in China.

Consumers should immediately take the jewelry from young children and return the item to the store where purchased for a full refund.

Consumer Contact: For additional information, contact Daiso LLC toll-free at (866) 768-4620 between 9:30 a.m. and 6:30 p.m. PT Monday through Friday, or visit the firm's Web site at www.daisollc.com.

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

Patients at Walter Reed Army Medical Center and other military hospitals had their personal information exposed in a security breach, officials said. As many as 1,000 patients may have been affected.

Details are scarce but Walter Reed officials said that the breach, which included names, Social Security numbers, and birth dates, was discovered on May 21 by a third-party data mining company, which the hospital did not identify.

Officials said the company found the exposed file while on another assignment and contacted Walter Reed.

The Associated Press reported that Walter Reed officials would only confirm that the data was found on a "non-governmental, non-secure network."

Walter Reed is contacting patients who were affected by the breach, and has set up a toll-free hotline (1-877-854-8542, ext. 9) for patients to determine if they were affected. Individuals affected by the breach will have credit monitoring services provided for them, the hospital said.

Government and military installations have encountered numerous forms of data breaches in recent years, from lost laptops, to accidental posting of information online, to sharing data without proper security precautions.

The biggest known government data breach on record remains the loss of records on 26.5 million veterans when a laptop containing the data was stolen from the home of an analyst for the Veterans' Administration (VA).

The laptop was eventually recovered, but not before investigators admitted keeping the breach secret for several weeks, as well as hiding several other breaches that had taken place during the last few years.

Other breaches included the accidental unencrypted transmission of 580,000 military members' personal data by contracting company SAIC in July 2007. SAIC had been handling health care processing claims for TRICARE, the military medical network, and had been assisting multiple branches of the military as well as the Department of Homeland Security (DHS).

The extensive outsourcing of many governmental and military functions to private contractors has been criticized as a potential threat to national security.

In 2006 a report by the Government Accountability Office (GAO) criticized the trend, particularly in cases when contractors who had received outsourced government information then subcontracted the data out to third-party companies, many of which were located outside the United States.

In fact, nearly 210,000 people -- approximately 16,200 of them children under age 19 -- were treated in doctors' offices, clinics and emergency rooms for lawn mower-related injuries in 2007, the U.S. Consumer Product Safety Commission reports.

To help prevent injuries, the American Society for Reconstructive Microsurgery, the American Academy of Orthopaedic Surgeons, the American Society of Plastic Surgeons and the American Academy of Pediatrics, have teamed up to educate parents, adults and children about the importance of lawn mower safety.

"Parents need to understand that lawnmowers can cause terrible devastating injuries to children's hands, feet or faces, which can impact the rest of their lives," said ASRM President Neil Jones, MD. "The tragedy is that most of these injuries are totally preventable by following some simple precautions."

The doctors offer the following tips to help prevent lawn mower-related injuries:

• Children should be at least 12 years old before they operate any lawn mower, and at least 16 years old for a ride-on mower.

• Children should never be passengers on ride-on mowers.

• Always wear sturdy shoes while mowing -- not sandals.

• Young children should be a safe distance from the area you are mowing.

• Before mowing, pick up stones, toys and debris from the lawn to prevent injuries from flying objects.

• Always wear eye and hearing protection.

• Use a mower with a control that stops it from moving forward if the handle is released.

• Never pull backward or mow in reverse unless absolutely necessary carefully look for others behind you when you do.

• Start and refuel mowers outdoors -- not in a garage. Refuel with the motor turned off and cool.

• Blade settings should be made only by an adult .

• Wait for blades to stop completely before removing the grass catcher, unclogging the discharge chute, or crossing gravel roads.

Many lawn mower-related injuries require a team of physicians from various specialties to properly repair them. Often, patients must endure painful reconstructive operations to restore form and function.

"Many children who sustain lawn mower injuries must undergo reconstructive surgery for months, sometimes years, after the initial accident," said ASPS President Richard D'Amico, MD. "The look on parents' faces can be truly heart wrenching. We are the physicians called to treat these devastating injuries, but would do anything to prevent them in the first place."

"Parents want to protect their children from accidents and injuries. But every summer we see children and teens using lawnmowers in an unsafe manner," said AAP President Renee Jenkins, MD. "It is our job as pediatricians to help get information to parents about how to prevent injuries that are common during summer months, and that includes injuries from lawnmowers."

Everyone wants something for free and businesses cleverly exploit that desire with rewards programs, offering regular customers everything from a free night's stay in a hotel to a free pizza. But Consumer Reportssays its review of rewards programs finds reaping real savings can be tough.

Consumers complain frequently to ConsumerAffairs.com about every imaginable problem with rewards programs. Take Joseph of Vacaville, Calif. He bought a washing machine from Best Buy, only to have his son--who lives 500 miles away--call to say that Best Buy was trying to deliver a washing machine to him.

"Everytime I buy something the information is wrong," Joseph complained. "I have not received rewards in over a year which I was getting on a regular basis until these problems starting happening."

Consumers frequently buy products or services based on rewards card promises that never come through. That's what happened to Michael of Seymour, Conn., who agreed to add AT&T's DSL service to his account based on a promise of a $50 credit to his phone bill and a $50 credit on a Visa rewards card.

"About 2 weeks later I received a letter saying my phone choice will cause my bill to go to $79 a month. I called and the rep assured me $50 a month. Two months later I received my first phone bill for $149. The $50 credit on the account appears on my bill but is NOT applied to any charges, they won't adjust the bill ... and I cant get my reward card. They said it got lost in the mail," Michael said.

About 85 percent of U.S. households participate in at least one rewards program. A recent poll of Consumer Reports Money Adviser subscribers found that 41 percent of the newsletter's subscribers carried three to five such membership cards, nine percent had six to nine of them, and 3 percent somehow found room on their key rings or in their wallet for 10 or more.

Dizzying number

Consumer Reports finds that along with the dizzying number of programs have come increasingly complex rules, restrictions, and limits on how much consumers can earn--making many of the programs not worth the bother.

"Carrying the right cards and ignoring the rest can save you a little money on your purchases, but consumers must choose programs that compliment their spending habits," said Amanda Walker, senior project editor at Consumer Reports.

Some rewards cards do double duty as credit cards. Cash-back, gas, and grocery rewards credit cards can offer some relief for costly essential items, but often carry higher Annual Percentage Rates than traditional credit cards. Looking at some of the more generous credit card rewards programs, CR found that rates varied from 9.74 percent to as much as 19.99 percent.

"If the rates are high, the cost to carry a balance will often erase any savings the rewards program may offer," Walker said.

What to do

There are ways to come out ahead with rewards programs and Consumer Reports offers the following advice:

• Consider where you shop. Save your key ring or wallet space for cards that will earn rewards at stores you use most often.

• Project your spending. Translate the amount you're likely to spend into cash back or points, depending on the program. If it's points, find out how many you need to get something you might want. If you're using a credit card, subtract the annual fee, if any. If that calculation shows you'd have to spend a fortune to earn a pittance in rewards, you might want to use another card.

• Favor cash back. You might never redeem your points, so at least you will get something. Plus cash-back cards tend to be more generous in their rewards, CR's research has found.

• Skip credit if you carry a balance. Rewards credit cards often charge relatively high interest rates, which will eat up your reward if you carry a revolving balance. The issuer can also hold points hostage or stop adding to them if your payment is late.

• Do the math on do-good programs. Cards that give your reward to a charity usually pay only about 25 to 50 cents for every $100 you spend. And you can't write off the donation on your taxes. Both you and the charity might do better if you use a more generous rewards card, keep the money, and just write the charity a check.

• Use airline miles fast. Cashing in frequent-flyer rewards has become more difficult because airlines have cut flights and now have fewer seats available. So rack them up and use them up as quickly as possible. Airlines also change their rules frequently, and several big carriers have recently gone bankrupt.

• Avoid temptation. Research has shown that people who use rewards cards charge more. It's easy to overspend just to earn a new digital camera or set of golf clubs.

Business cards

The "use it fast" advice applies to more than just airline awards. Credit card awards can vanish in no time, as Marianne of Rockaway, N.J., learned.

"I closed my Citibank credit card last month. It turns out that I closed it within a few hours of my statement closing date. Because of that, I missed out on over $200 cash in rewards," she told ConsumerAffairs.com.

"I called Customer Service and was advised that I could not recoup my rewards for the statement. I asked to reinstate my card so that I could get these rewards returned to me and was told this is not an option. I was highly dissatisfied with this entire situation," she said.

Perhaps the most notorious rewards program at the moment is the one offered to unwary customers by Vistaprint.

"I ordered business cards through VistaPrint for my new business last April," said Mia of Brunswick, Ga. "In trying to rectify a strange charge on my account today, my husband noticed a charge for $14.95 for the VP Rewards program. He asked me about it, thinking it was a charge for a playgroup for our kids. Nope. Vistaprint. ... Once we went looking, he realized this charge had been occurring every month since May of 2007."

Anti-smoking groups are praising Wegmans Food Markets and DeCicco Markets for discontinuing the sale of tobacco products at their stores.

The American Lung Association of New York State presented Wegmans with the Lung Champion Award to recognize the Rochester, N.Y.-based grocers January 2008 decision to stop the sale of such items at all 70 of its locations, which are in New York, Pennsylvania, New Jersey, Virginia, and Maryland.

The American Lung Association of New York State commends Wegmans for its leadership in removing cigarettes from store shelves and putting the public health of its employees and customers above profits, said Deborah Carioto, president of the organization. Smoking is the leading cause of preventable death in this country, and with the single act of halting tobacco sales in its stores, Wegmans has set what I hope will be a trend among major retailers in this country.

Besides banning the sale of tobacco products, Wegmans now offers a quit-smoking program for its employees. It said 550 are currently enrolled.

Wegmans believes that the many young people who work in our stores will be affected by the message the company they work for is willing to give up profits out of concern for their health, said Wegmans vice president Mary Ellen Burris.

Pelham, N.Y.-based DeCicco Markets, with locations in both Westchester and Rockland counties, stopped selling tobacco products at five of its six grocery stores in February. The sixth location, which opened in Ardsley, N.Y. last year, has never carried tobacco products.

DeCicco was honored at the sixth annual No Thanks, Big Tobacco appreciation event sponsored by the Elmsford, N.Y.-based Tobacco Control Partners of the Lower Hudson Valley.

Other grocers that have recently stopped carrying cigarettes include six New Jersey ShopRites operated by ShopRites of Cherry Hill, Budwey Supermarket stores in upstate New York, and Andronicos in Albany, Calif., Progressive Grocer reported.

State tax

New York State is also giving smokers a powerful incentive to quit: a $1.25 per pack increase in the state cigarette tax. The increase, the largest ever enacted, becomes effective tomorrow.

"According to our New York State Department of Health, this tax increase will prevent approximately 243,000 children alive today from becoming smokers in the future, and will motivate about 140,000 adult smokers to quit for good, said Rachel Iverson, associate director of the Tobacco Control Program at the New York State Department of Health.

A federal court judge has given final approval to the settlement of a class action lawsuit against De Beers, the world's largest diamond importer, that would pay out roughly $297 million to consumers, diamond merchants and resellers.

The lawsuit charged that De Beers and its subsidiaries violated antitrust, unfair competition and consumer-protection laws by monopolizing diamond supplies, and conspired to control the diamond prices by fixing and raising them as per their discretion.

The South African company, which controls 40 percent of the world's diamond trade, was also charged with false advertising.

Under the settlement, De Beers would pay $22.5 million to the "direct purchaser class members and $272.5 million to "indirect purchaser class members."

Consumers who purchased diamonds from De Beers directly or indirectly between 1994 and 2006 will be eligible to receive a rebate. The rebate amount will be determined based on the quality of the diamond.

De Beers said it had done nothing wrong. In a statement, the company said: We believe that settling these class actions has allowed us to put these matters behind us, and is in the best interests of our shareholders, our clients and, most importantly, consumers confidence in diamonds."

More information is available at www.DiamondsClassAction.com.