Current Events in November 2008

The earlier recall, issued October 27, was for cat food produced at Mars' Allenton, Pa., plant on August 11, 2008. The recall is now being extended to cover all dry pet food produced at the plant with a "best by" date between August 11, 2009 and October 3, 2009.

The recall affects only products sold at BJ's Wholesale Club, ShopRite Supermarkets, and Wal-Mart locations in Connecticut, Delaware, Massachusetts, Maryland, Maine, North Carolina, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia, Vermont, and West Virginia. No other customers and no other states are affected.

Retailers have been notified of the recall and asked to remove the products from their shelves. The recalled pet food should not be fed to pets and should be handled carefully by consumers. Consumers should wear disposable gloves and wash their hands carefully when handling any food product thought to carry Salmonella.

Mars makes a variety of pet foods, including Nutro dog food, which has been the target of hundreds of complaints from angry pet ownes who have written to ConsumerAffairs.com.

Eric of Lowell, Mass., said his dog became ill when he switched to Nutro.

"Bottom line? He became sick after eating Nutro. He got better after stopping eating Nutro," Eric said.

Salmonella

Salmonella can cause serious infections in dogs and cats, experts say. People can also be infected if they handle the tainted food. Children, the elderly, and those with compromised immune systems are especially vulnerable.

Symptoms of Salmonella infection in humans include nausea, vomiting, diarrhea or bloody diarrhea, abdominal cramping and fever. Salmonella can, in rare cases, cause such serious illnesses as arterial infections, arthritis, muscle pain, and urinary tract symptoms.

Pets infected with Salmonella may be lethargic and have diarrhea or bloody diarrhea, fever, and vomiting. Some pets, however, may only have decreased appetite, fever and abdominal pain.

Pet owners whose cats ate the recalled food and have these symptoms should contact their veterinarian.

Mars said it was trying to get ahead of the problem.

"We are continuously monitoring and updating our processes to be at the forefront of product quality, innovation, customer responsiveness, and manufacturing efficiency. In recent months, we have invested tens of millions of dollars in plant upgrades, new testing protocols, advanced associate training, and a new state of the art testing facility that will open in mid-2009," the company said in a statement.

For more information about the recall, pet owners can contact the company at 1-877-568-4463.

More about pets ...

The newspaper quoted FDA official Stephen Sundlof as saying the finding is "no cause for concern." He said the chemical was at very low levels and was probably the result of contact with melamine during processing or packaging. Sundlof said the agency also found minute amounts of melamine in products such as nutritional and medical supplements made by five U.S. manufacturers of infant formula.

Melamine is a chemical used to make plastic and fertilizers. It is not allowed in human or pet food, although in the late 1960s or early 1970s, the FDA approved melamine as a "food contact substance," Sundlof said.

Sundlof said the discovery was part of a testing program that went into high gear after melamine in Chinese infant formula sickened tens of thousands of Chinese infants and killed four. Samples tested by FDA came not only from ethnic markets but also from products produced by the five major U.S. infant formula manufacturers.

Animal tests are now being conducted to determine melamine safety levels, he said.

Imports detained

Earlier this month, the FDA announced that it was detaining scores of products imported from China, including some pet food, because of possible melamine contamination.

Under this action, dozens of Chinese-imported items that contain milk products will be held at the border -- and not allowed to enter the U.S. -- until the importers can prove the items are not tainted with melamine or are not made with milk or milk-derived ingredients.

The products listed in the import alert -- a precautionary measure designed to keep food tainted with melamine from entering the country -- include candy, cereals, snack foods, cheese, ice cream, soft drinks and baby food products.

"We've continued to get information from others in the international community, and reports from China, about (melamine contamination) moving into different commodities," Steve Solomon, a senior FDA enforcement official, told The Associated Press. "Most of the products we are talking about are finished products like cookies, cakes and candies. The impact will be for various ethnic communities looking for specific products."

"The (infants') illnesses involved the formation of kidney stones and crystals and related complications," the FDA wrote in the import alert. It added that some 13,000 infants were hospitalized after drinking the tainted formula.

"The milk used in the infant formula has been implicated as the source of the melamine contamination." The FDA learned that melamine was added to the infant formula to increase the nitrogen content and falsely inflate the protein content.

The melamine contamination, however, isn't limited to infant formula.

"FDA analyses have detected melamine and cyanuric acid in a number of products that contain milk or milk-derived ingredients, including candy and beverages," the agency wrote.

And those products were shipped to consumers around the world.

More than 13 countries -- including Asia, Europe and Australia--have discovered melamine in a variety of products made with the tainted milk ingredients from China, the FDA said. Those products include candy, yogurt, frozen desserts, biscuits, instant coffee, milk tea products, and other beverages.

Two online digital camera and electronic retailers used deceptive tactics to dupe consumers into buying overpriced and, in some cases, used products, according to a lawsuit filed today by Texas Attorney General Greg Abbott.

Abbott's office charged Broadway Photo, L.L.C. and Starlight Camera & Video Inc., both of Brooklyn, N.Y, with conducting unlawful bait-and-switch sales schemes.

According to state investigators, those companies hoodwinked consumers by offering the lowest retail prices on price-comparison Web sites.

Once consumers bought merchandise and made credit card purchases on the companies' Web sites, they were told their orders had been processed. Despite those notifications, consumers were later told to call and confirm their orders.

"Rather than use the calls to confirm customers orders, the defendants instead initiated aggressive, high-pressure sales pitches promoting over-priced accessories, including memory cards and batteries," Abbott's office said in a written statement. "The defendants' telemarketers insisted these upgraded accessories were needed in order for the customers' confirmed merchandise to function normally."

When consumers refused those offers, the companies told them their merchandise was "substandard and lacked warranties," Abbott said.

"The defendants' telemarketers encouraged customers to purchase different, more expensive products," Abbott said. "If customers refused, the defendants canceled the orders, claiming the products were indefinitely back-ordered. When the defendants actually did ship orders, customers who intended to purchase new merchandise often received used or refurbished products."

Abbott's office is seeking restitution for consumers, injunctions to stop the companies' action, and civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act.

Texas consumers taken by the companies' schemes can file complaints on the Attorney General's Web site.

More Scam Alerts ...

November 24, 2008
BMW is recalling about 2,500 M3 vehicles from the 2008-2009 model years with an optional double clutch transmission.

The problem involves the double clutch gearbox. In a situation of rapid deceleration, the transmission software may perform a multistage downshift. At low speeds, it is possible that the engine could stall, increasing the risk of a crash.

Dealers will reprogram the engine and transmission electronic control unit free of charge. The recall is expected to begin in November.

Owners may contact BMW at 1-800-831-1117.

Consumers may contact the National Highway Traffic Safety Administration (NHTSA) at 1-888-327-4236 (TTY: 1-800-424-9153) or at www.safercar.gov.

November 24, 2008
Honda is recalling about 4,000 model year 2001 Accord and Civic vehicles. The driver's air bag inflator could produce excessive internal pressure, possibly causing it to rupture upon deployment.

The rupture could permit metal fragments to pass through the air bag cushio material, possibly causing injury.

Dealers will replace the inflator free of charge when the recall begins in late December.

Owners may contact Honda at 1-800-999-1009.

Consumers may contact the National Highway Traffic Safety Administration (NHTSA) at 1-888-327-4236 (TTY: 1-800-424-9153) or at www.safercar.gov.

Three years after Hurricane Katrina devastated the Mississippi Gulf Coast, the state is still investigating home repair fraud complaints and making arrests.

In the last few weeks Mississippi Attorney General Jim Hood says his office has made three more arrests for home repair fraud in cases being worked by its Consumer Protection Division. The arrests are the Attorney General's 95th, 96th and 97th since Hurricane Katrina.

Randy Lee Davis, age 36, living in Stone County, turned himself into the Consumer Protection Division on Tuesday November 18, 2008 on a charge of felony home repair fraud. Davis, who had been living in Saucier, is accused by a Saucier resident of failing to build a new home in Saucier after the homeowner lost a home in Pass Christian to Hurricane Katrina.

Edward William Callison, age 62, of Fort Worth Texas, was arrested on November 17, 2008. Callison had moved to South Mississippi in late 2005 and opened a model home/modular home sales lot on Highway 49 in Gulfport, under the name Becky Sue's Gallery of Homes. He then moved back to Texas, closing the business after July of 2007. In late 2007 and early 2008, the Consumer Protection Division began to receive complaints.

In one complaint, a Hancock County resident paid for a home that was never delivered. In two other complaints, homes were delivered but the homeowner's had numerous problems with the installation not being completed.

Edward Callison's wife, Becky Sue Callison, age 51, of Fort Worth Texas, was arrested on November 6, 2008 and charged Felony Home Repair Fraud and Felony Embezzlement.

"We are nearing 100 arrests for home repair fraud since Katrina," said Hood. "We will keep at it as long as the cons continue to operate."

Did you know there was actually an upside to this down market? Just as the pilgrims gave thanks for their harvest, it may be fitting this Thanksgiving to give thanks to something called "tax loss harvesting." It's a little known strategy that some investors plan to use this year to take advantage of losses in the stock market to offset any capital gains and even some ordinary income tax liability.

All you have to do is sell those losers in your investment portfolio by the end of the year and you can use any losses to cash in on an equal amount of investment gains tax-free. You can even use those losses to offset up to $3,000 of ordinary income and carry over excess losses into future years.

Although you need to check with your accountant before you try to apply this strategy to your own situation, here is a short general course in a legal tax loophole that the rich have been using for years.

Tax loss harvesting

Before you can understand tax loss harvesting, you have to try to understand our complex tax laws. As written, the current tax laws allow you to "realize" losses to offset gains "realized" with other investments. Realize is just a short hand way of saying that when you sold your stock you either "made or lost" money depending on whether the sale price was higher or lower than what you paid for it. Using financial lingo, "realize" stands for that gain or loss.

In better times, logic would often dictate that when a stock price is lower than what you paid for it, you would want to hold on to it until the price goes up and then sell it so you actually make money. Granted you have to pay taxes on what you make (which is called a capital gains tax) but you still gained and thats usually better than a loss.

But these are unusual times, when stock prices are more likely to continue going down instead of up, and when taking a loss might prove to be a gain around tax time. And taking or "harvesting" a loss becomes a prudent way of offsetting not only capital gains but up to $3,000 in ordinary income.

Short and long-term gains

To make things even more complicated, the IRS divides capital gains and losses between short-term and long-term and taxes each one differently. Short-term capital gains and losses occur when you sell a security you've owned for less than one year. Short-term gains are taxed at the same rate as your ordinary income, which means whatever tax bracket you're in, and the maximum rate is now 35 percent, that's the rate you'll pay for short term gains.

On the other hand, long-term capital gains and losses, those held for longer than one year, are currently taxed at just 15 percent.

If you sold securities, stocks, bonds or mutual funds that resulted in a long or short term capital (which means money) gain earlier in the year, you can now sell those securities and take losses in order to offset any previous gain. Long-term losses will offset long-term gains. Short-term losses will offset short-term gains. And net losses in either category will then offset gains in the other category.

If the net result is an overall loss in capital, the excess loss can be used to offset ordinary income dollar-for-dollar up to a maximum $3,000. Any excess capital losses can be carried forward indefinitely to reduce capital gains liability and ordinary income in future years. As an investment strategy, this process is known as tax loss harvesting.

"Wash Sale" rule

There, however, are some rules and restrictions. For example, the IRS will not let you take a tax loss deduction from the sale of a stock or security, if the same or a substantially identical stock or security (I'll explain this later) was purchased within 30 days before or after the sale, which adds up to a total of 60 days. This is known as the "wash sale" rule. However, any loss could be added to the cost of any new securities purchased so that when youve finally moved outside of the wash-sale window period of 61 days, that loss would be calculated into the selling price of the security.

Substantially identical securities

The Wash-Sale rule doesn't really spell out or define what it means by the term "substantially identical." When it comes to stocks, this term doesn't really apply since stocks are shares in a particular company and each one is different. Bonds on the other hand tell a different story. Financial experts say bonds that have different issuers or there are substantial differences in either maturity or coupon rate would not be considered substantially identical. But, if an investor finds a replacement bond with a similar coupon, duration and maturity and credit rating, yet with a different issuer, the actual composition of the portfolio would be virtually unchanged.

Preparing for future higher tax rates

Under current tax law, the maximum tax rate for long-term capital gains is 15percent, and the maximum tax rate on income for individuals is 35 percent. According to the Tax Policy Center, these rates are expected to move higher under the new Obama administration. For those in the top two income brackets, a new maximum capital gains rate of 20 percent may be created. For ordinary income, the top two income brackets may return to their 1990's levels of 36 percent and 39.6 percent.

Consult your tax advisor

You should consult with your tax advisors as to whether there are potential benefits of harvesting tax losses now versus what can be carried forward for use in the future when capital gains and ordinary income is expected to be taxed at higher rates for some individuals. Keep in mind that the administration's tax proposals must be approved by Congress. There may be state and local taxes that have to be considered. Then there also all those transaction costs, such as brokerage fees, that may apply if you are buying and selling securities. So make sure youve considered the complete field of pros and cons of tax-loss harvesting before reaping this crop.

---
Fred Yager, a veteran AP and CBS News journalist, was formerly president of Merrill-Lynch Broadcasting.

HSUS officials announced those and other findings from its largest puppy mill investigation during a press conference on Thursday.

The HSUS's findings come just days after Petland assured ConsumerAffairs.com that it buys its puppies from expert breeders licensed professional pet distributors, "who have years of experience in raising quality pets."

Petland reiterated those comments today and called the HSUS's investigation "sensationalism at its best."

But HSUS officials said their investigation uncovered evidence that shows Petland's main sources of puppies are puppy mills -- mass commercial breeding operations that churn out two to four million puppies each year.

Those puppies are raised in deplorable conditions and often have health problems, genetic defects, and behavioral issues, according to the HSUS.

During its investigation, HSUS investigators visited 21 Petland stores nationwide. At each of those stores, employees told HSUS investigators that its puppies came from reliable, USDA breeders.

HSUS investigators also tracked the sale of nearly 17,000 puppies sold at Petland stores across the country and found nearly every one of those dogs was shipped hundreds of miles from puppy mills in the Midwest.

Most of those breeding operations had numerous violations with the United States Department of Agriculture (USDA), the federal agency charged with inspecting dog breeders.

"Petland is perpetuating the abusive puppy mill industry, where dogs are treated not like pets, but like a cash crop," said Stephanie Shain, the HSUS's puppy mill expert and director of its Stop Puppy Mills Campaign. "They know that consumers won't stand for the cruelty inherent in mass-breeding facilities, so they make outrageous claims to hide the reality that the dogs came from puppy mills. People have a right to know exactly what they are buying, but the real victims are the breeding dogs who are confined to life in a cage for as long as people are duped into buying their puppies."

The HSUS made the following claims from its investigation:

• Many Petland puppies come from massive commercial breeders in Missouri and other Midwestern states, where hundreds of breeding dogs are packed into cramped, cages--often for their entire lives -- with no socialization, exercise, or human interaction. But Petland's employees--and even its corporate Web site-- claim the company knows its breeders and deals only with those who have "the highest standards of pet care."

• 35 of the large-scale breeding operations linked to Petland stores that HSUS officials visited were puppy mills. "At many, investigators saw appalling conditions: puppies living in filthy, barren cages reeking of urine, with inadequate care and socialization," HSUS officials said.

• Petland buys many of its puppies from "middle men" -- large-scale pet distributors that are often called brokers. "The company may not even know who the breeders are or what their standards of care may be like," HSUS officials said. Investigators also learned that some of Petland's brokers also buy from puppy mills.

• Petland buys some of its puppies from an online pet auction Web site. "Many Petland stores are not screening breeders as the company's Web site claims," HSUS officials said. "In fact, in some cases it may not even know the breeder's name until after purchase."

• Petland often tells consumers that it uses "USDA licensed" breeders -- and use that claim as a shield to hide the truth. But HSUS investigators reviewed the publicly available USDA inspection reports and state reports for more than 100 Petland breeders. They found more than 60 percent of those reports listed serious violations of basic animal care regulations. "Many USDA breeders exhibit a long history of substandard care and yet remained licensed," HSUS officials said. "While USDA regulations are minimal, some of the Petland breeders are not even complying with these basic animal welfare standards."

• Some of Petland's breeders and suppliers had numerous USDA violations. For example, they were dirty, had unkempt enclosures, inadequate shelter from the cold, poor veterinary care, and housed many dogs in cages that were too small. Some breeders also had sick or dead dogs in their cages.

"We are nation of dog lovers," said Michael Markarian, executive vice-president of the HSUS. "And people are going to be shocked by what we foundthey won't stand for this."

Markarian called on Petland--a company HSUS officials describe as the No.1 retail supporter of puppy mills -- to stop selling puppies in its stores.

He also urged the company to join other pet retailers, like PETCO and PetSmart, which let animal shelters hold animal adoptions in their stores.

"As we lead into the holiday season, when many people think about getting a puppy, we wanted to let them know about the dark side of this (pet) industry," Markarian said. "And we are calling on Petland to be socially responsible."

"Sensationalism at its best"

Petland spokesperson Lacey Clever defended the company's practices.

"At Petland, healthy, happy, well-socialized pets within our care are our number one priority as they have been for 41 years," Clever said. "We do not support substandard breeding facilities and we provide each Petland store with "Humane Care Guidelines," that were developed in conjunction with the USDA to assist with breeder facility inspections as it pertains to pet selection."

Clever also criticized the HSUS's investigation, and the timing of its release.

"Reports such as those posted on the HSUS Web site surface every year around the holiday season in conjunction with their annual fundraising efforts," she wrote. "Unfortunately, we were not interviewed or consulted nor were we a part of any of the editing process.

"This is sensationalism at its best," Clever added. "HSUS has a history of publicizing false information in an effort to raise money. They do not operate a single pet shelter or pet adoption facility anywhere in the U.S. To the contrary, over the last 10 years, Petland has adopted out more than 270,000 homeless puppies and kittens nationwide."

During an interview earlier this week with ConsumerAffairs.com, Clever echoed many of those sentiments.

She also told us that Petland representatives inspect their distributors' and breeders' facilities.

"In addition, these facilities are licensed and inspected by the federal government (USDA)," she said. "We require that our franchisees buy only from Petland, Inc. associated facilities. We even encourage our franchisees to visit facilities for themselves."

Petland, she said, even has a "Do Not Buy List" of breeders that operate substandard facilities.

And the company encourages its customers to adopt from local animal shelters. "We have an Adopt-A-Pet program that enables our stores to partner with local shelters and rescue groups on whatever level works for them," Clever said. "Some stores have fundraisers and donation drives for their local shelters while others have a more intense partnership, providing kennel space for shelter animals."

Petland, she said, is also taking action to put substandard breeding operations out of business.

"(We) want to be part of the solution in regards to substandard facilities, which is why we are out there inspecting facilities and making sure that our puppies come from happy, loving environments," Clever said. "As an industry leader, we hope that others follow this example and soon these facilities will no longer be in business."

"Don't be fooled"

"We're calling on consumers to not be fooled by the assurances they hear from Petland," said the HSUS's Markarian. "If they tell you that they only get their dogs from the best breeders, don't be fooled. We found that in many cases they are buying puppies from middleman and brokers -- and they may not even know who the breeder is."

HSUS officials said they will continue their investigation and determine in any charges can be filed in connection with their findings.

Consumers can learn more about the HSUS's Petland investigation -- and view a video about its findings -- on the organization's Web site.

The Los Angeles Car Show is normally a time of back slapping, smooth sales pitches and wide smiles. It seems a little different this year, according to attendees who have wandered the exhibit hall filled with shiny chrome.

"October was the worst month for U.S. auto sales in 25 years," said Carlos Ghosn, CEO of Nissan and Renalt. "Nothing is moving. The decline is not confined to the U.S. market; most of the mature auto markets, including Europe, Japan, are also down significantly, with slowdowns in the emerging markets as well."

If the Japanese carmakers are gloomy, who can just imagine how the contingent from Detroit feels. GM canceled its events but still has cars on display. It scratched plans to showcase a new Buick LaCross sedan and a new Cadillac model. Instead, it will lift the veil on those models in Detroit in January.

Chrysler has only a minimal presence at the show as well. Ford, on the other hand, is showing off a new Mustang model, as well as a restyled Fusion hybrid.

With hybrids in demand for much of the year, when gas prices were north of $3 a gallon, you might expect every carmaker to be going green. There were plenty of gasoline-electric hybrids to see, but not that many all-electric cars, the next-generation of green transportation. Honda is displaying the FC Sport, which is powered by a fuel cell, and BMW is displaying the Mini E, a battery-electric model.

Many of the hybrids on display have improved fuel economy and more power.

There's power to spare in the Mazda Kann, winner of the Los Angeles Auto Show's 2008 Design Challenge. The Mazda Kann is an electric race car that has a patented electronic tire system to reach 250 mph with no harmful emissions. It was chosen for how well it integrated a high level of innovation and technology into the design.

The Los Angeles Auto Show opened Friday and runs through November 30.

When Congress passed bankruptcy law reform in 2005, it was supposed to provide greater protection for the poor, while forcing the more well-off to pay their debts. It's done neither, according to a new study co-authored by University of Iowa Law School professor Katherine Porter.

Porter and her co-researchers documented that the incomes of bankruptcy debtors in 2007 were statistically indistinguishable from those who filed bankruptcy before the change in the laws, in part because there were so few high-income debtors to begin with.

The findings are the result of a study by Porter and six co-authors from the Consumer Bankruptcy Project, who collected and compared nationwide data on families who filed bankruptcy in 2007 with similar data collected from families filing before the laws were changed. Their newly released study suggests that bankruptcy reform did not deliver its intended effect.

The new bankruptcy law used an income-based screen called a "means test" to push "abusers" out of bankruptcy altogether or to force them to repay their debts in chapter 13 repayment bankruptcy cases. But the researchers suggest that the complications and costs associated with the means test may have discouraged hundreds of thousands of people from bankruptcy even when they needed help.

At the same time, the researchers found little evidence that people who could afford to pay their bills - a group specifically targeted by the reforms in an effort to combat abuse of the protection - actually filed for bankruptcy.

The researchers also discovered that families filing for bankruptcy were more deeply in debt than their counterparts who filed before the laws changed. In 1981, the typical household in bankruptcy owed debts that equaled about 17 months of their income. By 2001, that figure had risen to more than 30 months of income.

By 2007, the typical bankrupt household faced debt obligations that would require them to use all their income for 39 months to pay their creditors. Much of this growth has been in credit-card debt.

"Over the past 25 years, household debt loads have been rising, but families now wait until they are in much more trouble before they file bankruptcy," Porter said.

Researchers also found that debt collectors may not be providing accurate information and appear to be telling people that bankruptcy may not be available as an option when in fact it is. Nearly a quarter of those who filed said that debt collectors discussed bankruptcy with consumers and warned the debtor that they would not qualify, or that the IRS would audit them if they declared bankruptcy.

The study, "Did Bankruptcy Reform Fail?" will be published in a forthcoming issue of the American Bankruptcy Law Journal. It's the first major paper from Phase IV of the Consumer Bankruptcy Project, a joint effort of legal scholars, sociologists and medical school professors. It reports on the first nationwide random sample of people filing for bankruptcy, collecting data from interviews, surveys, and court records of people who filed bankruptcy in the first part of 2007.

Three decades ago the government banned cigarette ads from the airwaves in a bid to reduce smoking-related illness. Now, some health experts say its time to take similar action against ads for fast food restaurants.

Researchers at the National Bureau of Economic Research say such a ban could reduce the number of obese children in the U.S. by as much as 18 percent. Economist Shin-Yi Chou of Lehigh University in Pennsylvania says the study is the first empirical research to make the connection.

The research team used data from the 1979 Child-Young Adult National Longitudinal Survey of Youth, commissioned by the U.S. Labor Department. They measured the rate of child obesity against the number of hours of fast food restaurant ads viewed in a given week.

"Our results indicate that a ban on these advertisements would reduce the number of overweight children ages 3-11 in a fixed population by 18 percent and would reduce the number of overweight adolescents ages 12-18 by 14 percent," the authors write.

Approximately 30.3 percent of U.S. children, age 6 to 11, are overweight and 15.3 percent are obese. Among adolescents, ages 12 to 19, 30.4 percent are overweight and 15.5 percent are obese, according to the U.S. Centers for Disease Control and Prevention. These numbers are even more dramatic when compared to Mexican American children of whom 39.3 percent are overweight and 23.7 percent are obese, the agency notes.

In speculating on the possible reasons for the explosion in childhood obesity, the CDC says "there has been a surge in the amount of time children are spending watching TV and playing video games instead of playing outside."

The Institute of Medicine reported in 2006 that there was compelling evidence linking food advertising on television and increased childhood obesity.

TV can be a negative influence on children's health, whether the message is in English or Spanish, according to research led by pediatricians from the Johns Hopkins Children's Center.

Latino children, who make up one-fifth of the U.S. child population, also have the highest obesity and overweight rates of all ethnic groups. A report on the study, funded by the Robert Wood Johnson Foundation, was released earlier this year.

"While we cannot blame overweight and obesity solely on TV commercials, there is solid evidence that children exposed to such messages tend to have unhealthy diets and to be overweight," said study lead investigator Darcy Thompson, M.D., M.P.H., a pediatrician at John Hopkins Children's Center.

Past research among English-speaking children has shown that TV ads influence food preferences, particularly among the more impressionable young viewers.

To settle a suit brought by a New Jersey gay man, eHarmony.com says it will launch a Web site that will begin providing same-sex matching services in 2009.

The company also agrees to ensure that same-sex users are matched via the same or equivalent technology as that used for heterosexual match-seekers, agrees to charge same-sex users the same fees, and agrees to offer the same service quality and terms of service as heterosexuals.

"I applaud the decision of eHarmony to settle this case and extend its matching services to those seeking same-sex relationships," said New Jersey Division on Civil Rights Director J. Frank Vespa-Papaleo.

eHarmony, Inc. entered into the settlement agreement after a discrimination complaint was filed by McKinley against the on-line matchmaker in 2005, triggering a Division on Civil Rights Investigation and Finding of Probable Cause in 2007. Under terms of the agreement, the complaint is dismissed, and neither the company nor its founder, Dr. Neil Clark Warren, admits to any liability. Under the settlement agreement, eHarmony, Inc. can create a new or differently-named Web site to provide same-sex matching services, but the new Web site's home page must identify it as an affiliate of, or a site provided by, eHarmony, Inc.

The company does, however, reserve the right to post a disclaimer noting that eHarmony's compatibility-based matching system was developed solely on the basis of research focused on married heterosexual couples.

As part of the settlement, eHarmony, Inc. will provide a free, one-year membership to Eric McKinley, whose sexual-orientation-based discrimination complaint against the company led to the Division on Civil Rights investigation. In addition, the settlement calls for eHarmony, Inc. to pay McKinley $5,000, and to pay the Division on Civil Rights $50,000 to cover investigation-related administrative costs.

Additional terms of the settlement include:

• eHarmony, Inc. will post photos of same-sex couples in the "Diversity" section of its Web site as successful relationships are created using the company's same-sex matching service. In addition, eHarmony, Inc. will include photos of same-sex couples, as well as individual same-sex users, in advertising materials used to promote its same-sex matching services.

• eHarmony, Inc. will revise anti-discrimination statements placed on company Web sites, in company handbooks and other company publications to make plain that it does not discriminate on the basis of "sexual orientation."

• the company has committed to advertising and public relations/ marketing dedicated to its same-sex matching service, and will retain a media consultant experienced in promoting the "fair, accurate and inclusive" representation of gay and lesbian people in the media to determine the most effective way of reaching the gay and lesbian communities.

It's not just gays and lesbians that have had complaints about eHarmony's strict screening process in the past. In fact, dating site Chemistry.com features in its ad campaign singles who had previously been rejected by eHarmony.

More about online dating ...

Jan Brakefield, assistant professor of consumer sciences at the University of Alabama, says one of the most important rules is to make a spending plan and stick to it. She also says how you pay for gifts is important, too.

"Pay cash. Credit card users typically spend twice as much money as others," Brakefield said. "Use the 'envelope method.' Prepare one envelope per person, placing money in each envelope. When the envelope is empty, you are finished buying for that person."

When you shop is also important. For example, don't shop when you're tired, as that may effect your resolve to stay on a budget.

"Holiday spending will put a big dent in most people's budgets because when they budget annually for such gifts, they usually don't reserve enough for the December timeframe," said Caroline Fulmer, who is also an assistant professor of consumer sciences at The University of Alabama. "For most of us, unless we set aside a special Christmas savings account, holiday spending causes us to tighten our belts on other expenses."

Fulmer suggests cutting back on the extras like dining out, entertainment, and extra clothing, then spreading that money among holiday purchases.

"Getting great gifts for your loved ones doesn't have to cost you your next paycheck," said Lisa Lee Freeman, editor-in-chief, ShopSmart, a publication from Consumers Union. "To save this season, follow our advice to uncover deals, avoid lousy merchandise and get great buys on everything from earmuffs to electronics."

Freeman offers these tips for saving money and staying on a holiday budget:

1. Start online.

Try on shoes and clothes for size in the store, and then look for them to go on clearance online. Check eBay first. Even if you skip the auctions and only buy items that have the "buy it now" option, you can save tons off retail.

2. Dodge hidden charges and unwanted merchandise.

Always check return costs and see if items bought online can be returned to a local store, especially for large purchases. If it's a bargain, grab it, but think twice about final-sale items.

3. Don't pay full price.

Before you check out online, Google "promotion code" and the name of the product to find additional savings. When planning a trip to the outlets, find printable coupons online for preferred stores. Request a price adjustment after you have made a purchase if you find a lower price in sale circulars or on sites like PriceProtectr.com that can track prices for you.

4. Shop when you're at your best.

Don't shop when you're exhausted: You'll be less likely to shop around and you won't pay attention to prices. Get dressed up when you go shopping. You will feel less desperate for a makeover and avoid blowing big bucks.

5. It never hurts to ask.

Don't underestimate your bargaining power, even at the doctor's office. Ask sales associates for advance notice of sales. Then shop the night before the sale and ask to have full price items put on hold until the sale starts.

6. Get the biggest bang for your buck.

Ask for freebies. For example, if you buy a TV ask for free delivery. If a salesperson won't budge on a price, see if you can negotiate an upgrade.

Bargain-hunting parents were thrilled when Internet chat boards lit up with news of a big sale on Britax car seats at Target.com -- just $43 instead of the usual $280.

Hannah Abbott of Seattle rushed to order three of the seats, getting one for her still-unborn third child and ordering two more as holiday presents. Even the shipping was reduced. Hannah was thrilled but cautious. Then she received her email confirmation and started to relax.

But jubilation soon turned to disappointment, when Target abruptly canceled the order. No money was taken from her account and no explanation was offered.

"They just kind of sent me on my way and said sorry," Hannah said.

But it doesn't work that way anymore. Consumers don't just meekly go away when they're told to. Hannah complained to Seattle's KING 5 News, which got on the phone to Target.

Target at least found it in its heart to talk to KING 5 but it wouldn't budge on the price. It was all a mistake, said Target. The giant retailer said its Web site had a "pricing feed malfunction" and displayed the wrong price. (See KING 5's story).

Accidents do happen and, although state laws vary, most states allow occasional flubs. But stores or Web sites that make a habit of it could find themselves in trouble eventually.

Not the only incident

The Britax case is far from the first pricing incident involving Target. Its errors and omissions have generated numerous complaints from consumers in recent years.

Last month, a Long Island consumer complained that Target was advertising Hanes sweat shirts for $4.66 -- a price it said was the "lowest price of the season." But the consumer said she had purchased the same shirt at the story a few weeks earlier for $4.50.

"I cannot believe any of their advertisements again. I am a senior citizen and my time and gas consumption were thoroughly wasted by their LIE!" the consumer said.

In September, Casilda of Brooklyn, N.Y., bought a girls jacket from a rack that had a $19.99 price posted.

"When I got to the register the jactet rang up at the original price of $44.99. I went to customer service and the very nice young man was willing to help me but needed a manager to override the difference in the amount," she said.

"We spoke with two managers and eventually had to speak with Jeremy who was rude, impertinent, and told me that he didn't care what the sign said he was not giving me the jacket for the sale price. He further went on to explain that he didn't care if I called the bureau of consumer affairs or anybody else he was not honoring the sign which was posted above the merchandise," she said.

Casilda said the manager eventually told her she could have a 10% discount on the jacket.

In Michigan, Anthony of Grand Rapids bought a Zune car audio product marked with the price $39.99 but at the register, it scanned for $79.99, he said.

"Store refused to sell the product for the price indicated on the sticker indicating they have the right to refuse sales to anyone," he complained.

November 18, 2008    
GE is recalling about 244,000 GE Profile, Monogram and Kenmore wall ovens to inspect and repair defective units which could post a fire and burn risk.

The extreme heat used in the self-clean cycle can escape, if the wall oven door is removed and incorrectly re-attached by the installer or the consumer. This can pose a fire and burn hazard to consumers.

GE said it is aware of 28 incidents of minor property damage in which adjacent kitchen cabinets have been damaged. No injuries have been reported.

This recall involves GE wall ovens sold under the following brand names: GE®, GE Profile™, Monogram® and Kenmore®. The wall ovens were sold in white, black, bisque and stainless steel. The following model and serial numbers can be found inside the oven on the left interior wall. For microwave combination ovens, the serial number can be found on the left interior wall of the microwave.

The ovens, made in the U.S., were sold by home builders and appliance stores nationwide from October 2002 through December 2004 for between $900 and $3,600.

Consumers should immediately inspect the oven to make sure they do not have an incorrectly re-attached wall oven door, which will not open into the flat position. If the wall oven door is incorrectly re-attached, consumers should not use the self-clean cycle and call GE for a free repair. Consumers can continue to use normal baking or broiling function in the oven until the oven is repaired.

For additional information, contact GE toll-free at (888) 569-1588 between 8 a.m. and 8 p.m. Monday through Friday, and between 9 a.m. and 3 p.m. Saturday ET, or visit the firm's Web site at www.GEAppliances.com

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

Lower prices and potential housing market deals alone shouldn't be enough to commit you to buying a home. Get to know your home-buying self first.

More home buyers have a better chance now than at any other time in nearly a half decade to negotiate a home-buying deal that costs less and comes with some concessions thrown in.

In many locations, buyers will find a glut of new homes, more motivated sellers, foreclosures, auctions, short sales and other market conditions that can make it a really good time to buy.

That doesn't mean throw caution to the wind.

The same conditions that lure buyers to market also lure misfits looking to cash in on your unfettered haste and the waste left from a boom market gone bust.

No matter what the market conditions, it's also always a buyers' beware market, now perhaps more than ever.

Here's how to begin to navigate today's housing market, step-by-step, and make a good deal without getting taken.

Begin with making a personal "right-time-to-buy" decision

If you stretch financially beyond your means to go after lower-priced homes, foreclosures or short sales, you could be setting yourself up for failure. Today's housing market is littered with home owners who borrowed more than they could afford.

On the other hand, if you wait for prices to fall further you could miss out on a good deal. No one knows when the market hits bottom until it begins a sustained upward turn and you can look back and actually see bottom.

Buy now because it's the right thing to do for you, because you need a roof over your head, because it's more affordable than renting and because you plan on sticking with the home long enough to make the deal pay off. Buy because homeownership is integral to your budget, your lifestyle and your goals.

Get to know the many facets of home buying

You've got a lot to learn, but obtaining a broad base of knowledge about the home-buying process is a relatively easy task, requiring only your time and attention. A glut of information is available on the Internet, from real estate industry-sponsored seminars and workshops and through a vast library of real estate guide books.

You can also sit down with real estate agents (including exclusive buyers' agents, who never represent sellers), mortgage brokers, loan officers and accredited home ownership counselors. Post-secondary education at colleges and universities is also available.

Get to know your local market

Accept national news for what it is, a broad brush stroke of current events. You want housing news and information that really hits home. Get your housing market information from credible publications and broadcasts covering your market.

Part of your homework should include learning the boundaries of your buyer's market. Your market can be designated by a ZIP code, a small neighborhood, a greater community or some larger region.

Learn your property's true value

Whether it's a new home, resale property, foreclosure or short sale, learn the true value of any property you are considering. Uneducated buyers tend to lowball sellers and ask for too many concessions. That can alienate the seller, especially those less motivated with top-value homes. Likewise, knowledge helps prevent you from spending too much.

In both cases, use a real estate agent schooled in the history of local market trends and statistics. See comparables, track sale prices in your shopping area, use the local newspaper, online listing and for sale sites and other sources, to keep tabs on asking prices. Also visit open houses.

Check your credit

Your credit report is free from AnnualCreditReport.com, the only federally regulated source. You may have to pay a nominal fee for your credit score (a numerical scoring of your creditworthiness) depending upon your state law and other factors. But see both your score and your report. You may need to request corrections or adjust your credit habits to generate the best report and score -- before you start home loan shopping.

Get your cash in the pipeline

Get approved -- in writing -- for a mortgage. Use your newly gained knowledge to shop around -- a lot -- for a home loan. Shop online and off. Shop mortgage brokers, loan officers, credit unions and other lenders. Shop where you bank, shop where you don't. The key is exhaustive comparison shipping to get the most money at the cheapest rate.

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Broderick Perkins parlayed 30 years of old-school journalism into a digital real estate news service, the DeadlineNews Group, offering "News that really hits home!"™. The Silicon Valley bootstrap includes the Web site DeadlineNews.Com and the back shop Deadline Newsroom. Contact him at news@deadlinenews.com.

Here's a pitch we've all seen more times than we'd like to remember: "Your former classmates are trying to contact you! Upgrade now to see their messages!"

Yep, it's the familiar refrain of Classmates.com, trying to get us to sign up for a subscription so we can hook up with all those old classmates we've just been dying to see. Never mind that if there was anyone we really wanted to see, we would probably already be in touch with them, this pick-up line seems to work almost as well as its ancient real-world counterpart: "Come here often?"

Most jaded net denizens give about as much time to this plea as to the fellow on the corner trying to cadge $4.75 for a grande cinnamon latte, but those who do fall ... well, let's say they fall hard.

None harder than Anthony Michaels of San Diego. He had been free-loading along, enjoying his free Classmates.com membership when Classmates.com told him others had been looking -- longingly, one presumes -- at his profile and just couldn't wait to get in touch.

Of course, to actually contact those who've viewed one's profile, one must abandon the free tier and move up to a paid -- or "Gold" -- membership.

Anthony fell for it, and who can blame him? Wouldn't you give anything -- well, a few bucks anyway -- to hook up with the old gang from Biology 101? Think of all those fond memories you could share -- the fetal pigs, those frogs.

So Anthony paid his money and he took his chances. And you know who was waiting for him? Nobody, that's who. There wasn't a single message in his inbox and all the creeps who'd been looking at his profile were strangers and who wants to get to know a bunch of strangers?

Now Anthony is not one to be trifled with, so he did what any red-blooded American male would do. He sued. His class action suit accuses Classmates.com of intentional misrepresentation, negligent misrepresentation, negligence, and fraudulent concealment. He also says that the site is in violation of the California Business and Professions Code.

Classmates.com "knew at all times that the individuals, members, and/or users who were making attempts to contact Plaintiff and the Class were not former classmates when they... made false representations regarding the attempted contacts," his complaint allges. "The Defendants... intended to deceive, and did deceive Plaintiff and the Class by concealing and failing to disclose the fact that the individuals, members, and/or users who were making attempts to contact Plaintiff and the Class were not former classmates."

Automatic renewal

While Anthony's complaint is certainly far from rare, it's not the most common of the more than 600 ConsumerAffairs.com has received. Most consumers writing to us have complained that their initial three-month subscription renews automatically despite their best efforts.

"I had their trial service for $15.00 for three monthhs and at the end of the trial period, they charged my credit card for another $15.00," said Jennie of Columbia, S.C. "I called them and they said that they would remove it. I also contacted my bank and they took a report. I am waiting for a response."

Cindy of Elk Grove Village, Ill., has the same problem: "They continue to charge my credit card even though I have not authorized continued use. I have not used there website in over a year. Unable to make contact & my credit card has started harrassing me and threating collection."

Read more Classmates.com complaints