Current Events in July 2010

July 5, 2010
As the Deepwater Horizon oil spill continues to unfold in the Gulf of Mexico, consumers are urged to beware of fraudulent charitable solicitations relating to the clean-up effort and to assisting businesses and communities affected by the disaster.

In the aftermath of other disasters such as Hurricane Katrina and the earthquake in Haiti, scammers have used e-mails, websites, telephone calls, flyers, mailings and other methods to solicit contributions from the public -- supposedly to assist victims. This time around, scammers may claim to be raising money for the oil spill relief effort, including environmental causes, remediation services and victim assistance.

"Scammers follow the headlines," said New York State Consumer Protection Board (CPB) Chairman and Executive Director Mindy A. Bockstein. "That's why it's important to be cautious about responding to charitable solicitations in the aftermath of a disaster such as the oil spill. Consumers should ask questions and do their homework before opening up their wallets and giving to charities that claim to be helping with the oil spill relief efforts."

While consumers are urged to be careful about bogus charities that spring up while efforts to plug the leak continue, they will also need to remain vigilant about avoiding scams throughout the massive, long-term clean-up and recovery efforts.

Do your homework

Before making a donation, CPB recommends you consider the following:

• Contribute to known and verifiable charities. Research the organization's status, registration filings and complaints by contacting the CPB, the Internal Revenue Service (IRS) and/or the Better Business Bureau.

• Beware of callers who want your money fast or use high-pressured tactics. When solicited by phone, always ask the caller to send you written materials about the charity. No legitimate organization will insist that you donate immediately. Watch out for solicitors who employ dramatic, emotional or heart-tugging stories. Ask for written information about the charity and how your money will be spent or distributed.

• Avoid giving cash. Make checks out to the charity not to an individual. Give your contribution by check or credit card so that you have a record of the donation. If you choose to make a donation via a charity's website, check to ensure that the website is secure and that your computer is equipped with the latest anti-virus protection. Don't send contributions with a "runner," by wire or overnight parcel pick-up service.

• Guard against fake solicitations. Be wary of unsolicited mailings, phone calls and e-mails requesting donations. Unless you have signed up to receive e-mails from a charity of your choice, do not respond to e-mail solicitations. Don't click on any links contained in these emails, as you may be directed to a fake website made to look like a legitimate organization's official site. Other e-mails ask for money to be sent to offshore bank accounts.

• Don't disclose personal or financial information. Never give your Social Security number, credit card or debit card number or other personal identifying information in response to an unsolicited charitable request, especially over the phone.

Something has happened to the Boomer generation and its not a pretty picture. Too many of us are overweight, out of work, or simply feeling powerless in the face of mounting ageism, overly expensive health care, and a number of other financial, career, health, and, for some, even relationship issues we no longer feel we have any control over.

In the 1960s, we were the generation that led a revolution, and now now that many of us are in our 60s, its time for us to lead another one. In the U.S. alone, were 78 million strong which means we have the power to change the way things are. We just havent used that power in a very long time. Well, now its time, time to take back our dignity and use our power to once again be the generation of change.

Here then is my Boomer Manifesto: ten key areas where I believe we have the power to transform things for the better:

• Stay Healthy
• Keep Working
• Maintain Your Relationships
• Tend to Financial Security
• Improve Housing Choices
• Face Up to Legal Issues
• Travel Smart
• Be An Activist
• Build a Legacy
• Deal With Death

Stay Healthy

The reason I put health first is that without health, those extra years we Boomers are being given will be a curse rather than a blessing.

One of the main problems in this country is that good health costs money and requires time and attention. It can take more time to plan, prepare, and eat healthy foods and meals than grabbing carbohydrate and calorie-rich fast foods on the run.

Health insurance, a necessity, can be very expensive if you don't have a full-time job. Your plan will hopefully cover medical checkups and tests to detect those diseases that if caught early enough, have almost a 100% cure rate. But dont let the lack of money or a good health insurance policy stop you from getting the check-ups and medical treatment that you need. Pay out-of-pocket, if necessary.

Include eye checkups in that list of necessary healthcare concerns. Today, if you catch it in time, there are treatments for certain types of macular degeneration that did not exist even a few years ago, enabling your eye doctor to stop in its early stages what could be the cause of debilitating vision loss.

If you do not have healthcare insurance, or if your policy does not include checkups, or a specific procedure, find a way to pay for these health care expenses yourself. Make those health care costs a priority over other expenses that can be reduced or eliminated.

Next, lose the extra weight. You don't see many obese people in nursing homes; they just dont live long enough. We need to get our weight to a manageable and healthy number that we can sustain. In addition to having a healthy weight, get those cholesterol and blood pressure numbers under control too. If all you do is take a 30 minute walk everyday, it will make a difference.

Whatever it takes, as detailed in How to Live Better and Longer, make your health your number one concern as a Boomer, now and in the years going forward. You owe it to yourself, your family, and everyone else who cares about you and depends on you.

As we Boomers reach the age for Medicare coverage to kick in 65 we will all need to take the time to understand what Medicare covers, and does not cover, as well as what you may need to pay to supplement any gaps in Medicare coverage, a topic to be addressed in another column.

With the number of seniors over the age of 65 likely to develop Alzheimers and other dementias in their senior years, Boomers need to lobby to get more resources put into finding cures for these diseases as well as better tools for early detection and treatment. (See Boomers Come Face to Face With Alzheimers).

Next: Keep Working

July 3, 2010
Versions of the 2007-09 Cadillac Escalade lead the pack when it comes to the rate at which people file insurance claims for theft, according to the Highway Loss Data Institute (HLDI), an affiliate of the Insurance Institute for Highway Safety (IIHS).

The luxury SUV is followed by the Ford F-250 crew pickup, Infiniti G37 luxury car, and Dodge Charger with a HEMI engine. Theft rates for these vehicles, which are one-to-threw years old, are three to five times as high as the average for all vehicles.

"Sedate family cars and fuel sippers aren't on the hot list," says Kim Hazelbaker, HLDI senior vice president. "Thieves are after chrome, horsepower, and HEMIs."

Escalade consistency

Overall theft losses take into account not only the rate at which insurance claims are filed but also the size of the payments for claims, and most of the vehicles with the highest overall theft losses are SUVs and large pickups. The Escalade has ranked worst in overall theft losses in six of the past seven HLDI reports. In fact, all four versions of the Escalade head the list of the worst overall losses for theft, with average yearly losses more than seven times the average for all passenger vehicles.

The Escalade EXT 4-door 4-wheel-drive has the highest theft losses of all, with $146 in theft payments per insured vehicle year. This is more than 10 times the $14 average theft payments per year for all passenger vehicles.

SUV payouts

The vehicle group with the highest overall theft losses ($82 in theft payments per year) is very large luxury SUVs. Losses for these vehicles are nearly six times as high as the $14 average for all passenger vehicles. Very large pickups have the second highest overall theft losses, at $57 per insured vehicle year, and 2-door minicars have the lowest at $4 per insured vehicle year.

Almost one of every four Escalade theft claims is for $40,000 or more. These vehicles are equipped with standard antitheft ignition immobilizers that are supposed to prevent them from being started without a proper key. The problem, Hazelbaker says, is that "even though Escalades have the latest immobilizer technology, thieves still can put them on flatbeds and haul them away."

HLDI's are the only reported theft results based on the number of insured vehicles on the road. Information on theft losses published by the National Insurance Crime Bureau doesn't take into account the number of each vehicle insured, so the most popular vehicles on the road tend to top this organization's list of most-stolen vehicles.

This doesn't tell an individual owner how likely a particular car is to have a theft claim. To answer that question, HLDI identifies vehicles with the worst theft losses by counting the number of insurance claims by make and model relative to the number of each make and model insured. This indicates the vehicles that are most likely to be theft targets, taking into account their exposure on the road.

New to the worst list

The Chevrolet Corvette Z06, a high-performance midsize sports car, isn't stolen nearly as often as the other vehicles on the worst list, but claims are expensive when the Z06 does go missing. The average size of an insurance claim payment is $41,229. This compares with $10,118 for a Dodge Charger with a HEMI engine, a large family car that makes the worst list mainly because of how often it's stolen.

Eye on pickups

"In many cases it's tough to pinpoint exactly why a vehicle becomes a theft target," Hazelbaker says. "Investigators tell us big work trucks like the Ford F-250/350, Chevrolet Silverado 1500, and Dodge Ram 2500 are attractive not only because of the vehicles themselves but also because of the tools and cargo they carry."

HLDI results take into account theft of a vehicle and also vehicle content. Overall theft losses for pickup trucks climbed steadily between 1999 and 2006 as the US economy boomed but now are decreasing. Still, as a group these vehicles have losses that are at least twice those of cars and SUVs.

Best theft losses

The Volvo S80, a large luxury car, leads the best list with overall losses equal to 4 percent of the average for all passenger vehicles. Next best are the Saturn VUE 4-wheel-drive midsize SUV and Nissan Murano midsize SUV. The Toyota Prius, a hybrid car, also ranks among the top 10. The 10 best vehicles have overall theft losses less than 15 percent of the average. Average payments for a theft claim are less than one-third the average.

Long-term trends

Since 1998 the frequency of theft claims for cars and SUVs has declined while average insurance payments per claim have increased. Frequencies have dropped the most for SUVs, declining from 4.9 claims per 1,000 insured vehicle years in 1998 to 2.4 in 2008. (An insured vehicle year is one vehicle insured for one year, two for six months each, etc.)

For pickups, the downward trend in claim frequencies that began in 1998 reversed in 2001 and increased through 2006. Meanwhile, average insurance payments per theft claim have risen the most for pickups. SUVs had the highest average payments per claim until 2005, when results for pickups overtook those for SUVs.

"We recognize our veterans and service men and women who have sacrificed greatly to protect the freedom we enjoy," said Six. "Making a donation to a veterans or military charity is an important way we can support our military personnel and their families. It is also important that, when making such a donation to support these brave men and women, consumers avoid falling victim to fake charities and scams."

There are a number of legitimate charitable organizations working to help veterans, active-duty personnel, and their families. Unfortunately, unscrupulous individuals capitalize on consumer patriotism to perpetuate fraud and make a quick profit. The AG's office has says it has received reports of potentially fraudulent activities.

Six urges consumers to verify the authenticity of a charitable organization prior to giving. "It is unfortunate that some use the name and symbols of our military to profit themselves and rob troops and veterans of aid and support," said Six. "By taking a moment to research and validate a charity, Kansans can ensure that their money is supporting worthy causes and not lining a scam artist's pockets."

Points to remember

When giving to charitable causes, consumers should remember the following:

• Recognize that the words "veterans" or "military families" in an organization's name don't necessarily mean that veterans or the families of active-duty personnel will benefit from your donation.

• Ask to be provided information about the charity in writing. A legitimate charity will be willing to provide you with more information about its charitable purpose, programs, and use of funds.

• Do additional research before you donate. Search the charity online through a search engine. Check for complaints filed by other consumers.

• Call the office that regulates charitable organizations to see whether the charity or fundraising organization has to be registered in your state.

• Do not send or give cash donations. For security and tax record purposes, it's best to pay by check made payable to the charity.

• Contact your local Better Business Bureau to see if there are any complaints about the charity or search for the charity online.

That didn't take long.

The iPhone 4, which made its long-awaited debut last week, is now the subject of several lawsuits taking issue with the device's apparent propensity to drop calls.

Two class actions were filed in San Francisco, and one in Maryland. The suits allege that, when the iPhone is held a certain way, it receives almost no signal -- leading to dropped calls and much frustration. Specifically, using one's hand to cover the phone's metal frame in the lower left-hand corner -- where the antenna is exposed -- causes a dramatic drop in bars indicating signal strength.

One of the California suits says that the only way to prevent the signal failure is to buy a certain phone cover -- and fork over more money to Apple in the process.

Consumers are left with three options: hold their phones in an awkward and unnatural manner; return their phones and pay 10 per cent 'restocking fee', or purchase Apple's own 'bumper' cases for their phones, costing $29.95 in addition to the premium they have already paid for the phones themselves, which may somewhat ameliorate the iPhone 4's defects, the complaint says.

Christopher Dydyk, the Massachusetts plaintiff, contends that Apples sale of the iPhone with this unannounced defect, assuming Apples prior knowledge of the defect, constitutes misrepresentation and fraud. In omitting to disclose the defect in the iPhone 4, Apple perpetrated a massive fraud upon hundreds of thousands of unsuspecting customers.

Apple blames reception bars

Apple, for its part, says that the problem is due in large part to the way that the phone displays reception bars. The display is determined by a formula that's totally wrong, according to the company, meaning that the phone might show lots of bars in an area with almost no reception, or vice-versa.

But that explanation fails to account for the fact that the Maryland plaintiffs say they began to experience significantly reduced reception and performance when handling the phones as demonstrated in Apple's advertisements or as a reasonable person would handle a mobile telephone. The trouble persisted regardless of whether the plaintiffs were making phone calls, browsing the Internet, [or] sending text messages.

The company had previously offered the suggestion that consumers buy a bumper case for their phones, but that suggestion was absent from the company's latest statement -- perhaps due to the blowback from consumers who just finished paying for a brand new smartphone.

Jobs dismissed concerns

One of the suits also cites a supposed email exchange between a newly-minted iPhone 4 owner and Apple CEO Steve Jobs, in which Jobs appeared to dismiss the problem as a non-issue.

MacRumors forum user samcraig emailed Steve Jobs about the low signal issue while holding the new iPhone 4 in a specific way, the suit reads. Samcraig emailed Steve Jobs: 'Question -- what's going to be done about the signal dropping issue. Is it software or hardware?' To which, Jobs replied with a typically short response: 'Non issue. Just avoid holding it that way.'

Some reports have questioned whether the exchange actually occurred, suggesting that the supposed Jobs response may have come from an impostor.

Apple has promised to provide a software fix for the problem within the next few weeks, although it's unclear whether the remedy will deal only with the supposed bars formula glitch or will address the larger issue of phones' actual antenna strength.

Juky 2, 2010
The state of New York has busted the founder of a sham car donation charity for looting over $2 million in charitable funds.

Shoba Bakhsh, of Queens-based "Hope for the Disabled Kids, Inc.," pled guilty to lying to donors and misusing funds for herself and her family. As a condition of the plea, the charity will immediately shut down.

Hope for the Disabled Kids took in thousands of cars and had more than $2 million in revenue between the charity's founding in 2001 and 2009. When soliciting donors, Bakhsh promised that over 90 percent of donations would go to help disabled children.

However, no funds were used for any legitimate charitable purposes from 2007 to 2009. No records were produced to prove that funds were used for legitimate purposes prior to 2007 because Bakhsh destroyed documents and filed false paperwork.

"This individual manipulated donors and exploited children with serious medical needs in order to enrich herself and her family," said Attorney General Andrew Cuomo. "As a result of her actions, millions of dollars that should have gone to help disabled children were instead spent on department store bills and real estate. As our investigation continues, my office encourages New Yorkers to be generous and informed donors."

Pocketed donations

On its website, Hope for the Disabled Kids claimed that:

• Funds will "be utilized to benefit disabled children by purchasing medical equipment;"

• Funds will "help pay for medical expenses for families who are unable to afford [them];"

• Funds will "purchase books, toys, games and food during the holidays to distribute to children in hospitals."

Instead, Bakhsh spent the donated on herself and her family, including:

• Close to $500,000 in connection with the purchase of real estate in Florida and payments of real estate taxes on properties owned by Bakhsh and her husband;

• Payments on two different Macy's credit card accounts;

• School tuition for Bakhsh's children;

• Additionally, Bakhsh's personal checking account received cash deposits of nearly $250,000 between 2007 and 2009. During this period, she supposedly had no employment other than her job at Hope for the Disabled Kids, which reported paying her less than $50,000 per year.

Advertising blitz

Hope for the Disabled Kids solicited the donation of vehicles through print advertising outlets and its website, which has been shut down. Bakhsh and her group intentionally made false representations about the charity in order to trick people into donating their vehicles, including saying that more than 90 percent of the proceeds from the sales of donated vehicles would be spent on children in need. Bakhsh also posted forged testimonials on the charity's website that made it seem that it had made legitimate contributions to hospitals and health care facilities.

Bakhsh, of South Ozone Park, Queens, pled guilty in New York County Supreme Court to one count of Scheme to Defraud in the First Degree (class E felony) and two counts of Offering a False Instrument for Filing in the First Degree (class E felony).

As a condition of the plea, Hope for the Disabled Kids, Inc. will immediately shut down. Bakhsh is also forbidden from serving on the board or as an officer of a not-for-profit and from being employed at any entity engaged in the car donation industry. Bakhsh is expected to be sentenced on September 23, 2010.

How they operate

Charities involved in the car donation industry solicit contributions in the form of used vehicles, which they then sell to raise funds for humanitarian causes. Cuomo's industry-wide investigation into car donation charities has shown that some charities mislead donors about how much money is used for charitable purposes as well as where the money goes. In some cases, the car donation charity is a complete sham, with little or no money going to the causes the charity purports to support.

As part of the investigation, the AG recently sent subpoenas to 16 charities, fundraisers, and individuals seeking materials relating to the funds that charities and for-profit fundraisers have collected through car donation programs. Cuomo also sued to shut down a sham car donation charity, Feed the Hungry, Inc., for misusing funds meant for the homeless.

July 2, 2010
The State of Ohio is accusing an Illinois-based company of defrauding its citizens out of thousands of dollars. Ohio Attorney General Richard Cordray has filed suit, seeking restitution and civil penalties.

Cordray said the company -- American Escrow -- and its owners, Derek C. Lurie and Steven Lurie, claimed that they would provide "escrow" services for their customers to pay property taxes or homeowner insurance but collected the money from consumers and never made the payments on their behalf.

"Ohioans who contracted with this company lost thousands of dollars that they had set aside to pay taxes and insurance premiums," said Cordray. "In the end, not only were their taxes and premiums not paid, but they had to come up with additional money out-of-pocket."

According to the lawsuit, American Escrow entered into contracts with consumers to provide escrow services and to pay for property taxes and/or homeowner's insurance each year. Normally that service is provided by your mortgage lender. However, if you don't have a mortgage on your home, you must pay the taxes in one lump sum.

Homeowners in this circumstance would have been much better off making payments into a savings account each month, then paying their annual taxes. That's essentially what American Escrow was supposed to do.

They divided the approximate annual amount by 12 payments, which they then collected each month from consumers. Consumers were charged a one-time set up fee of up to $250 and a monthly service charge up to $6.50. The lawsuit alleges that the company stopped making payments for some customers in the fall of 2008 but continued to collect money through March 2009.

The attorney general's office has received 89 complaints to date against American Escrow from Ohioans who said they lost money.

Cordray charged American Escrow and its principals with multiple violations of Ohio's Consumer Sales Practices Act, including failure to deliver and unfair and deceptive consumer sales practices. He is also seeking permanent injunctive relief, restitution and civil penalties.

If you've ever sat around a classroom waiting for the professor to show up, you know how some of the Video Professor's customers are feeling about now. But chances are you hadn't coughed up $400 or more for a single session with your learned instructor.

That's the fix many Video Professor customers are in right now. Take Pete of Reading, Pa. He ordered one of the Professor's CD-based lessons on a "free trial" offer, paid a delivery fee of $6.95, looked it over and decided it wasn't for him. So Pete sent the CD back but learned a valuable lesson when the Professor slapped a $399.95 charge on his credit card.

Now Pete and other consumers are finding the Professor's vanishing act may be more profound that it at first appeared.

"It seems as though Video Professor is now out of business," Joanne, of Vineland, N.J., told ConsumerAffairs.com.

Joanne came to that conclusion, she said, because she tried to return some merchandise to the company in late April but was told by UPS that it was unable to deliver it.

The Professor's Web site has been changing frequently over the last few weeks, offering various explanations. The latest version says that the Professor is "transitioning to a new business model," replacing CDs with online lessons -- and, not surprisingly, offering "free" online lessons for a limited time.

But as for those who already paid their money and took their chances on the CD, the Web site's Contact Information page has this bleak message:

Video Professor is currently transitioning to an automated online customer response system. If you are contacting Video Professor with a refund request, please be aware that we are not processing any credit card transactions at this time and therefore are unable to process refunds. Please contact your banking institution directly for more information on how to receive a refund. Please be assured that you will receive your refund.

At this time our Customer Service Department is no longer available. Again, if you are requesting a refund you must contact your banking institution.

In the meantime, if you have a product for which you are seeking a refund, please keep the product as our gift. Also, check out all of our online lessons (all 65 titles) available at www.videoprofessor.com. For the time being, they are completely free - no credit card is required to access the lessons and there is no obligation.

Hmmmm

So what does this sound like to you? Businesses whose customers complain of unauthorized charges at an unusually high rate can soon find themselves without a credit card payment processor, which one consumer advocate said may be what precipitated the Video's Professor's truancy.

For its part, the Better Business Bureau has suspended Video Professor. A statement on the organization's Web site said the company "was suspended on 6/7/10 due to not meeting our BBB Standards for Trust."

"The company is going through a reorganization that involves temporary furloughs," the BBB added.

Other than its cryptic Web statements, the company has been tight-lipped. Bettye Harrison, who has been the company's president for years, lists her occupation as "Former President & COO at Video Professor" on her Linked-In page.

John W. Scherer, the founder, CEO and ebullient star of late-night infomercials, is also strangely silent, a change from the days back in 2007 when he vigorously pursued consumers who dared post critical reviews of his products on Internet sites.

Calls to the company's main number, 800 525-7763, get a "fast busy" response, which sometimes indicates a number is out of service.

'Reduced operations'

The Denver Post reported earlier this month that the company had slashed its operations and was giving away its products. It said the parking lot was nearly empty and the building lobby was closed and dark.

When a reporter called the offices, she heard a recording that said Video Professor "is currently transitioning to a new business plan."

The old business plan drew plenty of complaints. Video Professor commercials promised a free CD, with company CEO Scherer explaining, "We're so sure you'll like this product you'll turn to us for all your computer learning needs."

But consumers who got the free CD's often found they were enrolled in a negative option subscription plan unless they cancelled it within a very short time. The additional CDs were anything but free.

"I ordered Video Professor with the impression that I was only to try it for the shipping and handling charges," Caroline, of Sacramento, Calif., told ConsumerAffairs.com "I changed my mind about it. I called to cancel but it was too late. I sent it back at the post office. In a few days a large amount of $189.95 appeared on my credit card. Thirty days later new charge appeared on my card for another video professor that I did not order of $389.95."

Joanne from New Jersey advises those who paid by credit card to report it as an unauthorized charge and demand a charge-back.

"Do not take no for an answer," she told ConsumerAffairs.com. "I just got off the phone with my credit card company and had no trouble whatsoever."

As recently as four years ago, the company was one of Colorado's success stories, with 300 employees and more than $100 million in annual revenue.

If you drive any of eight Toyota and Lexus models, you could experience engine stalling while driving. And while Toyota has indicated to U.S. auto safety authorities it is considering a recall, it's by no means certain that it will initiate one.

In a statement to Japanese media, a Toyota official is quoted as saying the car company is considering "some kind of measure" to deal with the issue. The "issue" is possible engine stalling while the vehicle is underway. Some of these vehicles could experience problems with the valve spring in their engines that may cause idling trouble that could lead to engine failure, according to Toyota.

The word of a possible engine defect does not come as news to S., of Golden, Colo., who reported to ConsumerAffairs.com last month about his engine problems.

"My new 2010 Toyota Tundra with 2,500 miles had a catastrophic engine failure while driving on the freeway. I took the truck to Stevinson West Toyota - they took the engine apart and found multiple holes in the engine block," he said. "They are still not telling me the source of this engine failure. Toyota is telling me this is a one time occurrence, but I have been finding multiple problems with other Tundra's (2007-2010).

In fact, S. cites a USA Today article from 2007 that reported Toyota was fixing engine failures in new Tundra trucks.

From Toyota's description, the current problem is not as serious as the one S. describes. Reportedly, no accidents have been reported because of the problem. The issue involves 270,000 4.6-liter and 3.6-liter engines, a Toyota spokeswoman in Tokyo said. The exact models were not named.

If it seems odd that a carmaker announces it "might" recall some cars before actually doing it, keep in mind Toyota paid a record fine to the U.S. Government for being slow to acknowledge its sudden acceleration problems last September, which opened the floodgates of trouble for the company.

Toyota recalled nearly three million vehicles in early 2010 to deal with either sudden acceleration or braking problems. In April the carmaker temporarily suspended sales of the Lexus GX 460 after Consumer Reports called it unsafe.

A New York company today recalled some of its raw food for cats and kittens because of possible salmonella contamination.

Felines Pride of Elma, New York, said its pulling its Natural Chicken Formula in 2.5 pound plastic containers off the market. The frozen raw food with ground bone for cats and kittens included in this action were made on June 10, 2010.

The company sold the products in uncoded plastic containers to private consumers nationwide. Felines Pride makes its food when consumers place their orders and its products have a shelf life of about one week. Only those orders placed and shipped from June 10 through June 17, 2010, are included in this recall.

Felines Pride and the Food and Drug Administration (FDA) are investigating to find the source of this problem.

The company and the FDA said they have not received any reports of illnesses linked to the recalled food. But the FDA warned that people handling raw pet food can become infected with salmonella. The risks increase if pet owners have not thoroughly washed their hands after handling the food or touching any surfaces exposed to the products.

Symptoms of salmonella infections in people include nausea, vomiting, abdominal cramps, minimal diarrhea, fever, and headache. Children, the elderly, and those with compromised immune systems are more susceptible to these types of infections and may experience more severe symptoms, according to the FDA.

Anyone who experiences these symptoms after handling the recalled pet food should immediately contact their health care provider, the FDA said.

Pets with salmonella infections may be lethargic and have diarrhea or bloody diarrhea, fever, and vomiting, the FDA said. Some pets will only have decreased appetites, fever and abdominal pains.

The FDA warned that infected but otherwise healthy pets can still be carriers of salmonella and infect other animals or humans.

Pet owners with cats that have eaten this recalled food -- and display these symptoms -- should contact their veterinarians.

The FDA said pet owners should not feed the recalled products to their cats and advised consumers to immediately discard the food.

For more information about this action, pet owners can contact the company at (716) 580-3096.

By Truman Lewis
ConsumerAffairs.com

July 1, 2010
We've been told over and over that too much time on the tanning bed is bad for our skin. As of today, it's bad for our wallet as well, as the federal government's new 10 percent excise tax on indoor tanning services becomes effective.

It's the first of 21 excise taxes created by Congress to help pay for the healthcare overhaul that was passed a few months ago. Congress in its wisdom calculated that it would be able to sweat about $2.7 billion out of tanning taxpayers over the next decade.

Now since it's Congress we're talking about, nothing is quite as simple as it sounds. First of all, the tax -- like all taxes -- doesn't apply to everybody. It only applies to tanning salons and other establishments that charge a fee for tanning.

So who doesn't it apply to? Why, health clubs, of course. The health club industry lobbyists lost no time lathering up their friends in Congress and exempting health clubs -- "qualified physical fitness facilities," in the language of the bill -- that include tanning services as part of their monthly membership fee. Nor does it apply to "phototherapy services" performed by a licensed medical professional.

The tanning tax is making many small business owners turn pale. There's been next to no information distributed to local businesses and many complain that the software they use to run their cash registers and credit-card operations has not yet been modified to collect and account for the new tax.

Grover Norquist isn't pale, though. The president of Americans for Tax Reform gets red in the face when he charges that the new tax violates President Obama's pledge not to raise taxes on families making less than $250,000.

"Small business owners across the country have already been feeling the financial and paperwork burdens caused by the tax, with some shutting their doors and others laying off employees," Norquist huffed. Industry estimates from the Indoor Tanning Association show that well over half of tanning salon owners are women, he said.

In California alone, there are 1,912 tanning facilities estimated to employ 6,840 people, serving the 1.1 million Californians who don't get enough sunshine buzzing around the Southland, Inland Empire and Bay Area.

Like all excise taxes, there's no requirement that the tax be passed on to the customer but businesses are hardly likely to voluntarily eat the added cost themselves.

So what's the solution for long-suffering palefaces determined to look tanned and fit? We can't think of any, other than exercising outside or investing in some spray-on or rub-on tanning lotion.

July 1, 2010
Texas Attorney General Greg Abbott is advising residents of South Texas affected by Hurricane Alex that the state disaster declaration activates state laws that prohibit price gouging.

The declaration triggers the provision of the Deceptive Trade Practices Act, which makes it unlawful to sell or offer to sell fuel, food, medicine, or another necessity at an exorbitant or excessive price.

"During declared disasters, state law prohibits vendors from dramatically increasing the price of necessities," Abbott said. "South Texans should take steps to protect themselves and report any alleged price-gouging to the Office of the Attorney General. After the storm subsides, residents should carefully screen offers for repairs or construction services and be sure to obtain accurate information before contracting for repair services."

The disaster declaration affects the following counties: Aransas, Bee, Brooks, Cameron, Duval, Hidalgo, Jim Hogg, Jim Wells, Kenedy, Kleberg, Live Oak, McMullen, Nueces, Refugio, San Patricio, Starr, Webb, Willacy, and Zapata.

Avoiding ripoffs

When Texans turn to repairmen to help in the clean-up and rebuilding process, they should consider these tips:

• Deal only with licensed or bonded contractors or builders;

• Contact an insurance adjuster to get an estimate of the damage and repair cost;

• Be wary of contractors who solicit services door-to-door, especially those that are unfamiliar or from out of town;

• Get the salesperson's license plate number;

• Don't rush into signing a contract, and never pay up-front for promised work;

• Secure the terms of any warranty work in writing; and

• Ask for references, or rely on recommendations from friends or relatives who have had experience with honest contractors.

Although Texas' price gouging law prohibits vendors from illegally raising prices to reap exorbitant profits during a disaster, it does allow retailers to pass along wholesale price increases to customers. Thus, in some cases, increased prices may not necessarily signal illegal price gouging.

Texans who believe they have been deceived by fraudulent business practices should call the Office of the Attorney General's toll-free complaint line at (800) 252-8011 or file a complaintonline.