Current Events in February 2011

Some people can’t fathom eating a fungus and others can’t get enough of them -- whether white, button, portobello, crimini, oyster or shiitake.

Whatever your stance on mushrooms, the people at the Mushroom Council hope you will include more (or at least, some) of the humble little vegetables in their diets.

Nutrient source

Mushrooms have long been celebrated as a source of powerful nutrients, particularly those of public health interest such as vitamin D and potassium.

Plus, they can also help people meet the new 2010 Dietary Guidelines for Americans introduced Monday by the Departments of Health and Human Services (HHS) and Agriculture (USDA) which place continued emphasis on the importance of lowering sodium intake, eating plenty of vegetables, and choosing foods, like mushrooms, that provide nutrients of concern, like potassium and vitamin D.

Fresh mushrooms can be added to everyday dishes to provide an extra serving of vegetables and deliver additional important nutrients, like selenium, ergothionene and B vitamins.

Mushrooms’ hearty and meaty texture makes for a satiating main dish. They’re also an ideal accompaniment to salads, pastas, stir-fry and omelets; and a flavor-enhancing topper for meats, poultry and fish.

They pick up and complement subtle flavors, adding taste without weighing down the dish with calories, fat, cholesterol or sodium.

Recommendations

The 2010 Dietary Guidelines recommend that you reduce daily sodium intake to less than 2,300 mg; and that specific populations, including people who are 51 and older and those of any age who are black or have hypertension, diabetes or chronic kidney disease, reduce daily intake to 1,500 mg.

While consumers and the foodservice industry face the collective challenge to reduce sodium, there are certain foods, like mushrooms, that can help satiate the “craveability factor” they’re accustomed to with salty foods, but are ultimately low in sodium.

Mushrooms are rich in umami (the 5th taste known for its savory, brothy, rich or meaty taste sensation), which counterbalances saltiness and allows for less salt to be used in a dish without compromising taste. Umami-rich foods, like mushrooms, act as a flavor multiplier -- adding depth of flavor.

“Tasting Success with Cutting Salt,” a collaborative report from the department of nutrition at Harvard School of Public Health and the Culinary Institute of America, recognizes mushrooms as a tool to help decrease sodium.

Still not convinced?  Consider this: mushrooms are economical.  They tend to be one of the least expensive vegetables in the produce section and can last a few days in the fridge.

If you have to travel by air to almost anywhere in the U.S. this week, you stand a good chance of running into a nasty scheduling mess, because of a massive winter storm hitting the nation's mid-section.

By the time it's over, the storm system is expected to stretch more than 2,000 miles along the central and upper Midwest, dumping up to two feet of snow. Areas south of the Midwest may get less snow, but they'll make up for it in ice and sleet.

It's a good time to curl up in front of a fire with a good book, not take a cab to the airport and pray you flight hasn't been cancelled. Already, thousands of flights have been scratched. American Airlines said it had cancelled more than 1,500 flights as of today, but suggested more might be cancelled once the storm does its damage.

Avoid Chicago and New York

On its website, United Airlines posted airport closing information for Chicago and New York, urging passengers to avoid them:

• Chicago O'Hare airport (ORD) will have limited operations through 6 p.m. CST on Tuesday, February 1, and will be closed from 6 p.m. CST on Tuesday, February 1, through 10 a.m. CST on Thursday, February 3, 2011.

• New York John F. Kennedy (JFK), New York LaGuardia (LGA) and Newark (EWR) airports will be closed from 12 p.m. EST on Tuesday, February 1, through 12 p.m. EST on Wednesday, February 2, 2011.

United said it has issued travel waivers for cities in the path of the storm. Travel waivers allow customers to make changes to their ticketed itineraries in advance, without incurring the fees that would otherwise apply, in order to avoid the possibility of encountering long delays at the airport.

"Southwest Airlines is monitoring the winter weather that's forecasted to bring a variety of precipitation across the country this week," the airline said in a post on its website.  "We are keeping a close eye on the conditions as the storm moves through the cities that Southwest serves."

Fees waived

The Southwest website lists the markets impacted by the weather, with instructions for rebooking. Southwest, along with the nation's three other largest carriers, United, American and Delta, had cancelled a total of 4,000 flights by midday today.

JetBlue said it would waive change fees and fare differences for customers traveling today through Thursday, February 3, 2011, to and from the following cities:

• Boston, MA (BOS)

• Chicago, IL (ORD)

• Hartford, CT (BDL)

• New York Metro:

• Pittsburgh, PA (PIT)

• Portland, ME (PWM)

• Washington DC/Baltimore, MD

Customers may rebook their flights for travel through Sunday February 6, 2011, the airline said.

In Chicago, the National Weather Service forecast calls for blizzard conditions through Tuesday night, with a snow accumulation of up to 20 inches possible. In Dallas, where the Super Bowl will be played Sunday, a hard freeze warning is in effect, with expected wind chill temperatures tonight as cold as 11 below zero.

In New York, the forecast calls for sleet and freezing drizzle tonight, with little or no snow accumulation expected.

Two out of three U.S. adults with high cholesterol and half of U.S. adults with high blood pressure are not being treated effectively, according to the latest Vital Signs report from the Centers for Disease Control and Prevention.

Although treatment of high blood pressure and high cholesterol is very effective and relatively low-cost, most people with these conditions remain at elevated risk for heart attacks, strokes, and other problems. People who lack health insurance have the lowest rates of control. Among those whose blood pressure or cholesterol is not under control, more than 80 percent have private or public health insurance – showing that health care coverage is necessary but, for most people, not enough to control these leading killers.

High blood pressure and cholesterol are two major risk factors for heart attacks, strokes, and related vascular diseases, which kill more than 800,000 Americans each year – more than any other condition. Of these, 150,000 are younger than age 65.

"Although we're making some progress, the United States is failing to prevent the leading cause of death—cardiovascular disease—despite the existence of low cost, highly effective treatments," said Thomas R. Frieden, M.D., M.P.H., CDC director. "We need to do a better job improving care and supporting patients to prevent avoidable illness, disability, and death."

Cardiovascular disease costs the nation an estimated $300 billion each year in direct medical costs and those costs are increasing rapidly. Treatment for this disease accounts for $1 in every $6 US health dollars spent. The report examined data from the National Health and Nutrition Examination Survey (NHANES), an ongoing study that explores the health and nutritional status of about 5,000 participants every year. Among the findings:

Blood pressure

• 1 in 3 Adults has high blood pressure

• 1 in 3 Adults with high blood pressure does not get treatment

• 1 in 2 Adults with high blood pressure does not have it under control

High cholesterol

• 1 in 3 Adults has high cholesterol

• 1 in 2 Adults with high cholesterol does not get treatment

• 2 in 3 Adults with high cholesterol do not have it under control

The Vital Signs report also noted that control rates for high blood pressure and high cholesterol are especially low among people in certain socioeconomic and ethnic groups. Those with the lowest rates of control had no health insurance, no usual source of medical care, had received care less than twice in the last year, or had income below the poverty level. Rates of control also were low among young adults and Mexican Americans.

To improve blood pressure and cholesterol control levels among U.S. adults in every age group, a comprehensive approach that involves policy and systems changes to improve health care access, quality of preventive care, and patient adherence to treatment is needed, according to the authors of the report.

The Affordable Care Act provides coverage for blood pressure and cholesterol screenings with no cost sharing. Additional health care system improvements including electronic health records with registry and reminder functions can improve follow up treatment and management. Allied health professionals (nurses, dietitians, health educators, and pharmacists) can also help increase patient adherence to medications.

In CDC is collaborating with other federal agencies to address cardiovascular disease by improving coordination of care, increasing attention to population health, supporting Healthy People 2020 cardiovascular health goals and objectives. In addition, the agency is complementing the Let's Move initiative and other public health efforts that help Americans make healthy lifestyle choices, such as staying active, eating well and maintaining a healthy weight.

It's important for individuals to understand healthy markers when it comes to cholesterol and blood pressure. LDL cholesterol (or bad cholesterol) should be less than 160 for people without heart disease or diabetes; less than 130 for people without heart disease or diabetes but with two or more other risk factors for heart disease; and below 100 for people with heart disease or diabetes. Blood pressure should be less than 120 over 80 and requires management if it is higher than 140 over 90.

Also, patient adoption of healthy behaviors is critical. Individuals can take steps to lower cholesterol and blood pressure and improve their heart health by consuming a diet that is low in sodium; low in total fat, saturated fat and cholesterol; rich in fruits and vegetables; and balanced with a healthy level of exercise. Making a healthy diet accessible and affordable for all Americans is an important part of the solution. Food producers and processors, restaurants, and fast food businesses can help by reducing salt in our foods, according to the report.

For more information on heart disease, visit www.cdc.gov/vitalsigns or www.cdc.gov/dhdsp. To learn more about how heart disease affects your community, visit www.cdc.gov/dhdsp/ncvdss.

Been to the supermarket lately? If so, you probably know that your grocery budget doesn't buy what it did a few months ago. Other consumer staples also seem to cost more.

That's because rising commodity prices are driving up the costs of basic household goods such as coffee, sugar, and clothing.

"This slow creep in prices, while sometimes imperceptible to you in the grocery aisle, can have a huge impact on your monthly budget over time," said Virginia Sullivan, VP of Consumer Education at Bills.com.

Commodities prices

The problem is largely being driven by the rising cost of commodities such as corn and cotton, which have seen a steady rise in price over the last few years, mainly for two reasons. Recent bad weather has reduced the crop volume, driving up the price. Demand is also increasing, adding more upward pressure.

The United Nations' Food and Agricultural Organization's monthly Food Price Index pegs the cost of a basket of commodities at its highest level since 1990. These higher costs are now being passed on to consumers as the recession recedes, leaving many with bigger bills at the grocery or clothing store registers.

By some estimates, food costs could rise as much as four percent in 2011. While that doesn't seem like a lot, it is more than twice the increase recorded last year. This translates into real money that will be spent in the grocery aisle and at the neighborhood restaurant.

Loss of income

"Families still dealing with unemployment or having trouble balancing their budget already simply cannot afford to see their bills rise fifty, one hundred or more dollars per month," Sullivan said.

When prices rise, it may be necessary to reprioritize your budget. If you can't increase income, something has to give. When allocating your financial resources, financial experts offer this as a prudent breakdown:

• Home mortgage and expenses: 35 percent

• Other (groceries, entertainment, clothing): 25 percent

• Transportation: 15 percent

• Debt (if relevant): 15 percent

• Savings: 10 percent

 You can identify how much money you should spend in each category by multiplying each percentage times your income. Each family will have small variances within each category, but this is a good rule of thumb.

When rebalancing your budget, Bills.com recommends first validating your income and then prioritizing your expenses. This will help in making trade-offs between line items.

For example, if you need to add more money to your grocery or eating-out budget to cover higher prices, then you can easily identify lower priority items to remove. It may also be possible to keep your grocery bill consistent by purchasing off-brand items or re-prioritizing necessities such as milk or sugar over luxury items.

"Whatever your approach or budget, the important act for families is to acknowledge this trend and make the necessary changes now before you find yourself facing a huge budget deficit or even debt," said Sullivan.

A new designer drug is raising concern around the country. A synthetic amphetamine, commonly called "bath salts," is a dangerous stimulant that has effects skin to cocaine or meth. At least four deaths have been blamed on the substance as local, state and federal agencies move to ban or control it.

Sen. Charles Schumer (D-N.Y.) is calling for a federal ban on the drug. “The so-called ‘bath salts’ are nothing more than deadly narcotics and they are being sold cheaply to all comers no questions asked, at store counters around the country…we want to nip this in the bud before it becomes an epidemic,” Schumer said.

Schumer said he will introduce a bill to outlaw the two synthetic drugs -- mephedrone and methylenedioxypyrovalerone, or MDPV. The drugs come in powder and tablet form and are ingested by snorting, injection, smoking and, less often, by use of an atomizer.

The Drug Enforcement Administration says it is currently investigating the rogue bath salts, and says the substance can precipitate “an intense high, euphoria, extreme energy, hallucinations, insomnia and easily provoked anger” when snorted, smoked, injected or used with a vaporizer.

"These products are readily available at convenience stores, discount tobacco outlets, gas stations, pawnshops, tattoo parlors, truck stops and other locations," said an alert issued by the DEA.

The European Unioon banned mephedrone in Decemb er, saying it may have been involved in 39 deaths.

Banned in Florida

Florida seems to have taken the lead in combating the substance.  Florida Attorney General Pam Bondi filed an emergency order last week that will add substances containing MDVP to the state's schedule of controlled substances and Escambia County Sheriff's Office narcotics detectives raided several convenience stores and smoke shops, seizing what they said was $13,000 worth of the drugs.

"Due to the violent nature of the side effects involved in taking these drugs, the emergency rule will provide law enforcement with the tools necessary to take this dangerous substance off the shelves and protect the abusers from themselves as well as others,” said Bondi. “These are dangerous drugs that should not be confused with any type of common bath product.”

North Dakota and Louisiana have also banned the bath salts drugs.

Common street names for this drug include: Vanilla Sky, Ivory Wave, Ocean Burst and Bolivian Bath. The substance is usually snorted although it can be smoked or swallowed. Reported side effects of MDPV include: increased heart rate, nosebleeds, hallucinations, severe paranoia, seizures, and kidney failure.

Schumer: Action needed 

In pushing for legislation to ban the substance, Schumer noted that pharmacological research is a long process and he said the country "cannot afford to wait while convenience stores, online merchants, and smoke shops continue to sell this synthetic drug to anyone in the country, including teens and children."

While many of the reports of violent behavior and death resulting from the drugs have come from the South and the Midwest, Schumer said he is hoping to head off the proliferation of the drug in New York State. In a letter to the New York State Commissioner of Health Dr. Nirav Shah, Schumer urged the commissioner to exercise all powers of his office to put in place a ban on the chemicals and, if necessary, work with the New York State Legislature to pass legislation to do so. In additional to 3 states that have already banned the chemicals, several others are actively considering the move.

“This is no run-of-the-mill household product; it is a deceptively disguised drug that can easily and cheaply be accessed by our children and teens,” continued Schumer. “This is a product, being hocked at local convenience stores and smoke shops for one simple purpose: to offer a cheap and quick high. The consequences of delaying action are deadly. We must act now.”

Chrysler is cautioning its newly-minted Fiat dealers not to act like a bunch of, well, car dealers.

The Fiat 500, about the size of a Mini Cooper, is leading Fiat's return to the U.S. and Laura Soave, brand manager for North America, wants dealers to make young customers comfortable in their showrooms.

Among other things that includes low-pressure, fixed-priced selling, the approach pioneered most notably by the now-defunct Saturn brand, whose dealers resolutely refused to engage in the dickering and haggling common to most dealers.

Fiat is aiming its sporty little cars at younger customers (older ones probably wouldn't be able to get in and out of it) and Soave says younger Americans don't like haggling. In fact, she says, they hate it.

"The pricing is the pricing," Soave told Bloomberg. She also warned dealers not to advertise prices lower than the manufacturer's suggested retail price. Chrysler has strictly limited the number of Fiat dealers to prevent them from staging price wars among themselves.

Chrysler is bringing dealer representatives together for training next month. It wants to be sure salespeople understand the cars and can function effectively as the customer's contact point for service and any problems they may encounter.

Service, or the lack thereof, was high on the list of Fiat's problems during its previous tenure in North America. Although Fiat had many fanatical followers, the little cars were not as reliable as competing European imports, most notably Volkswagen, and the dealer network left something to be desired.

One & only

Though perhaps not familiar to most Americans, the Fiat 500 was to Italians what the VW Beetle was to the Germans after World War II. The country's first postwar mass-market car, the spirited little 500 helped Italy recover from the devastation and grief the war had left behind.

Today's version of the 500 is sold in more than 80 countries. It was named 2008 European Car of the Year and 2009 World Car Design of the Year.

It's been adapted for the American market with devices that are still seen as puzzling oddities to Europeans – most notably automatic transmissions and cup holders. It also gets a bigger engine, with about 100 horsepower, and a reworked suspension thought to be more suitable for tender, and perhaps slightly oversized, American derriers.

Environmentalists are expressing mild outrage over what they see as disappointing gas mileage for the little cars. With a five-speed manual transmission, the 500 is rated at 30/38 mpg, while a six-speed automatic slugs it down to 27/34.

The expected mileage is quite similar to BMW's Mini Cooper, however. With a manual, the base Mini is rated at 29/37, with an automatic at 28/31. Premium fuel is required.

However, any Mini Cooper owner worth his or her salt will tell you the little cars are so much fun to drive that the last thing they worry about is their mileage. The exhaust sound with a little extra juice applied to the accelerator is so sweet, it's worth the few extra dollars.  Likely the same will be true of the Fiat 500.

(Shameless disclosure: The writer owns not one but two Minis and has owned more Fiats and Alfa Romeos than he can count, but who's biased?)

Shengyang Zhou, aka “Tom”, age 31, of Kunming, Yunnan, China, has entered a guilty plea to charges of trafficking in counterfeit versions of the pharmaceutical weight loss drug known as Alli. 

Zhou entered the plea before U.S. District Judge Philip B. Brimmer.  He is scheduled to be sentenced on May 6, 2011.  A co-defendant, Qingming Hu, age 61 of Plano, Texas, pled guilty to distributing Sibutramine, a Schedule IV non-narcotic controlled substance.  Hu is scheduled to be sentenced on April 28, 2011.

According to court documents, over the course of December 2008 through March of 2009, the U.S. Food and Drug Administration (FDA) issued a series of alerts on its website concerning tainted weight loss pills and counterfeit drugs.  Initial alerts focused on “Superslim,” “2 Day Diet,” and Meitzitang, among other purported weight loss products believed to having been imported from China and being marketed as dietary supplements or nutritional products. 

The FDA warned in these initial alerts that the items posed a very serious health risk to consumers, because, based on analysis, they were found to be drugs that contained undeclared active pharmaceutical ingredients, including Sibutramine (a non-narcotic controlled substance). 

The ingredient Sibutramine can cause high blood pressure, seizures, tachycardia, palpitations, heart attack or stroke.  In later alerts, FDA  warned the public about counterfeit versions of the brand name drug Alli, a popular over-the-counter weight loss drug manufactured by GlaxoSmithKlein. 

The alerts indicated that these counterfeit drugs were also being imported into the United States from China and did not contain the proper active pharmaceutical ingredient for the authentic product but instead contained dangerous levels of Sibutramine.

Sold online 

The counterfeit versions of Alli were being sold in the United States, among other ways, through internet websites, including online auction websites such as eBay.

During the course of the investigation, law enforcement agents identified Zhou as the trafficker and importer into the United States of these counterfeit and unapproved purported weight loss related drugs.  Zhou also identified himself as the manufacturer of the counterfeit Alli.

Zhou’s website,www.2daydietshopping.comindicated that his business operated a United States branch out of Plano, Texas.  Agents determined through investigation that the branch was operated  by Qing Ming Hu, a naturalized United States citizen born in China.  Some of the unapproved product featured in FDA public alerts was shipped to Hu for re-distribution to United States customers.

Undercover agents placed numerous orders for the counterfeit and illegal diet pills.  In turn, money was wired to bank accounts.  At one point, two agents flew to a third country in an undercover capacity to meet with Zhou. 

At that meeting they discussed in depth Zhou’s manufacturing capabilities.  Zhou identified himself as the manufacturer of the counterfeit Alli and promised to fix defects in the counterfeit versions of the Alli he had previously shipped, defects that had been noted by the FDA in its public alerts. 

During that meeting the undercover agents told Zhou that they had access to a private customs broker who would be willing to import the counterfeit Alli into the United States through air cargo shipments that would be mis-described. 

As the investigation continued undercover agents and Zhou agreed to meet in Hawaii to discuss increasing the order for counterfeit Alli.  At that meeting Zhou provided proof that he was capable of producing large quantities of Alli, and that he had cured certain imperfections.  At the end of the meeting agents handed Zhou cash to complete the Alli order transaction.  At that point, Zhou was arrested.

A number of consumers reported feeling an assortment of adverse physical effects from taking the counterfeit Alli that they had purchased from the defendant’s web page or through a re-distributor.  One consumer, an emergency room doctor, suffered a mild stroke after ingesting the counterfeit Alli.

Zhou faces a maximum penalty of ten years imprisonment, a $250,000 fine, and restitution for the counterfeit goods offense to which he has pled guilty.

Hu faces maximum penalty of five years imprisonment and a $250,000 fine for the distribution offense to which she has pled guilty.

DirectBuy, Inc., is a discount buying club with 160 or more retail outlets in the U.S. Like other buying clubs, shoppers must purchase a membership before shopping there. Unlike most other discount buying clubs, however, the cost of a DirectBuy membership can be quite expensive.

Why do consumers agree to pay $3,995 or more for a buying club membership? West Virginia Attorney General Darrell McGraw maintains it takes coercion, deception and high-pressure sales tactics.

McGraw has filed suit against the Indiana-based firm and its West Virginia franchise, DirectBuy of Charleston-Huntington, and its President Timothy Parker.

McGraw said his office began receiving complaints in 2009. Consumers told him DirectBuy pressured them into purchasing memberships costing thousands of dollars. McGraw believes the company coerced consumers by offering free trial offers, guaranteeing free gifts, and offering a variety of other promotions.

Offers not available

When consumers attempted to redeem these offers, McGraw says they discovered the offers were not available as promised. Instead, DirectBuy allegedly focused on selling expensive club memberships through a sophisticated and oppressive sales presentation.

ConsumerAffairs.com has also received a number of complaints about the company from consumers in other states. Carol, of Los Alamitos, Calif., said she went to a sales meeting at DirectBuy and was told that she had to join that day or never come back.

"Since we were going to be building a house we thought it was a good deal," Carol told ConsumerAffairs.com. We paid $4500 for what we thought was a 10-year membership. We were sent a notice 3 years later that our membership needed to be renewed, just when we were getting ready to build our house."

Free visitors pass

According to McGraw, DirectBuy targets prospective members by direct mail, internet, and television advertisements. The solicitations encourage consumers to contact the company to get their "free visitor's pass" to its exclusive showroom.

If consumers sign up for a free pass, they are invited to a sales presentation at the local store. After acquiring the consumers' personal information, McGraw says each consumer is paired with an individual salesperson for a high-pressure one-on-one discussion designed to close the sale.

McGraw calls high-pressure sales tactics "unconscionable," and says company sales representatives offer money back guarantees, promise no hidden fees, and guarantee the lowest prices.

These representations are false, he says, because the written contract specifically prohibits refunds, discloses various hidden fees, and plainly states that "DirectBuy does not guarantee that members will get the best price." He says DirectBuy discloses these material terms only after the consumer has purchased and signed the membership agreement.

Investigation

After opening an investigation based on consumers' complaints, McGraw said he determined DirectBuy is violating West Virginia law.

"West Virginians should not be pressured with coercive, deceptive, and unlawful tactics into buying expensive club memberships that have little actual value," said McGraw.

The suit seeks a preliminary injunction barring DirectBuy from engaging in unlawful activity in West Virginia until further order of the court. The complaint further requests that the court eventually order restitution, refunds, debt cancellation, and civil penalties.

Paying for a product or service, then not receiving it, is one of the oldest, and most common consumer complaints. In New Jersey, consumer authorities have sued a North Jersey custom draperies and blinds maker, alleging that customers paid deposits for items that they either did not receive or were not as ordered.

The state's six-count Complaint, filed in State Superior Court in Newark, seeks consumer restitution from defendant Mitchell Poller, who has conducted business under many different names, including American Draperies and Blinds, American Draperies and Blind Company, Countrywide Draperies and Blinds, Country Wide Draperies and Blinds, Affordable Draperies and Blinds, Affordable Drapery and Blind Company, and The Drapery and Blind Company. Poller's most recent business was located on Main Street in Hackensack.

The complaint alleges that the defendant violated the state's Consumer Fraud Act, Home Improvement Contractors' Registration Act and related regulations, as well as the Furniture Delivery regulations. In addition to consumer restitution, the state is seeking civil penalties, compliance with the applicable state laws and regulations, and reimbursement of attorneys' fees and investigative costs.

Not delivered

"Consumers paid thousands of dollars for merchandise that was not as ordered and, in some cases, never delivered. Home furnishings are high-cost items, and we're taking this action to hold the defendant accountable for defrauding consumers," said New Jersey Attorney General Paula T. Dow.

In addition to selling draperies, blinds, and other home furnishings, Poller also offered cleaning and repair of window treatments and upholstered furniture. The state's complaint alleges that some items taken for cleaning were never returned to consumers, nor were their deposits returned.

Some consumers filed civil lawsuits against Poller, which resulted in default judgments that remain unpaid.

"Having your property essentially hijacked when you pay to have it cleaned is not acceptable. We're going to end what we allege to be a pattern of lies, deceit, and fraud perpetrated by Mr. Poller and through this action, make him return consumers' property and deposits," said Thomas R. Calcagni, Acting Director of the State Division of Consumer Affairs.

Unconscionable

The state's complaint alleges that the defendant engaged in unconscionable commercial practices and made false promises and/or misrepresentations. The defendant did not use required consumer protection language in customer contracts, failed to adhere to furniture delivery requirements, and did not register with the Division as a Home Improvement Contractor.

Consumers purchasing home improvements should first make certain that the contractor is registered with the state before agreeing to any work.

The Justice Department DOJ) has reached a comprehensive settlement agreement under the Americans with Disabilities Act (ADA) with HRB Tax Group Inc., H&R Block Tax Services LLC and HRB Advance LLC (H&R Block).

As part of the agreement, Block will strive to ensure effective communication with individuals who are deaf or hard of hearing in the provision of income tax preparation services and courses at more than 11,000 owned and franchised offices nationwide.

Sign language provision

The settlement agreement, which resolves an ADA complaint filed by an individual who is deaf, requires, among other things, that H&R Block furnish appropriate auxiliary aids and services -- including sign language interpreter services -- when necessary to afford a person who is deaf or hard of hearing equal access to the goods, services and accommodations made available to others.

"By signing this agreement, H&R Block has affirmed its commitment to providing effective communication with people who are deaf and hard of hearing not only at their tax preparation offices in San Antonio, where the complaint originated, but at their locations across the country," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The agreement will ensure that individuals who are deaf or hard of hearing have equal access to tax preparation services at more than 11,000 offices nationwide."

Provisions

The agreement requires that H&R Block:

• Provide auxiliary aids and services, including qualified sign language interpreters, to persons who are deaf or hard of hearing when necessary to ensure effective communication of its tax preparation services, programs and courses;
• Adopt and enforce a policy on effective communication with individuals who are deaf or hard of hearing for all H&R Block offices nationwide, post the policy on its websites and in its employee manuals, and distribute the policy to current and new employees and contractors;
• Establish and maintain a list of sign language interpreter providers;
• Post and maintain in a conspicuous location in all reception areas of H&R Block offices a notice stating that individuals who are deaf or hard of hearing have a right under the ADA to request a sign language or oral interpreter or other form of auxiliary aid or service if needed;
• Provide staff training on the ADA and H&R Block’s obligations to provide effective communication to individuals with disabilities;
• Monitor franchisees' compliance with this requirement consistent with monitoring of compliance with the franchise agreements and other requirements of federal, state or local laws; and
• Pay $5,000 damages to the individual who filed an ADA complaint and a $20,000 civil penalty.

ADA requirements

The ADA prohibits discrimination against customers with disabilities by businesses that serve the public. Among other things, the act requires tax preparation services, accountants, lawyers, doctors and other businesses to provide equal access to customers who are deaf or hard of hearing.

When services such as tax preparation involve important, lengthy or complex oral communications with customers, businesses are generally required to provide qualified sign language interpreters and other auxiliary aids, free of charge, to individuals who are deaf, are hard of hearing or have speech disabilities.

Other auxiliary aids may include the use of relay services for telephone communication, exchanging notes for brief and uncomplicated communications, providing assistive listening systems and receivers in classes for attendees who are hard of hearing, and providing captioned videos.

The appropriate auxiliary aid to be provided depends on a variety of factors including the nature, length and importance of the communication; the communication skills and knowledge of the individual who is deaf or hard of hearing; and the individual’s stated need for a particular type of auxiliary aid.

Auxiliary aids must also be provided for individuals who are blind or have low vision, such as materials in Braille, large print or accessible electronic formats such as email or HTML, qualified readers and assistance in filling out forms.

A federal judge has shut down an operation that allegedly posed as the U.S. government, then duped consumers into paying fees ranging from $200 to $2,500 by claiming the fees would cover processing by the United States Citizenship and Immigration Services (USCIS).

The court, acting at the request of the Federal Trade Commission (FTC),  froze the defendants’ assets and appointed a receiver to take over the business until the case is resolved. The FTC has asked the court to halt the business practices permanently and order the operation to repay its victims.

The real USCIS, a division of the Department of Homeland Security (DHS), offers advice and counseling to immigrants in the U.S. and people seeking to immigrate here. The agency also provides application forms for such benefits as green card renewal, work visas, and applications for asylum. The application forms are free but can cost hundreds or thousands of dollars to process.

Bogus Websites

According to the FTC, defendants Immigration Center and Immigration Forms and Publications, Inc., set up Websites that mimic official government sites, and then used the fake sites to steer immigrants to their deceptive telemarketing operation.

The Websites depicted American eagles, the U.S. flag, and the Statue of Liberty and had URLs such as www.uscis-ins.us and www.usgovernmenthelpline.com. They directed consumers to call a toll-free number that an automated voice answered, “Immigration Center.” Consumers were then transferred to a live person who answered, “USCIS or “U.S. Immigration Center,” and identified him or herself as an “agent,” “immigration officer,” or “caseworker.”

The sites also offered counseling and application forms. The counseling was done by telemarketers who did not meet legal requirements to provide immigration services, the FTC said.

Consumer confusion

Adding to the consumers’ confusion, the FTC contends, the defendants charged fees for application forms that were the same amount as the government processing fees, leading them to believe the fees covered the cost of USCIS processing. Some consumers who applied for the forms were told to send checks by overnight mail to cover the costs. Others paid with checks or money orders on delivery.

Consumers ended up paying for applications that were never processed by the USCIS for failure to pay the official processing fee, or, in some cases, they were charged twice, once by the defendants and once by the government after the defendant forwarded their bank account information to USCIS.

Charges

The FTC charged the defendants with violating federal law by misrepresenting:

• that they were authorized to provide immigration and naturalization services;
• that they were affiliated with the U.S. government; and
• that the fees paid by consumers would cover all the costs associated with submitting immigration documents to the USCIS.

In addition, two of the defendants were charged with providing the others with the means and instrumentalities to further the illegal scheme.

The defendants named in the case are Immigration Center; Immigration Forms and Publications, Inc; Charles Doucette, individually and doing business as Telestaffing; Immigration Forms and Services and Immigration Form Processing; Deborah Stilson aka Deborah Malmstrom; Alfred Boyce; Thomas Strawbridge; Robin Meredith; Thomas Lawrence; and Elizabeth Meredith.

The price of nutritious food is rising faster than less-healthy options, leading to a dietary disparity between the haves and have-nots, a new study shows.

That leads some researchers to conclude that it's time to rethink U.S. food policy, which through its subsidies encourage production of a limited range of foods that may not necessarily be part of a nutritious diet. Their report is published in the Journal of Epidemiology & Community Health.

University of Washington researchers previously found that better quality diets are more costly than less nutritious diets, and that there is a rising disparity in the price of healthful foods.

“The twist with this new study is that we’ve connected the dots that could explain why people in a lower socioeconomic status have less nutritious diets,” says Pablo Monsivais, acting assistant professor of epidemiology.

Seattle Obesity Study

Researchers studied data of more than 1,300 men and women from the Seattle Obesity Study, a population-based study of food access, diet quality, and health among King County, Wash. residents.

They first looked at how diet cost was associated with educational attainment and household income, two indicators of socioeconomic position. They used statistical methods to control for total calorie intake and other factors.

The average diet cost was higher for people with higher educational attainment and higher household income. People with lower educational attainment had diet costs that were an average of $1.09 per day lower than that of persons in the highest group ($8.19 to $9.28 per day).

Those with the highest educational attainment or income also enjoyed the most nutritious diets. Those in the highest income group reported diets that were on average 9.3 points higher in nutrient density than diets reported by the lowest income group (96.6 versus 87.3 percent), after controlling for dietary and demographic factors.

However, after taking the cost of food into account, the difference in dietary nutrient density between the highest and lowest groups shrank to 1.4 percentage points (93.0 versus 91.6 percent). “These results tell us that cost is a major factor in explaining the differences in eating habits between people of lower and higher socioeconomic level,” says Monsivais.

Monsivais says the Seattle study should be replicated on a wider, more diverse (in terms of education, income) section of Americans—or in another country.

Policy debate

Study results provide fodder for new and different nutrition policy and interventions, which for the last several decades have been mostly premised on the idea that poor diets were due to a lack of nutrition knowledge or insufficient motivation for healthy eating.

“The most universal policy change or intervention would be to rethink how we encourage the production of foods,” say the researchers. “In this country, we have a very expensive agricultural subsidy program that targets a limited range of foods that are not part of a nutritious diet. We do not support fresh produce or seafood, but instead support the production of inexpensive sugars, fat and refined grains. We need to align public health priorities with agricultural policies because it affects the largest number of people.”

In addition, Monsivais says states could be more creative with public school food programs and other nutrition efforts that affect low-income people. California has experimented with an electronic benefits transfer program (food stamps) that rewards people who buy fresh produce, which makes having a healthier diet easier and more affordable.

Food retailers and grocers could also help consumers make healthier choices, says Monsivais, by using “member” cards that can be used in a helpful and healthful way, offering up coupons for items that are nutrient-rich.

Just three weeks after Verizon announced that it will carry the iPhone beginning in February, AT&T is dealt another blow as it faces a class action alleging that the carrier’s bills “systematically overstate the amount of data used on each data transaction involving an iPhone or iPad account,” and charge consumers for “phantom data traffic” that never existed in the first place.

The suit, filed in San Francisco, alleges that AT&T charges consumers for data transactions even if they disable their phones entirely. It compares the billing system to a “rigged gas pump charging you when you never even pulled your car into the station.”

Phantom data use

It is notoriously difficult to measure the amount of data a person uses in a single session. But lead plaintiff Patrick Hendricks got around the standard obstacles by hiring an independent consulting firm to manipulate the phone so that it didn’t receive any data at all. The firm turned off the phone, ensured that no applications or e-mail accounts were running, and then left it off for a full ten days.

When Hendricks received his bill, it showed that 2,292 kilobytes of data had been used during the subject period -- the equivalent of over 35 transactions.  

Overcharges for actual data use

The complaint also says that, for transactions which actually do take place, the carrier charges too much. According to the complaint, web traffic was typically overstated by between seven and 14 percent, although sometimes that figure reached as high as a whopping 300 percent.

“So, for example,” the complaint explains, “if an iPhone user downloads a 50 KB website, AT&T’s bill would typically overstate the traffic as 53.5 KB (a 7% overcharge) to as high as 150 KB (a 300% overcharge).”

Small overcharges add up

Although the overcharges have only a “modest effect” on a single consumer, they could make up a “significant portion” of AT&T’s data-derived revenue, the suit alleges.

“A customer cheated by a rigged gas pump may not notice the small fractions of a gallon missing from his tank,” the suit points out, “but the station owner can boost his revenues by repeating the trick again and again to overcharge a large number of customers by a little bit apiece. The same is true with respect to AT&T’s rigged data billings.”

The suit alleges breach of contract, unjust enrichment, and violation of California’s Unfair Competition Law. Hendricks is seeking compensatory and punitive damages, and an injunction preventing AT&T from continuing to overcharge consumers.

The suit is one of the few iPhone-related pieces of litigation that doesn’t target Apple itself. AT&T Mobility, LLC is the sole named defendant.

Some consumers may be in the market for a big-screen TV for this Sunday's Super Bowl between the Packers and Steelers. When making this type of purchase, consumers often have questions about warranties.

Federal law does NOT require manufactures to issue warranties on their products. However, if they do, the warranty must be easy to read and understand. There are different forms of warranties, including full, limited, extended, and implied.

Many consumers ask what the difference is between a “warranty” and a “guarantee.” While there is no difference between the terms, there can be a big difference between the warranties of two similar products manufactured by different firms.

There is a federal law covering warranties called the Magnuson-Moss Warranty Act.  The law doesn’t require manufacturers to issue warranties on their products, but if they do, the warranty must be easy to read and understand.  No “legalese,” just ordinary language is allowed. 

Every term and condition must be spelled out in writing.  Magnuson-Moss also creates two types of warranties:  FULL and LIMITED.

Full warranty

The label FULL on a warranty means:

• A defective product will be fixed (or replaced) free of charge, and within a reasonable time, including removal and reinstallation if necessary.
• You will not have to do anything unreasonable to get warranty service (such as shipping a piano to a factory).
• The warranty is good for anyone who owns the product during the warranty period.
• If a problem is reported and not dealt with during the warranty period, the company
• is still obligated to deal with the problem even if the warranty runs out.
• If the product can’t be fixed (or hasn’t been after a reasonable number of tries),
• you get your choice of a new one or money back.

Check what parts the warranty covers.  A full warranty may not cover the whole product.  It may cover only part, like the picture tube of a TV. 

Limited warranty

If a warranty gives you anything less than the full warranty, it’s LIMITED.  A limited warranty may:

• Cover only parts, not labor.
• Allow only a prorated refund or credit.
• Require you to return a heavy product to the store for service (the piano).
• Cover only the initial owner.
• Charge for handling.

A product can carry a full warranty on part of the product and a limited warranty on the rest.

Magnuson-Moss generally requires manufacturers to make a copy of their warranty available for you to look at before you buy -- so you can comparison shop for the best warranty coverage.

Implied warranty

Implied warranties are rights created by state law, not by the company.  The most common implied warranty is that the product you buy is fit for ordinary uses -- an electric mixer has to mix, an ice crusher has to crush. If it doesn’t, you have a legal right to get your money back.  Implied warranties come automatically with every product, even though they may not be written out.  However, watch out for “as is” or “no warranty” sales; they cancel out your implied warranty.

Protect yourself

Read warranties before you buy.  Make sure any verbal promises by the sales representative are included in the written warranty.  Keep your sales slip with your warranty.  You may need it to prove the date you bought the product or that you are the original purchaser.