Current Events in April 2011

For years, Europeans have used credit cards embedded with a tiny microchip. Now, these electronic cards are coming to the U.S. Wells Fargo said it is testing the "chip" cards with frequent travelers, especially those who travel abroad.

The bank said it decided to try to new cards after receiving complaints from customers who reported difficulty using their standard credit cards overseas.

"U.S. issuers and merchants rely primarily on magnetic stripe technology," said Eric Schindewolf, vice president of product development for Wells Fargo Consumer Credit Card. "However, many parts of the world have adopted chip-enabled payment cards as a primary means of authentication, which has been problematic for customers who travel abroad and were unable to use their credit card. By combining traditional magnetic stripe along with the EMV chip technology, we hope our customers will have the convenience to use their credit card no matter where they are in the world."

Last to adopt

In fact, the U.S. is among the last of the developed countries that still relies on the magnetic strip on the back of credit cards to transmit information. Countries that have adopted the chip technology say it is much more secure, resulting in fewer unauthorized transactions.

Wells Fargo is partnering with Visa for the pilot project, whose product is called the Visa Smart Card. It will include both the traditional magnetic strip, as well as the chip. Wells Fargo scanned its database of customers and selected about 15,000 who frequently travel out of the country. They will be offered the Visa Smart Card, which should be available by mid-year, the bank said.

"This initiative will enable Wells Fargo customers to have their Visa card payments accepted anywhere in the world," said Beth Robertson, Director of Payments Research at Javelin Strategy & Research. "EMV technology is important to creating the widespread global acceptance that cardholders expect."

Buying products online is a lot easier than fighting a crowd at the mall, but consumers need to be careful about "free" or "trial" offers that are often part of any transaction.

"After making an online purchase, the company offers you a $10 coupon," Robert, of West Deptford, N.J., told ConsumerAffairs.com. "At which time, consumers are not given notice that you are enrolling for a discount program from Shopper Discounts that automatically debits your account $12 per month."

The Federal Trade Commission (FTC) requires that these kinds of offers carry "clear and conspicuous" notice that the consumer is being enrolled in an ongoing membership program. For the record, Robert should contact Shopper Discounts here if he wants to cancel. In the future, it's a good idea to ignore offers of discounts or free item. They almost always come with strings attached.

Costly conversation

With almost everyone carrying a cell phone these days, "collect" calls from a landline have almost become a thing of the past. But believe it or not, not everyone has a cell phone.

"My husband was traveling from North Carolina to Atlanta one night and called me collect, as his calling card would not work and he does not have a cell phone," Elizabeth, of Graham, N.C. said. "I accepted the call when I heard his name and by doing so immediately, apparently bypassed the recorded message telling me of the exorbitant rate we would be charged for the call! Wouldn't you do the same if it was your spouse or child on the road far from home and you got a collect call?"

Elizabeth said she was shocked when she got her phone bill and there was a $55 charge from Zero Plus Dialing for the six-minute call. There seems to be no rhyme or reason for the varying levels of collect call expense. It seems to depend on the third-party provider. Keep in mind that the bulk of collect calls these days are made from prison. When a provider has a "captive" audience, so to speak, they can charge whatever they want.

Dissatisfied customer

Flooring and installation can be a major purchase, so when things don't turn out quite right, consumers understandably get upset.

"My mother purchased laminate floors from Empire Today for my home," Sheri, of Wellington, Fla., said. "The floors were installed improperly and subsequently are coming up at the seams and buckling. I have had 2 inspectors look at the floors that will attest to this. Empire insists since I have a dog the damage was caused by urine, which is not true."

Sheri should be able to find someone at Empire Today who can resolve this issue, but she will need those two inspectors she mentioned to provide written statements. Companies need things in writing. From the sound of it, the installers did not leave enough of a gap between the flooring and the wall. Laminate flooring expands and contracts, so a small gap between it and the wall is necessary.

Still looking for peace of mind

Nereyda, of Killeen, Tex., is the wife of a U.S. serviceman who is upset after receiving a notice from the Internal Revenue Service that they underpaid last year's taxes by $1,400. Since she and her husband had purchased "Peace of Mind" insurance from H&R Block, she assumed they would take care of it.

"I immediately contacted the local office where I live, and I was accused of failing to include a W2 form, because they hadn't stapled it to the folder like the others," she said.  "H&R Block declined my claim after four weeks."

Nereyda may not have much recourse. She says H&R Block has a form she and her husband signed listing the tax documents they provided and the missing W2 is not on it. The insurance policy covers mistakes H&R makes. If they didn't have all the needed information, the company says, it is not at fault.

It appears that H&R Block heavily marketed the "Peace of Mind" contracts to U.S. service personnel on active duty. Nereyda, at least, clearly didn't understand what exactly she was buying.

The Department of Justice and FBI today announced the filing of a civil complaint, the execution of criminal seizure warrants, and the issuance of a temporary restraining order against a huge international “botnet.”

The botnet is a network of hundreds of thousands of computers infected with a malicious software program known as Coreflood, which installs itself by exploiting a vulnerability in computers running Windows operating systems.

Coreflood allows infected computers to be controlled remotely for the purpose of stealing private personal and financial information from unsuspecting computer users, including users on corporate computer networks, and using that information to steal funds.

The U.S. Attorney's Office for the District of Connecticut filed a civil complaint against 13 "John Doe" defendants, alleging that the defendants engaged in wire fraud, bank fraud, and illegal interception of electronic communications. In addition, search warrants were obtained for computer servers throughout the country, and a seizure warrant was obtained in U.S. District Court for the District of Connecticut for 29 domain names.

Finally, the government obtained a temporary restraining order (TRO), authorizing the government to respond to signals sent from infected computers in the United States in order to stop the Coreflood software from running, thereby preventing further harm to hundreds of thousands of unsuspecting users of infected computers in the United States.

"The seizure of the Coreflood servers and Internet domain names is expected to prevent criminals from using Coreflood or computers infected by Coreflood for their nefarious purposes," said U.S. Attorney David B. Fein for the District of Connecticut. "I want to commend our industry partners for their collaboration with law enforcement to achieve this great result."

"Botnets and the cyber criminals who deploy them jeopardize the economic security of the United States and the dependability of the nation's information infrastructure," said Shawn Henry, Executive Assistant Director of the FBI's Criminal, Cyber, Response and Services Branch. "These actions to mitigate the threat posed by the Coreflood botnet are the first of their kind in the United States and reflect our commitment to being creative and proactive in making the Internet more secure."

Particularly harmful

According to court filings, Coreflood is a particularly harmful type of malicious software that records keystrokes and private communications on a computer. Once a computer is infected with Coreflood, it can be controlled remotely from another computer, known as a command and control (C & C) server.

A computer infected by Coreflood and subject to remote control is referred to as a "bot," short for "robot." According to information contained in court filings, the group of all computers infected with Coreflood is known as the Coreflood botnet, which is believed to have been operating for nearly a decade and to have infected more than two million computers worldwide.

Coreflood steals usernames, passwords, and other private personal and financial information allegedly used by the defendants for a variety of criminal purposes, including stealing funds from the compromised accounts. In one example described in court filings, through the illegal monitoring of Internet communications between the user and the user's bank, Coreflood was used to take over an online banking session and caused the fraudulent transfer of funds to a foreign account.

In the enforcement actions announced today, five C & C servers that remotely controlled hundreds of thousands of infected computers were seized, as were 29 domain names used by the Coreflood botnet to communicate with the C & C servers.

As authorized by the TRO, the government replaced the illegal C & C servers with substitute servers to prevent Coreflood from causing further injury to the owners and users of infected computers and other third parties.

While this enforcement action completely disabled the existing Coreflood botnet by seizing control from the criminals who ran it, this does not mean that Coreflood malware or similar forms of malware have been removed from the Internet entirely. Nor does it mean that criminals will not attempt to build another botnet using a different version of the Coreflood malware or other malware. The best defense against such malware, and botnets in general, is for users to ensure their computers are protected by regularly-updated anti-virus security software.

Computer users should ensure they are using security software on their computers and that users regularly update their security and routinely scan their computers for viruses. 

Some people drink to forget. But medical researchers say drinking alcohol may make it easier to remember.

That's not to say doctors think you should increase your alcohol consumption to sharpen your brain. It doesn't work like that.

Hitoshi Morikawa, of the Waggoner Center for Alcohol and Addiction Research at The University of Texas, says the common view that drinking is bad for learning and memory isn't wrong. But, he says, it highlights only one side of what ethanol consumption does to the brain.

Conscious and subconscious memory

"Usually, when we talk about learning and memory, we're talking about conscious memory," said Morikawa, whose results were published last month in The Journal of Neuroscience. "Alcohol diminishes our ability to hold on to pieces of information like your colleague's name, or the definition of a word, or where you parked your car this morning. But our subconscious is learning and remembering too, and alcohol may actually increase our capacity to learn, or 'conditionability,' at that level."

What's the significance of this conclusion? Morikawa says it's just more evidence toward an emerging consensus in the neuroscience community that drug and alcohol addiction is fundamentally a learning and memory disorder.

When we drink alcohol or use drugs, our subconscious is learning to consume more. But it doesn't stop there. According to the study, we become more receptive to forming subsconscious memories and habits with respect to food, music, even people and social situations.

Addicted to memories

In an important sense, says Morikawa, alcoholics aren't addicted to the experience of pleasure or relief they get from drinking alcohol. They're addicted to all the memories and cues that are reinforced when alcohol triggers the release of dopamine in the brain.

"People commonly think of dopamine as a happy transmitter, or a pleasure transmitter, but more accurately it's a learning transmitter," said Morikawa. "It strengthens those synapses that are active when dopamine is released."

Morikawa's long-term hope is that by understanding the brain's connection to addiction better, he can develop anti-addiction drugs. If he can do that, he would be able to erase the subconscious memory of addiction.

"We're talking about de-wiring things," says Morikawa. "It's kind of scary because it has the potential to be a mind controlling substance. Our goal, though, is to reverse the mind controlling aspects of addictive drugs."

Moving is a stressful experience, made even worse when things go horribly wrong. While a good moving company can ease the pain, "rogue" movers who are out to scam you will turn your move into a nightmare.

"It started when we were quoted one price, then once the company started loading our things, the price doubled," Maurice, of Jackson, Tenn., told ConsumerAffairs.com.

Bait and switch

The bait and switch is probably the most common tactic of a rogue mover. The consumer is given a very low quote, in order to get the business. But once everything is on the truck, suddenly, things change.

"I got an estimate for an interstate move to Georgia of $989, plus a 10 percent discount and a $50 coupon reduction, for a total of $841," Eugenio, of Clarkston, Ga., told ConsumerAffairs.com.

But when the movers arrived, it turned out that estimate was a bit on the low site.

"When they loaded the truck, they gave us papers to sign and demanded $4,000," he said.

Lee, of Logansport, Ind., suspects his movers were "rogues," because some of his boxes turned up missing.

Guess which boxes were missing?

"Even worse than that was the boxes housed all of my gaming consoles, blue ray, PC, and a complete history of my personal, educational and business life," Lee said.

Rogue movers aren't always easy to spot, but there are tell-tale signs you should look for. For example, they often give low-ball estimates over the phone or Internet without ever visiting your home or seeing the items you want to move.

Once your household goods are on their truck, they demand more money before they will deliver or unload them. The consumers' belongings are held hostage and many have been forced to pay more than the initial estimate they agreed too in order to get their goods back.

Red flags

Here are some other  "red flags" to look for:

• The moving company's only form of acceptable payment is cash or a large deposit before the move.
• The company's Web site has no local address and no information about licensing or insurance.
• The company claims all goods are covered by their insurance.
• The mover does not provide you with a copy of "Your Rights and Responsibilities When You Move," a booklet movers are required by Federal regulations to supply to their customers in the planning stages of interstate moves.
• Offices and warehouse are in poor condition or nonexistent.
• On moving day a rental truck arrives rather than a company-owned and marked fleet truck.

To expose a rouge mover before you become a victim, make sure you get a cost estimate in writing, and insist on a walk-through of your dwelling.

Don't select a mover based on price alone. In many cases, you get what you pay for. If you have a bad feeling about your mover's tactics or charges, stop the move before your household goods are loaded on the truck.

For most people, using a computer mouse comes second nature, after a little practice. But for those with motor disabilities, it can be a frustrating experience.

The number of people affected by this may be increasing, as the population ages. But a University of Washington team has invented two mouse cursors that make clicking targets a whole lot easier.

Neither requires additional computer hardware - just some free, downloadable software. The researchers hope that in exchange for the software, users offer feedback.

Pointing Magnifier

One set of software, The Pointing Magnifier, combines an area cursor with visual and motor magnification, reducing need for fine, precise pointing. Getting near the target is all that's required. 

The UW's AIM Research Group, which invented the Pointing Magnifier, learned that users can much more easily acquire targets, even small ones, 23 percent faster with the Pointing Magnifier. http://depts.washington.edu/aimgroup/

The magnifier runs on Windows-based computer systems and replaces the conventional cursor with a larger, circular cursor that can be made even larger for users who have less motor control. To acquire a target, the user places the large cursor somewhere over the target, and clicks.

The Pointing Magnifier then magnifies everything under that circular area until it fills the screen, making even tiny targets large. The user then clicks with a point cursor inside that magnified area, acquiring the target. Although the Pointing Magnifier requires two clicks, it's much easier to use than a conventional mouse, which can require many clicks to connect with a target.

Angle Mouse

Another AIM technology, the Angle Mouse, also is designed to help people with disabilities. Like the Pointing Magnifier, it may be downloaded, and two videos, one for general audiences and another for academic ones, are available as well.

When the Angle Mouse cursor initially blasts towards a target, the spread of movement angles, even for people with motor impairments, tends to be narrow, so the Angle Mouse keeps the cursor moving fast.

However, when the cursor nears its target and the user tries to land, the angles formed by movements diverge sharply, so the Angle Mouse slows the cursor, enlarges motor space and makes the target easier to get into. The more trouble a user has, the larger the target will be made in motor space.

"It's less expensive to create computer solutions for people who have disabilities if you focus on software rather than specialized hardware, and software is usually easier to procure than hardware," said Jacob O. Wobbrock, an assistant professor in the Information School who leads the AIM Group.

Try them both

Wobbrock suggests that users try both the Pointing Magnifier and the Angle Mouse before deciding which they prefer.

"Our cursors make ubiquitous mice, touchpads, and trackballs more effective for people with motor impairments without requiring new, custom hardware," Wobbrock said. "We're achieving accessibility by improving devices that computer users already have. Making computers friendlier for everyone is the whole point of our work."

The Pointing Magnifier work was funded by the National Science Foundation and the Natural Sciences and Engineering Research Council of Canada.

To paraphrase a famous general, old scams never die. They keep coming back because they fool enough people to make them profitable. Such is the venerable "government grant scam."

"They called my home phone and cell phone, claiming I was picked to receive a $7,000 federal grant," Wilson, of Klamath Falls, Ore., told ConsumerAffairs.com. "I just had to have $215 in a bank account before the so called grant would be transferred."

The scammer, of course, was hoping Wilson would provide his bank account information, so that he could take whatever money was in the account. Wilson would be left waiting for the $7,000 "grant" that would never arrive. Fortunately, Wilson didn't fall for it.

"I informed them I was reporting them to the authorities and hung up," he said.

And that's exactly what you should do if you get a call like that. For the record, the government doesn't just hand out grants without a lengthy and difficult application process.

Late, late fees

Soon after Hollywood Video went out of business, former customers began getting calls from a collection agency, telling them they owed $100 or more in late fees. Most customers professed they were never late, or paid the fees before the stores closed.

"I read my Transunion credit report to find I had a collection of $138.00 from Hollywood Video," Darin, of Amsterdam, N.Y. said. "I know I don't owe this and have rented two videos from that store in my lifetime. On your website I see tons of complaints that state the same thing."

We're not sure what's behind this, but keep in mind any debt collector is obliged to provide some documentation of the debt. A simple telephone call isn't enough.

According to the Federal Trade Commission, "every collector must send you a written validation notice telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don't think you owe the money." Darin, and many other consumers, say they have received no such notice from Hollywood Video's debt collector.

He said, she said

Many consumer problems stem from a mistake. Unfortunately, it almost always falls to the consumer to try to correct it. Esther of Boynton Beach, Fla., said she called Verizon Wireless last year and was told she could end her service in December 2010 without an early termination fee.

"I paid my balance in full and cancelled service," Esther said. "I then received a bill for ending the contract early. I made sure I could cancel without penalty. Verizon is the one who told me I could cancel in December 2010.I called Verizon numerous times to question this and they said it was a mistake and that I didn't cancel early and I don't owe anything. But yet I still get a bill and now it's in collection."

Our advice is for Esther to go to a local Verizon Wireless store when they aren't busy and try to find a sympathetic employee who can help her. She needs someone to actually remove the charge from Verizon's system, and that might not be easy to do. If she's successful, she should send a copy of whatever documentation Verizon provides to each of the credit reporting agencies and ask that the collection notice be removed.

Storm clouds

Virginia, of Durham, N.C., has found herself a former AllState Insurance policyholder after 22 years. She's not exactly sure how it happened.

"In March 2011, we called the claims department to see if the damage that we found after removing a commode was covered," Virginia told ConsumerAffairs.com. "We were informed that they were not responsible for the repairs. We then suggested that we would speak to our attorney to better understand the 'insurance' dialogue.

A month later, Virginia says she received a letter stating that her policy would not be reinstated at the end of the contract. She wondered why.

"We called our agent of 22 years and he swore that it was not personal but that Allstate was dropping a lot of their customers in North Carolina because of the 2011 storm predictions," she said. "I believe that they cancelled us because of our threat to contact an attorney."

That may well be, but we find it interesting Virginia's agent told her the company is canceling insurance policies in advance of hurricane season. According to our maps, Durham is a good 200 miles from the coast.

A newly released study by the U.S. International Trade Commission (USITC) warns that the already hard-hit U.S. auto industry is in for more pain if a new trade agreement is approved by Congress.

The study was requested following a December 2010 “supplemental deal” that exempted some U.S. autos from having to meet stringent Korean auto safety and environmental standards.

“The latest study confirms that, even with the supplemental agreement, very few U.S. autos will be sold in Korea, and a huge increase in Korean auto imports into the U.S. is predicted,” said Todd Tucker, research director of Public Citizen’s Global Trade Watch.

“Moreover, the new study did not alter the previous findings that the bilateral and global balance in autos will worsen under this agreement, nor that the U.S. will see an increase in its overall global trade deficit,” Tucker said.

The USITC’s newest findings were not unexpected. The December supplemental deal did not change the ultimate tariff phase-outs – just the timelines over which tariffs go to zero. The USITC’s initial 2007 study on the Korea Free Trade Agreement (FTA) found that the U.S. auto deficit would increase by $531 million to $708 million as a result of the pact.

“The House GOP leadership didn’t like that finding, so they requested a new one that incorporated the changes made to the pact in 2010,” said Tucker.

In the new study, the USITC noted that slightly improved numbers on U.S. exports to Korea “stem from changes to the economic environment (e.g., the recent economic downturn) and declines in trade flows in 2009.”

“Bizarrely, House Ways & Means Committee Chairman Dave Camp (R-Mich.) celebrated this new finding, which is akin to celebrating the worst job environment in a generation,” said Tucker. “While touting an estimate that the supplemental deal will increase U.S. auto exports to Korea by between $48 million and $66 million, Chairman Camp fails to note that his new study does not change the initial troubling finding that U.S. imports from Korea will also increase $907 million.”

Bad news for autoworkers

Tucker said the findings of the new USITC study, though already bad news for U.S. autoworkers, are also likely to be underestimating the actual damage and inflating the prospective benefits of the FTA and supplemental agreement, for several reasons:

• The USITC refused to incorporate into its modeling more realistic assumptions about Korean consumer preferences, which are overwhelmingly biased in favor of domestically made goods.

• The USITC also did not incorporate into its model the fact that “South Korean” autos can be made with up to 65 percent Chinese or North Korean content and still receive the privileges of the deal.

• The USITC did not address the concern that members of Congress, industry and unions had that the “transplant” Korean companies now producing in the U.S. South might reduce their employment there, as tariffs are phased out and it becomes easier to simply ship Korean-made cars to the United States.

“Given that Koreans already are disinclined to buy foreign cars, a high-profile exemption of U.S. cars from having to meet Korea’s strong safety and environmental standards will only exacerbate Korean consumers’ notions that imports are inferior,” said Tucker. 

President Barack Obama campaigned and won on overhauling our unfair trade policies. Instead, what Americans face with the Korea FTA is the same George W. Bush North American Free Trade Agreement-style agreement, with slightly altered auto tariff schedules, Public Citizen maintains.

The Korea trade deal is still projected to increase the overall U.S. trade deficit and cost 159,000 U.S. jobs.

In case you needed a reminder about just how fast the pace of consumer technology is moving, Cisco Systems provided it today.

Cisco, which purchased Digital Technology, the maker of the Flip video camera in 2009, announced today it's discontinuing the device.

When it was introduced in 2006, the Flip Cam was indeed revolutionary. It was pocket-sized and shot remarkably high-quality video. Consumers loved it because it was easy to use and transfer video to either a computer or the Internet.

New meaning to ‘killer app’

But then, along came smartphones - the iPhone in particular - with built in video capability. Consumers began to ask themselves, "why do I need another device that just shoots video, when my phone can do it?"

Not only do smartphones now shoot high-def video, many phones come with video editing software, so you can produce a movie, right on your phone. All of a sudden, the Flip didn't look so revolutionary.

Will still provide support

Though it will stop making the Flip camera, Cisco said it will still support its FlipShare video-sharing services, at least for the time being.

Cisco is currently wrestling with other business issues, so outdated technology may not have been the only factor in Flip's demise. The company is cutting costs and laying off 550 employees with the move.

Still, the Flip's story is a sobering one for technology developers, underscoring the "here today, gone tomorrow" aspect of today's consumer technology world.

Apple lets children download a free game app, which they then use to rack up hundreds of dollars in charges for "game currency" without their parents' knowledge, a federal class action lawsuit charges. (read more complaints about Apple).

In the suit, filed in U.S. District Court in San Francisco, Plaintiff Garen Meguerian says Apple targets children with free "apps" which are "designed to induce purchases of what Apple refers to as 'In-App Purchases' or 'In-App Content,'" the suit charges.

The purchases are usually "currency" of some kind – either game cash or supplies such as fruits and vegetables, ammunition, etc.

In one celebrated case, children were spending $99.99 for a wagon of Smurberries.

Meguerian, of Phoenixville, Pa., said his 9-year-old daughter downloaded a number of free gaming apps from iTunes, including "Zombie Cafe," "Treasure Story" and "City Story" and within a few weeks spent $200.

Highly addictive

"These games are highly addictive, designed deliberately so, and tend to compel children playing them to purchase large quantities of Game Currency, amounting to as much as $100 per purchase or more," the suit alleges.

Players, even though they are minors, were enticed to buy currency in one-click sums of $99.99 or more, "causing Apple to pocket millions of dollars from such … transactions with minors and without the authorization of their parents, whose credit cards or PayPal accounts are automatically charged for the purchases."

Because the passwords used for game currency purchases are the same ones required for any Apple purchase, minors who know the password can buy game currency without authorization from their parents, the suit notes.

The suit says that after the Federal Trade Commission (FTC) inquired into its practices, Apple recently began requiring the entry of a password for all individual transactions and began warning users that "free" games may contain in-app content for sale but continues selling game currency to minors.

However, says Maguerian, "Apple has not offered to return to its account holders any of the millions of dollars it received from their minor children's purchases" even though such purchases "constitute voidable contracts because they were entered into with minors."

The suit seeks refunds, damages, interest and legal fees.

A motorist driving a new Chevrolet Cruze says he was driving down a highway when the steeling wheel came off in his hands. Seriously.

General Motors said it believes it was an isolated incident, but is recalling 2,100 of the cars nonetheless. The carmaker reported the incident, which happened in March, in documents filed with the National Highway Traffic Safety Administration (NHTSA).

Here's what GM says it thinks happened: when this particular car was in production, the wrong steering wheel was installed. Inspectors caught the mistake and the correct wheel replaced the incorrect one, but it was not properly secured. It was just a matter of time before it came off the steering column.

According to GM, the driver was able to slow the car and get it safely to the side of the road. There were no injuries connected with the incident.

GM introduced the Cruze with the 2011 model year and has sold more than 50,000 of the cars through March. The Cruze replaced the Chevrolet Cobalt and is a direct competitor with the Toyota Corolla.

The 2,100 Cruzes subject to recall will be inspected at Chevrolet dealers to make sure the steering wheels are properly attached. The recall is expected to begin immediately and owners may contact Chevrolet at 1-800-630-2438.

A St. Louis woman has sued Facebook for failing to remove a false profile containing her name and photo.

Brieanna Weber said that when she discovered the phony profile, set up under the name "Brie Weber," she had her lawyer send a letter to Facebook asking that it be removed and that she be furnished with the identity of the perpetrator.

That was on March 10. Nothing happened.

On March 17, Weber's lawyer, Jeffrey J. Lowe, received "what appear to be an automated response from Facebook thanking him for the report but stated [sic] that for security reasons, Facebook would not be able to respond with the additional information … and to please have the account owner view the security section of our help center," the suit states.

Lowe responded: "How can the account holder respond, it is not her profile. She is not the account holder, an imposter is."

On March 30, Lowe contacted Facebook again, noting that he had received no response.

The suit, filed in St. Louis City Court, seeks an injunction ordering Facebook to remove the fake profile, photos and content.

As of this writing, Facebook lists three Brie Webers. One of them is identified as living in St. Louis and has 51 "friends." The listing includes several photos, including one of a scantily-clad blonde woman astride a motorcycle. Another is a private listing with a single murky photo of a blonde woman who resembles the first "Brie." The third is someone else entirely, swept into the mystery by accident.

A federal class action claims that thousands of Maryland homeowners lost their homes because of the illegal robo-signing operation of the Shapiro & Burson law firm, with offices in Baltimore, Md., and Fairfax, Va., and six of its attorneys.  The suit also charges the firm charged excessive fees.

The suit notes that the State's Attorney in Prince George's County, Md., has opened a criminal inquiry into the firm's practices and has received statements from a former employee who said he was told to sign thousands of affidavits without seeing any evidence that the statements in the affidavits were true.

The plaintiffs, Charles Smalley and Pamela Ball, lost their homes in foreclosure actions involving the Shapiro & Burson firm, even though the firm allegedly did not have possession of the documents necessary to justify the actions.

Ms. Ball said that she lost her home in Bowie, Md., which she had purchased in November 2006 with an adjustable rate mortgage for $355,700. She lost her home in a foreclosure action little more than a year later, even though none of the defendants had possession of the note, although they swore in affidavits that they did, the suit alleges.

"Defendants sold Ms. Ball's home without ever seeing the promissory note," the suit alleges.

Jose Portillo, an employee of the law firm, signed the affidavits that resulted in the foreclosure and Ball's subsequent eviction. Portillo later exposed practices he said he was forced to undertake and described "an elaborate robo-signing operation whereby each Defendant financially benefitted from fees and commission in carrying out foreclosures tainted by fraud," the suit alleges.

Portillo also stated that he witnessed attorneys forging other attorneys' signatures to foreclosure documents.

Smalley bought his home in District Heights, Md., in June 2006 for $430,000, financed entirely with two mortgages. When he began falling behind in his payments in late 2007, he tried to modify the mortgages but was unsuccessful and in May 2009, Shapiro & Burson filed foreclosure motions against him.

The lawsuit charges that, "under penalty of perjury," employees of the law firm signed an affidavit certifying that Barclays Capital Real Estate was the holder of the note, even though the note was payable on its face to Fremont Investment & Loan.

Smalley's property was sold at auction in April 2010.

The lawsuit is filed on behalf of all Maryland residents whose residential property was foreclosed by Sharpiro & Burson during the last four years. It estimates there are at least 250 members of the class and "potentially thousands," based on Portillo's statements. It seeks an award of triple damages for each class member.

Ever-rising state and federal taxes on cigarettes, designed to discourage use but also generate government revenue, have made a pack of smokes very, very expensive. A pack of cigarettes can cost anywhere from over $6 to over $11, depending on the state.

That leaves smokers three alternatives; pay the price, quit, or find a cheaper way to feed their habit. Increasingly, smokers are buying machines to roll their own cigarettes, much to the consternation of some state officials.

Smokers can purchase cigarette machines or cigarette injectors. These are devices used to roll tobacco into a fairly professional-looking cigarette.

Two types of machines

There are two types of cigarette machines: the hand-held and the table-top models. They require cigarette tubes and replicate the store bought cigarettes.

Table-top cigarette injectors are reportedly able to produce the best homemade cigarette possible. Nearly all tubes have the filters in the tube. There are available from a variety of retail sources, as well as on eBay, where ConsumerAffairs.com found models for around $50.

Arkansas, among the states worried about this consumer trend, has taken the first step, approving a law that effective bans their use in the state. Act 836 of 2011, signed into law last week, was part of Arkansas Attorney General Dustin McDanial's legislative package. The Act bans commercial cigarette rolling machines, effective Jan. 1, 2012.

Same health risks

"Cigarettes from these machines may have a lower cost to smokers because of tax differences, but they carry the same high health risks. We don't want these machines in our state." McDaniel said. "I'm grateful to the General Assembly for also recognizing the potential harm to public health and providing broad, bipartisan support for this Act."

Besides consumers, McDaniel said some retail cigarette vendors operate these machines to exploit the tax discrepancies between "roll-your-own" cigarette tobacco, pipe tobacco and cigarettes. Because of the tax differences, the lower costs for "roll-your-own" cigarettes appeal to youth and an already-addicted adult population of smokers. He said he was not aware that any stores in Arkansas had offered that service.

McDaniel said that without Act 863, the tax discrepancies would hamper the Arkansas' long-term public health efforts.

Last summer the State of New Hampshire reclassified tobacco shops that installed cigarette-rolling machines as cigarette manufacturers, prompting a lawsuit by tobacco vendors.

$5 billion a year in lost tax revenue

The U.S. Department of Justice estimates that roll-your-own cigarettes cost states more than $5 billion annually. The Act allows the state to revoke the Arkansas business licenses of those manufacturers or wholesalers who act unlawfully in other states. Companies which pose an elevated risk of noncompliance with Arkansas law could also be required to post a bond as a condition of doing business there.

Licensed wholesalers must also provide more information about in-state sales to the Attorney General, Department of Finance and Administration and Arkansas Tobacco Control. The information will allow the agencies to target tax avoidance by retailers and consumers.

Food and fuel costs are going through the roof lately, but the U.S. Department of Agriculture (USDA) is pushing ahead with a plan to spend $200 million to finance the installation of gas pumps that can dispense fuel with higher ethanol content.

Critics are skeptical of the program, noting that the price of corn is already at record highs, thanks partly to the increasing use of ethanol, which is made from corn.

Farmers are happy about that, of course, but environmentalists aren't so sanguine. They say that ethanol is a less efficient fuel than gasoline and that using more ethanol doesn't necessarily save fuel.

Nevertheless, Agriculture Secretary Tom Vilsack is pressing ahead with his plan to offer grants and loans to service stations that want to install so-called "blender" pumps, which let motorists choose how much ethanol they want to mix in with their gas.

Most modern cars can burn up to 10% ethanol but "FlexFuel" vehicles can burn an 85% ethanol blend, known was E85.

Less efficient

While it's true that ethanol is cleaner-burning and thus produces less air pollution, it is also less efficient, meaning that a tank of E85 won't take you as far as a tank of 10% ethanol/90% gas. Add to that a higher per gallon price for E85 and critics say it will be hard to convince consumers to, in effect, pay more for less, DC Insider reported.

While popular with the farm lobby, corn and ethanol subsidies are likely to run into strong headwinds as Congress continues its push to reduce the deficit and eliminate unnecessary spending.

Already a bipartisan effort is underway to shift the focus to natural gas. A bill introduced last week seeks to jump start the use of natural gas fuel in cars by offering limited tax credits and regulatory changes to encourage the production and purchase of natural gas vehicles.

The legislation would offer tax credits to consumers who purchase new cars manufactured to run on natural gas. However, it's possible to retrofit existing vehicles to run on the fuel. Either way, the lawmakers say, it will help produce jobs.

"Natural gas is a cleaner, cheaper, more abundant alternative to foreign oil, and it is in both our economic and national security interest to use the vast reserves we have right here in our own backyard as the bridge fuel towards energy security," said Rep. John Sullivan (R-Okla.), vice chair of the House Energy and Power Subcommittee.

"Currently, 69 percent of the oil consumed in America is used for transportation, two-thirds of which we import from foreign nations - with gas prices approaching $4 to $5 per gallon, there is no time like the present to incorporate more natural gas vehicles into our transportation portfolio."

Plentiful and cheap

Natural gas is both plentiful and cheap, and estimates suggest there is enough in the U.S. to meet present energy consumption for nearly a century. The equivalent cost, compared to gasoline, is about $1.25 a gallon.

"It is important to know that the Natural Gas Act contains zero government mandates and zero subsidies," Sullivan said. "What we offer are incentives in the form of limited tax credits to give American businesses and families fueling options in light of 30 month high gas prices."

Rep. Dan Boren (D-Okla.) says natural gas could quickly remove American dependence on OPEC oil, stopping the flow of billions of dollars out of the country. The bill promotes both the economy, he says, and national security.

"It is supported by some of the most progressive, as well as by some of the most conservative, members of Congress," Boren said.

A federal class action claims Wells Fargo Bank forces borrowers to take out too much flood insurance on their homes, then takes kickbacks and commissions on the insurance it takes out on their behalf. 

The suit was filed in U.S. District Court in Pittsburgh on behalf of Desiree Morris, of Washington, Pa., who said Wells Fargo acquired a $115,000 mortgage on her home in 2009. She currently owes about $113,000.

Upon taking out the loan, Morris said she bought flood insurance in the amount of $118,000. In November 2010, the policy was renewed and the coverage was increased to $129,800, a 10% increase from her previous level.

Morris argues that the higher amount exceeds federal requirements by more than $14,000.

She notes that federal law requires that homes which, like Morris', are in a flood plain must have insurance “in an amount at least equal to the outstanding principal balance of the loan or the maximum limit of coverage ...whichever is less.”

But that was only the beginning.

The month after her insurance was increased to $129,800, Morris received a letter from Wells Fargo which claimed that her flood insurance coverage was "less than the coverage required" and claimed that she was required to have insurance that would provide the full replacement cost for her home, up to $250,000.

Wells Fargo said in the letter that if Morris did not take out more insurance, the bank would do so for her, taking out a "lender-placed policy" and charging her for it. The letter said Wells Fargo had purchased $94,000 worth of additional flood insurance on a 90-day binder and said it would bill her escrow account for the $893 cost.

The demands in the letter were "fraudulent, deceptive and misleading," Morris' suit claims and it charges that Wells Fargo was "unfairly, unjustly and unlawfully enriched by the kickbacks, commissions or other compensation."

The suit seeks class action status on behalf of anyone who had a loan or line of credit with Wells Fargo who was required to purchase flood insurance.

It charges Wells Fargo with violating the Truth in Lending Act, breaching its agreement, violating the Real Estate Settlement Procedures Act and misappropriating funds held in trust, among other allegations.

Oreck has agreed to stop making allegedly false and unproven claims that two of its appliances can reduce the risk of flu and other illnesses, and eliminate virtually all common germs and allergens.  The company also has agreed to pay $750,000 to the Federal Trade Commission.

The FTC had objected to Oreck's claims for the Oreck Halo vacuum and the Oreck ProShield Plus air cleaner. 

The Halo is an upright vacuum cleaner with a light chamber that generates ultraviolet light onto the floor while vacuuming.  The ProShield Plus is a portable air cleaner that filters air particles using an electrostatic charge.  The Halo retailed for $599.95, while the ProSheiled Plus cost as much as $399.95.

During the 2009 holiday season, Oreck's online ads pictured the Halo and the ProShield Plus side by side under the headline “Introducing the Oreck Flu Fighters, Help Reduce the Flu on Virtually any Surface and in the Air in Your Home” and claimed that the Prosheild Plus “captures and destroys many airborne viruses like the flu.” 

An infomercial for the Oreck Halo claimed: “The Oreck Halo has killed up to 99.9 percent of bacteria exposed to its light in one second or less,” and that the vacuum’s light chamber “has been tested and shown to kill up to 99.9 percent of certain common germs, plus dangerous pathogens like E. Coli and MRSA.”

The FTC charged Oreck Corporation with making these allegedly false and deceptive claims about the Halo vacuum cleaner:

• The Halo and the ProShield Plus prevent or substantially reduce the risk of flu.

• The Halo and the ProShield Plus prevent or substantially reduce the risk of other illnesses or ailments caused by bacteria, viruses, molds, and allergens – such as the common cold,  asthma, and allergy symptoms.

• The Halo eliminates all or almost all common germs and allergens found on the floors in users’ homes, and is scientifically proven to do so.

• The Halo’s ultraviolet light is effective against germs, bacteria, dust mites, mold, and viruses embedded in carpets.

• The ProShield Plus eliminates all or almost all airborne particles from a typical household room under normal living conditions, and is scientifically proven to do so.

The complaint also alleges that Oreck provided deceptive advertisements to its franchised stores for their use in marketing the Halo and the ProShield Plus.  According to the FTC, by doing so, Oreck provided the means and instrumentalities to its distributors to deceive consumers.

Under the terms of the administrative settlement, Oreck is barred from making any of the allegedly deceptive claims it challenged in the complaint for any vacuum cleaner or any air cleaning product – unless it has competent and reliable scientific evidence to support the claims. 

The company also is prohibited from making any claims about a product’s comparative health benefits without competent and reliable scientific evidence, and from misrepresenting the results of any scientific test, study, or research.

The U.S. Food and Drug Administration has approved a new GlaxoSmithKline drug to treat restless legs syndrome (RLS).

The drug, Horizant Extended Release Tablets (gabapentin enacarbil), is taken once a day to treat the the disorder, which causes a strong urge to move the legs.

The urge often occurs with unpleasant feelings in the legs. People who have RLS describe feeling pulling, itching, tingling, burning, or aching in their legs, and moving the legs temporarily relieves these feelings.

The urge to move often happens when a person is inactive, and the symptoms typically are worse in the evening and early morning.

“People with restless legs syndrome can experience considerable distress from their symptoms,” said Russell Katz, M.D., director of the Division of Neurology Products in the FDA’s Center for Drug Evaluation and Research. “Horizant provides significant help in treating these symptoms.” 

The effectiveness of Horizant was studied in two 12-week clinical trials in adults. The trials showed that people taking the medication had an improvement in their RLS symptoms, compared with people taking an inactive pill (placebo).

Horizant will be dispensed with an FDA-approved Medication Guide that explains the drug’s uses and risks. Horizant may cause drowsiness and dizziness and can impair a person’s ability to drive or operate complex machinery.

Horizant contains gabapentin enacarbil that becomes gabapentin, a drug used to treat seizures in people with epilepsy, when absorbed into the body. All drugs used to treat epilepsy carry warnings that they may cause suicidal thoughts and actions in a small number of people. Horizant will have the same warning.

Afederal class action accuses Sensa Products and Dr. Alan R. Hirsch of selling snake oil: "magic" "tasant" "crystals," a "new, clinically proven method of losing weight," with "no food restriction, and no change in lifestyle."

In the suit, filed in U.S. District Court in San Francisco, Jeannette McClendon of Contra Costa County, Calif., says she was tricked by Sensa's sales pitch into purchasing Sensa crystals, only to learn that the claims were without scientific foundation.

Instead of offering pills, liquid or specially-formulated food, Sensa sells what it describes as “sprinkles” – or crystals – that overweight consumers can sprinkle on their food, causing a weight loss of 30 pounds or more, all without dieting or exercise.

“Moreover,” the complaint notes, “This strange approach to weight loss is 'Doctor Formulated' and 'Clinically Proven.'

According to the sales pitch, Sensa crystals work with your sense of smell to stimulate an area of your brain called the “satiety center,” which “tells your body it's time to quit eating.” The suit alleges the sales pitch is false, misleading and unsubstantiated and says there is no competent scientific evidence to support it.

The lawsuit concedes that Dr. Alan R. Hirsch, M.D., who appears in promotional materials for Sensa, is a broad-certified neurologist but refers to him as a “particularly sophisticated hustler, one with a medical degree and a thick stack of junk science to support the claim his magic crystals are 'clinically proven.'”

Dr. Hirsch has been able to get by with this, the suit charges, only because over-the-counter weight-control products have not been regulated as drugs since 1994, when Congress bowed to pressure from the dietary supplement industry and largely removed supplements from FDA regulation.

The suit charges that Sensa has violated various California laws, including those dealing with false advertising and unfair business practices.