Current Events in April 2011

You pick up a bottle of pills in a reputable store and have no reason to doubt that what the label says is true, right? Lynn, of Manhattan Beach, Calif., seems to have her doubts.

"My vet said that most glucosamine chondroitin supplements are merely placebos," Lynn told ConsumerAffairs.com. "I have been giving my dog these pills for five years. Has this all been for nothing? How do I know that this is real since its not regulated by the FDA? The vet said over half of the products are not glucosamine chondroitin. How do I find out?"

Frankly, this sounds a bit like an urban legend. If a manufacturer is packaging a placebo and selling it as a supplement, it's clearly fraud. What Lynn's vet may have said is that some studies have suggested glucosamine chondroitin provides no benefit, you might as well be giving the dog a placebo. If Lynn wants to check out her suspicions, however, she could take the product to a testing lab. Oh, and if it is a placebo, we'd like to know about it.

A little too friendly

It's always nice when you talk to a company's customer service rep and they're friendly and helpful. Up to a point.

"I called Belkin technical support to help me change the password on my mom's wireless router," Joanne, of Irvington, N.J. told ConsumerAffairs.com. "After everything was set and done, I was pleased and ended the call. A few minutes later, I get a text from Facebook and the worker that I spoke to had used my information to look me up and send me a friend request. I was mortified. I couldn't believe it."

That does sound a little creepy. Joanne said she called back and talked with a manager and filed a complaint. But clearly, company employees shouldn't be using privileged information for personal purposes.

They don't want you to go

It's hard to part company with a health club. Once you're a member, they don't like to see you walk out the door. Thomas, of Littleton, Colo., only wanted to signed up for a year at Bally's Total Fitness so he wrote them a check instead of using a credit card. But a year latter, he says Bally's hit his bank account for another annual fee.

"I never agreed to an annual auto draft," Thomas told ConsumerAffairs.com. "And when asked them to provide the documents confirming such, the rep said 'they don't do that.'"

The only other option might be to try and pay the fee in cash. Meanwhile, Thomas should have paperwork from when he joined. He needs to review the terms and condition of the contract he signed.  Most likely, Bally's was within its rights under the contract.  If not, Thomas could complain to Colorado Attorney General John Suthers or file suit in Small Claims Court to get his money back.

Caught short

Viviana of Eatontown, N.J., was busy with her two daughters when Ikea delivered the items she ordered, which came in 78 pieces.

"I was trustworthy of the guy and asked him if everything is there he assure me that everything was there and no need to count," Viviana told ConsumerAffairs.com.

Unfortunately, not everything was there, and because she signed off on the delivery, Viviana said she was told there's nothing that can be done. She says she's out $778. The lesson here, of course, is to check the delivery before signing.

Complaints about the full-body scans conducted by Transportation Security Agency (TSA) agents are common. But most of us pay little attention to something that's almost as important to airline security – the TSA's behavior detection program, known as SPOT. (Read more consumer complaints about airlines).

The Government Accountability Office (GAO) found in May 2010 that the TSA had deployed the program without determining whether there was a scientifically valid basis for it, and the latest report finds not much has changed, DC Insider reports.

Using SPOT, TSA agents are supposed to be able to spot potential hijackers and terrorists using "behavior detection principles." But the GAO found that there is no scientific consensus on whether behavior detection principles can be reliably used for counterterrorism purposes.

In other words, no one can really say whether the program works. Oh well, there were those six terrorist plots.

Say what?

Yes, GAO says that individuals allegedly involved in six terrorist plots successfully made their way through SPOT airports. No other information about those plots was provided but GAO noted that it recommended in May 2010 that TSA study the feasibility of using airport video recordings of the behaviors exhibited by persons transiting airport checkpoints who were later charged with or pleaded guilty to terrorism-related offenses.

GAO said such recordings could provide insights about behaviors that may be common among terrorists or – on the other hand — could demonstrate that terrorists do not generally display any identifying behaviors.

TSA agreed and in March 2011 reported that it is “exploring ways to better utilize such recordings.” No word yet on the results of that exploration.

Consumers need to be on the alert following last weekend's data breach at one of the nation’s largest email marketing companies, Epsilon Interactive.  As a result of the data breach, potentially millions of names and email addresses are in the hands of online hackers. (Read more consumer complaints about privacy).

The very hackers who stole the data will likely send phishing emails asking for your personal information.  Phishing emails often appear to be from legitimate companies, but are in fact crafted to solicit your personal banking information and social security number.

Affected companies have been notifying consumers that their information may be compromised and consumer protection officials around the country are urging consumers to take the warnings seriously – not only now but for many months to come.

Soothing language

Many of the warnings being sent by companies are written in language seemingly intended to lull consumers into a false sense of security. Capital One, for example, said: “Capital One has been informed that the compromised files did not include any personally identifiable or customer financial information,” the credit card company said in a statement Sunday. “Capital One is actively investigating the incident and Epsilon is conducting its own comprehensive investigation in cooperation with the appropriate authorities.”

In an email to its customers, Ameriprise Financial said: "Epsilon sends marketing and service emails on our behalf but does not have access to sensitive client data such as social security numbers. They have assured us that only names and email addresses were obtained. We take your privacy very seriously and want you to be aware of this."

Assuming it is true that only names and email addresses were stolen, that is still a very valuable starting point for criminals, online security experts noted. Just the ability to match full names and email addresses gives scam artists a headstart on chipping away at the rest of an individual's private information.

Once the information has been compromised, it is likely to be widely distributed in the black market and used by numerous scam artists for many years to come.

Companies that use Epsilon for email marketing include:

Consumer warnings

A typical warning came from Oregon Attorney General John Kroger, who reminded his constitutents that legitimate companies will never ask you for a bank account or social security number or username and password in an email. Common examples of phishing emails including fake “package delivery confirmation” and “bank account” emails.  Attorney General Kroger offers the following tips to stay safe from online hackers.

• Never respond to an email soliciting personal information.  If you suspect it might be legitimate, pick-up the phone and call the company directly.

• Do not click on any links embedded in phishing emails.  They may contain viruses or malware designed to steal your personal information.

• Make sure your computer has up to date anti-virus software. 

At a time when private pension plans are running out of money and retirement investment accounts are trying to make up for a decade of stagnant growth, people nearing retirement are becoming more dependant on Social Security.

"Private-defined benefit pensions -- already a disappearing breed -- buckled further under the stock market meltdown," said Merton Bernstein, a professor at Washington University in St. Louis School of Law. "The newly dominant 401(k)s plans lost, on average, a quarter of their value during the four years starting in 2008."

But Bernstein says Social Security, not dependent on market performance, didn't miss a beat as the principal source of retirement income. Indeed, with the faltering of private plans, he says it contributed an even larger share than ever to retirees and survivors.

Paper trust fund

According to Bernstein, Social Security is on course to provide full benefits to its expected beneficiaries through 2036 due to its multi-trillion dollar trust fund. However, that trust fund is only on paper.

Congress has "borrowed" the surplus funds over the years and now, facing huge budget deficits, has no way to repay the money. Social Security, starting this year, will now draw money from general revenue to meet current obligations. Had Congress not spent the money, there would be plenty left in the "trust fund."

Much of the budget battles taking place in Washington have so far carefully avoiding encroaching on "entitlements," a euphemism for Social Security and Medicare, whose spending will rise even more as the Baby Boomers retire. But policymakers and economists increasingly express doubts the government can keep looking the other way.

Misplaced budget battles?

John Mauldin, CEO of Millennium Advisors, says the amount of budget cuts Republicans and Democrats and now fighting over is barely a drop in the bucket.

"If  they are to balance the budget, the government needs to raise taxes and cut $150 billion per year or $1.2 trillion over the next five or six years," Mauldin said in an interview with the Daily Ticker, a Wall Street webcast. "You can't cut it all at once, you cut it all at once you throw us into a depression."

Bernstein believes raising Social Security taxes quickly will help keep the system on its feet. Currently, there is a cap on earnings subject to Federal Insurance Contributions Act (FICA) withholding. Bernstein says raising, or even removing that cap entirely, could pump more money into the Social Security, providing an increased measure of security for Americans who are increasingly depending on it.

Mississippi-Attorney General Jim Hood says the long-standing jury duty scam has resurfaced in his part of the country.

In his scam, someone calls and claims to be a court officer, alleging that you failed to appear for jury duty. The caller may even say a warrant has been issued for your arrest.

“It's easy to see why this works," Hood said.. "The victim is clearly caught off guard and understandably upset at the possibility of being arrested.”

After alarming the victim, the caller then seeks to “confirm” the victim’s Social Security number and other personal information.  The victim is often told that the entire matter can be instantly dismissed by paying a fine. All the victim needs to do is provide a credit card or checking account routing number. By the time the call ends, the scammer has all the information  necessary to open lines of credit under the unsuspecting victim’s name.
“Often, these identity thieves are actually thousands of miles away and in other countries,” said Hood.  “Under this scheme, criminals may simply go through the phone book hoping that sooner or later someone will provide the sensitive information they need to steal an identity.”

This scam's simplicity could be what makes it so effective.  The victim reacts immediately out of fear, rather than taking the time to reflect about the information being requested. In reality, court workers will never call you to ask for social security numbers and other private information. In fact, most courts follow up via United States mail and rarely, if ever, will call prospective jurors.
Consumers who receive such a call can verify whether they must appear for jury duty by calling their circuit and justice court clerks.
“Protecting yourself is the key.  Consumers should never hand over personal information in response to an unsolicited telephone call or e-mail, no matter how legitimate it might appear,” said Hood.

Texcote is a "green" product manufactured by Textured Coatings of America, for the exterior of buildings. Steven, of San Bernardino, Calif., says he authorized the company to apply Texcote to his home, after being told the product would not crack, chip or fade for 65 years.

"It's doing everything it's not supposed to do after only four years," Steven told ConsumerAffairs.com.

Since Textured Coatings of America recommended the local contractor who applied the product, Steven felt the company was obligated to do something about it.

"We paid out $9,800.00 on the first go around," he said. "We don't feel we are responsible for paying for this twice when we were told that its a one time deal for 65 years."

Steven probably has little recourse in this case, though you could certainly argue that logic is on his side. When purchasing a product directly from a manufacturer, and then hiring a contractor to apply it, the terms and conditions are required reading. Make sure who is responsible for what.

Shifting terms

Mobile phone customers are well aware of early termination fees, so Maria, of Yonkers, N.Y. was concerned when her husband accepted a new job in Europe.

"We called T-Mobile, to inquire whether we would still be bound by our contract, even though we would be overseas," Maria told ConsumerAffairs.com. "T-Mobile informed us that, if we produced documentation supporting our relocation, then we would be released from our contractual obligations."

But Maria says a few months later, after she had gathered all the necessary documentation, she called T-Mobile and learned the policy had changed and that she was contractually bound, regardless of circumstances.

"How can policy changes effect agreements that predate the changes?" she asked.

Terms of a contract can't be changed, but a company's policies can. The terms and conditions usually carry the fine print disclaimer "subject to change without notice." But Maria may have a chance. She should read "How To Avoid Early Termination Fees."

That repairman's pretty busy now

Years ago, Maytag's advertising revolved around the theme of "the lonely Maytag repairman." Lonely, because no one ever called him since their Maytag appliances never needed repair. You don't see that ad so much anymore.

"I have been a loyal customer in the past with Maytag because their products lasted forever," Carol, of Smyrna, Ga., told ConsumerAffairs.com. "However, I purchased a Maytag dryer in 2005 and the Control Board has gone out twice since then costing me $270 for the first visit to have it repaired. I called Maytag and asked about ordering the part the second time it went out and they were going to charge more than what I could order online from a parts company."

Carol says she's thinking about letting the Maytag repairman go back to playing solitaire and buy a new dryer.

Don't pay upfront

State and federal consumer authorities continue to crack down on advance-fee mortgage modification consultants, but still these company continue to plague troubled homeowners. After hearing a radio ad for the Modification Group early last year, David, of Twinsburg, Ohio made an appointment.

"We had to pay $500 up front to get the lawyers that works with our mortgage company to get our loan reduced," David told ConsumerAffairs.com. "Then we had to send in three payment of $600 + dollars to hold their services. I have paperwork and it looked legit to us."

After more than a year, David said he can't get anyone to return his calls and say he feels like he's been scammed. David may be dealing with a company that is in violation of the law.

The Federal Trade Commission (FTC) has issued a rule with nationwide effect that bans providers of "mortgage assistance relief services", which includes residential mortgage foreclosure rescue, loan modification, short sale, and deed-in-lieu of foreclosure services, from requesting or collecting fees before they successfully secure a modified mortgage.

JK Harris & Company has agreed to pay $1.2 million in penalties and refunds to Texas consumers, Texas Attorney General Greg Abbott announced.

The judgment also applies to two related companies, JKH Financial Recovery Systems, LLC and Professional Fee Financing Associates. In April 2009, the State charged the defendants with materially misrepresenting their ability to help Texans resolve their unpaid federal income tax obligations.

“Under the court order, JK Harris and its related companies must reform the way it does business – and provide restitution to Texas taxpayers who were harmed by the defendants’ unlawful conduct,” Abbott said. “Taxpayers from across the state complained to the Attorney General’s Office about the defendants’ misconduct. The agreement seeks to resolve past problems, reimburse Texans who paid for services that were not actually rendered, and prevent additional misconduct in the future.”

In addition to the agreement’s financial penalties, the court ordered the defendants to reform several of their business practices and to improve disclosures to their clients:

• The defendants must clearly disclose, in writing, the fact that very few taxpayers qualify for the Internal Revenue Service’s Offer in Compromise (OIC) program.

• The defendants must also acknowledge that a taxpayer’s future earning potential and equity holdings factor into taxpayers’ eligibility for the OIC program – and thus decrease the likelihood that certain taxpayers will quality for OIC treatment.

• JK Harris must also provide its clients written notice that the IRS is likely to continue collection efforts – including liens, levies and garnishment procedures – unless and until an OIC is approved.

The judgment stems from the state’s April 2009 legal action against the defendants for misrepresenting their ability to help delinquent taxpayers resolve their unpaid obligations to the IRS. According to the state’s enforcement action, JK Harris failed to provide promised services, overstated its ability to reduce taxpayers’ debts to the Internal Revenue Service, and accepted large, prepaid fees from customers whose tax liabilities the firm knew – or should have known – it could not actually reduce.

Former Texas clients of JK Harris & Company, JKH Financial Recovery Systems, LLC, or Professional Fee Financing Associates who believe they were misled by the defendants’ conduct should contact the Attorney General’s Office at (800) 252-8011.

As statistics from the government's HAMP program attest, it isn't easy to get a mortgage modification. Loan servicers seem uninterested in helping, often requiring homeowners to jump through a frustrating series of hoops.

But that doesn't mean consumers should turn to a private company that makes big promises and charges a big upfront fee for help. In fact, Colorado Attorney General John Suthers says that's almost always a big mistake.

Suthers' office has filed suit against Colorado-based Loan Modification Solutions on suspicion the company defrauded consumers in search of home loan modifications and foreclosure relief, both in Colorado and nationwide.

$2,995 fee

According to the complaint, Loan Modification Solutions and its principals collected $2,995 upfront fees from homeowners in exchange for loan modification services (read more complaints about loan modification). The company is suspected of taking in more than $1 million since January 2009. 

In Colorado, and many other states, companies cannot demand an upfront fee for loan modification or foreclosure relief services.

Suthers says the company also is suspected of using deceptive advertisements to attract customers, including promises of a 100 percent money-back guarantee and a more than 90 percent success rate. The complaint says the company largely ignoring consumers' requests for refunds when they failed to secure modifications.

‘Skilled’ and ‘professional’

Many homeowners were undoubted attracted by the company's ads that said it employed "skilled" and "professional" negotiators to secure mortgage modifications. According to the complaint, the company did little more than collect documents from homeowners and fax them to their lenders, something homeowners could have done themselves.

"Loan-modification scams prey on distressed homeowners' desire to save their homes and to find any means to help fix their dire financial situations," Suthers said. "As is the case with most loan-modification operations, consumers who dealt with Loan Modification Solutions lost not only their upfront fee, but also crucial time they could have used to secure a modification through their lenders."

Be skeptical

Before turning to a private company to help secure a modification or head off impending foreclosure, homeowners need to employ a healthy dose of skepticism. A company that asks for a fee in advance should serve as a huge red flag. In fact, many states now have laws making that illegal.

Consumers should also be wary of any company that tells you to stop making your loan payments or to stop working with your lender. Failing to make payments could result in a foreclosure.

Finally, keep this in mind: the bigger the promise, the more likely it is to be a scam. Suthers says if a company promises to get rid of your debt, they are making a promise they cannot keep.

The economy in recent years has been plenty scary, and some companies that sell precious metals have played on that fear to sell physical gold and silver. Their clients are people who are worried about hyperinflation and other economic calamity. Some recent ad campaigns have encourage consumers to add gold and silver to their retirement accounts.

Without judging whether these concerns are well-founded, we will suggest that investors exercise extreme caution.

"I wired $19,810 to Gold Run Investments from my retirement account for the purchase of 500 silver coins. But I can't get hold of anyone at this company since a week ago," George, of Sunland, Calif., told ConsumerAffairs.com.

George said he found Gold Run Investments on the Internet when searching for a place to buy silver. He thought he was offered a good value so he wired the money. Now, he says he can't reach the company and apparently never received his 500 silver coins.

According to Hoovers, Gold Run Investments LLC is located at 1314 Durango Ridge Road, Durango, Colo. The telephone number is 970-375-0539. If George does not get satisfaction, he should contact Colorado Attorney General John Suther's office. And it goes without saying, before investing your retirement savings in gold or silver, seek qualified advice from a trusted and impartial financial advisor.

A new one

There have been numerous complaints in recent years about glass baking dishes shattering when placed in a hot oven. Barbara, of Bay Shore, N.Y., has a complaint we hadn't heard before.

"My Pyrex casserole exploded in my refrigerator," Barbara told ConsumerAffairs.com. "It had been in there for over 24 hours when I opened the door it exploded sending glass flying. I have read about this happening with a change of temperature from oven or freezer but this happened to me by opening the refrigerator door!"

The reason for these explosions remains a mystery. The companies that manufacture these baking dishes insist there has been no change in the manufacturing process.

Déjà vu

Last year at this time we were flooded with complaints about sudden acceleration incidents in Toyotas. After extensive tests, the National Highway Traffic Safety Administration said the problem was not related to the vehicles' electronics, and the cause remains pretty much a mystery. But the problem doesn't seem to have gone way entirely.

"Sudden acceleration of the vehicle despite pressing on the brakes," James, of Martinez, Ga., told ConsumerAffairs.com. "The brakes went soft and the vehicle crashed into a sign post and a vacuum cleaner system at the car wash. I was trying to pull into a parking space with one foot on the brake when the vehicle accelerated beyond control. I used both feet on the brakes to no avail."

Millions of Toyotas were recalled to replace accelerator pedals, which were suspected of sticking.

Unexplained

With airlines charging up to $50 to check bags, lots of travelers are shipping their clothes to their destinations. But even that can have unexpected drawbacks.

"I mailed my clothes from Littleton, Colo. to Jacksonville, NC," Kathy, of Jacksonville, N.C. told ConsumerAffairs.com. "Box arrived at the local Post Office and at some point between Colorado and North Carolina, the box either broke open or was opened and taped back up."

But that's not the odd part.

"Several items were missing from my box and one shoe and five ladies tops were in my box that were not mine," Kathy said. "Figure that one out!"

Scientists may be a step closer to unraveling the mysteries of Alzheimer's disease and finding a cure for the dreaded affliction that robs the aging of their memory.

Researchers say they have identified four more genes that may serve as triggers for the onset of the disease. With this information, they say, they may be able to devise a drug, or therapeutic lifestyle, that can prevent more than have the cases.

Four of the new genes are linked to late-onset Alzheimer's disease. Each of these genes adds to the risk of developing this most common form of the disease, and together they offer a portal into the causes of Alzheimer's.

New pathways

"A significant aspect of our research is that these genes clarify three new pathways," said Richard Mayeux, one of the lead scientists in the study and Chairman of the Department of Neurology of Columbia University Medical Center.

The genes are related to the accumulation of amyloid in the brain. These new genes are involved in inflammatory processes, lipid metabolism, and the movement of molecules within cells.

"Therefore, we may now have four pathways that are critically related to the disease and that could really make a difference in how we study and potentially prevent and treat it," ssaid Mayeux.

Intriguing results

The study also revealed other intriguing results.  Dr. Michael Boehnke, a professor at the University of Michigan and an outside advisor to the study, says researchers found that injuries that cause an inflammation of the brain --  such as strokes and head injuries  -- increases the risk of Alzheimer's.

He also says that the study found that some of the newly discovered genes appear to be affected by cholesterol, leading researchers to conclude that people with high levels of cholesterol are more at risk for Alzheimer's disease.

The study is one of the largest of its kind. It was led by the University of Pennsylvania School of Medicine, the University of Miami, Boston University School of Medicine and Columbia University. It analyzed more than 11,000 people with Alzheimer's and a nearly equal number of elderly people with no symptoms of dementia. In all, it studied about 54,000 individuals.

"This is the culmination of years of work on Alzheimer's disease by a large number of scientists, yet it is just the beginning in defining how genes influence memory and intellectual function as we age. We're all tremendously excited by our progress so far, but much remains to be done, both in understanding the genetics and in defining how these genes influence the disease process," said Gerald D. Schellenberg, a University of Pennsylvania researcher.

Objectives

The research had two main objectives. First, identification of new Alzheimer's disease genes will provide major clues as to its underlying cause. Scientists say the knowledge gained from this study will lead to development of more effective drugs.

Second, the gene discovery will help physicians predict who is at greatest risk of developing Alzheimer's disease. This, researchers say, will be important as preventive measures become available. Identification of these risk genes will also help researchers to determine the disease-initiating steps that begin in the brain long before any symptoms of memory loss or intellectual decline are apparent.

Eventually, it is hoped that researchers will be able to describe the events that lead to the destruction of large parts of the brain and, ultimately, complete loss of cognitive abilities.

The March 11 Japanese earthquake and subsequent disasters has put a big crimp in the production of cars and trucks, creating shortages that are likely to stretch into next year.

But as always, there's a flip side to the coin: automakers and dealers are gaining new pricing power as supplies dwindle. Automakers have been moving quickly to slash incentives and dealers are less eager to wheel and deal on prices as they contemplate delays in delivery of new inventory.

J.D. Power and Associates estimates that even in March, dealers and automakers netted an extra $300 on every new vehicle than a year ago, thanks to lower incentives, Automotive Age reported, a trend that's likely to become more pronounced in the months ahead.

TrueCar.com, meanwhile, estimated the average new-car incentive at $2,432 in march, down $366 from last year. Prices, meanwhile, remained flat even as consumers switched to less expensive vehicles – meaning they were generally paying more for less even as actual dollar amounts held steady.

So how long is this all expected to last?

The more optimistic observers think that production may get back to normal by May. But other industry insiders say the quake's effects could hang around until next year – affecting not just Japanese cars but also American and European brands that rely on key Japanese parts.

Many of the high-tech parts in today's cars are produced in Japan and it's not a simple matter to move production somewhere.

One after-shock that's just beginning to be felt is the effect on Japanese cars that are made in America. Although most Japanese cars are assembled here, many of the parts come from Japan but it only takes the lack of a single critical component to shut down an assembly line.

There are still a few cargo ships en route on their three- to four-week voyage to the United States from Japan, but once they arrive and offload, there will be no more for months.

Most dealers have enough cars on hand to last through April but beyond that, it's anybody's guess.

Toyota cuts back

Toyota sales have been slumping but the automaker is trimming back some of its incentives and marketing programs. Why? The answer's fairly obvious: inventories are getting slim as Japan struggles to recover from the recent earthquake and related disasters.

Slightly less obvious is the effect of higher gas prices on U.S. auto sales. While you might think of Toyota as a "green" company that produces mostly fuel-sippers, the truth is that a large part of its sales involve SUVs and light trucks. Both categories are selling sluggishly as gas prices continue their climb towards $4 and beyond.

Last year at this time, Toyota was pulling out all the stops, with massive marketing and advertising campaigns, generous rebates and ultra-cheap financing deals, all part of its effort to recover from the massive recalls occasioned by reports of unintended acceleration.

But this year, Toyota has discontinued a 2.9 percent APR program on the Prius hybrid and has put its traditional spring promotions on hold. Some parts of the country may see regional promotions, however.

Toyota insists it's not in danger of running out of Priuses. It is said to have about 12,250 in its U.S. inventory, 43,000 worldwide. That's about a 55-day supply.

Sirius XM Radio face an antitrust class action claim that it runs a monopoly to the tune of $89 million a year through small increases in fees and services for its nationwide satellite radio service.

A federal judge in New York granted class-action status for a group of plaintiffs alleging anti-trust violations but denied certification for other groups charging breach of contract and violation of consumer protection laws. Judge Harold Baer Jr. also denied a motion for an injunction against the company.

The plaintiffs claim that since the July 2008 merger of Sirius and XM, which eliminated significant competition in the satellite radio market, Sirius XM has made multiple increases in the charges it levies on consumers, including:

• increase in the monthly charge per additional radio for multi-radio subscribers from $6.99 per month to $8.99;

• initiating a $2.99 monthly fee for internet streaming;

• charging a “U.S. Music Royalty Fee” between 10% and 28%; and

• increases in various administrative fees.

The plaintiffs allege that these price increases are the result of Sirius XM's abuse of monopoly power, while the company claims that the price increases simply reflect increases in its costs and the higher quality of service provided.

Contradicts a promise

If true, the allegations would contradict pre-merger promises made by Mel Karmazin, who was CEO of Sirius and later became CEO of the combined company.

"No consumer will pay more than what they pay now," Karmazin said at a National Press Club appearance in July 2007. Then-XM Chairman Gary Parsons agreed, saying in a press statement that "the merger would enable us to deliver more choices and lower prices for consumers."

Rate increases are not the only source of complaints about Sirius XM. One of the more perplexing comes from Joseph of N. Massapequa, NY, who told ConsumerAffairs.com he bought a "lifetime" subscription to Sirius in March 2009 and was told that he would be able to transfer the membership when he bought a new vehicle.

So when Joseph bought a new 2011 Hyundai Sonata that came equipped with XM Radio, he assumed he would be able to use his "lifetime" subscription to Sirius, since the two companies had merged.

"Boy, was I wrong!" Joseph said. "The customer service woman assisting me was lovely. But did explain to me that Sirius lifetime subscriptions ($400.00) could not be transferred to a XM Radio vehicle. …I escalated this to a manager and they also would not budge."

Most other consumer beefs about Sirius XM revolve around unexpected renewals.

"Itried to cancel my service, with no luck. My credit card information was out of date and should not have been put through. Sirius changed the good through date to 2011 ( which is not the correct year) and put the charge through anyway," said Mark of Lawrenceville, GA.

There's not enough evidence that artificial food coloring causes hyperactivity in children, according to a U.S. Food and Drug Administration (FDA) advisory panel that probed the issue last week.

As a result, the panel declined to recommend that the FDA require warning labels on food products containing synthetic dyes. Though the FDA is not required to follow an advisory panel's advice, it usually does.

The food dye review was triggered by petitions from the Center for Science in the Public Interest and other groups that argued the presence of artificial colors in foods was a major contributor to the increase in behavioral disorders in children.

'No useful value'

CSPI maintains that Red 40, Yellow 5, Yellow 6, and other dyes have no useful nutritional or preservative value, claiming their only function is cosmetic, making colorless food more attractive.

The food industry hailed the decision.

"The safety of artificial colors has been affirmed through extensive review by the Food & Drug Administration, via the food additive review process, and the European Food Safety Authority (EFSA) and neither agency sees the need to change current policy," the Grocery Manufacturers Association said in a statement.  "All of the major safety bodies globally have reviewed the available science and have determined that there is no demonstrable link between artificial food colors and hyperactivity among children."

GMA said its member companies devotes "enormous resources" to making sure its products are safe, and continuously review and monitor scientific studies on the issue. Even so, at least one grocery chain is putting distance between itself and artificial food dyes.

Banned at Whole Foods

"In light of increased public awareness of and FDA hearings about artificial food dyes, Whole Foods Market reminds shoppers that its strict quality standards have prohibited artificial food colorings since the 1980s," the company said in a statement.

Whole Foods Market said it offers products that are not only free of artificial colorings, but also free of artificial sweeteners, preservatives, hydrogenated fats and other prohibited additives in the company's 304 stores.

"Our quality standards prohibit artificial colors because of our deep commitment to selling the highest quality natural and organic foods," said Joe Dickson, global quality standards coordinator. "Our shoppers rely on us to set high standards so they can shop with peace of mind, and artificial colors are not consistent with our vision for natural and organic food."

It could be the largest security breach in U.S. history. A virtual who’s who of U.S. companies have begun notifying consumers that their names and email addresses, held in a vast database, may be been illegally accessed.

What the companies, including Citigroup, Capital One, Kroger and Tivo, all have in common is doing business with Epislon, a provider of email marketing services.

“On March 30th, an incident was detected where a subset of Epsilon clients' customer data were exposed by an unauthorized entry into Epsilon's email system,” the company said in a statement. “The information that was obtained was limited to email addresses and/or customer names only. A rigorous assessment determined that no other personal identifiable information associated with those names was at risk. A full investigation is currently underway.”

Limited threat?

Affected companies began notifying their customers over the weekend that hackers may have accessed their email addresses, though there appears to be no way the hackers can actually access the accounts themselves.

“Capital One has been informed that the compromised files did not include any personally identifiable or customer financial information,” the credit card company said in a statement Sunday. “Capital One is actively investigating the incident and Epsilon is conducting its own comprehensive investigation in cooperation with the appropriate authorities.”

While consumers often receive spam emails sent at random, security experts say the ability of scammers to put names with email addresses may make these phishing expeditions more effective.

Ignore emails

“Customers are reminded to ignore emails asking for confidential account or log-in information and remember that familiar looking links in an email can redirect to a fraudulent site,” Capital One said. “If you get an e-mail that claims to be from us but you aren't sure, or you think it's suspicious, don't click any of the links.”

In warning its customers, Tivo sought to reassure them that the information, is actually obtained by unauthorized personnel, would not compromise sensitive data.

We were advised by Epsilon that the information that was obtained was limited to first name and/or email addresses only,” Tivo said. “Epsilon does not have access to service information or credit card details and all such personally identifiable information remains secure.”

Epsilon, a unit of Alliance Data Systems, sends out an estimated 40 billion email ads each year. Law enforcement authorities are said to be investigating how the breach occurred, and just how many names and email addresses might have been accessed.

The discovery of some slightly radioactive milk in Spokane, Wash., and San Luis Obispo, Calif., has rekindled fears that Americans will fall prey to harmful radiation from the damaged Japanese nuclear power plants.

But the U.S. Environmental Protection Agency and the Food and Drug Administration say amounts found so far have been "miniscule" compared to the levels of radiation consumers encounter everyday.

“Radiation is all around us in our daily lives, and these findings are a miniscule amount compared to what people experience every day. For example, a person would be exposed to low levels of radiation on a round trip cross country flight, watching television, and even from construction materials,” said Patricia Hansen, an FDA senior scientist.

State and local health officials agreed.

"I really want to reassure the public. It is safe to drink milk. It is safe to consume our dairy products," said Dr. Penny Borenstein of the San Luis Obispo County Public Health Department.

Increased monitoring

The EPA and FDA say they have increased the level of nationwide monitoring of milk, precipitation, drinking water, and other potential exposure routes but so far have found nothing of significance.

EPA conducts radiological monitoring of milk under its RADNET program, while the U.S. Food and Drug Administration has jurisdiction over the safety, labeling and identity of milk and milk products in interstate commerce. States have jurisdiction over those facilities located within their territory.

Results from a screening sample taken March 25 from Spokane, WA detected 0.8 pCi/L of iodine-131, which is more than 5,000 times lower than the Derived Intervention Level set by FDA.

These types of findings are to be expected in the coming days and are far below levels of public health concern, including for infants and children, the agencies said. Iodine-131 has a very short half-life of approximately eight days, and the level detected in milk and milk products is therefore expected to drop relatively quickly.

In what's being called a budget technopocalypse, Congress is cutting the funding for one of President Obama's pet projects, a group of websites intended to make government data more accessible to the public and show how federal funds were spent.

Congress is slicing funding for the eight sites from $34 million to $2 million, according to the Center For Public Integrity.

The affected sites include public sites like Data.gov, USASpending.gov, PaymentAccuracy.gov and five similar sites, as well as internal sites like FedSpace, an intranet site that's supposed to facilitate cross-agency collaboration and information sharing.

"The detrimental effect of [the budget cuts] on so many areas of government is clear—and perhaps no more so than on the efforts to ensure the government's IT infrastructure upgrades are proceeding on schedule and on budget," said Rep. Jose Serrano (D-N.Y.), ranking member of the House Appropriations Subcommittee on Financial Services and General Government, according to the Sunlight Foundation, which works for more openness in government..

"We cannot have a more streamlined, efficient and open government without using the best technology available. Unfortunately the cuts in H.R. 1 to e-government fund will have the unintended consequence of making government less accountable and transparent," he said.

Sunlight asked organizations and grassroots advocates to support its efforts by contacting their lawmakers to ask Congress to maintain current funding levels for these initiatives.

Other security efforts related to cloud computing, which would streamline security authorizations for federal agencies, are expected to be cut as well. Funding for some of the websites is expected to run out as early as April 20.

Eating fast food with a high fat content is never healthy, but having a cup of coffee along with it is even worse, according to researching writing in the Journal of Nutrition.

But why would coffee be unhealthy? After all, it has no fat and no calories, if you drink it black. That’s not the point, say researchers from the University of Geulph, in Ontario, Canada.

The unhealthy part is the caffeine, and what that does when it interacts with the fat. Even a healthy person’s blood sugar levels jump after eating a high-fat meal. But the levels are nearly off the chart when caffeinated coffee is added to the mix. (Read consumer complaints about fast food chains).

Can’t clear blood sugars

"The results tell us that saturated fat interferes with the body's ability to clear sugars from the blood and, when combined with caffeinated coffee, the impact can be even worse," said Marie-Soleil Beaudoin, a PhD student who conducted the study with U of G professors Lindsay Robinson and Terry Graham. "Having sugar remain in our blood for long periods is unhealthy because it can take a toll on our body's organs."

The study on a select group of healthy men found that drinking a high-fat cocktail spiked blood sugar levels an average of 32 percent. But the results showed blood sugar levels increased by 65 per cent compared to what they were when participants had not ingested the fat and caffeinated coffee.

An hour or two apart can be a problem

Not only that, the fat and the coffee didn’t necessarily have to be consumed at the same time. Researchers noticed the increase in blood sugar levels when the meal and the coffee were consumed an hour or two later.

"This shows that the effects of a high-fat meal can last for hours," said Beaudoin. "What you eat for lunch can impact how your body responds to food later in the day."

Typically when we ingest sugar, the body produces insulin, which takes the sugar out of the blood and distributes it to our muscles. But the researchers found that the fatty meal affected the body's ability to clear the sugar out of the blood.

The researchers say they believe the combination of fat and caffeine disrupts the communication between the gut and the pancreas, which could be playing a role in why participants couldn't clear the sugar from their blood as easily. Beaudoin says the results of the study are particularly important for people at risk for metabolic diseases and Type 2 diabetes.

Limit caffeine

"We have known for many years that people with or at risk of Type 2 diabetes should limit their caffeine intake,” she said. “Drinking decaffeinated coffee instead of caffeinated is one way to improve one's glucose tolerance.”

And it goes without saying, it’s best to avoid foods high in fat, especially if you are at risk for Type 2 diabetes.

Once-powerful Blockbuster, currently languishing in bankruptcy court, may soon fall into the hands of Dish Network Corp., which operates Dish TV and Echostar. Dish has submitted a bid for Monday's bankruptcy court auction of Blockbuster's asserts, as has takeover king Carl Icahn and assorted others.

Dish is the subject of nearly 3,000 consumer complaints to ConsumerAffairs.com, many concerning unexpected charges, contract disputes and disputed termination charges. That's nearly twice as many as DirecTV, which provides a similar service.

Hawa of Pullman, Wash., complained recently that he spoke to a Dish representative and insisted on a complete list of charges before signing up. When he received his first bill, there was an extra $49.99. A customer representative would say only that the charge was explained at the end of a long list of disclaimers.

Tim of Palm Bay, Fla., said he switched to Dish after more than 20 years of trouble-free but increasingly expensive service with DirecTV. He said the multi-room Dish installation was not what he ordered and after weeks of haggling, Dish finally sent a technician to install the missing equipment and levied three installation charges that he had not agreed to.

“In 20 years with DTV not one issue..within 3 weeks with DISH its been NOTHING BUT headaches, lies, additional charges, 'I'm sorry's,' nothing we can do...” Tim said.

It's not obvious what good a chain of has-been video-rental stores would be to Dish, which competes with DirecTV in the satellite TV market. The Wall Street Journal speculated that Dish TV chief Charlie Ergen thinks the Blockbuster name would help Dish's video-on-demand service.

He's also reported to think that he could use the cobweb-ridden Blockbuster stores to sell Dish TV subscriptions, although skeptics asked why anyone would want to spend a lot of money on storefronts for something that can be – and is – sold cheaply online and through telemarketers.

Bids for the chain were due last night and are all expected to be around $290 million, the minimum needed to qualify. A second round will be held if no clear winner emerges.

The nation's unemployment rate dipped slightly in March to 8.8 percent, as the economy added more than 200,000 jobs during the month.

But despite the improvement, a new report says millions of Americans are struggling to make ends meet, and we're talking about people who have jobs.

A group called Wider Opportunities for Women (WOW) has developed a formula that suggests the average single worker needs to earn $30,012 a year - nearly twice the federal minimum wage - to cover basic expenses. Single parents require nearly twice the income ($57,756) to support two children, while dual-income households with children require $67,920. (Read consumer complaints about employment companies).

The poverty line

A family of four earning $22,050 a year is living below the federal poverty line. And many, in fact, are. Data from the U.S. Census bureau found 14.3 percent of Americans in that category in 2009.

"Too few American families are living in economically secure households, with most workers unable to stretch their incomes over basic expenses and savings," said Joan Kuriansky, WOW's Executive Director. "The American Dream of working hard to support your family is being re-written by the growth of low-paying industries and rising expenses."

Inflation and deflation

In other words, the U.S. is struggling against both inflation and deflation at the same time. Prices of commodities like gasoline and food are rising rapidly. Salaries - at least those outside certain industries like financial services and health care - are going down.

WOW's Basic Economic Security Tables for the United States report includes the comprehensive BEST Index that calculates the monthly income necessary for families to cover their basic expenses, including childcare, housing, health care, transportation, savings and retirement.

The report suggests things won't change anytime soon. The report finds that jobs created in the coming years will not provide economic security wages to the majority of workers who do not have four-year college degrees.

More low-paying jobs

Fewer than 13 percent of jobs the U.S. Department of Labor expects to be created by 2018 are likely to provide economic security to a single parent raising two or more children, the report says. A small majority of new jobs are expected to pay economic security wages for single workers without children, and approximately 43 percent of the new jobs will pay economic security wages for two workers raising two young children.

A single-parent with two young children requires an hourly wage of $27.35 an hour to cover childcare and other expenses.

"Quality, affordable childcare is becoming the greatest threat to many working families," Kuriansky said.