Current Events in July 2011

It's not a new problem. For several years now, glass top patio tables have been suddenly exploding into tiny pieces, usually when subjected to slight variations in temperature.

“On July 11, 2011 my patio table just shattered into pieces on our deck,” Patty, of Gallaway, Ohio, told ConsumerAffairs.com. “We were having a sprinkle of rain and while I was in the shower I heard an odd noise and when I came out my table glass was in a million pieces!”

Patty is far from the only consumer having this experience. Bonnie, of Flower Mound, Tex., says she purchased a Martha Stewart Patio set just last month.

“This week the glass top exploded!” she said. “I wish I had read all of these complaints prior to purchasing, but wonder why Home Depot, K-Mart, and Martha Stewart, allow these dangerous items to continue to be sold. We have a special needs son and it was a miracle that he was not harmed.”

Another consumer uploaded the video below to YouTube, saying their in-home security camera captured a glass table spontaneously shattering.

In 2005 a class action lawsuit was filed against the manufacturer ofthe glass top tables, but the company declared bankruptcy before the case could be heard.

In May 2009 Australia's Commissioner for Consumer Protection Anne Driscoll asked to hear from consumers who have been injured by glass topped tables that may have shattered spontaneously.

““Fracturing can occur in tempered or toughened glass table tops,” she said at the time. “Tempering causes them to implode into sugar pieces, rather than shards. There may be previous damage, not visible to the human eye, leading the tables to shatter at a later stage.”

Some toothpastes can affect sensitive gums more than others. Toothpaste is designed to be abrasive, to clean teeth and gums, so it's perhaps not surprising that some toothpastes with extra cleansing ingredients can cause problems for some people.

“I decided to purchase Aquafresh Iso Whitening Deep Penetrating toothpaste over my Sensodyne Iso whitening because it was $3.00 cheaper. Big mistake,” Caroline, of Clifton Springs, N.Y., told ConsumerAffairs.com. “I have been using it for three weeks now. My gums are sore and now my gums are turning white around the tooth area. I am also noticing some white spots on my gums. It is an obvious result of this toothpaste. They need to stop manufacturing and selling this product till they can address these issues.”

If it affected every consumer the way it does Caroline, obviously it would be withdrawn. The problem occurs when some consumers are overly sensitive -- or even allergic -- to a particular ingredient. It only affects them.  Caroline should definitely discuss the problem with her dentist and, in the meantime, go back to her old toothpaste, even if it is more expensive.

Been there, seen that

Newton, of Newport Beach, California, has a bone to pick with television and cable networks.

“Put yourself in the shoes of the TV consumer, which you are,” Newton said. “For some reason, it seems, that TV stations have adopted a programming strategy of repeats, repeats, and repeats. It’s not just a matter of repeating programs they have scheduled in the past, it’s obvious they repeat movies, for example, over and over and over on the same day. It seems to me that as a consumer, I am paying for the same product I have already paid for. In fact, it seems that I pay for the product many times over. Doesn’t this seem almost like fraud?”

 Well, Newton makes an interesting point. It does seem like there isn't much new programming when you turn on the tube, but networks, after all, have to fill 24 hours a day. From their perspective, they would probably argue that you are paying for the connection that delivers the multitude of channels, not individual programs. And of course, when it comes to over the air networks, you aren't really paying for that.

Waiting for medication

Businesses that provide health care benefits, including prescription medicine, look for every possible way to save money. Some exclusively use mail in pharmacies like Medco, meaning there can be a delay in getting a prescription filled. Phyllis, of Oklahoma City, Okla., thinks its too much of a delay.

“The refused to send my prescription after the doctor faxed it to them,” Phyllis said. “They waited 12 days to notify me of any problems. I have to monitor every prescription to see that they don't screw it up in some way.”

A local pharmacy is usually faster for the consumer. Employees that feel strongly about it should let their managers know their preference.

Too much information

Kirk, of Houston, Tex., reports an interesting encounter with AT&T and the response of his credit card company, Chase. Kirk said he began the online process of purchasing a $30 international phone card on the AT&T site. Later, he said he received a call from an AT&T representative.

“The representative asked for the last four digits of my Social Security number to confirm my credit card,” Kirk told ConsumerAffairs.com. “I told him that I would not give him that information to purchase a phone card. He said he could verify my card if we conferenced in Chase, my card issuer.”

Reluctantly, Kirk agreed and was soon on the three-way line with someone from Chase.

“The AT&T representative started asking various questions to verify I was the card holder,” Kirk said. “The Chase representative stopped the AT&T rep and said we will not give out any of the information on our card holder that you are requesting. Furthermore, she said as a merchant you do not need any of that information, only name, address, credit card number and phone number. Chase then directed me to not continue with this transaction as she felt it was unscrupulous.”

Kirk said he called AT&T to complain and relay the information from Chase, but was told that was AT&T policy. Still, it's gratifying to see Chase looking out for the privacy of one of their customers.

Just a few days after issuing tough new oversight procedures for banks, consumer advocate Elizabeth Warren appears before the House Committee on Oversight and Government Reform Thursday, for the second time this year, an appointment she would probably rather skip.

The last time Warren paid a visit, having come to answer questions about the creation of the new Consumer Financial Protection Bureau (CFPB), the hearing kicked off with subcommittee chairman, Rep. Patrick McHenry (R-N.C.) accusing Warren of lying.

It was the first of many attacks over the subsequent hour. For good measure, Rep. McHenry ended the meeting by telling Warren: “You're making this up.”

The Committee has titled the Round 2 affair: "Consumer Financial Protection Efforts: Answers Needed," indicating the gloves are sure to be off once more.

Why has Warren become the punching bag for Republicans and business interests looking to publicize their anger and frustration with consumer protection measures? 

The only thing they have to fear ...

It’s been suggested they're afraid of Warren, the outspoken Harvard law professor who first came to public notice back in 2000, when she published a study finding that half of Americans filing for bankruptcy were doing so because of medical bills and other problems arising from serious illness or injury – not because they had spent their earnings recklessly.

That study was published as Congress was considering a number of “reform” measures suggested by its patrons in the banking and financial services industries, measures that make it more difficult for consumers to seek bankruptcy protection.

More recently, Warren has been directing the set-up of the Consumer Financial Protection Bureau (CFPB), which she describes as a “cop on the beat” protecting consumers against predatory financial practices.

It is in that role that she yesterday issued the CFPB's approach to supervising large banks to ensure that they comply with new consumer financial protection laws, a process that will formally begin in just a week, on July 21.

Bank oversight

“The new consumer agency is here to make sure that markets work for American families, and our bank supervision program is a big part of that,” said Warren, whose official title is Special Advisor to the Secretary of the Treasury on the CFPB. “Starting on July 21, we will be a cop on the beat – examining banks and protecting consumers.”

Leading into the recent financial crisis, consumer financial protection authorities were spread among seven different federal agencies. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) streamlined consumer protection oversight authority into the CFPB – promoting greater efficiency and accountability for American consumers.

The consumer agency will conduct examinations to help ensure that consumer financial practices at large banks conform with consumer financial protection legal requirements. The CFPB’s bank supervision program will oversee the 111 depository institutions that have total assets over $10 billion. Subsidiaries and all other affiliates of these institutions also fall under the CFPB’s authority. These institutions collectively hold more than 80 percent of the banking industry’s assets.

Examiners will work throughout the country, managed out of satellite offices in Chicago, New York, San Francisco, and Washington, D.C., and will spend much of their time on-site at depository institutions and at other consumer financial services companies.

A large part of the CFPB’s supervision staff will be made up of experienced examiners: By the end of July, the CFPB supervision team will include more than 100 staff members transferring directly from the Federal Deposit Insurance Corporation, the Federal Reserve System, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision.

The CFPB expects eventually to have several hundred examiners on board, coming from a variety of backgrounds, including state regulatory agencies and industry. Experienced examiners will sharpen their skills in workshops before being deployed, and examiners new to consumer financial protection will receive extensive technical and professional skills training, the agency said.

What happens next?

In this video, supplied by the CFPB, Warren talks about what is next on the agency's agenda.

Sen. John D. (Jay) Rockefeller IV (D-W.Va.) has revealed the findings of a yearlong Senate Commerce Committee staff investigation into a nationwide epidemic involving mystery fees being placed on consumers’ landline telephone bills without their knowledge or consent.

The investigation shows that this practice could be costing Americans $2 billion a year, that the nation’s largest telephone companies are profiting from it, and that third-party landline telephone billing has largely failed as a legitimate method of payment.

“This report is a stark picture of a billing system that is hurting consumers and making profits for phone companies,” Rockefeller said. “Despite industry promises to end this fraudulent practice years ago, hundreds of third-party billing companies have continued to place unauthorized mystery charges on consumers’ phone bills for services they do not want or use. In exchange, they reap tens of millions of dollars a year in profit.

"This fraud against millions of American consumers, businesses and even government agencies is utterly reprehensible. It’s time for us to take a new look at this problem and find a way to solve it once and for all,” Rockefeller said.

Year-long probe

In May 2010, Rockefeller launched the Committee’s investigation into third-party billing on landline phones because consumers had complained for years that they were finding mysterious fees on their bills for services they didn’t know about or authorize. To understand the scope and the severity of this problem, commonly referred to as “cramming,” the Commerce Committee conducted a wide-ranging investigation over the past year.

The Commerce Committee is holding hearings today (Wednesday) to further examine reports of cramming and how Congress can react.

Key findings

The Committee's key findings include:

• Third-party billing is a billion dollar industry. On a yearly basis, telephone companies place approximately 300 million third-party charges on their customers’ bills, which amount to more than $2 billion worth of third-party charges on telephone bills every year. Over the past five years, telephone companies have placed more than $10 billion worth of third-party charges on their customers’ landline telephone bills.

• Most third-party charges appear to be unauthorized. The evidence obtained through the investigation overwhelmingly suggests that a large percentage of these charges are unauthorized cramming charges.

• Telephone companies profit from cramming. Over the past decade, telephone companies have generated well over $1 billion dollars in revenue by placing third-party charges on their customers’ telephone bills. Over the past five years, AT&T, Qwest and Verizon have earned more than $650 million through third-party billing. Verizon explained that it “receives a flat fee between $1 and $2 per charge for placing third-party charges” on its customers’ bills. Because telephone companies generate revenue by placing third-party charges on their customers’ bills, telephone companies profit from cramming.

• Cramming affects every segment of the landline telephone customer base. Unauthorized third-party charges harm residences, small businesses, nonprofits, corporations, government agencies, and educational institutions. The Committee has accumulated thousands of examples of cramming on nonresidential telephone bills.

• Many third-party vendors are illegitimate and created solely to exploit third-party billing. Committee investigators have found third-party vendors operating out of post office boxes, fake offices, and apartments, with “presidents” that know nothing about their “companies.”

• Telephone companies are aware that cramming is a major problem on their third-party billing systems. Over the past five years, more than 500,000 customers have contacted Qwest, Verizon and AT&T and to complain about cramming.

• Telephone customers often reported negative experiences when seeking assistance from their telephone companies. Consumers and businesses frequently reported that the telephone companies’ sales representatives provided little to no assistance when they called about unauthorized third-party charges.

• The telephone companies’ anti-cramming safeguards have largely failed. Telephone companies have inaccurately used low complaint statistics to show cramming is not a problem and to prove that their customers appreciate the convenience of third-party billing.

Ohio Attorney General Mike DeWine is suing foreclosure rescue company Diversified Real Estate Consultants LLC (DREC), its affiliates, and its owner for multiple violations of Ohio consumer laws.

"This company continually misled consumers," DeWine said. "It charged substantial upfront fees for services and results that it promised but never delivered. It also encouraged homeowners to default on their mortgage loans, falsely stating that defaulting on their loans would help them get a loan modification. Such statements are completely false and caused homeowners to risk losing their homes."

According to DeWine's lawsuit, DREC is a Florida registered company operating from Ohio that offered mortgage assistance relief services to Ohio consumers, even though it never registered to do business in Ohio.

DREC charged and accepted fees of $500 to $3,495 from homeowners, promising them reduced monthly mortgage payments or better interest rates, and represented a "100% money-back guarantee." Despite the company's claims, consumers received no help and no refunds. 

The Ohio Attorney General's Office currently has 37 total complaints against DREC dating back to 2009. Of those complaints, 18 are unresolved, including seven complaints from Ohio consumers. In the 18 unresolved complaints, consumers reported total losses of more than $36,000.

In addition to DREC, the lawsuit names defendants DREAM Management USA (DREAM) and Precision Processing Solutions International LLC (PPSI) – Ohio companies that provided DREC research, analysis, and documentation processing services, in direct connection with DREC's mortgage relief assistance services. The suit also names North Canton resident Daniel J. DePasquale, owner and operator of DREC, DREAM, and PPSI.

The lawsuit charges the defendants with violations of Ohio's Consumer Sales Practices Act, Debt Adjusters Act, and Telephone Solicitation Sales Act. It seeks a declaratory judgment, injunctive relief, civil penalties, and full restitution for consumers.

DeWine reminded consumers never to pay upfront fees for help avoiding foreclosure or obtaining mortgage relief. By law, companies are prohibited from charging and accepting fees for mortgage assistance relief services until consumers receive and accept a loan modification offer from their lenders.

Complaints about Bunn coffeemakers springing leaks are not all that uncommon. In fact, ConsumerAffairs.com heard this week from Michelle, of Omaha, Neb., who expressed frustration with what she called the company's lack of response to her prioblem.

On Monday, July 4th I sent Bunn an email that while out of town for four days, my coffeemaker leaked on my counter top causing seepage in the seam and the Formica buckling as a result,” Michelle told ConsumerAffairs.com. “I have not even received the courtesy of a response. I have been in the retail industry for over 30 years and fully understand brand loyalty. I have even been on the buying end of appliances and a staunch advocate for Bunn, noting it is the best of the best.”

The coffeemaker leak develops after extended use and, as the video below demonstrates, can have a fairly simple, and inexpensive fix.

One word of caution: do-it-yourself repairs should only be attempted if you feel comfortable doing so, and only if the product warranty has expired. Working on any product that's still under warranty will void it. And of course, always unplug any electric device before trying to work on it.

It was just a few weeks ago that Volkswagen and Ford got low marks for initial customer satisfaction from J.D. Power and Associates but a new survey from Strategic Vision Inc. takes a vastly different view.

Based on customers' overall feelings about their cars, Volkswagen was No. 1 and Ford was second, tied with Honda and Nissan.

What explains the disparity?

The Power study measures initial problems with new cars – gadgets that don't work right, early problems with brakes and so forth. Strategic Vision looks at customers' overall feelings about their cars.

Volkswagen customers are an unusually loyal lot and this year they're especially enamored of the Golf, Jetta and Tiguan models. (ConsumerAffairs.com has been putting a Tiguan through its paces in grueling East Coast traffic since December with excellent reviews from everyone who's driven the sporty crossover).

More problems

While Ford owners reported more initial problems with their cars than the industry average, they still rated the cars' quality highly. Ford Mustang, Flex and F-150/250/350 pickup drivers were the most enthused.

“Ford—a quality leader in our study—innovated, and we who count problems discovered that Ford received a large number of complaints primarily about one thing, Sync.—an in-car connectivity system. Does that warrant their ‘tumble’ in some quality metrics?” Darrel Edwards, Ph.D., Chairman and Founder of Strategic Vision asked.

“Decades ago, we decided to measure ‘Quality’ from the ‘Total’ perspective of the driver/owner, because this is how people actually judge ‘Quality’ in terms of the decision to purchase or not,” said Edwards. “The number of complaints is considered, but there is absolutely justification—even requirement—for also considering the total positive experience created for the owner/driver.”

Edwards cites the Volkswagen Jetta and Hyundai Sonata—two vehicles that tied for leadership position of Total Quality in the Mid-Size Car Segment. Both vehicles had a higher incidence of owners reporting problems (30%) than the segment average (22%) which isn't a good start to a customer's perception of quality.

Negligible impact

However, the impact of those problems on the customer's perception of quality is negligible because very few customers (only 1 in 20) experience a ‘Serious’ problem, which is often fixed immediately at the dealership. Then, vehicle attributes from exterior styling to interior room combined with the emotional benefits delivered by the driving and ownership experience to create some of the highest perceptions of delight and love for their vehicle.

Volkswagen of America was rated the best Full-line Corporation in Strategic Vision’s study, now in its sixteenth year of gathering data from the total population of new car buyers. VW had three models (Golf, Jetta and Tiguan) that were Total Quality leaders, with attributes of Design and Exterior Styling that particularly impressed owners.

Buyers rated the following vehicles top in their segments:

Eveyone, it seems, has an opinion about what you should and should not eat. Diet books are nearly always best sellers and popular diets can influence consumer behavior, for better or worse.

You should always discuss any change in your diet with your doctor, but in narrowing down your options, wouldn't it be helpful to know what nutritionists and dietitians think about your proposed choice?

“Every day, Americans are flooded with information about how to lose weight and feel great fast,” said Marjorie Nolan of the American Dietetic Association (ADA). “While some of these products and programs offer sound nutrition information, others are gimmicks and can even be dangerous.”

To help consumers separate diet fads from healthy, science-based options, registered dietitians who are media spokespeople of the American Dietetic Association have reviewed 15 of the latest diet and lifestyle books. You can read the reviews here.

The reviewed books include:

• The 4 Hour Body: An Uncommon Guide to Rapid Fat–Loss, Incredible Sex, and Becoming Superhuman by Timothy Ferriss (Crown Archetype December 2010)
• The 17 Day Diet by Mike Moreno, MD (Simon & Schuster’s Free Press March 2011)
• The Amen Solution by Daniel G. Amen, MD (Crown Archetype February 2011)
• Cinch! Conquer Cravings, Drop Pounds and Lose Inches by Cynthia Sass, MPH, RD (Harper One January 2011)
• Clean & Lean Diet by James Duigan (Kyle Books January 2011)
• Crazy Sexy Diet: Eat Your Veggies, Ignite Your Spark and Live Life Like You Mean It! By Kriss Carr (Globe Pequot Press January 2011)
• The Dukan Diet by Pierre Dukan, MD (Crown Archetype April 2011)
• Full: A Life without Dieting by Michael A. Snyder, MD, FACS (Hay House January 2011)
• The Game On! Diet by Krista Vernoff and Az Ferguson (HarperCollins June 2009)
• Healthy Eating for Lower Blood Pressure by Paul Gayler with Gemma Heiser, MSc (Kyle Books February 2011)
• The Italian Diet by Gino D’Acampo (Kyle Books February 2011)
• Living Skinny in Fat Genes: The Healthy Way to Lose Weight and Feel Great by Felicia Stoler, DCN, MS, RD, FACSM (Pegasus Books January 2011)
• The New Sonoma Diet: Trimmer Waist, More Energy in Just 10 Days by Connie Guttersen, PhD, RD (Sterling Publishing Company January 2011)
• Prevent a Second Heart Attack by Janet Bond Brill, PhD, RD, LDN (Three Rivers Press February 2011)
• The Super Health Diet: The Last Diet You Will Ever Needby KC Craichy (Living Fuel Publishing February 2011)

The reviews are designed to give consumers a view of the dietary advice from a health care professional's perspective, along with a healthy dose of realism.

“It is important for consumers to achieve a healthy weight in a way that is safe and provides their bodies with the nutrition they need to thrive,” Nolan said. “There is no miracle cure or overnight plan for healthy weight loss.”

The U.S. Department of Transportation (DOT) today assessed a civil penalty against Atlantic Southeast Airlines (ASA) for violating rules protecting air travelers with disabilities.  The carrier was assessed a $200,000 civil penalty of which up to $75,000 may be used to improve its service to disabled passengers above levels required by DOT rules.

“Passengers with disabilities have rights and they have a right to be treated fairly and with respect by the airlines,” said U.S. Transportation Secretary Ray LaHood. “We will continue to take enforcement action when our disability rules are violated.”

The Air Carrier Access Act of 1986 requires airlines to provide assistance to passengers with disabilities in boarding and deplaning aircraft, including the use of wheelchairs, ramps, mechanical lifts or service personnel where needed. 

During June 2010, the DOT's Aviation Enforcement Office conducted a review and inspection at ASA’s Atlanta offices and airport operations of the carrier’s compliance with Department consumer protection requirements.  The Enforcement Office reviewed, among other things, disability-related complaints received by the carrier from January 2009 through May 2010.  That review revealed a number of violations of the rules requiring assistance to passengers with disabilities who use wheelchairs.

Of the $200,000 penalty, up to $35,000 may be used to relocate passenger lifts that have been acquired by ASA to airports that the carrier serves in order to supplement and improve enplaning and deplaning services.  Up to $40,000 may be used by the carrier to conduct audits and surveys to ensure that its employees are complying with the airline disability rules.

Baby Boomers contemplating retirement have revised their plans and expectations for retirement, a survey finds. Having weathered the Great Recession, most have defined a new retirement track and are pursing it.

"While the recession clearly had a financial and emotional impact, it was very encouraging to see that three out of five Americans 55 and older have remained hopeful for their future," said SunAmerica Financial Group President Jay S. Wintrob. "Americans are emerging from the experience with new knowledge, new discipline and have re-set their vision of an ideal retirement.”

For example, the survey, conducted by SunAmerica and Age Wave, says 81 percent of Americans say they have learned important lessons regarding retirement preparation in the past several years.

Course corrections

"They are course-correcting: intending to work longer, save more, spend less, be more disciplined and adjust their lifestyle expectations," Wintrob said.

The study found a significant shift in attitudes and actions since 2001, when SunAmerica conducted its initial landmark retirement study with Age Wave. Today, 54 percent view retirement as a new chapter in life, rather than a winding down, a significant increase over the 38 percent that held a similar view a decade ago.

Not surprisingly, more Boomers are postponing retirement. Those in their pre-retirement years say they now intend to delay retirement by five years, from 64 to 69, triggered in part by increasing longevity, as well as the recession and financial need.

Working through retirement

Even in retirement, more Boomers expect to keep on working. Nearly two-thirds say they would ideally like to remain productive and include some work in retirement to stay active and involved.

What's the key financial goal? Previously, it was accumulating wealth. Today, 82 percent are simply looking for financial stability and peace of mind.

What's behind the change? For one thing, disruption to retirement investments has reduced the financial resources that are available. Beyond that, the economic shocks to the economy have required many aging adults to provide financial assistance to children and grandchildren.

Nearly half of Americans 55 and older expect to provide this support and, in a new twist on childcare, 70 percent of those believe their adult children will need additional financial assistance in the future.

"Emerging from the recession, Americans are beginning to define retirement differently than previous generations of retirees," said Dr. Ken Dychtwald, gerontologist, founder and CEO of Age Wave. "Having been jolted by the last several years, Americans have adopted more realistic and pragmatic views of the possibilities before them. They now see retirement as a time for new priorities, new opportunities and new strategies for today's challenges."

Keith, of Salt Lake City, Utah, thinks he's getting a runaround from a motel chain or his credit card company, or both.

“I stayed at the Travelodge in Macclenny Fla., Keith told ConsumerAffairs.com. “The first week I paid cash but the next week I paid on my credit card. “Upon leaving I checked my credit card and they had overcharged me $446."

Keith said the motel manager said it wasn't his fault, that the mistake was made by his credit card company.

“I managed to get $178 reversed but for the rest my credit card company said I need a reversal form from the manager,” Keith said. “As yet they still are holding $268 of mine.

Keith says a week has gone by with no satisfaction from either party. Based on complaints we've received about other billing mistakes involving credit cards, getting it straightened out can be a lengthy process. It seems no one wants to return your money, once they have it.

Missed that recall

Some dishwashers, it turns out, can be fire hazards.

“The heating element in our GE Profile dishwasher overheated, even though the previous cycle had ended,” said Stephanie, of Cicero, N.Y. “Plastic lids, dishwasher rack and bottom spray arm were burned and melted. This dishwasher was installed October 2007 during construction.”

That could explain it. Some GE Profile dishwashers were recalled in 2007 because of a potential fire hazard.

Keep the box

Carol, of Detroit, Mich., says she bought an MP3 player at Target at the end of May and enjoyed it – for a little over a month, when it suddenly stopped workng.

“I took it back to the store that it was purchased from and they refused to take it back because it was not in the box that it came in,” Carol told ConsumerAffairs.com. “But since I had no intentions of returning it I didn't keep the box. I had my receipt and asked for the store manager he was horrible I will never shop there again.

Target has a reputation for having strict return policies and sticking to them. While no one likes to keep boxes and packing material around, it's a good idea to do so, at least for a couple of months.

Not falling for the scam

Jessica, of Rancho Cucamonga, Calif., is just one of the latest consumers to be targeted with the so-called “government grant scam.” She received a call from a woman named “Tracy” who said she was from the U.S. Grants Department. By the way, there is no such department.

“She informed me that I had been chosen to receive $7,000 of grant money because I have no criminal record, filed bankruptcy, and pay my bills,” Jessica said. “She provided me an approval number of and telephone number that I should call to get more information. I called; a lady answer the call and she kind of sounded the same as Tracy.”

Jessica was told to wire $215 to the U.S. Grants Department.

“I asked her why am I paying out of my pocket if I won $7000; why wouldn't they take it out the amount there giving me?” Jessica said.

Jessica hung up but then contacted us, just to make sure it was really a scam. It is, and she is only one of many potential victims it has targeted.

"How is the government giving away money when they don't have it?” she asked.

Good question. But then, it's never stopped them before.

Humans need to eat to stay alive, but it turns out we don't have to eat all that much. Most people can do quite nicely on 1,500 to 2,000 calories a day.

But most people in North America tend to consume a lot more than that, which may be why there's an “obesity epidemic.” Among those who are overweight or obese, some may actually be addicted to food, say Canadian researchers presenting their findings at the Society for the Study of Ingestive Behavior meeting in Clearwater, Fla.

Their research suggests that people can become dependent on good-tasting foods and engage in a compulsive pattern of consumption, similar to the behaviors of drug addicts and alcoholics.

Using a questionnaire originally developed by researchers at Yale University, a group of obese men and women were assessed according to the seven symptoms recommended by the American Psychiatric Association to diagnose substance dependence. The researchers simply replaced the word “drugs” with “food.”

Binge-eating disorder

Based on their responses, individuals were classified as food addicts or non-addicts. While food addicts did not differ from non-addicts in their age or body weight, they displayed an increased prevalence of binge-eating disorder and depression, and more symptoms of attention-deficit/hyperactivity disorder.

They also were characterized by more impulsive personality traits, were more sensitive or responsive to the pleasurable properties of palatable foods, and were more likely to self-soothe with food. 

“These results strongly reinforce the view that food addiction is an identifiable condition with clinical symptoms, and is characterized by a psycho-behavioral profile that is similar to conventional drug-abuse disorders,” the researchers wrote. “The results also deliver much needed human support for the growing evidence of sugar and fat addiction in experimental animal research.”

Americans who eat a diet high in sodium and low in potassium have a 50 percent increased risk of death from any cause, and about twice the risk of death from heart attacks, according to a study published today in the Archives of Internal Medicine.

The study was conducted by researchers at the Centers for Disease Control and Prevention, Emory University and Harvard University.

"The study's findings are particularly troubling because U.S. adults consume an average of 3,300 milligrams of sodium per day, more than twice the current recommended limit for most Americans," said Elena Kuklina, M.D., Ph.D., an investigator on the study and a nutritional epidemiologist with CDC's Division for Heart Disease and Stroke Prevention.

"This study provides further evidence to support current public health recommendations to reduce sodium levels in processed foods, given that nearly 80 percent of people's sodium intake comes from packaged and restaurant foods. Increasing potassium intake may have additional health benefits," Kuklina said.

The 2010 Dietary Guidelines for Americans recommends limiting intake of sodium to 1,500 milligrams per day for people 51 and older, African Americans, and those who have high blood pressure, diabetes, or chronic kidney disease—about half the U.S. population ages 2 and older.

The dietary guidelines recommend that all other people consume less than 2,300 milligrams of sodium per day. In addition, the guidelines recommend that people choose more potassium-rich foods, advising 4,700 milligrams of potassium per day.

Processed foods

Sodium, primarily consumed as salt, is commonly added to many processed and restaurant foods, while potassium is naturally present in many fresh foods.

For example, cheese, processed meats, breads, soups, fast foods, and pastries tend to have more sodium than potassium.

Yogurt, milk, fruits and vegetables tend to have less sodium and more potassium. Potassium-rich fruits and vegetables include leafy greens, such as spinach and collards, grapes, blackberries, carrots, potatoes and citrus fruits such as oranges and grapefruit.

In general, people who reduce their sodium consumption, increase their potassium consumption, or do both, benefit from improved blood pressure and reduce their risk for developing other serious health problems.

Adults can improve their health by knowing recommended limits for daily sodium intake, choosing foods like fresh or frozen fruits and vegetables, and unprocessed or minimally processed fish, meat or poultry, low-fat milk or plain yogurt, asking for foods with no or low salt at restaurants, and reading the nutrition labels of foods before purchasing can improve health for all adults.

First such study

This is the first study to examine, using a nationally representative sample, the association between mortality and people's usual intake of sodium and potassium. The study analyzed data from the National Health and Nutrition Examination Survey (NHANES), a survey designed to assess the health and nutritional status of adults in the United States. Usual intake of sodium and potassium is based on dietary recall.

CDC is working with public and private-sector partners at the national, state, and local levels to educate the public about the health effects of sodium and to reduce sodium intake. The agency is also enhancing the monitoring of sodium intake and expanding the scientific literature on sodium and health.

Munching more unprocessed plant foods may help keep the middle-aged bulge away, a new study suggests. On the other hand, meat, french fries and sugar-sweetened drinks can help pack on the pounds.

The findings suggest that the types of food you choose, not just calories, are important for avoiding age-related weight gain.

The Harvard School of Public Health researchers suggest that highly processed foods may not satisfy hunger as well as less processed, higher fiber foods, causing a higher total intake of calories.

“The idea that there are no ‘good’ or ‘bad’ foods is a myth that needs to be debunked,” said Dr. Frank Hu, co-leader of the study.

Hu said weight gain results from an imbalance between how much energy you take in and how much you expend. Even small amounts of excess weight can increase your risk for disorders such as diabetes, cardiovascular disease, metabolic syndrome and cancer.

In their study, Hu and Dr. Dariush Mozaffarian sought to gain insights into the changes in people’s lifestyles that lead to gradual, long-term weight gain. Their work was partially funded by National Institutes of Health (NIH).

Lifestyle changes

The researchers found several general lifestyle changes linked to weight gain over a 4-year period.

• Participants who increased their physical activity gained less weight than those who didn't. However, only increases in activity during the period produced this result; absolute levels of physical activity weren't associated with weight change.

• People who slept for less than 6 hours a day or more than 8 hours gained more weight.

• Increases in TV-watching led to an average gain of about a third of a pound for every hour of TV watching per day.

Food choices

Food choices also affected weight.

• Potato chips, sugar-sweetened drinks, processed meats and unprocessed red meat were each linked to weight gain of about a pound or more.

• Eating more french fries led to an average gain of over 3 pounds.

• Eating more refined grains and sweets or desserts led to about half a pound of weight gain.

• By contrast, eating more vegetables, whole grains, fruits, nuts and yogurt was linked to reductions in weight over a 4-year period. Yogurt led the pack, with an average of 0.82 pounds of weight lost.

The team followed the lifestyle and dietary habits of 3 large groups of health professionals, totaling over 120,000 people, for 12 to 20 years. Participants completed a biennial survey detailing their physical activity, television habits, alcohol use, sleep duration and diet. Their weight was measured every 4 years. The study appeared in the June 23, 2011, issue of the New England Journal of Medicine.

This was an observational study, in which people were asked to recall the foods they ate. While the findings are compelling, future controlled studies will be needed to confirm whether eating particular foods can affect long-term weight gain more than simply counting calories.

Americans’ medicines are increasingly manufactured in developing countries, where there is less oversight than in the U.S., according to a new white paper by the Pew Health Group. 

The U.S. Food and Drug Administration (FDA) estimates 40 percent of finished drugs and 80 percent of active ingredients and bulk chemicals used in U.S. drugs come from overseas.

The white paper finds that increased outsourcing of manufacturing, a complex and globalized supply chain and criminal actors create the potential for counterfeit or substandard medicines to enter the supply chain and reach patients. 

For economic reasons, the migration of manufacturing abroad is likely to continue.  But industry and government agencies have failed to adapt to the changing environment, the report finds

“Today’s prescriptions are being produced under last century’s oversight,” said Allan Coukell, director of medical programs at the Pew Health Group.  “Compared with a decade ago, pharmaceutical supply lines stretch around the world and out to a complex web of suppliers.

"Regulators and industry must modernize supervision of the manufacturing process to ensure the drugs we consume are safe.  The After Heparin white paper indentifies links in the supply chain that government and business should strengthen,” Coukell said.

Substandard or adulterated pharmaceutical materials from abroad have entered the U.S. on multiple occasions. In addition, the risks of domestic counterfeiting and diversion of stolen drugs are well documented.

The white paper presents several case studies, including incidents involving heparin, a blood thinner adulterated during its manufacture in China, counterfeit vials of the anemia drug Epogen and stolen vials of insulin to illustrate the threats and suggest solutions. 

You knew this was coming, right? The first of what will no doubt be a river of Casey Anthony-related scams is popping up on Facebook screens today.

"Breaking News!" screams the headline. "Leaked Video of Casey Anthony Confessing to Lawyer!" This, of course, is a fake. Whether it's a scam is debatable, although it is most certainly a hoax. It doesn't appear to do any harm to your finances or your computer but could be damaging to your reputation if you gullibly forward it to everyone you can think of.

But, you say, why couldn't it be real? Maybe Ms. Anthony really did tell her lawyer she killed her two-year-old daughter Caylee?  And the lawyer taped it?  And put it on Facebook?

Well, not to put too fine a point on it, even if the conversation had occurred, would an attorney post a video of his client confessing to a crime after a jury had acquitted her?  Think the Bar Association's ethics committee would be pleased?

Eventually, those who click on the link will wind up being asked to take a survey that just might win them a $500 Toys R Us gift card. Each person who completes the survey enriches whoever posted the hoax, as they get paid a few cents each time a consumer completes the survey.

You don't really have to do anything to avoid looking foolish. Just don't click on the link – and don't "share" it with your far-flung friends, advises Web security firm Sophos.

Groupon says it will begin collecting more information about its users, allowing it to strike deals with advertisers that want to know where consumers are located. The company updated its privacy policy to its 83 million subscribers over the weekend.

The email explained that Groupon is trying to provide greater transparency about the data it collects and keeps. Groupon recently launched a mobile app that offers consumers special deals at businesses that happen to be close to the user's current location.

"If you use a Groupon mobile app and you allow sharing through your device, Groupon may collect geo-location information from the device and use it for marketing deals to you," the email said.

Redefines personal information

The privacy policy also broadens the definition of personal information to include "interests and habits." It said a partnership with travel site Expedia provides subscribers with travel discounts, but the offer means that personal information can be shared with Expedia if users choose to receive offers on travel.

In addition, Groupon said it will collect and share include relationship information, as well as data concerning finances and mobile locations.

The whole issue of tracking has been somewhat controversial, especially related to smartphones and web browsers. In February the consumer group Consumer Watchdog asked the  Federal Trade Commission to create a "Do Not Track Me" mechanism to protect consumers' online privacy and said such a mechanism must have the force of law behind it.

Privacy concerns

The nonprofit public interest group made the call in comments filed on The Federal Trade Commission's recent report, "Protecting Consumer Privacy in an Era of Rapid Change: A Proposed Framework for Businesses and Policymakers."

The Mozilla Firefox and Google Chrome Web browsers adopted a do-not-track tool in January. For the Mozilla tool to work, Web advertisers and tracking companies have to agree not to follow users who enable the do-not-track feature. The non-profit Mozilla Corp. says it will urge companies to "honor people's privacy choices."

Google said its Keep My Opt-Outs feature will let users permanently opt out of ad-tracking cookies.

Here we go again. The petroleum market appears to be completely out of sync, as oil prices are falling and retail gasoline prices, after going down for seven weeks, are rising again.

The national average price of self-serve regular today is $3.631 a gallon, up six and a half cents in the last week and up nearly four cents since Friday, according to AAA. The price of crude oil, meanwhile, is down nearly two percent on new concerns about the prospects for global economic growth.

The disconnect is between the retail market, where consumers purchase fuel, and the futures market where wholesalers refiners, and yes, speculators, purchase contracts to buy oil in the next few weeks. When the economic outlook is uncertain, or conventional wisdom turns on a dime, the futures market can be volatile.

The retail market is mostly based on what the individual gas stations had to pay for the gasoline. A gas station might boost prices by five cents a gallon or more in a single day if it has taken delivery of more expensive gasoline that day.

Trying to predict the future

Though it doesn't get as much press coverage as the oil futures market, there is also a futures market in gasoline, and it is interesting to see what is happening there. In today's trading, gasoline futures followed oil lower.

Gasoline for delivery in August fell nearly three and a half cents in early morning trading on the New York Mercantile Exchange. That means next month, wholesalers will take delivery of gasoline that costs less than it does right now. Presumably, the recent retail price hikes should retreat next month, when this cheaper gas enters the distribution pipeline.

But only if this present market trend continues for a few days. Today, investors are worried about European debt and the outlook for economic growth around the world. Those fears deepened Friday when the U.S. reported shockingly weak job growth for June.

But what happens if this week we were to get all sorts of good economic news, and data that suggested the economy was about to come roaring back? Most likely, both oil and gasoline futures would surge higher, meaning more expensive gasoline would enter the system next month.

For consumers, it a reason for confusion and perhaps a little cynicism. The cost of a fill-up seems to fluctuate with little rhyme or reason. They only know that the cost of gasoline was once a lot more stable than it is now.

A class action suit against Dell has been expanded to cover a myriad of failed hardware components in the Optiplex desktop computer. The suit charges that internal Dell documents show the failure rate for the Optiplex was rated at 97%.

Documents from that case, unsealed in November of last year, showed that Dell allegedly not only knew of the problems, but had ranked customers by importance when deciding whether their faulty systems would be replaced.

The lawsuit had initially charged that the Optiplex desktop computers had faulty motherboards and capacitors, causing them to fail prematurely. Court documents alleged that 8 million of 11.8 million units sold had defective motherboards.

The Seattle law firm Hagens Berman LLP now charges that a number of other components, including hard-disk drives, power supplies, fans, chipsets and RAM, may also be defective.

The case was originally filed in August 2010 on behalf of New York chiropractor Richard Statler, who said he bought five Optiplex computers that turned out to have defective motherboards, wreaking “expensive and wasteful” havoc in his office.

More problems

Hagens Berman is not the only law firm that's hot on Dell's trail.  ConsumerAffairs.com heard from a St. Louis law firm that has had multiple Optiplex failures.

"Our firm owns several Dell Optiplex computers, which have suffered capacitor failures," an attorney the Simon Law Firm PC told us.  The firm said it is considering litigation.

A Montgomery, Ohio, consumer had a similar experience:  "I had bought two Dell Optiplex SX280 computers for home use, and just last year, when the community sponsored an electronics recycling event, I dropped them off to be recycled. There had been too many problems and both machines eventually died," the consumer said.

Hagens Berman lost one round in court earlier this year when U.S. District Court Judge Leonard Wexler dismissed claims for unjust enrichment and allegations that the computers constituted a safety hazard.

However, Wexler did allow two warranty-related claims to stand, allowing the firm to argue that Dell's alleged concealment of the problems voided its claim that the warranties on the machines had expired.