Current Events in August 2011

Apple hasn't been making much news lately, but that hasn't stopped the rumors. In fact, it may have fed them.

The latest hot rumor is that Apple will make a version of its yet-to-be-announced iPhone 5 for Sprint/Nextel. The Wall Street Journal was first to report the rumor, based on sources. Analysts were quick to say the move would make sense for both parties.

Apple has already seen the benefits of adding Verizon Wireless as a carrier, selling 4.6 million iPhones to Verizon subscribers in six months. Technology analyst Gene Munster of Piper Jaffray estimates Sprint/Nextel customers would buy six million iPhones in the first year of availability.

CNET chimed in with the opinion that adding the iPhone to its offerings would almost certainly require Sprint/Nextel to end its unlimited data plan, as AT&T and Verizon have done.

The deal would also make a lot of sense for Sprint/Nextel, which will need some kind of advantage if the AT&T acquisition of T-Mobile is allowed to go through. Sprint/Nextel would become a small number three carrier behind AT&T and Verizon.

Cheaper iPhone 4?

The Sprint/Nextel hook-up is not the only iPhone rumor this week. It's also being reported that Apple is considering production of a cheaper iPhone 4.

When the iPhone 4 debuted a year ago, the iPhone 3GS – the model it replaced – was repackaged and sold for $49 with a two year service plan. Reuters reports Apple would follow the same formula with the iPhone 4, reducing the memory to 8GB.

That, of course, is all contingent on there being an iPhone 5. No one on the planet doubts that there will be, but the biggest rumor of all concerns when that product might launch and what it will look like. In the past, Apple has introduced new product in late June or early July, but those months passed without an iPhone 5.

Consensus opinion is that the launch will take place in October. The people at Apple, of course, are the only ones that know but they aren't talking – saying they never comment on rumor or speculation.

There's a dangerous new spam email making the rounds, disguised as a traffic ticket from the state of New York. Those who follow its instructions and click on the attachment will download malware to their computer.

The email has the eye-catching subject line “Uniform Traffic Ticket.” The body of the email says a hidden camera clocked you speeding in New York City at 7:25 AM on July 5, 2011.

But you weren't anywhere near New York City on July 5. Then again, maybe you were. In either event, the email is designed to spark your fear, anger or curiosity enough to make you want to get to the bottom of this.

Attachment launches a virus

The message concludes by instructing you to print out the email's attachment and send it to court. And, if you don't know better, you just might do it.

“The attached file, called Ticket-O64-211.zip, contains a malicious Trojan horse, designed to download further malicious code onto your computer and compromise your security,” said Graham Cluley, senior technology consultant at Sophos, a software security company.

The address on the email is @nyc.gov, but that's simply an alias, designed to increase the credibility of the message. Cluley says his company's anti-virus products identified the malware as Mal/ChepVil-A and the Trojan as Troj/Invo-zip.

Make sure you are protected

“Users of other anti-virus products would be wise to check that they are protected, as this attack is being aggressively spammed out right now,” Cluley wrote in his blog.

By downloading a Trojan, a computer user opens their machine up to being remotely controlled by a hacker. The hacker can use it as a “zombie” computer, sending out millions of other spam messages. It can also log key strokes, allowing the hacker to steal passwords and gain access to bank and other types of accounts.

New consumer protections for airline passengers  go into effect today, and should make flying more convenient and hassle-free for air travelers.

The new consumer protections, finalized by the U.S. Department of Transportation (DOT) earlier this year, include requirements that airlines refund baggage fees if bags are lost, increase compensation provided to passengers bumped from oversold flights, and provide passengers greater protections from lengthy tarmac delays.   

“The Obama Administration believes consumers have the right to be treated fairly when they fly,” U.S. Transportation Secretary Ray LaHood said.  “The Department of Transportation's new passenger protections will help ensure that air travelers receive the respect they deserve before, during and after their flight.”

Effective today, airlines will be required to refund any fee for carrying a bag if the bag is lost.  Airlines are already required to compensate passengers for reasonable expenses for loss, damage or delay in the carriage of passenger baggage. 

Under the new rules, airlines must now prominently disclose all optional fees on their websites, including but not limited to fees for baggage, meals, canceling or changing reservations, or advanced or upgraded seating. 

Being bumped

The new rules also double the amount of money passengers are eligible to be compensated for in the event they are involuntarily bumped from an oversold flight.  Previously, bumped passengers were entitled to cash compensation equal to the one-way value of their tickets, up to $400, if the airline was able to get them to their destination within a short period of time (within 1 to 2 hours of their originally scheduled arrival time for domestic flights and 1 to 4 hours for international flights). 

If they were delayed for a lengthy period of time (more than two hours after their originally scheduled arrival time for domestic flights and 4 hours for international flights), they were entitled to double the one-way price of their tickets, up to $800. 

Under the new rule, bumped passengers subject to short delays will receive compensation equal to double the one-way price of their tickets, up to $650, while those subject to longer delays would receive payments of four times the one-way value of their tickets, up to $1,300.  Inflation adjustments will be made to those compensation limits every two years. 

Tarmac delays

The Department of Transportation’s new rule also expands the existing ban on lengthy tarmac delays to cover the international flights of foreign airlines at U.S. airports, and establishes a hard four-hour time limit on tarmac delays for all international flights at U.S. airports. 

It also extends the three-hour tarmac delay limit for domestic flights, currently in place only at large-hub and medium-hub airports, to flights at small-hub and non-hub airports as well. All carriers subject to the tarmac rule will be required to report lengthy tarmac delays to DOT.  In all cases, exceptions to the time limits are allowed only for safety, security or air traffic control-related reasons.  

Carriers must also ensure that passengers stuck on the tarmac are provided adequate food and water after two hours, as well as working lavatories and any necessary medical treatment.  

Other measures

Additional measures under the new rule will take effect January 24, 2012, including:

·        Requiring all taxes and fees to be included in advertised fares.
·        Banning post-purchase price increases.
·        Allowing passengers to hold a reservation without payment, or to cancel it without penalty, for 24 hours after the reservation is made, if the reservation is made one week or more prior to a flight’s departure date.
·        Requiring disclosure of baggage fees when passengers book a flight.
·        Requiring that the same baggage allowances and fees apply throughout a passenger’s journey. 
·       Requiring disclosure of baggage fee information on e-ticket confirmations.
·        Requiring prompt notification of delays of over 30 minutes, as well as cancellations and diversions.

If you work for a small business and have health insurance through your company, chances are both you and your employers are overpaying for health coverage.

That's the conclusions of a researchers James Rebitzer of Boston University School of Management, and Mark Votruba and Randall Cebul, both at Case Western Reserve University’s Weatherhead School of Management, and Lowell Taylor of Carnegie Mellon University.

In a paper published in American Economic Review, they highlight the difficulties small employers have in searching for health insurance. Those difficulties, they contend, increase average health insurance premiums paid by small businesses by 29 percent. Naturally, where employees pay a portion of their health benefits, their premiums are also higher.

High plan turnover

When the four researchers began taking insurance markets’ vital signs a few years ago, one fact particularly captured their attention: small employer groups changed plans very frequently. This turnover was something of a puzzle.

“If markets are competitive, plans of similar value should be offered at similar prices,” said Votruba. “It’s costly to switch plans, so if employers are switching plans all the time, it suggests that something is impeding competition.”

The problem, they concluded, stemmed from an inability to easily comparison shop the different plans, a phenomenon economists refer to as “search frictions.”

Search frictions arise whenever consumers are unable to easily compare all the options available to them in the marketplace. This, Votruba, Cebul, Rebitzer and Taylor argue, is exactly the case for purchasers of individual and small group health plans.

Confusing options

"Consumers have hundreds, sometimes thousands, of different options, and each plan has its own unique set of benefit details,” Votruba said. “In this complex environment, it’s hard for consumers to find the plan that offers them the best value. What our paper shows is that this 'shopping problem' has important implications for how market competition plays out. If consumers have a hard time evaluating value, competition becomes less about value, and more about marketing."

Part of the problem stems from the fact there are very few sources of objective information and analysis of various health plans. Most experts who can provide this information are usually trying to sell their own plan.

No need for competition

How this works against consumers, the researchers say, is that all the companies selling health insurance can be less competitive and charge higher rates. Instead of competition forcing all insurers to offer similar plans at a similar low price, frictions enable many insurers to profitably pursue high margin/low volume strategies.

The net effect is that consumers end up paying more for their health insurance – 29 percent more on average in the small group market – and insurers spend more on marketing.

Because it's hard to find objective information about plans, employers are never quite sure they are getting the best deal. That can lead to frequent changes, as businesses drop one plan and go with another.

"High turnover rates undermine the quality of health plans by reducing insurers’ incentive to finance care that makes their policyholders healthier in the future," Cebul said. "Why spend money on wellness or disease management programs – programs which yield a return on investment only after several years – for a policyholder who probably isn’t going to stick around long?"

Many widely prescribed stomach acid-reducing drugs can cause long-term dependence and should carry the strongest possible warning label, Public Citizen told the U.S. Food and Drug Administration (FDA) in a petition sent today.

The drugs are proton pump inhibitors (PPIs), so-called because of the mechanism they use to shut off the production of stomach acid.

PPIs are one of the most widely used classes of drugs in the United States, with 119 million prescriptions dispensed in 2009 and $13.6 billion in U.S. sales. An estimated 1 of every 20 people in the developed world is taking the medications, which include Nexium, Dexilant, Prilosec, Prilosec OTC, Zegerid, Zegerid OTC, Prevacid, Prevacid 24-Hr, Protonix, Aciphex, Vimovo and numerous generic counterparts, most prominently omeprazole and pantoprazole.

“These drugs are being prescribed far too commonly to people who shouldn’t be taking them,” said Dr. Sidney Wolfe, director of Public Citizen’s Health Research Group. “As a result, millions of people are needlessly setting themselves up to become dependent on PPIs while exposing themselves to the serious risks associated with long-term therapy."

"The FDA should act immediately to ensure that patients and physicians are adequately warned of these effects, and reminded of the many safer alternatives for common conditions such as acid reflux,” Wolfe said.

PPIs are approved to treat gastroesophageal reflux disease (GERD) – sometimes referred to as acid reflux – as well as gastric ulcers, erosive esophagitis and stomach bleeding associated with using non-steroidal anti-inflammatory drugs (NSAIDs).

But evidence shows that after using PPIs for a month or more, patients who stop taking the drug make even more stomach acid than before they started the drug, a phenomenon known as rebound acid hypersecretion, which causes acid reflux symptoms to return even worse than before therapy.

The symptoms prompt patients to begin taking the PPI again, creating a long-term dependence on these drugs, particularly worrisome for the large number of patients who did not even need the drugs in the first place.

As Dr. K.E. McColl, a leading Scottish researcher on adverse effects of PPI use, recently concluded, “The current finding that these drugs induce symptoms [after withdrawal] means that such liberal [mis-] prescribing is likely to be creating the disease the drugs are designed to treat and causing patients with no previous need for such therapy to require intermittent or long-term treatment.”

Serious risks 

In addition to creating dependency, PPIs increase the risk for several serious conditions, including fractures of the hip, spine and wrist; an increased risk of serious infections such as pneumonia and C. difficile diarrhea; and severe magnesium deficiency, which can cause life-threatening cardiac arrhythmias.

PPIs also may reduce the effectiveness of other drugs used to treat heart attacks and cancer, and in some cases, can cause vitamin B12 deficiency and kidney failure. Although some of these side effects already are mentioned somewhere in the labels (not the case for the dependence), none – including those that are life-threatening – are displayed prominently as black box warnings, the strongest possible warning.

Therefore, physicians may not be aware of the serious risks associated with PPI therapy, resulting in a large number of unnecessary prescriptions. Studies have shown that up to two-thirds of all people taking PPIs do not even have a condition that the drugs are designed to treat,and the drugs are often taken for much longer periods of time than they are approved for.

In addition, PPIs are commonly prescribed for conditions such as acid reflux that could be treated with safer alternatives that are often just as effective.

When Hewlett-Packard (HP) announced it was discontinuing its TouchPad tablet computer and slashed the price by 75 percent, it set off a stampede at retailers not unlike a post-Thanksgiving “Black Friday.”

And just like there are every Black Friday, there are plenty of unhappy consumers.

It's being widely reported today that consumers trying to purchase a $99 TouchPad online at Barnes & Noble got confirmations of their purchases, only to receive emails later telling them their order couldn't be completed. In truth, it was much the same story at other stores, both online and brick and mortar, as stores quickly sold out.

“I am able to place a new order any time, but there is no $99 deal any more,” Lei, of Terre Haute, Ind., told ConsumerAffairs.com, describing her experience at Walmart.com. “I could have bought one at $99 from other stores, but I didn't because they sent me a confirm email, making me think I successfully bought one. I missed this great opportunity because of their mistake.”

Confusion

Even people who showed up in person at stores, rather than take a chance of buying online, had similar frustrations. James, of San Diego, said he arrived at an Office Depot 30 minutes before it opened on Saturday and was first told the $99 tablets were “first come, first served.” Then, he said the store manager told him he had two TouchPads in stock, but they were on “hold” already.

“I stayed in my car right outside the store to make a phone call to any other Office Depots,” James said. “Five minutes before opening, another manager opens the door and tells two customers outside who came 15 min after me, 'I have two HP Touchpads left and you are the first two in line. After hearing this I asked the manager if those were on hold, and she replied that you can not put items on hold. I did not appreciate the lack of communication between the two managers.”

Finally, consider the plight of Derek, of Chatsworth, Calif. Derek said he ordered a TouchPad last week before HP cut the price, paying full price of $434. His credit card was charged and he was told he could pick up the tablet at a nearby Best Buy. But when he got there, there was no TouchPad waiting for him.

“Apparently they liquidated the item that morning and did not know what to do about my order,” Derek told ConsumerAffairs.com.

Derek said, not only did he not get a TouchPad, at any price, he still has a $434 charge on his credit card. 

Michigan Attorney General Bill Schuette has made it pretty clear he doesn't think much of the state's medical marijuana law, saying it is being abused by criminals.

Schuette, who took office last year, has drafted legislation to overhaul the law, making it strictly apply only to those who need it for medical treatment and not, as he contends, people who want to use the drug for recreation.

Different point of view

But some people in Kalamazoo seem to be moving in the other direction. City voters may consider a charter amendment instructing local police to treat marijuana offenses as the least important violation of law. In a letter to Michigan Gov. Rick Snyder, Schuette said the proposed charter amendment would have the practical impact of police not enforcing state law and likely cause lawsuits against the city.

"It is simply unfathomable that we would ask police officers to look the other way when a crime is being committed," said Schuette. "The amendment is illegal and will send the signal that random marijuana use is acceptable."

In the letter to Snyder, Schuette recommended that the Governor not approve the charter amendment, as is his option during the charter amendment review process prescribed in state law.

Citizens petition

The proposed amendment was not offered by Kalamazoo city officials, but rather is the result of a citizens petition process. Enough local signatures were obtained to place the amendment on the ballot.

But despite its democratic origins, Schuette said telling the local police force to de-emphasize certain crimes is not legal, since it undermines the power of local police to enforce state criminal laws.

Schuette said the practical impact of the amendment is likely to be that law enforcement simply does not enforce state law that makes it illegal for non-medicial marijuana patients and caregivers to be in possession of marijuana.

Immunization from prosecution?

This concern was also raised by the Kalamazoo City Attorney earlier this year when he said that passage of the petition could be seen as an attempt to extend the immunization from prosecution and law enforcement currently enjoyed by lawful medical marijuana patients and caregivers to the general population.

Schuette went on to note that if the proposed charter amendment is passed by local voters, the revision could indeed be challenged in court.

Does losing one's memory and ability to think clearly have to be part of aging? Obviously not, as there are plenty of people in their 90s who are as sharp as a tack.

So what accounts for some older people retaining their cognitive ability and others losing it?

Canadian researchers pondering that question have shed some new light on the subject. They have concluded that older adults who lead sedentary lifestyles and consume a lot of sodium in their diet may be putting themselves at risk for more than just heart disease. They say they have found evidence that high-salt diets coupled with low physical activity can be detrimental to cognitive health as you age.

The study by researchers Baycrest in Toronto and Institut Universitaire de Gériatrie de Montréal, may have significant public health implications, emphasizing the importance of addressing multiple lifestyle factors that can impact brain health.

Sodium's impact on the brain

"We have generated important evidence that sodium intake not only impacts heart health, but brain health as well," said Dr. Alexandra Fiocco, a scientist with Baycrest's Kunin-Lunenfeld Applied and Evaluative Research Unit (KLAERU) and the study's lead investigator.

While low sodium intake is associated with reduced blood pressure and risk of heart disease, this is believed to be the first study to extend the benefits of a low sodium diet to brain health in healthy older adults.

The study followed the sodium consumption and physical activity levels of 1,262 healthy older men and women (ages 67 – 84) residing in Quebec, Canada, over three years. The adults were recruited from a large pool of participants in the Quebec Longitudinal Study on Nutrition and Successful Aging (NuAge).

Limit sodium to 2.300 mg per day

Most public health experts suggest people 14 years of age and older consume no more than 2,300 mg of sodium per day in their diet. For the purpose of the study, low sodium was defined as being below that amount, while high sodium consumption was set at nearly 3.100 mg, of higher, per day.

Physical activity levels were measured using the Physical Activity Scale for the Elderly.

"The results of our study showed that a diet high in sodium, combined with little exercise, was especially detrimental to the cognitive performance of older adults," said Fiocco. "But the good news is that sedentary older adults showed no cognitive decline over the three years that we followed them if they had low sodium intake."

Is there anything worse than having your car stolen? Keobes, of Los Angeles, Calif., says there is. Having your stolen car recovered but not finding out about it for three weeks.

“My car was stolen July 12 from outside my house and I filed a police report right away,” Keobes told ConsumerAffairs.com.“ My car was recovered the next day but we were not notified. It took about three weeks for us to get a letter saying the car was at the local impound garage. I now owe over $1,800 in storage fees.”

If stolen car victims are notified by U.S. Mail that their property has been recovered, we can see how there could be a lengthy delay. And all the while, the meter's running. Doesn't seem quite fair, does it?

Sorry, no record of your call

Edward, of Denver, Colo., got tired of waiting for Qwest to come install TV service so he called Dish Network to see if they could do it any faster. Dish said they could.

“Dish also stated that I could sign up now and cancel anytime without charge up until the install date,” Edward said. “Four days later, Qwest came, I called and cancelled Dish Network. Dish even said no work order had been generated yet so all is good, no charge. Now a month from that Dish sends me a bill for services from the sign-up date to now and it's twice the 'introductory rate.' They find no record of a cancelation and the bill is due.”

These kinds of things seem to happen a lot. A customer service rep tells a consumer something that doesn't turn out to be true and there is no record of their conversation. Perhaps Edward should try suing Dish Network in small claims court in Denver. This little-used tool usually causes large companies to capitulate, or simply not show up.

Oops, our mistake. That'll be $199

Did you know that when you take your computer in for service at Best Buy, and perhaps many other stores, they aren't responsible if they wipe all your data. Laura, of Miramar, Fla., didn't know that before she took her laptop to Best Buy, but wishes she had.

“On August 4th when I picked the laptop from Best Buy, I was told that the laptop had no programs,” Laura told ConsumerAffairs.com. “ Also, that I needed to purchase the restore disk from Best Buy for $199.00 and they would install the programs on the laptop. I was shocked to hear that, so I told the customer service representative that the laptop was under warranty. At that moment, she explained to me that I should have made a back-up DVD with my programs before taking it in for service.”

It may not be a completely unreasonable policy, but Laura is right – consumers should be asked if they have backed up their system and data before leaving a computer. Charging $199 to reinstall the programs is just adding insult to injury.

No taste or smell

Two years after the U.S. Food and Drug Administration (FDA) issued a warning about certain Zicam cold remedy products, we're still getting disturbing reports from consumers.

“I was sick with sinus congestion over 4th of July weekend and had been using Zicam nasal gel,” said Brian, of Nararre, Fla. “It worked pretty good but after three days I noticed I could no longer smell or taste anything. At that point I stopped using it and have not used any medication or nasal products since. My senses have still not come back.I hate to think think product caused this and hope t's not permanent but as it's August 22 now and I'm still without my taste and smell sense, I feel a bit concerned.”

Brian should be concerned, and he should see a doctor right away. In 2009 the FDA said consumers should stop using three products marketed over-the-counter as cold remedies because they are associated with the loss of sense of smell, a condition known as anosmia. Anosmia may be long-lasting or permanent.

The products are:

• Zicam Cold Remedy Nasal Gel
• Zicam Cold Remedy Nasal Swabs
• Zicam Cold Remedy Swabs, Kids Size, a discontinued product

The FDA said it had received more than 130 reports of loss of sense of smell associated with the use of these three Zicam products. In these reports, many people who experienced a loss of smell said the condition occurred with the first dose; others reported a loss of the sense of smell after multiple uses of the product.

It just goes to show you, anything will sell at the right price.

In the tablet world, dominated by Apple's iPad, the HP TouchPad got no love. It was derided for its WebOS operating system and lack of pizazz, compared to its flashier rivals.

But what a difference a price cut makes. Over the weekend HP announced it was getting out of the tablet business and slashed the price of its TouchPad from $399 for the 16KB version to $99. Suddenly the unloved device was selling like hotcakes.

Many Best Buys and other retail outlets that normally have a hard time selling any TouchPads reported selling out in a few hours today. And no one in the tech world seems all that surprised.

Best tech deal ever?

“The $99 HP TouchPad is one of the best tech deals of the year – possible one of the best tech deals ever,” gushed PC Magazine. “Even though the touchPad's webOS may never see another product, the TouchPad is still a powerful, flexible tablet, and $99 - $149 for the 32GB – is a killer price.

What about the webOS operating system? Isn't the system, inherited by HP when it acquired Palm, pretty much headed for oblivion? Not so, says Stephen Dewitt, senior VP of Palm, who told Bloomberg News that HP is only getting out of the tablet market, not the software market.

J.R. Raphael, a blogger for ComputerWorld, said he went out over the weekend and bought a Touchpad, even though he already had an Android tablet, calling $99 “a steal for that kind of hardware.” He said, even if you just used it as an alarm clock, it was a good buy.

Android possibility

“Aside from the default webOS software, there's a very good chance I'll be able to install Android onto the TouchPad at some point in the foreseeable future,” Ralphael wrote. “Teams of Android enthusiasts like the gang from RootzWiki are already hard at work creating Android ports for the product.”

Business writers at Britain's Guardian newspaper note that HP is losing millions of dollars by refunding retailers the difference between the old price and the new price, but it's not clear the move is all that much of a disaster. After all, companies spend millions on highly ineffective television commercials that move little product.

In slashing the price, HP has transformed the TouchPad from a device no one wanted to a device everyone wants. And if the company quickly sells its complete inventory, it will have an instant customer base for software.

Should you buy one? The verdict in the tech world, at least, appears to be a resounding yes. If you can find one.

Southwest Airlines launches service from Atlanta Feb. 12, 2012, its first foray into Hartsfield International Airport, the world's busiest airport and a lucrative arena for Atlanta-based Delta.

Southwest's entry, part of its acquisition of AirTran Airways, will put severe pricing pressure on Delta and bring Atlanta trael consumers initial fares as low as $79 one-way.

"We're bringing especially great value to those of you who travel last-minute," Southwest President, Chairman, and CEO Gary Kelly told an  audience of business leaders today.

"Here in Atlanta, our fully refundable, walk-up fares will be, on average, more than 30 percent lower than anything currently in these markets. And we are bringing the flexibility Southwest Customers already enjoy in other cities because we don't charge a $150 fee simply to change your plans," Kelly said.

From Atlanta, Southwest initially will offer 15 nonstop departures each day to five destinations:

• Baltimore/Washington (BWI),
• Chicago Midway (MDW), 
• Denver (DEN), 
• Houston Hobby (HOU), and 
• Austin, Texas (AUS), a route not previously served by AirTran Airways.

The nonstop flights make possible additional direct or connecting service between Atlanta and 48 destinations on Southwest Airlines.

The inaugural schedule also brings, for the first time, one-stop/no change-of-plane service between Atlanta and Dallas' Love Field on Southwest Airlines.

In a first step toward blending frequent flyer programs, Kelly announced top-tier members of both carriers' frequent flyer loyalty programs -- A-List Members of Southwest's All New Rapid Rewards and elite A+ Members of AirTran's A+ Rewards -- will enjoy some, limited reciprocal benefits when flying on either carrier beginning today.

A-List benefits include extra Rapid Reward points, Priority Boarding, access to priority security lanes, and more. On the flip side, Southwest A-List and A-List Preferred Members booking on AirTran will get Free Business Class upgrades, no baggage fees, and all other benefits that AirTran's elite Members enjoy.

Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded and has acquired AirTran Airways, now a wholly owned subsidiary of Southwest Airlines Co. With the addition of Atlanta, Southwest will serve 73 cities in 38 states.

Union workers have called a truce in their 15-day strike against the company and will be going back to work tonight (Monday). 

But if you have an installation or trouble ticket pending, beware. The unions and company have not come any closer to an agreement, they've just agreed to call off the strike for now.  The unions could still go back on strike if the talks don't go well.

More than 45,000 workers from Virginia to New England went on strike to express their anger at what they saw as the company's refusal to bargain seriously.  The workers are members of the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW).  They do everything from splicing fiber optic cable to working as customer service representatives.

The strike affects only Verizon's land-line businesses -- primarily local telephone service and FiOS, which have both been shrinking steadily as customers move to wireless phones and rivals including AT&T and cable companies.

It does not affect Verizon Wireless, a separate company.

The union workers are most upset about concessions the company is seeking on pensions, health care and job security, and it's not seen as likely that those issues will be resolved quickly.  

CWA President Larry Cohen said Sunday that the process will "take definitely weeks, not days" and said union members might have to return to the picket lines if there's no progress.

While there are plenty of unsafe products that injure children, researchers say there is one dangerous product that gets little or no attention – the window.

A new study conducted by researchers at the Center for Injury Research and Policy of The Research Institute at Nationwide Children’s Hospital found that approximately 5,200 children each year are hurt by falling from a window. A total of 98,415 children and adolescents were injured by falling from a window between 1990 and 2008, the years included in the study.

The study appears in the September 2011 issue of the journal Pediatrics.

One out of four hospitalized

“Window fall injuries are serious,” said the study’s senior author Gary Smith, director of the Center for Injury Research and Policy at Nationwide Children’s Hospital. “In fact, one out of every four children in our study was hospitalized as a result of their injury. We know from successful programs in New York City and Boston that child injuries due to falls from windows can be prevented. We need to do a better job of protecting our children from these types of serious injuries.”

Not surprisingly, the study found that the younger the child, the more vulnerable they were to falling from a window. Children infants to four years of age accounted for 65 percent of the injuries. Their injuries also tended to be more serious.

Head injuries most common

Overall, the most common injuries were to the head and face region, and the most frequent injury diagnoses were soft tissue injury and brain/head injury.

In this study, more than 190 children each year fell from windows after gaining access to the window by climbing on furniture placed near the window. Therefore, the researchers say, furniture should be moved away from windows to help keep young children safe.

“In addition, it is important for parents to understand that window screens will not prevent a child from falling out of a window,” said Smith, also a professor of pediatrics at The Ohio State University College of Medicine. “There were many children in our study who pushed a screen out of a window and then fell from the window.”

Prevention

To prevent injuries from window falls:

• Install window guards on all second-story or higher windows in places where young children live or visit.
• Remember that screens will NOT prevent a child from falling out of a window.
• If windows are open, use window stops to prevent the window from opening more than 4 inches.
• Move all furniture away from windows.
• Remember that fire escapes, roofs and balconies are not safe places for children to play.
• Educate older children on the dangers of climbing out of or jumping from windows.
• Consider planting bushes or locating flower beds under windows to soften the landing surface, which may reduce the severity of injury in the event of a fall.

General Motors (GM) has told a court it should not be responsible for warranty repairs for problems that pre-date its bankruptcy.

The carmaker made its case in a motion to dismiss a class action lawsuit filed to correct suspension problem in more than 400,000 Chevrolets produced for the 2007 and 2008 model years.

The case arose from the complaint of one consumer, Donna Trusky of Blakely, Pa. In her June 29 lawsuit, Trusky claims her Chevrolet Impala was flawed by bad rear spindle rods, which she said caused her rear tires to suffer excessive tread wear.

The suit, which seeks class-action status, accuses GM of walking away from its warranty responsibilities and demands that the carmaker make repairs to affected vehicles. In making her case, Trusky points out that GM did, in fact, repair the same problem on Chevrolet Impalas sold to police departments.

'Old GM's' problem

But GM says the faulty rods are not its responsibility. Company lawyers note the cars in question were manufactured by “Old GM,” the company before it declared bankruptcy in 2009. The court filing maintains that “New GM” has no responsibility to repair cars manufactured before the reorganization.

"New GM's warranty obligations for vehicles sold by Old GM are limited to the express terms and conditions in the Old GM written warranties on a going-forward basis," wrote GM lawyer Benjamin Jeffers. “New GM did not assume responsibility for Old GM's design choices, conduct, or alleged breaches of liability under the warranty."

The motion was filed in U.S. District Court in Detroit. It will be up to the judge in the case to decide whether “New GM” has to fix Trusky's car, and 399,999 others.

Consumers who rent cars have to pay extra attention these days to make sure they don't end up paying for things they don't want. Pat, of Cummings, Ga., reports such an experience.

“Thrifty Car Rental charged me for insurance that I did not want and a per day charge for extra driver after telling us it was a one time charge,” Pat told ConsumerAffairs.com. “They will not take one cent off the bill because they said I signed the ticket. True, I did, but before I signed I asked the man if this was the same price as on my reservation and the answer was yes. My suggestion would be to stay away from Thrifty Car Rental.”

Our suggestion would be to read the rental agreement and not take the word of the person behind the counter. Sadly, that's the way it seems you have to operate in the current economic environment.

Not holding up their end of the deal

Who bears the responsibility if a wireless service doesn't work the way it's advertised? Right now, it seems the consumer does.

“I purchased an advertised 4G Broadband device from Verizon Wireless months ago,” said Robert, of Wilkes-Barre, Pa. “Every day of every week for the past four months the device malfunctioned, disconnecting me every time 10 minutes at a time, sometimes shorter.”

Robert said he has tried two replacement devices, both of which, he says, malfunctioned as well. He said he has downloaded every update and worked with Verizon's technical support. He finally gave up and cancelled the contract.

“I am being billed for an early termination fee on a device that never worked properly,” he said. I seek remedies as Verizon breached their contract in providing a 4G Device that worked properly or moreover work period.”

Breach of contract is usually argued in court, but cell phone disputes must be arbitrated, according to the U.S. Supreme Court. Robert should certainly try arbitration, even though consumers don't usually fare very well. Still, he seems to have a pretty reasonable case. Robert appears to have made a good faith effort to make the product work. Verizon appears to be unable to make the product work for him. Why is it fair to penalize him for that?

Empty promises

Here is another reason why you should immediately hang up on anyone who calls you and tells you they can help you get a mortgage modification.

“I was contacted by American Residential Law Group who said they could help me with a loan modification, Mark, of Hammond, Ind., told ConsumerAffairs.com. “After I agreed to pay them $1,500 they passed me to Summit Legal Group, who said they needed another $1,500 dollars to process my loan. I haven't heard from again now my home is in foreclosure and I'm about to lose it.”

If you need help with a mortgage modification, it's best to start with the government's site for helping homeowners. 

Auto renewal

Lots of consumers complain about auto renewals, especially the ones that are hard to switch form “auto” to “manual.” Sean, of Mooresville, N.C., finds eHarmony's renewal set-up especially hard to fathom.

“The policy seems design to be as obscure as possible,” Sean said. “Turning off the auto-renew is actually indicated as 'cancel subscription.' Once you figure this out it then take a series of five web pages and a survey to complete the process. Some of the questions in the survey are of the 'when did you stop beating your wife' kind, and seem designed to make you feel like you have failed in some way using eHarmony.”

Companies say they provide auto renewal so the consumer's service isn't inadvertently interrupted, but in reality, most are hoping you forget and just renew their service without knowing it.  

Iowa Attorney General Tom Miller has filed a lawsuit against a Texas membership club, alleging the company used unfair and deceptive sales tactics to charge monthly fees for unwanted and unused memberships.

The lawsuit against Stonebridge Benefit Services, Inc.,  headquartered in Plano, Texas, alleges the company violated Iowa’s Consumer Fraud Act and Buying Club Memberships law.  The Buying Club Memberships law requires that membership sales transactions include specified notices, disclosures, and contracts.

“We allege that Iowans have paid for buying club memberships that they didn’t know they had and probably never used,” said Miller.

According to Miller’s lawsuit, Stonebridge has sold more than 50,000 memberships to Iowans, generating net revenues of about $4 million. 

Iowans who have contacted the Consumer Protection Division have claimed that they were enrolled in memberships without their knowledge or permission, and consumers later discovered that they had been billed for months or even years of unused memberships.

The memberships purport to offer savings on consumer goods, health and wellness products, and entertainment expenses.  Stonebridge has marketed several membership clubs, including:

• BackPorch Home and Garden,
• Everyday Bargains,
• Experts-on-Call,
• Fun Family Rewards/Select,
• Home & Auto Protection Plan,
• LeisurePlus/Select,
• MotorPlus,
• Perfect Home Rewards/Select,
• Pet Club,
• PlanPlus/Select,
• Savings Solution, and
• Savings2Go.

In many cases, according to Miller’s lawsuit, Stonebridge attracted consumers with free gift card or “cash back” offers to Iowans who placed online orders through other companies, such as JCPenney, or through telephone orders generated from television “infomercials.” 

Consumers were then enrolled in a membership program and billed monthly, often without their knowledge and consent.  According to the lawsuit, many of these consumers are older Iowans.

In a separate buying club membership case in March a Polk County Judge ordered Connecticut-based Vertrue, Inc. to pay more than $28 million in restitution, penalties and costs after ruling the corporation violated Iowa’s buying club law and used deceptive and unfair practices to market so-called buying club memberships to nearly a half-million Iowans over the last twenty years.  Vertrue has appealed the judgment.

“Free Trial Offer” Tips

• Be wary of “free trial offers".  Get the details: Will you be billed automatically if you don’t cancel?  By when must you cancel?  How do you cancel?  Will you receive a mail notice?  Remember, they already may have your bank or credit card number to charge you.
  
  
• Examine your credit card bills every month, and also your checking account, other financial accounts, and phone bills.  Watch for unauthorized charges, and dispute them at once, in writing.
  
  
• Watch your mail and e-mail for notices that you will be billed unless you cancel.  These mailings may look like “junk mail.”
  
  
• Beware of cashing a check that comes in the mail with a “free trial offer.”  The fine print may obligate you to future payments.

Four banks were seized by regulators over the weekend, bringing the total number of failures so far this year to 64.  In 2010, 160 banks went into receivership, were merged with another financial institution, or closed their doors entirely. 

At the current rate, the total for 2011 could reach 106.  Currently, there are nearly 1,000 banks and other financial organizations on the troubled list. 

The latest banks to fail: 

Lydian Private Bank, Palm Beach, Florida, was closed by the Office of the Comptroller of the Currency. Sabadell United Bank, National Association, Miami, Florida, will assume all of the deposits of Lydian Private Bank. As of June 30, 2011, Lydian Private Bank had approximately $1.70 billion in total assets and $1.24 billion in total deposits. In addition to assuming all of the deposits of the failed bank, Sabadell United Bank, National Association agreed to purchase essentially all of the assets.

First Choice Bank, Geneva, Illinois, was closed by the Illinois Department of Financial and Professional Regulation. Inland Bank & Trust, Oak Brook, Illinois, is assuming assume all of the deposits of First Choice Bank. As of June 30, 2011, First Choice Bank had approximately $141.0 million in total assets and $137.2 million in total deposits.

First Southern National Bank, Statesboro, Georgia, was closed by the Office of the Comptroller of the Currency. Heritage Bank of the South, Albany, Georgia, is assuming all of the deposits of First Southern National Bank. As of June 30, 2011, First Southern National Bank had approximately $164.6 million in total assets and $159.7 million in total deposits.

Public Savings Bank, Huntingdon Valley, Pennsylvania, was closed by the Pennsylvania Department of Banking. Capital Bank, National Association, Rockville, Maryland, will assume all of the deposits of Public Savings Bank. As of June 30, 2011, Public Savings Bank had approximately $46.8 million in total assets and $45.8 million in total deposits.

Depositors of the closed banks automatically become depositors of the banks which have assumed the failed banks' deposits. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits.

Depositors can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

The Washington Attorney General’s Office says too many car ads violate consumer protection laws. The office announced eight settlements that are part of its ongoing work to steer dealers toward fair business practices.

“A car may be the most expensive purchase a Washington resident makes,” said Assistant Attorney General Mary Lobdell, of the Consumer Protection Division. “Unfortunately, many car ads are confusing or misleading. Buyers and businesses benefit when dealerships put straightforward advertising in the front seat.”

The settlements address a range of advertising violations. While allegations vary from dealer to dealer, the problems include:

·       Failing to properly disclose the vehicle service documentary fee

·       Advertising “free” merchandise and prizes without adequately disclosing that consumers would need to pay shipping and handling fees

·       Creating a false sense of urgency

·       Misrepresenting the number of vehicles offered for sale

·       Making statements that the dealer could not substantiate through its business records

·       Failing to provide disclosures required by the federal Truth in Lending Act

·       Offering a rebate that is not associated with a manufacturer or failing to disclose material terms in conjunction with a rebate offer

·       Failing to identify vehicles by VIN or plate number

·       Using terms not familiar to the general public

·       Failing to comply with the state’s Prizes and Promotions Act

Wrongdoing denied 

As is typical with consumer protection settlements, the allegations were resolved with agreements that don’t require the businesses to admit any wrongdoing but impose restrictions on their marketing practices. All the dealers denied any wrongdoing and cooperated with the Attorney General’s Office throughout the course of the investigation.

The cases include:

D and S Auto World, Inc., d.b.a. Shafer Motor Company and Auto Plaza USA II (Kennewick): The business agreed to advertise the documentary service fee as provided by law, to comply with other restrictions on its advertising practices and to pay $5,000 to reimburse the state for attorneys’ fees and legal costs.

Bulldog Motors, LLC , d.b.a. All Star Automotive Group (Pasco): The business agreed to comply with restrictions on its advertising practices and pay $5,000 to reimburse the state for attorneys’ fees and legal costs.

Grover Dykes Auto Group, Inc., d.b.a. Legacy Ford of Tri-Cities, Legacy Ford of Walla Walla and Legacy Ford of Pasco (Pasco): The dealerships agreed to advertise the documentary service fee as provided by law, to substantiate advertisement claims, to comply with promotional prize laws and other restrictions on its advertising practices and to pay $10,000 to reimburse the state for attorneys’ fees and legal costs.

L III, Inc., d.b.a. Consumer Auto Liquidators (Airway Heights): The business agreed to advertise the documentary service fee as provided by law, to substantiate its advertisement claims, to comply with promotional prize laws and other restrictions on its advertising practices and to pay $10,000 to reimburse the state for attorneys’ fees and legal costs.  It must also refund documentary service fees paid by consumers in which the fee was materially misrepresented or was not disclosed in advertising published since Jan. 1, 2010.

Haselwood Buick-Pontiac Company, d.b.a. Haselwood Buick Pontiac GMS Truck; West Hills Company d.b.a. West Hills Honda; Heartland Motor Company d.b.a. Heartland Toyota Scion(Bremerton): The dealerships are accused of using deceptive promotions including prize offers and “free” gas vouchers. The business agreed to comply with restrictions on its advertising practices and pay $10,000 to reimburse the state for attorneys’ fees and legal costs.

Parkway Auto Center, Inc., formerly known as Parkway Chevrolet, Inc. (Deer Park): The dealership is accused of using deceptive promotional prize offers and routinely issuing advertisements that don’t comply with Washington laws. The business agreed to comply with restrictions on its advertising practices and pay $5,000 to reimburse the state for attorneys’ fees and legal costs.

Bud Clary of Yakima, Inc., d.b.a. Toyota of Yakima and Bud Clary’s Discount Outlet (Yakima): The business agreed to advertise the documentary service fee, to comply with disclosure requirement, to disclose the number of vehicles available at an advertised price and to pay $5,000 to reimburse the state for attorneys’ fees and legal costs. It must also refund documentary service fees paid by consumers who purchased certain vehicles advertised in the Yakima Herald-Republic in November 2009 and February 2010.

Hahn Motor Company (Yakima): The business agreed to advertise the documentary service fee as provided by law and pay $5,000 to reimburse the state for attorneys’ fees and legal costs.

After two years of development, Target is just about ready to take the wraps off its new Website, hoping to boost sales and catch up to Amazon, Walmart and other giant online retail sites.

It particularly galls Target, we suspect, that Walmart is the sixth-biggest Internet retailer with about $4.4 billion in sales, while Target is a distant 22nd, with $1.33 billion online sales last year.

Amazon.com is, of course, No. 1, with nearly $13 billion last year.  And, oddly enough, it's Amazon that has been running Target's site and fillings its orders for the last decade.

So why is Target bringing its Web retailing in-house after a successful run with Amazon?

Basically, it hopes to make Target.com more like being at an actual Target store and less like being at any of a number of online sites, according to Target CEO Gregg Steinhafel.

Steinhafel says the new site will be easier to navigate, will have faster check and, he hopes, encourage more customer loyalty. 

It's quite an undertaking.  For the last decade, Amazon has run the Target site, operated its warehouses, run the call center and handled all shipping and customer service.

Next week, Target will be throwing the switch -- quite a few switches, actually -- and taking over all those functions itself, no small task. Just to top it off, when the transition is complete, Target will no longer be selling on Amazon.com.