Current Events in August 2011

Does smoking a menthol-flavored cigarette brand make it harder to quit. Some say yes, some say no.

Now, researchers at The Cancer Institute of New Jersey (CINJ) and UMDNJ-School of Public Health add fuel to the debate. Their study finds that menthol cigarettes are associated with decreased quitting in the United States, and that this effect is more pronounced for African-Americans and Puerto Ricans.

The findings, which appear in the American Journal of Preventive Medicine, are being released as the Food and Drug Administration's (FDA) Center for Tobacco Products is currently considering banning menthol cigarettes after its own Tobacco Product Scientific Advisory Committee (TPSAC) concluded that “removal of menthol cigarettes from the marketplace would benefit public health in the United States.”

African-Americans object

Last fall the National Black Chamber of Commerce (NBCC) formally opposed the FDA proposal to ban menthol cigarettes, charging it was a move directed against African-Americans.

"It is no secret that menthol cigarettes provide a distinctive taste that is preferred by many African Americans," NBCC President Harry Alford said. "In making a recommendation, it is my fervent hope that the committee not make a decision based on mixed information, decades-old marketing information, inconclusive studies or preconceived notions."

Earlier this year, a study funded by the National Cancer Institute concluded smoking menthol cigarettes made it no more likely the smoker would die of cancer.

Mixed results

Authors of this latest research note that previous studies regarding the impact of smoking menthol cigarettes and smoking cessation efforts have produced mixed results. But they say some research did not take into account the overall population of smokers, while other studies lacked focus on periods of successful smoking cessation and instead targeted attempts to quit.

“Because our evidence suggests that the presence of menthol may partially explain the observed differences in cessation outcomes, the recent calls to ban this flavoring would be prudent and evidence-based,” the authors conclude.

Some cigarette flavorings have already been banned, because they were favored by young, under-age smokers. The push to add menthol to that list picked up steam in June when a Stanford School of Medicine study called the use of menthol “predatory.”

According to that study, tobacco companies increased the advertising and lowered the sale price of menthol cigarettes in stores near California high schools with larger populations of African-American students. The lead researcher for the study said the data shows a "predatory" marketing pattern geared to luring young African Americans into becoming smokers.

The FDA, meanwhile, is currently reviewing relevant studies on the subject and is expected to submit a proposal on menthol in cigarettes in the fall.

With Sunday marking the 76th anniversary of the creation of Social Security, AARP is celebrating the lifelong protections that Social Security’s earned benefits provide for millions of Americans today, and emphasizing the importance of protecting and strengthening the program for future generations.

“Social Security is critical to the financial security of more than 55 million Americans today,” said AARP CEO A. Barry Rand. “With dwindling pensions, dramatic losses in retirement savings, declining home values and rising health care costs, Social Security is the one guaranteed source of income that beneficiaries can rely on to help pay their monthly bills.”

More than one in three retiree households count on Social Security for 90% or more of their income, with even greater reliance in African American and Hispanic senior households. And benefits are modest—approximately $14,000 a year for retirees.

In addition, Social Security benefits keep over 36% of people age 65 and older out of poverty, including 39% of all older women. Social Security benefits are particularly important for women due to their higher life expectancies and lower earnings, on average, than men.

“Another piece of the great success story of Social Security is that it also provides a level of income security for disabled workers, spouses, survivors and their children—people of all ages," Rand said. "The critical importance of these benefits for family income security simply cannot be overstated.”

For a married worker with average earnings and a family to support, the survivor benefits Social Security would provide are comparable to a life insurance policy worth $476,000, and if the worker becomes disabled, the benefits are comparable to a disability insurance policy worth $329,000.

“Americans overwhelmingly understand that Social Security has literally been a lifeline to millions of friends, family members and neighbors for 76 years, and will be critically important to the financial and retirement security of our children and grandchildren,” added Rand.

"AARP reaffirms its commitment to protecting Social Security. We will fight any proposal to cut earned Social Security benefits as part of a deficit reduction exercise. We will also continue working to strengthen the program in the context of retirement security for current and future generations,” Rand said.

One of AT&T's arguments for acquiring rival T-Mobile is that the combined companies will help it expand 4G LTE service to the entire country. But critics of the deal point to a document they say contradicts that.

Comm Daily has published a document it says is from AT&T's filing with the Federal Communications Commission (FCC), admitting that expanding its most advanced network to 97 percent of the country would cost an estimated $3.8 billion. But the filing shows AT&T rejected that option, claiming there wasn’t a “viable business case” to justify the expansion.

So why, critics ask, is AT&T willing to spend $39 billion on the T-Mobile takeover — 10 times as much? And the company is committed to paying T-Mobile $6 billion in total compensation if the deal falls through, $2.2 billion more than it would cost to expand its service.

On Friday, the consumer non-profit Free Press said it obtained an AT&T "fact" sheet being used to lure support for the merger. The fact sheet features the claim that the proposed combination of AT&T and T-Mobile is the "rare case where 1 + 1 = 3."

Fuzzy math

Free Press President and CEO Craig Aaron says, not only is it fuzzy math, but AT&T's case for this takeover doesn't withstand scrutiny.

“As the real numbers and facts come to the public's attention, support for this merger continues to unravel,” Aaron said. “ The Department of Justice and the FCC have all the evidence they need to block this dangerous deal.

Aaron claims the real reason AT&T is willing to pay a $39 billion premium for T-Mobile is to kill off the competition.

“It would cost AT&T one-tenth of the merger’s cost to expand its network than to buy up T-Mobile,” Aaron said. “Yet AT&T is willing to pay a 900-percent markup to take out a lower-priced competitor and make sure it can lock in and gouge consumers in the future. The only thing stopping AT&T from expanding its network is greed. One plus one does not equal three, but subtracting one competitor adds up to billions in profits for AT&T and thousands of Americans out of work.”

Largest mobile network

The combination of AT&T and T-Mobile would create, by far, the nation's largest mobile network. Verizon Wireless, currently the largest mobile provider, would be a distant second.

Sprint CEO Dan Hesse has been outspoken in his opposition to the proposed deal, saying if it is allow to proceed, it would not bode well for the U.S. wireless industry.

Consumers tend to get annoyed when they see an advertisement for an item they want, but find the item is out of stock when they get to the store.

Frank, of Belmont, N.C., recently voiced such a frustration after a shopping trip to Dick's Sporting Goods.

“Advertised items have signs stating sale prices but different items are on the racks,” Frank told ConsumerAffairs.com. “In my instance, a rack of items stating shorts and shirts on sale. I took the shorts to the counter and they rang up much more than the price. I went to show the sales person when I got and she stated they were out of the ones on sale and had to put something on the empty rack.”

The Federal Trade Commission (FTC) is currently reviewing the agency's rules regarding advertised food items, with the possibility of extending it to other types of retailers.

The current rule prohibits food retailers from advertising products at a stated price unless the products are in stock and available during the effective period of the advertisement, or the ad discloses that supplies are limited or available only at some outlets.  It is not a violation if the retailer meets other conditions, such as offering a “raincheck” for the advertised products, or a comparable product at the advertised price.

The FTC is seeking comments on the costs and benefits of the Retail Food Store Advertising and Marketing Practices Rule, also known as the Unavailability Rule, which was originally enacted in 1971.

The FTC also seeks comment on whether the Rule should be repealed or left unchanged; amended to include drugstores, department stores, or other types of retail stores; or be changed to account for changes in technology or economic conditions since it was last updated in 1989.

Does Facebook have a way to deal with people who impersonate other people on the site? Rose, a concerned mother from Overland Park, Kan., hasn't been able to find one.

“I have made multiple attempts to complain via email and via phone and cannot get any response, Rose said. “Someone has created multiple Facebook profiles in my daughters name. They are impersonating her. My daughter had a Facebook page that was actually her and they were harassing her on that page. We had to deactivate her actual account. We cannot deactivate the multiple fake accounts. We cannot get through to a person to make a complaint via email or phone.”

Rose said she has tried all the various "Help" options on the site but says she hasn't gotten anywhere. “I have tried to complain via every 'Report a violation' link on Facebook and it says it cannot be processed at this time. I just want these profiles deleted, and the harassment to stop. Why does Facebook have no conflict resolution process whatsoever? Are they not accountable for their service?”

With 750 million members and counting, the site may be getting a bit unwieldy. If anyone has any advice for Rose, let us know.

Not exactly express service

An increasing number of employee health benefit plans are using mail order pharmacies, in an effort to control costs. But Cheryl, of Stockton, Calif., finds it hard to get her medication in a timely fashion from Express Scripts.

“When I ask my doctor's office to fax a refill for medications to Express Scripts they never seem to get the fax--until it's been faxed two or three times,” Cheryl told ConsumerAffairs.com. “Very frustrating to wait several weeks only to find out they still don't have the faxed information. Sometimes I nearly run out of my meds. Then they ran out of one of my meds. I had to request a refill from my local pharmacy. I don't have any option as this is the mail order pharmacy provided by my insurance.”

Cheryl's complaint in not all that uncommon, and may be a sign that mail order pharmacies just don't have the personnel to keep up with the increasing demands.

Across the pond

There are often similarities between complaints from U.S. consumers, and those in other countries, about the same companies.

“We have read the comments about the practises of Enterprise Car Hire and the fact they charge after you have left the premises to correct so called minor dents in the car. Their claim against us is $750,” said WB of Castletown, UK. “This is just to let you know that they operate in a similar fashion in other countries, we are based in the UK. Customer Service is poor in our opinion and today we had an abusive debt collector on the phone. We had already paid for the dent when we took the car back about $210 and we got a quote from a reputable body shop that said it would only cost about $100. Enterprise are now claiming a further $600!”

U.S. and British consumers may have more in common than you might think. WB says ConsumerAffairs.com “is very helpful to us.”

Costly information

Loren, of Columbus, Ind., is upset because she found her credit card was charged $19.95 each month after agreeing to a one time charge of $.95 from US Search for a reverse telephone number.

“I was going through my checking account and found the charges,” Loren told ConsumerAffairs.com. “I called and the representative said he understands my frustration and he himself would never even use his card online. He said that the membership that you agree to is clearly stated on the webpage and it's not like they are trying to hide anything.”

Consumers need to understand that when they provide their credit card information for a very small purchase, it's almost certain that they are also being enrolled in a membership program that has a recurring charge. The US Search representative is correct, however. There is a clear explanation of the terms on the website. However, it does not appear until you are well into the purchase process. Still, consumers need to be aware and read everything carefully.

Small investors can only shake their heads as this week draws to a close on Wall Street. The stock market has been what some analysts have called bipolar.

Monday's over-600-point drop in the Dow Jones Industrial Average was followed Tuesday by a more-than-400-point rebound. What happened in that two-day span? Not a lot, really.

Monday's huge sell-off was motivated, in large part, by Standard & Poor's downgrade of U.S. debt from AAA to AA+. By Tuesday morning, many investors had decided they had overreacted and the market snapped back.

Then Wednesday, the market sank again – this time over fears that European banks are teetering on the brink of default. But Thursday brought some mildly encouraging economic news, and stocks roared back Today, the Dow was up again by triple digits at midday.

Confused yet?

William Schulze, professor of Applied Economics and Public Policy at Cornell University, says investors can be excused if they are more than a little confused.

“Simply put, Monday’s stock market sell-off was a gut reaction based on fear, and Tuesday’s rebound was based on the realization that S&P is without a doubt incompetent,” Schulze said. “What they did in downgrading the U.S. credit rating was the equivalent of yelling ‘fire’ in a crowded theater, setting off a panic when, in fact, they knew there was no fire.”

Schulze is especially critical of S&P, which alone among the ratings agencies took the U.S. credit rating down a notch. And, he says, their recent track record hasn't exactly been impressive.

Checkered past

“S&P, along with the other rating agencies, has been under investigation by Congress for giving AAA ratings to toxic mortgages that led to the 2008 financial crisis and Great Recession,” Schulze said. “In addition, S&P gave Enron high ratings on the day that it failed, and gave an A rating to Lehman Brothers just before it failed. S&P also missed Ireland, Iceland, Spain and Greece.

For small investors, being a spectator to all of this might be the prudent course of action. At least, you should be able to sleep better at night.

“The stock market will be unstable for some time, until people are reassured that the time for fear is over,” Schulze said.

When computer and smartphone makers saw the success of the iPad, they did what any self-respecting business what do: rushed to get into the fray.

But it hasn't turned out very well for the would-be competitors. Yes, iPad and Apple have their detractors but they have something else that's even more important: customers, lots of them.

Apple has sold 28.7 million iPads since the device was launched in April 2010. Analysts estimate that Apple controls at least two-thirds of the tablet market but admit the actual figure could be higher.

It's hard to get an exact comparison because competing manufacturers – Samsung, H-P, Motorola and Blackberry being the most prominent – so far haven't disclosed their sales figures, although they boast about how many units they have shipped to stores. Shipping isn't the same as selling, of course.

Amazon's Kindle isn't included in the figures because it's an e-reader, not a tablet computer.  The iPad is a tablet that makes a really nifty e-reader though.

First not always best 

Samsung was the first to jump into the tablet market after Apple and boasts of shipping two million Galaxy Tabs to wireless carriers and retailers. But now the company is locked in a patent dispute with Apple that threatens to shut down sales of the Galaxy in most of Europe.

Actually, for a product that has been so successful, the iPad's detractors are few and far between. In July 2010, a class action lawsuit claimed the iPad could overheat in bright sunlight. Less than a year later, a judge dismissed the suit, saying basically that the allegations were overcooked.

And while many electronic geegaws are quickly denounced by educators, there's been remarkably little grousing from teachers and parents about the iPad. In fact, mothers are positively aglow over their little darlings' quick adoption of mousing over, minimizing and so forth.

One study found that children today are likely to learn to navigate an iPad before they learn to tie their shoes.

Anti-Asian?

At one point last year, Andrew Cuomo, who was then the New York Attorney General (he's now the Governor) opened an investigation into whether Apple was discriminating against Asian customers. A state legislator had complained that Apple Store clerks subjected Asian customers to questions about passports and English proficiency.

The suspicion was that Apple was trying to prevent exports of the device to China. Nothing came of the probe, though, and Cuomo has moved on to bigger headaches.

ConsumerAffairs.com is shockingly bereft of consumer complaints about the iPad. One of the few we know of occurred when your faithful reporter was seated on a Virgin America flight at Dulles awaiting departure to LAX.

A fellow passenger squeezing by in the aisle remarked to his companion, "Look at that guy. He went and wasted his money on an iPad." (I informed him it was my company's money that had been spent. Whether it was wasted or not is open to debate).

This still puts the iPad a notch above the Kindle. While seated in the same situation a year or two before, I was minimally assaulted by a fellow passenger who slapped my Kindle as she passed by, declaring it "evil." I made no rejoinder in that case, as she was quite a bit bigger than I.

And by the way, neither one is much good in bright sunlight, for what that's worth.

The U.S. Department of Transportation has issued a new rule limiting the number of consecutive hours passenger railroad workers can be on the job.

The new Federal Railroad Administration (FRA) regulation will reduce risk and improve safety for the railroad industry, and for the first time, differentiate between freight and passenger service, officials said.

Designed to reduce accidents related to fatigue, the final rule applies “fatigue science” to employee work schedules to determine maximum on-duty periods and minimum off-duty periods. The Transportation Department said it is engaging in a broad initiative to bring scientific data into work scheduling, and the FRA rule is the first rule in that effort to be completed.

“Safety is job one, and by focusing our attention on proactive risk reduction strategies like these, we will be able to reduce the number of accidents on our railways”, said Transportation Secretary Ray LaHood. “This new program will let us recognize and prevent fatigue problems for passenger train crews before they arise.”

Through the use of fatigue modeling tools and data on human alertness factors, this new rule will guide the scheduling of train crews to reduce the likelihood of a hazardous work schedule. This rule recognizes the difference between work during daylight hours and work during nighttime hours when fatigue is most likely to occur. The final rule includes:

• Maximum on-duty periods and minimum off-duty periods for passenger train employees including locomotive engineers and conductors.
• Requirements for railroads to identify schedule-specific risks of fatigue using an approved, scientifically validated, and calibrated bio-mathematical model of human performance and fatigue.
• Requirements for railroads to develop and carry out plans to mitigate fatigue risks before safety may be compromised.

The final rule also requires railroads to submit certain work schedules of their passenger train employees and fatigue mitigation plans to FRA for approval, and to provide fatigue training.

The nation's 9-1-1 emergency system is going high-tech. The chairman of the Federal Communications Commission (FCC) has announced planned upgrades to the system that will allow emergency personnel to receive texts, photos and even video through the system.

"Our emergency response networks are doing a phenomenal job," FCC Chairman Julius Genachowski said in a speech this week. "Across our country, they receive over 650,000 9-1-1 calls per day–over 240 million per year—and respond to them with professionalism and commitment."

America's first responders will soon be able to accept text messages, photos, and videos through emergency hotline 9-1-1.

Timed to 911 anniversary

Genachowski believes that new technology will make the system better. He said the FCC will will step up efforts to adopt the changes, known as New Generation 9-1-1 (NG911) by September, when the nation will observe the 10th anniversary of the September 11 terrorist attacks.

One might ask why someone would want to take the time to send a text, picture or video when their house in on fire, but Genachowski says there are times when that might be the only way to safely reach emergency personnel. He notes that NG911 began to take shape last November, prompted by the Virginia Tech campus shootings in 2007.

"Some students and witnesses tried to text 9-1-1 during that emergency and as we know, those messages never went through and were never received by local 9-1-1 dispatchers," Genachowski said at the time.

Logistical nightmare

However, in the comments section on that story, an emergency dispatcher warned of the logistical nightmare involved.

"Adding texting to this recipe would mean thousands of 'nEd hlp quick! Gas stition by the waiter.' What this does is creates a sense of urgency in the call center, as is should, but without the necessary means of obtaining the pertinent information—read: where and what. Instead, we get a 'first alert' so to speak, to start looking and wasting resources. Unless there is a way to couple geocoding with all SMS messages sent to a 911 call center then I can't see this working the way lawmakers intend," he wrote.

Genachowski says the FCC has been working on those issues and hopes to have them ready in time for a September roll-out. In the end, he says the NG911 system will support “seamless, end-to-end IP-based communication of emergency-related voice,text, data, photos, and video between the public and public safety answering points.”

The state of Maryland has filed administrative charges against a suburban Baltimore health club and its owner, claiming they arbitrarily discontinued services that had previously been provided, made false and misleading statements to consumers in regard to their cancellation rights, offered and charged improper fees, attempted to collect debts not owed and failed to post required security.

“Health clubs cannot stop offering the services they've promised and expect their members to continue paying for them,” Maryland Attorney General Douglas Gansler said. “In Maryland, health clubs cannot deceive consumers about their cancellation rights.”

The complaint alleges that in 2010, GRS Fitness, LLC, of Essex, Md., entered into an agreement with a second business, Health Tek Creations, LLC, to take over a health club facility located at 8502 Kelso Drive in Essex. GRS Fitness and Caplan changed the gym's name from Energy Fitness Center to Spunk Fitness Center and, in doing so, removed free weights and heavy lifting equipment from the facility.

Despite the significant changes, GRS Fitness, LLC and Caplan refused to allow members to cancel their membership.

False and misleading statements

Gansler says GRS Fitness, LLC and Caplan also made false and misleading statements about members' cancellation rights and continued to charge the higher monthly membership fee for Energy Fitness Center services that were no longer provided. As Spunk Fitness, GRS Fitness, LLC and Caplan advertise membership rates as low as $9.99, a significant difference from the rate previously charged to Energy Fitness Center members.

The charges also allege that, in regard to registration, GRS Fitness, LLC and Caplan, have failed to post security in an appropriate form.

The state is seeking a cease and desist order to prevent the health club from selling any health club services until they comply with the registration process, cease and desist from improper billing practices, and pay full restitution of all payments collected in violation of the Consumer Protection Act and Health Club Services law.

It seems no good behavior goes unpunished. At least, that's how Pam, of Winder, Ga., feels.

"Right before the credit card law went into effect Citibank raised my interest rate to 29.99% even though we have never been late paying them,” Pam told ConsumerAffairs.com. “When I complained about it I was told that they have to make money someway. They said a lot of people are defaulting on their credit card so they have to raise the interest rate on the ones that pay their bills. With that the payments also raised and now I can hardly pay my bills. If I paid late I could understand but I always pay on time.”

Two years ago the credit card companies did the math and took action to cushion what they expected to be a very high default rate during the recession. A lot of people like Pam, who had a manageable balance with their old rate, now have trouble paying their bills. It's a shame that carrying a credit card balance became the norm among consumers, because it's among the most toxic debt.

Beyond the grave

With intense focus on the bottom line, some companies apparently pressure their personnel to collect every dime that is owed, even if the debtor isn't around anymore. Sharp, of San Antonio, Tex., says his brother was killed in a car accident in May.

“My parents contacted AT&T June 13 to let them know he had passed and would no longer need their services,” Sharp said. “My mom was told by Dwayne, the billing specialist, that she needed to take care of a $321.13 phone bill that belonged to my brother. My mom told Dwayne she would not be paying for the bill and she was then told that the bill would be sent to collections and that my parents would then be held responsible for the bill.”

Sharp's parents aren't liable for their deceased son's cell phone bill, unless their names are also on the account -- and assuming the deceased lad was an adult. Instead, AT&T will probably have to collect it from Sharp's brother's estate. If the estate has no assets, then AT&T is out of luck.

Lawyers have a saying: death relieves all obligations.  

Not a cheap fix

Lexus, of course, is a highly regarded luxury car and many owners are very happy with them. But that's not to say there aren't exceptions.

“I started having 'resetting' of the navigation system in my 2006 RX330 about six weeks ago, with the issue occurring about every 1.5 hours,” David, of Henderson, Nev., told ConsumerAffairs.com. “Now - it happens every 1.5 minutes. The issue does not interfere with the operation of the vehicle, but it is most annoying. Each time the system resets, the audio system is momentarily interrupted but the hands-free Bluetooth connection is killed, rendering it useless. I went to the Lexus dealer for a fix, assuming the problem would be minor - perhaps just a loose connection somewhere behind the dashboard. Surprise! They concluded that the 5-year old factory-installed nav system needs complete replacement at a cost of $1740.”

One of the problems with expensive cars is, the repairs can also be pretty expensive.

First in sales, first in complaints?  Do the two always go together?

In the case of flat-screen TVs, that certainly seems to be the case.  NPD Group reports that Samsung, the world's largest flat-screen TV maker once again led the North American TV market in the first half of 2011, as demand for premium TVs continued to rise despite a poor economy.

Samsung held a commanding 35% of sales based on value of the units sold in the U.S. and Canada, NPD said.  

Could that be the reason complaints about Samsung TVs are such a hot item on ConsumerAffairs.com and other review sites?  We not only get hundreds of complaints but our Samsung pages are typically among the most heavily-viewed on our site.  We tried to ask Samsung that question but the company's media relations department did not return an email.

Samsung may not be responsive but the company's optimistic.  It says its dominance of the North American market is expected to continue as demand for its premium TVs remains strong.

Fried, frazzled

Ken of Atco, N.J. seems typical of the complainants, who seem to run into trouble at about the two-year mark.

"Purchased a 55" LED Samsung series 8000. TV is 2 years old. Base exploded 8/8. Contacted Samsung and waiting for the results. Looks like many have had this issue," Ken wrote Tuesday.

Kate of Mission Viejo, Calif., meanwhile, said her 42-inch Samsung didn't even make the two-year mark.

"We bought a 42-inch Samsung TV less than 2 years ago and yesterday it won't turn on anymore. Just called Samsung and they said that their 2008 models had problems with capacitators but their 2009 models are not covered or part of the problem!" Kate said. "All I know is, our TV should work more than 2 years. They told me to contact a service center to get it repaired. I've never had such an expensive product just quit on me. It's just unheard of."

Well, yes and no.  Flat-screen TVs may look like they're simpler than the boxy old cathode-ray tube models they replace but there's a lot of high-voltage circuitry on some very miniaturized boards.  That means lots of heat in a small space.

Ask your neighborhood TV technician, if you can find one, and he or she will tell you that flat-screen TVs need to be kept as cool as possible.  Ideally, they shouldn't be kept in cabinets that block the flow of air.

It's also important to have a high-quality surge protector to prevent damage from stray electrical spikes.

Samsung's advice

Although we couldn't get an answer from anyone today, a Samsung spokeswoman in July 2010 told our Chase Zacha:

"As a first step, we encourage customers who experience any issues with our TVs to call 1-800-SAMSUNG. Our customer service team will fully investigate and discuss each customers specific experience so that we can help identify the best resolution to fit each case. Customers' experiences with our products and service teams are of the utmost importance to us. When we see a problem frequently reoccur, Samsung takes the necessary steps to correct the issue."

For weeks now, some brave contrarians have dared to suggest real estate might be beginning to turn around. While the news from that sector hasn't exactly been good, they say, it's been less awful. In other words, it's beginning to look like a bottom.

RealtyTrac today supplied some more less-awful news about the real estate market. The foreclosure marketer reports that foreclosure activity hit a 44-month low in July.

Foreclosure filings — which include default notices, scheduled auctions and bank repossessions — were reported on 212,764 U.S. properties in July, a four percent decrease from June and a 35 percent decrease from July 2010. The report also shows one in every 611 U.S. housing units with a foreclosure filing during the month of July.

“July foreclosure activity dropped 35 percent from a year ago, marking the 10th straight month of year-over-year decreases in foreclosure activity and the lowest monthly total since November 2007,” said James J. Saccacio, chief executive officer of RealtyTrac.

Not so fast

Wait a minute, skeptics are sure to say. Remember the robo-signing controversy that caused lenders to slam on the brakes when it comes to foreclosures? Aren't there millions of homes just waiting for a foreclosure notice?

True, but Saccacio says this delay just might prevent some of these impending foreclosures from ever taking place.

“It appears that the foreclosure processing delays, combined with the smorgasbord of national and state-level foreclosure prevention efforts — including loan modifications, lender-borrower mediations and mortgage payment assistance for the unemployed — may be allowing more distressed homeowners to stave off foreclosure,” he said.

To be clear, Saccacio said he is not suggesting the market is about to rebound. After all, he notes, this decline in foreclosure is not based on a recovering economy. If it were, that would be a cause for celebration. He sees the current housing market woes extending into next year and beyond.

“A stabilizing economy and improving job market are the long-term keys to a housing market recovery," he said.

Location, location, location

Meanwhile, housing continues to suffer in some areas of the country much more than others. Ten states accounted for 73 percent of U.S. foreclosure activity in July, led by California, where 56,193 properties had a foreclosure filing during the month — up four percent from the previous month but still down 16 percent from July 2010. Initial default notices in California were down 6 percent from the previous month, but REOs increased on a month-over-month basis for the second straight month and scheduled auctions were up 11 percent from the previous month.

There were a total of 22,377 Florida properties with foreclosure filings in July, down six percent from June and down 57 percent from July 2010. Initial default notices and scheduled auctions in Florida were both down on a monthly and annual basis in July, while REO activity increased eight percent from June but was still down 55 percent from July 2010. The month-over-month REO increase in July followed monthly increases in initial default notices and scheduled auctions in June.

An 18 percent monthly increase in foreclosure activity helped Georgia post the nation’s third highest foreclosure activity total in July. There were a total of 11,461 Georgia properties with foreclosure filings during the month, still down nine percent from July 2010. The overall increase in Georgia foreclosure activity was driven largely by a 25 percent month-over-month increase in REO activity.

Michigan foreclosure activity in July decreased 16 percent from the previous month and was down 42 percent from July 2010, but the state still documented the fourth highest state foreclosure activity total for the month — 10,894 properties with foreclosure filings.

Illinois REO activity increased 20 percent from the previous month, and the state documented a total of 10,627 properties with foreclosure filings in July. Texas REO activity increased 15 percent from the previous month, and the state documented a total of 10,571 properties with foreclosure filings during the month.

Other states with foreclosure activity totals among the nation’s 10 highest in July were Arizona (10,098), Nevada (9,930), Ohio (8,376) and Wisconsin (4,534).

An antitrust class action claims Apple conspired with five major publishers to raise the price of e-books, dominate the market and force Amazon to stop selling at a discount. The conspiracy worked so well that e-books now cost as much or more than paperbacks, the class claims, Courthouse News Service reported. 

The suit traces the history of e-books, noting that when Amazon introduced the Kindle back in November 2007, its “electronic ink” technology was such a hit that supplies of the original Kindle sold out in less than six hours.

Besides portability and instant delivery, e-books greatly reduce the costs associated with brick-and-mortar publishing. But the suit, filed in U.S. District Court in San Francisco, says large publishing houses quickly realized that e-publishing also represented a huge threat to their profit margins.

Amazon was selling Kindle e-books for $9.99 or less, while hardcover editions of the same books sold for more than $20. Faced with this threat to their business model, the suit says, publishers teamed up with Apple to “fight back in an effort to restrain trade and retard innovation.”

Restrain trade

Besides Apple, the suit names Hachette Book Group, HarperCollins, MacMillan, Penguin and Simon & Schuster. The named plaintiffs are Anthony Petru, of Oakland, Calif., and Marcus Mathis, of Natchez, Miss.

The suit charges the defendants with violating the Sherman Anti-Trust Act and various other anti-trust and consumer protection statues.

“Given Amazon’s first-mover advantage and ever growing installed user base, publishers knew that no single publisher could slow down Amazon and unilaterally force an increase in e-book retail prices. If one publisher acted alone to try and raise prices for its titles, that publisher would risk immediately losing a substantial (and growing) volume of sales,” the suit charges.

“Not wanting to risk a significant loss of sales in the fastest growing market (e-book sales), the publishers … solved this problem through coordinating between themselves (and Apple) to force Amazon to abandon its pro-consumer pricing.”

Support from Apple

The suit says the conspiracy would not have succeeded without Apple's support.

“Apple had strong incentives to help the [publishers] restrain trade and increase the price of eBooks. If Amazon continued to solidify its dominant position in the sale of eBooks, strong network effects would make it difficult to dislodge Amazon. Moreover, Amazon’s pro-consumer pricing meant that to enter the e-books market Apple would likely be forced to sell at least some e-books near or below its wholesale costs for an extended period of time.”

The Kindle was a threat not only to the publishers' business model but also to Apple's, the suit charges.

“Apple is competing to be – and has become – a dominant manufacturer of mobile devices, such as Apple’s iPod, iPhone and iPad devices. … Apple knew that if Amazon could establish the Kindle as the dominant e-book reader by subsidizing the purchase of e-books, Amazon could then use the Kindle platform (and its large installed user base) to distribute other digital media. Notably, Apple had successfully used a virtually identical strategy to gain a virtual monopoly on the distribution of digital music files through its iPod device and its associated iTunes store,” the suit argues.

The suit was filed by attorney Jeff Friedman of Hagens Berman Sobol Shapiro LLP, a Berkeley, Calif., law firm

If a company requires you to pay an advance fee before they perform a service, like selling your timeshare or helping you avoid foreclosure, chances are you're dealing with a scam.

Colorado Attorney General John Suthers is warning consumers in his state to beware of a company called RMI Associates, that he says is contacting consumers with an advance fee scheme.

According to Suthers, the company offered to help consumers recover their restitution associated with the Office of the Attorney General and the Federal Trade Commission’s recent lawsuit against the Dalbey Education Institute, a company suspected of using infomercials to deceive consumers into believing they could break into the promissory note business and get rich.

No affiliation

RMI Associates is in no way affiliated with the Office of the Attorney General or the Federal Trade Commission, Suthers said. Consumers who think they have restitution coming to them can visit the Office of the Attorney General’s Web site and file a complaint for free via www.coloradoattorneygeneral.gov/complaint.

“Consumers should not contract with or pay any fees to private companies in order to get their complaint submitted to state or federal authorities,” Suthers said.

Reloading

In the scam world, contacting the victims of a scam, offering to help them get their money back, is called “reloading,” and is not uncommon. And of course, the hallmark of all scams is the requirement of an advance fee.

Last year the Federal Trade Commission (FTC) toughened its rules in one area of advance fees. It now prohibits debt settlement and credit repair companies from collecting a fee before achieving any results for a consumer.  

State officials in Michigan who believe the state's medical marijuana law is being abused have revealed their strategy for revising the statute.

Miichigan Attorney General Bill Schuette, members of state and local law enforcement, prosecutors, representatives of the medical community and some members of the legislature have proposed a legislative package, including new laws to ensure safety on the roads and hold accountable criminals who abuse the state medical marijuana certification process.

Michigan is one of several states that has a law allowing marijuana to be prescribed for some medical uses, but Schuette maintains the law is so poorly written that it is being abused.

"This law has been hijacked by pot profiteers who threaten public safety on the roads and in our communities," said Schuette.

At a media event this week to announce details for the proposed legislation, Schuette introduced two Republican and one Democrat lawmakers who support the measure, along with Dr. Steven E. Newman, President of the Michigan State Medical Society, and various police officers.

Two laws at odds

Schuette noted confusing inconsistencies between the Michigan Motor Vehicle Code and the Michigan Medical Marihuana Act must be eliminated to preserve safety on Michigan roadways. A longstanding safety provision in the Michigan Motor Vehicle Code prohibits driving with any amount of marijuana in your system.

In contrast, the medical marijuana law prohibits only driving "under the influence of marijuana," a term which Schuette says is not defined in state law or by uniform scientific standards, and creates a different standard for medical marijuana users. This inconsistency, he says, has created confusion for law enforcement, and is currently under review by the Michigan Court of Appeals in the case, People v. Koon.

Schuette cited statistics recently released by the Michigan State Police which indicate that marijuana-related fatalities remain the most common drug-related automobile fatality, and that such fatalities are on the rise in Michigan.

"Driving with marijuana in your system is unsafe and jeopardizes the safety of our roadways," said Schuette.  "If you take drugs, don't take the wheel."

More tools for prosecutors

Schuette also proposed legislative reforms to the Penal Code that will give prosecutors and law enforcement the tools they need to crack down on criminals who exploit the loopholes of the medical marijuana law.

Schuette has proposed the creation of new crimes to crack down on criminal abuse of the medical marijuana certification system:

• Make it a felony for physicians to knowingly falsely certify a debilitating medical condition for patients seeking to use medical marijuana;
• Make it a felony to knowingly submit false information on an application for a patient or caregiver card;
• Make it a felony to knowingly alter a patient or caregiver card;
• Make it a felony to knowingly possess another person's card or to transfer or allow a person to use another person's card;
• Prohibit felons from being caregivers (Currently only those convicted of drug-related felonies are prohibited); and
• Make it a misdemeanor for a patient or caregiver to fail to report a lost or stolen card within seven days.

Schuette says the proposed regulation would also strengthen the hand of law enforcement, limit criminal access to medical marijuana, empower local communities to regulate marijuana facilities, ensure high standards for patient care, and avoid confusion and excessive litigation regarding insurance claims and coverage for medical marijuana users.

Schuette said he expects the bills to be introduced and considered by the legislature in the fall.

One of the never-ending complaints about cell phones is reception. If you aren't close to a tower -- or if towers in your area are overloaded -- you'll have bad or no service.

“My AT&T contract was up in January this year,” Connie, or Peru, Ill., told ConsumerAffairs.com. “I always had poor service at my home and at my mother in laws house, which is seven blocks north of mine. I went to AT&T when my contract was up this winter and inquired if I could get better reception and to look at an iPhone 3G. I was told that they had a new tower at St. Bede which is west of my home about 2 -3 miles and I should get reception now. Foolishly, I believed them, and have been having trouble since. They will not let me out of my contract without paying the early cancel fees.”

Unfortunately, Connie missed her opportunity to switch service providers in January. Consumers just can't rely on what sales personnel tell you about coverage. The only thing you can do is ask someone who lives nearby what provider they use and if they're happy. Even then it can be hit or miss.

Wrong number

Jennifer, of Niles, Ill., doesn't bank with PNC, but she talks to them several times a day. I seems when the data for a PNC customer was put into the system, someone mistyped that customer's phone number. The number in the system happens to be Jennifer's cell phone number.

“This customer of theirs has been defaulting on a line of equity loan since 2010, so, the PNC Bank collection representatives have been calling me every time ever since Jennifer said. “It is now 2011 August, and I still get calls from them several times throughout the day.”

Jennifer said she has tried explaining the problem to the callers, and even their supervisors, to no avail. The calls, several times a day, keep coming.

“They have been wasting my cell phone minutes time after time on top of wasting my time,” Jennifer said.

If Jennifer has tried to resolve the matter with supervisors without success, sadly, they only thing left for her to do is change her cell phone number.

Take a number

Whenever you cancel a service, the rep who is helping you should give you a confirmation number. Write it down, because you may need it later.

“In June I called DIRECTV to cancel my service as of July 1, 2011,” Susan, of Bethesda, Md., told ConsumerAffairs.com. “I spoke to a nice lady who told me my billing cycle ended on the 21st of each month. So I told her I would average out my bill for the ten days I would be using their service and sent in that amount, $29.80. Today I received a bill in the amount of $151.84.”

Susan said she called and was told DIRECTV had no record of her cancellation.

“I told them I had been a good and loyal customer for years and wanted $122.04 removed from my bill,” Susan said. “I was told this was impossible. I than asked to be transferred to someone in the complaint or billing department. I was transferred to Angie who told me there was no solution.

Without a confirmation number, there probably isn't a way for Susan to show that she cancelled the service when she said she did. When cancelling a service online, make sure you print the confirmation page and file it away.

Peeved parent

David, of Wichita Falls, Tex., is angry at Orbitz and says he defies the company to challenge the facts.

“I had booked an airline/hotel/rental car package through Orbitz several weeks in advance and received an itinerary,” David said. “A few days prior to my flight, the itinerary was changed to the next day. I could not fly out the next day -- I would miss my only child's wedding, which is exactly what happened! To add insult to injury, Orbitz refused to assist me in obtaining even a partial refund or getting the flight rescheduled so I could at least visit the happy couple after the honeymoon.”

Yes, travel plans can sometimes get scrambled, but it seems you increase the odds of that happening when you try to do everything through one Internet site. Better to make your reservations directly with the airline, hotel and rental car or visit your local travel agent – especially when the travel is to a once-in-a-lifetime event.

Illinois Attorney General Lisa Madigan today called on the Consumer Product Safety Commission to immediately recall all fuel gel products in response to alarming reports of consumers who’ve suffered severe burns in accidents involving fuel gel.

Madigan also called on the CPSC to immediately ban the sale of fuel gel products and urged consumers to stop using the dangerous items.

“Recalling these items one by one won’t cut it,” Attorney General Madigan said. “In the midst of the summer season, many of these fuel gel products are already in people’s homes and backyards. We need to work quickly to alert consumers about the extreme dangers they pose.”

Earlier this summer, Madigan alerted consumers to the risk of severe and even life-threatening burns when using fuel gel products. The CPSC soon after recalled one fuel gel product made by Napa Home & Garden Inc.

The company has since pulled its products from store shelves, but fuel gel products by other manufacturers, including BirdBrain, Inc., Windflame Inc. and Jason Metal Products Inc., continue to sell online and in stores around the country.

Firepots

Fuel gel is poured into a firepot or similar vessel for use as a decorative flame or outdoor light. Madigan said reports have shown injuries resulted when fuel gel spilled or was poured into a pot in attempt to light or re-light the flame, causing the product to explode into a fireball.

When the gel contacts a person’s skin, it reacts similarly to napalm, making it nearly impossible to extinguish. Victims and witnesses indicate that traditional ways to put out a flame, such as dropping and rolling, don’t work. The flaming gel ignites other materials and does not stop burning.

Madigan said her office has received accounts of three fuel gel-related accidents in Illinois, and dozens of other injuries have been reported around the country.

In the Chicago suburbs last year, a 3-year-old girl was critically injured when a firepot containing fuel gel manufactured by BirdBrain Inc. spilled, causing severe burns to her head and face. Last month, a Chicago man suffered serious and extensive injuries when fuel gel manufactured by BirdBrain exploded, causing burns to his face and arms. Madigan said a mother of four from downstate Illinois was also reportedly burned when a fuel gel product exploded at a backyard birthday party.

Birdbrain

With the three known accidents in Illinois involving the BirdBrain brand, Madigan today subpoenaed the Ypsilanti, Mich.-based company, asking for any incidents reported to the company and for its Illinois sales and distribution information.

Madigan urged Illinoisans to immediately stop using fuel gel products. Any consumer who has suffered an injury in a fuel gel-related incident should immediately contact the Consumer Product Safety Commission.