Current Events in October 2011

Think of all the consumer products that promise to make you look younger, as well as those that promise to restore and maintain health.

But a noted cardiologist says the key to feeling young and healthy and adding years to your life las less to do with drugs and other products and more to do with how you live.

Live a decade longer

In fact, his research suggests that implementing healthy lifestyle strategies could help people add a decade or more of healthy years to the average lifespan and save the economy billions of dollars as a result of reduced cardiovascular disease.

In a speech at the Canadian Cardiovascular Congress in Vancouver over the weekend, Dr. Clyde Yancy said people who follow seven simple steps to a healthy life can expect to live an additional 40 to 50 years after the age of 50.

Seven simple lifestyle factors

"Achieving these seven simple lifestyle factors gives people a 90 per cent chance of living to the age of 90 or 100, free of not only heart disease and stroke but from a number of other chronic illnesses including cancer," said Yancey, a professor of medicine and chief of cardiology at the Northwestern University's Feinberg School of Medicine. He is also the past-president of the American Heart Association.

Yancey said people who follow these steps can compress life-threatening disease into the final stages of life and maintain quality of life for the longest possible time. He predicts that, if we act now, we can reverse the tide by 2020.

2200 deaths per day

According to 2007 data, some 2200 people in the U.S. die each day from cardiovascular disease. According to Canada's Heart and Stroke Foundation, every year in Canada about 250,000 potential years of life are lost due to heart disease and stroke, which are two of the three leading causes of death in Canada.

According to Yancy, the seven secrets to a longer, healthy life are as follows:

• GET ACTIVE: Inactivity can shave almost four years off a person's expected lifespan. People who are physically inactive are twice as likely to be at risk for heart disease or stroke.
• KNOW AND CONTROL CHOLESTEROL LEVELS: Almost 40 per cent of Canadian adults have high blood cholesterol, which can lead to the build up of fatty deposits in your arteries, increasing your risk for heart disease and stroke.
• FOLLOW A HEALTHY DIET: Healthy eating is one of the most important things you can do to improve your health – yet about half of Canadians don't meet the healthy eating recommendations.
• KNOW AND CONTROL BLOOD PRESSURE: High blood pressure - often called a 'silent killer' because it has no warning signs or symptoms - affects one in five Canadians. By knowing and controlling your blood pressure, you can cut your risk of stroke by up to 40 per cent and the risk of heart attack by up to 25 per cent.
• ACHIEVE AND MAINTAIN A HEALTHY WEIGHT: About one-third of American adults are classified as obese. Almost 60 per cent of Canadian adults are either overweight or obese, major risk factors for heart disease and stroke. Being obese can reduce your life span by almost four years.
• MANAGE DIABETES: Diabetes increases the risk of high blood pressure, atherosclerosis (narrowing of the arteries), coronary artery disease, and stroke, particularly if your blood sugar levels are poorly controlled.
• BE TOBACCO FREE: Thousands die prematurely each year due to tobacco use, and thousands of non-smokers die each year from exposure to second-hand smoke. As soon as you become smoke-free, your risk of heart disease and stroke begins to decrease. After 15 years ,your risk will be nearly that of a non-smoker.

For years we have tried to caution consumers about phony international sweepstakes that try to make you believe you have won a fortune, just before hitting you up for a “processing fee.” Over the weekend we heard from Richard, a police officer in Catskill, N.Y., who is investigating Winners International Sweepstakes.

“I received a complaint from a subject who stated she received a phone call from a 'James Rose' from Winners International Sweepstakes.,” Richard told ConsumerAffairs.com.

The call came from a 718 area code.

“The male with a heavy accent advised her she had won $1.5 million dollars and needed to send a check in the amount of $255 as a processing fee,” Richard said. “I called the subject back and he provided me with a mailing address to send the check:

William Boyle
36 Washington Pk
Carver, MA 73801

Richard said the Zip code is for Oklahoma and the phone number goes to New York City.

“Please contact your local police agency and provide them with information if you receive a phone call,” Richard advises.  Thanks, Richard, but it's unlikely local police will be able to get to the bottom of this.  

Unnecessary detour

Sylvia, of Tyler, Tex., is a good example of why it's always important to be very careful when you are conducting an online search for a hotel. It's easy to encounter a case of mistaken identity.

“When I thought I was calling the Hampton Inn in Manheim, Penn., I actually was calling Travelnow.com,” Sylvia said. “They told me that there were no rooms available and set me up in another hotel, 40 minutes away on a dark country road. My co-workers all checked into the Hampton Inn and were told that there were 20 rooms available. When I tried to transfer my reservation with the help of the Hampton Inn's Front Desk Manager, Travelnow refused to accommodate my transfer and charged me $286.04.”

Sylvia was correct to try and book her hotel directly and not use a third-party booking site. Unfortunately, she probably clicked on a sponsored link rather than the link for the hotel in which she wanted to stay. That's why it's important to check the URL very carefully.

Not mincing words

Dave, of Laurel, Mont., reminds us of one of those “man's man” type characters you sometimes see on commercials for inexpensive beer or power tools. Slow to get angry, but at some point he's not going to put up with a nuisance, such as someone trying to push a Kirby vacuum cleaner on his wife.

“After an hour the salesman was asked to leave and he acted like he hadn't heard me,” Dave told ConsumerAffairs.com. “I again asked him to leave and he ignored me and continued to talk to the wife. I ordered him out of my house and he ignored me again. The ***** just didn't get the message. After I said some physical harm may come to him, he started packing his wares, the whole time saying what a shame it was we were using an inferior vacuum and living in filth. As he was heading out the door he got on a cell phone and talked to somebody and said that I could have the machine for $799.00 and that was his discount for us. I said if the machine was a dollar I would not buy it.”

And that's how you handle an unwelcome vacuum cleaner salesman.

So, if you ran a phenomenally successful company that completely dominated your niche, would you tempt fate (and the antitrust regulators) by buying one of your few remaining competitors?

Of course you wouldn't.  And that's probably why you're not running Google, which is said to be weighing a bid for Yahoo, according to The Wall Street Journal.  That would put it on a collision course not only with antitrust regulators but also with Microsoft, which also is looking lustfully in Yahoo's direction.

Both suitors have been spurned before, which seems only to have increased their ardor for Yahoo, whose original claim to fame was its search engine.  That lasted about as long as it took for Larry Page and Sergei Brin to get Google tuned up and out the door.

Since then, Yahoo has been getting by more or less on its looks, evolving into a content-rich portal that until recently produced big bucks in the display (i.e., banner) advertising that eluded Google during its adolescence.  

But Google has since grown up, bought DoubleClick and is becoming a dominant player in display advertising on its own site and on its network of "partner" sites that run ads provided by Google for a share of the proceeds.

Big Daddy says no

Those able to remember back a few years may recall that in 2008, Google and Yahoo tried to link up to jointly sell search advertising only to be quickly and firmly rebuffed by the antitrust czars.  On the rebound, Yahoo fell into the arms of Microsoft, crafting a 10-year search partnership that helped launch Bing, Microsoft's answer to Google's search engine.

Google currently faces antitrust scrutiny simply because -- like an overweight passenger trying to squeeze into a seat on Southwest Airlines -- it so dominates its market that its skinnier seatmates complain they are being unfairly shoved into the aisle.

And Microsoft?  It's fashionable to think of Microsoft as a big dumb company that can't do anything right but it's worth remembering that it's as dominant in the desktop software field as Google is in online search advertising and has done what evern its severest critics say is an admirable job of making Bing into the No. 2 search engine in just a few short years.

Microsoft CEO Steve Ballmer remarked the other day that Microsoft may have been "lucky" that its 2008 bid to buy Yahoo for $47 billion fell apart.  It wasn't quite clear what he meant by that, but most observers thought he meant just what it sounds like he meant -- that he would be able to snag Yahoo this time around for a lot less, now that it's damaged goods.

Much pain, no gain

Yahoo, which recently fired its CEO, has been unable to grow its advertising business in recent years, even as the overall market has grown 20%.

It's generally thought that part of Yahoo's problem is that as a publicly-traded company, it's difficult to take the long-term view at the expense of quarterly returns.  While Google, Microsoft and the many others kicking Yahoo's tires are also public, they could presumably achieve major cost savings by eliminating duplicate layers of managers and technocrats.

Google, of course, is so successful with its keyword-driven advertising that it is constantly looking for more inventory -- more pages into which it can insert ads.  

The deal is probably worth the billions it would cost Google just to add inventory but if it also amounts to a poke in the jaw for Ballmer & Co., that would make it well worth the cost to the Messrs. Page and Brin.

A Utah credit union has stopped selling payday loans after being featured prominently in news reports.  Mountain America Credit Union had been offering its members a "MyInstaCash" loan that topped out at an 876 percent annual interest rate for a $100, five-day loan.

The unsavory practice was revealed in an investigation by the nonprofit online investigative reporting site iWatch News.

Payday loans are basically short-term, unsecured loans which are usually due when the borrower receives his or her next paycheck. Consumer groups call them predatory and say lenders charge exorbitant interest, often trapping borrowers in a cycle of debt that they can’t escape.

Mountain America's new "Helping Hands” loan complies with rules set by the National Credit Union Administration that permit federal credit unions to lend at a maximum 28 percent annual rate provided they follow certain guidelines, such as giving customers more time.

One of several

Mountain America, a large credit union with $2.8 billion in assets, is one of several that skirted the interest-rate-cap rule by partnering with third-party lenders that financed the loans. Customers were directed to these lenders through a link on the credit unions’ websites.

Those lenders would then turn over a finder’s fee, or a cut of the profits, to a separate business, set up by the credit union.

The third-party lender that backed Mountain America’s payday loans was Capital Finance, LLC, located just a few miles from Mountain America’s headquarters in a Salt Lake City suburb, iWatch News reported.

An NCUA spokesman said credit unions are permitted to direct customers to payday lenders from their websites in exchange for a commission fee.

Not just CUs

Credit unions aren't the only institutions that are finding it hard to resist the allure of the sky-high interest rates payday loans generated. Banks and even Indian tribes are getting into the act.

Big banks began muscling their way into the business last year, charging an average 365 percent APR, a study found. The report from the Center for Responsible Lending finds that, on average, a bank payday loan is repaid within 10 days, eats up 44 percent of a borrower’s next deposit, and often creates the need for a subsequent loan.

As a result, borrowers stay in debt an average of 175 days, paying over $900 in interest to borrow $500 for less than 6 months.

The entry of American Indian tribes into the business is an even bigger frustration to regulators' efforts to curtail payday lending. 

Because they are sovereign nations under their treaties with the U.S., Indian tribes are immune to state interest-rate caps and regulations imposed on the payday loan industry. They can even operate in the 12 states that have banned payday lenders outright.

It's not, of course, the Indian tribes themselves who are opening storefront and Internet loan operations. Instead, existing lenders “move” their headquarters to an Indian reservation,usually in name only,and share their revenue with tribal leaders.

We all know that Barbie, Mattel's iconic doll, has always been on the cutting edge of fashion and trends. So, should anyone be surprised when the new Barbie sports a tattoo?

“Tokidoki Barbie” has the familiar hair style and face, but the body ink is definitely a new feature. She has exotic tattoos in several places, including her neck, shoulder and arms. WCBS-TV in New York interviewed a number of parents who definitely don't like the doll's edgy new look.

“I don’t think it’s appropriate for little girls to be having Barbies with tattoos all over,” one parent, Reye Griffith, told the station's reporter.

But parents are probably over-worrying the issue, since it's unlikely their child will see one in advertisements. The Tokidoki Barbie is a collectible doll, which means you won't find it in the toy aisle at Toys R Us. It will sell for around $50, almost exclusively online, making it a lot more expensive than a regular Barbie.

Even so, a check of the Barbie collectors' site barbiecollector.com shows the doll is sold out. The site's description of Tokidoki Barbie says she is “always ready for cutting edge fashion.”

“She pops on a pink miniskirt, logo leggings and black top with signature skull heart and bones, carries a large bag from the brand, then adds bracelets, a belt, and sky-high sparkly silvery shoes,” the site says. “This funky fashionista features trendy tattoos and a pink bob. With cactus friend, Bastardino, by her side, she’s ready for fun in fashion-forward form!”

The original Barbie made her American debut in 1959 and was the brainchild of Ruth Handler, who was married to one of Mattel's co-founders. Ironically, neither her husband nor the Mattel board was interested at first. Only her persistence led to the creation of what became one of the most successful products in the company's history.

Electric Motion Systems  is recalling about 70 rechargeable lithium-poly batteries. The battery can overheat and catch fire.

The company is aware of three reports of the battery catching fire. One incident resulted in a consumer receiving minor burns.

The recalled product is a black lithium-poly 37 volt, 10Ah battery used in electric bicycles and propulsion systems. The battery is 8.75 inches x 5.75 inches x 3.25 inches. “E+” appears on a label on the side of the battery. Recalled batteries have “EMS# 11819-101” at the top right of the label with a serial number between 10001 and 10200. The batteries were sold on their own and as part of the E+ Flex Kits. The kits are complete propulsion systems.

The batteries were sold by bike shops nationwide and the company’s website, from October 2009 through November 2010. Batteries sold for between $900 and $1,000 and the E+ Flex Kits were sold for between $2,325 and $2,675. They were made in China.

Consumers should immediately stop using the battery packs and contact Electric Motion Systems, LLC. If you own a flex kit, you will receive a free battery pack installed on a new front wheel for your electric bike. If you purchased just the battery, Electric Motion Systems, LLC will provide you one of several choices including a new, free frame to fit with your existing electric propulsion system.

For additional information, contact Electric Motion Systems, LLC toll-free at (877) 824-5339 between 9 a.m. and 5 p.m. ET Monday through Friday, visit their website at www.epluselectricbike.com or e-mail the company at info@epluselectricbike.com. The company is contacting its customers directly

A Food and Drug Administration (FDA) chemist has pleaded guilty in an insider trading scheme that relied on confidential FDA data.

Cheng Yi Liang, 57, of Gaithersburg, Md., entered a guilty plea to one count of securities fraud and one count of making false statements, related to a $3.7 million insider trading scheme that spanned nearly five years. Liang appeared before U.S. District Court Judge Deborah K. Chasanow in the District of Maryland.

According to court documents and testimony Liang has been employed as a chemist since 1996 at the FDA’s Office of New Drug Quality Assessment (NDQA).

Through his work at NDQA, Liang had access to the FDA’s password-protected internal tracking system for new drug applications, known as the Document Archiving, Reporting and Regulatory Tracking System (DARRTS), which is used to manage, track, receive and report on new drug applications.

Liang reviewed DARRTS for information relating to the progression of experimental drugs through the FDA approval process. Much of the information accessible on the DARRTS system constituted material, non-public information regarding pharmaceutical companies that had submitted their experimental drugs to the FDA for review.

“Mr. Liang used inside information about pharmaceutical companies—information he had access to solely because of his position at the FDA—to pocket millions in illicit profits,” said Assistant Attorney General Lanny A. Breuer. “In a shocking abuse of trust, Mr. Liang exploited his position as a chemist in the FDA’s Office of New Drug Quality Assessment to cash in, using the accounts of relatives and acquaintances to hide his illegal trading. Now, like many others on Wall Street and elsewhere, he is facing the significant consequences of trading stocks on inside information.”

Liang admitted that from approximately July 2006 through March 2011, he used the inside information he learned from DARRTS and other sources to trade in the securities of pharmaceutical companies. Liang used accounts of relatives, including his son, and acquaintances to execute the trades (referred to as the controlled accounts).

When the inside information was positive about a company’s product, Liang used the controlled accounts to purchase securities. When the inside information was negative, Liang would make trades in anticipation of the stocks’ downward movement.

Liang admitted that he used these controlled accounts to execute trades to profit from the change in the company’s share price after the FDA’s action was made public, resulting in total profits and losses avoided of more than $3.7 million.

For example, on May 21, 2010, the FDA accepted Clinical Data Inc.’s application for Viibryd, an anti-depressant. According to court documents, on Jan. 6, 2011, HHS-OIG installed software on Liang’s work computer, allowing it to collect screen shots from that computer, which revealed Liang regularly accessed the DARRTS system and reviewed information regarding Clinical Data’s drug Viibryd.

Between Jan. 6, 2011, and Jan. 20, 2011, Liang purchased a total of 46,875 shares of Clinical Data stock using the controlled accounts. After the markets closed on Friday, Jan. 21, 2011, news of the FDA’s approval of Viibryd was reported. Clinical Data’s stock, which had closed that day at approximately $15.03 per share opened the following Monday, Jan. 24, 2011, at approximately $24.76 per share. Liang then sold all 46,875 shares of Clinical Data stock in the controlled accounts, netting a total profit of approximately $384,300.

Mysterious unauthorized charges on your credit card bill can be infuriating, and they usually require some effort to get them removed. Don, of Denver, recently avoided one, but just barely.

“I got an email from my credit card company indicating that CheapTickets.com tried to charge my card $6.99,” Don told ConsumerAffairs.com. “I never authorized such a charge, and when I called Cheaptickets for an explanation, and how they got my card number, they refused to answer my questions, and evenutally they hung up on me. I never made a purchase on their site, nor even attempted to do so.”

This is how a situation like this could have happened: Cheaptickets.com most likely had a third-party marketing arrangement with another company, allowing them to market to that company's customers at the end of a transaction. While the law makes clear that these offers must carrying “clear and conspicuous terms,” many don't. And consumers would likely overlook them if they did.

In Don's case, he probably had just finished a transaction with Company A, in which he had used his credit card. When a pop-up “free” offer from a company like CheapTickets.com came along, he had no reason to believe that company could charge his credit card. What he didn't know is that third party marketing agreement gives CheapTickets access to Don's credit card information that he gave to Company A. Don didn't mention who his credit card company is but they deserve a shout-out for catching this before it happened.

No changes

Online travel booking sites have been around for more than ten years but some consumers still don't understand how they work. For example, RB, of Salt Lake City, Utah., was confused and angry when she couldn't change a reservation

“I rented a car through Priceline for a trip to Tennessee,” RB said. “My work schedule changed and I could not travel on the original dates, so I called to see if the car rental company could change the reservation. They told me I would have to contact Priceline. I called Priceline and supposedly spoke with a supervisor. They refused to help as well. They said there is no way to change or delete a reservation.”

Sorry, RB.  This is pretty much standard operating procedure. In exchange for a discount, you give up the right to cancel or modify your reservation. Thats why, if you think your plans are subject to change, you should always book directly with the hotel, airline or rental car company.

Slow response

Mogli, of Glennwood Springs, Colo., has a somewhat unusual problem. He paid off the first lien on his Washington Mutual mortgage in 2002 but in the almost decade since, has not been able to obtain a release.

“The title company that paid off the mortgage has been trying to obtain a release for a first lien DOT since January 28, 2002, almost ten years,” Mogli told ConsumerAffairs.com. “To date we have not received a release from Chase, even though they submitted plenty of proof of payment in full on January 28, 2002. Back then it was Washington Mutual. What to do?”

This sounds like a tough one because a lot of years have passed and the original company has been sold. But if Mogli still has his loan account number, he should try contacting Chase Mortgage, which acquired Washington Mutual, and request a copy of his last loan statement. That document should show a zero balance, which might convince someone at Chase to send out the release. Mogli needs to clear this up before he can refinance his property.

It's clear from complaints to ConsumerAffairs.com that flat-screen TV manufacturers have a few quality issues yet to be ironed out ... and also that consumers are investing way too much money in home entertainment systems.

“We contacted Samsung because our 40-inch Samsung flat screen, purchased on June 23, 2008, would not power on,” Gayle, of Ivroyton, Conn., told ConsumerAffairs.com. “We paid $1,000 for this TV, a little more than 3 years ago, and it is no good to us unless we spend more money on it. That, I believe, is throwing good money after bad."

And it's not just one brand of TVs that are causing consumers heartburn.

“I purchased a Sony in September 2009,” Kevin, of East Setauket, N.Y., told ConsumerAffairs.com. “Within 15 months, lines started to appear on the bottom of the screen. After a few minutes of warm time, the issue would resolve itself. The warmup time has been getting longer every day until it is now a persistent problem, interfering in viewing the screen.”

Capacitor plague

Then, there is the issue of capacitors going bad after two or three years of use, a condition known in the repair industry as “capacitor plague.” While the replacement of capacitors is not a hugely expensive repair, consumers are understandably irked that the TV set they purchased for more than $1,000 needs a repair after a few months of use.

As long as consumers continue to purchase these expensive, large screen TVs manufacturers have little incentive to improve them. But what if consumers decided it just isn't worth trying up that kind of money in a device that could become useless after a few months? Can you say no to a giant TV that takes up half the wall in the den?

Here are a couple of inexpensive options.

1.  Small is beautiful

While it won't provide a “theater” experience or impress your friends, a small HD set can at least allow you to watch your favorite shows, sports and movies at a fraction of the cost.

Craig produces a 15 inch 720p HD set, for example, that sells for just $79. You can get them at CVS, Best Buy, and a number of other chain stores.

While Craig is not known as a top-end manufacturer, the 15-inch CLC501 produces a remarkable high-definition image and very good audio. We have tested one over the last few months with surprisingly good results.

Best feature

The best feature about the TV, however, is its price. At $79, there is no investment in a set that could require a future repair costing hundreds of dollars. If and when the Craig blows a capacitor, you simply dispose of it and buy another one.

As for its small size, it all depends on how far you are from the screen. After all, people are now watching movies on their smartphones and tablets these days.

Yes, it's nice to watch a game or a movie on a theater-sized screen, but at what cost? Until manufacturers are able to reliably produce sets that give eight to ten years of trouble-free use, maybe consumers should sit a little closer to the screen and pocket the savings.

2. Use a monitor

Here's an alternative suggestion from our Truman Lewis: use an LCD computer monitor.  It's basically a TV without the tuner and usually with only a marginal sound system. We don't hear about capacitor plague in monitors, and have never experienced it, perhaps because their internal electronics are simpler -- not as many heat-generating parts crammed into a small space.

Assuming you have a cable or satellite TV box, you don't need a tuner, since the channel selection is taken care of by the cable box.  Most decent monitors come with HDMI and component video inputs and many will deliver 1080p resolution, which is "true" high-def. 

You can find a 24" or 25" monitor for less than $150 at sites like Geeks.com and Amazon.com. Remember to search for "computer monitor," not TV.  Be sure to check shipping charges; some sites charge much more than others for shipping.

This photo shows Truman's video set-up at his Burbank, Calif., apartment.

A notorious cheapskate, Truman uses an ASUS computer monitor that he bought for less than $200, a compact Denon stereo system (about $200) and an LG DVD player which also receives Netflix and other streaming video sources (less than $100).  A Charter Cable DVR  and an IKEA cabinet (less than $100) round out the package, which does  everything Truman wants it to do. 

Truman likes to say he assembles most of his work-related and entertainment packages out of the junk box.  In this case, the ASUS computer monitor was used in Truman's office for a year or so before being conscripted into providing evening entertainment.  The stereo system is a few years old and the DVD player was picked up cheaply during a going-out-of-business sale at a local retailer.

The advantage of building a system this way is that if one component fails, you can simply pitch it and buy another one for a few hundred dollars.  You don't have to throw out the audio system because the LCD screen dies, in other words.

This does require a little tinkering and, until you figure out which cable does what, you may find yourself trudging back and forth to Home Depot to buy the right cable but it's basically pretty foolproof.

You may have to manually switch between your cable and DVD feeds using the switch on the monitor instead of a handheld remote but this is a small price to pay for the cost savings.

Three final hints from Truman:

• Skimp on everything else but buy a good battery back-up/surge protector (not shown in the photo).  Electronic equipment is delicate.
• Keep it cool.  Don't stack components on top of each other and don't put the system in direct sunlight.  Heat kills circuit boards and components.
• Buy cheap cables.  The pretend geeks at Radio Shack will tell you you need an $80 HDMI cable.  Hogwash.  Amazon has HDMI cables for less than $5 and so do stores like Home Depot, Best Buy and PC Richard.  

There's a lot of information on the front of food packages, but how  useful is it? The Institute of Medicine (IOM) thinks it could be a lot more useful -- and concludes in a study that a lot of what's now out there leads more often to confusion than to enlightenment.  

In fact, the Institute says it's time to move away from front-of-package systems that mostly provide nutrition information on foods or beverages but don’t give clear guidance about their healthfulness, and toward one that "encourages healthier choices through simplicity, visual clarity, and the ability to convey meaning without written information."

What would make it clearer?  Maybe some pictures.  

The report recommends that the Food and Drug Administration (FDA) develop, test, and implement a single, standard symbol system to appear on all food and beverage products, in place of other systems already in use.

The IOM says a symbol system should show calories in household servings on all products. Foods and beverages should be evaluated using a point system for saturated and trans fats and sodium, and added sugars. The more points a food or beverage has, the healthier it is.

Eminently sensible

"This system would encourage food and beverage producers to develop healthier fare and consumers to quickly and easily find healthier products when they shop," the Institute said.

This sounds pretty good to healthy food crusader Michael F. Jacobson, who heads the Center for Science in the Public Interest.  He calls it "eminently sensible" but predicts it will be roundly condemned by food manufacturers.

"A simple icon with 3, 2, 1, or zero check marks would give shoppers at-a-glance information about nutritional booby traps lurking inside packaged foods," Jacobson said.

"The IOM’s proposal is far preferable to the voluntary 'Facts Up Front' labeling program that the grocery industry is rushing to market," Jacobson said. "The industry hopes to preempt more consumer-friendly requirements by the FDA. The industry’s complex scheme requires consumers to consider the amounts of calories and four to six nutrients, without any numerical score or useful symbols to convey a food’s nutritional value."

Jacobson said the IOM’s approach still has holes that the FDA would have to address. For instance, he said, it gives no consideration to foods’ vitamin, mineral, fiber, or protein content. Also, white bread, whole wheat bread, broccoli, artificially sweetened soft drinks, and artificially colored and flavored diet Jell-O would all have top scores of 3.

"Still, the FDA should promptly assign a task force to develop a mandatory front-of-package labeling regulation based on the IOM’s advice," Jacobson said.

Facial recognition technology is starting to spook out privacy activists as it is increasingly being used in ways no one dreamed of just a few years ago. Think Facebook tags.

Sen. John D. Rockefeller (D-W.Va.) thinks it's time for the Federal Trade Commission (FTC) to study the issue and recommend legislation to protect privacy.  Rockefeller, chairman of the Senate Commerce, Science and Transportation Committee, notes the technology is being used by private firms as well as police agencies.

In a letter to the FTC, he cites mobile applications such as SceneTap, which "tracks the male/female ratio and age mix of the crowd [in bars]" and digital advertising at the Venetian Resort in Las Vegas that tailors ads to the person standing in front of the display based on recognition of that person’s age and gender.

“I ask that the commission provide a report to the [committee] following the workshop, and that this report include potential legislative approaches to protect consumer privacy as this technology proliferates,” Rockefeller wrote to the FTC.

The FTC is already working on updating its Children’s Online Privacy Protection Act (COPPA), proposing a new rule that would broaden protections to ensure parental notification and parental approval of uploaded pictures of children.

“Given the prevalence and popularity of posting photos, videos and audio files online, the commission has reevaluated the privacy and safety implications of such practices as they pertain to children,” the draft said.

Law enforcement

Meanwhile, the FBI is working to activate a nationwide facial recognition service that will be available to law enforcement  authorities in select states by January 2012.

Officials will be able to upload a picture of an unknown person and receive a list of mug shots ranked in order of similarity to the features of the subject in the photo. The tool will search among the 10 million images stored in the FBI's biometric identification system for suggestions, but will not provide a direct match.

The FTC has scheduled a workshop on facial recognition technology on December 8, 2011, and said irt will report back to Rockefeller after the workshop.

There has probably never been a greater need for education and retraining, but the cost of obtaining it is soaring. The cost is especially high if you have to borrow the money.

A new report from the Federal Reserve Bank of New York says U.S. students are borrowing a startlingly large amount of money to pay for an education, strapping themselves with a huge debt as they begin careers when jobs are hard to come by.

Students and workers seeking retraining are borrowing extraordinary amounts of money through federal loan programs, potentially putting a huge burden on the backs of young people looking for jobs and trying to start careers. The Fed reports new student loans totaled more than $100 billion in 2010, and by the end of this year the amount of all outstanding student loan debt will reach $1 trillion.

Doubled in five years

While consumers have cut credit card and mortgage debt lately, total outstanding student debt has doubled in the last five years.

The debt, and the problems is causes, is a common theme in complaints to ConsumerAffairs.com. Tiffany, of Cumberland, Md., said her mother's parent loan through Sallie Mae to pay for her education started out at $9,000 and was placed on a “deferment.”

“Today we got another statement in the mail saying we owe a total of almost $20,000,” Tiffany told ConsumerAffairs.com. “I don't understand how this company can add interest during a deferment that lasts until May of 2012! It'll take me about ten years to pay off the 20 grand and I will never be able to own a car or move out of my mother's house, at least not until I'm 32 years old anyway.”

The cost of private education has skyrocketed in recent years as schools have spent money to attract the most gifted students. Costs at public colleges and university have also risen, in part because state funding hasn't kept pace with the spending.

For-profit colleges

The growth of for-profit colleges has also helped run up the loan totals. Theresa took out student loans to attend the for-profit University of Phoenix, but now has buyer's remorse.

“I received a bachelors degree in business administration from UOP,” Theresa told ConsumerAffairs.com. “Potential employers do not view University of Phoenix as a scholastic institution. My degree is worthless in the business world. It is a joke. The college credits will not transfer to other institutions. And I have a student loan debt of over $30,000.00. The time and money spent to obtain what I considered one of the biggest achievements were all wasted.”

Students who leave school with crushing debt will not easily be able to default. Congress has written the law so that the debt must eventually be paid. It doesn't even go away in bankruptcy. That means millions of people will be working a good portion of their adult lives to pay back their loans.

High default rates

The government says the highest default rates are on loans for for-profit institutions, which tend to serve a low-income student body. Recent immigrants who are trying to enhance their workplace skills also often turn to these institutions.

Financial advisors, meanwhile, urge prospective students to consider a community college, which is acknowledged as one of the best values in education. The cost of two-years at a community college is often a fraction of what it costs a traditional four-year or for-profit colleges.

If your pediatrician has prescribed medication to counter stomach acid in your infant, you might want to ask him or her to reconsider.

A researcher writing in the Journal of Pediatrics warns that prescribing acid-supressing drugs for spitting up, irritability and unexplained crying may be doing more harm than good.

Dr. Eric Hassall, Staff Gastroenterologist at Sutter Pacific Medical Foundation in San Francisco, Calif., is also an advisor to the U.S. Food and Drug Administration (FDA). Although the FDA has only approved the use of acid-suppressing drugs, such as proton pump inhibitors (PPIs), in children over the age of one year, the use of PPIs in infants less than 12 months old has greatly increased in the last decade, he says.

Reflux not the same as in adults

Hassall contends that most "reflux" in infants is not acidic because stomach contents have been buffered by frequent feedings.

"However, in the absence of better information and physician guidance and fed by advertising and misinformation on the Internet, distressed parents take their concerns to doctors, who very frequently comply and prescribe acid-suppressing medications for symptoms and signs that, in most cases, are not GERD," he writes.

In fact, Hassall says studies have shown that PPIs are no better than placebo for most infants with symptoms of spitting up, irritability, or unexplained crying, which may be because the medications are frequently prescribed for symptoms that are not gastroesophageal reflux disease (GERD), the presumed ailment.

According to Hassall, babies cry and spit up. It's normal, and parents shouldn't overreact.

Medicalizing normality

"We are medicalizing normality," Hassall said. "In most infants, these symptoms are 'life,' not a disease, and do not warrant treatment with drugs, which can have significant adverse effects."

In fact, gastric acid is an early line of defense against infection and is important for nutrition; by prescribing acid-suppressing medications to infants without GERD, pediatricians are putting their patients at a higher risk for infections like pneumonia and gastroenteritis, Hassall said.

The use of PPIs in infants can also lead to abnormalities in the levels of essential minerals and vitamins, such as magnesium, calcium, and vitamin B12.

Sony is recalling 1.6 million Bravia flat-panel TVs sold worldwide since 2007 because they may melt or catch fire. Kieth, of Montague, Mich., has a different problem with his set.

“I bought a Sony Bravia KDL-46W3000 a couple of years ago and am experiencing the same problem that many others are complaining about,” Kieth told ConsumerAffairs.com. “When you turn the television on there are horizontal lines and half of the screen is dark and color is distorted. It takes approximately 30 minutes for it to warm up enough to be watchable. This was supposed to be the top of the line television at the time. Spent a couple thousand dollars for this television. Sony knows there is an issue and is doing nothing to correct it. Last time I buy anything Sony.”

We have written extensively about quality issues with many brands of flat screen TVs. Until consumers stop buying them it's unlikely manufacturers will do much to improve them.

Crashing browser

Michelle, of Chicago, Ill., is another consumer who has a beef with Facebook.

“How come every time I try to log off of my Facebook application on my cell phone, it disrupts my web browser and now force closes?,” Michelle asks. "I can't open it now. It keeps wanting to force close. I have turned off my phone, taken out the battery, restarted my phone, and it still force closes. I need my web browser on my phone because I use it to find doctor's offices for my job. This has become an extreme nuisance. Please help fix this. Also, with all of the new updates and what not, Facebook has ultimately caused more problems with keeping up communications with people.”

Facebook seems determined to drive everyone around the bend.  It's a little hard to understand how it can be so tone-deaf.

New fee

We all know that banks are searching for new sources of revenue and Tom, of Aurora, Colo., says his bank – Fifth Third Bank – has found one. When reviewing his checking account statement, he says he found a $2 charge designated as “image/snapshot statement fee.”

“I immediately placed a phone call to Fifth Third and the customer service and the representative I spoke with advised me that this charge was instituted recently for receipt of image copies of checks which would accompany my monthly statement,” Tom said. “I patiently explained to ‘Alexis’ that I do not write check on this account nor do I wish to have a image copy of any checks sent to me as an accompaniment to my monthly statement. Alexis’ attitude was less than conducive to fostering good customer relations and after putting me on hold for 7 minutes came back on and advised me that a written notice had been mailed to me advising me of the option to ‘opt out’ of this charge sometime back. I explained to Alexis that I am a CPA and I do attend to all written communications from financial institutions and certainly did not receive any written advisement(s) from Fifth-Third in regard to the ability to ‘opt-out’ of any proposed charges for image copies.”

But Tom said the customer service rep refused to waive the fee, insisting that all customers had received the letter. Our advice? Tom should pay the $2 but find out as quickly as possible how to opt out of the “image/snapshot” program.

Needs an alternative

Brandy, of Applegate, Calif., lives in a rural area where satellite Internet service appears to be the only option. She is none too happy with Wild Blue and would like an alternative.

“Usage is ridiculously slow, the connection is often disrupted, and as others have stated, I pay for 100 percent usage (7500mb), but when I reach 70 percent, they slow my Internet down so much I can't use it,” Brandy said. “I feel like they are stealing from me.”

Unfortunately, there are not many options for rural Internet users if major providers decide it isn't cost effective to provide DSL service. One possible option is using the mobile broadband services provided by AT&T and Verizon. If Brandy lives near a 3G cell tower, it might be an option. It's not a great option, since you only give five gigabytes of data per billing cycle and it's 3G speed – but it beats satellite.  

Federal agencies are expressing support for the new infant safe sleep recommendations issued by the American Academy of Pediatrics (AAP).

The AAP announced the expansion of its recommendations for reducing the risk of sudden infant death syndrome (SIDS) to include recommendations for a safe sleep environment for all infants.

Many of the sleep environment risk factors for SIDS — bed sharing and soft bedding materials, for example — have accounted for the accidental suffocation observed in many cases of sudden unexpected infant death (SUID), which describes any sudden and unexpected death of a child under 1 year of age, whether explained or unexplained.

The new recommendations were developed to reduce the risk of infant death from SIDS as well as death from known sleep-related causes, such as suffocation from soft bedding materials and entrapment from inappropriate sleep situations, such as becoming lodged between a mattress and headboard. Providing a safe sleep environment has the potential to reduce SIDS risk as well as reduce the risk for SUID.

International studies

In 1992, after several international studies showed that SIDS rates were lower in societies in which infants were place for sleep on their backs, the AAP recommended that all healthy U.S. infants be placed to sleep on their backs.

The U.S. Food and Drug Administration (FDA) also expressed support for the new recommendations -- and cautioned parents to be aware that there are no federally approved or recommended products that have been shown to reduce the risk of SIDS.

"Parents and caregivers should beware of products that make SIDS prevention claims because the FDA has never cleared or approved a device to prevent SIDS or reduce the risk of SIDS," said Susan Cummins, M.D., M.P.H., chief pediatric medical officer at FDA's Center for Devices and Radiological Health.

The Albuquerque FBI has released hundreds of images of items that were collected during the investigation of David Parker Ray. The New Mexico man died in state prison in 2002 while serving a sentence of more than 223 years in connection with kidnapping and other charges involving two women who said he sexually tortured them at his residence near Elephant Butte Lake.

Numerous searches have been conducted over the years based on suspicions Ray may have killed several unidentified victims. Ray claimed to have abducted about 40 victims from several states. No bodies have been found.

The FBI believes some of the items, which include jewelry and clothes, may have been taken from victims and is asking the public to see if they recognize any of the items.

"The FBI, along with its law enforcement partners in New Mexico, is aggressively pursuing several leads in the search for remains of any possible victims of David Parker Ray," said Frank Fisher of the Albuquerque Field Office. "We are asking family and friends of missing people to look over these photographs and contact us if they recognize any of these items."

Anyone with any information in the case is asked to contact Albuquerque Police Detective Richard Lewis at rlewis@cabq.gov.

View the items

After Bank of America announced it would impose a $5 monthly charge on customers who used debit cards to make purchases, it touched off a widespread consumer backlash. Many consumers vowed to switch banks.

But how many actually will? No one knows, but a research firm, Research Intelligence Group, of Ft. Washington, Pa., says it conducted a survey and found that about 30 percent of U.S. bank customers say they will switch banks if their present bank adopts the debit card fee.

According to the survey, some 43 percent said they would start paying for purchases with cash or credit cards rather than pay the fee. About 13 percent said they would pay the fee if it were “reasonable.”

Making up the difference

Bank of America announced the fee as a response to new rules that reduce the fee they can charge merchants each time a consumer uses their debit card to make a purchase. Bank of America's fee, which goes into effect early next year, is designed to make up virtually all the money the bank stands to lose under the lower “swipe” fee.

Kathleen, of Pineville, N.C., is a Bank of America customer who says she plans to find an alternative because of the new fee.

“I will be protesting and withdrawing my cash and putting it in a jar at home,” Kathleen told ConsumerAffairs.com. “Sounds like the panic of 1929. Sounds like another recession. They are nickeling and dimeing my account more every month. I urge every BofA account holder to do the same.”

Lavanda, of Mineola, Tex., wrote to Bank of America expressing her anger at the new fee, and sent ConsumerAffairs.com the response she said she received from the bank, which says in part “We certainly understand your concerns regarding debit card monthly fee of $5.00. Please note that from time to time, all banks, including Bank of America, review their pricing for products and services across the franchise. Factors considered include market forces, as well as the value of the products and services, to help ensure that the pricing reflects both the value and the costs associated with providing these products and services.”

Learning from Bank of America?

Other banks are, in fact, studying a possible debit card fee. Among them is Wells Fargo, which has tested a $3 debit card fee in some markets.

During a conference call this week to discuss the banks third quarter earnings, executives said they would try to recoup about half the reduced swipe fees through a debit card charge to consumers, not try to reclaim it all, as Bank of America is doing.

“The way we think about that is, our focus is on building lifelong relationships with our consumers, CEO John Stumpf told reporters and analysts on the call.

Stumpf said the bank would listen to its customers to learn how they want to pay for what Wells Fargo says is value and convenience.

Interestingly, the Research Intelligence Group survey finds that any new debit card fees implemented by banks will likely be paid by those with the least amount of money.

The survey found that 22 percent of respondents in households earning between $35,000 and $49,000, are willing to pay the new fee, while only 14 percent of those in households earning more than $100,000 are willing to pay. The rest, the survey suggests will be among those looking for a new bank. 

American seniors who receive Social Security payments will receive a cost of living adjustment (COLA) of 3.6 percent in 2012, according to the U.S. Social Security Administration.

It will be the first increase in monthly payments since 2009. Payments did not rise the last two years because inflation, as measured by the government, remained low.

The 3.6 percent COLA will begin with benefits that nearly 55 million Social Security beneficiaries receive in January 2012. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2011.

Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $110,100 from $106,800.

Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.

Information about Medicare changes for 2012, when announced, will be available at www.Medicare.gov. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.

Starbucks originally modeled itself on the coffee houses of Europe, trying to conjure a world where patrons linger for hours sipping espresso and debating the finer points of politics.

But in an America where political discussion consists of shouting slogans back and forth and coffee has become the base for foamy, sugar-filled concoctions that more closely resemble a chocolate shake than espresso, is it really surprising that even regular coffee must be lightened up to retain its appeal?  

And so, taking a page from competitors McDonald's and Dunkin' Donuts, Starbucks is launching a new blonde roast.  It will launch in both Starbucks outlets and supermarket aisles in January and will be promoted through what Starbucks is calling a "360-degree" approach, meaning that Facebook, Twitter, etc., will be flooded with supposed coffee lovers gushing about the new blend.

Starbucks already does about as well with consumers as any sane person could reasonably expect.  A ConsumerAffairs.com computerized sentiment analysis of about 4.7 million consumer comments on Facebook, Twitter and other social media and blogs finds an approval rating hovering around 80% over the last year.  

Speaking at a Chicago press conference, Annie Young-Scrivner, Starbucks Chief Marketing Officer, said 40% of the 130 million coffee drinkers in the U.S. prefer a lighter-roast coffee.  The new blend is aimed at them, as well as at the millions of onetime customers who had their first cup of Starbucks and announced it tasted like mud, or worse.

And just to build even more excitement, Ms. Young-Scrivner said the launch will be an even bigger investment than the launch of Via, Starbucks' instant-coffee, which dripped onto the scene in 2009. 

Blonde will come in two varieties: Veranda and Willow. Really.

So with all this fiddling around with the product line-up, is Starbucks responding to a huge groundswell of discontent?  We peered into our sentiment analysis matrix to find top likes and dislikes.

What we found may be what Ms. Young-Scrivner found: a solid 27% don't like the coffee.  Of course, 29% do like it but even so -- if you were running a coffee house and more than a quarter of your customers didn't like the coffee, wouldn't you think maybe you had a problem?

Interestingly, the Starbucks gift card (38% like it) is even more popular than the coffee, which might also be a little worrisome. 

So maybe the new blonde blend will do the trick but, then again, maybe American tastes are moving away from coffee.  We suspect Starbucks has thought of this and planned accordingly. 

You might recall that, as part of its 40th anniversary celebration, Starbucks unveiled a new logo, removing the "Starbucks Coffee" text and more prominently displaying its iconic siren (the kind that lures sailors to their fate, not the kind that clears traffic for fire engines). 

You have to wonder if someday you won't be able to get a cup of coffee at Starbucks. 

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