Current Events in January 2012

Copyright laws protect information in the digital universe, though content owners continue to fight against what they see as ongoing and persistent piracy. They are getting no help from the Swedish government.

The government of Sweden has now formally recognized copying content and file-sharing as a religion. The Church of Kopimism reports it received religious status late last month. That culminated a year-long effort that included three applications to the government.

“For the Church of Kopimism, information is holy and copying is a sacrament,” the church said in a statement. “Information holds a value, in itself and in what it contains, and the value multiplies through copying. Therefore, copying is central for the organisation and its members.”

According to the group's website, the Church of Kopimism is a religious organization with roots from 2010. Unlike most churches, the community of kopimi requires no formal membership. You just have to feel a calling to copy and paste. In fact, the keyboard shortcuts for copy and paste – Ctrl-C and Ctrl-V – are sacred symbols in the new religion.

Remember Napster?

Members say an example of the file-sharing religion is the Napster phenomenon of more than a decade ago. Napster was formed as a peer-to-peer file sharing site where consumers could upload and download mp3 audio files of songs. Millions of songs were downloaded for free before a horrified recording industry went to court to stop it. Napster has since morphed into a site where consumers may purchase music.

"Being recognized by the state of Sweden is a large step for all of kopimi,” said Isak Gerson, who is described as the spiritual leader of the Church of Kopimism. “Hopefully, this is one step towards the day when we can live out our faith without fear of persecution.”

Legal analysts say that's not very likely. In court, they say copyright laws are apt to prove more binding than religious freedom to copy and paste.

Next time you're driving down a six-lane highway, glance over at the driver in the middle lane. Chances are they will have gray hair, researchers say.

A study conducted by researchers at the University of Leeds in the UK shows older adults are naturally inclined to drive in the middle of the road, leaving the younger generation to cut corners.

The scientists suggest this tendency is a built-in safety mechanism that helps seniors stay safe behind the wheel.

The findings of the study, which are published in the Journal of Experimental Psychology Human Perception and Performance, have shown how older people naturally adapt when they can no longer move with the freedom they once had. Researchers hope that the work will be used to find new ways of helping patients recover lost motor skills, for example, after a stroke.

Effects of aging

Aging causes the body to respond more slowly and movements to become less precise. To see how this might affect performance behind the wheel, a team from the University of Leeds' Institute of Psychological Sciences compared the motor skills of healthy younger adults, aged between 18 and 40, with a group of over-60s.

Using a touch-screen laptop, participants were asked to trace wiggly lines of varying widths -- slowly, quickly and at their own preferred pace. They were also asked to steer along 'virtual' winding roads when sitting in a driving simulator.

The researchers found that the older adults made allowances for their age by adopting a 'middle-of-the-road' strategy in both tests. This meant they remained well inside the wiggly lines when tracing, and stayed in the middle of the road lines when driving. Younger participants, in contrast, had a greater tendency to cut corners.

"Our results suggest that this compensation strategy is a general phenomenon and not just tied to driving,” said postgraduate researcher Rachel Raw, lead author of the study. “It seems older people naturally adjust their movements to compensate for their reduced level of skill."  

The U.S. Food and Drug Administration is banning the use of certain antibiotics in animals raised as food, fearing that overuse of the drugs may contribute to heightened resistance in bacteria that cause human illness.

"FDA is taking this action to preserve the effectiveness of cephalosporin drugs for treating disease in humans. Prohibiting these uses is intended to reduce the risk of cephalosporin resistance in certain bacterial pathogens," the agency said.

The order prohibits certain uses of the cephalosporin class of antimicrobial drugs in cattle, swine, chickens and turkeys effective April 5, 2012.

"We believe this is an imperative step in preserving the effectiveness of this class of important antimicrobials that takes into account the need to protect the health of both humans and animals," said Michael R. Taylor, Deputy Commissioner for Foods.

Cephalosporins are commonly used in humans to treat pneumonia as well as to treat skin and soft tissue infections. In addition, they are used in the treatment of pelvic inflammatory disease, diabetic foot infections, and urinary tract infections. If cephalosporins are not effective in treating these diseases, doctors may have to use drugs that are not as effective or that have greater side effects, the FDA noted,

Extralabel uses

In its order, FDA is prohibiting what are called “extralabel” or unapproved uses of cephalosporins in cattle, swine, chickens and turkeys, the so-called major species of food-producing animals. Specifically, the prohibited uses include:

• using cephalosporin drugs at unapproved dose levels, frequencies, durations, or routes of administration;
• using cephalosporin drugs in cattle, swine, chickens or turkeys that are not approved for use in that species (e.g., cephalosporin drugs intended for humans or companion animals);
• using cephalosporin drugs for disease prevention.

In 2008, FDA issued and then revoked an order that prohibited extralabel uses of cephalosporins in food-producing animals with no exceptions. Today’s announcement responds to public comment and includes the following exceptions, which protect public health while considering animal health needs:

• The order does not limit the use of cephapirin, an older cephalosporin drug that is not believed by FDA to contribute significantly to antimicrobial resistance.
• Veterinarians will still be able to use or prescribe cephalosporins for limited extra-label use in cattle, swine, chickens or turkeys as long as they follow the dose, frequency, duration, and route of administration that is on the label.
• Veterinarians may also use or prescribe cephalosporins for extralabel uses in minor species of food-producing animals such as ducks or rabbits.

The new order of prohibition has a comment period that will begin on Jan. 6, 2012 and close on March 6, 2012. To comment on the order of prohibition, visit www.regulations.gov and enter FDA-2008-N-0326 in the keyword box. Following the comment period, the FDA will consider the comments prior to the order of prohibition going into effect on April 5, 2012.

A published report says long-time camera and film manufacturer Kodak is preparing to file court papers for bankruptcy protection.

The Wall Street Journal reported today that the preparations are being made in case Kodak's efforts to sell a number of its patents prove unsuccessful. The Journal reports Kodak, whose name was once synonymous with photography, is trying to obtain about $1 billion in financing to keep the doors open during bankruptcy proceedings.

The Journal quotes sources it says are familiar with the matter as saying Kodak has about 1,100 patents it can sell to raise cash, but may need bankruptcy protection to give it time to negotiate the best deals. A Kodak spokesman declined to comment, the Journal said.

Tough times in the digital age

Founded as Eastman Kodak Company in 1892, the company has struggled to find its footing in the digital age. It recently stopped making its iconic Kodachrome film, a product that captured images for generations and inspired a number one hit song by singer-songwriter Paul Simon in the early 1970s.

The company last reported a profit in 2007 as it moved into producing digital cameras and office equipment. Mary, of Bradenton, Fla., is not a happy Kodak customer.

“I purchased an All-in-One Printer Esp 3200 about a year and a half ago,” Mary told ConsumerAffairs.com. “I was going to take it back immediately because it clunks and makes noise long after it has printed, and operates slow. I kept it and now wish I had returned it because mine has a problem with the print-head. I rarely use the printer and like everyone else says, it runs out of ink very quickly. This is not a savings in ink, and false advertising. From now on, I'm going with my gut instincts on brands. I just thought I'd give Kodak a shot and they're not ready.”

Meanwhile, the news that Kodak might be contemplating bankruptcy took few by surprise on Wall Street. Kodak has virtually becoming a penny stock, selling for less than $1. A bankruptcy filing would also allow Kodak to sidestep some expensive pension obligations to retirees.  

Not too long ago, bariatric surgery – known in one of its forms as gastric bypass surgery – was a highly risky procedure. Now, the surgery is safer and doctors say for the obese, it reduces the long-term risks of cardiovascular deaths and events such as heart attack and stroke.

Researchers explained their findings in the January issue of JAMA, the journal of the American Medical Association.

Swedish scientist Lars Sjostromand colleagues conducted a study to test the hypothesis that bariatric surgery is associated with a reduced incidence of cardiovascular events and examined the relationship between weight change and cardiovascular events.

The study is an ongoing, nonrandomized, prospective, controlled study conducted at 25 public surgical departments and 480 primary health care centers in Sweden, and includes 2,010 obese participants who underwent bariatric surgery and 2,037 matched obese controls who received usual care.

"Weight loss might protect against cardiovascular events, but solid evidence is lacking," according to background information in the article.

Reduced death

In the study, bariatric surgery was associated with reduced number of fatal heart attack deaths, with analysis indicating that bariatric surgery was related both to reduced fatal heart attack incidence and total heart attack incidence. Also, bariatric surgery was associated both with reduced number of fatal stroke events and total stroke events.

In bariatric surgery, weight loss is achieved by reducing the size of the stomach. There are at least three principle ways this is achieved; with an implanted medical band, removing a portion of the stomach or by re-routing the small intestines to a small stomach pouch. The goal is to reduce the patient's ability to consume large amounts of food.

The U.S. National Institutes of Health now recommends bariatric surgery for people with a body mass index (BMI) of 40 or greater. As the U.S. deals with a growing obesity epidemic, bariatric surgery is likely to become more common.

As with any major surgery, there can be adverse effects. A recent study found that complications were more likely to occur in patients over 40. A person is not considered a candidate for bariatric surgery unless they have tried and failed at traditional weight-loss methods. Any consideration of this procedure begins with a discussion with your physician.

President Obama used his recess-appointment powers today to put Richard Cordray to work as head of the Consumer Financial Protection Bureau, which has been without a permanent leader for the 16 months it has been in existence.

Consumer groups and their allies applauded the action.

"American families finally have the consumer advocate we've needed for so long: Richard Cordray, the director of the Consumer Financial Protection Bureau," said California Attorney General Kamala Harris. "We're at a critical moment for the middle-class in America, and we urgently need strong oversight of our financial institutions and accountability for wrongdoing." 

"The Consumer Federation of America applauds the President for appointing Richard Cordray to lead the Consumer Financial Protection Bureau," said the CFA's Travis Plunkett. "As Ohio Attorney General, Cordray was a national leader in helping consumers harmed by abusive mortgage and predatory lending practices."

The White House said Senate opposition to Cordray left the President with few options.

"The President nominated Mr. Cordray last summer.  Unfortunately, Republicans in the Senate blocked his confirmation.  They refused to let the Senate go forward with an up or down vote," White House Communications Director Dan Pfeiffer said in a blog posting. "It’s not because Republicans think Cordray isn’t qualified for the job, they simply believe that the American public doesn’t need a watchdog at all."

Cordray, meanwhile, said he would not be distracted by the political upheaval that's likely to erupt when Congess returns.

"I can't be distracted by that. I've got a big job to do and I need to be 100 percent focused on what we can do to protect American consumers," Richard Cordray told Reuters.

Cordray said his first order of business would be to expand enforcement of non-bank financial institutions, such as payday lenders. 

"Sham" Senate session

Pfeiffer said Senate Republicans tried to block the recess appointment by maintaining a "sham session" even though it was effectively in recess.

"Because of the President’s leadership and decisive action, the American people will have a consumer watchdog fighting tooth and nail on their behalf," Pfeiffer said.  "The President knows this is a make or break moment for the middle class and he’ll continue to build an economy that’s based on the values of fairness and shared responsibility."

Long struggle

Cordray was cleared by the Senate Banking Committee in October but Republicans have opposed the agency from the beginning and vowed to block the Senate from voting on Cordray's nomination until the agency is watered down to their liking.

"America's job creators are under siege," said Sen. Richard Shelby (R-Ala.), ranking Republican on the committee.  "Regulators are about to subject those who had nothing to do with the financial crisis to hundreds of new rules and regulations without determining whether the benefits exceed the costs."

Democrats argue that the changes Senate Republicans want would weaken the new regulator, which opened its doors on July 21.

"Republicans have threatened not to confirm him, not because of anything he's done, but because they want to roll back the whole notion of having a consumer watchdog," Obama said at an October  news conference.

Cordray's confirmation hit its most recent snag on Dec. 12, when filibustering Republicans in the Senate blocked it, causing Ohio Democratic Sen. Sherrod Brown to say the vote showed that Republicans' "first loyalty is to Wall Street banks."

What's a recess?

Obama is already taking heat from Republicans for making the recess appointment.  House Speaker John Boehner called it "an extraordinary and entirely unprecedented power grab."

In fact, though, Obama has made far fewer recess appointments than his predecessors -- just 29, compared with 171 for George W. Bush and 139 for Bill Clinton.

Senate Republicans argue that the Senate has not been in recess the last few weeks, even though nearly every Senator is out of town.  The White House is expected to argue that the Constitution does not define "recess" and that the appointment is therefore valid.

Johnson & Johnson is accused of conducting a "phantom or stealth recall" of tainted Children's Tylenol that led to the death of Daniel and Katy Moore's son.

In a lawsuit filled with scathing accusations, the Moores say their two-year-old son, River, died of liver failure in July 2010, the day after he took Children's Tylenol.  Katy Moore says she gave River a dose of Tylenol and within 30 minutes, he was spitting up blood.  

"Defendant Johnson & Johnson, a Fortune 50 Company with $60 billion in annual sales, knew of defects, impurities and contamination in the children's drugs and, yet, embarked on a 'phantom' or 'stealth' recall of these drugs to hide these problems so the general public, ignorant of the dangers, would continue buying and administering these brand name drugs to their children," the complaint states, according to Courthouse News Service.

The Moores charged that Johnson & Johnson went around on the sly, collecting the tainted drug from stores without issuing a recall , "so the general public, ignorant of the dangers, would continue buying and administering these brand name drugs to their children."

Besides Johnson & Johnson, the suit names McNeil Consumer Healthcare, Costco and a long list of others in the chain of supply and distribution, and third-party contractors who allegedly bought up the over-the-counter drugs in the "phantom recall."

The Moores also claim the defendants ignored deplorable manufacturing conditions and had numerous recalls of its products, including its infants and children's Tylenol.

Internal documents

The suit quotes a number of internal documents to bolster its claim that Johnson & Johnson knew of the danger but wanted to save the expense of a recall.

"The purpose of the phantom/stealth recall is evidenced in an internal email in which a McNeil executive said, 'We are just trying to prevent a recall and a lot of expended dollars,'" the suit alleges.  "In another email, a McNeil executive described the success of the phantom/stealth recall by saying, 'This was a major win for us as it limits the press that will be seen.'

The suit says J&J hired third-party distributors to make the rounds of stores, scooping up the defective products, then misrepresented their actions to the government.

"J&J and McNeil subsequently misrepresented to the FDA that their third-party contractors were merely performing an audit of retailers to determine whether McNeil should initiate a formal recall," the suit allges.  "The FDA eventually became aware of the phantom/stealth recall when it received a copy of an internal memo containing the above instructions and confronted McNeil regarding those activities.

FDA warning

In May 2010, the Food and Drug Administration (FDA) urged consumers to stop using Children's Tylenol and other over-the-counter products made by McNeil Consumer Healthcare. 

The agency said its inspectors encountered thick dust and contaminated ingredients at the Fort Washington, Pa., plant producing the products. Some equipment was covered with grime, there was a hole in the ceiling in one room and pipes were patched with duct tape.

On closer inspection, FDA said it found raw ingredients contaminated by an unspecified bacteria, a lack of quality control procedures and poor handling of complaints. Among the complaints, the agency said, were 46 reports of "dark material" in the liquid products between June 2009 and April 2010. While bacteria were present in the plant, FDA said its tests failed to detect it in any finished product.

Many Tylenol recalls

There's certainly been no shortage of Tylenol recalls, including:

• June 3, 2005  Several types of Children's Tylenol recalled because label information may be confusing and could lead to overdosing.
• September 27, 2009  Certain children's and infant's Tylenol products that were manufactured between April 2008 and June 2008 were recalled. The company said potential manufacturing problems could result in bacterial contamination.
• January 15, 2010Tylenol, Benadryl, Motrin and Rolaids recalled because of reports of an unusual moldy, musty, or mildew-like odor. 
• Children's Tylenol  The recall included some Children's Tylenol as well as adult-strength Benadryl, Motrin IB, Tylenol Extra Strength, Tylenol Day & Night and Tylenol PM. The company said the expanded recall was triggered by consumer complaints of a musty, moldy odor.
• January 18, 2011 More products recalled because of "musty or moldy odor."  

A jury in Phoenix has ordered popular jazz stylist Sherry Petta to pay her plastic surgeons $12 million after she posted derogatory comments about them on a Web site she created.

Petta complained about the treatment provided by Albert Carlotti and Michelle Cabret-Carlotti, a husband-and-wife plastic surgery team and also alleged that the doctors were not licensed in Arizona.

That, unfortunately for her, is not true and the jury found Petta guilty of libel per se -- basically meaning that she made damaging statements that were demonstrably false.

The jury also heard testimony that Petta was a notoriously difficult patient and that the doctors had to file an injunction to keep her away from their offices after she "repeatedly screamed at the ... staff, refused to follow instructions for medical care, and obtained contra-indicated care by others without first disclosing the care to plaintiffs."

Petta, twice named Jazz Artist of the Year by the Los Angeles Music Awards, said she plans to appeal the verdict, the Arizona Republic reported.

Federal and state health officials say they have not yet pinned down the cause of four recent Cronobacter infections but have found no evidence the cases are related.

Given the results so far, investigators say there is no need for a recall of Enfamil formula, which had been fed to some of the infected infants.  Several major retailers removed Enfamil from their shelves last month after an infant died of a Cronobacter infection in Missouri.

The four recent cases occurred in Missouri, Illinois, Oklahoma and Florida. The infants in Missouri and Florida died, while those in Illinois and Oklahoma are recovering. 

Cronobacter causes severe bacterial sepsis or meningitis in infants, which often starts with fever, and usually includes poor feeding,  crying or listlessness. It is found in the environment and in hospitals and homes. It can also multiply in powdered infant formula after the powder is mixed with water.

The Food and Drug Administrtion (FDA) said it has inspected the facilities that manufactured the infant formula and the nursery water that tested positive for Cronobacter bacteria and all were found negative.

Retailers reluctant

The findings may be encouraging to retailers, who have been reluctant to put Enfamil Premium Newborn infant formula back on their shelves, even though Mead Johnson Company says its tests have found no problems.

Walmart, Walgreens, Supervalu, Price Chopper and many smaller retailers removed the formula last month after a Missouri infant who had been fed Enfamil died. 

Mead Johnson, which manufactures Enfamil, said earlier that it had retested the batch of the formula involved in the infant's death and found no problems.

Cronobacter infections are normally very rare, with only four to six cases reported in a normal year.  There were 12 cases in 2011 and authorities say they are not certain if the higher number is the result of raised awareness or if some other factor is involved.

Cronobacter infections can be severe in young infants when they occur in the first days or weeks of life.

Breastfeeding recommended

Health officials recommend breastfeeding whenever possible.  When using powdered infant formula, CDC and FDA advise that caregivers make up fresh formula each time they feed the baby and discard any leftovers.  In addition, recommendations  for how to prepare and use powdered infant formula more safely include:

• wash your hands with soap and water before preparing the formula,
• clean all feeding equipment in hot, soapy water,
• prepare only enough formula for one feeding at a time and give it to the baby right away, and
• follow the manufacturer's directions on the printed label.

Lab results pending

In a joint release, the FDA and CDC said the following results have been confirmed from completed laboratory tests, although additional lab results are pending release:

• CDC's laboratory conducted DNA fingerprinting of the bacteria from two recent cases of Cronobacter infection in infants (Missouri and Illinois). The results show that the Cronobacter bacteria differ genetically, suggesting that they are not related. (Bacteria from cases in Oklahoma and Florida are not available for analysis.) 
• CDC laboratory tests of samples provided by the Missouri Department of Health and Senior Services foundCronobacter bacteria in an opened container of infant formula, an opened bottle of nursery water and prepared infant formula.  It is unclear how the contamination occurred.
• The FDA tested factory sealed containers of powdered infant formula and nursery water with the same lot numbers as the opened containers collected from Missouri and no Cronobacter bacteria were found.

The FDA, CDC and state agencies continue to investigate the cause of the infections using epidemiological and laboratory methods. 

Can consumers look forward to higher gasoline prices at the pump in 2012? Almost certainly, say the experts. But one petroleum insider believes help for consumers could be on the way this year.

In an interview with business cable channel CNBC, Gulf Oil CEO Joe Petrowsky says the huge price spread between oil and natural gas means the industry will accelerate the move to begin running cars and trucks on cheaper and more plentiful natural gas. That, in turn, he says will eventually keep oil from becoming ever more expensive.

“The only thing long term that will keep oil prices from spiking much, much higher is abundance of natural gas and I think a lot of people in our industry are investing in ways to let natural gas become a transport fuel,” Petrowski said. That will be the story in 2012 that starts bubbling to the surface. Hopefully we can diversify away from petroleum as the only transport fuel.”

Petrowski is putting his money where his mouth is, saying Gulf plans to switch a number of its trucks this year to run on natural gas. The payoff, he says, will be immediate.

“If we were posting natural gas today as a transport fuel to replace diesel, we'd be posting $2 a gallon,” Petrowsky said. “That's $2 a gallon cheaper than diesel right now in the northeast. Our average truck uses 12,000 gallons a year. That's $24,000 in savings per truck.”

Prices moving in different directions

As oil prices have remained high, for the most part, since 2008, the price of natural gas has been coming down. The price spread, says Petrowsky, is a product of a huge increase in natural gas supplies.

“You've got an incredible amount of production coming out of the various shale fields,” he said.

An best of all, those natural gas shale fields are mostly located in the U.S., reducing the need for imports and supplying domestic jobs. In North Dakota, site of one of the largest natural gas fields in the U.S., unemployment is running at just 3.3 percent.

While there remain a number of economic and technological hurdles to using natural gas to power passenger vehicles in great numbers, it's much easier and cost effective to convert commercial vehicles like trucks and buses. But once the process begins, says Patrowski, oil will no longer be the exclusive motor fuel, and consumers will reap the benefit.

“The way crude oil is going to come down (in price) is when we link natural gas to the transport sector,” he said. “We really need to do that and I think that will be the story of 2012.”

Apple's long-rumored next-generation “iTV” set may be a lot closer to reality than many people think. DigiTimes, a technology web publication, reports Apple suppliers have gotten the word to get ready to gear up for production.

As with any story dealing with sources, the details aren't exactly consistent. But suppliers cited in the article do agree that the sets should go into production before the end of 2012. One of the sources says iTV will come in two screen sizes – 32 and 37 inches.

Jobs biography dropped big clue

The so-called “iTV” has been the subject of intense speculation since last fall's release of Walter Isaacson's biography of Apple co-founder Steve Jobs.

Isaacson reported that the Apple design team was hard at work on a "connected" television -- one that would do for TV what Apple once did for the computer, cell phone and portable music player.

"I’d like to create an integrated television set that is completely easy to use. ... It would be seamlessly synced with all of your devices and with iCloud," Jobs is quoted as saying. "It will have the simplest user interface you could imagine. I finally cracked it.”

Such a device would be much less dependent on traditional sources of content, such as over-the-air broadcast and cable. It would make it much easier to access and view content from the Internet.

Beyond the set-top box

Apple already makes a set-top box that does provides some syncing capabilities, but Jobs reportedly referred to that product as “a hobby,” raising expectations for what else might be in the pipeline.

Whatever iTV turns out to be, consumers can only hope that it performs with greater reliability that the current generation of plasma and LCD TV sets on the market. As consumers have reported to ConsumerAffairs.com for years, these infernal devices are plagued by faulty capacitors and flaws in the display panels that manifest themselves after only a few years of use.

On the other hand, they're quite inexpensive if you shop carefully, so planned obsolescence may just be something we need to get used to.

Dave Maltz, a TV repairman in Oregon, solicited input from customers and viewers of his YouTube video, asking how long their flat screen TV had been operating without trouble. In his informal poll, six years was the longest any set had lasted without a repair.

Every year, the holidays bring good cheer, glad tidings and all that, but they also bring a sleigh full of complaints about gift cards. This year was no exception.

The most common complaint, of course, is that the cards don't work. That's what happened to Chris of Kirkland, Wash., who wrote to us about his American Express gift cards.

“Received three Amex eGift cards,” said Chris. “They all decline, $75, $50, and another $50. This is an American Express banking scam.”

“They make these available on their website for quick purchase, confirm, and send but do not allow for these cards to be used online or in store. Every transaction was declined,” Chris complained.

Delores of Miami received a $50.00 American Express gift card for Christmas but the experience has so far left her with little more than a case of indigestion.

“We tried to use it today towards an $89.64 meal at a Hillstone Restaurant in Coral Gables, Florida. The waiter told us he would charge us another 20% to use the card. Since we would still owe $39.64 plus the gratuity, this made no sense,” Delores said. “We called American Express Gift Cards and did not receive a satisfactory explanation as to why an American Express merchant would not accept the card.”

Quintin of Escondido, Calif., was also left with a bad taste in his mouth.

“I received a $25 American Express gift card for Christmas. I activated it on their website and saw there was indeed a balance of $25. I tried to purchase an item on eBay, but it was declined because they could not verify the cardholder's address. I tried a second time … the card was declined again.”

Puzzled, Quintin went to the Amex Web site where he found that $2 had somehow been debited from the card.

“If my card was declined from making a purchase, then why is money being taken from my card at all? By the way, my Visa gift cards and MasterCard gift cards work just fine,” Quintin told us.

Best Buy

Kathy of Pleasant Prairie, Wis., was one of several consumers we heard from who had hoped to use a gift card to pay for something she had already purchased. This, unfortunately, isn't permitted by most gift card issuers.

Kathy said she bought a smartphone at Best Buy and a few days later, her son gave her a gift card which she tried to apply against the bill for the smartphone.

“They would not apply it to the bill,” she said. “He gave me a lot of money” but she is unable to use it except to buy additional merchandise.

Kmart

Rich, of Evanston, Ill., has lived in Illinois his entire life and felt he wanted to support Illinois-based Sears and Kmart, which had a rather feeble holiday sales season. Now he regrets it.

“I bought $50 worth of goods … which entitled me to a $5 gift card which was supposed to work the next several days,” he said. “I went back two days later [when] the card was valid and they said that they would not accept it for some reason. I wasted my time and money to drive there. I went again several days ago and they said that the card expired already. What a scam! Good one Kmart.”

Meijer Stores

April of Jeffersonville, Ind., is miffed because Meijer would do nothing to help her when $100 worth of gift cards went missing minutes after she bought them.

“I purchased $256 worth of items on 12/21 and $100 was in gift cards. I checked out at 3 pm, and called the store at 3:12 pm reporting my gift cards missing, then went back to the store to have them cancelled,” she said. “I was told I was just out $100 because they can not cancel gift cards (more like will not). I asked to speak to a manager, Kenn, who told me he would review video with Loss Prevention and call me the following day. I still have not received a phone call.”

Ann is still steaming, not only about the $100 but also about the treatment she got: “My experience involved 4 Meijer employees, all who were rude as could be! … I guess they got my money and could care less if I got what I paid for!”

Sam's Club

Ann of Colorado City, Texas, received a Sam's Club gift card from her daughter, only to find that the card would not work.

“My daughter bought this at Sam's in Odessa, it was debited from her bank account with her grocery purchase. She does not have her store receipt, she thought I had spent the card so she threw away the receipt. There should be some way for her to get her money back if the card doesn't work,” Ann said.

“I called the 800 number numerous times, to no avail. “Money is hard to come by these days. It was our Xmas gift, but now I guess its your (Sam's) Xmas gift,” Ann said ruefully.

Toys R Us

“I purchased an iTunes gift card worth $25 on Christmas for my son. After opening the card and trying to redeem it, it continuously gave error messages,” said Cecilia of Queens Village, NY. “I took the card with my receipt to the store of purchase and spoke with a cashier. She said that they couldn't give me my money back as they do not refund gift cards.”

Cecilia thought that was odd so she asked to speak to the manager, only to be told: "The manager will not help you; she'll be helping me."
Cecilia thought that was rude but held out hope the manager would help her.

No such luck.

“I then spoke with the manager, and was told I cannot be refunded my money even though the card was non-functional. I was told that it was not their problem, and that I had to contact Apple even though I purchased the card at Toys 'R' Us,” she said. “I then went to the Apple Store and was told that it was Toys 'R' Us’ problem because the card was not purchased from them. I did not receive any value for the gift card which was $25.”

Walmart

Cindy of Winnsboro, Va., shelled out $410.68 for 11 Vanilla Visa gift cards from Walmart.com, intending to give ten of them as Christmas gifts. She activated them by email, following the instructions provided by Walmart and assumed that all was well.

But all was not well, as Cindy learned when she tried to use the eleventh card on Dec. 14, only to have it declined. She then learned that only seven cards had been activated. Through much back and forth with Walmart, one of the remaining cards was activated, leaving three that were not activated and not suitable for gift-giving.

“Someone has collected interest for months,” Cindy said. “If widespread problem (intentional) then [it's] a case of fraud.”

Our advice

Admittedly, this is just a sampling of the experiences consumers have had with their gift cards. No doubt, there are millions of stories that had a happy, or at least routine, ending.

But why take chances? If the person on your gift list is someone you'll be seeing in person, stop by the bank and get some crisp $50 bills. Put them in a gift card and hand it over. We have never met anyone who objected to getting cash.

If your giftee lives far away, you might consider sending a check. Assuming the person has a checking account, this is as good as cash. And, like cash, it can be used anywhere at anytime for anything – which is something you can't say about gift cards.

Congress takes a lot of grief for not doing anything, but sometimes doing nothing is just what's needed.  Many observers feel that way about an ethanol tax credit and an electric-car-charger credit that expired with the old year.

The 45-cent-a-gallon tax credit for corn-based ethanol-added gas, along with a corresponding 54-cent-a-gallon tariff on imported ethanol, didn't do much to clean up the air or reduce gas consumption but they certainly did drive up the cost of corn, which translates into the higher food prices currently plaguing consumers.

And then there's the car-charger credit.  Consumers could get a tax credit of up to $1,000 for installing a 220-volt charger in their home.  Businesses could get an even bigger credit, up to $30,000.

With enthusiasm for electric cars draining about as fast as a lithium-ion battery, it's not likely this tax credit will cause much pain.  Still on the books, though, is a $7,500 tax credit for purchasers of electric vehicles.

So if you were planning to snap up one of those $100,000 Fisker Karmas, you can still stick the taxpayers with a good part of the tab.  At last word, Fisker had only sold about 50 of the Karmas, so there should be plenty in stock.

Even less costly electric cars are selling poorly.  The Chevrolet Volt missed its first-year sales target of 10,000, as did Nissan's Leaf.  The Leaf sold about 8,700  units in the U.S. during its first year.  

Gloomy sales

While the gloomy sales figures may be causing heartburn for automakers, they probably amount to good news for taxpayers, who are not only handing out tax breaks to middle-income early-adopter car ehtusiasts but also loaning and giving big bucks to car and battery manufacturers.

The Fisker Karma, for example, was supported by $529 million in loans from the U.S. Energy Department, which -- one hopes -- was not aware that the car would turn out to be a Porsche Panamera lookalike with a price tag of $100,000.

Fisker has said with a straight face that it expects to sell between 10,000 and 12,000 vehicles in 2012. After all it, was named the "Luxury Car of the Year" by BBC TopGear, a show sometimes described as pornography for hot rodders.

Oh, and then there's A123, the company that manufactures batteries for the Fisker and other electrc cars.  It is burning through a $249 million grant -- that's grant, not loan -- from the Energy Department to fund battery production in Michigan, plus another $125 million from the state of Michigan.

It was an A123 battery that led to the recent recall of all 50 Fiskers.  Seems the batteries could overheat and start a fire, just like the Chevrolet Volt batteries that overheated after crash tests conducted by federal safety regulators.

Down to earth

All this hoopla over and bestowing of public funds on electric cars is puzzling to those who think there are real-world solutions much closer at home -- clean turbodiesels, for example.

The New York Times' Lawrence Ulrich was recently stunned by his test drive of a Volkswagen Passat, a full-sized sedan mind you, equipped with a 2-liter, 140-horsepower turbodiesel, which delivered real-world highway mileage of 50 mpg.

The Passat also boasts an 18.5 gallon fuel tank, which means it can cover  795 highway miles or so on a single tank, making it attractive to those who routinely cover long distances.

For trips around town and daily commuting slogs, the latest collection of hybrids can routinely return 30 and even 40 mpg performance with a much lower purchase price and no range anxiety.  

A final word about electricity vs. diesels and hybrids: Whenever we write about this, we hear from Los Angelenos fearful that gas engines will further muck up their somewhat-pristine environment. These earth-centered souls need to pay a visit to the Four Corners area of Arizona, New Mexico, Utah and Colorado to see the coal-fired generating plants that produce a large share of the electricity that powers those little Leafs and Volts and in the process muck up what was once a truly pristine environment. 

Top that off with a visit to the San Onofre nuclear plant, near San Clemente and the Cristianitos fault. Have a nice year. Drive friendly.

A federal class action lawsuit says that onetime Tennessee state legislator Larry Bates, now a self-proclaimed "Christian" financial adviser, has defrauded investors who put their faith and trust in him.

Bates, a Democrat who served in the Tennessee General Assembly from 1971 to 1976,  "targets devout, Christian believers, elderly individuals, and widow/widowers with significant life savings, all who are seeking advice and help from a trusted Christian adviser and/or a Christian financial company," the lawsuit charges.

Plaintiffs Damian Orlowski of Chicago and Lynn Cechin of Texas filed the suit against Bates and other defendants including Radio Information Network, INC/IRN USA Radio News; Information Radio Network/IRN USA Radio News; Information Radio Network Inc.; and Barry Denison, a "senior staff economist" for Bates's First American Monetary Consultants (FAMC), "who travels regularly, advertising for FAMC and speaking on the economy, the threat of Islam, and the question of Israel and the church," Courthouse News Service reported.

The class claims Bates promised to move million of dollars in precious metals quickly on investors' behalf, but after getting his hands on the money said that delivery of the coins would be delayed by as much as a year. In some cases, orders were only partially filled, according to the complaint.

The complaint includes a list of 26 other people who allegedly suffered at the hands of the defendants.

Radio solicitation   

The class claims Bates uses his radio show, "News and Views," broadcast via Information Radio Network/IRN USA Radio News, to solicit for a wide range of products, including his books, an FAMC publication called "Monetary and Economic Review," DVDs and videos, and for himself, for personal appearances and speaking engagement at conferences.

Bates's and Denison's purported "expertise" is in teaching how to use gold and silver as economic insurance to protect one's assets, including retirement accounts, according to the complaint.

The two men quote extensively from the Bible in their sales pitch, the plaintiffs say. The plaintiffs say Bates relies on a "world's end, sky is falling" approach to encourage Christians to buy precious metals from his companies.

The class claims Bates lures Christians with statements such as: "Life as we have known it in the United States is about to change and change drastically ...The two things that will determine whether you and your family are wiped out by the storm are knowledge and action ..."

In fact, the class claims, the defendants' actions are intended solely to benefit themselves.