Current Events in May 2012

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    What Parents Should Know About Synthetic Drugs

    Knock-off drugs are even being sold in stores

    Parents who think they have succeeded in keeping their children away from marijuana and other drugs they were familiar with in their youth had better get up to speed on synthetic drugs.

    These "designer" drugs are not only widely available, they are actually sold in retail stores.

    Synthetic marijuana, often known as “K2” or “Spice,” and bath salts products are often sold in legal retail outlets as “herbal incense” and “plant food,” respectively, and labeled “not for human consumption” to mask their intended purpose and avoid FDA regulatory oversight of the manufacturing process.

    Synthetic marijuana consists of plant material that has been laced with substances that users claim mimics the primary psychoactive active ingredient in marijuana, and are marketed toward young people as a “legal” high.

    Nationwide crackdown

    Officials in a number of states are cracking down on these synthetic drugs. During the recent spring break vacation season, Florida Attorney General Pam Bondi warned vacationersto stay away from dangerous synthetic drugs that are marketed as “incense,” “potpourri,” “K2,” and “bath salts,” which mimics the properties of cocaine.

    “These synthetic drugs are dangerous and pose significant risks to users and those around the users,” Bondi said.

    West Virginia Attorney General McGraw recently filed a civil law enforcement action against Georgia-based Nutragenomics, a major distributor of the ingredients used to make synthetic drugs, asking that the company be banned from selling or advertising it products in West Virginia.

    In addition to marijuana and cocaine, different synthetic drugs mimic the properties of ecstasy and methamphetamine. Besides K2 and Bath Salts, parents should be aware that "incense" and "plant food" are also names for these drugs.

    On store shelves

    Meanwhile, Illinois Attorney General Lisa Madigan reports a statewide inspection sweep of tobacco shops and other retailers found two DeKalb shops were selling synthetic drugs. In all, 1,941 packages of synthetic drugs were handed over to law enforcement officials.

    “With a significant population of college-aged teens and young adults, DeKalb is potentially prime territory for synthetic drug sales,” Madigan said. “These store visits are designed to send a very clear message to retailers that these drugs are illegal and have no place for sale in their establishments.”

    In West Virginia, McGraw has asked the court to order Nutragenomics to identify all recipients in West Virginia who purchased their products and the chemicals that were purchased.

    "Working in conjunction with the Metro Drug Unit, the Sheriff’s Office, and other law enforcement agencies, my office is committed to ridding West Virginia of the plague that these designer drugs pose for our communities," McGraw said. "Cutting off these illicit drug compounds at their source is an effective start to cleaning up the problem."

    The White House says it is working with the states to help combat what it says is the growing problem of synthetic drugs, which it says can have severe negative health effects.

    "The effects of synthetic marijuana include agitation, extreme nervousness, nausea, vomiting, tachycardia (fast, racing heartbeat), elevated blood pressure, tremors and seizures, hallucinations, and dilated pupils," the White House warned. "Similar to the adverse effects of cocaine, LSD and methamphetamine, bath salt use is associated with increased heart rate and blood pressure, extreme paranoia, hallucinations, and violent behavior, which causes users to harm themselves or others."

    Parents who think they have succeeded in keeping their children away from marijuana and other drugs they were familiar with in their youth had better get u...

    Texas Tangles With State Farm Over Policy Cancellations

    Company sues attorney general over investigation

    Texas Attorney General Greg Abbott and State Farm, the state's largest home insurer, are locking horns.

    It all started when State Farm notified the Texas Department of Insurance that it was dropping some 11,000 Texas policyholders, specifically those living in the Gulf Coast counties of Orange, Jefferson, Chambers, Brazoria and Galveston.

    On April 16 the Attorney General’s Office sent civil investigative demands – a type of civil subpoena – to State Farm Lloyds of Texas seeking information about the company’s decision not to renew more than 11,000 Gulf Coast policies. Late last week, State Farm filed a lawsuit against the Attorney General’s Office in an effort to block the investigation.

    No documents

    Consumers rate State Farm

    To date, Abbott says State Farm Lloyds has not produced a single document in response to the subpoenas issued by the Attorney General’s Office.

    “The largest issuer of homeowners insurance in Texas has filed a lawsuit in an attempt to prevent the Attorney General’s Office from investigating its non-renewal of thousands of residential property insurance policies along the Gulf Coast,” Abbott said. “Given the number of Texans that are affected, we want to ensure that State Farm complies with the law. If State Farm has not done anything wrong, it’s certainly curious that they would go to court just to avoid the State’s subpoenas.”

    State Farm, which insures about one and a quarter million Texas homeowners, cancelled the policies effective May 1. Its suit against Abbott's office this week complains that the subpoena is too broad and amounts to "a fishing expedition."

    Abbott says his office opened the investigation last month to determine if State Farm engaged in deceptive practices when it notified Texas policyholders of the cancellations.

    Texas Attorney General Greg Abbott and State Farm, the state's largest home insurer, are locking horns.It all started when State Farm notified the Texas ...

    Report: Tablets Will Surpass iPad Usage By 2016

    Kindle Fire, other tablets likely to be dominant, study finds

    With all of the cool and unique things that Apple iPads can do, it's hard to believe that in a few short years more people will be using tablets like the Amazon Kindle Fire over iPads

    It's surprising but true, according to a study conducted by NPDDisplaySearch. The market research company says that shipments of tablets will increase from 81.6 million units in 2011 to 424.9 million units by 2017. For the year 2013, the prediction for tablets being shipped will go up from 168.9 million to 184.2 million. Wow! Right?

    One of NPD's researchers explains why:

    "As the market matures and new competitors become better attuned to consumer preferences and find opportunities to break new ground, we expect the landscape to change dramatically, giving consumers more choices, which will drive demand for more devices," said NYDDisplaySearch's senior analyst Richard Shim.

    The sheer customer demand for tablets will also increase, as results of the survey confirm that the number of tablets shipped will far exceed shipments for notebook PCs by 2016. The report relates this growth to future tablets being able to tap into new operating systems and display functions.

    Laptops fading

    If you look around, tablets have nearly replaced laptops as the go-to piece of portable technology. In a separate 2011 survey conducted by The Small Business Authority (TSBA), it was fond that more independent business owners use tablets than laptops. In fact, 55 percent of 1100 business owners expect to use a "tablet or other device" in the very near future, according to the survey.

    If computer usage of the independent business owner is any indication to the changing technology climate, laptops and iPads could easily become computer relics of yesteryear. Not to mention the poor and forgotten about desktop computer.

    "We are surprised but closely focused on the growth of the tablet as a tool for independent business owners," said Barry Sloane, the president and CEO of TSBA. "Our client base in excess of 100,000 business accounts when surveyed indicated that over 50 percent are utilizing the tablet as one of their several devices for business applications."

    Even though Apple is the Goliath to everyone else's David, experts believe that future looks of tablets will lead iPad loyalists over to alternate devices like the Amazon Kindle Fire. The DisplaySearch report also confirmed that more tablets will feature AMOLED screens, increasing in size from 3 percent to 30 percent by 2017.

    If one still isn't convinced that tablets will surpass iPads in the near future, just look at the Charlottesville City School System in Virginia. Their school district handed out 2,000 tablets to their students, choosing them over iPad's because of security and durability reasons.

    And of course, once a new technology becomes the standard for school children, it pretty much sets the precedent for future devices and technology use. Meaning that you'll probably be kissing that beloved iPad goodbye just to keep up with the ever changing computer trends.

    With all of the cool and unique things that Apple iPad's can do, it's hard to believe that in a few short years more people will be using tablets like the ...

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      Texan Gets Prison Term in Mortgage-Rescue Case

      Collected more than $1.6 million from distressed homeowners

      An Austin, Texas, man was sentenced today in the Western District of Texas to 61 months in prison and was ordered to forfeit $84,010 for his role in operating a foreclosure-rescue scam in Southern California and elsewhere that charged distressed homeowners fees in exchange for fraudulently delaying foreclosure sales.

      Frederic Alan Gladle, 53, was sentenced by U.S. District Judge Lee Yeakel.  Gladle pleaded guilty on Jan. 6, 2012, to one count of bankruptcy fraud and one count of aggravated identity theft.  He was originally charged on Dec. 9, 2011.  In addition to the $84,010, Gladle was ordered to forfeit 63 prepaid, reloadable debit cards that he used to further his scheme.

      “Mr. Gladle concocted an elaborate fraud scheme to use the financial crisis to his criminal advantage,” said Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.  “He preyed upon vulnerable homeowners facing foreclosure, just as the housing bubble began to burst and stood in the way of financial institutions attempting to collect on their debts.  We will continue to pursue scam artists like Mr. Gladle and ensure that they are held accountable for their crimes.”

      Victims in distress

      “Foreclosure-rescue scams are designed to victimize people in extreme financial distress,” said U.S. Attorney Andre Birotte Jr. of the Central District of California.  “Financial predators like Mr. Gladle need to be held accountable for the harm they cause and today’s sentence does just that, sending the message to scam artists like Mr. Gladle that the final outcome for their criminal schemes is a long stay in federal prison.”

      “Gladle preyed on struggling homeowners with promises to delay their foreclosures for a fee,” said Christy Romero, Special Inspector General at SIGTARP.  “To forestall the foreclosures, Gladle deeded away a portion of their homes to unsuspecting debtors in bankruptcy, stealing the debtors’ identities and forging their signatures.  Gladle exploited homeowners, the debtors whose identities he stole, and multiple banks, including TARP banks.  The exploitation of TARP will not be tolerated, and SIGTARP and our partners will hold individuals accountable for their actions.”

      “This scheme was particularly insidious in that Mr. Gladle exploited victims who were already in financial straits,” said Assistant Director in Charge Steven Martinez of the FBI’s Los Angeles Field Office.  “This sentence should send a message to those contemplating similar fraud targeting vulnerable individuals or the banking system and, in addition, should encourage those trying to salvage their homes to beware of fraudulent rescue offers.”

      Five aliases

      Gladle admitted that beginning in October 2007 and continuing until October 2011, he operated a foreclosure-rescue fraud scheme that netted him more than $1.6 million in fees from distressed homeowners.  According to court documents, Gladle used five aliases to avoid detection, including stealing the identity of at least one person and setting up a mobile phone account in that victim’s name.

      Gladle admitted that he recruited homeowners whose properties were in danger of imminent foreclosure and falsely promised to delay the foreclosures for up to six months, in exchange for a fee of approximately $750 per month.  Gladle, directly or through salespersons, directed homeowners to sign deeds granting fractional interest in their properties to debtors in bankruptcy proceedings whose names Gladle found by searching bankruptcy records.  The debtors were unaware that their names and bankruptcy cases were being stolen by Gladle in his scheme.  Gladle then sent the unsuspecting debtors’ bankruptcy petitions, and the deeds that transferred fractional interests to the debtors, to the homeowners’ lenders to stop foreclosure proceedings.

      Because bankruptcy filings give rise to automatic stays that protect debtors’ properties, the receipt of the bankruptcy petitions and deeds in the debtors’ names forced lenders to cancel foreclosure sales.  The lenders, which included banks that received government funds under the Troubled Asset Relief Program (TARP), could not move forward to collect money that was owed to them until getting permission from the bankruptcy courts, thereby repeatedly delaying the lenders’ recovery of their money.  When homeowners wanted to void the deeds to the unsuspecting debtors, Gladle would forge the debtors’ signatures on papers voiding the deeds.

      A defendant charged in the Northern and Central Districts of California for a separate similar foreclosure rescue scheme, Glen Alan Ward, was arrested in Canada last month.  Ward has been a fugitive sought by U.S. federal authorities since 2000.  According to court documents, Ward, who also goes by the name Brandon Michaels, is alleged to have worked with and taught Gladle the scheme.  Ward is currently being detained in Canada pending his extradition to the United States.

      An Austin, Texas, man was sentenced today in the Western District of Texas to 61 months in prison and was ordered to forfeit $84,010 for his role in oper...

      Qwest Fraud Victims Get $44 Million

      Justice Department returns funds recovered from perpetrators

      The Justice Department has returned approximately $44 million to victims of a securities fraud scheme related to Qwest Communications International Inc., Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney John F. Walsh for the District of Colorado and Special Agent in Charge James F. Yacone of the FBI’s Denver Division announced.

      The $44 million in funds were forfeited to the United States as a result of the 2007 federal conviction of Qwest’s chief executive officer, Joseph P. Nacchio, for securities fraud.  The forfeited funds are being returned to 112,210 victims who incurred losses on Qwest securities purchased during the fraud scheme. 

      Between 1999 and 2002, Nacchio publicly announced unrealistic revenue projections for Qwest and then caused Qwest to issue false and misleading statements to the public about the company’s financial condition, as part of his scheme to commit securities fraud.  After the irregularities were discovered, Qwest stock, which had traded as high as $60 per share, plummeted to about $1 per share.

      Following his conviction, Nacchio was sentenced to 70 months in prison and was ordered to forfeit $44 million in funds, the net proceeds he received from the fraud scheme.  Nacchio was also ordered to pay a $19 million fine, which, by law, was paid to a fund for victims of crime. 

      “Securities fraud is a particularly insidious crime because it undermines public confidence in the financial markets,” said U.S. Attorney Walsh.  “I am pleased that we were able to recover more than $44 million in criminal proceeds and return it to innocent Qwest investors.”

      “Following his conviction for securities fraud, Mr. Nacchio was ordered to forfeit $44 million,” said Assistant Attorney General Breuer.  “Today, we are fulfilling a central objective of the Criminal Division’s Victim Asset Recovery Program and returning those funds to the victims of Mr. Nacchio’s crime.”

      Persons with questions about the Qwest distribution should contact the Remission Administrator at 1-877-268-3001, or visit the website at www.gilardi.com/qwestremission.

      The Justice Department has returned approximately $44 million to victims of a securities fraud scheme related to Qwest Communications International Inc.,...

      Spirit Raising Carry-On Bag Fee to As Much As $100

      Feels backlash after refusing refund to dying ex-Marine

      Spirit Airlines, which makes no apologies for the many fees it charges for "extras," like checking a bag, is raising its fees November 6. Then, stowing a bag in an overhead compartment in the cabin will cost as much as $100.

      The news has put Spirit's already tree-top reputation into a sharp descent to a net negative sentiment of 36 percent, according to a ConsumerAffairs sentiment analysis of about 27,000 comments on social media.

      That particular fee applies to tickets purchased at the gate. The current carry-on fee for those tickets is $45, so the increase is 122 percent.

      Consumers rate Spirit

      Other Spirit fees aren't going up as much. The fee for a carry-on bag with a ticket purchased online is going up to $35 from $30. The first checked-bag fee on domestic flights is going up from $28 to $30.

      For tickets purchased at the reservations counter or at an airport kiosk, the carry-on fee is going up from $40 to $50.

      Low fares, lots of fees

      Spirit offers low fares but makes up for it by charging a fee for just about everything. If consumers aren't aware of this policy, they can easily assume the posted fare is what they'll pay and be in for a rude shock.

      "I purchased a ticket on Spirit to Dominican Republic on spring break, because it was $80 less than American Airlines. Boy, was that a mistake," Diego, of Miami, Fla., wrote in a ConsumerAffairs post. "Spirit charges you $44 per checked bag, plus $25 per carry on, and if you go over 1 pound, they charge you 25 bucks. The service is horrific. The airplanes are filthy. Flight attendants are rude."

      PR pounding

      Meanwhile, the airline is taking a public relations pounding this week after it denied a refund to a dying ex-Marine, whose doctor ordered him not to fly. Consumers, like Melissa, of Tampa, Fla., have blasted Spirit after it denied 76-year old Jerry Meekins' request for a refund of his $197 ticket charge.

      "The statement you gave regarding the elderly man with terminal cancer who could not be refunded his money was extremely cold-hearted," Melissa wrote at ConsumerAffairs. No. Let me re-word that more accurately: stone cold, Ted Bundy cold. If a refund could not be issued, would it have killed you people to be sympathetic, apologetic, and slightly gracious in your choice of words? You basically told that man he can croak and thanks for the $190.00! How uncaring!"

      The incident prompted one outraged consumer to launch a "Boycott Spirit Airlines" Facebook page. The page had more than 17,000 likes in a few days time.

      Spirit Airlines, which make no apologies for the many fees it charges for "extras," liking checking a bag, it raising its fees November 6. Then, stowing a ...

      FTC: Consumers Lost $450 Million in Get-Rich-Quick Infomercial Scam

      Agency wins court judgment against massive scam

      The Federal Trade Commission has won a court judgment against the marketers of three get-rich-quick systems who deceived nearly a million consumers and is seeking more than $450 million in damages.

      The marketers produced and promoted the infomercials for "John Beck's Free & Clear Real Estate System," "John Alexander's Real Estate Riches in 14 Days," and "Jeff Paul's Shortcuts to Internet Millions." The court found that the infomercials misled consumers and that despite the marketers' easy-money claims for the systems, which cost $39.95 each, nearly all the consumers who bought them lost money.

      On April 20, 2012, Federal District Judge Jacqueline H. Nguyen, of the U.S. District Court for the Central District of California, granted the FTC's request for summary judgment and asked the agency and defendants to submit arguments on the appropriate remedy for the violations. 

      Magic money

      Regarding the John Beck system, the court found that the defendants falsely represented that consumers could purchase homes at tax sales in their own area for pennies on the dollar and that they could make money easily with little financial investment.

      The court found that the earnings claims in the John Alexander infomercial were false, and that the Jeff Paul infomercial misled consumers by creating an overall impression that "a typical consumer can easily, quickly, and 'magically' earn thousands of dollars per week simply by purchasing and using" the system. In contrast to the infomercials' easy-money claims, the court found that less than one percent of consumers who purchased the systems made any profit whatsoever.

      Consumers who purchased the systems were automatically enrolled in continuity programs that charged recurring fees and cost an extra $39.95 per month. The court found that the defendants failed to adequately disclose that consumers who purchased the systems would be enrolled in the continuity plans and submitted consumers' payment information without their express informed consent, in violation of the FTC Act and the Telemarketing Sales Rule (TSR).

      Coaching services

      In addition, the defendants offered personal coaching services, which cost up to $14,995, to consumers who purchased any of the three systems. The court found that, contrary to the defendants' claims that consumers would quickly and easily earn back the cost of the coaching program and that the coaching would substantially enhance consumers' chances of making money, almost all consumers who purchased coaching programs lost money. The telemarketers also violated the TSR by repeatedly calling consumers who previously asked the defendants not to contact them.

      The court found John Beck Amazing Profits LLC, John Alexander LLC, Jeff Paul LLC, Family Products LLC, and Mentoring of America LLC liable for the misrepresentations in the infomercials and those made by the defendants' telemarketers. Gary Hewitt and Douglas Gravink were found to have controlled each of the corporate defendants and to be liable for injunctive and monetary relief. In addition, Beck, Alexander, and Paul were found liable for the misrepresentations concerning their own systems because they participated directly in the deceptive advertising, knew that the infomercials made material misrepresentations, "or at least were recklessly indifferent to the truth or falsity of the infomercials."

      The Federal Trade Commission has won a court judgment against the marketers of three get-rich-quick systems who deceived nearly a million consumers and is ...

      Target Tells the Amazon Kindle To Get Lost

      Kindle gets the heave-ho, replaced by Apple and the Nook

      Don't go to any Target stores for Amazon's Kindle e-book reader, because it has officially been discontinued, and Target Corp has no intentions of bringing it back. Target spokeswoman Molly Snyder said "is phasing out Amazon and Kindle branded products in the spring of 2012."

      After selling the Kindle for two years, the department store giant will still offer "a full assortment of e-readers and supporting accessories including the Nook," explained Snyder, but she didn't provide a detailed reason for the abrupt sales stop. The tablet has already been taken from Target's website, and soon store shelves will not be housing any new devices either.

      The fact that Target is soon expanding their Apple products in their stores may provide some insight into the exit of the Kindle. Whether selling Amazon products is an official switch to avoid  conflicts of interest with Apple remains to be seen, but it does appear to be the logical reason for the demise of the Kindle in Target Corp's stores.

      Big seller but ... 

      Consumers rate Target

      It's also possible that Target simply chose not to renew a contract with Amazon, because they'll have a larger profit share with the Apple folks. Or, the Target Corp. wants to add some of Apple's cool and cutting edge image to their sometimes straightforward middle America brand persona. It's hard to exactly pinpoint the actual reason, as both Amazon and Target failed to respond to the media's request for further explanation.

      The irony in all of this that the Kindle Fire was Target's best selling tablet on Black Friday in 2011, which leads one to believe the discontinuation isn't attached to poor sales. Also, there are no Amazon stores to showcase the Kindle, which makes Target a logical partner. Reportedly Amazon will be testing a pop-up store in Seattle, which also may be an answer to why their relationship with Target is coming to an end.

      Apple is also raising its presence with Target by putting up mini-sub-stores in many of Target's locations, which will probably make most people forget that the Kindle ever lived at Target in the first place. Although Amazon's Kindle Fire is making a name for itself, Apple's iPad is still chief among tablets. Since its introduction in 2010 Apple has sold nearly 55 million iPads.

      Snyder also added that "Target continually evaluates its product assortment to deliver the best quality prices for our guests." Which leads one to believe that Target has something up their sleeve as it pertains to the world of tablets, but for now, they're choosing to keep mum about it.

      Don't go to any Target stores for Amazon's Kindle e-book reader, because it has officially been discontinued, and Target Corp has no intentions of bringing...

      Samsung Goes Against the iPod Touch With the New Galaxy

      Why buy a smartphone when a connected media player will do?

      Remember when cell phones were actually used for making phone calls? Of course they still are, but with the many extras today's smartphones come with, it's often hard to remember that their primary use is for making and receiving phone calls.

      But hey, if you want extra, extra is going to cost, right? Which is why smart phone prices have become way too hefty for some, especially for those who are on a fixed budget.

      A popular alternative for the pricey smartphone is a connected media player, which has many of the smartphone features like web access  and the ability to snap high quality photos, but is priced much less since it doesn't actually make phone calls like the smartphone does. But again, when is the last time we thought of our smartphones as phones, and not pocket sized laptops?

      Sneaky jackal

      Readers rate Samsung phones

      Currently, Apple's iPod Touch is the king of the media player jungle, as it closely resembles the iPhone, with a 3.5-inch screen, pretty decent resolution, and the ability to run many of the same apps. But if the iPod Touch is the lion king of the media player jungle, then the newly made Galaxy Player 3.6 from Samsung is the sneaky jackal creeping to pounce on the competition. (Samsung is already top dog in smartphone sales, as we reported yesterday while Apple remains stuck in third place).

      The main draw of the Galaxy Player 3.6 is its $50 lower cost, which will entice those who desire smartphone features but not smartphone costs, and in about 10 days Samsung will release a new model called the Galaxy Player 4.2 for $200, which is rumored to be actually closer to the iPod Touch with a slightly larger screen and good quality speakers.

      Other notable features of the Galaxy Player 3.6 include a camera that actually takes better still photos than the iPod Touch, an FM radio and expandable memory. The drawbacks consist of a bulkier and heavier feel than the Touch, with seemingly poorer resolution. Not horrible resolution but it certainly doesn't provide the detailed imagery that the Touch or iPhone possess.

      If you're looking for stronger resolution, you may want to wait for the 4.2-inch model to be released , as it does show a clearer picture. The 3.6-inch model can also be coupled with a cell phone through Bluetooth and one will be able to receive, but not make out going calls. It also comes with 8 gigabytes of internal memory, and can be expanded by the purchase of a memory card. 

      The Galaxy Player can also make voice and video calls, while sending text messages if you're close to a Wi-Fi signal. It also has the ability to get media from a computer by plugging the media player through a cable and manually moving the files. Its a bit labor intensive but still a useful feature none the less.

      So if purchasing the highly coveted smartphone doesn't seem that smart to you in terms of pricing, the Galaxy Player 3.6 and 4.2 may be a better financial fit, especially if you're willing to live without all of iPod Touch's bells and expensive whistles.

      Remember when cell phones were actually used for making phone calls? Of course they still are, but with the many extras today's smartphone's come with, its...

      Microsoft Plans to Release Xbox 360 With Kinect Bundle For $99

      Official announcement may come as early as next week

      Today gamers can do a collective high-five, as it's rumored that Microsoft will launch an Xbox console package for $99, with a monthly subscription. The official announcement is expected to come as early as next week, according to sources close to Microsoft.

      The new deal will consist of the 4GB console with a Kinect sensor for the $99 price and will also include a monthly subscription of $15 that will be good for two years. Customers will be able to access Xbox Live Gold service, and buy a two-year warranty, which isn't a bad deal.

      Before the deal becomes official, gamers would have to purchase a two-year Xbox Live Gold contract for $420, which consists of $299 for the Xbox 360 and Kinect bundle, and $120 for the two-year contract. This is part of a major move by Microsoft to match its competitors Apple TV and Roku.

      This of course increases Microsoft's gaming customer base, as those who originally found the XBox 360 too pricey will be able to give the popular video game console a whirl, which serves as a victory for the teenager who works part time, or the college student who hasn't seen a decent bit of money since his high school job.

      Not online

      In the initial phases of the new package, the deal will only be offered at Microsoft stores throughout the United States and not online, which may exclude those consumers who aren't in Microsoft's retail areas.

      There will also be an early termination fee for those who choose to break the two-year contract prematurely, making the overall deal closely resemble a cell phone contract. It also mirrors what PC makers did in the 90s when they attempted to shift their industry from a computer being a luxury item to a regular household family staple, by practically giving them away and allowing customers to pay monthly.

      Some experts believe that this move could potentially change the entire gaming industry and make gaming consoles much more accessible to everyone, similar to how the I-pod went from being too pricey for most, to extremely affordable for many.

      If one doesn't mind entering into a two year commitment, this new Xbox deal may be right up your gaming alley. It's yet another contract to lock yourself into, along with your cell phone, NetFlix and other contractual commitments, but it looks like this new way of purchasing pricey products may be the norm in the very near future.

      Today gamers can do a collective high-five, as it's rumored that Microsoft will launch an Xbox console package for $99, with a monthly subscription. The of...

      Air Fares Rose 10 Percent In Fourth-Quarter of 2011

      Carriers cut back on flights, double down on fees

      It continues to cost more to fly to your destination, according to the latest report from the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS). Average domestic air fares rose to $368 in the fourth quarter of 2011, up 10 percent from the average fare of $335 in the fourth quarter of 2010.

      Cincinnati had the highest average fare, $502, while Atlantic City, NJ, had the lowest, $189.

      Fourth-quarter fares were 2.1 percent higher than the third quarter. Fares include only the price paid at the time of the ticket purchase and do not include other fees, such as baggage fees, paid at the airport or onboard the aircraft.

      The government reports average fares based on domestic itinerary fares. Itinerary fares consist of round-trip fares unless the customer does not purchase a return trip. In that case, the one-way fare is included.

      Doesn't count fees

      Fares are based on the total ticket value which consists of the price charged by the airlines plus any additional taxes and fees levied by an outside entity at the time of purchase. Averages do not include frequent-flyer or "zero fares" or a few abnormally high reported fares.

      While air fares went up 10 percent from the fourth quarter of 2010 to 2011, the cost of driving went up much less. Gasoline prices increased about seven percent during the same time period.

      And despite the increase in fares, the New York Times notes that it is getting harder to gets from Point A to Point B, as airlines continue to cut back on flights, especially to smaller cities. The Times notes that direct flights between cities are getting harder to find, with many destinations requiring multiple stops and plane changes.

      Southwest continues to lead

      Consumers rate Southwest

      In January of this year, BTS reports that Southwest Airlines carried more total system and domestic passengers than any other U.S. airline. United Airlines, following its merger with Continental Airlines, carried the most international passengers.

      The report also shows the effects of continued consolidation in the airline industry, as carriers merge. The top 10 US airlines carried 79.7 percent of system-wide passengers, an increase from the 71.9 percent in January 2011.  

      It continues to cost more to fly to your destination, according to the latest report from the U.S. Department of Transportation's Bureau of Transportation ...

      Exmark Quest ZRT Riding Mowers Recalled

      The deck can interfere with the controls, causing a crash hazard

      Exmark is recalling about 2,200 Quest 42” ZRT Riding Mowers. Bearings supporting the riding mower’s deck can fail and cause the deck to interfere with the operator’s controls, resulting in a crash hazard.

      Exmark has received 18 reports of incidents. No injuries have been reported.

      This recall involves 2009-2010 Exmark Quest ZRT riding mowers with 42-inch mower decks, model number “QST20BE422” and serial numbers ranging from 790,000 through 860,652. The model and serial numbers are on a metal plate behind the seat. “Exmark” is printed on the side and “Quest” is printed on the front of the mowers. The mowers are red and gray.

      The mowers were sold by Exmark dealers nationwide from March 2009 through April 2010 for between $4,200 and $4,400. They were made in the United States.

      Consumers should stop using the recalled mowers immediately and contact an Exmark dealer to schedule a free repair and/or to check if the repair has already been made to the mower. Exmark has contacted registered owners of the recalled mowers.

      Consumer Contact: For more information, contact Exmark at (800) 667-5296 between 8 a.m. and 5 p.m. CT Monday through Friday, or visit the firm’s website at www.exmark.com/safety.aspx

      Exmark is recalling about 2,200 Quest 42” ZRT Riding Mowers. Bearings supporting the riding mower’s deck can fail and cause the deck to in...

      In Wake of Recession, Seniors Are Postponing Retirement

      The bigger their loss, the longer they're waiting, study shows

      Many seniors planning for their retirement have found their parental responsibilities haven't quite ended. Others' financial plans simply haven't recovered from the shock of the Great Recession.

      As a result, new research shows that 40 percent of older Americans postponed retirement after 2008. The research is the first to link actual data on household wealth just before and after the downturn to the retirement plans of a nationally representative sample of Americans age 50 and older.

      “The typical household lost about five percent of its total wealth between the summers of 2008 and 2009,” said Brooke Helppie McFall, an economist at the University of Michigan Institute for Social Research (ISR). “The average person would need to work between 3.7 and 5 years longer than they planned in order to make up the money they lost.”

      But people do not intend to work long enough to make up everything they lost, according to McFall.

      Trade-offs

      “In considering when to retire, people make trade-offs between their desire for more leisure and for more time to spend with friends and family, and their desire to be financially secure in retirement,” she said. “So the typical person we surveyed who planned to work longer because of the recession only planned to work about 1.6 years longer than they had originally planned. That isn’t long enough to make up what they lost, but they’re trading off time for money.”

      And that means the kids are on their own. McFall found that people who decided to postpone retirement also expected to leave less for their heirs.

      Some people, of course, are in better shape than others. Those who started saving earlier and more aggressively are better able absorb the recent losses. McFall found that people who were pessimists about whether the stock market was going to rebound in the next year, and people who were within two years of their initial retirement age, were the most likely to say they planned to work longer.

      “I also found that the greater the loss, the more likely people were to delay their retirement,” she said. “Still, very few people decided that they would work long enough to recoup their entire economic loss.”

      In the analysis, McFall took into account financial wealth, including stock market, cash and retirement accounts, and net equity in housing wealth, as well as the likely value of future earnings. She also notes that her study has a personal basis.

      “I became interested in this topic after my mother-in-law decided to postpone her retirement as a result of the Great Recession,” McFall said. “She decided to put it off for two years, and then to work part-time for a while instead of quitting all at once.”

      Many seniors planning for their retirement have found their parental responsibilities haven't quite ended. Others' financial plans simply haven't recovered...

      Seniors Urged to Surf the Web and Exercise

      Some computer use is good for you, Mayo Clinic study shows

      If you spend too much time in front of a computer, you might not get enough exercise. But if you manage to balance your time on the computer with moderate exercise, you'll lessen your chances of memory loss as you age.

      Researchers at the Mayo Clinic say the combination of computer and exercise is more effective than either computer use or exercise alone.

      Previous studies have shown that exercising your body and your mind will help your memory but the new study, published in the May 2012 issue of Mayo Clinic Proceedings, adds a new dimension. It reports a synergistic interaction between computer activities and moderate exercise in “protecting” the brain function in people more than 70 years old.

      Researchers studies 926 people in Olmsted County, Minn., ages 70 to 93, who completed self-reported questionnaires on physical exercise, and computer use within one year prior of the date of interview.

      Exercising your muscles and your brain

      Moderate physical exercise was defined as brisk walking, hiking, aerobics, strength training, golfing without a golf cart, swimming, doubles tennis, yoga, martial arts, using exercise machines and weightlifting. Mentally stimulating activities included reading, crafts, computer use, playing games, playing music, group and social and artistic activities and watching less television.

      Of those activities the study singled out computer use because of its popularity, said study author Dr. Yonas E. Geda, a physician scientist with Mayo Clinic in Arizona. Recognizing what keeps seniors mentally sharp is more important now than ever.

      “The aging of baby boomers is projected to lead to dramatic increases in the prevalence of dementia,” Geda said. “As frequent computer use has become increasingly common among all age groups, it is important to examine how it relates to aging and dementia. Our study further adds to this discussion.”

      If you spend too much time in front of a computer, you might not get enough exercise. But if you manage to balance your time on the computer with moderate ...

      Study: Garlic Compound Can Make Food Safer

      Spice is much more effective than antibiotics in killing bacteria

      Garlic, it turns out, isn't just useful for keeping vampires at bay. Researchers at Washington State University have found that a compound in garlic is 100 times more effective than two popular antibiotics at fighting a bacteria that causes intestinal illness.

      For consumers, it means safer food that will have a longer shelf-life. The discovery opens the door to new treatments for raw and processed meats and food preparation surfaces. It should also significantly reduce instances of foodborne illness.

      "This work is very exciting to me because it shows that this compound has the potential to reduce disease-causing bacteria in the environment and in our food supply," said Dr. Xiaonan Lu, a postdoctoral researcher and lead author of the paper.

      Safer food

      Michael Konkel, a co-author who has been researching the bacteria - Campylobacter jejuni - for 25 years, says its the first step in developing new strategies to keep food safer.

      "Campylobacter," says Konkel, "is simply the most common bacterial cause of food-borne illness in the United States and probably the world."

      Some 2.4 million Americans are affected every year, according to the Centers for Disease Control and Prevention, with symptoms including diarrhea, cramping, abdominal pain and fever. The bacteria are also responsible for triggering nearly one-third of the cases of a rare paralyzing disorder known as Guillain-Barré syndrome.

      Does what antibiotics can't

      Most infections stem from eating raw or undercooked poultry or foods that have been cross-contaminated via surfaces or utensils used to prepare poultry. The garlic-derived compound, diallyl sulfide, is able to kill the bacterium when it is protected by a slimy biofilm that makes it 1,000 times more resistant to antibiotics.

      The research is still at a basic stage and the scientists say it won't be ready for practical applications anytime soon. But the research team has no doubt that it will. Diallyl sulfide, they say, will be widely used to clean food preparation surfaces. They predict it will also be used as a preservative in packaged foods like potato and pasta salads, coleslaw and deli meats.

      Garlic, it turns out, isn't just useful for keeping vampires at bay. Researchers at Washington State University have found that a compound in garlic is 100...

      Anti-Alcohol Group Attacks 'Drink Responsibly' Slogan

      Calls for states to investigate 'deceptive advertising'

      Many of the advertisements for beer, wine and spirits these days carry the tag line “drink responsibly.” But an anti-alcohol advocacy has gone on the attack, saying the disclaimer does nothing to reduce the overconsumption of alcohol.

      "Alcohol producers and marketers are more interested in their public relations than public health," said Sarah Mart, director of research at the group Alcohol Justice. "So it's not surprising that they hide behind a vague, ineffective slogan that does nothing to reduce the annual catastrophe of harm caused by their products."

      The group takes particular exception when alcoholic beverage marketers work their brand name into the slogam as in "Enjoy Heineken Responsibly" or "The perfect way to enjoy Patron is responsibly."

      Alcohol Justice said it reviewed "drink responsibly" messages in print ads in the September/October 2011 issues of forty-one different magazines that enjoy a high proportion of youth readership. They analyzed frequency, location, size, and content of beer, spirits and alcopops brand ads found in those publications, and compared the size of "drink responsibly" messages, if present, in the ads. Ninety-four percent of the ads, the group says, contained "drink responsibly" messages.

      Promoting brands

      "We found numerous problems with the "drink responsibly" messages in our review," said Mart. "Messages blended into backgrounds so that they virtually disappeared, or were tiny in relation to the size of the entire ads. But the most obvious problem was that companies use the message to promote brands, loyalty, and drinking."

      The group said it is asking the state attorneys general to investigate the industry's “drink responsibly” messages as “misleading and deceptive advertising.”

      The group advocates restricting advertising and raising taxes on alcoholic beverages as a way to discourage over-consumption.

      Alcoholic beverage makers have, indeed, embraced responsible drinking in the last decade. All major brands have campaigns to that effect. But they aren't the only ones. The U.S. Marine Corps also has a “drink responsibly” campaign.

      “The unit leaders aboard MCAS Iwakuni are focused on eliminating alcohol abuse and decreasing the number of alcohol-related incidents,” the Marines say on their website. “Combating the debilitating threat posed by alcohol abuse and alcohol dependency on Marines, sailors, and mission readiness requires a total commitment from all levels of leadership. Leaders must be alert to characteristics of alcohol abuse and with the symptoms of the disease of alcohol dependency. All leaders must not in any way promote or condone alcohol misuse.”

      The Corps notes that alcohol is closely associated with violence, with about 40 percent of all crimes committed under the influence of alcohol.

      Many of the advertisements for beer, wine and spirits these days carrying the tag line “drink responsibly.” But an anti-alcohol advocacy has go...

      Google Wi-Spy Scandal Heats Up

      What did Google know? And when did it know it?

      Zardoz

      In its relatively short lifespan, Google has turned into a real-life Zardoz, the all-knowing stone head that dominates a post-apocalyptic Earth in the 1974 science fiction film of the same name. But unlike the openly malevolent Zardoz, Google cloaks itself in a do-no-evil mantle.

      But that mantle, like the curtain that shielded the ill-fated Wizard of Oz, may be wearing a bit thin as critics question how much Google knew about the rogue engineer supposedly responsible for Google's gathering of massive payloads of data from private Wi-Fi networks.

      "Google's motto has always been 'Do no evil.' It should also be 'Do no eavesdropping,'" said Rep. Edward J. Markey (D-Mass.), senior member of the House Energy and Commerce Committee, according to the Los Angeles Times. "Google needs to fully explain to Congress and the public what it knew about the collection of data through its Street View program."

      Google already faces an ongoing Federal Trade Commission (FTC) anti-trust probe that took on new life last month when it was disclosed that the government had hired a top private attorney to manage to case. 

      Now Consumer Watchdog, a non-profit advocacy group in California, has filed a Freedom of Information Act Request with the Federal Communications Commission (FCC) seeking all documents related to the Commission’s investigation of the Google "Wi-Spy" scandal. The FCC recently fined Google $25,000 for willfully obstructing the FCC’s investigation into how Google’s Street View cars gathered “payload data” from private Wi-Fi networks. 

      “The FCC order gives an overview of what happened and shows that others including a senior manager knew – or should have known – about plans to gather messages from private Wi-Fi networks,” said John M. Simpson, Consumer Watchdog’s Privacy Project director. “The order makes it clear that Google stonewalled and was uncooperative.  That’s why the public needs to see all the documents that are related to the case.”

      “Google is paying a $25,000 fine for its noncompliance and is trying to portray the FCC order as exonerating the company.  That is not the case at all,” said Simpson. “The FCC order shows that substantial questions about the Wi-Spy scandal remain unanswered and that is largely because the engineer responsible for writing the code that gathered payload data invoked his Fifth Amendment right not to testify.”

      Engineer Doe

      The New York Times identified the engineer, known as “Engineer Doe” in the FCC order, as Marius Milner on Tuesday.  On Monday Consumer Watchdog said  “Engineer Doe” should be granted immunity from prosecution for his testimony before a Senate hearing.

      The FCC order makes clear that as early as 2007 or 2008 Street View team members had wide access to Milner’s design document and code in which the plan to intercept “payload data” was spelled out.  One engineer reviewed the code line by line, five engineers pushed the code into Street View cars and, according to the FCC, Milner specifically told two engineers working on the project, including a senior manager, about collecting ‘payload data.’  Nonetheless, they all claim they did not learn payload data was being collected until April or May 2010. 

      The FCC first released a highly censored version of its order on April 13, 2012.  Consumer Watchdog filed a FIOA request seeking an un-redacted version of the order.  The FCC then sent a letter to Google saying it would have 10 days to justify censoring the order.  Over the weekend Google released a version of the order that omitted only the names of people the FCC interviewed.  Consumer Watchdog has withdrawn the original FOIA request for an uncensored version of the order.

      The largely un-redacted version that the Internet giant made available over the weekend shows a troubling a portrait of a company where an engineer could run wild with software code that violates the privacy of tens of millions people worldwide, but the corporate culture of “Engineers First” prevented corporate counsel or other engineers from stopping the privacy violations, Consumer Watchdog said.

      The Wi-Spy scandal is still being investigated by a group of more than 30 state attorneys general.  Consumer Watchdog attorneys are counsel for the plaintiffs in a federal class action suit against Google in the Wi-Spy case.

      Consumer Watchdog, a non-profit advocacy group in California, has filed a Freedom of Information Act Request with the Federal Communications Commission (FC...

      Genetic-Labeling Measure Heads for the Ballot in California

      Passage would likely force similar labeling throughout the country

      One would think it wouldn't be such a difficult task to get product makers to list when food products are being genetically altered, but it is. That may be changing, however, thanks to the California Right to Know campaign.

      Celebratory rallies will take place today all over the state of California, as the campaign obtained 971,126 signatures, allowing a ballot initiative to be voted on in November that would force product makers to label when foods are being genetically altered.

      Only 555,236 were actually needed for the ballot initiative to be voted on, but campaign organizers got almost doubl the necessary amount of signatures.

      While the ballot initiative, if passed, would apply only to California, the state is so big -- with an estimated 2012 population of 37.7 million -- that regulations imposed there tend to drive behavior around the country. 

      And then there's public opinion. Whether scientifically valid or not, many consumers hold the view that genetically-engineered foods are less healthful than their "natural" counterparts, even though the purpose of bioengineering is often to avoid having to use harmful pesticides. Kellogg's Kashi recently learned the hard way how sensitive consumers are to unknowingly devouring modified foods. 

      A ConsumerAffairs sentiment analysis of about 330,000 consumer comments on social media finds fewer than 20 percent had anything good to say about genetically-engineered foods.

      "I am so proud of the army of volunteers, many of them mothers and grandmothers, who stood tirelessly in the rain and cold to gather signatures," said Pamm Larry, who first started the California Right to Know campaign, which was initiated through her group Label GMOs. "Thousands of volunteers across the state contributed to this victory. The people of California have spoken: we will have the right to know what we're eating and no one will stop us," she said in a statement.

      Not unanimous

      Not everyone is happy about the ballot measure, as those in the biotech industry feel consumers are wrongfully being driven by fear. They say that crops that have been engineered to tolerate herbicides present no larger health risk than non-engineered foods.

      "They basically are trying to scare consumers through labeling," said Richard Lobb, managing director for the Council for Biotechnology Information. "The obvious objective is to push biotechnology out of the market altogether." The biotech crop business is currently a $13.3 billion dollar industry.

      The spokesman for the Grocery Manufacturers Association, which is also in stark opposition to the labeling initiative, said that food labels should only be used for "critically important food safety and nutritional information." The opposition group donated $375,000 to combat the ballot proposal.

      But for now, neither counter-opinions nor further efforts by opposing groups will stop the victory rallies by Californians.

      "This bumper crop of signatures is a testament to the desire of Californians to know what's really in our food," explained Grant Lundberg, who is the CEO of Lunberg Family Farms. "It is a rich harvest of support for the right to know and the right to choose."

      One would think it wouldn't be such a difficult task to get product makers to list when its food products are being genetically altered, but that has been ...

      Those Mad Men Seem To Be Making a Lot of Consumers Mad

      Now, it's the TruGreen commercial that has some consumers seeing red

      Consumers rate TruGreen

      Consumers don't just complain about a company's product or service. Lately they've taken great offense at their television commercials. Seems those Mad Men are making a lot of consumers mad lately.

      During the holidays ConsumerAffars received complaints about Best Buy's campaign featuring moms competing with Santa Claus to give the best gifts. Mothers of small children especially didn't like it.

      In January JC Penney customers absolutely hated the commercial featuring screaming women. Now, the commercial that has some viewers up in arms is for TruGreen lawn service.

      “I will not be using your product any longer,” wrote Marty, of Calhoun, Ga. “I am furious with your commercial (the f--- word). This is not acceptable for children to see this. I thought you were a family oriented company--apparently not. Who is responsible for this? Did you actually think this was cute? This is just juvenile.”

      A TV commercial that contains the “F” word? No, not really. Debby, of Smithville, Mo., who also objects to the ad, gave a more detailed description in her ConsumerAffairs post.

      “TruGreen's newest 'Weed Slayer' commercial includes, 'What the Fffffff---front yard?' Debby wrote. “The actor begins to say the F-word and then switches to 'front yard.' This is not enough to cover up what he meant to say. We all know he meant to use the “F” word, As a parent and woman I find this type of advertising inappropriate and unnecessary. TruGreen is providing the fodder for our children to have dirty mouths. TruGreen is not a company I care to do business with!”

      Companies seem to draw complaints when they give their ad agencies the freedom to inject a little humor into their advertising. Not everyone seems to find it funny.

      Want to see what all the fuss is about? The commercial is below.

      Consumers don't just complain about a company's product or service. Lately they've taken great offense at their television commercials. Seems those Mad Men...

      Survey: Mother's Day Spending Will Be Up in 2012

      The economy may be shaky but consumers still shell out for Mom

      Is consumer spending really down? Are people not shelling out money the way they used to? Apparently not when it comes to mom, as the average consumer will spend $152.52 on Mother's Day gifts, according to the National Refund Federation's (NRF) 2012 Mother's Day consumer spending survey, ran by BIGinsight.

      Spending for mom this year will show a significant increase and is up from $140.73 this time last year. The survey also estimates that  $18.6 billion will be reached in total spending this Mother's Day.

      Current gas prices and other monetary challenges will not stop consumers across the United States from showering mom with all they can, despite the current economic climate.

      "Despite grappling with high gas prices, Americans will look for sentimental and unique ways to shower mom with affection this year," said Matthew Shay, NRF's President and CEO. "As one of the most important holidays of the year, consumers can expect to see a wide range of promotions from mom's favorite retailers leading up to the big day, including saving on apparel and electronics and even special Mother's Day menu options at restaurants."

      Spending breakdown

      Here is how the survey breaks down exactly what will be spent on Mom this holiday season: Two-thirds (66.4 percent) will purchase flowers, equating to $2.2 billion in spending. Almost one-third (32.8 percent) will buy that pretty sweater or blouse in mom's style, spending $1.6 billion on clothing and other accessories, and since mom also likes electronics 12.7 percent will spend about $1.6 billion on new smart phones, laptops, and tablets.

      Nearly half of Mother's Day consumers (54.3 percent) will dole out $3.4 billion on Sunday brunches and evening dinners. The rest will use their dollars to get mom that gift card to her favorite store, or that popular day spa, totaling 3.4 billion in spending.

      "While still very mindful of their finances, consumers will open their wallets a little more this year to ensure Mother's Day is extra special for the women in their lives" said BIGinsight Executive Vice President Phil Rist. "Many will use the opportunity to comparison shop and research products to save a few bucks, utilizing their mobile and table devices at home and in stores as they look for gifts and other ways to celebrate."

      The survey also revealed where people will shop this Mother's Day holiday. More than one-third (35.6 percent) will buy their gifts at department stores, especially those consumers ages 18-24. Older shoppers may go to discount stores (30.2 percent), and a good portion of consumers (25.6 percent) will buy their gifts online.

      But mom isn't the only person who receives gifts on Mother's Day, as almost 65 percent will shop for their mother or stepmother, and 22.4 percent will buy gifts for their daughter, 8.2 percent for their sister and 7.6 percent for a friend.

      Results of the survey concluded by showing that men will spend a total amount of $189.74 on Mother's Day gifts, while their female counterparts will shell out $117.42, which goes to show that no matter what the current financial situation is, Mother's and the various things they do seem to be completely worth the financial effort.

      Is consumer spending really down? Are people not shelling out money the way they used to? Apparently not when it comes to mom, as the average consumer will...