Current Events in May 2012

A Cook County judge has struck down an Illinois law informally known as the Amazon tax, saying it unconstitutionally discriminates against online advertisers.

Lawmakers in Illinois and elsewhere have been hoping to tax sales by Amazon and other online retailers, both to raise revenue and also to mollify the brick-and-mortar retailers whose lobbyists have put intense pressure on state legislators.

The Illinois law was challenged by the Performance Marketing Association, a Los Angeles-based non-profit.

At issue in the suit was a provision in the law that said any retailer who had advertising contracts with Illinois businesses was deemed to have a "place of business" in the state and thus subject to state sales tax.

When the law was enacted, Amazon severed its relationship with thousands of Illinois websites that carried its advertisements. Several large Illinois Web-based businesses, including FatWallet.com and CouponCabin.com, packed up and moved north to Wisconsin, thus preserving their relationship with Amazon and other major advertisers. 

Illinois Circuit Judge Robert Lopez Cepero ruled last week that the Illinois law violated the commerce clause of the U.S. Constitution. Illinois tax officials say they will appeal.

Walmart has made a few rounds in the media in recent weeks.  Whether it's the recent news of its in-person payment plan for online purchases, or the surprising story of the megastore being caught in a Mexican bribery probe, it seems there's plenty to discuss concerning the large department store chain.

In its latest go-around,Walmart has been ordered to pay back $4.8 million in back wages and damages to employees who weren't given the overtime payments they had earned.

Compensation will be for the years 2004 and 2007, which affected 4,500 vision-center managers and asset protection coordinators who were considered byWalmart to be exempt from federal regulations which would normally provide them with overtime pay.

A lesson

"Let this be a signal to other companies that when violations are found, the Labor Department will take appropriate action to ensure that workers receive the wages they have earned," said Hilda L. Solis, Labor Secretary.

Gregg Rossiter,Walmart's spokesman said that at no time was this case taken casually and immediate action began once knowledge of the owed back pay came to the forefront.

"When the issues resolved today were initially raised, we took them seriously and fully cooperated with the Department of Labor to make sure they were corrected," he said.

The order from the Labor Department cost Walmart $464,000 in civil penalties, while vision center managers will receive $2,300 in compensation, and asset-protection coordinators will get $290 in back pay under the order.

Second round

This is the second round of payouts for Walmart, as they were made to pay almost $34 million to 87,000 of their employees back in 2007.  A portion of workers in that case received payouts of $10,000 each.

The United Food and Commercial Workers Union, along with the campaign 'Making Change at Walmart' came down quite hard on the store for what they believe is Walmart's common practice of placing profit over people.

"The fines Walmart must pay for its overtime violations are just another side effect of the company's growth at any cost strategy. Walmart's top executives and the Walton heirs who own a majority of the company have show they are willing to break the law and harm workers in the name of more profits," the union said.

Nancy J. Leppink, who is the deputy administrator of the Wage and Hour Division, considered this a huge victory for the common worker, and will force other companies to be more mindful of paying what's owed to their employees, and not mis-classifying them.

"Our department has been working with Walmart for a long time to reach this agreement", she said. "I am very pleased that staff in our Southwest region persevered, ensured these employees will be paid the back wages they are owed and brought this case to conclusion. The damages and penalties assessed in this case should put other employers on notice that they cannot avoid their obligations to their employees by inappropriately classifying their workers as exempt."

As predicted, first-time foreclosure starts increased in March, but not by much. Foreclosures were up 8.1 percent from the month of February, but down more than 31 percent from March 2011, according to a report by Lending Processing Services (LPS).

Housing analysts have predicted a surge in foreclosures now that the states and federal government have settled mortgage abuse charges with the industry's five largest lenders. Many foreclosures had been put on hold until the matter was settled.

But the LPS numbers present a mixed picture. Yes, March foreclosure starts hit a five month high. But in spite of that, the number was still far below those seen throughout much of 2011 and all of the previous three years.

The LPS report also shows the national foreclosure inventory stayed relatively stable in March, remaining at the historically high levels maintained since the end of 2010. But the inventory varies widely state to state, and this may account for the mixed picture. In “judicial process” states, where foreclosures must go through the court system, the inventory rate is 6.5 percent. In non-judicial states, the rate is much lower – 2.45 percent.

Most action expected in judicial states

It has primarily been in judicial states that the process came to a halt while the settlement was worked out. Now that the settlement has been approved, we can expect to see the backlog of foreclosures quickly pick up in those 23 states.

The LPS also confirmed an Equifax report this week that mortgage delinquencies have continued to decline, reaching their lowest level since August 2008, with seriously delinquent inventory - loans more than 90 days delinquent - declining in both judicial and non-judicial foreclosure states. That suggests that the current crop of homeowners are having less difficulty making their payments each month.

The rate of new problem loans, seriously delinquent loans that were current six months ago, also continues to improve nationally, in both judicial and non-judicial states. At the same time, the LPS March mortgage performance data did show that foreclosure sales continued to behave somewhat erratically, dropping to their lowest level since December 2010, and most sharply in non-judicial states.

The total mortgage delinquency rate in March was 7.09 percent, down 6.3 percent from February. The total U.S. foreclosure pre-sale inventory rate was 4.14 percent, down slightly from February.

The states with the highest percentage of non-current loans are Florida, Mississippi, New Jersey, Nevada and Illinois. States with the lowest percentage of non-current loans are Montana, Alaska, South Dakota, Wyoming and North Dakota.

If you've taken notice in recent years, consumer cooperatives seem to be a growing trend within the United States. You know what consumer co-ops are, right?

It's when consumers in a specific community or area join forces to open a business and manage it in democratic fashion, while heavily focusing on service instead of profit, basing its products and services on community need. It's certainly not a new concept but it's one that is growing in both popularity and demand.

In a newly released survey conducted by the National Cooperative Business Association (NCBA), it was revealed that most Americans consider consumer co-ops far superior when it comes to the level of both quality and service.

Nearly one-third (29%) of U.S. residents say they are part of a consumer cooperative, while 72 percent of Americans believe co-ops are beneficial to consumers, compared to 11 percent who feel they aren't beneficial.

"Much-needed alternative"

"This survey illustrates that 29,000 cooperatives in this country offer a much-needed alternative that consumers appreciate," conveyed Liz Bailey, who is the interim president and chief executive officer of the NCBA. "At a time when the entire business community is focused on demonstrating shared value and social responsibility, it's gratifying to know that Americans continue to place their trust in member-owned, democratically governed cooperative business enterprises."

Here are some of the benefits and features of a consumer cooperative:

• Membership isn't restricted, as any person of adult age can become a member.
• A Consumer cooperative usually encourages its members to seek out pure and top quality goods at a competitive price.
• Sales can be made to non-members of the co-op at market rate, while making bulk purchases directly from the producers so they can sell items to its members at retail.

"The Consumer Federation of American (CFA) has long believed that cooperatives offer pro-consumer services and enhance pro-consumer competition in the marketplace," said CFA Executive Director Stephen Brobeck. "It is gratifying to learn from this survey that consumers agree with us."

Police around the country say they're seeing an increase in fender-bender robberies, a variant of carjacking.

The scheme works like this: An unsuspecting driver is rear-ended, and gets out the vehicle to assess the damage and to exchange insurance information. The “fender-bender” trap is set, and the driver is then robbed at gun-point or knife-point.

It is a frightening new roadway robbery caper with sundry names, warns AAA Mid-Atlantic.  Police investigators are calling it the “bump-and-rob,” the “bump and run” scheme, and the “tap-and-grab” robbery. By whatever name, rear-ended motorists should be wary of falling prey to the scheme.

The fender-bender robbery scheme is a “crime of opportunity – a thief searching for the most vulnerable prey,” local authorities are cautioning area motorists. In recent incidents in North Potomac, Md., two vehicles were struck from behind by another vehicle while the victims were driving on Jones Lane. The Montgomery County, Md. Police Department believes the incidents are related.

The scheme is another iteration of carjacking. As always, drivers should be careful in a dangerous situation, and be on high alert for any unseen or unknown dangers, advises AAA Mid-Atlantic.  Regardless of the amount of damage that is caused by someone rear-ending you, always consider your personal safety first. “Bump-and-rob” artists stage such incidents to lure unsuspecting drivers out of their cars to rob them of their wallet or purse.

“It’s a copycat crime, and it is manifesting itself around the country, and  this crime is now cropping up here, and that’s disturbing and unnerving to motorists,” said John B. Townsend II, AAA Mid-Atlantic’s Manager of Public and Government Affairs.

“Because most motorists are law-abiding citizens, they are willing to exchange information in the aftermath of a minor accident, and they are eager to file an accident report to make sure any minor damage to their vehicle is covered. That’s the routine, but that makes them vulnerable. They can unwittingly put themselves into harm’s way.”

In fact, in most jurisdictions, the “fender bender” law requires motorists to move their vehicles to the shoulder of the road following minor, non-injury crashes. That can be a costly, risky, and fatal mistake, warns the spokesman for AAA Mid-Atlantic.

“If you are rear-ended, check your surroundings before getting out of the car. If the situation makes you feel uneasy, write a description of the vehicle and the tag number, and signal the car to follow you to the nearest police station or populated area. If you do get out of the car, take your keys and wallet or purse, and stay alert.”

More about fender-bender robberies

The Apple iPhone continued to gain ground, but not fast enough to overtake Samsung, which was the top original equipment manufacturer (OEM) in the U.S. mobile phone space in the first quarter of 2012, according to digital industry analyst comScore.

The study surveyed more than 30,000 U.S. mobile subscribers and found Samsung to be the top handset manufacturer overall with 26.0 percent market share. Google Android continued to grow its share in the U.S. smartphone market, accounting for 51 percent of smartphone subscribers, while Apple captured more than 30 percent.

For the three-month average period ending in March, 234 million Americans age 13 and older used mobile devices. That's got to be close to 100 percent, since the total U.S. population in mid 2011 was estimated to be 311 million.

Samsung ranked as the top OEM with 26.0 percent of U.S. mobile subscribers, moving up 0.7 percentage points. It's followed by LG with a 19.3 percent share.

Apple continued to gain share in the OEM market, ranking third with 14.0 percent of mobile subscribers, up 1.6 percentage points, followed by Motorola with 12.8 percent and HTC with 6.0 percent.

Upgrading to smartphones

The transition to smartphones also gained speed in the first three months of this year. More than 106 million people in the U.S. owned smartphones during the three months ending in March, up nine percent from December.

Google Android ranked as the top smartphone platform with 51 percent market share, growing by 3.7 percentage points. Apple's share of the smartphone market increased 1.1 percentage points to 30.7 percent. RIM ranked third with 12.3 percent share, followed by Microsoft with 3.9 percent and Symbian with 1.4 percent.

In March, 74.3 percent of U.S. mobile subscribers used text messaging on their mobile device.

Downloaded applications were used by 50 percent of subscribers, up 2.4 percent, while browsers were used by 49.3 percent, up 1.8 percent.

Smartphone users also increased their use of social networking sites, online games and music services.

A federal class action lawsuit claims that Apple double-bills customers who buy products at its e-stores and routinely refuses to issue refunds to consumers who discover the double-billing.

In the suit, Robert Herskowitz claims he bought a single song from the iTunes store for $1.29, for which Apple charged him twice. 

When he brought the error to Apple's attention, he says, the company responded: "Your request for 'Whatya Want from Me' was carefully considered; however, according to the iTunes Store Terms of Sale, all purchases made on the iTunes store are ineligible for refund. This policy matches Apple's refund policies and provides protection for copyrighted materials," according to Courthouse News Service. 

Herskowitz says the agreement "says no such thing" and charges the policy has "resulted in substantial numbers of Apple customers throughout the country having been double billed by Apple."

The complaint adds: "Under the agreement, as with any consumer transaction, Apple may bill customers only once for each product or service that is purchased. With troubling regularity, however, Apple has 'double billed' customers for purchases made through the Apple Stores. In those cases, when a customer purchases a song, movie or book, Apple bills that customer twice for the same download. Apple, however, has effectuated a policy and practice of refusing to refund the extra charge to customers whom it has overbilled."

Herskowitz claims that in addition to the iTunes store, Apple follows the same illegal policy at its App store, iBookstore and the Mac App store. He seeks damages of more than $5 million for a national class.

If you go by the numbers, it appears the average consumer's financial condition is much improved from the depths of the Great Recession.

Data from Equifax's March National Consumer Credit Trends Report shows credit write-offs are down 50 percent from March 2009, when banks wrote off a total of $39.7 billion – excluding home finance write-offs. In March 2012 the number stood at $20 billion, reflecting stronger consumer finances.

During the recession, the average size of delinquencies rapidly increased as dollar rates were outpacing total number of delinquent accounts, a trend that has since reversed in auto, bankcard, consumer finance, and retail card categories.

Less debt

Whether paid off or written off, there is also less consumer debt now. At the end of the first quarter of this year, U.S. consumer debt was at $10.9 trillion, down more than 11 percent from its peak of $12.4 trillion in Oct. 2008.

The Equifax numbers also suggest the new loans are a lot more solid than the ones made back in the heyday of the housing bubble, before their credit crash. More than 72 percent of total delinquencies are still tied to loans originated between 2005 and 2007, which comprise 36 percent of balances outstanding.

Loans opened in 2009 and later have performed much better. Only 12.6 percent of delinquent accounts are from credit lines or loans opened in or after 2009.

Mortgages the exception

Mortgages are the only type of credit is in decline. The fact that lenders are writing fewer mortgages is one reason the housing market has yet to recover. But every other category of consumer debt is rising, with auto loan and lease balances rose to a post-recession high of $727.5 billion in March 2012. Delinquency rates among all auto loans are at their lowest point in five years.

Outstanding bankcard balances in March 2012 stood at $532.8 billion, an $8 billion decrease from the previous year. However, the report notes this is a modest drop compared to the decrease of more than $54 billion seen from 2010-2011.

Student loans

For the first time in six years, there was a decline in the amount of student loan debt written off in the first quarter and students appear to be taking on less new debt. The average amount per new loan is currently $4,548, down nearly 20 percent from Jan. 201l. The loan amount per student fell 12 percent to $6,817. Students aged 23 and under took out the most, and largest student loans.

Equifax Chief Economist Amy Crews Cutts said the data suggests growing confidence in the marketplace.

"Aside from Home finance, which will require a longer recovery time due to long foreclosure process, the data reflects the improving U.S. economy as consumers explore new financial options and exercise due diligence in repaying their existing debts," she said.

While inflation has been low for years, some things – like the cost of a college education – keep going up. The Consumer Financial Protection Bureau (CFPB) recently reported total college student-loan debt in the U.S. now exceeds $1 trillion.

When you drill down into that astronomical number, you find individual stories of students leaving school with a mountain of debt. D., of Waldorf, Md., certainly falls into that category, leaving school, he says, with more than $120,000 in student loans from Citibank.

“When I found a job, I was considered fresh out of school - newbie - not experienced in my field, which meant my salary wouldn't be as high as those with experience,” D. wrote in a ConsumerAffairs post. “By the time I had to start paying back my loans, three-quarters of what I made in a month was the minimum due for my Citi Student Loans. I tried to negotiate and decrease the minimum payment. They were not willing to work with me. My loans slowly drifted into delinquency."

Other students have posted reviews of various for-profit schools, complaining that they got no advice or counseling about the amount of debt they were taking on for their education. Do colleges and universities have an obligation to assist their students in managing their debt?

Some schools help students avoid debt

Keuka College, a private school in upstate New York, has a reputation for successfully guiding students through the financial aid process. The school boasts that it ranks in the top five in its category for students graduating with the lowest debt loads.

“Our tuition is one of the lowest when compared to our peers and other comparable institutions in the region,” said Keuka President Dr. Jorge Díaz-Herrera. “In addition, we subsidize our students’ education by providing access to financial aid and scholarships.”

According to Díaz-Herrera, Keuka often provides direct aid to students, such as merit and need-based scholarships and grants.

“Keuka’s mission and commitment to providing a high-quality education at a reasonable cost reflects its historical origins as an institution meant to prepare its students for lives of service and leadership, irrespective of financial means,” said Dr. Anne Weed, vice president for academic affairs.

Mounting pressure

Pressure may mount on other colleges and universities to do more to help students graduate without debt the size of a home mortgage. As added incentive, the issue of student debt has caught the attention of the CFPB, which now has jurisdiction over college loans.

CFPB said recently it is investigating an increasing number of consumer complaints about student loans, many of which mirror the ones posted at ConsumerAffairs.

“The CFPB is now the one-stop federal agency where all private student loan borrowers can ask questions, get information, and file a complaint about this important market,” said CFPB Director Richard Cordray.

Student loans have now surpassed credit cards as the largest source of unsecured consumer debt.

In these recessionary times consumers need all of the help they can get when it comes to saving a few bucks, and couponing has become quite the go-to for consumers wishing to maximize thier hard earned dollars.

Just ask the self proclaimed "Coupon Diva" Jamie Kirlew who was featured on TLC's "Extreme Couponing", but was heavily criticized by coupon experts for her questionable money saving tactics.

After the widespread backlash, Kirlew decided it was time to shift her ways and approach couponing a bit differently. "I have learned a lot," she said. "I don't want this to follow me and haunt me, and I'm moving forward.

She may not have a choice but to move forward, as coupon publishers, along with product makers and grocery stores have stepped up their technological efforts in diminishing mis-use of coupons.

Kirlew was accused of of misusing her coupons after she posted two videos of her shopping at Target, using $4 coupons for Schick Razors on Schick shaving gel, which is a big no-no in the couponing realm.

Until now, it has been nearly impossible for grocers to catch this common misuse, but new technology including anti-fraud software, along with new barcodes will keep a watchful eye on those customers who are use to the current laxed couponing system.

Some of the most common misuses of coupons include using them for different products other than what the coupons say.  For example, a coupon that reads '$2 off for a two liter of coke, is often used towards all of Coca-Cola's two liter products like Sprite or Canada Dry Gingerale.

Other misuses include printing conterfeit coupons, that are not from the actual product makers. 

"First of, there's counterfeiting, they could be stolen, and we've never seen a good resolution of it," said Bud Miller in a statement, who is the director of the Coupon Information Corp.

"It's a violation of the terms and conditions printed right there on the coupon," he added.

Other consumers who actually use coupons in the proper way, also feel the impact of fraudlent coupon use, as many of the products they're looking for are gone, which is a result of using counterfit coupons, and using coupons for the wrong product.

Some of the new technology to thwart this misuse will include two strips of bar codes on the coupon itself, that will fish out the specifics of a coupon deal and make sure the coupon is from the manufacturer, and is being used for the right product.

Since the TLC show aired, Kirlew has changed her couponing ways,  and will choose to use better coupon practices, but she is not done with couponing by a longshot.

"I was doing extreme couponing for two years, so I can live off my stockpile for a while," she said. "But still, I just went to Harris Teeter and got $151 worth of groceries for 78 cents."

Have you ever seen that breakfast commercial for the chocolate spread Nutella? The one with the busy working mom racing around the kitchen, attempting to quickly feed her children while conveying to the world how healthy and wonderful this dessert product is for breakfast?

If you're around ten years old, having chocolate for breakfast is quite the accomplishment, but anyone outside this age group may see something a bit strange with this commercial and its nutritional claims, which was the case with two mothers who took the makers of Nutella to court in order to get the company to admit that their product is no  healthier than a chocolate bar. And guess what -- the moms won and now other consumers of Nutella can share in the winnings.

"I thought it was at least as nutritious as peanut butter if not more and that's the impression I got from the advertisement," said Laura Rude-Barbato, one of the mothers who took her dissatisfaction to court. "I thought it had health benefits and it clearly doesn't."

Athena Hohenberg from San Diego, who has a 4-year-old daugther, also took the Nutella makers to court for false advertising claims.

The television ad states that "Nutella is made with simple, quality ingrediants like hazelnuts, skim milk and a hint of coco," which all sounds pretty healthy, right? But the company fails to convey the percentages of each ingredient and list the name of each additive. the suit charged.

"I felt duped," Rude-Barbato said and the court agreed, making Ferrero USA the makers of Nutella pay the mothers a sum of $3.5 million, which is anywhere from $4 to $20 per person.

Anyone who purchased Nutella between Jan. 1, 2008 and Feb. 3, 2012 (Aug. 1, 2009 abd Jan. 23, 2012 for California residents) can file a claim, but it must be done by July 1, 2012.

Here's a portion of the actual settlement:

IF YOU PURCHASED NUTELLA IN CALIFORNIA BETWEEN AUGUST 1, 2009 AND JANUARY 23, 2012, OR IN ANY OTHER STATE BETWEEN JANUARY 1, 2008 AND FEBRUARY 3, 2012, YOU MAY BE ELIGIBLE TO RECEIVE A PAYMENT FROM A PROPOSED CLASS ACTION SETTLEMENT. Please read the materials on this website, including the class action notices carefully as they describe Class Action Settlements that may affect your rights.
IMPORTANT DATES & DEADLINES: Submit A Claim Form:                    Postmarked or submitted on-line no later than July 5, 2012 Request Exclusion:                         Postmarked no later than June 8, 2012 Make Objections:                             Filed/Delivered no later than June 8, 2012 Fairness Hearings:                         New Jersey Court (for the Nationwide Class)                                                             July 9, 2012 at 10:00 a.m.                                                             California Court (for the California Class)                                                             July 9, 2012 at 10:30 a.m.

Settlements have been reached in two class action lawsuits against Ferrero U.S.A., Inc. (“Ferrero”) regarding its labeling, advertising and marketing of the Nutella brand hazelnut spread. The Settlements provide Class Members who do not opt out the opportunity to receive monetary relief as well as prospective relief in the form of corrective labeling, advertising and marketing. The lawsuit claims that Ferrero made statements suggesting that Nutella is healthier than it actually is.

The baby boomers have been called the "Me Generation" because of their supposedly self-centered attitudes but a new study finds nothing selfish about boomer behavior as they near retirement age.

Quite the opposite, in fact. Amerirprise Financial says boomers are sacrificing their retirement security to support their adult children and, in many cases, their aged parents.

One in four

Commendable?

For years the weight loss industry has been searching for a magic bullet: a pill obese consumers could take and lose weight. A pill that would allow you to eat what you want and not gain weight.

Too good to be true? Researchers at the University of Texas Southwestern Medical Center in Dallas say maybe not. Working with mice, they have found that manipulating a genetic pathway in the heart can speed up metabolism and burn calories faster.

The experiments, in which laboratory mice were fed a high-fat diet, also found that manipulating a heart-specific genetic pathway prevents obesity and protects against harmful blood-sugar changes associated with type 2 diabetes.

The scientists report their findings in the April 27 issue of of the journal Cell.

There have been a number of attempts to regulate human metabolism, seen as a key factor in weight control. This attempt is different, researchers say, because for the first time, they have found a way to use the heart to control the burn rate, and in the long run, improve human health.

Promoting health

“Obesity, diabetes, and coronary artery disease are major causes of human death and disability, and they are all connected to metabolism,” said Dr. Eric Olson, chairman of molecular biology at UT Southwestern and senior author of the study. “This is the first demonstration that the heart can regulate systemic metabolism, which we think opens up a whole new area of investigation.

What was most impressive, the researchers say, was the fact the test mice stayed at a normal weight despite being fed a diet high in fat. But when the protein in their heart was no longer manipulated, they quickly became obese.

The research team is using the protein isolated in the heart to develop a drug that would not only prevent obesity, but obesity-related disease like high cholesterol and Type 2 diabetes.

The researchers say there will be more animal testing before such a drug is ever tested on humans.

McDonalds or Burger King? Nike or Reebok? Apple or Microsoft? When it comes to two huge dueling companies, the battles can become quite intense. Not only for the consumer but also for companies that choose to sell their products.

This is the case with Coca-Cola and PepsiCo, as they have both been engaged in a bidding war to exclusively sell their products at some of the most well-known eating franchises in the United States. 

The most recent rounds of product battle started at the close of 2011, as PepsiCo inked an exclusive partnership deal with pizza giants Papa Johns, after choosing not to continue with Coke as their main beverage supplier, after a 25 year relationship. Score one for Pepsi.

In the equivalent of an effective counter punch, Coke scored a return blow by signing an exclusive deal with Dunkin brands, knocking Pepsi beverages out of all Dunkin Donuts and Baskin-Robbin locations. However, Coke's victory celebration was short-lived, as Pepsi revealed they now have an exclusive deal with Family Dollar to sell its products in all of their 7,100 U.S.stores.

DineEquity

This all led up to the most recent fight in gaining beverage exclusivity with DineEquity, which owns all of Applebee's and IHOP restaurants. For decades DineEquity had the best of both beverage worlds, as they sold both Coke and Pepsi products, but no longer, as the restaurant company agreed to a 10-year deal with Pepsi to be the sole drink provider for all of its eateries. 

DineEquity said they preferred PepsiCo's terms, as it proved to be a better fit for its franchise, and that Pepsi contained a wider array of beverage choices for the customers.

"The agreement with PepsiCo illustrates our ongoing efforts to fully leverage DineEquity's scale to the ultimate benefit of our brands, franchisees and guests," said Julia Stewart, chairman and CEO of DineEquity."By consolidating our business with PepsiCo, we achieved more advantages terms for our franchises than ever before, while securing the widest variety of beverage options for our guests."

Pepsi also took their counter-attack even further by joining up with Twitter to showcase a new concert series called the "Live for Now" marketing campaign, that will include major musical talent from A-list musicians, beginning May of 2012.

With the ongoing battle for soda supremacy between Coke and Pepsi, it's certain that there will be yet another fight bell sounding off, to begin yet another round for these two mega-companies to compete for franchise dollars.

Fewer consumers are shopping for auto insurance, but of those who do, 43 percent switched from one insurance company to another in the last 12 months, according to J.D. Power and Associates.

It's the largest number of consumers ditching one company for another since the survey began in 2008.

"Although fewer consumers are shopping for insurance, more current customers who do are willing to make a switch based on competitive quotes," said Jeremy Bowler, senior director of the global insurance practice at J.D. Power and Associates.

Bowler also notes that more consumers are switching insurance companies, even though savings achieved through switching had declined. Bowler says consumers saved on average $412 per year by switching in 2010 but only $359 in the last 12 months.

Money isn't everything

Sometimes, there are other reasons besides saving money for switching insurance companies. In a ConsumerAffairs post, Moranda, from Louisiana, says she's dropping Progressive.

“Disrespectful, inconsiderate, unprofessional, and hard to get in touch with,” she wrote.

Charity, of Pasadena, Tex., says she's dropping State Farm over a dispute about towing reimbursement, which she said was covered in her policy.

“I called State Farm and they sent a tow truck, and told me they would reimburse me,” Charity wrote in a ConsumerAffairs post. Inconvenient, but whatever. I called my agent to find out the proper protocol to get reimbursed for the wrecker. I was told they would only pay for up to $80 on towing.”

Targeting the competition

Bowler also notes that insurance companies have increased advertising spending in an effort to attract customers from the competition.

The study finds that 52 percent of auto insurance shoppers start their shopping process online, and 73 percent visit at least one insurer's Web site at some point during their shopping experience. More significantly, 32 percent of customers solely obtained quotes online, and today 34 percent of all recent shoppers state they would most prefer to purchase their new policy online.

The study, now in its sixth year, examines consumer shopping and purchasing behaviors and overall satisfaction among buyers who recently purchased insurance across three factors (in order of importance): distribution channel; policy offerings; and price.

Another recent J.D. Power survey found that overall consumer satisfaction with their insurance company declined sharply in the last three quarters.

We all like gift cards, don’t we?  Whether we’re on the receiving end of a card as a gift, or if we are the purchaser who's given a gift card when we can’t think of anything else to buy that finicky friend or family member.

Well, if you live in the state of New Jersey, your days of seeing rows and rows of gift cards on that spinning grocery store rack may be coming to an end.  A new law says  that retailers will have to gather zip codes from each person buying a gift card, and turn over any unused balances after a two year period. 

This of course is wonderful news for the consumer who's stored their gift card in their dresser drawer and forgotten about it, as they will soon be able to file a claim to get back their unused balances. This law will also apply to money orders and unused travelers checks.

However, if the remaining balance is never claimed, it will be given to the state.”It can be used for the benefit of all New Jerseyans to prevent tax increases and service cutbacks,” said New Jersey’s Treasury department in a statement.

Retailers unhappy

All of this is causing major retailers to pull out from using gift cards entirely, as they would have to spend large amounts of money for equipment upgrades that will be able to collect the zip codes of each card purchaser.

Although retailers have begun to challenge this law in court, huge companies such as American Express and Blackhawk Network, who is one of the leading providers of gift cards, said they will pull their cards off of New Jersey shelves by June 2012, and according to John Holub, the President of New Jersey’s Retail Merchants Association, this may lead to a “domino effect”.

"No other state in the country requires this of retailers," he said, "The loser is going to be the consumer, because gift cards from some of their favorite retailers may no longer be available."

Once the law is implemented, retailers could be fined $200 to $100,000 per day for non compliance.  A costly punishment for anyone choosing to rebel against the controversial law. Holub feels that this law could also impact overall consumer spending in the state of New Jersey and the full negative effect will be felt in the very near future.

"We're fearful that this could be just the tip of the iceberg,” he said. "That many more retailers and gift card issuers could also decide that they can no longer operate in the state.” 

Diamond Pet Foods is expanding a voluntary recall to include Diamond Puppy Formula dry dog food. The company took this precautionary measure because sampling revealed Salmonella in the product. No dog illnesses have been reported.

Salmonella can affect animals eating the products and there is risk to humans from handling contaminated pet products, especially if they have not thoroughly washed their hands after having contact with the products or any surfaces exposed to these products.

People infected with Salmonella should monitor themselves for some or all of the following symptoms: nausea, vomiting, diarrhea or bloody diarrhea, abdominal cramping and fever. Rarely, Salmonella can result in more serious ailments, including arterial infections, endocarditis, arthritis, muscle pain, eye irritation, and urinary tract symptoms. Consumers exhibiting these signs after having contact with this product should contact their healthcare providers.

Pets with Salmonella infections may be lethargic and have diarrhea or bloody diarrhea, fever, and vomiting. Some pets will have only decreased appetite, fever and abdominal pain. Infected but otherwise healthy pets can be carriers and infect other animals or humans. If your pet has consumed the recalled product and has these symptoms, please contact your veterinarian.

Only the Diamond Puppy Formula products meeting the following descriptions are recalled:

DescriptionSizeProduction CodeBest By Date
Diamond Puppy Formula dry dog food                 40 lb.                DPP0401B22XJW      6-Apr-2013
Diamond Puppy Formula dry dog food                 40 lb.                DPP0401A21XAW     6-Apr-2013
Diamond Puppy Formula dry dog food                 40 lb.                DPP0101C31XME      11-Jan-2013
Diamond Puppy Formula dry dog food                 40 lb.                DPP0401B21XDJ       7-Apr-2013
Diamond Puppy Formula dry dog food                 20 lb.                DPP0401B22XJW      6-Apr-2013
Diamond Puppy Formula dry dog food                 20 lb.                DPP0101C31XME      11-Jan-2013
Diamond Puppy Formula dry dog food                 20 lb.                DPP0101C31XRB       11-Jan-2013
Diamond Puppy Formula dry dog food                 8 lb.                  DPP0401B2XALW      7-Apr-2013
Diamond Puppy Formula dry dog food                 6 oz. samples DPP0401

The recalled Diamond Puppy Formula dry dog food was manufactured by Diamond Pet Foods in Gaston, S.C., and distributed in the following 12 states:

• Alabama
• Florida
• Georgia
• Kentucky
• Maryland
• Michigan
• North Carolina
• Ohio
• Pennsylvania
• South Carolina
• Tennessee
• Virginia

The product may have been further distributed to additional states through pet food channels. The company is working directly with distributors and retailers that carry these products to remove them as quickly as possible from the supply chain. Diamond Pet Foods apologizes for any potential issues this may cause pet owners and their dogs. 

Pet owners, who are unsure if the product they purchased is included in the recall, or who would like replacement product or a refund, may contact Diamond Pet Foods at800-442-0402, 8 am – 6 pm EST, Monday through Friday, or visit www.diamondpetrecall.com.