Current Events in May 2012

With all of the health risks involved with smoking like lung cancer, heart disease and emphysema, smokers are still lighting up in massive numbers.

In response, all kinds of addiction treatments and cigarette alternatives have been created, from prescription medication to cigarette patches, in effort to reduce the numbers of smokers around the world. But here's a new one: A cigarette that doesn't contain solid nicotine, but Vitamin B of all things.

The company Solar Cigarette has released an electronic cigarette and claims smokers can receive daily vitamin supplements by inhaling. And since the electronic cig isn't a real cigarette, the company says it can ultimately get smokers to quit their habit.

If you're not familiar with e-cigarettes, they were first invented in 1963, and described as a safe alternative to traditional cigarettes. But manufacturing was never achieved due to limitations in technology, and other obstacles.

Jump to 2004, when pharmacist Hon Lik from China, reintroduced an updated version of the electronic cigarette, and his company Ruyan starting exporting them in 2005. By 2007 the electronic cigarette received an international patent.

How it works

Here's how the cigarette works: It contains liquid nicotine instead of solid nicotine, and when puffed an atomizer is activated. Once the atomizer is activated, it vaporizes the liquid nicotine and turns it into water vapor that's inhaled by the smoker.

Adding Vitamin B to the electronic cigarette is a new component that Solar Cigarette believes will assist smokers in quitting traditional cigarettes, while giving them small dosages of the needed vitamin.

But will the Vitamin Be-cigarettes really stop people from wanting traditional cigarettes?

According to the Center for Disease Control and Prevention, 19.3 percent of all adults in the U.S. smoke cigarettes, and percentages of people successfully quitting run extremely low. Although it's reported that 69 percent of smokers want to quit, only 52 percent actually tried.

In a May 2012 Wells Fargo survey it showed that over 73 percent of respondents believed e-cigarettes are a fad, and will be unsuccessful in the long term when it came to reducing the amount of smokers.

But the amount of people using e-cigarettes counters the opinions of those surveyed, as 2.5 million consumers already use the product, and more will be drawn once the Vitamin B component is widely promoted.

"The ever so life changing Solar Cigarette vitamin B pack. It's a one of its kind cartridge pack, which allows you to receive your daily vitamins and nicotine with every puff. While many people think that vitamins are similar in structure and perform a similar function, the truth is that each vitamin B-complex vitamin has a unique chemical structure and serves a unique function within the body," the company said in a press release.

Not trouble-free

Perhaps not surprisingly, e-cigarettes have been far from trouble-free.  Not long ago, a man was hospitalized after his Prodigy e-cigarette blew up in his face. 

Last September, the FDA issued warning letters to five e-cig makers, accusing them of making unsubstantiated claims and having poor manufacturing practices. Also, the FDA has said it plans to begin regulating e-cigarettes, which is likely to introduce a whole new level of scrutiny for the devices.

Any way you look at it, an electronic cigarette still sounds like a strange way to get people to stop smoking. It would seem like one would need to make the more important mental shift of not wanting to smoke before quitting, and going through the routine of smoking with e-cigarettes could make it even harder to stop.

It's similar to a person trying to lose weight by eating low-fat chocolate cake.

Over the last seven years, more than 500 complaints flowed into the Washington State Attorney General’s Office and the Better Business Bureau regarding Seattle-based digital media provider RealNetworks, Inc.

Consumers spoke of “odd charges” appearing on their credit cards, complaining of bills for monthly subscriptions for premium television, sports or game content that they never ordered.

“Deceptive pre-checked boxes and fine print obligated consumers to not-so-free trials for subscription services they didn’t want in the first place,” said Washington State Attorney General Rob McKenna. “People were charged for months — sometimes years — paying hundreds of dollars for subscriptions they knew nothing about.”

A lawsuit and settlement filed today in King County Superior Court by McKenna’s Consumer Protection Division aims to end practices that are unfair and deceptive under Washington state’s Consumer Protection Act. Those practices include so-called “free-to-pay conversions” in which free trials rapidly result in monthly charges – unless consumers take quick action.

Other problems

Attorney General’s Office attorneys and staff reviewing consumer complaints also found other concerning trends. “Some said they had difficulty getting RealNetworks to stop the charges and others complained that when they called the company to cancel subscriptions, they were pitched even more ‘free trials,’” said Paula Selis, who heads the Attorney General’s High Tech Unit.

Jennifer Horwitz of Seattle was one of those consumers.

“RealNetworks didn’t dispute that I had cancelled their service before the free trial expired but when I asked them for a refund, they refused,” she said today. “I had to fight my way up the chain of command. They continued to stonewall, only agreeing to a partial refund ‘as a courtesy to me.’  I believe this was calculated to make a profit by misleading consumers and taking money they were not entitled to.”

Today, McKenna announced a settlement with RealNetworks that will end the questionable practices and provide restitution for consumers throughout the country. Among numerous requirements, RealNetworks agrees to comply with the federalRestore Online Shoppers Confidence Act, which requires a customer’s express consent before he or she can be charged for a free trial that converts into a paid subscription.

While McKenna’s office brought a previous case regarding unauthorized charges by online merchantIntelius, this is the first time a defendant in a state action was required to comply with the new federal law.

Under the terms of the settlement, RealNetworks is also required to:

·       Stop using pre-checked boxes to obtain consent from consumers to purchase products or services;

·       Stop offering free-to-pay conversions that do not clearly disclose all the terms of the offer, including subscriptions that are automatically charged on customers’ credit cards;

·       Provide an online method of cancelation so that consumers may easily cancel their subscriptions;

·       Send e-mail or other reminders that consumers are enrolled in a free-to-pay conversion, along with instructions for how to cancel the subscription;

·       Cancel subscriptions within two days of a consumer’s request to do so; and,

·       Inform consumers who have called to cancel a subscription of additional subscriptions on their account.

Refund pool 

The settlement also provides for a $2 million claims-based pool to provide full restitution for consumers who were victimized during the three year period prior to December 2009 when the practices detailed in the Attorney General’s complaint were most common.

“The company has voluntarily made numerous changes since December 2009 to curb the practices that are at issue in the lawsuit and this, thankfully, has resulted in fewer recent complaints to our office,” McKenna said.

Consumers who were unknowingly signed up using pre-checked boxes between January 2007 and December 2009 will receive apostcard indicating that they are eligible for a refund. Additionally, consumers may visit realnetworksrestitution.com to submit a claim. RealNetworks also agrees to pay $400,000 in attorney’s fees.

The Campaign for a Commercial-Free Childhood (CCFC), Public Citizen and Corporate Accountability International want the Public Broadcasting Service (PBS) to end a four-year marketing agreement between the popular children’s show Martha Speaks and the fast food chain Chick-fil-A.

The multi-pronged promotion, whose stated goals include "to reach children” and “drive brand preference and restaurant traffic,” includes 15-second ads for Chick-fil-A before and after Martha Speaks TV episodes; advertising on PBS Kids; and in-store giveaways at more than 1,600 Chick-fil-A locations.

In 2011, 56 million Chick-fil-A kids’ meals were distributed in Martha Speaks co-branded bags, and PBS executives refuse to say what they have planned for the 30 months left in the promotion, Public Citizen said in a press release.

An alternative

“Public broadcasting should provide an alternative to the commercial networks that subject children to a barrage of advertisements,” said Elizabeth Ben-Ishai, campaign coordinator for Public Citizen’s Commercial Alert project. “PBS is a civic institution that can provide a refuge for children from the influences of advertising and marketing. Instead, the Martha Speaks partnership with Chick-fil-A, a business that markets unhealthful food to children, lets kids and families down.”

Given nationwide concerns about childhood obesity, one might think that PBS would be circumspect about using a highly regarded children’s show to lure kids to Chick-fil-A, especially since a kids’ meal can contain as much as 670 calories, 29 grams of fat and 25 grams of sugar, Public Citizen said.

Instead, it said PBS is touting the “success” of its fast food campaign to attract other sponsors looking to target children.

The Sponsorship Group for Public Television features a case study on the Chick-fil-A campaign to convince companies that sponsoring kids’ shows on PBS can help meet their marketing goals. And PBS member station WGBH—which produces Martha Speaks—nominated its Chick-fil-A campaign for a kids marketing award. On June 7 in New York City, the Chick-fil-A/Martha Speaks promotions are competing for a Cynopsis Kids Imagination Award for “Best Promotional Campaign.”

“PBS deserves lots of awards, but using a beloved children’s character to entice children into fast food restaurants is nothing to celebrate,” said CCFC’s Dr. Susan Linn. “Families deserve more from public television, and parents depend on PBS to provide a safe, healthful environment for children.”

Junk food

“A growing number of studies find that ending junk food marketing directed at kids could spare the health of millions of children,” said Sara Deon, Value [the] Meal campaign director at Corporate Accountability International. “Simply put, the less kids are exposed to fast food marketing, the less likely they are to be susceptible to diet-related diseases as adults. PBS needs to put our kids’ health first and stop this promotion with Chick-fil-A.”

The Chick-fil-A sponsorship marks the first time that advertising before and after a PBS children’s show has run simultaneously with an in-restaurant promotion. It’s also the first time a PBS station has celebrated its food marketing to children by nominating itself for an award.

“I wholeheartedly support public television and abhor the ongoing political attacks on PBS,” added Linn. “But we have to hold PBS accountable. If they won’t put kids first, who will?”

Ahh, it's that time of year again. Mosquitoes dust off their wings to amp up efforts to annoy and break last year's bite record, school children give in to their growing indifference towards year-end school work, and dads recruit unwilling sons to push lawnmowers in sweltering heat. It's summertime folks. Which also means travel, family vacations, and finding the best hotels.

Today, Consumer Reports released its ratings on 44 of the biggest hotel chains in the U.S., which was based on survey responses from 22,000 participants.

The survey found that Econo Lodge and America's Best Value Inn were considered the worst among all of the hotel chains, and Microtel Inn & Suites by Wyndham were the highest-rated chain among budget hotels.

Perhaps, but a computerized ConsumerAffairs sentiment analysis of about 5,200 postings to social media over the last year finds Econo Lodge with net positive sentiments as high as 100% over the last 12 months.

Not everything about Econo Lodge was good, of course. Consumers expressed some misgivings about several aspects of their stay, while others reacted to negative reviews:

Kevin of Hernando, Miss., would certainly be in the negative column.

"At 3 in the morning, water was gushing from the ceiling and when I went in the bathroom, the whole roof caved in and someone could have been seriously hurt," he said in a posting to ConsumerAffairs. "We moved to a different room at 3 am and the owner/manager would not do anything for our trouble, no discount, no nothing."

The Consumer Reports survey had questions pertaining to upkeep, comfort, service and value of the hotel, and both budget and luxury hotels were included.  The Ritz-Carlton came in first among participants in the luxury hotel arena, earning high marks in each of the survey's categories. 

Similar types of lodging facilities like Hyatt and Embassy Suites and Westin scored second best, as the report says that many hotels are stepping up efforts to re-woo the customer, since declining disposable income, travel, and consumer spending have all hurt the lodging industry.

But making a room spiffier certainly doesn't decrease a hotel's price, as a report from PricewaterhouseCoopers showed that an overnight stay will cost an average of $107, which is 5 percent higher than room costs in 2011.

Legwork needed

But Consumer Reports' Senior Editor Tod Marks, says travelers must do a some legwork to find the best deals for this summer.

"Now if you really want to save and get the rock-bottom drop dead low rate, do what I do," he said. "Use Hotwire, Priceline's Name Your Own Price program, or use Travelocity's Top Secret Hotels. They don't reveal the name of the hotel until after you've committed to purchasing that room for a given night."

"Hotels have taken back the night by imposing best-rate guarantees," he added. "That is, find an advertised price lower anywhere else and we'll match it plus give you a bonus."

In totality, hotels have gotten much better according to the survey, as 53 percent of respondents said they had excellent check-in and check-out experiences, which is up from 42 percent back in 2006. Also, 44 percent of participants scored its service as excellent, while upkeep was scored just as high. Scores in both categories were up by seven percentage points from 2006.

Conversely, 27 percent of respondents said their rooms were flawed with outdated decor or unattractive beds.

However, Marks said there are rooms for each type of traveler and  budget, and if one does their homework they're bound to find something to their liking.

"No one would ever confuse Microtel Inn & Suites for the Ritz, but each does a great job of pleasing its particular customers," he said. "Satisfaction depends on what you're seeking. And our survey clearly shows that across all price points, there are superb hotel choices to fit any guest's needs."

Consumer Reports also listed some helpful tips to find the best places to stay this summer:

Give opaque sites a shot.

• Travelers who are not loyal to a particular hotel chain and are willing to choose from among a number of brands at a certain price level should consider opaque websites such as Priceline (Name Your own Price option) and Hotwire (Hot Rates). Consumer Reports has discovered through years of experimenting that they are the single best way to save money.

Haggle.

• Only 28 percent of survey respondents tried bargaining, yet 78 percent of those who did won an upgrade or a lower rate. Ask about non-advertised specials, and use free parking or a different bed size as a bargaining chip.

Find Internet-only offers.

• Terms such as "best available" and "corporate" used to indicate an unbeatable rate. Today the cheapest advertised rates tend to be on the Internet. But they come with strings: full payment when booking, no cancellations, and no changes. Wyndham offers discounts of up to 25 percent off the otherwise best available rate for advance purchases. Other Internet specials come and go, so check often.

Get in touch if a better deal is found.

•  Almost every chain and online travel site makes the same boast: If a customer is already booked but finds a cheaper advertised price on the same date at the same hotel for the same type of room, they can submit an online claim within 24 hours of booking and they'll receive a refund of the difference plus a bonus. Hilton offers a $50 bonus. But chains won't match prices from opaque sites.

Be loyal.

• Most programs are free to join, and members can earn free nights, future discounts, room upgrades, airline miles, and rental-car savings.

Show your age or affiliation.

• A 10 percent discount is the norm for older guests, particularly at lower-prices hotels. Similar discounts often apply to those in the military, government employees, and members of groups such as AAA.

Take a gamble.

• Hoteliers quietly maintain a "fade" rate, the minimum they'll accept per room for walk-in guests. If you're ready to walk after hearing the lowest rate, the clerk may use the fade rate to earn at least some revenue from a vacant room.

There are nearly a billion people using Facebook now, so maybe it makes sense that if you are in need of a kidney, you would put the word out to your Facebook friends. Apparently, more and more people are doing it.

Researchers at Loyola University Medical Center recently examined 91 Facebook pages that were seeking kidney donations for patients ranging in age from two to 69. Apparently it's effective.

Twelve percent of the pages reported receiving a kidney transplant and 30 percent reported that potential donors had stepped forward to be tested to determine whether they were compatible. One page reported that more than 600 people had been tested as potential donors for a young child.

Dr. Alexander Chang, a kidney specialist at Loyola, led the research. He and his colleagues said they are unable to give Facebook all the credit. It's possible, he says, that recipients and families also used other tactics, such as seeking news coverage.

Chang began his research last fall and as it was concluding this month, Facebook announced an organ donation initiative that allows users to post their organ donation status, letting friends know that they have signed up with their state registry to donate their organs after they die.

Who's doing the asking?

In Chang's study, most of the appeals for a kidney were posted by the patients themselves. The rest were posted by children of the recipient or other family and friends.

Some of the study's findings raise ethical concerns. Three percent of the pages received offers to sell kidneys, mostly from people in Third World countries. Would-be donors typically asked for $30,000 to $40,000. However, selling organs is illegal.

Only five percent of pages mentioned the risks of kidney donation, and only 11 percent mentioned associated costs.

"Use of social media could be an effective way to solicit kidney donation, but more study is needed to determine how to do this safely and with enough knowledge to make informed decisions," Chang said.

High-top or low top? Leather, suede or a combination of both? Vintage or newly released? These are the typical questions the average sneaker connoisseur asks themselves when looking for their next  sneaker purchase. But these days the sneaker-head is asking a different question: Where are the track shoes?

Many who usually buy their sneakers for style typically lean towards the leather basketball shoe, but this same customer base has turned to track shoes to complement their outfit or personal style. Industry experts say today's track shoe is more stylish and comfortable and is attracting a much younger demographic.

The Nike Free Run, which comes in both men and women styles has been a big seller across the U.S., for about $100 a pair.

Sales in the U.S. for track shoes have been up by 14 percent in the last year, and totaled $6.46 billion in revenue, according to NPD Group. And national retailers like Dick's Sporting Goods and Foot Locker are seeing their largest profits in quite some time.

Hip-Hop

Since the 80s, those in the Hip-Hop community have turned the basketball shoe, that was previously worn solely on the court, into everyday shoe wear. Acts like Run-DMC had legions of kids buying shell-toe Adidas in every color imaginable.

In the 90s Air Jordans became the craze. As soon as Michael Jordan landed from his first NBA dunk, younger consumers either begged mom and dad for the expensive sneakers, or pennies from summer jobs were saved, to avoid being teased on the first day of school for wearing last years sneakers. Such pressure for a kid, huh?

But in the thousands, reduced consumer spending and recessionary times have made younger consumers spend less on their usual footwear, and since Nike, Adidas, and Reebok have all released stylish, comfortable and reasonably-priced track shoes, younger shoppers aren't spending the usual $300 to $400 on those obscure, hard to find basketball shoes.

In fact, NPD says that running shoes are at the top of the current athletic shoe industry. In 2011 Nike made $20.9 billion in global sales, and 14 percent of those sales were from its running shoe collection.

NPD also says that Adidas, Foot Locker, Dicks, Skechers USA Inc., Shoe Carnival Inc., and DSW Inc., have all seen at lest a 20 percent sales increase in 2012, and Nike's 2012 sales have been increased by 10 percent.

"We've seen the running-shoe business become a fashion business, as well as a comfort and innovation business," said Cohen, who is based in Port Washington, New York. "When you put that together, that's a positive perfect storm."

Nearly 16 million U.S. homeowners were "under water" in the first quarter of 2012, owing more on their mortgage than their home is worth. Zillow.com's quarterly negative equity report shows collectively, underwater homeowners owed $1.2 trillion more than their homes were worth.

While negative equity is a serious drag on the housing market, a closer look at the numbers suggest it's not quite as bad as it seems. Zillow's analysis suggests foreclosure is not imminent for most underwater homeowners. Nine out of 10 continue to make their mortgage and home loan payments on time, with only 10.1 percent more than 90 days delinquent.

Under water but not drowning

In addition, many homeowners in negative equity are not deeply underwater. Nearly 40 percent of underwater homeowners owe between one and 20 percent more than their home is worth. At the other end of the scale,15 percent of underwater homeowners - approximately 2.4 million - owe more than double what their home is worth.

And of course, some markets have a much more serious equity problem than others. In the Las Vegas metro area, more than one-quarter of all homeowners with mortgages owes more than double what their home is worth. In other markets, prices are just about back to pre-recession levels.

"While it was disappointing to see negative equity numbers remain so high, it is important to note that negative equity remains only a paper loss for the vast majority of underwater homeowners," said Zillow Chief Economist Stan Humphries. "As home values slowly increase and these homeowners continue to pay down their principal, they will surface again.

A drag on recovery

That said, Humphrey believes negative equity will remain an issue for the housing market as a whole, and poses a risk to any recovery. Not only does negative equity tie many to their homes, by making homeowners unable to move when they may want to, but if economic growth slows and unemployment rises, more homeowners will be unable to make timely mortgage payments, increasing delinquency rates and eventually foreclosures.

On a state level, Nevada has the highest percentage of negative equity, with 66.9 percent of all homeowners with mortgages underwater. Arizona is right behind (52.3 percent), followed by Georgia (46.8 percent), Florida (46.3 percent) and Michigan (41.7 percent).

Baby boomers are increasingly in need of hearing aids and their children and grandchildren may not be far behind, especially if they attend a lot of concerts, just as boomers did in their youth.

A study that tested teens' hearing before and after attending a rock concert found that 72 percent of them experienced some hearing loss.

The concert used for the test featured a popular female vocalist, not a heavy metal rock band normally associated with deafening decibels. The hearing loss was expected to be temporary but physicians such as Dr. M. Jennifer Derebery, lead author and a doctor at the House Clinic, are worried about the cumulative effect.

Single exposure

“Teenagers need to understand a single exposure to loud noise either from a concert or personal listening device can lead to hearing loss,” she said. “With multiple exposures to noise over 85 decibels, the tiny hair cells may stop functioning and the hearing loss may be permanent.”

Before the concerts the teenagers got a lecture on the importance of wearing ear protection but only three of the teens opted to use the offered ear plugs.

Three adult researchers sat with the teenagers. Using a calibrated sound pressure meter, 1,645 measurements of sound decibel (dBA) levels were recorded during the 26 songs played during the three hour concert. The sound levels ranged from 82-110 dBA, with an average of 98.5 dBA. The mean level was greater than 100 dBA for 10 of the 26 songs.

Violated OSHA standards

The decibel levels experienced at the concert exceeded what is allowable in the workplace, according to Occupational Safety and Health Administration (OSHA). OSHA safe listening guidelines set time limits for exposures to sound levels of 85 dB and greater in the workplace.

The volumes recorded during the concert would have violated OSHA standards in less than 30 minutes. In fact, one third of the teen listeners showed a temporary threshold shift that would not be acceptable in adult workplace environments, Derebery said.

Following the concert, 53.6 percent of the teens said they did not think they were hearing as well after the concert. Twenty-five percent reported they were experiencing tinnitus or ringing in their ears, which they did not have before the concert.

More teens with hearing loss

Derebery and other researchers are especially concerned because in the most recent government survey on health in the United States National Health and Nutrition Examination Survey (NHANES) 2005-2006, 20 percent of adolescents were found to have at least slight hearing loss, a 31 percent increase from a similar survey done from 1988-1994.

Other research has raised concerns about personal music players with earbud speakers, which are often used by very young children.

To Derebery, the findings serve as a wake-up call and should lead to more research.

 “It also means we definitely need to be doing more to ensure the sound levels at concerts are not so loud as to cause hearing loss and neurological damage in teenagers, as well as adults,” said Derebery. “Only three of our 29 teens chose to use ear protection, even when it was given to them and they were encouraged to do so. We have to assume this is typical behavior for most teen listeners, so we have the responsibility to get the sound levels down to safer levels.”

Homeowners may still struggle to make mortgage payments, but when it comes to other types of debt, consumers appear to have their financial lives under better control.

A report by Equifax, a credit reporting bureau, shows finance write-offs -- excluding home mortgages -- plunged by 52 percent over the last three years. The write-offs have decreased to $26.2 billion as of April 2012 from $54.1 billion in April 2009.

Equifax attributes the decline in defaults to both improvements in general repayment patterns and lower numbers of bankruptcies. Bankruptcy dollars have declined at a slower rate, comprising 15.7 percent of write-off dollars in 2009 but 18.5 percent of write-off dollars today.

This is due to faster declines in the average dollar size of general delinquencies, relative to the peak of the recession, the company reports.

Paying down debt

Consumers are also paying down their debt. Non-Home Finance balances declined by seven percent or $193 billion since October 2008, but the deleveraging trend ended about a year ago, with balances now 1.5 percent higher than in May 2011.

Balances on auto loans are increasing following the trend in rising auto sales, while credit card balances are declining at a slower rate due to sustained origination increases and payment improvements that mirror pre-recession levels.

There are signs, however, that consumers are once again running up credit card balances. Based on current trends, card balances will stop declining and begin increasing during 2012, Equifax said.

As has been noted previously, student debt totals are trending higher, in part because more people are returning to school in hopes of improving their job prospects. Student lending balances rose 66 percent to $766 billion in November 2011 from the pre-recession average of $460 billion, before falling back to $753 billion as of April 2012.

Looser purse strings

Part of the reason that debt is rising again, Equifax notes, is that lenders are, for the first time since the recession, beginning to increase loans.

"Consumers are now starting to see greater accessibility to credit opportunities and they are taking advantage of those opportunities, though in moderation," said Equifax Chief Economist Amy Crews Cutts. "The American household's balance sheet is looking much better now, with debt burdens down significantly due to both write-offs and consumer-led deleveraging, and slow but significant improvements in the economy."

Even the home mortgage picture is improving. Equifax reports home mortgage balances have decreased $1.2 trillion since October 2008, posting a fourth consecutive year of decline.

Some people, especially women, take daily calcium supplement tablets to guard against bone loss. But new research suggests doing so doubles the chances of suffering a heart attack.

The study, which included 24,000 people age 35 to 64, is reported in the medical journal Heart. The authors, while noting that calcium is important, suggested they believe consumers should ingest it naturally.

"We should return to seeing calcium as an important component of a balanced diet," they wrote.

Although the study did not find a direct cause and effect between the use of supplements and heart attacks, the researchers speculate that taking supplements in tablet form provides too much of the mineral to the body at one time.

Industry responds

Taylor C. Wallace, Ph.D., Senior Director, Scientific & Regulatory Affairs at the Council for Responsible Nutrition, the supplement industry trade group, said previous research has shown positive effects on risk factors associated with heart health.

"This study itself is not reason enough to discount the important benefits of calcium, but consumers with questions—as well as their doctors—should consider these following points: The original study wasn't designed to measure cardiovascular events; consequently confounding factors for cardiovascular disease were not equally distributed across the study groups," Wallace said.

Wallace says the calcium supplement group in the new study had a population with a greater incidence of high cholesterol at baseline, and also included more smokers who were more likely to smoke for a longer duration. In terms of considering the relative risk, of the 851 individuals taking supplements containing calcium, only seven events occurred in users of supplements containing only calcium.

Does benefit outweigh risk for elderly?

"The bottom line is consumers need calcium, and particularly for the elderly, who are at such great risk of falls and fractures due to weak bones, removing calcium supplements from their diets could put them at even greater risk for those kinds of problems," Wallace said. "Our advice is for consumers to be aware of how much calcium they get from their diet, supplement with calcium if needed, and check with their doctor or other healthcare practitioner to determine their own personal needs."

Public health officials, meanwhile, have always counseled consumers to try to get most of their calcium needs from their diet.

"If your typical calcium intake is too low, first try to increase the calcium in your diet," the New York Department of Health says on it's website. "There are many calcium-rich foods to help you meet your calcium needs through diet alone."

According to the department, people over age 50 need 1,200 mg of calcium in their diet each day.

The Consumer Financial Protection Bureau (CFPB) is previewing proposed rules to protect consumers in the fast-growing prepaid card market.  The agency is seeking input on how to ensure that consumers’ funds on prepaid cards are safe and that card terms and fees are transparent.

“The people who use prepaid cards are, in many instances, the most vulnerable among us,” said CFPB Director Richard Cordray. “All consumers need, and deserve, products which are safe and whose costs and risks are clear upfront.  Yet right now prepaid cards have far fewer regulatory protections than bank accounts or debit or credit cards.  That’s why we are launching a rulemaking to promote safety and transparency in this emerging market.”

The Bureau also launched Ask CFPB: Prepaid Cards – a searchable online tool with easy-to-understand answers to more than 80 questions about prepaid cards.   The questions cover a range of topics from a general overview of prepaid cards and their fees to how to obtain, reload, and use a prepaid card. 

The Bureau’s rulemaking will focus on “General Purpose Reloadable” prepaid cards which allow consumers to load the cards with money upfront and use them as if they were checking account debit cards.  According to a 2009 FDIC study, 9.7 percent of all households used these prepaid cards.  Mercator Advisory Group reports that the prepaid market totals $57 billion and is expected to grow at a rate of 42 percent per year from 2010-2014.  The two largest prepaid card program managers have reported a jump from 3.4 million active cards in 2009 to over 7 million this year.  It is projected that the total dollar amount loaded onto prepaid cards will hit $167 billion in 2014.

None too soon

CFPB's action comes none too soon, according to Consumers Union and other consumer advocates. An April Consumer Reports analysis of prepaid cards found that industry competition is beginning to help bring down fees, but fees aren't always disclosed up front and can still add up quickly. Moreover, prepaid cards offer weaker consumer protections than those provided by traditional debit cards.

"The prepaid card market has exploded in the U.S. but consumers still don't enjoy the protections they need to ensure they are getting a fair deal," said Michelle Jun, senior attorney for Consumers Union. "It's time for the CFPB to require clear disclosure of all fees in a simple format so consumers know the costs before they purchase a card. Prepaid cards should get the same strong protections as traditional debit cards so consumers have the peace of mind that their money is safe if their card is lost or stolen."

Many prepaid cards are now offering new features to enable consumers to establish credit files or help those with bad credit to rebuild their credit record. But Consumer Reports found that information from prepaid card transactions is not useful to help a consumer build a credit record. Consumers Union said that the CFPB or the Federal Trade Commission should monitor credit building claims made by prepaid card issuers to ensure consumers aren't being misled.

Much of the growth in the prepaid market is coming from consumers who are using the prepaid card as an alternative to a checking account. The largest prepaid card program manager in the United States reported that funds directly deposited onto its prepaid cards increased by nearly 70 percent from 2010 to 2011. And the second largest prepaid card program manager reported that 42 percent of their customers had direct deposit linked to their accounts at the end of 2011.   

Despite its growth, the prepaid market is still largely unregulated at the federal level. With today’s Advance Notice of Proposed Rulemaking, the Bureau plans to evaluate several topics:

• Fees and Terms Disclosure: The lack of an industry-wide standard on prepaid card fee disclosure may make it difficult for consumers to understand the cost of the product or compare fees.  Often, consumers do not know what protections or fees come along with their prepaid cards prior to purchase because such disclosures are contained inside the packaging.  Consumers need to be able to comparison shop in order to make well-informed decisions. The Bureau will evaluate the best way to balance the need for disclosure with the fact that many cards are purchased at retail locations and space for disclosures is limited. Consumers should also know whether or not their funds are protected by FDIC insurance.  The Bureau plans to evaluate how prepaid card issuers should disclose the insurance status of cardholders’ funds. 

• Unauthorized Transactions: Federal regulations require that credit and debit card issuers limit consumers’ liability when their cards are used without their authorization. These regulations do not extend to prepaid cards.  Many prepaid card issuers voluntarily offer this protection, but it is not standard across the industry. The Bureau will evaluate the costs and benefits of card issuers providing limited liability protection from unauthorized transactions.

• Product Features: Most prepaid cards do not offer any credit features.  In general, cardholders may not be able to withdraw or spend more than the funds loaded on their cards. However, some prepaid cards allow their cardholders to overdraw their accounts, and some offer small-dollar loans or a line of credit. Similarly, very few prepaid cards have a savings account.  Even though such savings accounts typically have high interest rates, consumers do not seem to take advantage of the opportunity to save. Another feature is that of credit repair, which claims to offer consumers the opportunity to improve or build credit. The Bureau is looking for public input on the costs, benefits, and consumer protection issues related to those product features.

The CFPB is holding a field hearing today in Durham, N.C. to hear from consumer experts, industry stakeholders, and the public about the Bureau’s prepaid card rulemaking. 

Are you a Groupon user? If so, you may have some money coming your way, as a class-action lawsuit was filed against the company for not disclosing the certificate's deal restrictions.

Groupon will be paying a sum of $8.5 million to consumers who were not able to cash in on Groupon deals, due to deal expiration dates not being listed on the certificate.

The lawsuit is made up of 17 different cases that have been merged into one, and brought to the California courts. Groupon decided to settle, but was excused from having to admit any wrongdoing.

Initially, the company said it didn't understand what all of the fuss was about, as it said its policy allows for customers to redeem unused certificates for the same amount they've purchased it for, regardless of the date.

Sense of urgency

Obviously the plaintiffs saw it another way, and said that Groupon not clearly listing its guidelines was deceptive and allowed customers to believe certificates were more time-sensitive than they really were.

The plaintiffs also said not plainly alerting the consumer to Groupon's restrictions "effectively creates a sense of urgency. Consumers therefore feel pressured and are rushed into buying the gift certificates and unwittingly become subject to the onerous sales conditions imposed," said the suit.

Each of the 17 named defendants will receive an amount of $500 each, while the rest of the settlement will be split between anyone who purchased a Groupon certificate between Nov. 1, 2008 and Dec. 1, 2001. Consumers have until July 6 to file their reimbursement claims. You can download a claim form at https://grouponvouchersettlement.com/SettlementVoucherClaimForm.aspx

In addition to the financial settlement, the Chicago-based company will also provide vouchers that can be used towards the customer's initial Groupon purchase. If the voucher isn't accepted by business owners, consumers can file a second claim for a personal check to be mailed.

It's very easy to wander out of range of a cell tower and discover you have no bars. It's even easier if you happen to be hiking a mountain trail or sailing on the ocean.

Last fall DeLorme, a satellite communications company, introduced a two-way messaging device – the inReach – providing those in the remote wilds a means to send out an SOS message and summon help.

Now the company has introduced an app, allowing consumers with an iPhone, iPad or iPod touch to transform their devices into a global two-way satellite communicator for use outside traditional wireless coverage areas.

While you can't make phone calls, users can send and receive messages to and from cell phones, email contacts and other inReach users, anywhere in the world. And, if the mood strikes you as you reach the summit of a mountan, you can also post messages to Facebook and Twitter.

Chat anywhere

"DeLorme is now extending the unique inReach two-way SOS, personal communication, and tracking capabilities to a far broader universe of users worldwide," said Mike Heffron, DeLorme CEO. "This underscores our commitment to making affordable two-way satellite communication solutions available to as many people as possible."

The inReach devices start at $249 and can send out an SOS message to a monitoring station. GPS allows others to track your movements in real time.

The iPhone app provides expanded data capability, allowing you to send and receive email and text messages. Service plans start at $9.95 a month.

Though the company is not promoting this particular use, the app can probably be used when traveling outside the country, when sky high roaming charges normally kick in. Consumers may be able to bypass roaming charges by using inReach to send and receive data.

DeLorme calls inReach the “first consumer-affordable satellite communicator with two-way SOS and personal text messaging, message delivery confirmation, Follow-Me/Find-Me Tracking and Location, and global coverage.” In addition to the Apple app, there is an existing app for Android devices.

Certificates of deposit (CDs) pay very little interest. A passbook savings account pays even less. But if you shop around carefully, you can find a bank that offers a fairly decent interest rate on your checking account balance.

In its 2012 High-Yield Checking Survey, Bankrate.com found the rate for high-yield checking accounts is 2.05 percent, more than 34 times the current national average for an interest-bearing checking account.

The average high-yield checking average percent yield (APY) has dropped from 2.56% last year and 3.30% in 2010, however, it still handily beats the next best alternative for liquid cash - an online savings account - provided the high-yield checking accountholder meets the requirements every month.

Must meet certain monthly requirements

Banks reward these checking account customers, as long as the customers meet a certain number of requirements each month. The requirements usually include performing a certain number of debit card transactions, using direct deposit, and taking advantage of automated bill payments.

When a number of banks introduced these high-yield checking accounts, they found that customers moved huge amounts of cash into their checking accounts, to take advantage of the high rates. So in recent years banks have made adjustments.

Most now cap the amount of your checking balance that is eligible for the high rates. The remaining balance earns interest at a much lower, market rate.

The Bankrate survey found the most common balance cap is $25,000 but the 10 highest-yielding accounts all have balance caps of $15,000 or less. Failing to meet the monthly requirements drops the average APY to a miniscule 0.08 percent.

No-brainer

"For accountholders that can routinely meet the monthly requirements, high-yield checking accounts are a no-brainer cash investment," said Greg McBride, CFA, senior financial analyst for Bankrate.com. "Investors should calibrate the balance they plan to hold in the account with an APY offering that maximizes their return."

Another reason to take advantage of high-yield checking is, instead of you paying the bank money each month in overdraft and other fees, the bank pays you. Keeping your “savings” in your checking account all but guarantees you won't overdraw your account. Careful spending discipline must be exercised, however, to make sure you don't start spending your “savings.”

To come up with its list, Bankrate.com surveyed 57 high-yield checking accounts offered by banks, thrifts and credit unions in the U.S. Twenty-three of those accounts can be opened online or by phone from anywhere in the country, the company said.

Credit Unions tended to have the best rates. For example, Consumers Credit Union pays 4.09 percent on the first $10,000 deposited in its interest-bearing account. Bankrate's full list can be found here.

In the past few years companies like Volkswagen, Ford, GM and Nissan Motors, have been promising  to offer Wi-Fi in their cars, much to the chagrin of the National Transportation Safety Board, which believes it lessens the driver's ability to drive safely.

As an alternative to using the web for needed info while driving, Nuance Communications Inc., released what it calls Dragon Drive, a computer-voiced assistant that provides Web-like help while driving.

"As connectivity continues to push into the car, bringing with it a host of new services and features, the risk of driver distraction is becoming a key issue for every vehicle manufacturer," said Jack Bergquist, Automotive Analyst."

"Vehicle manufacturers are increasingly turning to natural voice-based interfaces to simplify more complex command tasks and to provide information and data back to the driver in a way that avoids them needing to take their eyes off the road."

Dragon Drive

Available to consumers this summer, Dragon Drive has the ability to listen and answer emails, respond to text messages, and create messages by merely speaking and telling the assistant what you would like it to say.

The new technology also acts as a GPS system providing directions, finding local businesses, searching songs, and accessing basic web information. All of these features are commanded by voice.

"Millions of cars around the world already use Nuance voice recognition for voice dialing and controlling the climate system, but all those activities are relegated to controlling technology in the car," said Mike Thompson, senior vice president of the mobile division at Nuance. "What's new here is we've extended that control to the cloud. Now you can interact with the Internet as you are driving along."

The new driving technology could also bring down the number of accidents caused by texting and talking on cell phones, its promoters suggest.

In a 2010 report, the National Safety Council estimated there are 1.6 million car accidents each year caused by texting and cell phone use.

"The entire automotive ecosystem faces a critical challenge – keep consumers connected to the content they love, without imposing dangerous distractions behind the wheel," said Arnd Weil, vice president and general manager of Nuance Mobile.

"Dragon Drive has been designed from the ground up with a focus on voice and natural language bridging that gap to give consumers the ability to take full advantage of the broad range of services today’s connected car has to offer."

Nuance sells Dragon Drive directly to car makers, so it's not a technology one can purchase separately or download, which is the product's downside. If you want to use the service, you would have to buy a car that already has it installed. 

Currently, Dragon Drive is available in six languages, including English, Spanish, French, German, and Italian. Other languages will be added in the future, the company says.

Family Dollar's announcement that it will begin carrying tobacco products has brought a howl of protest from anti-smoking groups.

In a letter to the company's CEO, about a dozen national public health and advocacy organizations called the decision a “dire disappointment” and urged that it be reconsidered.

"Family Dollar's decision to sell tobacco goes up against the company's commitment 'to improve the quality of life of [its] customers and Team Members', given that tobacco is the No. 1 cause of preventable death in the United States," said Cheryl G. Healton, President and CEO of Legacy, a smoking cessation organization. "Selling tobacco at Family Dollar could heavily impact the lives of those Americans who already suffer disproportionately from tobacco's economic and health consequences."

The groups charge the tobacco industry has deliberately marketed tobacco brands to low socio-economic and minority youth and adults, pointing out that smoking is greatest among adults with working class jobs, low educational levels, low income, and those who are unemployed – groups that comprise the very communities Family Dollar serves.

Low-income neighborhoods

Since Family Dollar stores are often found in neighborhoods with low-income and middle income families, the groups say the company has the potential to increase access to what they call “the nation's deadliest consumer product.”

"Family Dollar Stores have traditionally served many Latino and minority communities around the country," said Dr. Jeannette Noltenius, the National Director of the National Latino Tobacco Control Network (NLTCN). "Selling tobacco products that have been proven to be addictive, that prematurely kill one of every three customers and are sold cheaply to youth creating new tobacco customers, would change the way Latinos perceive these stores, from a family friend to a family threat. We urge the owners and leadership of Family Dollar Stores to stop and think that this move will affect the health and lives of our communities and that they will be held accountable for expanding the access to these dangerous products just to make more money."

Legacy spearheaded the letter, which supports the efforts of Break Free Alliance and the Campaign for Tobacco-Free Kids. The American Academy of Pediatrics and a group comprising all living former U.S. Surgeons General, directors of the U.S. Centers for Disease Control and Prevention and secretaries of the U.S. Department of Health, Education and Welfare and Health and Human Services (Citizens' Commission to Protect the Truth) also signed the letter urging Family Dollar to reconsider its decision.

The company has defended its policy as a business decision based on customer demand.

Slowly but surely, the U.S. housing market appears to be clawing its way back to health.

The latest evidence is a report by the National Association of Realtors (NAR), showing sales of existing homes rose by 3.4 percent from March to April, on a seasonally adjusted basis. Sales are up 10 percent from April 2011.

Drilling deeper into the numbers, NAR says the base of buyers appears to be undergoing a healthy expansion.

“It is no longer just the investors who are taking advantage of high affordability conditions,” said NAR chief economist Lawrence Yun. “A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices.”

Fewer investors

Indeed, investors were less active last month. All-cash sales fell to 29 percent of transactions in April from 32 percent in March; they were 31 percent in April 2011. Investors, who account for the bulk of cash sales, purchased 20 percent of homes in April, compared with 21 percent in March and 20 percent in April 2011.

More importantly, Yun says he believes the housing market has shifted from one that overwhelmingly favors buyers to one that is much more balanced.

“But in some areas it has become a seller’s market,” Yun said.

"It's encouraging to see several improving economic and housing indicators, which are pointing to a continuing real estate recovery," said Margaret Kelly, CEO of RE/MAX, a national real estate sales franchise. "While home prices are still low and interest rates remain at historically low levels, it's likely that many more potential homebuyers will leave the sidelines and jump into this market."

The RE/MAX National Housing Report shows median home prices were 3.2 higher in April than March and a solid 5.9 percent higher than April 2011.

NAR's April numbers reflect that as well. The national median existing-home price for all housing types jumped 10.1 percent to $177,400 in April from a year ago; the March price showed an upwardly revised 3.1 percent annual improvement.

“This is the first time we’ve had back-to-back price increases from a year earlier since June and July of 2010 when the gains were less than one percent,” Yun said. “For the year we’re looking for a modest overall price gain of 1.0 to 2.0 percent, with stronger improvement in 2013.”

One reason prices are creeping higher is there were fewer foreclosures among the sales last month. Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 28 percent of April sales, down from 29 percent in March and 37 percent in April 2011. Foreclosures sold for an average discount of 21 percent below market value in April, while short sales were discounted 14 percent.

The strongest sales increase was in the northeast last month, rising 5.1 percent. Sales rose 4.4 percent in the west, 3.5 percent in the south and 1.1 percent in the Midwest.

Verizon has now tossed its hat into the video and mobile device ring, releasing a service it calls Viewdini. The service will allow users to watch any type of video movie or television show on their mobile device.

The service uses Verizon's Wireless' 4GLTE network, providing access to viewable content from a host of vendors such as Netflix, Hulu Plus, mSpot and cable operators. More video sources are soon to be added, as well as Verizon Fios the company says.

"Verizon Wireless has the network to deliver the video choices our customers want with the quality and speed customers demand," said Dan Mean, CEO of Verizon Wireless. "Working with a wide range of providers, we're giving our customers a simple and intuitive way to find shows, movies and other videos from the sources they have relationships with and discover new sources of video as well."

Verizon's new video component was first announced at the National Cable and Telecommunication Association annual conference, and creators say they've made it easy for users to navigate a wide array of movie titles and other content.

Search by title

Users can search for a video by title, actors name or they can search by topic. Once a video is selected, the Viewdini service will tell the customer if the video can be streamed at no charge, if it costs, or if it can be viewed through rental or purchase.

Those with the the 4GLTE Android will be the first ones able to use the service, and Verizon said it will be adding other operating systems in the near future.

Meanwhile, Verizon has also announced that it added global roaming capabilities to four of its phones. Motorola's DROID Razr, DROID Razr Maxx and DROID 4 and HTC'sRezound, will all have a global roaming function added. The company plans to notify its users through digital notification concerning when the global feature will be accessible. 

Customers will now be able to use their smartphones in 220 countries, instead of purchasing annoying calling cards or buying cheap disposable cell phones.