Current Events in May 2012

Airlines and travel agents need to take great care in writing their advertising and describing frequent-flier benefits. They may not advertise an airfare as “free” if consumers are liable for the payment of fees to book the flight, the U.S. Department of Transportation (DOT) warns.

The DOT's new airfare advertising rule, which took effect on Jan. 26, 2012, requires every advertised price for air fares to state the entire price to be paid by consumers. This means that all mandatory government-imposed taxes and fees as well as mandatory carrier-imposed charges must be included in the advertised price the first time an airfare is presented to consumers. 

If a seller of air transportation advertises an air fare as “free” but then requires the consumer to make any monetary payment to obtain the free travel, that seller would be violating the Department’s airfare advertising rule.  

"Our rule says the ticket price presented to consumers must be the full price,” U.S. Transportation Secretary Ray LaHood said.  “If a flight is billed as ‘free,’ it needs to stay that way from booking to boarding – no one should have to pay hundreds of dollars for a flight that they thought they were getting for free.” 

In the past, flights advertised as “free” may in fact have cost the consumer a substantial amount of money, especially on international flights where taxes could amount to hundreds of dollars.           

In guidance issued today, the Department said that nothing prevents an airline from stating that the air transportation is “free of carrier charges” or “without carrier charges” if this is accurate and taxes and government fees are properly disclosed. 

Frequent fliers

Advertisements relating to mileage awards may not indicate that a given mileage amount may be exchanged for a free ticket unless the award actually does allow the consumer to travel without any financial cost. 

If consumers must pay taxes or airline-imposed fees when booking a flight using frequent-flyer miles, the ad must display at least the minimum amount of government taxes and mandatory carrier-imposed fees that could apply to that itinerary together with the mileage award levels, and the fees must be displayed as prominently as the mileage requirements. 

The Department will give carriers and agents 60 days to modify their ads, and will pursue enforcement action after that date against companies that do not comply.

The U.S. Food and Drug Administration (FDA) has joined a handful of states in warning consumers to avoid shellfish products imported from Korea.

The agency said it is considering a recall of fresh and frozen oyster, clams, muscles and scallops. The warning does not include canned shellfish products from Korea.

The warning is tied to a norovirus outbreak that caused three people to get sick. The FDA says stores should stop selling the shellfish products for the time being.

In Pennsylvania this week, the departments of Agriculture and Health advised residents to immediately discard and not consume any fresh or frozen shellfish from Korea.

While the FDA has not yet issued an official recall, states have been advised to treat Korean shellfish products as coming from an unapproved source. The shellfish products came from polluted waters, according to tests.

In addition to cautioning consumers, food sanitarians have advised restaurants and food retailers across the state during routine inspections that all fresh and frozen Korean shellfish products are considered adulterated and must not be consumed.

Consumers who have fresh or frozen shellfish products labeled with Korea as the country of origin should return or discard the product immediately, Pennsylvania officials said.

With all of the white earphones attached to the average person's ear nowadays, it's easy to forget that we can actually listen to music outwardly. Remember speakers?

Well if you do, you've probably also noticed that music speakers have changed over the years. In days past, getting the biggest speakers was the ultimate goal. I mean sound isn't sound unless every living soul is forced to take in your musical taste, right? But today the consumer's usual goal is to get the smallest, and most portable speaker they can find.

Which brings us to the Jawbone Big Jambox, which like a Bose speaker, is tiny and wireless, only weighing 2.7 pounds, but packs a pretty decent musical wallop. The speakers are a second generation version of the original design, and typically used to fill outside or large open spaces craving to be filled with notes and melody.

Although it matches the loudness and portability of a Bose speaker, early reviews suggest it doesn't match the popular speaker's level of sound clarity, although it does match Bose's price of $299. However, few things are as subjective as a person's sound preference.

Jewel box

Resembling the size of small jewelry box, the JawBone speaker also has a 15-hour battery life, which should outlast any party or get-together no matter how many beers one plans to have. The speakers also have the ability to connect two separate devices simultaneously. Meaning you may not be able to hog the musical selection at the party, as one of your buddies can plug in mp3 player too.

With the Bose SoundLink Wireless Mobile Speaker also being $299, the Jawbone comes across as a slightly better buy with the extended battery life. But use over long periods of time will be the ultimate tester, as any product that lasts merely a year or two before it starts acting weird, isn't worth the dollars plunked down on it.

Like its original model, the Jambox speaker has a simple design and comes in many colors including black, red and white. It also plays louder than the original version, and plays music from from your device by way of a wireless Bluetooth signal. The Jawbone also plays at a 35 foot maximum distance.

Whether one should go with a Bose portable speaker or the Jawbone Big Jambox is really a matter of very specific preference, as both speakers are highly reviewed. But it's always nice to have more purchasing options. Moral of this story: Listen before you buy.

We all need sunscreen, but sadly not all of them protect your skin at equal levels. As we reported earlier, the U.S. Food and Drug Administration has come up with a set of regulations and specific things to look for in an effective sunscreen.

Now, a new round of sunscreen policing has been initiated by The Environmental Working Group (EWG). The consumer watch organization has happily reported that there are more safe sunscreens this year than last year, which means sunbathers can exhale in a collective sigh of consumer relief.

The main reason sunscreens are safer this year, according to the watch group's report, is the elimination of oxybenzone, an estrogen-like chemical that absorbs some of the sun's harmful rays. But it's also been shown to penetrate the skin and potentially cause cancer.

A report earlier this year conducted by researchers from Missouri University of Science and Technology, spoke about skin cancer causing sunscreens extensively.

The EWG report also linked this year's safer sunscreens to a lower amount of brands using retinylpalmitate, which is a potentially harmful chemical that's grown tumors in lab rats during the course of scientific experiments.

One-third of sunscreens used the harmful chemical last year, compared to one-fourth using it this year. An improvement, but EWG says the sunscreen industry still has a long way to go.

"FDA's decades of foot-dragging has brought us a marketplace of mostly subpar sunscreen products," said NnekaLeiba, Environmental Working Group's senior analyst in a press release.

"While we're grateful to see the general market improve, we wish we could assure consumers that 100 percent of sunscreens sold in the US are effective and safe. We can't."

An opposing view

But just as one group warns of potential product risk, another group has an opposing take. The industry trade group The Personal Care Products Council, challenges EWG's claims that oxybenzone and palmitate are as harmful as they say.

"Consumers can be confident that sunscreen products, when used as directed and as part of an overall safe sun regiment, are safe and will help protect them from skin cancer, premature skin aging, and other damaging effects of the sun," the Products Council said in a written statement.

EWG also pointed out that many of the sunscreens still will not pass the "broad spectrum" test, which lets the consumer know that the protective lotion will guard against UVB and UVA sun rays. Although safer sunscreens are now available, EWG only recommended 25 percent of the 1,800 products that it tested.

The non-profit consumer organization also reported that this year's sunscreen products are safer for children and for adults with allergies or sensitive skin, due to containing less of the retinylpalmitate chemical.

But again, The Personal Care Products Council still doesn't understand what all of the negative hubbub is about. It is bothered by what it considers a constant use of scare tactics used by not only EWG, but other organizations as well.

"Allegations contained in the Environmental Working Group’s 2012 sunscreen report disregard or distort an extensive body of scientific research on the safety, efficiency and health benefits of sunscreen and could confuse consumers and discourage them from using sunscreen."

"With skin cancer rates on the rise, this does a great disservice to consumers and undermines the efforts of public health advocates to educate people about the importance of using sunscreen as part of their sun protection regimen," it said.

And the sunscreen debate goes on and on.

The U.S. Senate will soon take up legislation that would impose a five-year criminal penalty for tampering with the unique identification number of a cell phone as part of a crackdown on growing cell phone theft.

In April the New York Police Department and Federal Communications Commission (FCC) announced establishment of an integrated database of unique cell phone identifiers, known as International Mobile Equipment Identity (IMEI) numbers, to allow cell phone companies to permanently disable stolen cell phones once they are reported stolen.

Sen. Charles Schumer (D-NY) introduced the bill to increase the penalty for trying to alter a cell phone's unique ID number as part of that crackdown.

Black market for smartphones

“As part of the effort to shut down the black market for stolen iPhones, we must make it abundantly clear to would-be thieves, if you try to alter a stolen cell phone to get around the ban, you will face severe consequences,” said Schumer. “This legislation will help dry up the black market for stolen cell phones by making the consequences for peddling in this illegal business so severe, thieves would think twice before doing so.”

Schumer was among those calling for the national database among carriers, but said it would be much more effective if there were tougher penalties for those who traffic in stolen phones. His measure won immediate support from CTIA-The Wireless Association President and CEO Steve Largent.

"CTIA's members are committed to protecting their customers and their wireless devices from theft," Largent said. "We are pleased to support Senator Schumer's legislation and believe it will be an important tool in the effort to combat the theft of wireless devices. We hope Congress moves quickly to pass this important bill."

Deactivating SIM cards

Currently, when cell phones are reported stolen, many American cell phone companies only deactivate the phone’s “SIM” card, which is the account data storage component of the device. While deactivation of a SIM card does not allow for the device to be used with existing data and account information, SIM cards are easily removed and replaced, allowing stolen phones to be easily resold on the black market.

In April the industry agreed to work together with the FCC and establish a nationwide, interconnected database that will allow the carriers to share information on stolen cell phones across networks and ban the use of cell phones reported stolen.

Schumer’s bill, the Mobile Device Theft Deterrence Act of 2012 will add criminal penalties of up to five years for tampering with cell phones in order to circumvent the service ban on a stolen phone.

According to the New York Police Department, 42 percent of all property crimes of individuals in New York City in 2011 involved a cell phone.  

Ohio and New Jersey are on the trail of PJG Enterprises, a fund-raising company that has represented the American Breast Cancer Federation and the American Veterans Federation. Lawyers for Ohio Attorney General Mike DeWine had a temporary restraining order extended last week in Trumbull County Common Pleas Court against the company and its owner, Paul Grossi.  New Jersey has also won a restraining order against the company for alleged violations of state charitable law.

Grossi has also been charged in Girard, Ohio, Municipal Court with Intimidation of a Crime Victim and Soliciting following a complaint of an employee of PJG Enterprises and a Girard Police Department investigation, DeWine's office said. Most of the bank accounts associated with the business and the charities have been frozen and the court's action requires soliciting activities with the firm and the charities to stop until the next hearing.

DeWine today urged anyone who worked for PJG Enterprises or is familiar with the activities of the charities they represented, including The American Breast Cancer Federation and The American Veterans Federation,  or who may have received a call from the Girard-based PJG Enterprises to call his office's Charitable Law Section at 1-800-282-0515.

"Donors need to have assurances about who is soliciting money from them and where it's going," said Attorney General DeWine. "If you're concerned about this company, or anyone who calls to ask you for money, please call my office for information or to file a complaint."

PJG Enterprises was soliciting donations for the American Breast Cancer Federation and the American Veterans Federation. Among other things, investigators found that the addresses claimed for these charitable organizations was a house on 53 North Brockway Ave. in Youngstown, Ohio, the same as the residential addresses claimed by officers of the two charities and Paul Grossi. All of those individuals are included in the court's actions.

DeWine reminds potential donors that when they receive calls seeking a donation to ask questions about who is calling and what their connection is to the specific charity.

Professional solicitors, who are paid by charities to solicit on their behalf, must provide basic information about the charity and its location, in addition to their own name, their status as a professional solicitor and, if requested, the percentage of gross revenue that will be retained by the charity.

Citizens are urged to ask for written information in advance of making a gift and to refrain from sharing bank or credit card information on unexpected telephone calls. Warning signs include overly aggressive or pushy tactics, callers who are unable or unwilling to answer questions, callers who offer to come pick up contributions, or callers who suggest there are prizes awarded for contributions. At any point during a call, consumers are encouraged to hang up if they feel uncomfortable.

We American consumers like our bells and whistles, don't we? We have to get that new added feature for our electronic device, and our kitchen cabinets house every unused gadget we bought on T.V. for $19.99. But nowhere do Americans like their bells and whistles more than in their cars.

But a perhaps surprising report released by the automotive car battery company Johnson Controls shows that 97 percent of Americans are actually looking forward to the new Start-Stop technology in their cars over fancy bells and whistles. This is to ultimately use less gas and thus reduce spending on fuel.

First introduced in Europe and currently being used on Honda Motor scooters in Asian markets, Start-Stop abruptly shuts the engine off when it's idle for a specific length of time, and restarts it once the driver lets go of the brake pedal or employs the clutch. In theory, this reduces the amount of time the engine spends idling, thus loosing less fuel.

"This research further confirms that while U.S. consumers are still generally unfamiliar with the technology, Start-Stop vehicles will provide the improved fuel economy and performance they want, at a price that is acceptable to then," said Kim Metcalf-Kupres, vice president for Global Strategy and Marketing, at Johnson Control Power Solutions. "Most people will pay a little more for better fuel economy, as long as they don't have to sacrifice performance."

"Just makes sense"

The research finds that one-third of respondents simply believe the Start-Stop technology  "just makes sense" as gas prices continue to fluctuate. And nearly 100 percent of the survey's participants are drawn to the concept of their vehicle turning off, as many people aren't always mindful of how long their car has been idling or how much gas they're actually wasting. Industry experts say that Americans waste 1.4 billion gallons of gasoline per year from voluntary idling -- mostly sitting at traffic lights and stalled in heavy traffic.

As gas costs have been a financial thorn in the side of consumers for quite some time, the government's Corporate Average Fuel Economy  (CAFE) will require all cars to have a 35.5 mile per gallon fuel standard by 2016, and 54.5 miles per gallon by the time 2025 rolls around. Although Start-Stop is already prevalent in Europe,  experts believe it could be included in 40 percent of the U.S. vehicles by 2015.

"Our customers are working across the entire technology spectrum from traditional gas engines to hybrid and electric vehicles to determine the correct mix of vehicle options to meet increasing standards," said Metcalf-Kupres. "Start-Stop vehicles, which achieve 5 percent to 10 percent fuel economy for minimal added cost to consumers, will help automakers meet those initial objectives."

Apparently, JCPenney isn't doing so hot, as lukewarm first-quarter reports showed a significant sales decline. This can be attributed to the department store's new strategy of doing away with their popular "big sale days" that's offered year around.

Instead JCPenney has decided to use an everyday-low-pricing angle to increase its demographic and compete with the Targets and Wal-Marts of the world, who use similar marketing techniques. But the plan has come back to bite JCPenney in the you know where.

Once upon a time, JCPenney executives had desires to appear sort of high-endish like the ritzier department store Macy's. But economic times and the successes of competitors have driven JCPenney to abruptly remove its 600-plus sales for what it now calls a "fair and square structure."

But, consumers didn't respond, as the company saw a net loss in the first quarter of $163 million. What the company failed to realize, said experts, was how important big sales are to consumers. Many customers only visit stores when they believe they'll miss out on a short-lived sale.

Once the consumer knows discounts will be on-going, it lowers the level of the customer's feelings of urgency. Many consumers have felt it unnecessary to make the JCPenney trek unless there's a special discount going on.

Numbers talk

Earlier in the week, JCPenney CEO Ron Johnson said "customers love the new JCP they discover in our stores," but the numbers spoke a different truth, as the report showed the following:

Comparable store sales for the first quarter declined 18.9 percent. Total sales decreased 20.1 percent, which includes the effects of the Company’s exit from its outlet business. Internet sales through jcp.com were $271 million in the first quarter, decreasing 27.9 percent from last year.

Obviously there is still enough time to fiscally recover, but the early sales number may force JCPenney to return to its old days of the periodically offered sale.

"Consumers want deals, and they're willing to wait for them," said C. Britt Beemer chairman of America's Research group, in an interview with the press. "When you train customers to shop at big discounts, that customer is not going to change."

By offering year-around low prices, JCP wanted to change the customer's belief that 'the coupon is the golden key that unlocks the door to the biggest discounts'. But experts say consumers have a strong relationship with their coupons and aren't likely to give them up anytime soon.

"Our first 90 days are a little tougher than we expected," Johnson finally admitted. "We learned coupons are a drug. They really drove traffic."

And now that traffic has about-faced and decided to drive into other retail chains that choose to amp up its exclusive deal offers. All of this has Johnson, a former Apple executive, trying to regain his business swagger that was most evident when he made the Apple retail stores the success it is today.

But Johnson isn't discouraged as he still believes JCPenney's no coupon plan will eventually catch on. "We have work to do to educate the customer on our pricing strategy and to drive more traffic to our stores," he said in a released statement.

We'll see if the people are going to buy his optimistic reasoning. Or more importantly, decide to buy JCPenney merchandise again.

From craigslist to the newspaper classifieds, millions of cars are listed for sale even though they have been recalled, according to a warning by automotive website Edmunds.com.

The company cites a study that says that there were "at least" 2.7 million vehicles listed for sale last year that still were subject to unfulfilled recalls.

"The current system does not make it easy for car owners — especially used-car owners — to know if their vehicles are up-to-date on recall services," said Edmunds.com Senior Editor John O'Dell. "And since there's only so much the manufacturers can do to reach out to car owners, the responsibility for ensuring that a car has been checked for recalls ultimately rests with individual owners."

O'Dell thinks at the very least, used-car buyers should register their vehicles with the automakers to make sure they're in the loop on any existing or future recalls.

No laws

O'Dell says the company's investigation found that there are no laws that require a car's owner to notify a potential buyer that the car being sold is the subject of a recall.

While automakers send multiple letters to owners of affected cars to impress on them the seriousness of a car recall, the letters don't always reach new owners when a car is sold. According to Edmunds.com's research, almost eight percent of letters from two General Motors recalls in 2008 and 2009 have not been delivered for various reasons.

An Edmunds analysis of two GM recalls examined showed a "completion rate" of just 52.5 percent as of December 2011. GM says that its recalls generally reach a completion rate of about 70 percent. No other automaker would provide Edmunds with a composite completion rate for their recalls.

The National Highway Traffic Safety Administration (NHTSA) is developing a system that would enable consumers to use the government's Safercar.gov web site to track outstanding recalls through a vehicle identification number (VIN). However, an agency spokesman could not say when the system would be available for consumer use.

Though packaging for Fruit Roll-Ups and Fruit by the Foot snacks misleads consumers into believing they are made with real fruit, federal regulations allow for such labeling, even if it's not true, a federal judge has ruled in connection with a class-action lawsuit filed against General Mills.

"A reasonable consumer might make certain assumptions about the type and quantity of fruit in the Fruit Snacks based on the statement 'made with real fruit,' along with other statements prominently featured on the products' packaging," U.S. District Judge Samuel Conti wrote, Courthouse News Service reported.

"Additionally, the word 'strawberry' appears in large letters on the front, back, top, and bottom panels. Taken together, these statements might lead a reasonable consumer to believe that product is made with real strawberries, not pears from concentrate. The names 'Fruit Roll-Ups' and 'Fruit by the Foot,' along with the fanciful depiction of the products, which resemble fruit leather, may lead to further confusion about the Fruit Snacks' ingredients. After seeing these prominent aspects of the packaging, a reasonable consumer might be surprised to learn that a substantial portion of each serving of the Fruit Snacks consists of partially hydrogenated oil and sugars."

Popular with consumers

Anyone who thinks consumers will soon rise up and demand more truthful packaging may be disappointed.  A ConsumerAffairs computerized sentiment analysis of about 28,000 postings on social media over the last year finds Fruit Roll-Ups riding high with a net positive sentiment of about 80%.

Judge Conti was ruling in a class action brought on behalf of a San Francisco-area mother by the Center for Science in the Public Interest in October 2011. It claims that General Mills incorrectly describes the ingredients in its fruit-flavored snacks and deceives people into thinking they are healthful.

“General Mills is basically dressing up a very cheap candy as if it were fruit and charging a premium for it,” said CSPI litigation director Steve Gardner. “General Mills is giving consumers the false impression that these products are somehow more wholesome, and charging more. It’s an elaborate hoax on parents who are trying to do right by their kids.”

Citing an example, the suit charges that Strawberry Fruit Roll-Ups are made from pears from concentrate, corn syrup, dried corn syrup, sugar, partially hydrogenated cottonseed oil, citric acid, acetylated monoglycerides, fruit pectin, dextrose, malic acid, Vitamin C (ascorbic acid), unspecified “natural flavor,” and Red 40, Yellow 5, Yellow 6, and Blue 1.

Even with the pear ingredient, the product provides little of the beneficial fiber or nutrients associated with real strawberries, the suit alleges. While labels tout the naturalness of the added flavorings, CSPI says that many of the ingredients are artificial by anyone’s definition, including the partially hydrogenated cottonseed oil and the acetylated monoglycerides.

Whatever's in the stuff, most of the 28,000 consumers whose comments we analyzed think it's pretty tasty.

Deceptive but legal

Conti agreed that the words "made with real fruit" was deceptive, but agreed with General Mills that its claims based on the labels "naturally flavored" and "fruit flavored" are preempted by the Nutrition Labeling and Education Act, since the regulation allows a product to be labeled as "fruit-flavored," even if it does not contain fruit.

"Thus, the regulation allows a producer to label a product as 'natural strawberry flavored,' even if that product contains no strawberries. While the regulation's logic is troubling, the court is bound to apply it," Conti wrote. "So long as that product 'contains natural flavor' which is 'derived from' the 'characterizing food ingredient,' it will not run afoul of the regulation."

It's really annoying when we miss an unfamiliar phone call. It's even more annoying when the person on the other end actually reaches us, but then tries to sell us something or want us to fill out some sort of survey. Who are these people (in my best Jerry Seinfeld voice)? Where are they calling from? And how can I track this information?

The ReverseGenie App claims to be able to answer these questions for you, by allowing users to conduct a reverse phone search from their Android or iPhone. By using the application, annoyed call recipients can quickly try to learn the caller's name, email address, and cell phone number. They can also receive free unlimited reverse email searches with links to the caller's Facebook profile. The app also comes with a free caller ID. 

In the past, smartphone users would have to wait until they're in front of their lap or desktop to conduct reverse searches, but now they can download the app directly onto their mobile device and pull the wanted details of those obscure and unwanted calls.

The new application works by users entering the phone number of the person they're searching for, or by simply selecting a number from their call history to pull up more background information. Those interested can download the app for free and it comes with unlimited use.

Users can also immediately see their recent calls, click an address to get directions from Google Maps, and keep up to date information in their phone records with real-time updates.

After reverse search provides a name of someone calling your phone, ReverseGenie.com can pull additional information on that person such as their IP address, gender, service provider, and physical address. It's like bothered callers now have their own private investigator living inside their phone.

Although only recently released to the public, the app has gotten really positive reviews from both Android and iPhone users, and has been widely preferred over other caller ID applications. So prank callers, telemarketers, and creepy people beware. The people have been armed with a needed and timely bit of technology.

How well does it work?

But really, glowing user reviews aside, how well does this little tool work? The meanies in the ConsumerAffairs backroom mashed on it a bit to find out. Here's their report:

It works about as well as you'd expect, namely not very well, since it's based on records that are incomplete, often incorrect and sometimes misleading by design. 

First we inserted our own cell phone number -- 213-500-xxxx -- and got the astonishing information that it was registered to <name unknown> and that it was a number issued by Verizon in Los Angeles. OK, no surprise there.

Next, we entered a landline phone number from our DC-area office -- 703-359-xxxx.  It came up with three listings. One was spot-on, with the correct name, street address, etc. The other two were completely inaccurate. They were identical and each was a name we'd never heard of at an address in an office park a few blocks away.  Maybe it was someone who'd had the number before us?

Next we entered one of our Google numbers -- 213-915-xxxx. Reverse Genie pinned it down to Los Angeles but that was all the genie could discern.

So much for phone numbers. We next inserted an email address (yes, it will look up emails too): xxx.xxxx@gmail.com and got the startling answer that the address was registered to Google in Mountain View, Calif.

Next we entered a corporate email address that we know to be a DC company. Genie slithered out of his or her lamp and informed us the name was unavailable but confidently asserted the address was registered to InMotion Hosting in Santa Monica, Calif.

Hmmmm ... so, Genie was batting about 20 percent on this outing. If you look carefully, it's obvious Genie is not just providing information, it's also gathering it. Each time you ask for information on a number or email address, it gives you what it has then asks you to contribute what you know, including whether the call or email was spam. This could be a helpful way to build a database if everyone gave honest and correct answers. Otherwise, it's just another bulging mass of digits that don't add up to much.

There's something wonderful about soda. Is it just the sweetness? Or do those tiny throat-massaging bubbles hold some sort of magical ability? Either way, many of us enjoy a carbonated beverage now and again.

But in recent years soda has become the poster product for an unhealthy diet, especially in children, and as a result soda sales have seen a slow but steady decline.

According to the trade publication Beverage Digest, the average American drank about two sodas a day in 2011, which is a 16 percent decrease since the soda industry's strongest year in 1998. The slow sales decline became a faster decline within the last ten years and industry experts wonder if the trend will continue.

"The question is, are we seeing a modest, multiyear decline that will bottom out?" asked John Sicher, publisher at Beverage Digest. "I don't think anyone knows yet, but I think there are continuing headwinds against the category that aren't abating," he told a New York based publication.

Many American school systems have been removing the bubbly beverage from their vending machines and cafeterias, as childhood obesity continues to be a growing concern. The first widespread drink shift came in 2002, as the Los Angeles Unified School District Board voted to ban soft drinks from all of their schools.

Empty calories

The New York Times recently reported that the Faulkton Area School District in South Dakota, now forces its students to dispose of all carbonated beverages before entering the school. Sound excessive? Maybe not.

Health experts report that soda contributes nearly 300 empty calories a day to a diet, and also said that by drinking two cans a day, a person consumes the equivalent of one full-sized mason jar of sugar per week. But how closely are consumers listening?

Apparently pretty closely, as Coca-Cola's fastest growing product is not one of its carbonated beverages, but its bottled water Dasani. According to Beverage Digest, Dasani rose 11 percent, followed by Arizona iced tea which saw sales rise to 9.3 percent, and Gatorade made by Pepsi saw an 8 percent increase in sales.

In addition, six of the top 10 brands all saw sales losses in 2011, and the entire carbonated drink industry suffered a 1 percent loss. In 2010 the industry suffered a 0.5 percent decline, which shows a speedier sales loss within the last two years.

As soda sales continue to fall, energy drinks, juices, sports drinks, and teas have all been selling more. Many of the soda alternatives are in fact pricier, but the higher costs do not keep consumers from spending a bit more to cut out the high amounts of sugar and other additives.

Michael Bellas, chairman and CEO of Beverage Marketing said in a statement,"The strong showing by high-end and functional products shows that consumers--at least the more affluent ones--are not concerned exclusively with economic considerations when making heir beverage selections." 

Will the soda industry continue to see its sales drop? Or like the beef industry in the 90s, are the declining sales merely part of a consumer trend that will taper off in the future? Both time and future sales reports will tell.

Here's a rather innovative way for studios to let you know about the up and coming summer movie releases: Yahoo has recently launched "Movieland", an interactive online game promoting 35 soon-to-be-released big budget films.

All of the major movie studios, along with the California-based Internet company, have created a virtual board game kind of like Monopoly, where each square represents a different summer release. By playing the digital game, moviegoers can win movie prizes, see new trailers and purchase tickets. 

"The company hopes the game will encourage repeat visits as users compete with one another and share their achievements on social networks," said Ken Fuchs, vice president and head of sports, entertainment and games at Yahoo Media Network. "It sucks people into an experience," he said.

All of this is an effort by Yahoo to market the Yahoo Movies site, which already reaches millions of consumers each month. And film studios like Universal are equally excited, as Hollywood studios never desire to leave any stone unturned when it comes to promoting and selling one of its films.

Debuting earlier this week, the game already has trailers for such summer releases as, "Snow White and the Huntsman," the next Batman epic "Dark Shadows", and the Jennifer Lopez release "What to Expect When You're Expecting."

Immersive and engaging

In a statement to a West Coast media outlet, senior vice president of digital marketing at Universal said "We have seen interactive experiences that have a game structure to them to be more immersive and engaging relative to the exposure to our films," he explained. "Movieland is a great way to drive people into a more organic conversation around our film.

Movie consumers can also compete with other online players and win exclusive badges for all types of movie going perks, and also win other items by answering certain trivia questions. But the ultimate prize is winning a movie badge that gives the customer free movie tickets until the year 2020. That's a pretty nice prize considering what a movie ticket will run you these days.

Players of the game can also see critic reviews, subscribe to Yahoo's movie newsletter and see exactly where certain films are playing.

But, will simply playing a board game really drive consumers to the movie theater more often? Both Yahoo and film studios may be disappointed about how successful this new venture is, as consumers have been going to the movies less now than ever.

This could be attributed to movies being released on DVD practically weeks after the theater release, or consumers cutting back on their entertainment spending. Or, it could be due to consumers having new computer games to be entertained by like this one.

 We'll see if the movie studios and Yahoo actually see an impact on summer movie sales as a result of its newly created board-game.

The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) is proposing a new federal motor vehicle safety standard to require electronic stability control (ESC) systems on large commercial trucks, motorcoaches, and other large buses for the first time ever.

The agency said its research shows the technology could prevent up to 56 percent of rollover crashes each year—the deadliest among all crash types—and another 14 percent of loss-of-control crashes.

“The Department and the National Highway Traffic Safety Administration have long recognized the potential impact of stability control technology in reducing deaths and serious injuries that result from rollover crashes,” said Transportation Secretary Ray LaHood. “Today’s proposal is a major step forward to improving the safety of large commercial trucks, motorcoaches, and other large buses.”

Most effective

An extensive NHTSA research program to determine how available stability control technologies affect crashes involving commercial vehicles found ESC systems to be the most effective tool for reducing the propensity for heavy vehicles to rollover or lose control.

With sensors that monitor vehicle movement and steering, ESC can help mitigate rollover incidents by using automatic computer-controlled braking, and also aid the driver in addressing severe understeer or oversteer conditions that can lead to loss of control.

NHTSA estimates that a standard requiring ESC on the nation’s large trucks and large buses would prevent up to 2,329 crashes, eliminate an estimated 649 to 858 injuries, and prevent between 49 and 60 fatalities a year.

“We’ve already seen how effective stability control can be at reducing rollovers in passenger vehicles—the ability for this type of technology to save lives is one reason it is required on cars and light-duty trucks beginning with model year 2012,” said NHTSA Administrator David Strickland. “Now, we’re expanding our efforts to require stability enhancing technology on the many large trucks, motorcoaches, and other large buses on our roadways.”

While many truck tractors and large buses can currently be ordered with this technology, the proposed standard would require ESC systems as standard equipment on these types of vehicles. As proposed, the rule would take effect between two and four years after the standard is finalized, depending on the type of vehicle.

As expected, the U.S. Food and Drug Administration (FDA) today approved generic versions of the blood thinning drug Plavix, which helps reduce the risk of heart attack and stroke by making it less likely that platelets in the blood will clump and form clots in the arteries.

Clopidogrel, the generic name, is FDA-approved to treat patients who have had a recent heart attack or a recent stroke, or have partial or total blockage of an artery (peripheral artery disease).

“For people who must manage chronic health conditions, having effective and affordable treatment options is important,” said Keith Webber, Ph.D., deputy director of the Office of Pharmaceutical Science in the FDA’s Center for Drug Evaluation and Research. “The generic products approved today will expand those options for patients.”

More than 50 million people in the U.S. have taken Plavix since it was approved in 1997, according to Christina Trank, a Bristol-Myers spokeswoman. 

Bristol-Myers said it will still encourage patients to keep taking the brand, and is offering a “Plavix Choice Program” card that will let them get the medicine for $37 a month.

Boxed warning

Clopidogrel has a boxed warning to alert health care professionals and patients that the drug may not work well for those with certain genetic factors that affect how the body metabolizes the drug. Patients can be tested for these genetic factors to ensure that clopidogrel is the right choice for them. Also, certain medicines, such as proton pump inhibitors Prilosec (omeprazole) and Nexium (esomeprazole), reduce the effect of clopidogrel, leaving a person at greater risk for heart attack and stroke.

Clopidogrel may cause bleeding, which can be serious and sometimes lead to death. While taking the drug, people may bruise and bleed more easily, be more likely to have nose bleeds, and it may take longer for all bleeding to stop. Clopidogrel is dispensed with a patient Medication Guide that provides important instructions on its use and drug safety information.

Dr. Reddy's Laboratories, Gate Pharmaceuticals, Mylan Pharmaceuticals, and Teva Pharmaceuticals have gained FDA approval for 300 milligram (mg) clopidogrel. Apotex Corporation, Aurobindo Pharma, Mylan Pharmaceuticals, Roxane Laboratories, Sun Pharma, Teva Pharmaceuticals, and Torrent Pharmaceuticals have received approval for 75 mg clopidogrel.

The FDA notes that generic drugs are of the same high quality and strength as brand-name drugs. The generic manufacturing and packaging sites must pass the same quality standards as those for brand-name drugs.

Who says the current economy has people spending less? It can be pretty confusing when you hear about bleak economic news and people not spending, then you're unable to get a seat at your favorite restaurant because it's so crowded. 

Well, according to a report from the American Automobile Association (AAA), Americans still plan to spend their hard earned dollars on travel this summer despite harsh economic times.

The report reveals that 34.8 million Americans will travel at least 50 miles from their homes this summer, which is 1.2 percent higher than last summer. Experts mainly attribute this increase to the impending Memorial Day weekend.

Over 50,000 consumers were polled in the survey and nearly half of them said fuel prices won't dampen travel plans for them or their families. A smaller portion of the participants said that gas prices will either make them travel for less periods of time or cut cut down on other personal expenses.

Memorial Day travel

This years Memorial Day Weekend will see fewer miles traveled by vacationers, but none of the respondents said they were willing to cut out their vacations entirely. According to the AAA, the average distance traveled for consumers this summer will be 642 miles, which is down from last year at 792 miles.

"We have been seeing people sort of managing their trips," said spokesperson for the Auto Club of Southern California to the press. "If they have to spend more on gasoline, they will look for other ways to save, like eating out less."

In a separate survey conducted by the consultant company Deloitte, it showed that 54 percent of respondents plan to take a trip between June 1 and Labor Day this year, which is up from 52 percent last summer season.

The Deloitte Survey also shows that one in four (24 percent) plan to spend more money on this year's summer excursion than last year, and 56 percent said they will be spending the same amount.

"As consumers appear to feel more confident about the economy and the job market, we could see a steadily uptick year-over-year in leisure travel during the summer months," said Adam Wissenberg, vice chairman of Deloitte's travel, hospitality and leisure division.

"This highlights the continued growth and vitality of the travel industry as a whole. However, travelers also understand the value of the dollar in this economy and may expect more from travel and hospitality companies."

Researchers at Deloitte also said that travelers will be changing the way they vacation this year, by using airlines that don't charge a bag fee, and selecting hotels that come with a bevy of free services, like free breakfast or parking.

So maybe the experts are right about people spending less money, but they're incorrect about people cutting out the pleasurable things in life that keep us going. Because what's so good about saving extra money if you're too mentally drained to enjoy it?

Most weight-loss programs focus on what we eat. Two researchers, T. Bettina Cornwell of the University of Oregon and Anna R. McAlister of Michigan State University, say we should pay more attention to what we drink.

In a paper written up in the journal Appetite, they conclude that beverages consumed with a meal provide a powerful influence. It's not so much the calories in the beverages, it's how they play with your taste buds.

The paper featured separate studies. One involved a survey of 60 young U.S. adults between the ages of 19 and 23. The second involved 75 children, three to five years old.

The older group was served soda and chose salty, high-calorie foods to go with it. Preschoolers ate more raw vegetables, either carrots or red peppers, when accompanied with water rather than when accompanied by a sweetened beverage.

Influencing taste preference

"Our taste preferences are heavily influenced by repeated exposure to particular foods and drinks," said Cornwell. "This begins early through exposure to meals served at home and by meal combinations offered by many restaurants. Our simple recommendation is to serve water with all meals. Restaurants easily could use water as their default drink in kids' meal combos and charge extra for other drink alternatives."

Serving water, McAlister said, could be a simple and effective dietary change to help address the nation's growing obesity problem, which has seen increasing number of diabetes cases in young adults and a rise in health-care costs in general.

Drinking water with meals, Cornwell said, also would reduce dehydration. While estimates of dehydration vary by sources, many estimates suggest that 75 percent of adult Americans are chronically dehydrated.

Switching to water might help children the most. From an early age, Cornwell said, children learn to associate sweet, high-calorie drinks such as colas with salty and fatty high-calorie-containing foods like French fries.

"If the drink on the table sets the odds against both adults and children eating their vegetables, then perhaps it is time to change that drink, and replace it with water," Cornwell said.

When 50 states and the federal government reached a landmark settlement with five major mortgage lenders, struggling homeowners -- especially those who suffered abusive mortgage practices -- were promised a measure of financial relief.

But now some of those states, struggling against growing budget deficits, have opted to use some or all of their allotted funds under the settlement to meet current state budget requirements.

The $25 billion was supposed to be used to help homeowners and to fund foreclosure prevention programs in the states. Instead, it will pay for services that are already being provided but are under-funded by current tax revenue.

The problem is perhaps most acute in California, where Gov. Jerry Brown has proposed to use virtually all of the $400 million his state is receiving from the settlement to stem the flow of red ink.

Awkward

That puts California Attorney General Kamala Harris in a politically awkward position, since she made securing relief for her state's beleaguered homeowners a major focus. That potentially puts her in conflict with her fellow Democrat.

"The Governor's May (Budget) Revision, however, proposes to redirect this $410 million from the state's homeowners to other budget purposes," Harris said in a statement. "While the state is undeniably facing a difficult budget gap, these funds should be used to help Californians stay in their homes. I plan to work with the Governor and Legislature toward a balanced budget that honors our obligations to California's homeowners."

California is hardly the only state facing this issue. According to the New York Times, Texas diverted $125 million from the settlement straight into the general revenue fund, Virginia is sending $67 million to cash-starved local governments, and Indiana is using half of its settlement funds to pay utility bills for low income residents.

On Friday Facebook shares go on sale on Wall Street for the first time in an initial public offering (IPO) and the Street is giddy with excitement. Is it justified?

Analysts are bullish on the stock, as they have been with some other high-profile IPOs of the last decade. Small investors, however, might do well to watch this one from the sidelines.

"Companies around the world go public all the time, but only a few capture the imagination of the street, the media and the general public,” said Colin Cieszynski, Senior Market Analyst at CMC Markets. “There are usually only so many shares available for sale in an IPO and,if demand outstrips supply, traders are ready and waiting to purchase shares when they debut in the open market. This unfilled demand tends to drive the initial trading spikes, but while this may be great for those lucky enough to get IPO shares, the question remains as to whether there will be any room for anyone else to make money."

IPO history

To answer whether the Facebook IPO shares will be a flash in the pan or a real money maker, Colin examined post-IPO trading for eight major companies that debuted in the last decade, four from the technology sector and four from other industries.

In all cases, the stocks closed below their highs for the day, although MasterCard finished the strongest. Half of the stocks finished their first day down from their opening price.

That's not unusual. Following an initial flurry of interest, the stocks tend to fall back for a few days after their first day on the market and some of the initial enthusiasm has worn off.

Google's IPO was priced at $85 a share. It opened at $100, went as high as $104, and closed back at $100.

Groupon's IPO was priced at $20 and actually opened at $28. It hit a high of $31 and closed at $26.

Baidu had a very exciting IPO. It initially priced at $27 but opened at $66. It then surged to as high as $151 before closing at $122.50.

Update

The real question for any long-term investor, however, is how are they doing today? Google trades at around $600 a share but Groupon has fallen to around $12. Baidu, meanwhile, is trading around $123, very close to where it closed on its opening day.

The investors who do really well on an IPO are those who were able to obtain shares before the companies went public, often for pennies a share. They can make millions -- and in the case of Mark Zuckerberg, billions -- on opening day. For the rest of us, IPOs are probably not a place to invest the rent money.