Current Events in July 2012

There's no doubt that modern technology has improved many facets of life, from important medical discoveries to fun things like intricately styled computer games. The place where technology hasn't made things better is in the area of photo printing.

Being able to take high resolution photos with your mobile device nowadays is a great thing, but printing them is entirely another story.

How many cherished pictures still live inside your smartphone or laptop? And pulling out a bunch of cords and flash drives to transfer pics can be a cumbersome task, not to mention having to go to the store to print the darn things out.

Walgreens just partnered with the file-sharing company Kicksend, to make the digital photo printing experience a bit less painless. Consumers will now be able to send photos from their iPhone directly to their local Walgreens and  pick them up in an hour’s time.

File-sharing startup

For those not familiar with Kicksend, it's a file sharing startup founded by friends and recent college grads Brendan Lim and Pradeep Elankumaran, who were eager to develop a new product based on an unfulfilled consumer need.

The two entrepreneurs applied for and received funding through the company Y Combinator, which gives seed money to promising start-ups and helps morph ideas into successful businesses.

Once Kicksend was underway it allowed users to send photos with no size limitation through a web or desktop app. But the company grew from there.

Later that same year the pair of friends experienced even more luck, receiving $1.8 million in additional funding from venture capital firm True Ventures, turning their file sharing start-up company into major social media players.

At the close of 2011, Kicksend took advantage of the enormous smartphone craze and partnered with iPhone to create a new app, and eventually created an app for Android users.

Photos can be sent to any email address regardless of carrier, and recipients don't have to be members of Kicksend or download its app to receive photos.

Easier sharing

Elankumaran and Lim came up with Kicksend because they wanted an easier way to share photos with their parents, who lived far away, and weren't too savvy when it when it came to file sharing.

"We were separated from our families. My parents are non-technical. They're a perfect case" said Elankumaran in an interview.

Not only can users send or receive photos from friends or family members on their smartphones, from a 2,700 mile distance, they can instantly send photos to a near-by Walgreens, instead of going to the store and waiting on line.

This is a good move for Walgreens, as the company is one of the few remaining store-chains consumers still use to print pictures. And linking itself with Kicksend will not only increase the store's foot-traffic, but it will also give it a splash of youth coolness.

It's a perfect time for Walgreens to cater to that sect of the buying public who prefer taking photos on smartphones rather than on cameras.

Camera sales tank

According to the market research firm IC Insights, the digital camera industry continues to see extremely low sales. Shipments of digital hand-held cameras have dropped to 9 percent between the years of 2005 and 2010, according to the report. And between 2010 and 2015 shipments are estimated to grow by only 2.1 percent each year.

It seems that handheld cameras for the non-photographer may soon just be a blurry memory, similar to the home answering machine.

Abhi Dhar, Walgreen's chief technology officer for the store's e-commerce division, agrees that smartphones are the way consumers are taking pictures nowadays, and it's only good business to accommodate them by making photo printing easier.

"For us to be able to tap into the creativity and innovation that is happening was an opportunity that we couldn't pass by," he said in a statement. "When we saw the amount of interest that consumers have in using their smartphones as photo-taking devices, it was natural to take where consumers demand was and link it with what we saw to be a strong part of our offering."

Elanjumaran also believes this is a productive step towards meeting consumers where they are, in terms of accessing services quickly and easily through digital means.

"We're all about empowering everyday people to stay in touch with people they care about," he said. "And our brand new, incredible seamless photo printing experience through Walgreen' QuickPrints is a big step in that direction. There is no better way to share and keep your memories with the people you love."

It will be interesting to see if consumers find Walgreens' new print feature as convenient as promised, as the concept sounds great on paper. But it's what happens off paper that one needs to pay attention to.

Few things are as annoying as those recorded "robocalls" -- especially if your just sitting down to dinner. But what should you do when you get one?

The Federal Trade Commission (FTC) has issued tips for consumers, as well as two new consumer education videos explaining robocalls and describing what to do when you get one. The agency also is hosting a robocall summit later this year to develop new strategies to stop illegal robocalls. 

"The FTC hears from American consumers every day about illegal robocalls and how intrusive they are," said FTC Chairman Jon Leibowitz. "We're ratcheting up our efforts to stop this invasion of consumers' privacy." 

Consumer videos 

The agency's two new consumer videos, "Robocalls Gone Wrong," and "What To Do if You Get a Robocall," are located on a new FTC robocalls Web page, which has more information about robocalls and what the FTC is doing to protect consumers. 

Nearly all telemarketing robocalls have been illegal since September 1, 2009. The only legal sales robocalls are those that consumers have stated in writing that they want to receive. Certain other types of robocalls, such as political calls, survey calls, and charitable calls remain legal, and are not covered by the 2009 ban. 

To date, the FTC has brought 85 enforcement cases targeting illegal robocalls, and violators have paid $41 million in penalties. Indeed, since January 2010, the Federal Trade Commission has brought law enforcement actions, shutting down the companies responsible for more than 2.6 billion illegal telemarketing robocalls. 

FTC's Robocall Summit 

The FTC will host a summit on October 18, 2012, in Washington, DC, to examine the issues surrounding the robocall problem. The summit will be open to the public, and include members of law enforcement, the telemarketing and telecommunications industry, consumer groups, and other stakeholders. It will focus on exploring innovations that could potentially be used to trace robocalls, prevent wrongdoers from faking caller ID data, and stop illegal calls. 

More information about the summit and a draft agenda will be available soon.

Want to go online to check your Social Security statement? You have lots of company. 

Social Security Commissioner Michael J. Astrue says that in less than two months’ time, one million people have gone online, created a My Social Security account and viewed their Social Security Statement.                   

“The online Social Security Statement is a huge success,” said Astrue.  “The online Statement meets our commitment to provide Americans with an easy, efficient process to obtain an estimate of their potential Social Security benefits.  I recommend that everyone get in the habit of checking their online Statement each year, around their birthday, for example.” 

Plenty of info                                                  

The online Statement provides estimates for retirement, disability and survivors benefits.  It also provides workers as young as 18 a convenient year-round way to determine whether their earnings are accurately posted to their Social Security records, which was not possible when the agency mailed paper Statements only to those 25 and older. 

On May 1, Social Security unveiled the new addition to its popular suite of electronic services, allowing people to access their Social Security earnings and benefit information securely and conveniently. 

According to the American Customer Satisfaction Index (ACSI), users are giving the online Statement a score of 89 -- making it competitive with Social Security’s other top-rated, best-in-government online services, such as the Retirement Estimator and online retirement application. 

The ACSI tracks trends in customer’s satisfaction and provides valuable benchmarking insights for companies and government agencies. 

To access your online Statement, you must be at least 18 years old, have a Social Security number, have a valid email address and have a U.S. mailing address. 

You can learn more or create your own account here.

Do women who live with cats run a greater risk of suicide? A study at the University of Maryland has raised that intriguing possibility.

Researchers writing in the Archives of General Psychiatry report finding women infected with a brain parasite called T. gondii that can be spread through contact with cat feces. It can also be spread by eating undercooked meat or unwashed vegetables.

Amazingly, the researchers who studied 45,000 female subjects in Denmark conclude that about a-third of the world's population is infected with the parasite. If you have it you probably don't know. It can hide for years and not produce any physical symptoms.

Mental illness link

The infection is linked to mental illness, odd changes in behavior and suicide attempts. The study found that women who had the parasite were one and a half times more likely to attempt suicide than those who did not have it.

Dr. Teodor Postolache, an associate professor at the University of Maryland, is the study's senior author.

“We can’t say with certainty that T. gondii caused the women to try to kill themselves, but we did find a predictive association between the infection and suicide attempts later in life that warrants additional studies,” Postolache said.

“We plan to continue our research into this possible connection.”

The parasite lives in cats' intestines and humans come in contact usually while cleaning a litter box. But cats aren't the only way the parasite spreads.

T. gondii can contaminate meat or vegetables. Heat kills it so if the food is thoroughly cooked, there is no danger.

A federal effort to crack down the abuse of highly potent prescription painkillers is in the works. 

The U.S. Food and Drug Administration has approved a risk evaluation and mitigation strategy (REMS) for extended-release (ER) and long-acting (LA) opioids -- highly potent drugs approved for moderate to severe, persistent pain that requires treatment for an extended period. 

The REMS is part of a federal initiative to address the prescription drug abuse, misuse, and overdose epidemic. The REMS introduces new safety measures designed to reduce risks and improve the safe use of ER/LA opioids, while ensuring access to needed medications for patients in pain. 

“Misprescribing, misuse, and abuse of extended-release and long-acting opioids are a critical and growing public health challenge,” said FDA Commissioner Margaret A. Hamburg, M.D. “The FDA’s goal with this REMS approval is to ensure that health care professionals are educated on how to safely prescribe opioids and that patients know how to safely use these drugs.” 

Sweeping changes 

The new ER/LA opioid REMS will affect more than 20 companies that manufacture these opioid analgesics. Under the new REMS, companies will be required to make education programs available to prescribers based on an FDA Blueprint. 

It is expected that companies will meet this obligation by providing educational grants to continuing education (CE) providers, who will develop and deliver the training. 

The REMS also will require companies to make available FDA-approved patient education materials on the safe use of these drugs. The companies will be required to perform periodic assessments of the implementation of the REMS and the success of the program in meeting its goals. 

The FDA will review these assessments and may require additional elements to achieve the goals of the program. 

“We commend the FDA for taking action to save lives by increasing access to prescriber education,” said Gil Kerlikowske, director of the Office of National Drug Control Policy. “Since day one, the Obama Administration has been laser focused on addressing the prescription drug abuse epidemic and today’s action is an important contribution to this comprehensive effort.” 

Widely-used meds 

ER/LA opioid analgesics are widely prescribed medicines with an estimated 22.9 million prescriptions dispensed in 2011, according to IMS Health, which provides services and information to the health care and pharmaceutical industries. It is estimated that more than 320,000 prescribers registered with the Drug Enforcement Administration (DEA) wrote at least one prescription for these drugs in 2011. 

ER/LA opioid analgesics are associated with serious risks of overuse, abuse, misuse and death and the numbers continue to rise. According to the Centers for Disease Control and Prevention, 14,800 people died from overdoses involving opioids in the U.S. in 2008. In 2009, there were 15,597 deaths involving these medications -- nearly four times as many deaths compared to 1999. 

“Misuse and abuse of prescription opioids is a complex problem and demands a holistic response,” said John Jenkins, M.D., director of CDER’s Office of New Drugs. “The new REMS program is one component of a multi-agency, national strategy to address this important public health issue.” 

Key components of the ER/LA opioid analgesics REMS include: 

• Training for prescribers. Based on an FDA Blueprint, developed with input from stakeholders, educational programs for prescribers of ER/LA opioids will include information on weighing the risks and benefits of opioid therapy, choosing patients appropriately, managing and monitoring patients, and counseling patients on the safe use of these drugs. In addition, the education will include information on how to recognize evidence of, and the potential for, opioid misuse, abuse, and addiction, and general and specific drug information for ER/LA opioid analgesics.
• Updated Medication Guide and patient counseling document. These materials contain consumer-friendly information on the safe use, storage and disposal of ER/ LA opioid analgesics. Included are instructions to consult one’s physician or other prescribing health care professional before changing doses; signs of potential overdose and emergency contact instructions; and specific advice on safe storage to prevent accidental exposure to family members and household visitors.
• Assessment/auditing. Companies will be expected to achieve certain FDA-established goals for the percentage of prescribers of ER/ LA opioids who complete the training, as well as assess prescribers’ understanding of important risk information over time. The assessments also cover whether the REMS is adversely affecting patient access to necessary pain medications, which manufacturers must report to FDA as part of periodic required assessments.

It is expected that the first continuing education activities under the REMS will be offered to prescribers by March 1, 2013.

Nouriel Roubini is also known as Dr. Doom. He correctly predicted 2008's housing market collapse and the noted economics professor has been bearish on the economy almost ever since.

Earlier this year Roubini warned that the economy faced “a perfect storm.” Growth will slow in the U.S., he said, Europe will be gripped by its debt troubles, the economy will slow in China and military tensions in the Persian Gulf will all combine to thrown the world economy into recession.

And it's all happening now, he says.

“2013 perfect storm scenario I wrote on months ago is unfolding,” Roubini said in a Tweet.

Worse than 2008

Roubini said what he sees as the coming crisis will be worse than 2008 because central banks, like the Federal Reserve, had pretty much run out of ways to stimulate the economy. Policy options, he says, are extremely limited.

Roubini's four horsemen of the apocalypse don't include the so-called “fiscal cliff” scenario. Fed Chairman Ben Bernanke first invoked that phrase to warn Congress that it must take action to prevent automatic tax hikes and federal spending cuts from taking effect at the end of the year.

Last year in its contentious debt ceiling negotiations, Congress put in place a scenario whereby huge across the board federal spending cuts would go into effect until lawmakers approved an alternate deficit-cutting plan. At the same time, lower tax rates for everyone are set to expire, reverting to their higher pre-2001 levels.

Counting on Congress

No one thinks Congress will be able to overcome extreme partisanship and ideological gridlock in the six weeks after the November election to head off the looming “fiscal cliff.”

In a report to clients Michelle Meyer of Bank of America Merrill Lynch says the “fiscal cliff” is not just an end-of-the-year story – it's here now. Businesses are already beginning to cut planned expenditures because they expect tax rates to go up at the end of the year. In other words, they are reacting now, not waiting.

President Obama Monday proposed extending the Bush-era tax rates for everyone except those earning more than 250,000 a year. Republicans -- and even a few Democrats -- have called for extending the lower rates for all, at least temporarily.

If you waited until July to negotiate the price of a new car or truck, you may find dealers have fewer incentives, in the form of rebates and financing, to sweeten the deal.

Most automakers had a terrific sales month in June, with more than one reporting record sales. Automotive site Edmunds.com reports incentives from dealers and manufacturers averaged $2,187 per vehicle, down 1.6 percent from May.

"If you waited to buy a new car this month, it would have been very difficult to find better deals than you could have found in May," said Edmunds.com Senior Analyst Jessica Caldwell.

With the industry as a whole recording robust sales in June, it's likely there will be even fewer incentives on new vehicles this month. But then again, that's not a certainty. The calendar is working in the car buyer's favor.

"As more 2013 model year vehicles hit dealer lots this summer, car buyers can start to expect better deals on the 2012 models that needed to be cleared out," Caldwell said.

Consumers willing to buy a new 2012 model instead of a 2013 may actually find some attractive deals, if not this month then in August.

Advice for first-time car buyers

If you're shopping for your first new car, it can often be an overwhelming experience. Consumers are so focused on style, color, features and financing they often forget to ask for incentives.

Automotive data firm Kelly Blue Book says there are five keys to making a good decision and getting the best deal on your first new car:

1. Be logical. Don't get swept away by style and sex appeal. If you are looking for an economical-to-own vehicle to get you back and forth to work or school, there are more practical choices that should suit you --  and your checkbook -- better.
2. Do your homework before hitting the showroom. Research all the models you're considering. Remember, buying the wrong car is a bigger mistake than paying too much for it. Take advantage of the research material provided by both Kelly and Edmunds.
3. Line up your financing ahead of time. You best option is to visit your bank or credit union and get pre-approved. That way you don't have to accept whatever financing the dealer offers. This is also once sure way to avoid so-called yo-yo financing, where the dealer approves you for a loan and lets you drive away, only to call you back days later and tell you the final loan wasn't approved.
4. Focus on the total cost, not the monthly payment. Sure, you have to be able to make the payment from your monthly budget. Also, avoid stringing out the financing for extra years in order to reduce the monthly payment. Better to bite the bullet and pay over a shorter period but a higher payment.
5. Finally, don't be afraid to walk. Sales people will make you think that you have to make a decision immediately and, truthfully, it's in their best interest if you do. Don't make a buying decision is you feel pressured and until you are ready.

The national average retail price is on the rise once again after weekly declines beginning in mid April. The price, as measured by AAA's Fuel Gauge Survey, appears to be following the same pattern set last year.

In 2011, the price of gasoline soared over the winter during the “Arab Spring,” when political turmoil in the Middle East pushed world oil prices higher. The national average pump price topped out at $3.985 in early May 2011.

Then it began to fall as suddenly, optimism about the economic recovery turned sour. It was said the economy had hit a “soft patch” and therefore, energy traders began betting on lower prices.

Early July reversal

Then, during the first week of July 2011 prices began to rise again after bottoming at about $3.55 a gallon. Independence Day week ended with the average pump price at $3.59. After rising slightly in the following weeks, prices began to fall again in September, bottoming once again in early December at $3.29.

In 2012 gasoline prices began rising early in the year as the economy showed signs of strength and tensions in the Middle East flared once again -- this time with Iran and Western nations over Iran's nuclear program.

In early January prices at the pump jumped nearly a dime a gallon to $3.352 and the pattern began all over again. Prices rose at a faster pace than the year before, leading some oil industry analysts to predict prices could exceed $5 or even $6 a gallon on some areas by summer.

Dire forecasts didn't pan out

But it didn't happen. Pump prices peaked at $3.936 in early April -- a month earlier than in 2011 -- and have been steadily falling until just recently. On July 6 the average pump price was $3.358, up fractionally from the previous week.

Of course, just because 2011 and 2012 have been remarkably similar when it comes to fluctuations in gasoline prices doesn't mean the second half of this year will match the second half of 2011. But if it does, consumers can expect lower prices to return.

A variety of factors can influence oil and gasoline prices, making them hard to predict. But with concerns about economic slowdown in the second half of this year, it's not unreasonable to conclude that the pattern could continue, with prices drifting higher for a few weeks before an accelerated decline heading into the fall months.

Here’s a novel idea: know what you’re getting into before you sign your life away. 

That’s the concept behind the Consumer Financial Protection Bureau’s (CFPB) proposal for new mortgage disclosure forms designed to help consumers make informed decisions when shopping for a mortgage and avoid costly surprises at the closing table. The CFPB is also proposing a rule that expands protections for “high-cost” mortgage loans. 

“When making what is likely the biggest purchase of their life, consumers should be looking at paperwork that clearly lays out the terms of the deal,” said CFPB Director Richard Cordray, who will be speaking in Las Vegas today about the agency’s work to restore trust in the mortgage market. “Our proposed redesign of the federal mortgage forms provides much-needed transparency in the mortgage market and gives consumers greater power over the exciting and daunting process of buying a home.” 

Easier-to-use mortgage disclosure forms 

The proposed forms, which consumers will receive after applying for a loan and before closing, are part of the CFPB’s “Know Before You Owe” mortgage project. They are the result of more than a year of research, testing, writing, and review. 

You can check out the proposed rule yourself here.  

Consumers currently receive two different but overlapping federal disclosure forms after application that are supposed to spell out the terms and costs of the mortgage loan -- the forms required by the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). The differences in these two forms can be confusing to consumers and industry. At the direction of Congress, the CFPB is combining them to create one document. 

The new forms 

The CFPB has designed the new “Loan Estimate”  and “Closing Disclosure” forms to present the costs and risks of the loan in clearer terms. The forms benefit consumers by using plain language and a format that will help them understand their loans. They benefit lenders by cutting down on redundancy. Below are some of the key improvements in the CFPB’s proposed forms: 

• Simpler than the old forms. Consumers can understand and compare different mortgages more effectively, and examine their estimated and final terms and costs more easily, helping them make the right decisions for themselves and their families.
• Highlight information consumers need. Interest rates, monthly payments, the loan amount, and closing costs are all right there on the first page of the CFPB proposed form. Also, the first page explains how the interest rates, payments, and loan amount might change over the life of the loan, including the highest they can go. In addition, the forms offer more information about taxes, insurance, and other property costs so consumers can better understand the total cost.
• Easier to look out for risks. The forms provide clear warnings about features some consumers may want to avoid, such as prepayment penalties and an increase in the loan balance (negative amortization). The proposed rule also contains provisions to make estimates more reliable. And because the proposed rule requires lenders to keep electronic copies of the forms they give to consumers, industry and regulators will be able to address compliance questions more easily.
• More time to consider choices. Lenders must give the Loan Estimate to consumers within three business days of applying for a loan and consumers must receive the Closing Disclosure at least three business days before closing on a loan. This will allow consumers to decide whether to go ahead with the loan and whether they are getting what they expected.
• Limits on closing cost increases. The proposed rule would restrict circumstances in which consumers can be required to pay more for settlement services than the amount stated on their Loan Estimate. 

Consumer input 

The CFPB’s proposal took into consideration 10 rounds of testing with consumers and industry and feedback from the public on multiple prototype forms over the past 18 months. Public feedback has included tens of thousands of comments. 

A side-by-side comparison of the proposed mortgage forms and the old ones, an illustration of how the rule relates to the forms, and a timeline of the CFPB’s Know Before You Owe mortgage project are available here.  

The public can weigh in on the CFPB’s proposal here. The public will have 120 days -- until Nov. 6, 2012 -- to review and provide comments on most of this proposal. However, comments are due for specific portions after 60 days on Sept. 7, 2012. The CFPB will review and analyze the comments before issuing final rules. 

High-cost mortgage protections 

Consumers who take out mortgages that are considered “high cost” receive special protections from fees and risky loan terms. The CFPB is proposing rules that would expand what is considered a “high-cost mortgage” and provide more protections to consumers who take out those loans. 

The proposed rule is available here.  

The proposed rule would implement Congress’s expansion of the Home Ownership and Equity Protection Act (HOEPA) with respect to mortgages with high interest rates, fees, or prepayment penalties. The CFPB’s proposal would: 

• Ban potentially risky features. For mortgages that qualify as high-cost based on their interest rates, points and fees, or prepayment penalties, the proposed rule would generally ban balloon payments (a large, lump sum payment usually due at the end of the loan), and would completely ban prepayment penalties.
• Ban and limit certain fees. The CFPB’s proposed rule would ban fees for modifying loans, cap late fees, and restrict the charging of fees when consumers ask for a payoff statement (a document that tells borrowers how much they need to pay off the loan).
• Require housing counseling for high-cost mortgages. The proposed rule would require consumers to receive housing counseling before taking out a high-cost mortgage. In addition, the CFPB’s proposal would implement TILA counseling requirements for first-time borrowers taking out certain mortgage loans that permit negative amortization. The proposal would also implement an amendment to RESPA to generally require that a list of housing counselors or counseling organizations be provided to all mortgage applicants.

Prices of gold and silver have skyrocketed over the last decade, making mining operations more profitable. Yet one source of these precious metals is being virtually ignored, experts say.

Each year consumers discard millions of old, outdated computers, cell phones and other electronic devices. They are also discarding the gold and silver used in these devices, and it turns out there's more there than you might think.

A staggering 320 tons of gold and more than 7,500 tons of silver are now used each year to make PCs, cell phones, tablet computers and other new electronic and electrical products worldwide.

Don't throw them away

When those devices become obsolete and no longer used, savvy consumers shouldn't just discard them. Increasingly, businesses are willing to buy your old devices for the mineral deposits they contain - what industry experts attending a conference last week in Ghana call "urban mining."

Make no mistake, you won't strike it rich by rounding up old discarded computers and cell phones in your neighborhood. Each device uses only a small amount of the precious metal. But policy-makers say it's just another incentive to recycle what they call "e-waste."

"More sustainable consumption patterns and material recycling are essential if consumers continue to enjoy high-tech devices that support everything from modern communications to smart transport, intelligent buildings and more."said Luis Neves, Chairman of GeSI, an e-Waste Academy for policymakers and recycling businesses.

$21 billion a year in precious metals

According to GeSI, electronic waste now contains precious metal "deposits" 40 to 50 times richer than ores mined from the ground. They say recycling efforts could add more than $21 billion in value each year to the rich fortunes in metals eventually available through "urban mining" of e-waste.

While there are a growing number of "backyard" recyclers, their efforts usually aren't as efficient as professional "urban mining" operations.

Consumers will increasingly find a market for their old electronic devices. While a number of charitable groups have always collected old cell phones and computers, the new trend is for companies to actually pay for them. It's not unusual to receive $20 for an old cell phone.

Throwing these devices in the trash has always been frowned upon. A number of studies suggest cell phones are potentially hazardous waste because they contain lead, mercury, cadmium and arsenic. If thrown in the trash and sent to incinerators or landfills, environmental contamination can occur from combustion and leaching into soil and groundwater.

You've heard of the no-fly list?  Well, there's also a no-buy list for federal agencies and Apple is now on it.

Reason? The secretive computer and gadget company has withdrawn from a voluntary program that certifies products meet minimum environmental protection standards.

"We regret that Apple will no longer be registering its products in EPEAT. We hope that they will decide to do so again at some point in future," said a statement posted by the federal body that administers the environmental protection program.

Under a law passed in 2009, companies must submit their products to the Electronic Product Environmental Assessment Tool (EPEAT) for certification if they want to sell to federal agencies.

It's not clear why Apple has pulled out of the program. The U.S. government is, after all, one of the largest -- if not the largest -- purchaser of computer and electronics gear. 

Not a crusader

Apple is not exactly known for its crusading environmental activism. Greenpeace and other groups have criticized Apple for its secrecy and refusal to open its manufacturing process to scrutiny by outside groups.

In one of its latest beefs with Apple, Greenpeace is charging that the "iCloud" is hosted on servers powered by electricity generated by coal-burning plants.

Blowing off the U.S. government is one thing but in this case, Apple's drop-out is likely to fall even farther from the tree. Many educational institutions, local and state governments and non-profit organizations have their own environmental programs and they're not likely to be pleased to learn that Apple no longer supports standards that are intended to ensure that computer equipment can be easily broken down for recycling.

Samsung, which is engaged in a number of patent disputes with Apple all over the globe, won a victory in Britain today. Sort of.

A British judge decided in favor of Samsung, saying Apple's claim that the Samsung Galaxy Tab stole the iPad's design was groundless. That's good news for Samsung, but the reason for the judge's ruling might not be.

When looking at both the Galaxy Tab and the iPad, Judge Colin Birss of Britain's high court said the Samsung tablet did not have “the same understated and extreme simplicity which is possessed by the Apple design. They are not as cool."

Ouch.

Despite the backhanded victory, Samsung welcomed the judge's ruling and said it looked forward to the day when the courtroom battles with Apple come to an end.

Head-to-head

Samsung and Apple are fighting on multiple fronts in the U.S. Last week a U.S. Court of Appeals rejected Samsung's motion to remove a ban on the U.S. sales of its Galaxy Nexus smartphone, made in conjunction with Google.

Two weeks ago a U.S. District Judge in California granted Apple a preliminary injunction blocking the sale of the Samsung Galaxy Tab 10.1 over the same issue addressed today by the British court. Samsung has appealed that ruling. 

Apple has sued to block Samsung from selling the Galaxy 10.1 in the U.S., and elsewhere, claiming it is "virtually indistinguishable from the iPad." In an earlier ruling, the court agreed with Apple but the judge has yet to file a final ruling.

In granting the preliminary injunction, the California judge required Apple to post a $2.6 million bond to compensate Samsung if the final ruling goes Samsung's way.

Meanwhile, don't be shocked if the British judge's finding that the Samsung tablet, which runs on the Android operating system, is “not as cool as an iPad” somehow finds its way into Apple advertising.

Privacy advocates jaws dropped today as they read a New York Times report that cell phone companies processed more than 1.2 million law enforcement requests for customer records last year.

The disclosures came in response to letters from Rep. Edward Markey (D-MA) and Rep. Joe Barton (R-TX).

If that 1.2 million number sounds high to you, consider this: Sprint noted in its response that it received about 500,000 subpoenas last year and that “each subpoena typically requested subscriber information on multiple subscribers.”

Other carriers said they sometimes respond to subpoenas by providing all of the information from a cell tower or a particular area, thus giving police sensitive personal information on people the police haven't even asked about.

"Everyone whose phone has been used by a particular cell tower over a particular time period — likely hundreds or thousands of people — could have their data examined by investigators," said Chris Calabrese, an attorney with the American Civil Liberties Union (ACLU). 

And these dragnet data requests are on the rise, Calabrese noted.  Verizon estimates that over the last 5 years it has seen an average increase of 15% annually, and T-Mobile reported increases of approximately 12%-16%.  This has also led to at least some possible abuse; T-Mobile disclosed that in the last three years it has referred two inappropriate law enforcement requests to the FBI. 

Although they charge to fulfill the requests, the phone companies are not happy about it, noting that they must devote hundreds of employees to doing nothing but answering requests from law enforcement agencies.

"There is no statute that directly addresses the provision of location data of a mobile device to the government," a Sprint executive said in the company's response to Markey and Barton. "Given the importance of this issue and the competing and at times contradictory legal standards, Sprint believes that Congress should clarify the legal requirements for disclosure of all types of location information to law enforcement personnel."

There are two bipartisan bills -- both called the GPS Act -- in Congress that would do just that, Calabrese noted, by requiring law enforcement to secure a warrant based on probable cause before obtaining location information. 

A lawsuit claims Hyundai misled consumers about the gas mileage of the 2011 and 2012 Elantra, using a high-powered advertising campaign to capitalize on public concern over escalating gas prices.

The lawsuit, filed by Consumer Watchdog and Cuneo Gilbert and LaDuca, LLP, alleges that Hyundai touted "The 40 Mile Per Gallon Elantra" in high-impact television, Internet, and print advertisements without government-required disclosures that those mileage estimates were for highway driving only and that city driving mileage estimates were much lower.

The omitted disclosures would have informed consumers that the car does not attain 40 MPG under most driving conditions. The illegal advertisements caused tens of thousands of California drivers to purchase or lease 2011 and 2012 Elantras and consequently incur unexpected fuel costs, the suit alleges.

"I feel like Hyundai took advantage me. Hyundai's advertisements about the ‘40 MPG’ gas mileage of the Elantra instantly caught my attention. I bought the car thinking I would be seeing major savings at the pump and getting over 500 miles per tank, but Hyundai fooled me," said Louis Bird of Sacramento, a 2011 Elantra owner who is representing other consumers in the class-action lawsuit and meticulously documents his mileage.

"I have not saved any money on gas and have been driving the Elantra for well over a year now. It is frustrating and disappointing. I never would have bought the Elantra in the first place if I hadn’t seen Hyundai’s ads boasting about gas mileage," Bird said.

The lawsuit seeks to stop Hyundai from illegally using gas mileage numbers in its advertising of the Elantra without government-mandated disclosures and asks for damages on behalf of California residents who purchased or leased 2011 and 2012 Elantras.

"Hyundai used the '40 MPG' figure in a deceptive manner in order to differentiate the Elantra from similar vehicles, an especially egregious tactic during a time when consumers are looking for relief from continually rising gasoline prices," said Laura Antonini, staff attorney for Consumer Watchdog. 

"Car companies are required to disclose certain information when mileage estimates are provided in their advertisements and Hyundai ignored the rules," said William Anderson, attorney for Cuneo Gilbert and LaDuca, LLP.  "Without this required information, consumers cannot make accurate comparisons when shopping for vehicles."

When West Virginia consumers started getting phone calls from a California debt collector that they considered harassing, many complained to West Virginia Attorney General Darrell McGraw.

McGraw said he began an investigation and quickly discovered that DP & Associates of Irvine, CA, did not have a license to collect debts in the state. In addition, McGraw said the collectors engaged in threats, a violation of consumer protection laws.

As a result, DP & Associates will make refunds or cancel debts totalling $1.7 million in the state.

"In these difficult economic times, it is especially heinous for companies to bully and exploit financially strapped consumers with false threats and phony debts," McGraw said. "Our Office will continually strive to protect West Virginians from these coercive, unlawful, and threatening debt collection techniques."

The investigation

The investigation led to the signing of an "Assurance of Discontinuance." That requires DP to close all West Virginia accounts with a zero balance, notify credit-reporting bureaus to delete references to the debts, refund all amounts it collected, and release any judgments obtained against the state’s consumers.

The refunds and cancelled debts will go to 124 West Virginians.

The investigation began in January when consumers complaints the company was making phone calls falsely threatening arrest and harassing family members regarding a debt allegedly owed by a consumer. DP did not have a license to collect debts in West Virginia and McGraw’s investigation revealed a pattern of abusive collection methods. In many cases, McGraw says, the consumers owed no money.

Unlawful threats

In one case, he says a Grafton, WV, consumer was misled to believe that if she did not pay $3,000 to DP by the end of the day a warrant would be issued for her arrest. DP also contacted the consumer’s mother-in-law and falsely stated that representatives were waiting at the Taylor County Courthouse for the arrest of her daughter-in-law.

The company also inflated the alleged amount owed, upping it to $8,000 after specifying it as $5,987.10 in an email.

The lesson for consumers is to report any harassing actions by debt collectors to you state attorney general. Nothing can be done unless authorities no of the problem.

It's also a good idea to understand your rights when it comes to debt collectors. Learn about the Fair Debt Collections Practices Act here.

The feds have shut down another scam targeting immigrants -- this one involving calling cards. 

The Federal Trade Commission has halted the deceptive advertising claims of a company that markets prepaid phone cards by allegedly misrepresenting the number of calling minutes its cards provide -- and failing to make adequate disclosure of additional fees. The company agreed to halt its misleading claims, pending a trial in which the agency will seek to halt the deceptive claims permanently and force the company to give up its ill-gotten gains. 

The case against DR Phone Communications is part of a continuing FTC effort to address deceptive advertising and marketing practices in the prepaid calling card industry, which sells billions of dollars worth of cards a year -- many of them to immigrants who depend on them to call friends and family in other countries. 

Asians targeted 

The FTC charged that the DR Phone scheme targeted immigrant communities. Using brand names such as "Beautiful Asia," "Vietnam Best," and "Pearls of Africa," the cards were sold in convenience stores, groceries and kiosks across the country and on DR Phone's Website. 

According to the FTC, marketing material -- typically point-of-sale posters -- displayed brightly colored text bubbles touting calling minutes to a particular destination with a card of specified amount -- for example, "Philippines 70 min-per $5." 

Large letters at the top of the posters claimed, "No Fees," "No Connection Fee," and "No Maintenance Fee." Small print at the bottom of the posters made vague reference to fees without adequately disclosing what those fees would be. 

One disclosure simply stated "International calls made to cellular phones and calls via toll free numbers are billed at higher rate." without adequately disclosing what those higher rates would be. 

FTC tests 

The FTC bought and tested 169 of the company's cards. The agency’s complaint alleged that 100 percent of the tested cards failed to deliver the number of minutes advertised. The worst performing card delivered less than one percent of the advertised minutes. On average, the 169 cards delivered only 40.42 percent of the advertised time. 

The FTC charged that the deceptive claims about the calling minutes and the failure to disclose adequately the additional fees and charges violate federal law. As part of an agreement between the defendants and the FTC, the court ordered a temporary halt to the illegal practices, pending trial. 

Defendants named in the FTC complaint are DR Phone Communications, also doing business as Drphonecom.com, and David Rosenthal.

Level playing field