Current Events in September 2012

Many consumers spend good money subscribing to services that supposedly give them factual information about their credit score. But a study released today by the Consumer Financial Protection Bureau (CFPB) finds that about one out of five consumers would likely receive a meaningfully different score than would a lender.

“This study highlights the complexities consumers face in the credit scoring market,” said CFPB Director Richard Cordray. “When consumers buy a credit score, they should be aware that a lender may be using a very different score in making a credit decision.”

The Dodd-Frank Wall Street Reform and Consumer Protection Act directed the CFPB to compare credit scores sold to creditors and those sold to consumers by nationwide credit bureaus and to determine whether differences between those scores harm consumers.

Today’s study analyzes credit scores from 200,000 credit files from each of the following credit bureaus: TransUnion, Equifax, and Experian.  It is a follow-up to a study the Bureau released in July 2011 that described the credit scoring industry, the types of credit scores, and the potential problems for consumers that could result from differences between the scores they purchase and the scores creditors use.

The study released today determined:

• One out of five consumers would likely receive a meaningfully different score than would a creditor: When consumers purchase their score from a credit bureau, the score they receive may be meaningfully different from the score that a lender would consult in making a decision.A meaningful difference means that the consumer would be likely to qualify for different credit offers – either better or worse – than they would expect to get based on the score they purchased. 

• Score discrepancies may generate consumer harm:  When discrepancies exist between the scores consumers purchase and the scores used for decision-making by lenders in the marketplace, consumers may take action that does not benefit them.  For example, consumers who have reviewed their own score may expect a certain price from a lender, may waste time and effort applying for loans they are not qualified for, or may accept offers that are worse than they could get.

• Consumers unlikely to know about score discrepancies:  There is no way for consumers to know how the score they receive will compare to the score a creditor uses in making a lending decision.  As such, consumers cannot exclusively rely on the credit score they receive to understand how lenders will view their creditworthiness.

What to do

The Bureau recommends that consumers consider the following in evaluating the credit score they receive:

• Shop around for credit.  Consumers benefit by shopping for credit.  Regardless of the scores different lenders use, they may offer different loan terms because they operate different risk models or face different competitive pressures.   Consumers should not rule out of seeking lower priced credit because of assumptions they make about their credit score.  While some consumers are reluctant to shop for credit out of fear that they will harm their credit score, that negative impact may be overblown.  Inquiries generally do not result in a large reduction in a consumer credit score. 

• Check the credit report for accuracy and dispute errors.  Credit scores are calculated based on information in a consumer’s credit file.  Inaccurate information may be the difference between a consumer being approved or denied a loan.  Before shopping for major credit items, the Bureau recommends that consumers review their credit files for inaccuracies.   Each of the nationwide credit bureaus is required by law to provide credit reports for free to consumers who request them once every 12 months. 

The Bureau will begin supervising consumer reporting agencies as of September 30, 2012.  The CFPB’s supervisory authority will cover an estimated 30 companies that account for about 94 percent of the market’s annual receipts. 

The Bureau’s examiners will be looking to verify that consumer reporting companies are complying with federal consumer financial law, including that the companies are using and providing accurate information, handling consumer disputes, making disclosures available, and preventing fraud and identity theft.

It's no secret that Apple and Samsung are locked in a titanic struggle. Apple just gained the upper hand when a jury found that Samsung violated a number of Apple patents with its smartphones and tablets.

The jury awarded Apple more than $1 billion in damages and the court is now considering Apple's request that a number of Samsung devices be banned from the market. While the court is deciding, Samsung is airing a TV commercial for one of the devices Apple seeks to squash -- the Galaxy S III -- and gets in some licks at Apple and its iPhone acolytes.

The spot, entitled "The Next Big Thing Is Already Here," seeks to lampoon Apple customers for lining up for hours last week in order to be the first to purchase the new iPhone 5.

"I heard you have to have an adapter to use the dock on the new one," says one young man waiting patiently in line.

"Yeah, but they make the coolest adapters," responds another young man.

Everything we didn't get last year

"This year, we're finally getting everything we didn't get last year," says another young man waiting in line, a reference to the fact that Apple updates the iPhone just once a year, and that last year's iPhone 4S had little in the way of advancements.

The iPhone 5 has a larger screen and runs on the 4G LTE network -- something that Android phones, in particular Samsung phones, have had for some time. When a former iPhone owner shows up to greet his friends on line, they try to convince him of what he's missing by not getting the new iPhone.

"This one's 4G," says a friend.

"We've had that for a while," the Samsung owner responds.

It's hard to imagine a current iPhone customer will be swayed to switch to Samsung by being portrayed as a clueless poser in TV ads. But who knows? Watch the ad below. 

Hey, let’s walk the grounds of memory lane a little bit. If you remember, before there was something called Facebook there was something called Myspace.

Before people were able to Tweet their latest thoughts or life-altering epiphanies there was still Myspace. Far before Instagram became popular and Internet radio sites like Pandora or Spotify lived on everybody’s mobile device Myspace existed.

Then all of a sudden everything went black for the social networking company, and Myspace quickly went from a trendy happening-now company, to a non-trendy remember-when company.

New owners

Last year Myspace was sold to the advertising group Specific Media for about $35 million, and since then mum's been the word when it came to just how the social site would be reinventing itself. But just this week some brand new info on the site has been released.

Singer and actor Justin Timberlake, who currently owns a stake of Myspace, tweeted a video link showing the site's new appearance and functionality, and quite honestly it looks pretty darn good.

The new site allows users to have all of their information like personal music selections and Myspace friends, to be accompanied with big bright sexy pictures to provide a big dose of eye candy as one navigates.

And for musicians who post their own music, the site not only gives you listening stats, but it also pulls up a global map so the artist can see where in the world fans are actually listening. It even brings up the picture profile of the listener so you can visit their page and communicate with them if you choose.

In addition, it seems like Myspace has fully conceded to the new generation of social sites, as it suggests you log in by using your Facebook and Twitter information.

It will then suggest music and friends for you to follow based on your Facebook or Twitter profiles.

Side glides

What’s also cool is that upon clicking the web pages it seems to glide from side to side, instead of the old version where pages just boringly popped open after choosing a link. There also seems to be a “discover” link that can be selected, where pages of new music and events are colorfully presented, and once you access those pages you can bring them over to your profile.

See, Myspace was a regular destination for web surfers as it was one of the first sites to successfully center around music, making it a website of necessity for music lovers, casual music fans, and musicians alike.  In fact, many people and companies used Myspace as their official website, as it contained all of the informational and visual components that a personal website needs.

But ironically, where Myspace failed is in the area of music, as that was pretty much its most used feature. As other social sites perpetually improved their music offerings and combined it with dollops of technological sophistication, Myspace kind of fell into a cavernous hole of complacency.

Of course this was slightly before the time that most people knew just how fast social network sites could come and go. And it’s safe to assume at the beginning of MySpace’s Internet onslaught, no one saw Facebook, Spotify or Twitter becoming what they are now.

Too late?

But is it too late for Myspace? Will people return to a site that’s not really considered cool or happening anymore? And yes I used the word “happening,” as the newest group of slang words which signify prominence can easily elude you as you grow older.

There was time not that long ago, where having a Myspace address made one look like a player in either social areas or in the business world, but now if you’re still using the site as a profile destinations it could look like you’re out of the loop and not completely up on what’s hot and current.

The biggest challenge for Myspace will be to regain a bit of its cultural relevance, and it looks like the company is off to a good start with its updated and colorful look. And attaching itself to sites like Facebook and Twitter definitely can’t hurt the site's re-launch.

As of now Myspace hasn’t changed over to its new face and body yet, as I logged in and saw the same old page and set-up. A launch date hasn’t yet been set for the new version of the social networking site either, and a video currently circulating the Internet is the first phase of the companies marketing push.

It’s rumored that Timberlake is trying to recruit some of his famous chums in the music and acting worlds to sign on with the site and give it some much needed advertising push, but just which artists will be involved has been kept under wraps for the time being, which is Timberlake’s idea to build levels of anticipation for the site.

“I know some artists. For me to reach out to the ones that I know, I think for now to be a beta tester, as well,” he told The Hollywood Reporter. “I want them to feel a sense of comfortable anonymity to that.”

But we’ll see if a beautiful design and celebrity co-signers will be enough to bring Myspace back to being a popular website destination. The company certainly has its work cut out for them, but at least by the looks of it, people are already starting to once again pay attention.  

Can you see yourself driving a plug-in electric or hybrid vehicle? Edmunds.com, the automotive site, can. It's out with a report predicting alternative fuel vehicles will make up five percent of the U.S. fleet by the 2015 model year.

Hybrids currently make up about three percent of vehicles on U.S. highways.

"One of the reasons these vehicles haven't quite taken off yet is that there just aren't enough choices that appeal to shoppers," said Edmunds.com Green Car Editor John O'Dell. "But the competitive landscape promises to expand significantly over the next few years, and it's likely that a vehicle with some type of electric drive or alternative fuel will wind up on your consideration list the next time you shop for a new vehicle."

43 new vehicles in the pipeline

O'Dell says at least 43 new hybrid, plug-in hybrid, battery-electric, diesel and fuel-cell electric vehicles will be introduced to the U.S. market by the 2015 model year. That's enough choice, he says, to draw consumers' attention. High gasoline prices will make them more attractive.

Toyota's Prius is probably the vehicle most associated with hybrids while the Chevy Volt gets the most attention among plug-ins. But they're about to get a lot more competition.

Chevrolet and Ford are expected to introduce the most new "alt-drive" vehicles through the 2015 model year, with four each. Chevy's offerings will be headlined by its popular Cruze model, which will be introduced as a diesel version in 2013 and as a plug-in electric hybrid in 2014.

Ford, meanwhile, will offer its C-Max Energi and C-Max Hybrid by the end of this year. The Fusion Energi will be available early next year.

Another offering from Toyota

Toyota isn't just resting on the Prius. The Japanese carmaker has introduced the 2012 RAV4 EC. It's a cooperative effort by Toyota and Tesla Motors and combines the body and interior of Toyota's popular small crossover with the battery and electric motor system found in the new Tesla Model S sedan.

At first you'll only find it in California with just one trim level and with no options. The EV will cost $50,610 before any tax incentives or government rebates.

BMW is introducing a 2013 EV four-passenger subcompact. Edmunds says the lithium-ion battery pack will deliver a range close to 93 miles and funnel sufficient power to the 170-hp electric motor for a 0-60-mph acceleration time of just under 8 seconds. BMW has promised a two-cylinder gasoline generator as an option to extend cruising range.

VW's first hybrid

Volkswagen is rolling out a 2013 Jetta Hybrid, hitting showrooms before the end of this year. It will be VW's first hybrid and boast a new, 150-hp turbocharged 1.4-liter engine, a 27-hp electric motor that draws power from a lithium battery and a seven-speed dual-clutch automated manual transmission.

The Jetta Hybrid is expected to get an EPA fuel economy rating of around 45 mpg combined.

Mitsubishi is planning a plug-in hybrid version of its Outlander SUV for the 2014 model year. It will feature an all-wheel-drive system powered by electric motors, plus a gasoline engine that will deliver several hundred miles of range and allow for continuous operation even when there's no charger available for the battery pack.

Amazon recently introduced a new generation of Kindle Fire devices at price points starting at $499, a move that seems to have been generally well received by technology consumers.

While the new Kindle HD devices won't ship until November 20, you can still buy the original first generation Kindle Fire. To make it more attractive, Amazon has dropped the price of this seven-inch tablet from $199 to $159.

But the deal might not be as good as it appears. Now, when you purchase the original Kindle Fire, it no longer comes with a charger that plugs into a wall electrical outlet. Previously, these chargers were included with the Kindle Fire.

Instead of the charger the $159 device comes with a USB cable, that connects the unit to a computer. But even Amazon concedes that's a less-than-satisfactory answer.

Included charging tool isn't recommended

"Charging your Kindle Fire through your computer is not recommended," the company says on its website. "The power from a USB port on your computer is insufficient to fully charge your Kindle Fire."

Some consumers have noticed. A poster, going by the handle "Old School," complained in an Amazon review.

"My seven-year old son has the 1st gen Kindle Fire, and we've been very happy with it," she wrote. "My five-year old wanted one too, so we just purchased the Kindle Fire for her. We've had it now for three days, and while it's still the same great product, we were disappointed to find after receiving the device that the Fire comes WITHOUT a wall charger."

Walmart advertises a Kindle Fire charger kit, which includes an auto charger, for $20. Some smartphone chargers may also work with the Kindle Fire.

But if you order one of the old units for $159, you'll have to find a way to charge it, one way or the other.

If you lost your home to foreclosure between January 1, 2008 and December 31, 2011, you may be eligible for a settlement payment under the $25 billion national mortgage foreclosure settlement.

Eligible borrowers had mortgages serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo, the servicers that agreed to the settlement with the federal government and attorneys general of 49 states and the District of Columbia.

The settlement earmarked approximately $1.5 billion in payments for 2 million borrowers nationwide. The actual payment amount will depend upon the total number of borrowers who decide to participate. Payment checks are expected to be mailed in mid-2013.

Last week, the national settlement administrator mailed notification postcards to eligible borrowers across the nation. Eligible borrowers should complete the claim form and return it as soon as possible in the envelope provided, or file the claim form online at www.nationalmortgagesettlement.com. The deadline for all claims is January 18, 2013.

Simple to complete

The claim forms are simple to complete. Borrowers who have questions or need help filing a claim should contact the settlement administrator, toll-free, at 866-430-8358, or send questions by email to administrator@nationalmortgagesettlement.com. The information line is staffed Monday through Friday from 8 a.m. to 8 p.m. EST.

Eligible borrowers do not need to prove financial harm to receive a payment, nor do they give up their rights to pursue a lawsuit against their mortgage servicer or to participate in the Independent Foreclosure Review Process being conducted by federal bank regulators. More information about that program is available at www.independentforeclosurereview.com.

Eligible borrowers may receive payment from this settlement even if they participate in another foreclosure claims process. However, any payment received may reduce payments that a borrower may be eligible to receive in any other foreclosure claim process or legal proceeding.

Borrowers who believe they may qualify for a payment, but did not receive a notice because they have moved, should contact the settlement administrator, toll-free, at 866-430-8358, or send an updated address by email to administrator@nationalmortgagesettlement.com. The line is staffed Monday through Friday from 5 a.m. to 5 p.m. PST.

Watch for scams

Officials are warning all homeowners to be aware of settlement-related scams. Do not provide personal information or pay money to anyone who calls or emails and claims to provide settlement-related assistance. The offical claim form does not ask for personal financial information. 

The national settlement followed state and federal investigations, which alleged that the five mortgage servicers routinely signed foreclosure-related documents outside the presence of a notary public and without personal knowledge that the facts contained in the documents were correct. This civil law enforcement action also alleged that the servicers committed widespread errors and abuses in their foreclosure processes.

The settlement resulted in broad reform of the mortgage servicing process, as well as financial relief for borrowers who are still in their homes via direct loan modification relief, including principal reduction.

Here's the latest entry in the digital movie and TV series sweepstakes: Barnes & Noble. It's unveiling its new Nook Video this fall, featuring newer hit movies, classic films, and original TV shows from major studios including HBO, Sony Pictures Home Entertainment, Starz, Viacom, and Warner Bros. Entertainment, plus movies from The Walt Disney Studios.

Barnes & Noble says its "expansive digital collection" of popular films and television shows will be available anywhere on Nooks, TVs, tablets, and smartphones. It's a major challenge to Netflix, Amazon, Apple and other online distributors of digital content.

Nook Cloud

Videos that are streamed and downloaded from the Nook Store will be stored safely and securely in the Nook Cloud, so Nook Video content can be enjoyed on Nooks and other devices via soon-to-launch free Nook Video apps, Barnes & Noble said. As with the Nook Reading apps, Nook Video apps will seamlessly work together so customers can pick up watching right where they left off on any of their connected devices.

Nook Video will also integrate a customer’s compatible physical DVD and Blu-ray Disc purchases and digital video collection across their devices through UltraViolet. Customers will be able to link their UltraViolet accounts to the Nook Cloud allowing them to view their previously and newly purchased UltraViolet-enabled movies and TV shows across Nook devices and Nook Video apps, as well as through third party applications. 

“As one of the world’s largest retailers of physical video discs and digital copyrighted content, our new Nook Video service will give our customers another way to be entertained with a vast and growing digital video collection, as part of our expansive Nook Store,” said William J. Lynch, Chief Executive Officer of Barnes & Noble. “The launch of our new digital video service with our long-time studio partners allows us to bring award-winning current and classic movies, TV shows, documentaries and more to millions of customers’ screens, coming soon.”

“With the great success of the Nook tablet and Barnes & Noble’s in-store promotional efforts, we are very excited to bring our acclaimed programming to the Nook Store,” said Henry McGee, President, HBO Home Entertainment. “Nook Video offers a customized and convenient way for entertainment enthusiasts to own award-winning shows such as Game of Thrones®, Boardwalk Empire®, Girls(SM), and True Blood® and enjoy them across a multitude of devices.”

Seven rent-to-own companies and a software design firm have agreed to settle Federal Trade Commission charges that they spied on consumers using computers that consumers rented from them, capturing screenshots of confidential and personal information, logging their computer keystrokes, and in some cases taking webcam pictures of people in their homes, all without notice to, or consent from, the consumers. 

An earlier class action lawsuit against Aaron's made similar claims. 

The software design firm collected the data that enabled rent-to-own stores to track the location of rented computers without consumers’ knowledge according to the FTC complaint.  The settlements bar the companies from any further illegal spying, from activating location-tracking software without the consent of computer renters and notice to computer users, and from deceptively collecting and disclosing information about consumers.  

“An agreement to rent a computer doesn’t give a company license to access consumers’ private emails, bank account information, and medical records, or, even worse, webcam photos of people in the privacy of their own homes,” said Jon Leibowitz, Chairman of the FTC.  “The FTC orders today will put an end to their cyber spying.”

“There is no justification for spying on customers.  These tactics are offensive invasions of personal privacy,” said Illinois Attorney General Madigan.

The FTC named DesignerWare, LLC, a company that licensed software to rent-to-own stores to help them track and recover rented computers.  The FTC also reached settlements with seven companies that operate rent-to-own stores and licensed software from DesignerWare, including franchisees of Aaron’s, ColorTyme, and Premier Rental Purchase.

Kill switch

According to the FTC, DesignerWare’s software contained a “kill switch” the rent-to-own stores could use to disable a computer if it was stolen, or if the renter failed to make timely payments. DesignerWare also had an add-on program known as “Detective Mode” that purportedly helped rent-to-own stores locate rented computers and collect late payments.  DesignerWare’s software also collected data that allowed the rent-to-own operators to secretly track the location of rented computers, and thus the computers’ users.

When Detective Mode was activated, the software could log key strokes, capture screen shots and take photographs using a computer’s webcam, the FTC alleged.  It also presented a fake software program registration screen that tricked consumers into providing their personal contact information.

Data gathered by DesignerWare and provided to rent-to-own stores using Detective Mode revealed private and confidential details about computer users, such as user names and passwords for email accounts, social media websites, and financial institutions; Social Security numbers; medical records; private emails to doctors; bank and credit card statements; and webcam pictures of children, partially undressed individuals, and intimate activities at home, according to the FTC.

Unfair and illegal

In its complaint against DesignerWare, the FTC charged that licensing and enabling Detective Mode, gathering personal information about renters, and disclosing that information to the rent-to-own businesses was unfair, and violated the FTC Act.  The agency also alleged that DesignerWare’s use of geolocation tracking software without first obtaining permission from the computers’ renters and notifying the computers’ users was unfair and illegal.  It charged that providing the rent-to-own operators the means to break the law was unfair, and providing the fake registration forms to obtain consumer data was deceptive. 

The seven rent-to-own companies were charged with breaking the law by secretly collecting consumers’ confidential and personal information and using it to try to collect money from them.  Use of the bogus “registration” information was deceptive, the FTC alleged. 

What a great idea: Buying the medicine you need online. It can save time and gasoline by cutting out that drive to the drug store. But it's not all upside. 

Since 2008, hundreds of people who have purchased drugs over the Internet or by phone have unwittingly exposed themselves to extortion by individuals posing as Food and Drug Administration (FDA) agents. 

Despite continuing investigations and arrests by FDA, the Drug Enforcement Administration and the Immigrations and Customs Enforcement's, Homeland Security Investigations, such scams are hard to trace and eliminate. And -- according to Philip Walsky, special agent in charge at FDA's Office of Criminal Investigations (OCI) -- they are likely to continue. 

You've been warned 

FDA has warned in the past that consumers face an increased risk of purchasing unsafe and ineffective drugs from Websites operating outside the law, and about the danger that personal data can be compromised. 

These criminals are getting personal information from transactions with individuals buying drugs online or by telephone, or from medical questionnaires frequently sought by illegal online websites. Personal information can also turn up on customer lists obtained by criminals. These lists can contain tens of thousands of names and a great deal of self-reported information, including names, addresses, telephone numbers, Social Security numbers, dates of birth, purchase histories and credit card account numbers. 

Here's how the scam works: Someone will call you and identify him or herself as an FDA special agent or another kind of law enforcement official. You'll be told that purchasing drugs over the Internet or telephone is illegal and be threatened with prosecution unless a fine or fee -- ranging from $100 to $250,000 -- is paid. If you refuse to pay up, the caller threatens to search your properties, arrest or deport you, put you in jail and even harm you physically. 

Just hang up 

Since the scams first came to FDA's attention, Walsky and other OCI staff have handled dozens of calls from alarmed consumers. "I tell them it's a scam," Walsky says, "and that the best thing they can do is ignore the caller and hang up." 

Walsky and others who have spoken to concerned consumers also assure that no federal official would ever contact a consumer by phone and demand money or any other form of payment. As for actual physical danger, no known victim has ever been approached in person. Most of the fraudulent callers are actually based overseas, Walsky says. 

The call is likely a scam if the so-called agent directs you to send the money by wire transfer to a designated location, usually overseas, and if you are warned not to call an attorney or the police. In fact, FDA special agents and other law enforcement officials are not authorized to impose or collect fines imposed for criminal acts. Only a court can take such action, with fines payable to the U.S. Treasury. 

According to Walsky, some fraudulent callers have a "veneer of legitimacy" about them. Like many telephone solicitors for illegal prescription medications, he says, they're based overseas and use Voice Over Internet Protocol (VOIP) telephone numbers, which enable extorters to select phone numbers with specific area codes, and change numbers frequently. 

Some even go to the trouble of using the Internet to find names of actual FDA law enforcement personnel, Walsky says. And they are adept at exploiting people's fears. 

Stopping the calls 

Walsky advises victims of these scams to change whatever phone number(s) the caller used to contact them in the first place, and to stop buying drugs online unless they know the Website is trustworthy. If you have purchased medication online or via telephone, you may also want to alert your credit card company and make sure that your account is up to date, and that no suspicious charges have been made against your credit card.

Victims can report their experience to FDA here. 

Trustworthy Websites 

Some online Websites sell prescription and over-the-counter (OTC) medications that may not be safe and can put your health at risk, including counterfeit versions of FDA-approved medications. When buying medications online, it helps to know the following signs of a trustworthy Website: 

• It's located in the United States and provides a physical street address.
• It's licensed by the state board of pharmacies where the Website is operating. A list of these boards is available at the website of the National Association of Boards of Pharmacy (NABP).
• It has a licensed pharmacist available to answer your questions.
• It requires a prescription from your licensed health care professional for prescription medicines.
• It provides contact information and allows you to talk to a person if you have problems or questions.

In addition, many Websites display the Verified Internet Pharmacy Practice Site (VIPPS) seal. The VIPPS seal verifies that an Internet pharmacy is safe and meets state licensure requirements and other NABP requirements.

If you're allergic to milk and soy, you'll want to pay attention to this alert from Hanover Pike Enterprises of Hampstead, MD. 

The company is notifying customers that its 8 ounce and 4 ounce jars of Hot Pepper Jelly and Green Pepper Jelly and its 4 ounce and 9 ounce jars of Blackberry Brandy Jam and Peach Brandy Jam may contain undeclared milk and soy. 

People who have allergies to dairy products may run the risk of allergic reactions if they consume these products. These items were distributed nationwide through retail stores and via the company website under the label “Jill’s Jams Mixes and More” or “Jill’s Jams and Jellies”. No illnesses have been reported to date in connection with this situation. 

This notification was initiated after it was discovered that the products containing milk and soy were distributed in packaging that did not list milk or soy as ingredients. The use of milk and soy as ingredients has been discontinued. 

Retail stores who have these products in inventory will be furnished with an additional label indicating these allergens as ingredients. 

Consumers with dairy or soy related allergies, who have purchased these products may return them to their place of purchase or contact the company at 410-239-7433 between the hours of 9-4 weekdays.

Work-at-home schemes have always had appeal but these days they may have an even stronger pull on consumers who want to believe they can earn a good income by starting a home-based business or by working from home.

Scammers take advantage of this enthusiasm to separate consumers from large chunks of cash. New York Attorney General Eric Schneiderman has shutdown two websites as part of his investigation of a “work at home” scam involving a fake mystery shopper program.

Mystery shoppers are real. Market research firms use them to go into stores and file reports on customer service. It's a part-time job and it doesn't pay particularly well. However, scammers have made it sound glamorous and highly-paid, making it easier to recruit victims into their schemes.

Schneiderman says that's exactly what a company operating as T. Crefideal Corp did. He charges the company lured consumers into becoming mystery shoppers to gather information anonymously about the customer service of a particular store, but instead of getting paid, were duped into paying the scammers thousands of dollars.

How it worked

In this version of the scam, consumers were asked to log into the company's Website with a job number. They were then given an assignment as a mystery shopper to evaluate Western Union.

The scammer sent a counterfeit check for $2,000 the victim, who was told to wire back $1,700 to the scammer. That was to be the "test," to see how Western Union handled the transfer.

First, of course, the victim had to deposit the phony check in his bank account and write a check for $1,700 to Western Union. The bank accepted the counterfeit check but, within a week or so, discovered it was bogus and withdrew $1,700 from the victim's account to make up for it.

Western Union sent the $1,700 from the victim to the scammer, so the whole thing amounted to a $1,700 transfer from victim to scammer. Because the money was wired through Western Union, there was no way to trace or retrieve it.

"These scams are particularly insidious because they target individuals looking for ways to bolster their income in today's challenging job climate," Schneiderman said.

How to avoid

You can avoid these schemes by being very suspicious of work-at-home opportunities that come to you unsolicited. If it were a real money-making opportunity, it would be very hard to get. Promises of easy money are always scams.

There is no legitimate reason for someone to send you a large check and ask you to cash it and send most of it back through Western Union. Any time you are asked to wire money, your scam alarm should start ringing.

Legitimate mystery shoppers are generally paid after the job is completed and they have filed their report -- they aren't paid up front. They usually make small purchases with gift cards provided by the employer.

The best way to avoid the scams, of course, is to avoid any and all work-at-home enterprises. There's usually a big "catch," even if it isn't a scam, and the only person making money is the company selling the work-at-home idea.

Although cigarette commercials have been banned from radio and television for more than 40 years, a lot of money is still being spent to advertise tobacco products. But not as much as there used to be. 

In fact, the amount of money spent on cigarette advertising and promotion by the largest U.S. cigarette companies declined from $9.94 billion in 2008 to $8.53 billion in 2009, and again to $8.05 billion in 2010, according to a report released by the Federal Trade Commission (FTC). 

The FTC has issued the Cigarette Report periodically since 1967, and another one, the Smokeless Tobacco Report, periodically since 1987. 

Ad, promotion spending drop 

The largest spending category in the Cigarette Report in both 2009 and 2010 was spending on price discounts paid to cigarette retailers or wholesalers in order to reduce the price of cigarettes to consumers. 

This category accounted for $6.67 billion, or 78.2 percent of total spending on advertising and promotion in 2009, and $6.49 billion, or 80.7 percent of that total, in 2010. 

The number of cigarettes sold or given away to wholesalers and retailers in the United States declined from 322.6 billion in 2008 to 290.3 billion in 2009, and to 282.0 billion in 2010. 

Smokeless spending drops 

According to the Smokeless Tobacco Report for the major manufacturers of smokeless tobacco products in the United States: 

• Their spending on advertising and promotion fell from $547.87 million in 2008 to $492.10 million in 2009, and again to $444.20 million in 2010.
• The dollar value of sales by these manufacturers fell from $2.76 billion in 2008 to $2.61 billion in 2009, then rose to $2.78 billion in 2010.
• The weight of smokeless tobacco sold fell from 119.90 million pounds in 2008 to 117.70 million pounds in 2009, and rose to 120.50 million pounds in 2010. 

The full Cigarette Report is available here and the Smokeless Tobacco Report can be found here.

You know the classic story: Boy meets girl. Boy falls for girl, girl falls for boy. Several years later girl gets bored with boy, boy gets bored with girl. Both of them call it quits.

This particular scenario happens a lot, and many times couples aren’t able to see boredom creeping towards their union -- which, if you let it, can snuff out any good relationship.

Usually when a couple first gets together, it’s all sunshine and rainbows and each day is filled with romantic hand-holding, while strolling together through a varied amount of activities and new adventures.

It's usually because one partner dabbles in the hobby of the other, and before you know it, both of you have a relationship filled with new activities and fresh experiences -- all while the both of you are hovering on cloud 10 in your newfound life together.

Then routine sets in and before you know it every night is filled with nights on the couch, feet on the ottoman, watching Jay Leno belt out yet another corny joke about a politician or the day’s events.

As deadly as infidelity

Well, according to two separate studies this particular kind of lifestyle can be as deadly to a relationship as infidelity. In fact, this type of daily routine can easily lead one to infidelity, researchers say.

The relationship and intimacy experts at Good in Bed, a company that conducts surveys among married and single couples, shows that 24 percent of people said they cheated on their mate simply because they were bored.

“Boredom is basically like an attack on our relationship’s immunity system -- once weakened we’re all the more susceptible to a cascade of ailments,” said relationship expert Ian Kerner.

After surveying 3,341 people in monogamous relationships, researchers found boredom crept in at different times and in many different ways.

According to the study results, 15.6 percent of couples said that once they went from dating to moving in together, relationship boredom soon followed. It was also revealed that 32.2 percent of couples said that once kids came into the fray much of the excitement between them and their partner diminished.

The study also showed that 13.8 percent of couples said boredom set in once they got married. Other reasons for boredom, according to the survey, were pregnancy (8 percent) and getting older (38.5 percent).

Sense of individuality

Relationship experts at Good in Bed suggest that couples have to maintain a strong sense of individuality in order to keep the relationship fresh. Many times all of the things that make us initially attracted to the other, like our hobbies and interests, get sucked into the relationship to the point of non-distinction.

This is a crucial error, according to relationship experts, as boredom is more likely to set in if each person in the relationship doesn’t make an effort to grow individually.

The folks at Good in Bed also say to find new things to discuss. For couples that have been together for a long period of time, it can be easy to run out of things to talk about.

Experts also say that just having the obligatory “how was your day” conversation can easily lead to boredom, and can eventually cause a feeling of indifference to how your partner’s day really went.

If you don’t continually add new shared hobbies, and try to learn new things together, say the Good in Bed experts, it can lead to depression and even infidelity.

Go easy on the TV

A separate study published in the September edition of Mass Communication and Society shows that couples who are heavy TV watchers are in danger of harming their relationship.

After researchers examined 390 married couples it was learned that not only does frequent TV watching increase boredom and make it easier for routine to set in, some of the shows that have romantic themes can slowly cause a person to have unrealistic expectations about their relationship.

Also, researchers found that couples making television their daily form of entertainment can slowly start to believe in the phony romantic portrayals, and start to compare their relationship with those on TV. This can mean doom for any couple, say the researchers.

“In this study I found that people who believe the unrealistic portrayals on TV are actually less committed to their spouses and think their alternatives to their spouse are relatively attractive,” said Dr. Jeremy Osborn, who is the author of the study.

“We live in a society that perpetually immerses itself in media images from both TV and the web, but most people have no sense of the ways those images are impacting them. The rate of marriage failure in the U.S. is not dropping, and it is important for people to have a sense of what factors are leading to the failure of so many relationships," he said. 

Last week both the U.S. Federal Trade Commission and the European Commission (EC) approved Universal Music Groups (UMG) takeover of EMI, making UMG even bigger giants in the music industry, now owning the catalogues of mega acts like the Beatles and Pink Floyd.

In the buyout that went for a cool $1.9 billion, UMG had to let go of some of its own major acts like Coldplay and the Gorillas, which was a stipulation  European regulators set in place to better ensure fair competition.

Chairman and Chief Executive Officer of UMG Lucian Grainge, was obviously thrilled at the closing of the deal, as he believes it will better allow his company to provide a much-needed jolt into the current music industry.

“It will enable us to continue to invest in more music, to create investment opportunities for the entire Universal group,” he told the Los Angeles Times in a recent interview. “It will give us the opportunity to work with entrepreneurs in different genres and it will give us a cushion through this crucial crossover period as we hurtle toward a primarily digital business.”

40%? No problem

The deal gave UMG ownership of 40 percent of the music industry, after the FTC voted 5-0 and said that approving the deal would not harm or threaten the level of competition within the music industry by any measure.

“Commission staff did not find sufficient evidence of head-to-head competition to conclude that the combination of Universal and EMI would substantially lessen competition, said Richard Feinstein, FTC’s bureau of competition director.

Critics of the merger disagree that music industry competition wouldn’t be threatened and say that it truly would negatively impact the consumer. And with now only three record labels in Sony, Warner Bros. and UMG controlling 90 percent of the industry, it could drive prices up for music buyers considerably.

Detractors also say the merger could harm the way digital music is licensed and distributed, which can also potentially damage the way consumers receive their tunes.

And now with UMG having the most power in the music industry, critics also say the deal could potentially allow the record label powerhouse to restructure digital music prices and impact how songs are able to be downloaded or shared.

Also, with one record label owning the lion’s share of the market place, it could  change the rules of  posting music to social networking pages and how we're able to use songs as ring tones.

Will streamers still be streaming?

Furthermore, music providers like Spotify, Jango, or Pandora could be forced to pay even costlier licensing fees, as all of these companies are currently agreeing to some hefty pricing to host the music they provide consumers.

The merger also gives fewer options for those subsidiary labels under UMG and those formerly under EMI, particularly in the way these smaller companies are able to sell and release music.

The deal also gives less wiggle room to independent and signed artists that want to negotiate or re-negotiate fair contractual terms. However the EC feels the provisions set in place will keep these potential occurences from ever happening.

“The Commission had concerns that the transaction, as initially notified, would have allowed Universal to significantly worsen the licensing terms it offers to digital platforms that sell music to consumers. To meet these concerns, Universal offered substantial commitments. In light of these commitments, the Commission concluded that the transaction would not raise completion concerns anymore,” it said.

The FTC gave no such stipulations and honored the merger as it was requested.

Opponents warn of negative impacts

Previously, ConsumerAffairs spoke to Jodie Griffin, an attorney for the watchdog group Public Knowledge based in Washington D.C, who is strongly opposed to the merger and feels it could harm the current way digital music is provided to the consumer.

And having fewer record labels compared to more of them, threatens to negatively impact both the music lover and the casual music consumer.

“This merger gives Universal increased incentive and ability to discriminate against digital music services that challenge their business models,” she said. “We think that the FTC should have done more to protect competition in the U.S.”

The Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB) have ordered Discover Bank to refund approximately $200 million to more than 3.5 million consumers and pay a $14 million civil money penalty.  This action results from an investigation started by the FDIC, which the CFPB joined last year. 

The joint investigation concerned deceptive telemarketing and sales tactics used by Discover to mislead consumers into paying for various credit card “add-on products” – payment protection, credit score tracking, identity theft protection, and wallet protection.

The agencies jointly determined that Discover engaged in deceptive telemarketing tactics to sell the company’s credit card add-on products.  Payment Protection was marketed as a product that allows consumers to put their payments on hold for up to two years in the event of unemployment, hospitalization, or other qualifying life events. 

Discover also sold its Credit Score Tracker, designed to allow a customer unlimited access to his or her credit reports and credit score.  The third product wasIdentity Theft Protection, which was marketed as providing daily credit monitoring. 

Lastly, Discover’s Wallet Protection product was sold as a service to help a consumer cancel credit cards in the event that his or her wallet is stolen.

Telemarketing scripts

• Misled about the fact that there was a charge for the products: Discover’s telemarketing scripts often used language implying that the products were additional free “benefits,” rather than products for which a fee would be applied to their accounts. 

• Misled about whether they had purchased the products:The telemarketing scripts frequently suggested that consumers would not be charged for the products until after having a chance to review printed materials from Discover.  Discover, however, did not provide consumers with the information until after Discover had already initiated the consumer’s purchase of a product.

• Enrolled without their consent:Discover representatives processed the add-on product purchases without some consumers’ consent.  These consumers were then charged for the product on their Discover card.

• Withheld material information about eligibility requirements for certain benefits:Discover’s telemarketers typically did not disclose critical eligibility requirements for certain payment protection benefits, such as exclusions for pre-existing medical conditions and certain limitations concerning employment.

Discover agrees 

Under the order, Discover has agreed to: 

• Stop deceptive marketing: Discover is required to institute certain changes to its telemarketing of these products that are designed to ensure that these unlawful acts do not occur again.  Discover has also agreed to submit a compliance plan to the FDIC and the CFPB for approval, and to take specific corrective actions related to the products. 

• Pay restitution to consumers who purchased the products: Discover will pay approximately $200 million in restitution to more than 3.5 million consumers who were charged for one or more of the products between December 1, 2007 and August 31, 2011.  Generally, all consumers affected by Discover’s deceptive practices regarding these products, except those who affirmatively made use of Payment Protection, will receive restitution, with amounts varying depending on when they purchased, and how long they held, the add-on products.  All consumers will receive at least 90 days’ worth of fees paid (minus any refunds they have already received), with approximately 2 million consumers receiving full restitution of all of the fees they paid (minus any refunds they have already received).

• Provide refunds or credits without any further action by consumers: Consumers are not required to take any action to receive their credit or check. If an affected consumer is still a Discover customer, he or she will receive a credit to his or her account.  If an affected consumer is no longer a Discover credit card holder, the consumer will receive a check in the mail or have any outstanding balance reduced by the amount of the refund. 

• Submit to an independent audit: Compliance with the restitution terms of the order will be assured through the work of an independent auditor, who will report to the FDIC and the CFPB on Discover’s compliance with the joint FDIC-CFPB Consent Order.

• Pay a $14 million penalty: The FDIC and the CFPB imposed civil money penalties of $14 million.  Discover will pay $7 million of that penalty to the U.S. Treasury and $7 million to the CFPB’s Civil Penalty Fund. 

Video games are often criticized for being sedentary and too violent. The violent part is still open for debate but a British study lends support to claims that more active video games help kids burn energy, which can promote fitness and fight obesity.

The results are similar to those reported in a 2008 study which found that kids who play an active video game burn more than four times as many calories per minute than those playing a seated game. 

Researchers found that, compared with rest and sedentary video game play, active video gaming with dancing and boxing were associated with increased heart rate, oxygen uptake and energy expenditure. The study of 18 school children in England was published Online First by Archives of Pediatrics & Adolescent Medicine, a JAMA Network publication.

Low levels of physical activity have been linked to obesity. Active video game playing compared with traditional sedentary video game playing encourages more movement and could help children increase their physical activity levels, according to the study background.

Stephen R. Smallwood, M.Sc., and colleagues from the University of Chester, England, examined the physiologic responses and energy expenditure of active video gaming using a video game with a webcam-style sensor device and software technology that allows the player to interact directly without the need for a game controller, the authors explain in the background. The study included 10 boys and eight girls ages 11 to 15 years. 

“Significant increases were observed in heart rate, VO₂ [oxygen uptake] and energy expenditure during all gaming conditions compared with both rest and sedentary game play,” the authors comment.

The games, Dance Central and Kinect Sports Boxing, increased energy expenditure by 150 percent and 263 percent, respectively, above resting values and were 103 percent and 194 percent higher than traditional video gaming, according to the study.

“Although it is unlikely that active video game play can single-handedly provide the recommended amount of physical activity for children or expend the number of calories required to prevent or reverse the obesity epidemic, it appears from the results of this study that Kinect active game play can contribute to children’s physical activity levels and energy expenditure, at least in the short term,” the authors conclude.

Backpage.com started out in life as a reasonably simple idea: it would be the combined classifieds section for a group of magazines and websites owned by Village Voice Media.

But somewhere along the way, sales of used bicycles and Honda Civics got overtaken by prostitution ads. Soon the site was being condemned by attorneys general and parents' groups for enabling the sex trafficking of minors.

Just last month, three girls in Washington State said they were raped multiple times after pimps advertised them as prostitutes on Backpage.com, while in Washington, D.C., a man was sentenced to prison for running a prostitution ring that employed more than 50 prostitutes and generated more than $1.8 million from servicing clients in the D.C. area.

Craigslist suffered a similar fate and responded by eliminating its "Erotic Services" section. But Backpage soldiered on, sometimes arguing that while prostitution might be illegal, advertising personal services was protected by the First Amendment.

Now, a group of Village Voice senior managers have put together a leveraged buyout and will be taking over the group's publications, including Village Voice, LA Weekly, Phoenix New Times, SF Weekly and others. Ownership of Backpage.com will remain with the Village Voice Media, led by CEO Jim Larkin and Executive Editor Michael Lacey.

"Backpage.com, which is not included in the transaction, will become the centerpiece of a new online classified advertising company with business worldwide," Village Voice Media said in a statement provided by general counsel Elizabeth McDougall.

Backpage has claimed that most of the escort ads on the website are placed by consenting adults and that management makes an effort to screen ads for abuses, but anti-trafficking groups, law enforcement and advertisers have still called for the company to stop running escort ads entirely.

Some advertisers had dropped their ads in Village Voice publications because of petitions from consumers objecting to the erotic ads.

You remember that restaurant that nobody goes to anymore because it's gotten too popular? That's sort of what has happened to the iPhone. Apple says it sold more than 5 million of the new iPhone 5 in just three days, but Wall Street isn't impressed.

Industry analysts had been expecting sales of 6 to 10 million in the iPhone 5's opening weekend, so a "mere" 5 million? It's a bitter disappointment.

Maybe so but Apple says demand has been "incredible."

“While we have sold out of our initial supply, stores continue to receive iPhone 5 shipments regularly and customers can continue to order online and receive an estimated delivery date," said Tim Cook, Apple's CEO.

Of course, it's not just iPhones that are flying off the shelves. A report today says worldwide smartphone shipment will reach 1.7 billion units in 2017, driven by growth from China and other emerging markets.

Analyst firm Ovum said emerging markets last year accounted for 160 million of 450 million smartphones sold worldwide. China accounted for about 66 percent of smartphones sold in developing markets, it added.

You might not care about that, but the huge demand for smartphones worldwide is what supports the frantic pace of software and hardware development that enables Apple and other smartphone manufacturers to keep on keeping on with development of new and improved models on such an accelerated basis.

"China is at the center of smartphone development and adoption in emerging markets, with the whole ecosystem increasingly geared toward the production of feature-rich affordable devices. This new wave of affordable smartphones will have a major impact on consumer choice in emerging markets," said Shiv Putcha, Ovum principal analyst for telecoms emerging markets.

The iPhone 5 is already available in the U.S., Australia, Canada, France, Germany, Hong Kong, Japan, Singapore, and the UK, and will be available in 22 more countries on September 28 and more than 100 countries by the end of the year.

It was a rough weekend for travelers on American Airlines. The bankrupt company continued to cancel and delay flights, blaming a job action by its pilots.

The Allied Pilots Association (APA), however, denied the union was purposefully trying to disrupt American's flight schedule.

The airline, in the midst of bankruptcy proceedings, is trying to cut expenses by rewriting some union contracts. In the last week American has been forced to cancel or delay some 300 flights because of an increase in pilot-reported maintenance issues or pilots calling in sick.

The Allied Pilots Association, the collective bargaining unit for American pilots, denies any coordinated work action, saying pilots are only looking out for the welfare of the flying public.

Pilots' response

“American Airlines pilots are trained professionals who are responsible for flying their passengers safely around the world every day. The list of unresolved maintenance issues grows every day on each of the aging aircraft we operate, and we can’t ignore serious maintenance issues that could easily turn into safety risks. Our pilots will not compromise safety, ever,” said APA President Keith Wilson.

“American Airlines chose to reject our contract and the operational procedures and protections that go with it. Understandably, our pilots are taking a prudent and cautious approach in their operational decision-making process.”

Wilson said the maintenance issues that resulted in delayed or cancelled flights include a failed left engine generator, a lightening strike, a partial flight control failure and an inoperative weather radar test.

The Wall Street Journal reports only 55 percent of American flights arrived within 14 minutes of their published schedule on Saturday. It was the end to a very tough week for the airline.

Bad press

At midweek Scott McCartney, travel writer for the Wall Street Journal, urged consumers to avoid traveling on American.

“If you’re making travel plans for this fall, avoid American Airlines. American has become too unreliable,” McCartney wrote in his blog.

By the end of the week, American felt compelled to issue an apology to its customers.

"To our customers, we are sincerely sorry for the disruptions they've been feeling," said American spokesman Bruce Hicks. "We know our customers don't like it. We know they're irritated."

Cost-cutting

American is trying to negotiate contract reductions with its pilots as it seeks to trim expenses. The company's lone bright spot during the week was a better than expected response to its offer to flight attendants to take a buy-out package.

More than 2,200 flight attendants took the offer of $40,000 to anyone who would voluntarily leave the company. American says that means the company won't have to layoff any flight attendants as it tries to reorganize under bankruptcy.