Current Events in September 2012

Consumers are getting more money when they trade in or sell their cars. Industry insiders attribute it to a declining supply of used vehicles, strong consumer demand and improving vehicle quality.

"Higher trade-in equity on used vehicles will help facilitate the release of pent-up demand for a growing number of consumers making the jump off the sidelines and into a vehicle purchase," said Jonathan Banks, executive automotive analyst with the NADA Used Car Guide. "The equity position that consumers find themselves in today is better, and in some cases, dramatically better than it was three years ago."

It's accepted as fact that once you drive a new car off the lot, its value falls. But fortunately for consumers, it's not falling as far and as fast as it once did.

For example, in 2006 it took a consumer who purchased a new Ford Explorer XLT 4WD with a 6-cylinder engine 41 months of loan payments or nearly 3.5 years to reach a positive equity position. After 45 months of ownership, equity in the vehicle reached $2,895.

Three years later, in 2009 it took a consumer who purchased a new Ford Explorer XLT 4WD with a 6-cylinder engine just 26 months, or 15 months faster than the individual who bought in 2006 to reach an equity position. The equity stake after 45 months of ownership jumped to $6,830, or nearly $4,000 more than three years earlier.

Depreciation falling

NADA estimates that used-vehicle depreciation averaged just 13.1 percent from 2009 through 2011, or about nine percentage points better than the 22 percent average rate of loss recorded over the past 10 years.

That means the car in your garage is probably worth more than you think. That's good information to have if you are thinking of trading it in.

Of course, not every dealer may give you what you think your car is worth on a trade-in. Dealers are notorious for low-balling trade-ins in order to maximize their margin on the new car they are selling.

Even though it's more trouble, consumers will probably come out ahead if they try to sell their vehicle in a private sale before heading to the new car showroom, especially if they have a vehicle in high demand.

Just days after McDonald's installed menu boards with calorie information in all its restaurants, Walmart launched an effort it said would help consumers in the U.S. save money on more-nutritious foods and ultimately, live longer, healthier lives.

The corporate giants, both part of the Dow Jones Industrial Average, seem to have enlisted in the nation's war on obesity.

Walmart said it will partner with HumanaVitality, a subsidiary of Humana, to encourage people to eat better. The retailer said it will do its part by helping consumers save money by purchasing healthier foods.

Discounts on healthy food

Beginning on Oct. 15, more than one million HumanaVitality members who shop at Walmart will be eligible for the new program giving them a five percent savings on products that qualify for Walmart's Great For You icon, including fresh fruits, vegetables and low-fat dairy.

HumanaVitality is a program that rewards its members for making healthy lifestyle choices and reaching certain health goals. Walmart is providing one of those incentives by offering the price discount.

"Price is an important factor in incentivizing wellness in America,” said John Agwunobi, M.D., president of health and wellness, Walmart U.S. “By offering affordable, healthier foods, we will help make our customers healthier and reduce costs to our healthcare system as a whole. This represents preventative care in its purest form.”

Will others follow their lead?

The two initiatives, one by a America's largest fast food chain and the other by its largest retailer, marks a shift that experts say could make a difference, if others follow their example.

“The decision by McDonald’s to post the number of calories on their menu boards is a welcome first step toward taking accountability for the role of their products in shaping the health of Americans,” said Jeff Niederdeppe, a professor of communication in Cornell’s College of Agriculture and Life Sciences, whose research explores the effects of mass media and health news coverage on health behavior and social policy. “The decision shows leadership and is likely to promote similar changes from other large fast-food chains.”

But Niederdeppe says time will tell if the McDonald's move actually helps solve the obesity problem. Meanwhile, Ginny Ehrlich, chief executive officer of the William J. Clinton Foundation's Health Matters Initiative, calls the Walmart-HumanaVitality initiative an innovative approach.

"Walmart and HumanaVitality working together to help people make better decisions in the grocery aisle is a perfect example of how promoting healthier lifestyles can be a win for companies willing to explore new paths and, far more importantly, a great benefit for the health status of Americans," she said.

The U.S. Department of Labor's Employee Benefits Security Administration has announced a new 401(k) fee disclosure Website as a resource for consumers. 

The new site offers information on disclosures that -- for the first time -- will help workers with 401(k)-type retirement plans see what they are paying to invest their savings. It also includes new tips and tools on making smart retirement investment decisions. 

"Workers deserve to know how much they are paying for their retirement investments. These disclosures will help workers get the most for their money when it comes to their 401(k)-type retirement plans," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. "Fees can eat away at retirement savings. Access to good information can lead to an increase of tens -- even hundreds-of-thousands of dollars -- in retirement savings over the course of a career." 

Fees take a toll 

As a result of a rule published by EBSA, workers investing in 401(k)-type plans began receiving fee disclosures from their employers this summer, marking the first time that employers have been required to provide this information. Research has shown that paying just one percent more in fees can lead to a 28 percent decrease in a 401(k) account balance over the course of a career. 

The launch of the new site follows a Webinar featuring Gene Sperling, director of the National Economic Council and assistant to the president for economic policy; Hilda L. Solis, secretary of labor; and Borzi that offered advice on how to utilize the new disclosures. 

A recording of the Webinar is available here and a transcript will be available soon. 

Workers in employer-sponsored health and retirement benefit plans who have questions about benefits laws can contact an EBSA benefits advisor here or by calling 866-444-EBSA (3272).

The state of Iowa has reached an Assurance of Voluntary Compliance agreement with Platinum Online Group, Inc., a “buying” club based in Portland, Oregon, which does business as Premier Membership Clubs.

According to Iowa Attorney General Tom Miller, a number of consumers were signed up for the company's subscription “SavingPays Discount Club” without knowing it.

“A Des Moines consumer alerted us to this illegal conduct, when she complained to the Consumer Protection Division last summer that this operation had taken almost $100 from her checking account for a membership she had never intentionally enrolled in,” Miller said. “Adding insult to injury, the unauthorized withdrawal caused her account to be overdrawn, resulting in overdraft fees. We’ve seen far too many similar abuses among membership buying clubs, and were grateful to the consumer for bringing this latest one to our attention.”

Negative option

Platinum Online Group is not the first of these types of companies, which use the “negative option” marketing concept to sign up customers, to run afoul of Miller and other state attorneys general. A year ago another buying club, Vertrue, settled with Iowa and agreed to pay $30 million in restitution and penalties.

Platinum Online Group's penalty was relatively light. The company agreed to pay more than $26,000 to Iowans and to the state, and has also agreed to change its marketing practices. It did not admit to any wrong doing.

Miller said that enrollments in the “SavingPays” club occurred both online and over the phone. Online enrollments were often associated with a consumer’s visit to a website that offered to arrange for loans. Miller says the loan application was blurred with an unrelated membership enrollment, and Platinum used checking account information provided in a loan application to withdraw membership charges directly from the consumer’s bank account.

Monthly fee

Once enrolled in SavingPays, Platinum charged consumers an initial fee of $99.49, followed by monthly $14 charges until the consumer contacted the company to cancel. Membership in SavingPays purported to provide discounts on shopping, dining, and entertainment.

“It is becoming more and more common that consumers are unwittingly charged membership fees as a result of an unrelated transaction,” Miller said. “We do what we can to make these enrollments more transparent and to prevent unauthorized charges, but consumers -- like the Iowan who complained in this case -- are the first line of defense.”

Protecting yourself

How do you avoid inadvertently signing up for some kind of buying club that carries a monthly fee? The best way is to decline any and all “free trial offers” or “special instant discounts” as part of an online purchase.

Examine your credit card bills every month, your checking account and debit card statements, other financial accounts and phone bills. Watch for unauthorized charges, and dispute them at once, in writing.

Also, beware of cashing a check that comes in the mail with a “free trial offer.” The fine print may obligate you to future payments.

Unfortunately for consumers, lots of things are going up in price. However, the natural gas to heat their homes and generate their electricity isn't one of them.

Because of huge gas reserves in North America and the increase in drilling and exploration, the price of this energy source has steadily dropped. That decrease in price is reflected in the J.D. Power and Associates survey that measures customer satisfaction with gas utilities.

The study, now in its 11th year, measures residential customer satisfaction with gas utility companies across six factors: billing and payment; price; corporate citizenship; communications; customer service; and field service.

Overall satisfaction with natural gas utility companies has increased slightly -- averaging 634 on a 1,000-point scale, compared with 627 in 2011. However, residential natural gas customer satisfaction with price is 570, an increase of 14 points from 2011.

Fewer rate hikes

Fewer consumers report hearing of rate hikes from their utility in the last year, probably because there have been fewer rate hikes. With natural gas prices continuing to fall, both gas companies and the electric utilities that use gas to generate power have passed some of the savings onto consumers, or at least slowed the increases.

"Each year, as natural gas prices continue to drop, satisfaction with price will continue to be positively affected," said John Hazen, senior director of the energy practice at J.D. Power and Associates. "Additionally, both communication and customer service efforts by utility providers are also contributing to the overall satisfaction increases from last year."

The price of gas has dropped sharply since the U.S. stepped up production in the last decade. The Energy Information Administration reports the wellhead price of natural gas in July 2008 peaked at $10.79 per thousand cubic feet but has since fallen to a low in April 2012 of $1.89.

The current price of gas is around $2.76, about where it was last January at the height of the heating season. So while the price of gasoline and most other energy sources continues to rise, consumers heating with gas this winter can probably look forward to more moderate heating bills.

A Chicago funeral home operator has agreed to settle Federal Trade Commission (FTC) charges that he violated the Funeral Rule, which helps ensure that people have the information they need to compare prices and buy only the funeral services and goods they want. 

In July 2011, at the FTC’s request, the U.S. Department of Justice charged Harry J. Carter III, doing business as Carter Funeral Chapels Ltd. of Chicago, with not providing consumers with itemized price lists, as required by the Funeral Rule. The complaint was based on inspections by FTC staff posing as consumers seeking to make funeral arragements. 

Undercover inspections 

The FTC conducts undercover inspections every year to ensure that funeral homes are complying with the Funeral Rule, which gives consumers important rights when making funeral arrangements. 

The Rule, issued in 1984, requires funeral homes to provide consumers with an itemized price list at the start of an in-person discussion of funeral arrangements, a casket price list before consumers view any caskets, and price information by telephone on request. It also prohibits funeral homes from requiring consumers to buy any item, such as a casket, as a condition of obtaining any other funeral good or service. 

Under the consent order, the defendant is permanently prohibited from violating the Funeral Rule. It also imposes a $64,000 civil penalty, which will be suspended due to the defendant’s inability to pay. The full judgment will become due immediately if the defendant is found to have misrepresented his financial condition.

Just a week after the Federal Reserve announced its intention to drive mortgage rates still lower with massive purchases of mortgage-backed securities, rates have responded by diving. The average 30-year fixed rate mortgage (FRM) hit record lows this week in both the Freddie Mac and Bankrate.com weekly surveys.

Freddie Mac reports the 30-year FRM averaged 3.49 percent with an average 0.6 point for the week ending today. Last week, it averaged 3.55 percent and a year ago the 30-year FRM averaged 4.09 percent.

Freddie's average 15-year FRM was 2.77 percent with an average 0.6 point, down from last week when it averaged 2.85 percent. A year ago at this time, the 15-year FRM averaged 3.29 percent.

Adjustable rate mortgages either rose or remained the same as last week, apparently finding a floor.

"Following the Federal Reserve's announcement of a new bond purchase plan, yields on mortgage-backed securities fell bringing average fixed mortgage rates to their all-time record lows which should aid in the ongoing housing recovery, said Frank Nothaft, vice president and chief economist, Freddie Mac. “New construction on one-family homes rebounded in August, rising by 5.5 percent to the fastest pace since April 2010. In addition, existing home sales increased by 7.8 percent in August to its strongest pace since May 2010."

New low for Bankrate

Bankrate.com also found the 30-year FRM sinking to its lowest rate in its survey's history, although the average 3.70 rate was higher than Freddie Mac's average. Bankrate's average 30-year fixed mortgage has an average of 0.43 discount and origination points.

The average 15-year FRM plunged to 2.95 percent and the larger jumbo 30-year mortgage retreated to 4.32 percent -- both record lows. Adjustable mortgage rates reset record lows also, with the 5-year and 7-year ARMs dropping to record lows of 2.69 percent and 2.87 percent, respectively.

Bankrate also credited the Fed's newly announced stimulus program known as QE3 for the drop. Under QE3, the Fed will be buying $40 billion of mortgage-backed securities each month on an open-ended basis. Bankrate said that exceeded the market's expectations and helped bring mortgage rates to new lows.

Body Basics is conducting a nationwide recall of ACTRA-Sx 500 Dietary Supplement Capsules, Lot 008-A, Expiration December 2013. 

Through independent lab analysis, the company has confirmed the presence of Sildenafil Citrate making this product unapproved new drugs. Sildenafil, the active ingredient used in an FDA approved drug to treat Erectile Dysfunction (ED), is not listed on the product label. 

Use of the product may pose a threat to consumers because it may interact with nitrates found in some prescription drugs (such as nitroglycerin) and may lower blood pressure to dangerous levels. Consumers with diabetes, high blood pressure, high cholesterol, or heart disease often take nitrates. 

No known complications or other health problems have been reported to date. 

Body Basics Inc. has distributed ACTRA-Sx 500 via sales made to independent distributors in the Los Angeles area and directly to some consumers. It is not distributed or sold via the Internet. 

ACTRA-Sx 500, is a purple and gold capsule sold in bottles of 5 count with a UPC code of 830733002015. 

Consumers should cease all use of this product immediately. Any customer in possession of the it is advised to return to the company any unused product for a full refund. 

As there is no practical or economical way to determine whether the product purchased is so contaminated, consumers are encouraged to contact Body Basics Inc. at 800-595-2718 for instructions and return policy or any other questions or concerns. 

Any adverse reactions or quality problems experienced with the use of this product may be reported to the FDA’s MedWatch Adverse Event Reporting program either online, by regular mail, or by fax.

The U.S. Department of Transportation (DOT) has fined Pakistan International Airlines (PIA) $150,000, saying the carrier violated federal rules last October by not providing passengers on an aircraft diverted to Washington Dulles Airport an opportunity to leave the plane before it was delayed on the tarmac for more than four hours. 

DOT also ordered the airline to cease and desist from further violations. 

First fine for international carrier 

This is the first fine for an international flight in violation of DOT’s new consumer protection rule, which took effect in August 2011, setting a four-hour limit for tarmac delays on international flights. 

While other lengthy tarmac delays that occurred on the same day are still under review, the PIA incident was the only one occurring at Dulles, which was not subject to the weather, equipment, infrastructure, and international arrival limitations that existed at other affected airports. 

“Passengers deserve to be treated with respect when they fly, and DOT’s tarmac delay rules were put into place to ensure that they receive that respect,” said U.S. Transportation Secretary Ray LaHood. “We take any violation seriously, and will continue to take enforcement action against airlines that fail to comply with these rules.” 

Rule violation 

Under DOT rules, foreign airlines operating aircraft, with 30 or more passenger seats, that fly to and from U.S. airports are prohibited from allowing their aircraft to remain on the tarmac for more than four hours at most U.S. airports without giving passengers an opportunity to leave the plane. 

Exceptions to the time limits are allowed only for safety, security, or air traffic control-related reasons. The rules require carriers to include the four-hour provision in their tarmac delay contingency plan commitments to passengers. 

PIA flight 711, traveling from England’s Manchester Airport to New York’s JFK Airport, was scheduled to arrive at JFK at 3:27 p.m. on Oct. 29, 2011, but diverted to Washington Dulles Airport due to interruptions in JFK’s Instrument Landing System equipment. After landing at Dulles at 4:28 p.m., the plane remained delayed on the tarmac for four hours and forty-seven minutes. 

Although the captain and first officer were able to deplane the aircraft safely via air stairs in order to conduct external safety inspections of the aircraft, airline officials believed that deplaning passengers by air stairs may have been unsuitable due to the inclement weather, as well as the number of passengers requiring wheelchairs and the number of small children on board. 

However, PIA made no other attempts to deplane passengers by any other means or to seek assistance from the airport operator in deplaning before the tarmac delay exceeded four hours, in violation of DOT rules.  

Over the years footwear has really come a long way, especially in the area of sneakers.

From the Reebok Pump in the 1990s, that supposedly inflated and gave you additional support by pressing the shoe’s tongue, to other sneakers that light up with each step, it’s been a long time since shoes were just worn for utility purposes.

In fact, shoes aren’t really worn these days, they’re sported, and some companies are now making them with some very impressive extras and doodads.

Take the Nike LeBron X sneakers for instance that come with what manufacturers call a “Sports Kit,” which is a technological component that records how high your vertical leap is while playing.

Apparently, Nike is moving toward the recent trend of consumers having the ability to document statistical information during their workout regimen by simply wearing a watch, electronic belt, or pairs of shoes.

Users can then look up the results from an app or home computer, but of course this added feature isn’t going to make the sneakers less expensive, it's going to drive up the cost considerably.

Pretty pricey

The LeBron sneaker is reportedly going for $270 which has spawned a pretty decent debate among the online community.

"Who would dare spend this amount on a pair of sneakers?" some say. "These kids are insane for wanting anything so darn costly, especially when the shoes are made so inexpensively," a few complained.

It seems that people are offended by the cost of the shoe and truly bothered that consumers want to own them. You would think it was Nike that created people's desire for expensive things.

OK, but explain this: If designer high heels, handbags and overpriced watches -- which can easily reach the $1000 range -- are fine for people to want and own, why is it that but I guess young adults shouldn’t desire anything that costs more than $50 or $100?

It’s pretty easy to determine that neither age nor the amount of money one makes determines what items they'll want to purchase. I mean, forget baseball, its product consumption that’s America’s favorite pastime and a desire to play this ancient sport doesn’t limit itself to a particular age group or financial bracket.

Nike says the LeBron shoes will be officially released on September 29, and those interested can expect to wait on corner-bending lines for hours to own them, even though the shoes are more gimmicky than anything.

GPS shoes

But if you really want something that combines technology and footwear you don’t have to look beyond what’s known as the GPS shoe.

The “No Place Like Home GPS Shoe" -- its full name -- was dreamed up by British designer Dominic Wilcox, and it has the ability to navigate your feet back to your house if you’re lost or stuck in a foreign neighborhood.  And by the lengthy name of the shoes, it’s not hard to tell that Wilcox used the Wizard of Oz’s Dorothy for the design inspiration.

“I decided to make a pair of shoes that can navigate you home where ever you are,” he said on the company’s website. “I thought about the Wizard of Oz and how Dorothy could click her shoes together to go home.  After uploading your required destination to the shoes via a piece of custom made mapping software and a USB cable, the GPS, which is embedded in the heel, is activated by a heel click,” explains Wilcox.

At the start of your trek towards home, a red light appears at the toe of the shoe, while other lights lead and direct you to your house. Once you’ve arrived, the red light turns green.

The actual shoes, made in a throwback Stacy Adams style, surprisingly look pretty good. It has the appearance of a normal shoe that you would wear to work or to a casually dressed social gathering.

As far as the lights on the shoe’s toe, they’re really not that noticeable, but I’m sure they’ll attract at least small bits of attention from people wondering why your shoes are lighting up with tiny green and red dots.

The GPS shoes also have a small red tag coming out of the back of the upper heel area that serves as the satellite antenna.

Wilcox says the shoes will work anywhere in the world, which is ideal for those on vacation or in an unfamiliar area, as the shoes will be able to get folks back to their hotel in pedestrian friendly cities, that are hard to navigate with or without a map.

If you are a struggling U.S. airline, hoping to arrange one more merger with a rival while dealing with labor unrest among union employees, the last thing you want is for the leading travel writer for America's major business newspaper to write something like this:

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

That's how travel writer Scott McCartney of the Wall Street Journal began his blog Tuesday. In recent days, American Airlines has seen a surge in flight cancellations, according to KXAS-TV in Dallas-Fort Worth.

'In shambles'

McCartney says American's contentious negotiations with the pilots union spells trouble for the airline and passengers who depend on it. He describes American's operations as being “in shambles.”

American, which earlier this month signed non-disclosure agreements with US Airways as a prelude to a possible merger, is implementing pay and benefit cuts and trimming time off. It's also outsourcing more of its flights to regional carriers.

A number of pilots have called in sick recently but it's a point of dispute whether it's an organized effort. The union says it isn't and blamed the company for mismanagement.

Layoff warnings

American, meanwhile, is still in bankruptcy proceedings. As part of that it is sending out layoff warnings to more than 11,000 employees, who are being told only that they could lose their jobs -- not that they will. An American spokesman said actual layoffs will be less than half that number.

Last month members of the Transport Workers Union of America (TWU) at two American Airlines bargaining units voted to ratify new contract agreements which reduce the concessions demanded by AMR, the airline’s parent company, which has been in bankruptcy reorganization since November of 2011.

One of the TWU units narrowly approved the package. The other accepted it by a 79 to 21 percent vote.

'A lot of frustration'

“There is a lot of frustration associated with this entire bankruptcy process, which is designed to facilitate concessions and to ensure the reorganization of the debtor, rather than advance the interests of working people,” said TWU International President James C. Little. “That is how it has worked in every airline bankruptcy. Nobody is happy with a concessionary agreement, and our members are still waiting to see a business plan that instills confidence. But this result a lot better than what our members would have faced with a court-imposed solution.”

KXAS-TV quotes an American spokesman as saying the airline is cutting its schedule for the rest of September and all of October by one to two percent. That may hit Texans particularly hard, since American currently operates as many as 75 percent of the flights from Dallas-Fort Worth Airport.

The release of the iPhone 5 has created record sales for Apple's smartphone, which is the company's major profit center. But the consumers who shell out $199 and up for the device have paid a lot more than that.

SquareTrade, a company that sells smartphone insurance policies, has released a study showing that damaged iPhones have cost U.S. consumers $5.9 billion since their introduction in 2007.

Based on a survey of more than 2,000 iPhone users, the results combined the cost of repairs, replacements and insurance deductibles for cracked, dropped, pummeled, kicked, and water-damaged iPhones. The study also found that in the last 12 months alone, 30 percent of iPhone users damaged their device.

Hard on their phones

The study also shows that younger consumers are clumsiest with their iPhones: half of iPhone users under 35 have had an accident.

The top five iPhone accident scenarios, according to the study, are:

1. Phone dropped from my hand
2. Phone fell into a toilet, sink, hot tub, swimming pool, lake, etc.
3. Phone dropped from a lap
4. Phone knocked off a table
5. Phone drenched by some liquid

Common complaints

Complaints about the fragility of iPhones are nothing new. Consumers generally expect problems to be covered under warranty but usually find out they are not.

“Less than one month after purchasing an iPhone4 which AT&T suggested for an upgrade, my iPhone went out, no screen, nothing,” Robert, of Slidell, LA, wrote in a ConsumerAffairs post. “The AT&T store could do nothing. I was told to go to an Apple store and make an appointment first, of course. Apple store took phone in the back room, came out several minutes later and said phone not warranted because of liquid-wet. Phone was not wet (was in a life proof case) but they proceeded to show me red dots in phone to indicate wet.”

But SquareTrade says it sees plenty of problems with iPhones caused by moisture.

The toilet drop

"We were astonished at how many people drop their phones in the toilet as well as how frequently an innocuous drop from the hand actually killed the device,” said Ty Shay, CMO at SquareTrade. “We look forward to seeing what the new iPhone 5 users report with regard to durability."

Because of common accidents and the high cost of repairs, the SquareTrade study suggests many iPhone owners resort to improvised repairs.

For example, 11 percent of iPhone owners surveyed are currently using a device that is cracked and 6 percent have taped up their iPhone as a solution.

But others aren't so sure, and say the FDA and other government agencies have a long record of being a little, well, blasé about such things. 

“In many cases the arsenic found in food comes from natural sources, but that doesn't mean it is safe,” said Sonya Lunder, senior research analyst at the Environmental Working Group (EWG) . “Arsenic is known to cause cancer in humans, and FDA needs to do everything possible to reduce people’s exposure.

"Unfortunately, the agency has spent the past 20 years testing foods without making any recommendations on what consumers can do to reduce their risk," Lunder said. "The public should not wait for FDA; there are number steps people can take that will dramatically reduce the amount of arsenic they ingest.”

What consumers can do to reduce their own exposure:

• Eat a varied diet and try out alternatives to rice such as quinoa, barley, grits/polenta, couscous or bulgur wheat.
• Boil brown rice in a lot of water (as you do with pasta). Evidence suggests that can lower arsenic levels. White rice does not hold up as well to this method of cooking.

What parents can do to reduce children’s exposure:

• For babies, try orange vegetables such as sweet potatoes and squash, bananas and avocados as first solid foods.
• Buy non-rice baby cereals, such as oatmeal or mixed grains.
• Do not use rice milk as a dairy substitute.
• Limit fruit juices to a maximum of one-half to one cup a day.

You tip the barista who whips up your brew and we hope you tip the shuttle-bus driver who helps you with your bags. You may even tip the guy on the corner who doesn't do much of anything.

So why not tip the hard-working content slaves who produce that little piece of video you just enjoyed on Vimeo?  Soon you'll be able to do just that. The video-hosting site is adding a virtual tip jar today and says it will have an optional paywall available within the next few months.

"Empowering creators to make money from their videos is a logical next step for Vimeo as a service and an opportunity to expand the overall marketplace for video creators and viewers,” said Vimeo CEO Kerry Trainor. “Established creators and emerging talent alike can connect directly with their audiences without the need to conform to industry standards around video format, price or timing releases.”

We're sure Trainor is all sincere and stuff about helping struggling content producers but it's worth noting that, just like the barista's boss, Vimeo will have its hand in the tip jar. It will keep 15% of gross revenue.

Trainor notes that while consumers haven't rained down money on every online request for donations, there have been some pretty spectacular successes with crowd-funding over the past few years and he thinks the time may be right for the tip jar approach.

Of course, if the tip jar doesn't work, content producers can take a page from the cruise lines that automatically add tips to the ticket price: they can use Vimeo's new paywall, which will work just like its cable counterparts: you  watch, you pay.

YouTube, the biggest video-hosting site, said in April that it would soon be offering a paywall option for live event streaming.

Tuna is a tasty, high-protein, low-fat food and it can even be prepared in recipes that kids like. But a new report finds that children may be at more risk from mercury in tuna than had previously been thought.

The report, co-released by the Center for Science in the Public Interest (CSPI), Physicians for Social Responsibility, Safe Minds, and several other groups, advises schools and parents not to serve any albacore tuna to kids and to limit consumption of light tuna to twice a month for most kids and only once a month for smaller children (under 55 pounds).

The study by the Mercury Policy Project contains the first-ever test results of canned tuna sold to schools.  It also notes that new studies have found adverse effects of tuna consumption at lower levels than expected.

"Most children are already consuming only modest amounts of tuna and are not at significant risk," said Michael Bender, director of the Mercury Policy Project. "So the focus really needs to be on kids who eat tuna often, to limit their mercury exposure by offering them lower-mercury seafood or other nutritious alternatives."

"Fish, including tuna, is generally a nutritious part of a healthy diet," said Sarah Klein, staff attorney in the Food Safety program at CSPI. "But especially for our littlest, most vulnerable children, we have to make sure the risks from mercury in tuna don't outweigh tuna's benefits. We're urging parents and schools to limit children's tuna consumption and, when they do serve it, to choose lower-mercury options."

Not a low-mercury fish

"As the report states, light tuna has one-third as much mercury as albacore does," added Eric Uram of Safe Minds. "But contrary to the current Federal fish consumption advisory, it is definitely not a low-mercury fish."

The report points out that canned tuna is by far the largest source of methylmercury in the U.S. diet and accounts for nearly one-third of Americans' total exposure to this toxic mercury compound.

MPP tested the mercury content of 59 samples, representing eight brands of tuna, sold to schools in 11 states around the country.

"As far as we know, no one has previously tested this market sector," said Bender. Testing showed that the tuna contains mercury levels similar to what other investigations have found in canned tuna sold in supermarkets. Albacore or "white" tuna had much higher mercury levels than did "light" tuna, and mercury levels in both types were highly variable.

Canned tuna is inexpensive and nutritious, a low-fat protein source, and a popular lunch food for kids. American kids eat twice as much tuna as they do any other kind of fish, and one out of every six U.S. seafood meals is canned tuna. A tuna sandwich is an easy-to-fix parental favorite, and canned tuna is served through the federally subsidized school lunch program. And schools may be switching to leaner protein sources this fall as they implement the new school lunch standards.

The report offers these recommendations (among others):

• Children should not eat albacore tuna. Albacore or "white" tuna contains triple the mercury level of light tuna; nothing justifies tripling a child's mercury dose.
• Children weighing more than 55 pounds should not eat more than two servings of light tuna per month. This amount of tuna (six ounces) is more than the average child currently consumes; the mercury dose it contains is acceptably low in risk.
• Children up to 55 pounds should consume no more than one tuna meal per month.Because of their smaller body size, an added margin of caution is appropriate for younger children.
• "Tuna-loving" kids should be the focus of risk-management efforts. In particular:
  
  • No child should eat tuna every day. (Tuna Surprise presents cases of children who did that, and were diagnosed with clinical methylmercury poisoning.)
  • Parents and schools should offer children other seafood choices, such as shrimp and salmon, which are just as nutritious but contain far less mercury.
• The U.S. Department of Agriculture's School Lunch Program should phase out commodity purchases of canned tuna, and replace it with lower-mercury alterative seafood items and other extra-lean protein sources.
• Parents should monitor their children's canned tuna consumption at school and ensure that the total consumed at home and at school does not exceed the recommendations for exposure.

On the heels of a Consumer Reports test that found inorganic arsenic -- a known human carcinogen -- in most of the name brand and other rice product samples, the Food and Drug Administration (FDA) is testing rice and rice products for the presence of the chemical. 

The agency has analyzed nearly 200 samples of rice and rice products and is collecting about 1,000 more. Since rice is processed into many products, these samples include rice products such as cereals, rice beverages and rice cakes. 

Arsenic levels can vary greatly from sample to sample, even within the same product. FDA’s testing of the initial samples found these examples of inorganic arsenic in micrograms (one millionth of a gram) in individual samples: 

• Rice (other than Basmati rice): 6.7 per 1 cup (cooked)
• Rice cakes: 5.4 per 2 cakes
• Rice beverages: 3.8 per 240 ml (some samples not tested for inorganic arsenic)
• Rice cereals: 3.7 per 1 cup
• Basmati rice: 3.5 per 1 cup cooked 

No changes recommended 

Based on data and scientific literature available now, FDA is not recommending that consumers change their consumption of rice and rice products at this time, but that people eat a balanced diet containing a wide variety of grains. 

Data collection is the critical first step in assessing long-term health risks and minimizing those risks.

“We understand that consumers are concerned about this matter. FDA is committed to ensuring that we understand the extent to which substances such as arsenic are present in our foods, what risks they may pose, whether these risks can be minimized, and to sharing what we know,” says FDA Commissioner Margaret A. Hamburg, M.D. 

Once FDA has completed its analysis of about 1,200 rice products, the agency will analyze these results and determine whether or not to issue additional recommendations. 

Arsenic in the environment 

Arsenic is a chemical element distributed in the Earth’s crust. It is released from volcanoes and from the erosion of mineral deposits. It is found throughout the environment -- in water, air and soil. For that reason, it is inevitably found in some foods and beverages. 

Human activities also add arsenic to the environment. They include burning coal, oil, gasoline and wood, mining, and the use of arsenic compounds as pesticides, herbicides and wood preservatives. 

FDA has been monitoring arsenic levels in rice for more than 20 years. Its analysis thus far does not show any evidence of a change in total arsenic levels. The change is that researchers are better able to measure whether those levels represent more or less toxic forms of arsenic. 

Rice comes from all over the world and is grown very differently from region to region, which may greatly vary the levels of arsenic within the same kind of product. The larger sample that FDA is taking will cover the wide variety of rice types, geographical regions where rice is grown, and the wide range of foods that contain rice as an ingredient. 

FDA expects to complete the additional collection and analysis of samples by the end of the year. The agency is paying particular attention to rice and rice products consumed by children, as well as consumers like Asian-Americans and those with celiac disease who may consumer higher levels of rice. 

The next steps 

After analyzing all samples and conducting a comprehensive assessment of potential health risks, FDA will evaluate strategies designed to limit arsenic exposure from rice and rice products. 

The agency is working with other government agencies, industry, scientists, consumer groups and others to study the issue and assess risks. 

“It is critical to not get ahead of the science,” says Michael R. Taylor, FDA’s deputy commissioner for foods. “The FDA's ongoing data collection and other assessments will give us a solid scientific basis for determining what steps are needed to reduce exposure to arsenic in rice and rice products.” 

So what should a person who eats rice do in the meantime? 

“Our advice right now is that consumers should continue to eat a balanced diet that includes a wide variety of grains -- not only for only for good nutrition but also to minimize any potential consequences from consuming any one particular food,” Hamburg said.

Personal finance counselors usually advise that it is prudent to have enough money in savings to cover six months of living expenses without income. In this era of job insecurity, that has never been better advice.

But most Americans don't or can't take that advice. A survey by the American Payroll Association finds 68 percent of Americans live paycheck to paycheck.

Respondents were asked how difficult it would be to meet their current financial obligations if their paychecks were delayed for a week. More than 28,300 of the 30,611 people responding to the survey -- 68 percent -- said they would find it somewhat or very difficult to meet their financial obligations if their paychecks were delayed.

The results are not that surprising since an entire industry has sprung up in response to that reality. Payday loan stores market to consumers who are stretched thin and have no savings. When they encounter an unexpected expense, they often turn to a payday lender as a last resort.

Falling behind

The fact that consumers' incomes are falling also make it harder to accumulate an emergency savings account. The Pew Research Center has crunched Census Bureau numbers showing that U.S. household income has continued to fall since the Great Recession ended in June 2009.

“The decrease in household income from 2009 to 2011 almost exactly equaled the decrease in income in the two years of the recession,” the Pew report said. “During the Great Recession, the median U.S. household income dropped from $54,489 in 2007 to $52,195 in 2009, a loss of 4.2 percent. By this yardstick, the recovery from the Great Recession is bypassing the nation’s households.”

The Pew report mirrors one issued earlier this month by Sentier Research, a survey and data analysis firm. According to the Sentier report, median annual household income declined during the recession, from $54,916 in December 2007 to $53,508 in June 2009. That's the point at which the economy began to register positive growth.

But the downward trend in household income continued, according to Sentier. During the last three years of economic recovery, real median annual household income has fallen to $50,964 -- a decline of 4.7 percent over the last three years. During the same period, the economy has grown an average 3.9 percent per quarter.

So with less money coming in, it only seems logical that more Americans would be living paycheck-to-paycheck.  

JetBlue is the latest airline to announce it will provide Internet access to its passengers. The carrier said it plans to partner with ViaSat to bring the Web to its fleet beginning in the first quarter of 2013.

The news got out before the company planned. The Verge reported it obtained a company email detailing the plans. JetBlue confirmed the report on its Website.

That prompted ViaSat to go public with a press release of its own, saying its system enables airlines to specify a high-speed service level to each passenger, rather than simply an aggregate amount of bandwidth to the plane that leaves passengers competing for service.

The system is capable of delivering 12 Mbps or more to each connected passenger. However, neither party has yet specified exact speeds to be offered aboard JetBlue.

ViaSat says its high-capacity can offer significantly higher transmission speeds, more bandwidth for each passenger, less network congestion, and more attractive airtime pricing than other in-flight Internet access alternatives.

The full aircraft system, which ViaSat says is the first of its kind for commercial aviation, is undergoing certification by the Federal Aviation Administration.

Company says Ka-band satellite a plus

“Compared to air-to-ground and traditional satellite in-flight networks, the improved capacity and economics of our Ka-band system enable airlines to finally bring a high-speed home or office Internet experience to passengers,” said Mark Dankberg, ViaSat CEO and chairman. “Customer feedback on our Exede home Internet service has been overwhelmingly positive and we’re eager to prove that the in-flight experience can be just as good.”

ViaSat is already under contract to install its in-flight system, working together with partner LiveTV, onto 370 aircraft operated by JetBlue and one other U.S. carrier, which it did not name. LiveTV currently provides DIRECTV service to all passengers on JetBlue.

Internet installations are expected to begin later this year with all 370 aircraft scheduled to be online by the end of calendar 2015.

The news from the real estate market continues to suggest that housing is finally on the mend. Sales of existing homes rose 7.8 percent in August from July. The seasonally adjusted annual rate of 4.82 million was up 9.3 percent from August 2011.

"The housing market is steadily recovering with consistent increases in both home sales and median prices. More buyers are taking advantage of excellent housing affordability conditions," said Lawrence Yun, chief economist for the National Association of Realtors (NAR). "Inventories in many parts of the country are broadly balanced, favoring neither sellers nor buyers. However, the West and Florida markets are experiencing inventory shortages, which are placing pressure on prices."

In many cases, there hasn't been any kind of pricing pressure favorable to sellers since 2006. Yun said the improvement in the market is occurring in spite of, not because of, mortgage lenders.

Difficult mortgage qualifying conditions

"The strengthening housing market is occurring even with difficult mortgage qualifying conditions, which is testament to the sizable stored-up housing demand that accumulated in the past five years," Yun said.

In a separate report federal regulators noted that mortgage lending dropped to its lowest level in 16 years in 2011. The Federal Reserve reports lenders funded about 7.1 million mortgages in 2011 -- down 10 percent from the year before.

Rising sales last month also lifted prices. The national median existing-home price for all housing types was $187,400 in August, up 9.5 percent from a year ago. The last time there were six back-to-back monthly price increases from a year earlier was from December 2005 to May 2006.

The August increase was the strongest since January 2006 when the median price rose 10.2 percent from a year earlier.

Fewer distressed properties

Distressed homes -- foreclosures and short sales sold at deep discounts -- accounted for 22 percent of August sales, down from 24 percent in July and 31 percent in August 2011. Foreclosures sold for an average discount of 19 percent below market value in August, while short sales were discounted 13 percent.

First-time buyers accounted for 31 percent of purchasers in August, versus 34 percent in July; they were 32 percent in August 2011.

All-cash sales were unchanged at 27 percent of transactions in August; they were 29 percent in August 2011. Investors, who account for most cash sales, purchased 18 percent of homes in August, up two percent from July; they were 22 percent in August 2011.