Current Events in November 2012

When PayPal first got started most people were leery about sending money back and forth electronically.

Mind you, this was back in 2000 when a good portion of folks still trekked to their local branch for their banking needs, and if you checked your balance by printing out an ATM receipt, it didn’t make you seem ancient or completely out of the technological loop.

Today both businesses and consumers shuffle finances through PayPal with a great amount of confidence. No longer do users wonder if their money will end up in the land of digital nowhere or in the pocket of some Internet robber using PayPal as his mask.

Truthfully, using the online money exchange service is as common as using sites like Twitter and Facebook, and the level of trust and comfort users have equals both social sites.

And for that very reason PayPal is trying to compete with giant retailers in the area of price matching -- which is when a store pays you the price difference if you happen to find one of its sale items cheaper someplace else.

The company plans to roll out the digital program this holiday season.

Snag sales

Many retailers—both online and brick and mortar—are eager to secure shopping dollars this holiday season, and mega stores like Target and Best Buy have already used price matching to help pull that off.

Whether consumers will associate PayPal with holiday shopping remains to be seen, because sometimes it takes a little while for people to change their view of a company once it takes on other roles and different functions.

Here’s how the price matching program works: If you buy certain products exclusively with your PayPal account, you have 30 days to see if another store has it for less. Easy enough, right?

But consumers will have to locate a printed version of the other store’s advertisement and the ad needs to have details like the sales price, the name of the store or dealer, and the dates of that store’s sale.

Also, the item must be identical to the one you initially purchased, and it can’t be offered on any auction sites. However items that are bought new on eBay can be part of the price matching program, but they have to be sold by one of the sites’ top rated sellers.

PayPal also limits payments for each item up to $250, and each customer won’t be paid more than $1,000 while the program exists. Also, once you see the advertisement for the cheaper item, you have 10 days to file a request if you want to be paid the difference.

Improvement needed

Although the price buying program is a good step for the online company, many consumers would prefer if PayPal would first make improvements in the area of money exchange.

Just ask Carlos of Azusa, Calif.—one of our readers who experienced some stressful dealings with the company.

“My wife opened a new PayPal account to transfer money to our bank account in Mexico and they blocked her account,” he wrote in his ConsumerAffairs posting.

 “Then she calls and asks why. They said that she needs to provide some information and a phone number, but my mom doesn’t have a phone number in Mexico. Then she tried to send the money back to me as a refund and they limited the account. Now, they limited my account and they are asking us for IDs and proof that we are who we are or they will hold the money for 180 days,” Carlos explained.

And he isn’t the only one who experienced trouble with the company, as many readers have complained about PayPal holding their money for seemingly no just cause. Apparently, it doesn’t take much for the company to keep your finances.

“I have sold an item for several hundred dollars last weekend,” wrote Tom from Oregon.

“I was paid the day after the auction ended. PayPal put the funds on hold for 21 days. They may release them earlier if positive feedback was left by the buyer. They may release the funds three days after they have confirmed delivery of the item. I am a casual seller. I am not a business.

“I have a 100 percent positive feedback rating. This is my money and PayPal has no right to put the funds on hold. This company appears to be totally out of control. If this practice isn’t illegal, then it definitely should be,” Tom wrote in the comments section.

A PayPal spokesperson responded on Nov.9 to the sellers' gripes, providing this statement:

"We recognize that the holds process is frustrating for anyone affected who is selling via PayPal, and we are making some significant changes in how this policy is implemented and how we communicate what's happening to our customers.  Holds are put in place to protect the entire ecosystem of online payments - for both buyer and seller. Unfortunately, when you provide a service that enables millions of people to send and receive payments around the world, there is a high potential for fraud.

"We take this very seriously and have in place some of the best
anti-fraud and automated risk technology in the business.  A very small percentage of the six million transactions we process every day are affected, but we apologize if anyone is subject to a hold who should not have been affected ."

Airline tickets

The company’s price matching program also includes airline tickets. If you purchase an eligible ticket using your PayPal account within the U.S., you’ll be paid the difference if you see the same flight on a printed ad or on another airlines’ website. You have seven days from the initial purchase to request payment.

 The price limit is $1,000 per person during the program for the tickets and PayPal will pay each person up to $250.

In addition, the ad showing the cheaper flight must include the sales price, the flight number, the date the lower price was listed, and the departure date. You also have ten days from when you see the other ad to file a payment request.

It sounds like something out of a James Bond movie but it could be available on your smartphone next year. It's a biometrics application that uses your "eye print" to access sensitive information with your mobile device.

EyeVerify has produced what it calls "the first eyeprint solution" for mobile users to verify their digital identity. It allows them to securely access highly personal information on the Web in the blink of an eye -- literally. The system uses the hardware that is already part of your smartphone, namely the built-in camera.

The camera scans the user's eye to image and pattern match the unique veins in users' whites of the eyes. If it's a match, the user gains access to the information. If it's not a match, he doesn't.

Just like fingerprints

"Similar to how fingerprints historically were the standard in identifying individuals, EyeVerify is the first and only mobile authentication solution leveraging the uniqueness of eye vein patterns to obtain a person's 'eyeprint,'" said Toby Rush, CEO EyeVerify. "This new method is redefining standards for simple, yet secure authentication for personal or business use leveraging existing mobile devices without requiring additional hardware."

Currently most mobile devices are protected by passwords but Rush says that's no longer effective. He maintains they're not secure, there are too many, and these types of passwords are no longer a viable method for digitally proving we are who we say we are.

Other authentication technologies, such as fingerprint, Iris and keyfob tokens may offer comparable accuracy, but they require additional hardware and expense.

Everything's going mobile

Rush says something else was needed. Mobile devices are increasingly becoming the standard for how we manage our work and personal lives, potentially exposing ourselves to identity theft and fraud.

According to Aberdeen Group, there were $221 billion in identity-related crimes reported in 2011. The average user today manages over 25 online accounts, plaguing consumers with the battle of "password sprawl."

Dr. Arun Ross, Associate Professor at West Virginia University and a leader in biometric research, says that the applications for eyeprint technology are limitless. Eye vein biometrics can potentially be used for applications such as mobile banking, enterprise security and healthcare. And almost everyone has a smartphone with a camera.

EyeVerify's eyeprint technology isn't available just yet. The company says it is currently in beta test on the Apple iOS and Android mobile platforms. It should be available for general release in early 2013.

It remains an affordable time to take out a new mortgage or refinance an old one. Two weekly surveys show rates continued to hover at record lows for yet another week.

Freddie Mac reports the average 30-year fixed-rate mortgage (FRM) for the week ending today was 3.40 percent with an average 0.7 point. That's up from 3.39 the week before.

The 15-year FRM averaged 2.69 percent with an average 0.7 point for the same period. That's down from 2.70 last week.

The 5-year Treasury-indexed hybrid adjustable rate mortgage (ARM) averaged 2.73 percent this week with an average 0.6 point, down from last week when it averaged 2.74 percent. A year ago, the 5-year ARM averaged 2.98 percent.

The story was much the same in Bankrate.com's weekly rate survey. The 30-year FRM averaged 3.57 percent, unchanged from last week. It carried an average 0.40 point.

The 15-year FRM averaged 2.88 percent, dropping from 2.89 percent last week. It carried an average 0.32 point. The 5/1 ARM averaged 2.72 percent, unchanged from last week.

Paying down debt

Those taking advantage of recent low interest rates to refinance existing mortgages continue to pay down debt. Unlike the days of the housing boom, when homeowners often took out equity when they refinance a mortgage, 83 percent of refinancing homeowners in the third quarter either maintained about the same loan amount or lowered their principal balance by paying in additional money at closing, according to Freddie Mac's quarterly accounting.

Of these borrowers, 54 percent maintained about the same loan amount, and 29 percent of refinancing homeowners reduced their principal balance. The average interest rate reduction was about 1.7 percentage points, or a savings of about 31 percent in interest rate -- the largest percent reduction recorded in the 27 years of analysis.

Savings

"On a $200,000 loan, that translates into saving about $3,500 in interest during the next 12 months," said Frank Nothaft, Freddie Mac's chief economist. "Fixed-rate mortgage rates hit new lows during September, with 30-year product averaging 3.5 percent and 15-year averaging 2.8 percent that month, according to our Primary Mortgage Market Survey.

The net dollars of home equity converted to cash as part of a refinance, adjusted for consumer-price inflation, remained at a low volume. In the third quarter, an estimated $7.7 billion in net home equity was cashed out during the refinance of conventional prime-credit home mortgages, up from an estimated $5.9 billion in the second quarter, but substantially less than during the peak cash-out refinance volume of $84 billion during the second quarter of 2006.

More of us plan to travel for Thanksgiving and Christmas than last year, but we'll pack less to save money and stay closer to home.

According to HomeAway, Inc., an online marketplace for vacation rentals, about a quarter of Americans (26 percent) say they'll travel over Thanksgiving , compared with 17 percent last year. The number of people traveling in December for the holidays is expected to nearly double, increasing from 22 percent in 2011 to 40 percent this year.

"From our survey (HomeAway Vacation Rental Marketplace Report), it seems people feel optimistic about the economy and are starting to travel more, but our research shows they're still cost conscious," says Brian Sharples, chief executive officer of HomeAway. "In an effort to save money, many travelers are driving instead of flying and looking for ways to avoid all the extra fees -- from checked bags and in-flight meals, to fees for being able to sit next to one another -- which can quickly add up, especially for families."

Shorter trips

While more people are traveling during the year-end holidays, they aren't traveling as far as they did last year. The percentage of people traveling more than 250 miles for Thanksgiving is expected to drop to 52 percent this year from 61 percent last year, with three quarters (75 percent) traveling by car.

The number of people traveling more than 500 miles over the December holidays is expected to fall from about 58 percent in 2011 to 51 percent this year, with slightly more traveling by car (54 percent) than by plane (45 percent).

Where to stay

When they get to their destination, 44 percent of people plan to stay at a friend or family member's house for Thanksgiving; 38 percent have the same plan for the Christmas holiday. Others seek alternative accommodations, including:

Travelers take a stand

According to the HomeAway report, travelers will spend an average of $434 per person for Thanksgiving-related travel and $926 per person for travel during the December holidays. Contributing to the cost of holiday travel is the rise in additional fees charged by airline companies and others in the travel and tourism industry, which has left many travelers frustrated.

In fact, about half of travelers (48 percent) think airline fees for checked luggage are the most unfair of all travel fees, followed by:

• Parking fees at hotels and attractions (18 percent)
• Fees for in-flight services such as food, headphones and pillows/blankets (11 percent)
• Fees for wireless Internet access (11 percent)
• Fees to reserve a specific airline seat (10 percent)
• Fees to ensure priority boarding on an aircraft (1 percent)
• Mini-bar fees (1 percent)

With the rise in fees associated with traveling, many people are changing their travel habits to take a stand against travel fees. Nearly a third (31 percent) of travelers pack less to avoid airline luggage fees; 30 percent fly on different airline carriers every time to get the best deal; and about a quarter (25 percent) drive rather than fly. Almost one in five (18 percent) stay in alternatives to hotels, such as vacation rentals, where fees aren't as prevalent.

While 35 percent of travelers refuse to pay for any conveniences, some people may shell out some extra dough for additional space. Twenty-one percent of travelers say they'd pay more for roomier accommodations, and 20 percent would pay more for additional space on a plane. Access to a kitchen (21 percent), pool/hot tub (12 percent), and laundry facilities (11 percent) were also among the perks people say they'd pay extra for when traveling.

"The great thing about vacation rentals is that the perks are all included," says Sharples. "Families can be together under one roof with access to more bedrooms, a kitchen, laundry facilities and a host of other amenities for no additional charge. Togetherness doesn't cost extra in a vacation rental."

Cramped quarters a no-no

While 36 percent of travelers enjoy staying with friends and family during the holidays, 64 percent aren't overly thrilled. In fact, 29 percent feel the worst part of staying with family and friends over the holidays is the lack of personal space, and 28 percent say the lack of comfortable sleeping arrangements. Five percent say the worst part is their actual relatives, two percent say the noise levels are unacceptable and one percent say they aren't fond of their host's cooking.

While most people say they would prefer to host the holidays at their house, when asked to name the relative for whom they'd most like to find separate accommodations, about one in three (29 percent) say they'd send their sibling packing while 22 percent said their grown child could stay elsewhere.

Fathers and fathers-in-law were the most welcome during the holidays, with only 6 percent saying they'd want to find separate accommodations for dad and only 4 percent naming their father-in-law as an ideal candidate to stay somewhere else.

How can you make sure you get a good deal on Black Friday? Use a coupon, say the people who run coupon Websites. They point out that more retailers are using coupons this year and that consumers are missing the price-savings boat if they don't pay attention.

A poll cited by Offers.com shows only 24 percent of online shoppers say they look for coupons or deals always or most of the time when making online purchases -- a decrease from 40 percent last year. Thirty-six percent say that they never do so, an increase from 23 percent in 2011.

"With more savings available by all major retailers, there's tremendous opportunity for shoppers to save," said Steve Schaffer, CEO of Offers.com. "In fact, we've found that consumers save an average of $25 on the most wanted holiday gifts when they shop through Offers.com."

Still a big shopping day

The survey also found that this year 32 percent of consumers plan to shop on Black Friday, the day after Thanksgiving. Among those Black Friday shoppers, 57 percent plan to shop primarily in stores, 31 percent to do so both online and in stores, and 11 percent to do so primarily online.

Last month the Wall Street Journal reported that the best deals of the year are not found on Black Friday. While a limited number of big screen TVs might be generously marked down, the kinds of things you routinely buy as gifts aren't. If you want a wristwatch or Barbie doll for example,you'll save more money by watching sale circulars throughout the year and sleeping in on Black Friday.

According to a new study by ShopAdvisor, a shopping service, Black Friday was among the worst sales days of the 2011 shopping season. While that may be true, Schaffer maintains to doesn't take into account the power of coupons.

Making the deals better

"There is a lot of talk right now that the savings opportunities on Black Friday are not all that great," said Schaffer. "However, we think those who are savvy Black Friday shoppers can find fantastic deals this year.

Coupons, he says, can make even big-ticket items like digital cameras, Blu-ray players and HDTVs more affordable.

Another trend to watch for this year is the merging of Black Friday and Cyber Monday, when online retailers roll out their bargains. Increasingly online retailers aren't waiting for the Monday after Thanksgiving but are offering their savings on Black Friday as well.

Just another reason to avoid the crowds and shop from the comfort of your home.

Sauder Woodworking Company of Archbold, OH, is recalling about 72,300 Gruga office chairs -- about 70,000 in the U.S. and 2,300 in Canada.

The seat plate can break, posing a fall hazard to consumers. The company has received 17 reports of seat plates breaking, two of which involved consumers falling and receiving bumps and bruises.

The recalled chairs are entertainment, executive, manager's and task chairs with the brand name "GRUGA - Seating from Sauder." The chairs are sold in a variety of fabrics and colors. The model number and Universal Product Code (UPC) are on a tag attached to the bottom of the seat. A blue date code is stamped on the legal disclaimer label on the underside of the chair seat. Recalled chairs are dated August 2009 and later.

The following chair models have been recalled:

The chairs, manufactured in China, were sold at Meijer, Menards, Shopko and Target and a variety of retail outlets nationwide, and online retailers including BestBuy.com and Kohls.com from August 2009 to September 2012 for between $79 and $399.

Consumers should immediately stop using the recalled chairs and contact Sauder for a free replacement seat plate and attachment tool.

Consumers may contact Sauder Woodworking Company toll-free (888) 800-4590, from 8 a.m. to 5 p.m. ET Monday through Friday.

You open your email program and there's a message from American Airlines with the heading "download your ticket." That's weird, you think, I didn't buy an airline ticket.

But you open the email and there, indeed, is an official-looking link to download a ticket. It must be some mistake, you think, but the idea of a free airline ticket is simply too hard to resist -- so you click.

If you do, you will be disappointed to learn you haven't downloaded a free airline ticket but a computer virus instead.

The emails, of course, are not from American Airlines but from spammers distributing malware. Once the malware is loaded on your computer the hacker can steal personal information and financial data.

The airline ticket ruse is just the latest incarnation of an old scam. Because most airline tickets are now distributed electronically scammers are counting on victims to click first and think later.

Warning from American

"Do not click on any links, open any attachments, call phone numbers listed or follow any instructions in these fraudulent emails including opening any type of attachments," American Airlines warns on its website. "Instead, delete all emails and attachments. American Airlines will never send executable files as attachments, nor ask our customers for this type of personal information in email communications."

Details, including subject lines, order numbers and flight information in the subject line or body of the malware emails may vary. And not all work exactly the same way.

Different types of emails

Some emails may contain the malware in an attachment. Others may direct victims to a Website where the malware is installed.

Even the name of the airline may not be the same. There have been reports that some consumers received the bogus ticket emails purporting to be from Delta Airlines.

The scammers, of course, are counting on human nature working in their favor; that people drawn to the idea of getting an airline ticket they didn't pay for will cause them to act in a reckless manner.

To avoid these scams always refrain from even opening obvious spam emails and be very suspicious of those asking for sensitive information or directing you to click on links.

The day after election day, which saw Barack Obama returned to the White House for another four years, Wall Street swooned. The Dow Industrials plunged 313 points. The S&P 500 dropped 2.37 percent.

Were investors reacting to Obama's re-election or were there other reasons for the mighty sell-off? Yes and yes.

It's not that the markets recoiled in horror at the thought of four more years of Obama. In fact, the stock market hasn't exactly suffered under the 44th President of the United States.

Since Obama took office the S&P 500 has risen more than 75 percent. The NASDAQ is up 128 percent. The president's election to another four-year term, by itself, shouldn't be enough to trigger that kind of selling.

Out of favor stocks

That said, market analysts suggest heavy selling Wednesday of coal, oil and gas stocks may be because Obama has been unfriendly toward fossil fuels. Now that it is clear there will be no roll-back of financial regulations or health care legislation, investors bailed out of those sectors as well, although hospital stocks bucked the market trend and surged. Hospitals expect to be more profitable under ObamaCare.

There were two other factors that may have influenced selling. Worries about Europe's debt crisis -- which seem to crop up every couple of months -- again spooked investors on Wednesday.

And now that the election is over, investors have suddenly focused on the so-called "fiscal cliff," when tax rates are set to rise and spending is to be slashed at the end of the year. These two recession-inducing actions are automatically set to go into effect without Congress and the President agreeing on an alternative course, something that has eluded policymakers so far.

Looming tax hikes

Assuming there is no agreement, taxes will go up, not just on those making over $250,000 but on low-income taxpayers as well. For example, the current 10 percent tax bracket is eliminated and replaced by a 15 percent bracket, a significant tax hike on modest wage-earners.

More significantly, the 15 percent tax rate on capital gains and dividends -- the kind of income primarily earned on Wall Street -- reverts to the higher rates in place before 2002. For investors, the thinking goes, better to sell before the end of the year, and better to sell before other investors do and drive down the stock price.

However, there may be a ray of hope that the fiscal cliff can be avoided. Late Wednesday, House Speaker John Boehner said Republicans in the House would accept a deal that increased government revenue, "under the right circumstances."

Boehner said Republicans might accept a package that increased revenue while lowering tax rates but eliminating some deductions and loopholes. That may or may not fly at the White House but investors may be looking for any reason to be hopeful at this point.

What should you do about stocks in your retirement account? Nothing, until you talk to a trusted financial adviser. No one has a crystal ball when it comes to the market's performance but a hasty decision is usually a wrong one.

Whenever I think of kitchen knives that are advertised as being the best I think of the Ginsu. If you don’t recall the Ginsu knife, you may remember the TV commercials that were all over the place in the 70s and 80s.

One part of the ad had a guy using the Ginsu to saw a piece of wood, then taking that same knife and using it to cut a tomato— to showcase how durable the blade was.

I never understood why cutting a piece of wood for a few seconds would make the knife unable to cut a soft, liquidy vegetable, but that’s another story altogether.

The company that made the Ginsu popularized the concept of the infomercial, and completely changed the way a lot of new products are being pitched nowadays, namely utensils and household appliances.

Six pack

One of the people who benefited from the idea of the infomercial is Ron Popeil, an inventor and TV personality that seems to be pitching a new product each week. And for the past few years he’s been advertising the Ronco Six Star 25 Piece Knife Set, that you can get on the company’s website for about $60.

Some would say the obvious question is--do you really need 25 knives if you’re not a full-time chef or if you’re not someone who really loves to cook?

Many of us have purchased sets of knives, dishware and other items that we thought would make life easier, but it turned out we hardly ever used them. And what was once something new and exciting to use, eventually became mere holders of dust particles on some far-off cabinet shelf.

For a lot of us it seems the only knives we use on a daily basis are just a few steak knives, a healthy amount of butter knives and that big sharp knife that resembles the one Glenn Close used on Michael Douglas in "Fatal Attraction."

Other than that, a lot of consumers really don't use a big knife set all that much.

Blade runners

However, a large amount of people do enjoy cooking and for a good portion of consumers the kitchen is just as comfortable as the living room. For them, a knife set is needed since a decent collection of blades could make preparing meals easier and less time consuming.

As far as Ronco knives, they seem to be a lot like the Ginsus in terms of being marketed as all-purpose and being able to trump any knife you currently own.

Take the company’s Showtime knife for example, that’s supposed to never get dull. The set also has the Chop ‘n Serve knife that allows you to cut, scoop, and drop whatever your cutting into a receptacle.

Other knives in the 25-piece set include a carving knife, a saw knife, a bread and bagel knife, a sportsman knife and a blade for every imaginable kitchen task one can think of.

There’s also an all-purpose chef knife, which makes me wonder why you would need the other knives in the set if one knife is supposed to be all purpose. But hey, free enterprise right? People have to sell something.

But the company isn’t selling the Ronco knives as much as it’s selling the idea that you’ll be lost if you don’t purchase a set.

Good for a lifetime

The knives are impact-resistant, made of stainless steel and are supposed to last an entire lifetime, says the company. The infomercial also suggests the blades can cut through foods better than any knives on the market, including the electric ones.

The pitch people in the commercial also do Ginsu’ish things by using the knife to cut through leather and showing how effortless it is to slice through hard-surfaced foods like a pineapple.

In short, Ronco knives are said to be the highest quality and shouldn’t provide any problems in the area of becoming dull or failing to cut foods perfectly.

But this wasn’t the case for Douglass—one of our readers from Canada—who recently posted this:

“Unfortunately, I purchased two sets of these Ronco knives and they are the worst I have ever used,” he wrote in his posting. “The knives are dull and cannot be sharpened using their or any sharpener and they rust after washing. The knives that do not require sharpening could not cut through water let alone a tomato or bread.”

“The cheese knife sticks to cheese better than any knife I own and yet they state the knife will not stick,” Douglas added. “I just want to warn as many people as possible not to make the same mistake or be embarrassed by buying a set for family or friends, because they will be embarrassed. The Ronco owners should be ashamed and stopped from making these false adverts.”

Other readers left comments about how flimsy the knives were and how dull some of the blades were upon arrival, but a good portion of consumers also wrote in about various kinds of billing issues with Ronco, whether it was having a hard time trying to return the knives or receiving a hefty shipping charge they weren’t expecting.

“I ordered online two sets of knives as offered on television in December 2011,” wrote Deborah of Pennsylvania. “Now, the last days, I am being badgered with 6-7 phones a day from Ronco requesting I pay two more payments. I never received a bill, just these phone calls in April. It is ridiculous that this company misrepresents itself and that the caller wouldn’t even give me an amount owed.”

“I want to send these two sets of knives back to Ronco and have the amount that was debited from my account returned to me,” she added. “The knives are dull, will not cut or chop and they are covered with rust spots that cannot be removed.”

Expensive shipping

In addition, many readers noticed much too late that the shipping charges were more expensive than the knives themselves.

On Ronco’s website the price breakdown for the knife set is $13.33 for the actual item and $43.40 for the shipping, which says two things: One, $43  for shipping is way too pricey for something that’s supposed to be a bargain, and two, the knives can’t be that high-end if they only cost $13 to purchase. I mean, the entire set must have been made for $2.50 in order for the company to turn a decent profit.

We reached out to Ronco to see if the company wanted to provide any statements or at the very least some advice on what dissatisfied customers should do.

After first calling the 800-number on the company’s website and explaining some of the problems readers had with the knives, I was told to call the manufacturer, which is always a sign of less than stellar customer service. Companies that make consumers do all of the legwork to resolve a problem appear to be indifferent.

Apparently, if you have an issue with the product itself, as opposed to having an issue with billing, you should call the manufacturer directly at 1-800-769-3322. We were advised by a Ronco manager that our request for a statement would be forwarded to upper management, and we’re still waiting for a response.

So are the Ronco knives really such a great buy? Well, maybe they would be if only you find a way to get them without paying the shipping charge. 

Sure, the infomercials are memorable, well put together and even a little entertaining--but the quality of a TV ad doesn't have much to do with the quality of the product being pitched.

Just look at how good the Ginsu commercials were and ask yourself when you last saw someone using a Ginsu knife. 

With a Nor'easter bearing down on what's left of the New York Metropolitan Area, thousands of residents whose electricity has not yet been restored are facing a new wave of flooding and freezing temperatures.

"On October 29th, the Pelham Gardens section of the Bronx lost power due to Hurricane Sandy. Majority of the power was restored on November 1," said Con Ed customer Adil of the Bronx in a posting to ConsumerAffairs today. "Unfortunately a radius of 8 blocks has yet to be restored. This 8 block radius includes many families as well as a nursing home for the elderly (above 100 residents).

"We have been calling Con Ed non-stop to send someone to restore power to the rest of Pelham Gardens. The city did their portion to help, cleaning up trees at a rapid rate. Con Ed has had ample time and sufficient space to work on the damaged poles. We just discovered last night after speaking to a supervisor, that NO ONE has been dispatched to our area," Adil said.

"Our neighborhood has been powerless, without heat for 9 days and I suspect with the Nor'easter on the way we can expect to be powerless for more than 2 weeks. I feel it is an injustice what has been to my neighborhood. We have simply been forgotten. We as a neighborhood are tired of being mistreated, feeling hopeless, we are tired of this injustice," Adil said.

Con Ed and other utilities say they are working around the clock, using their own crews as well as others from around the country, as described in this Con Ed video:

David, who lives on Seton Avenue in the Bronx, filed a similar complaint. He said the electricity failed Oct. 29 when a large tree fell onto the power lines.

"Con Ed stated, well, tree needs to be cut first then we can repair. Tree people came and stated Con Ed has to shut power off first then we can cut tree down. And this has been going on since the 30th of October. So now here we are on day 8 and 9 nights with no power and the runaround," David said.

Adil, David and other consumers still without power should contact the New York City Office of Emergency Management. If power cannot be restored, the city may be able to offer shelters, blankets or other assistance.  

PSE&G

PSE&G, which serves New Jersey, is also getting its share of criticism. Gregory of Highland Park said he has been without power for more than week. 

"We cannot get any detailed information about when power will be restored. Apparently, faulty power restoration at a pumping station in New Brunswick has led to pump failures and a consequent water advisory in our town, adding considerably to the misery," he said.

"I understand that the devastation from Sandy was enormous. However, PSE&G has seen several widespread storm-related outages in recent years. They had plenty of warning that this was coming and that this would be big," Gregory said. " They were obviously inadequately prepared despite plenty of advance warning. ... The people on the ground are working heroically."

Patti of Waldwick, NJ, has also been without power since Sandy struck and says she has not seen a single repair truck in her town. 

"I feel officials aren't doing enough. There is a downed pole with wires on a main road (Wyckoff Ave & Franklin Turnpike) since Monday, 10/29 and no from PSE&G has look looked at it to see if wire is live. The weather is dropping to 30's and I had to send my daughter away For the weekend," Patti said.

For its part, PSE&G says it expects to have "virtually all" of its customers back in service by Friday, Nov. 9 but says there may be individual cases that take longer.

"Currently, we have restored 1.5 million customers, or about 89 percent of those
interrupted," the company said. "Our work plan is prioritized by where we can restore the maximum number of customers in the shortest possible time, the critical nature of some operations e.g. schools is affected by a number of technical considerations including the ability to access roads and equipment."

"We currently have 185,000 customers still without power, this does not reflect work still being performed in the field at this time," the company said in a posting on the New Jersey Board of Public Utilities site. That posting also includes a list of communities where work is still being performed.

It cost $47 million but pesticide and biotechnology corporations succeeded in defeating Proposition 37 on the California ballot. The measure would have given consumers the right to know whether the foods they buy at the grocery store contain genetically engineered ingredients (GMOs). 

With 95% of the vote counted, according to the California Secretary of State's office, the proposal was defeated 53-47%. Opponents argued the measure was unnecessary and would raise food costs.

"Genetically engineered foods found on market shelves have most commonly been altered in a lab to either be resistant to being sprayed by large amounts of toxic herbicides, or to produce, internally, their own insecticide," said Mark A. Kastel, Codirector of The Cornucopia Institute, one of the measure's leading proponents. 

"Corporations that produce both the genetically engineered crops and their designer pesticides, in concert with the multi-billion-dollar food manufacturers that use these ingredients, fought this measure tooth and nail, throwing $46 million at the effort that would have required food manufacturers to include informational labeling on GMO content on their packaging," Kastel added.

Many food activists nationwide looked to the California initiative as "the last best hope" for GMO labeling in this country.  Such labeling is required throughout Europe, and by scores other countries worldwide.  

Lawsuits threatened

The battle's not over by any means. Activists are warning food companies that they will continue to face class-action lawsuits claiming that labeling products containing GMOs as "natural" is a violation. 

"The lawsuits are based on claims that the popular understanding of 'natural' is something that is unmodified," said Mark Goodman, partner at international law firm Hogan Lovells.  "Plaintiffs are seeking to have the courts define what natural is.  The problem for plaintiffs’ lawyers is that it is difficult to certify a class for these cases, as not all consumers buy products because they claim to be 'natural.'” 

"That is why Prop 37 was going to be such a boon for plaintiffs’ lawyers – they would not have to show that all consumers bought the products for the same reason," Goodman said.

Not completely in the dark

The failure of Proposition 37 does not leave consumers completely in the dark about genetically engineered (GE) foods, however, since foods without GE ingredients are already widely available and clearly carry the USDA "organic" seal.  Federal law prohibits the use of GE seed or ingredients in any product labeled "organic."

In some ways, the "organic" label goes much further than what Proposition 37 would have required, since organic meat, milk and eggs must come from animals that were not treated with GE hormones and fed a diet that is free of GE ingredients.  Proposition 37 would not have required labels on meat, milk and eggs from animals given GMO feed.  Alcoholic beverages were also not covered under proposition 37.  Organically labeled beer, wine and spirits are increasingly available in the marketplace.

"Organic foods are already required by federal law to be free from genetic engineering," says Steven Sprinkel, an organic farmer in Ojai, California who fought for prop 37 passage.  "And the icing on the organic cake is that certified organic foods are also grown without a long list of dangerous and toxic chemicals and pesticides, hormones, antibiotics and other drugs that are routinely used in conventional agriculture."

As huge swaths of the New York City area remain in shambles following Superstorm Sandy, a Nor'easter is taking aim at the battered region and airlines are rushing to cancel flights in and out of New York's three major airports. Some are also canceling Philadelphia flights. 

United and American said they are suspending operations this afternoon, while other carriers urge passengers to reschedule and say they will waive fees for those who do so.

The latest storm is weaker than Sandy but will bring high winds, rain and snow and the chane of more flooding, particularly at LaGuardia and JFK, which are both low-lying and near the water. 

At last word, the storm was farther offshore than expected as it moved up from Florida but New York is still expected to suffer high winds, ice, snow and rain and storm surges of three feet or more. 

Moving image of April 2007 nor'easter.

(Credit: NOAA)

JetBlue, the biggest carrier at JFK, had just gotten its flights back on schedule after the massive disruption caused by Sandy.

Airlines are quick to cancel flights so as to avoid stranding equipment and crews. 

And passengers should take note that airlines are not required to pay for hotels, food, cabs or anything else when flights are canceled because of weather. 

What's a Nor'easter?

You don't have to be an old salt to be familiar with Nor'easters. A Nor'easter is a cyclonic storm that moves along the east coast of North America. It’s called “nor’easter” because the winds over coastal areas blow from a northeasterly direction -- and they tend to occur in very crowded areas, where they cause maximum disruption.

The phrase, “crowded coastline” might conjure up images of tanned tourists on the warm, sunny beaches of Florida and California. But, the most crowded coastal corridor in the United States stretches between Washington, D.C., and Boston — and includes the densely urban cities of Baltimore, Philadelphia and New York.

In this region, 180 coastal counties support 77 percent of the area’s total population, all crammed into urban areas with transportation systems that are filled to capacity even under ideal circumstances.

Nor’easters may occur any time of the year, but are most frequent and strongest between September and April. These storms usually develop between Georgia and New Jersey within 100 miles of the coastline and generally move north or northeastward. 

Nor’easters typically become most intense near New England and the Canadian Maritime Provinces. In addition to heavy snow and rain, nor’easters can bring gale force winds greater than 58 miles per hour. These storms can produce rough seas, coastal flooding and beach erosion. 

AT&T has announced three more new smartphones in its growing Windows Phone 8 portfolio.

Beginning Nov. 9, AT&T customers will be able to purchase the Nokia Lumia 920 for $99.99 and the Nokia Lumia 820 for $49.99. Before Thanksgiving, customers can pick-up the Windows Phone 8X by HTC with 16 GB of memory for $199.99.

AT&T also revealed an exclusive version of the Windows Phone 8X by HTC with 8 GB of memory in California Blue and Limelight (yellow) for $99.99. AT&T said it is the only carrier to offer this device in Limelight.

Starting today, Nov. 7, the Nokia Lumia 920 and Lumia 820 will be available for pre-order here and here. So far, AT&T says it has sold more Windows Phones than any other carrier.

"Our Windows Phone portfolio features the best designs for the fantastic experience of Windows Phone 8," said Jeff Bradley, senior vice president, Devices and Developer Services, AT&T Mobility. "Combine that with very exciting prices and our customers have lots of good reasons to choose Windows Phone this holiday season."

Nokia Lumia 920

Among the features found in the Nokia Lumia 920 is an advance in Nokia PureView imaging technology. The 8.7-megapixel camera features advanced floating lens technology, dubbed 'optical image stabilization,' which helps eliminate blur by compensating for hand movement while photos or videos are being shot. The camera in Nokia Lumia 920 can take in five times more light than typical smartphones to capture top quality photos and videos in low light.

Nokia says it has put its largest battery in the Lumia 920, which also includes built-in wireless charging capabilities. For a limited time -- and while supplies last -- AT&T said it will also include a free wireless charging plate with each purchase of a Lumia 920.

The 920 comes with a 4.5-inch PureMotion HD+ ClearBlack display, protected by Corning Gorilla Glass and is optimized for readability in the bright light conditions. It also has a new sensitive touchscreen that lets you type with fingernails or while wearing gloves.

It's available in red, white, black, yellow and cyan.

Nokia Lumia 820

The Nokia Lumia 820 is a mid-range smartphone that has the look and feel of its higher-end sister. It has a ClearBlack display and new sensitive touchscreen -- in a design that supports exchangeable shells. These exchangeable shells, which are sold separately, are available in range of colors and features, including wireless charging.

The Lumia 820 offers the same exclusive content as the Lumia 920, including Nokia Drive, a turn-by-turn voice navigation solution, Nokia Music, a free music streaming service and Nokia City Lens, an augmented reality application that uses the phone's camera viewfinder to provide information about points of interests in the surrounding area.

The Nokia Lumia 820 comes in black.

Windows Phone 8X by HTC

The Windows Phone 8X by HTC also has a unibody design along with a 4.3-inch 720p HD display (1280 x 720 pixels) for enhanced viewing of photos, video and Web pages.

The 2.1-megapixel, 88 degree, wide-angle front-facing camera can capture self-portraits and the faces of up to four friends all at once. The 8-megapixel rear-facing camera with an f/2.0 aperture allows you to capture photos and videos in low light.

AT&T says it's the first-ever Windows Phone 8 smartphone with built-in Beats Audio technology, giving it improved sound. The device has a unique audio amplifier that powers the 3.5mm audio jack and speaker to provide improved sound for music, video and even gaming.

The Windows Phone 8X by HTC will be available in two models -- California Blue with 16 GB of memory for $199.99 and an AT&T exclusive in California Blue or Limelight (yellow) with 8GB of memory for $99.99.

U.S. consumers buy millions of dollars worth of prescription and over-the-counter sleep aids each year but maybe all they need to do for a good night's rest is lose a little weight.

Researchers at Johns Hopkins have completed a study in which they determined that weight loss, whether it’s from dietary changes alone or from diet combined with exercise, can help improve the quality of sleep among people who are overweight or obese.

Weight loss and sleep quality

“We found that improvement in sleep quality was significantly associated with overall weight loss, especially belly fat,” says Kerry Stewart, Ed.D., professor of medicine at the Johns Hopkins University School of Medicine and director of clinical and research exercise physiology.

Stewart and colleagues presented their findings this week at the American Heart Association Scientific Sessions.

For the six-month study, the researchers enrolled 77 people who had type 2 diabetes or pre-diabetes. The participants, all of whom also were overweight or obese, were randomly assigned to one of two groups.

One group went on a diet. The other combined a healthy diet with exercise. Then their sleep patterns were recorded.

20 percent improvement in sleep

Although a variety of sleep problems were reported by the participants, none stood out as being the most common, so the researchers analyzed a composite score, which reflects overall sleep health. What they found was that both groups improved their overall sleep score by about 20 percent with no differences between the groups.

“The key ingredient for improved sleep quality from our study was a reduction in overall body fat, and, in particular belly fat, which was true no matter the age or gender of the participants or whether the weight loss came from diet alone or diet plus exercise,” Stewart said.

Sleep may be an underestimated component of good health. It's important in general for good physical and mental health, as well as for a healthy cardiovascular system, Stewart says.

Depending on the cause, chronic sleep disruptions increase the risk of high blood pressure, heart attack, stroke and irregular heartbeats. Obesity, Stewart says, increases the risk of sleep problems.

Pills may not be the solution. Hitting the gym might be.

Looking forward to that long Thanksgiving weekend with a lot of down time to spend with the family? Not so fast.

While giving time off remains a tradition among most U.S. employers, more than a third of those surveyed will require at least a few employees to report to work on the holiday, according to the latest Bloomberg BNA survey of year-end holiday practices.

Nearly three out of four responding employers (73 percent) have scheduled both Thanksgiving Day and the following Friday (Black Friday) as paid days off for all or most of the workforce this year, pretty much the same as last year and and 2010.

There are exceptions

While nearly all employers (99 percent) have scheduled a paid day off for Thanksgiving Day, some workers will have to forego or postpone holiday dinners with family and friends. This year, 36 percent of establishments will require at least some of their employees to work on the holiday -- a moderate increase in reported work requirements from the previous three years.

Still, Thanksgiving work shifts were more common a decade or longer ago. In fact, nearly half of employers surveyed in 2002 required some employees to work on Thanksgiving Day.

Other findings

• Thanksgiving gifts from employers have waned somewhat since the mid-2000s, but a small circle of employers -- manufacturers, especially -- seem to be holding fast to their November traditions. About one in 10 surveyed organizations will send workers home with a token of their appreciation in late November, in line with survey findings over the past half-decade but reflecting a modest decline from the late 1990s and early 2000s.
• Manufacturers remain most generous with paid time off at Thanksgiving. More than nine out of 10 manufacturing companies (93 percent) have scheduled paid days off for both Thursday, Nov. 22 and Friday, Nov. 23 in 2012. A four-day weekend is on tap at about seven in 10 surveyed non-manufacturing companies (69 percent) and roughly two-thirds of non-business establishments (65 percent), including health care facilities and government agencies.
• Workers in small companies stand a much better chance of a long Thanksgiving weekend than their colleagues in larger organizations. Two paid days off for Thanksgiving have been scheduled by more than four out of five firms with fewer than 1,000 employees (81 percent); workers at less than three-fifths of larger organizations (56 percent) will be so fortunate.
• Skeleton crews and partial operations appear to be the prevailing practice among employers that will not shut down completely on Nov. 22. Five percent of responding employers will have production staff on hand for Thanksgiving, and nine percent will require some professional staff to be on site. In contrast, 16 percent reported that security or public safety employees must work on the holiday, 15 percent have scheduled Thanksgiving shifts for service or maintenance employees, and 13 percent will require technicians to work on Nov. 22.
• Employees who work on Thanksgiving Day will be rewarded for their sacrifices, as most who must miss or postpone their Thanksgiving dinners can expect something extra in their paychecks. Only nine percent of firms imposing Thanksgiving shifts this year will pay workers only straight time for working on the holiday, with no extra pay or compensatory time off. Conversely, well over half of the establishments expecting holiday work will provide overtime pay, including 22 percent that will pay double-time to workers who pull Thanksgiving shifts.

A company that provides management services to more than 300 payday loan and check cashing stores, and an affiliated company that owns and operates several stores, will pay $101,500 to settle Federal Trade Commission charges that they violated federal law by allowing sensitive consumer information to be tossed into trash dumpsters.

The FTC charged that PLS Financial Services, Inc., and The Payday Loan Store of Illinois, Inc., failed to take reasonable measures to protect consumer information, resulting in the disposal of documents containing sensitive personal identifying information – including Social Security numbers, employment information, loan applications, bank account information, and credit reports – in unsecured dumpsters near several PLS Loan Stores or PLS Check Cashers locations. 

PLS Group, Inc., which owns PLS Financial Services and The Payday Loan Store of Illinois, was also named in the complaint.

According to the complaint, the companies failed to take reasonable steps to protect against unauthorized access to consumer information in the disposal of credit reports.  They also allegedly violated the Gramm-Leach-Bliley Safeguards Rule and Privacy Rule, which require financial institutions to develop and use safeguards to protect consumer information, and deliver privacy notices to consumers.  

Further, the FTC charged that all three defendants violated the FTC Act by misrepresenting that they had implemented reasonable measures to protect sensitive consumer information.

This is the third time the FTC has charged a violation of the Disposal Rule, which requires that companies dispose of credit reports and information derived from them in a safe and secure manner.  

According to the FTC complaint, PLS Group owns approximately two dozen operating companies, such as The Payday Loan Store of Illinois, that in turn own and operate more than 300 retail stores in nine states under the names PLS Loan Stores and PLS Check Cashers.  These stores offer a variety of products and services, including payday loans, check cashing, automobile title loans, debit cards, phone cards, and notary services.  PLS Financial Services provides management services to the PLS Loan Stores and PLS Check Cashers locations, including establishing their policies and procedures for the handling and disposal of consumer financial information.

While most eyes were on the presidential contest between Barack Obama and Mitt Romney, a number of states voted on ballot initiatives having to do with marijuana -- and not just medical use.

Colorado became the first state to legalize marijuana for recreational use, not just for medicinal purposes. The legalization measure was approved on vote of 53 to 47 percent. Amendment 64 permits people in Colorado to possess up to an ounce of marijuana but does not allow them to use it in a public place. It also allows residents to grow up to six marijuana plants in an area not accessible to others.

Colorado residents would be able to purchase marijuana at one of the medical marijuana dispensaries that currently require a doctor's prescription.

Washington voters also decided to allow recreational marijuana use. The measure allows residents 21 years old or older to purchase up to one ounce from a licensed distributor.

In Oregon, a similar ballot initiative failed to get enough votes to pass.

Medical marijuana

There were also some medical marijuana questions on the ballot. In Massachusetts, voters approved a measure to allow marijuana as a medical treatment but a similar proposal failed in Arkansas. In Montana, a proposal to restrict medical marijuana use appeared to have passed.

GrowLife, Inc., a company active in the medical marijuana field, says the drug is growing in acceptance.

"Marijuana has been shown to be very effective in many different medical scenarios," said GrowLife, Inc. CEO Sterling Scott. "The federal government has long grouped marijuana in the same group as cocaine and heroin, but the reality is that the drug has helped many thousands of people overcome chronic symptoms related to diseases like cancer, glaucoma, AIDS, Crohn's, ALS and Alzheimer's among others."

The Colorado and Washington votes may be the most significant in that they are the first U.S. jurisdictions to decriminalize the recreational use of marijuana. But the new measures face a highly uncertain future.

Still against U.S. law

Possession of marijuana is a violation of U.S. law and federal officials have made clear that this statute remains in force, trumping any state initiatives. When Arizona passed its own immigration law the Justice Department sued, with the U.S. Supreme Court overturning portions of the state law. Experts expect the same to happen with the new marijuana laws.

In fact, the Justice Department does not recognize the legality of medical marijuana in any state but, to date, has seldom intervened.

Boehringer Ingelheim Pharmaceuticals is conducting a nationwide recall of a single manufacturing lot of Pradaxa (dabigatran etexilate mesylate), 75mg 60 US, NDC 0597- 0149-54, lot 201900, Exp January 2015.

Pradaxa is used to reduce the risk of stroke and systemic embolism in patients with non-valvular atrial fibrillation (NVAF).

The recall is being conducted due to a potential packaging defect on this lot that may compromise the bottle integrity. A damaged bottle could allow moisture to get into the bottle and, thus, may impair the quality of Pradaxa.

As a consequence a patient may not receive a fully effective dose of Pradaxa 75mg, which would increase his or her risk of experiencing an ischemic stroke. Boehringer says the risk is small -- not zero. Therefore Pradaxa is being recalled at the patient level as a precautionary measure.

Actions for patients

Patients should continue to take the product as directed until they obtain replacement to assure there is no interruption of therapy.

The company says it believes most of the potentially affected bottles have been returned, but if a person has or receives a bottle of Pradaxa 75mg from the potentially affected lot he should return it to the pharmacist as soon as possible for replacement at no charge.

Information has been sent to pharmacists alerting them of the details pertaining to this recall. As described in the recall communications, pharmacists who may have dispensed Pradaxa capsules to patients from manufacturing lot 201900 are instructed to contact those patients to return the product lot back to the pharmacy.

Distributors/retailers that have not received a recall packet should contact GENCO Pharmaceutical Services, 6101 North 64th Street, Milwaukee, WI 53218.

The current medication you're using to treat rheumatoid arthritis (RA) not working? You may have an alternative.

The U.S. Food and Drug Administration (FDA) has approved Xeljanz (tofacitinib) to treat adults with moderately to severely active RA who have had an inadequate response to, or who are intolerant of, methotrexate.

RA is an autoimmune disease, in which the body's immune system mistakenly attacks healthy tissue leading to inflammation of the joints and surrounding tissues. According to the Centers for Disease Control and Prevention, RA affects an estimated 1.5 million Americans. Xeljanz, a pill taken twice daily, works by blocking molecules called “Janus kinases,” which are important in the joint inflammation of RA.

A new treatment option

“Xeljanz provides a new treatment option for adults suffering from the debilitating disease of RA who have had a poor response to methotrexate,” said Badrul Chowdhury, M.D., Ph.D., director of the Division of Pulmonary, Allergy, and Rheumatology Products in the FDA’s Center for Drug Evaluation and Research.

Xeljanz is being approved ahead of the product’s prescription drug user fee goal date of Nov. 21, 2012, the date the agency was scheduled to complete review of the drug application.

The safety and effectiveness of Xeljanz were evaluated in seven clinical trials in adult patients with moderately to severely active RA. In all of the trials, patients treated with Xeljanz experienced improvement in clinical response and physical functioning compared to patients treated with placebo.

Risk of infection

The use of Xeljanz was associated with an increased risk of serious infections, including opportunistic infections (infections that occur primarily when the immune system is suppressed), tuberculosis, cancers and lymphoma. Xeljanz carries a Boxed Warning regarding these safety risks. Xeljanz treatment is also associated with increases in cholesterol and liver enzyme tests and decreases in blood counts.

The FDA approved Xeljanz with a Risk Evaluation and Mitigation Strategy (REMS), which consists of a Medication Guide advising patients about important safety information and a communication plan to inform health care providers about the serious risks associated with Xeljanz.

Post-marketing study required

To study the long-term effects of Xeljanz on heart disease, cancer, and serious infections, the FDA is requiring a post-marketing study that will evaluate two doses of Xeljanz and include a group of patients on another approved treatment to serve as a comparison.

The most common adverse reactions in clinical trials were upper respiratory tract infections, headache, diarrhea, and inflammation of the nasal passage and the upper part of the pharynx.

Xeljanz is marketed by New York-based Pfizer Inc.