Current Events in January 2013

C & H Meat Company of Vernon, CA, is recalling approximately 79,400 pounds of marinated pork and chicken products because they are misbranded in that they contain monosodium glutamate (MSG), which is not declared on the label.

The products subject to recall include:

• 10-oz. packages and bulk packages of Korean Brand BBQ Flavored Spicy Pork Butt
• 10-oz packages and bulk packages of Marinated Spicy Pork Butt
• 10-oz. packages and bulk packages of Korean Brand BBQ Flavored Spicy Boneless Chicken Leg Meat

The products subject to recall may bear the establishment number "EST. 4831" or "P-4831" inside the USDA mark of inspection. These products were produced on various dates through Jan. 16, 2013, and distributed to retail establishments and restaurants in California.

There have been no reports of adverse reactions due to consumption of these products.

Consumers with questions should contact Steve Kim at (323) 261-5388.  

On the whole, home prices are making a recovery.

The Federal Housing Finance Agency’s (FHFA) monthly House Price Index (HPI Washington, DC was up 0.6 percent on a seasonally adjusted basis in November. In addition, the previously reported 0.5 percent increase in October was revised upward to a gain of 0.6 percent.

For the 12 months ending in November, U.S. prices rose 5.6 percent. Still, the HPI is 15.2 percent below its April 2007 peak and is roughly the same as the August 2004 index level. National home prices have not declined on a monthly basis since January 2011.

Earlier this week, the National Association of Realtors (NAR) reported the national median existing-home price rose 1.5 percent in December from a year earlier and the strongest showing since November 2005 .

For all of 2012, NAR says the preliminary median existing-home price was up 6.3 percent from 2011, and the strongest annual price gain since 2005 when the median price rose 12.4 percent.

Regional breakdown

For the nine census divisions, the FHFA reports seasonally adjusted monthly price changes from October to November ranged from -1.0 percent in the East North Central division to +2.1 percent in the Mountain division. The 12-month changes ranged from +0.5 percent in the Middle Atlantic division to +14.8 percent in the Mountain division.

FHFA uses the purchase prices of houses with mortgages owned or guaranteed by Fannie Mae or Freddie Mac to calculate the monthly index.  

Homestead Creamery of Jamesport, MO, is withdrawing a batch of its Flory's Favorite cheese from the marketplace.

Preliminary test results received from the Missouri State Health Laboratory indicate the cheese may be contaminated with Shiga-Toxin producing E.coli, which can lead to food borne illness. Tests to confirm this are cntinuing.

The Homestead Creamery plant license to sell milk products in Missouri has been temporarily suspended, pending the results of the investigation by the State Milk Board and Missouri departments of Agriculture and Health and Senior Services.

The withdrawn product, Flory's Favorite, is a 60-day aged cheese made with raw milk. Packages of the cheese are marked with "Packed On 210" on the label. This affects approximately 250 pounds of cheese and does not affect any other dairy products from Homestead Creamery.

The withdrawn cheese was sold at Homestead Creamery facility in Jamesport, MO, and may have been sold by the following retailers:

• HyVee in Liberty, MO
• HyVee in Trenton, MO
• Benedict Builders' Farm in Knob Noster, MO
• Milton Creamery in Milton, IA

The Missouri State Milk Board continues to review the company's records to determine when consumers may have purchased the product.

Anyone who has purchased the cheese may return the unused portion to the store from which they purchased the product.

Many of us know what it is like to be around someone with a hearing loss -- or even experience such a loss ourselves. But the constant asking or being asked to repeat something isn't the worst of it.

According to a new study by hearing experts at Johns Hopkins, older adults with hearing loss are more likely to develop problems thinking and remembering than older adults whose hearing is normal.

In the study, volunteers with hearing loss, undergoing repeated cognition tests over six years, had cognitive abilities that declined some 30-to-40 percent faster than in those whose hearing was normal. Levels of declining brain function were directly related to the amount of hearing loss, the researchers say.

Direct correlation

On average, older adults with hearing loss developed a significant impairment in their cognitive abilities 3.2 years sooner than those with normal hearing.

The findings, reported in the JAMA Internal Medicine, are among the first to emerge from a larger, ongoing study monitoring the health of older blacks and whites in Memphis, Tenn., and Pittsburgh, Pa. Known as the Health, Aging and Body Composition, or Health ABC study, the latest report on older adults involved a subset of 1,984 men and women between the ages of 75 and 84, and is believed to be the first to gauge the impact of hearing loss on higher brain functions over the long term.

According to senior study investigator and Johns Hopkins otologist and epidemiologist Frank Lin, M.D., Ph.D., all study participants had normal brain function when the study began in 2001, and were initially tested for hearing loss, which hearing specialists define as recognizing only those sounds louder than 25 decibels.

"Our results show that hearing loss should not be considered an inconsequential part of aging, because it may come with some serious long-term consequences to healthy brain functioning," says Lin, an assistant professor at the Johns Hopkins University School of Medicine and the university's Bloomberg School of Public Health.

"Our findings emphasize just how important it is for physicians to discuss hearing with their patients and to be proactive in addressing any hearing declines over time," says Lin. He estimates that as many as 27 million Americans over age 50, including two-thirds of men and women aged 70 years and older, suffer from some form of hearing loss. More worrisome, he says, only 15 percent of those who need a hearing aid get one, leaving much of the problem and its consequences untreated.

Why does this happen?

Possible explanations for the cognitive slide, Lin says, include the ties between hearing loss and social isolation, with loneliness being well established in previous research as a risk factor for cognitive decline. Degraded hearing may also force the brain to devote too much of its energy to processing sound, and at the expense of energy spent on memory and thinking. He adds there may also be some common, underlying damage that leads to both hearing and cognitive problems.

Lin and his team already have plans under way to launch a much larger study to determine if use of hearing aids or other devices to treat hearing loss in older adults might forestall or delay cognitive decline.

In the latest study, which began in 1997, all participants were in good general physical health at the time. Hearing tests were given to volunteers in 2001, during which they individually listened to a range of soft and loud sounds, from 0 decibels to 100 decibels, in a soundproof room.

Brain functioning was also assessed in 2001, using two well-recognized tests of memory and thinking ability, known as the Modified Mini-Mental State (3MS) and Digit Symbol Substitution (DSS), respectively. Included in the 3MS test, study participants were asked to memorize words, given commands or instructional tasks to follow, and asked basic questions as to the correct year, date and time. In the DSS test, study participants were asked to match specific numbers to symbols and timed on how long it took them to complete the task.

Both types of tests were repeated for each study participant three more times until the study ended in 2007, to gauge cognitive decline. Factors already known to contribute to loss of brain function were accounted for in the researchers' analysis, including age, high blood pressure, diabetes and stroke.

During the housing boom, investors -- amateurs and professionals -- engaged in house "flipping" for fun and profit. They would buy or build a house and almost immediately sell it. A lot of money was made that way.

It wasn't that hard to do because it was easy to get a loan and home prices kept going up. But the housing market crash of 2008 brought an end to flipping -- or did it?

The A&E cable TV program "Flip This House," which follows investors and contractors as they buy, renovate and sell homes, is as popular as ever. And though there isn't as much flipping going on as there was a few years ago, the practice is making a strong comeback. According to real estate portal RealtyPin.com, the number of flips rose 25% nationwide in the first six months of 2012, compared to the same period of 2011.

How can that be?

Days of easy money

"Before the bubble burst, flipping was something that you saw going on all over the country," said James Paffrath, RealtyPin.com's CEO. "After all, it was easy to get financing, so no matter how high purchase prices were, it didn’t matter. Investors could qualify for a loan, buy what they wanted with very little cash down, make some upgrades, then turn around and sell for a much higher price. They didn’t need a ton of cash on hand to make it work."

Maybe, but home prices were escalating rapidly back then. Today, not so much. How are flippers making money in this environment? It turns out they're doing it a little differently.

For one thing, they aren't borrowing the money. They're paying cash. The monthly existing home sales reports from the National Association of Realtors (NAR) show that cash sales consistently make up about 30 percent of the sales each month and it's investors primarily who pay with cash.

Cash is king

"Because it’s so much tougher to qualify for a mortgage than it was during the height of the housing boom, many investors prefer to skip all of the red tape and pay with cash," Paffrath said. "That way, they can make purchases a lot faster than they would if they had to go through the traditional lender process."

There are some disadvantages to paying cash. It ties up all your capital, limiting the number of "flips" you can do. But that might turn out to be an advantage, keeping investors from getting over-extended, which happened a lot during the bubble days.

And even though investors are limited to what they can buy with their own money, the post-crash market has offered up lots of bargains in the form of foreclosures and short-sales, so their are plenty of properties in their price range.

Fine, so investors can buy homes, fix them up and put them back on the market. But we've been in a housing recession for a while. Will anyone buy them? Paffrath says they will but you have to pick your markets.

Rising from the ashes

"Right now, Phoenix seems to be the most popular place for flipping," he said. "At the end of 2012, more than one-quarter of buyers in Phoenix were investors, most of whom were from out of state. Because home values are rising so quickly, flippers don’t even have to make any upgrades to the homes. All they have to do is hold onto the property for a few months and let natural area price increases work their magic."

How much can they make? Paffrath says home values in Phoenix are rising about two percent per month. Put a little sweat equity into giving the place some curb appeal and investors can reap a nice return.

By the same token, Paffrath says there isn't a lot of flipping going on in expensive housing markets like Seattle. The average cost of a home -- even one in foreclosure -- can be more than an investor wants to tie up. After all, they aren't using "other people's money" now but their own.

Adding value

Another difference with today's flipping is the requirement to add some value. That usually didn't happen in the bubble days because it didn't have to. It was a "sellers market." Things are different now.

With the housing market still on the mend, Paffrath says the only way you're going to make a significant profit on a flipping project is to actually flip the house -- and quickly. That means going in, updating out-of-date appliances, making all of the necessary repairs, both major and minor, and doing an overall renovation to the home. You'll have to spend money. Just don't spend too much.

"If you plan on renovating the home, you run the risk of over-improving – meaning that you improve the home beyond the scope of the rest of neighborhood," Paffrath said. "Buyers aren’t going to spend $200,000 on a house, when the rest of the homes around it are only worth $100,000. So, you have to know exactly what the area around you is worth before you start upgrading anything. Otherwise, you could end up wasting a ton of money."

Flipping could become even more widespread as the housing market continues to recover. Paffrath points out that last last year FHA waived an anti-flipping regulation that would have prevented the agency from insuring homes that were sold within 90 days of being purchases. He thinks they did it to encourage more people to start flipping, which would, theoretically at least, jump-start the housing market.

You'd think the hotel reservations market was already crowded enough, with Priceline, Travelocity, Hotels.com and countless other sites all claiming to find you the greatest hotel room ever at the lowest price imaginable. 

Wading into the middle of all this is Booking.com, a European site that has not previously promoted itself heavily in the U.S. 

Modestly referring to itself as "Planet Earth’s #1 accommodation site," Booking.com today launches its first-ever brand campaign, with $35 million worth of ads online, on TV and in movie theaters.

“With over 265,000 participating hotels and accommodations in 178 countries, and over 5,000 people worldwide dedicated to serving travelers since 1996, we believe Booking.com creates more of these incredible moments for people than anybody else,” said Paul Hennessy, Booking.com’s Chief Marketing Officer. “That moment of joy, when you realize just how great your accommodation is, and how amazing your trip is going to be, is the focus of the campaign.”

Well, could be, but even though it hasn't advertised heavily in the U.S. before, Booking.com is not exactly unknown to ConsumerAffairs readers.

"Booking.com's representatives sound professional on the phone, but they will do nothing to help you if the hotel frauds you," said Ray of Richmond, Calif., who complained that the Parayso Beach Hotel in Mexico charged his credit card not only for his deposit but also the full cost of his stay -- thus double-billing him for a few days.

"Don't use this service for Jahorina in Bosnia and Herzegovinia," said Radovan of Montenegro. "My reservation for a Hotel Snjeko was canceled the day before the trip. Suddenly, there was no longer a valid discount offered. The justification was, believe it or not, 'do not see the numbers on the credit card.'"

Sets the tone

The Booking.com advertising campaign is being managed by Wieden+Kennedy Amsterdam.

“The accommodation sets the tone for the trip. When it's wrong, the trip can never be what you've imagined. But when it's right, you have won. You will sleep amazingly well," said W+K creative director Mark Bernath. "You will be funnier and more charming.  And those who have entrusted you with the booking will consider you to have superhuman decision-making powers. You are a booking genius.”

Cute, but don't try that line with Maurice of Montreal.

"They advertised a room at the Marriott Courtyard in Toronto on January 11, 2013 that was supposedly discounted by over 70%. When I checked into the hotel and asked about the normal rate, it was the same as that posted by Booking.com. It simply advertised the normal rate on its site but claimed it was discounted from $399," he said in a ConsumerAffairs posting. "The room, needless to say, was a complete disappointment. It's very basic, not that different from a Super 8. It's a complete scam. I will never use this site again."

And just who is this Booking.com anyway? Well, it turns out it's part of the Priceline Group. Yes, that Priceline. It operates separately from the Priceline so familiar to U.S. travelers but is owned by the same corporate parent. 

"Their customer service talk sweet, but they do nothing for the customer," said M.A. of Charlotte, N.C.  "In a trip to Florida, I booked 2 rooms in a '3 star' hotel according to their classifications. The hotel name was Hollywood Beach Hotel on 1915 North Ocean Drive, Hollywood, FL. The 3 star hotel beds had hair, hair clips, blood clots, freezer dripping melted ice on the floor, coffee in the coffee maker, dirty baths and showers, to name a few.

Read more Booking.com reviews

As anyone who flies on commercial aircraft well knows, passengers are required to turn off cell phones and other mobile devices when the door is closed for take-off.

Today, with nearly every human on the planet carrying a smartphone and perhaps an iPad, Kindle or other gadget, the task of enforcing that rule is a large one. Flight attendants, whose job it is to enforce that rule, are apparently losing patience and, if passengers are to be believed, are pretty much operating on a zero tolerance policy.

One may recall the December 2011 incident in which actor Alec Baldwin was unceremoniously booted off an American Airlines flight when a flight attendant said he refused to stop playing a word game on his smartphone as the plane sat on the tarmac. But celebrities are not the only ones complaining.

Stranded in Aruba

Anatoly, of New York, sent ConsumerAffairs a message thread he exchanged with Jet Blue customer service after he said he was bounced from a flight from Aruba to JFK.

According to Anatoly's side of the story, he was approached by a flight attendant prior to take off and told to turn off his cell phone.

“I told her that my phone is in safe AIRLINE MODE, and I let her see it,” Anatoly writes. “At the same moment she threatened with her finger and yelled, 'I said, turn off the phone!' I told her that her behavior is unacceptable. And this kind of voice and the way to approach looks familiar to me from the jail movies.”

That was probably not a good response, since Anatoly said the flight attendant went straight to the captain to demand that he be put off the plane. Anatoly said he explained the situation to the captain, who then agreed to allow him back on.

“When the flight attendant saw me on board again she start to scream out that I am not allowed to fly with them anymore,” Anatoly said.

Jet Blue response

The pilot, he said, then sided with the flight attendant and Anatoly was left in Aruba to fend for himself. A Jet Blue customer service rep named Terry was understanding.

“We assure you that the details and specifics of your situation will be discussed with our entire In-flight Crew, including the Captain,” she wrote. “We take your concerns seriously, and learn from your feedback.”

But Terry also made clear that, as far as airline policy in concerned, there is no such thing as “airplane mode” and all cell phones must be completely powered down prior to takeoff. Anatoly's point is that he thinks he could have been informed in a nicer way.

In fact, frequent flyers will tell you that flight attendants clearly say phones must be completely off, not in airplane mode.

Is this thing off?

Sonia, of Belleville, N.J., says she and her husband were flying on Southwestfrom Phoenix to Newark. As they boarded Sonia said she powered down her phone and reminded her husband to do the same.

“He showed me that he pressed the on/off button and the screen on his phone went blank,” Sonia wrote in a ConsumerAffairs post. “I put his phone in his pocket and fell asleep. We were tired after a long day.”

But before the plane took off, Sonia said her husbands phone started ringing! As her husband fumbled with the device to try to power it down, a flight attendant, summoned by the passenger behind them, came up the aisle.

Honest mistake

“The stewardess got up, told my husband that when they said off, it means no current going through the unit, Sonia wrote. “My husband tried to show her how he turned his phone off and tried to explain that was an honest mistake that he really thought it was off. She snatched the phone out of my husband's hand, turned it off, and told him that if we were at the gate, she would have taken him back and that she could turn the plane around.”

Sonia said they were allowed to continue the flight but the flight attendant warned them they would have to speak to security officers at the gate when they arrived in Newark.

An overreaction? These and other passengers think so. But its also impossible to know how many times a day flight attendants have to carry on similar conversations. Maybe they start out reasonable enough but at the end of the day, who knows?

Concerned about disruptions

What is known is the union representing flight attendants, The Association of Flight Attendants-CWA (AFA) is concerned about electronic devices and any future rule change that might allow their in-flight use. Last week the uniion joined government and industry experts in Washington to discuss the future of in-flight use of portable electronic devices. The committee, organized by the Federal Aviation Administration (FAA), has been tasked with evaluating regulations, policies and procedures that attempt to manage the safe use of portable electronic devices during flight.

“Flight Attendants have long been concerned about the potential for disruptions to safety and security from the use of portable electronic devices on commercial flights,” the union said in a statement. “Responsible for responding to any emergency as the last line of defense, we are prepared to have this important discussion on how the use of these devices present complex challenges for Flight Attendants in the cabin. Working in collaboration with the FAA, other federal agencies and various industry experts, AFA will assist efforts to evaluate these important issues and work to ensure that our nation’s aviation system is the safest in the world.”

The committee is experted to report its recommendations to the FAA in six months. In the meantime, airline passengers should probably double check to ensure their devices are turned off when they board – and not attempt a conversation with flight attendants about it.

Remember the promises we made to ourselves when we were young? Those daydreams about all of the things we were going to do when we got older?

I’m not talking about those kiddy dreams about pitching for the Yankees or becoming the first astronaut to visit Neptune, I’m talking about the goals we developed late in high school or in college.

During those days maybe you started making clothes for your friends that were well received, so you decided to head to New York to try your hand at a fashion business. Or maybe you’ve taken your mother’s recipes -- that you couldn’t care less about as a child -- and decided you wanted to open your own little café or luncheonette.

But somewhere in-between coming up with that idea and settling into the real world, those entrepreneurial ambitions started to subside and began to be replaced by hefty bills and an immediate need for employment. Plus, the pressure from your folks to “get a real job” didn’t help your level of ambition all that much either.

Most of us throughout the years have heard the advice of following your dreams, doing what you love, monetizing your passions, blah, blah, blah -- but is that really better than finding a job and having a consistent paycheck, a daily routine and some level of job security?

Stuck in jobs

It’s a question that many people go back and forth on, especially those people who are currently stuck in jobs they hate.

And we all know that trying to turn a passion into a fulltime business is risky, but just how risky is it? To be an employee or to be an entrepreneur -- for many, that is the true question.

According to the U.S. Small Business Administration seven out of ten businesses shut down within two years and only 25 percent last for 15 years or longer, which shows just how large the potential for failure really is when starting a company.

But that shouldn’t discourage people from wanting to be a business owner, said Scott Shane in a Washington Post interview. Shane is a professor who teaches entrepreneurship at Case Western University.

He says quitting your job in order to start a business might not be the best game plan; instead you should work your business and your 9-to-5 simultaneously, which will better help your company get off the ground.

“Unemployed people tend to not start as successful companies on average as people who are employed do,” he said. “You’re not going to get as many successful businesses with young unemployed people as if you put your money into encouraging entrepreneurship among employed middle-aged people.”

Cash flow

In short, it takes a consistent flow of cash in order to add the things to your business that it needs. Being able to use your own capital to build your company -- at least in the beginning stages -- is preferable to starting out under any kind of debt.

In fact, Shane says if you hate your job but love the field, it’s best to stay in your position and learn all you can about the industry, that way it will be easier for you to build and maintain a customer base -- especially if you’ve already established a good reputation within that industry.

“Most people start businesses to pursue customers with similar products or services as their previous employers,” said Shane. “What helps to organize a business is industry knowledge, and that knowledge is learned by doing.”

But not all future entrepreneurs are working a 9-to-5, and many don’t want to wait until they’ve mastered their industry before they start their companies.

A good portion of wannabe entrepreneurs still happen to be students, and many are eager to leave the college world for the business world, regardless of how huge the risk of failure is.

Take Eric Zhang for example a student at UC Berkeley who dropped out for a short while to pursue his dreams of starting an online company. Zhang has an opposite view of some experts that say people should wait to gain experience and money before starting a business.

The variance in philosophy could easily be attributed to generational differences, as many young people who begin start-ups may feel waiting for years is just too conservative, and if one waits until there’s no risk involved before starting business, they’ll be waiting forever.

No pain, no gain

“Entrepreneurship is never about ‘I’m going to wait until the risk is lowest,” Zhang told a California news outlet. “It’s always about taking every opportunity, even if the risk is high. And if you take 10 opportunities and you fail nine times and succeed once, then you’ve still succeeded.”

Many experts also say that having more than one business idea is key since the potential for one business failing is so significant.

Also, having a lot of resiliency is equally important when taking that entrepreneurial leap, due to the many no’s you may get and the amount of doors that will close before you even get a chance to get one toe across.

So again, the main question is should one be okay with being an employee if they ever had entrepreneurial ambitions or should they just throw risk and caution to the wind and hope it doesn’t blow back and painfully strike them?

The answer may lie in a person first defining what success is to them.

If success is being able to be good at a particular job — whether you love it or not — while making enough money to pursue outside interests like traveling, shopping or dining out, the entrepreneur's life may not be worth it for you.

But if just learning how to cope at your current job, while your mind is always on your passion, and you’re willing to take on the huge potential of your business not thriving, you may want to give being a company owner a shot.

Not always either-or

Also, it’s important to remember when it comes to deciding whether to stay at a job or start a business it’s not always either-or.

Not every start-up has to have Facebook-like ambitions, and people can work at their jobs, while still trying to turn the dreams of their youth into something profitable.  

As a matter of fact, that’s what many experts suggest you do.

Groupon Inc. has stopped all current and future gun-related deals, apparently bowing to customer pressure a month after the deadly mass shooting at Sandy Hook School in Newtown, Conn.

“All scheduled and current gun-related deals featured on Groupon North America, including shooting ranges, conceal-and-carry and clay shooting, have been placed on hiatus while we review internal standards that shape the deal inventory we feature,” spokeswoman Julie Mossler said. “The category is under review following recent consumer and merchant feedback."

The Chicago-based company didn't say how long the hiatus will last.

Some businesses whose deals were canceled reacted angrily. A Texas gun shop owner was calling for a Groupon boycott, media reports said. There was no word from LivingSocial or other daily deals sites about their plans, if any.

There was no immediate reaction from the National Rifle Association (NRA). However, in response to President Obama's inaugural address, NRA executive vice president Wayne LaPierre repeated the organization's opposition to toughened gun laws.

"Attacking firearms and ignoring children is not a solution to the crisis we face as a nation. Only honest, law-abiding gun owners will be affected and our children will remain vulnerable to the inevitability of more tragedy," LaPierre said in a commentary on the NRA website.

AT&T is buying Alltel's wireless operations for $780 million in cash, saying the deal will improve its coverage in rural areas.

Under terms of the agreement, AT&T will acquire wireless properties, including licenses, network assets, retail stores and approximately 585,000 subscribers from Alltel's parent company, Atlantic Tele-Network.

Alltel's network covers about 4.6 million people in mainly rural areas across six states — Georgia, Idaho, Illinois, North Carolina, Ohio, and South Carolina.

Federal regulators are expected to review and approve the deal, the companies said Tuesday. The companies predict the deal will close in the second half of the year.

AT&T said the deal includes spectrum in the 700 MHz, 850 MHz and 1900 MHz bands and is largely complementary to AT&T’s existing network. ATNI currently operates a retail CDMA network for its subscribers in these areas. AT&T said the acquisition means that Alltel customers and AT&T customers who roam in these areas will "enjoy an enhanced mobile Internet experience."

The Federal Trade Commission (FTC) wants to shut down an operation that allegedly placed more than $70 million in bogus charges on consumers’ phone bills -- charges for services the consumers never ordered, did not authorize and often did not know they had.

In addition, the agency has asked a U.S. district court to freeze the operation's assets while the case moves forward.

Cramming crackdown

As part of a continuing crackdown on fraud and deception, the FTC filed a complaint against American eVoice, Ltd., eight other companies, Steven Sann, and three other people for "cramming" unauthorized charges onto consumers’ phone bills.

The complaint also alleges that the Missoula, Montana-area defendants transferred the proceeds from their illegal cramming operation to a purported non-profit, Bibliologic, Ltd., controlled by Steven Sann.

Hundreds of consumers complained that charges from $9.95 to $24.95 per month suddenly appeared on their phone bills without their authorization. The FTC claims defendants told phone companies and third party “billing aggregators” that the consumers had authorized the charges by filling out forms on the internet. Since January 2008, according to the complaint, the defendants have billed consumers for more than $70 million.

Additional charges

The FTC alleged that the defendants violated the Federal Trade Commission Act by:

• unfairly billing consumers for services they did not authorize; and
• deceptively representing that consumers were obligated to pay for the services.

The FTC also alleged that defendants channeled their illegal proceeds to Bibliologic, and that the purported non-profit organization has no right to the funds and must disgorge them to the FTC.

The complaint names as defendants Steven Sann; Terry Lane (aka Terry Sann); Nathan Sann; Robert Braach; American eVoice, Ltd.; Emerica Media Corp.; FoneRight, Inc.; Global Voice Mail, Ltd.; HearYou2, Inc.; Network Assurance, Inc.; SecuratDat, Inc.; Techmax Solutions, Inc.; and Voice Mail Professionals, Inc. The complaint also names Bibliologic, Ltd. as a relief defendant.

If you thought Botox is used just get rid of wrinkles -- think again.

The U.S. Food and Drug Administration has expanded the approved use of it to treat adults with overactive bladder who cannot use or do not adequately respond to a class of medications known as anticholinergics.

Overactive bladder is a condition in which the bladder squeezes too often or squeezes without warning. Symptoms include leaking urine (urinary incontinence), feeling the sudden and urgent need to urinate, and frequent urination.

Increasing capacity

When Botox (onabotulinumtoxinA) is injected into the bladder muscle, it causes the bladder to relax, increasing the bladder’s storage capacity and reducing episodes of urinary incontinence. Injecting the bladder with Botox is performed using cystoscopy, a procedure that allows a doctor to visualize the interior of the bladder while Botox is being injected.

“Clinical studies have demonstrated Botox’s ability to significantly reduce the frequency of urinary incontinence,” said Hylton V. Joffe, M.D., director of the Division of Reproductive and Urologic Products in FDA’s Center for Drug Evaluation and Research. The approval, he pointed out, “provides an important additional treatment option for patients with overactive bladder -- a condition that affects an estimated 33 million men and women in the United States.”

It works

Botox’s safety and effectiveness for this new indication were established in two clinical trials of 1,105 patients with symptoms of overactive bladder. Patients were randomly assigned to receive injections of 100 units of Botox (20 injections of 5 units each) or placebo.

Results after 12 weeks showed that patients treated with Botox experienced urinary incontinence an average of 1.6 to 1.9 times less per day than patients treated with placebo. Botox-treated patients also needed to urinate on average 1.0 to 1.7 times less per day and expelled an average of about 30 milliliters more urine than those treated with placebo.

Treatment with Botox can be repeated when the benefits from the previous treatment have decreased, but there should be at least 12 weeks between treatments.

Some side effects

Common side effects reported during clinical trials included urinary tract infections, painful urination, and incomplete emptying of the bladder (urinary retention). Patients who develop urinary retention may need to use a catheter until the urinary retention resolves.

Patients being treated for overactive bladder with Botox should not have a urinary tract infection and should take antibiotics before, during, and for a few days after Botox treatment to lower the chance of developing an infection from the procedure.

Botox is manufactured by Allergan Inc. based in Irvine, Calif.

Worries about where the economy his headed prompted holiday shoppers to keep an eye on the nickels and dimes.

New research published by Bankrate.com shows 28 percent of Americans spent less than expected this holiday season while just 16 percent spent more than expected. This was held true for most age groups -- with only those under age 30 slightly more inclined to have spent more than expected.

When Bankrate asked the same holiday spending question a year ago, 24 percent of Americans spent less than expected and 17 percent spent more. Two years ago, 27 percent spent less than expected and 19percent spent more.

Financial security

At the same time, Bankrate said its Financial Security Index jumped three points to 98.6 in January -- the biggest increase in 13 months -- following a deal to avert the fiscal cliff. However, this is still lower than the October reading of 99.2 and is consistent with Americans’ long-term feelings of deteriorating financial security.

When the Financial Security Index is below 100, it indicates that Americans’ financial security is lower than the year before. The index has been below 100 in 24 of the 26 months since its inception in Dec. 2010.

“These results illustrate that the fiscal cliff was hardly the only headwind impacting the U.S. economy,” said Greg McBride, CFA, Bankrate.com’s senior financial analyst. “Yes, the resolution brought some temporary relief, but the economy continues to plod along in first gear. It’s going to take sustained, substantive job growth in order for Americans to feel considerably better about their financial security.”

Additional highlights

Findings in the latest Financial Security Index show:

• Americans’ sentiment regarding their job security, savings, net worth and overall financial situation all posted increases over the past month. Job security and net worth have improved relative to one year ago.
• Higher-income and more educated households were the most inclined to report higher net worth than one year ago.
• The reading on Americans’ comfort level with debt was unchanged from one month ago.
• Savings remains a sore spot. More than one-third of Americans are less comfortable with their savings now compared with 12 months ago, but just 13 percent are more comfortable. This disparity is evident across all age and income brackets.

Sales of existing homes hit their highest level in five years during 2012, while the annual price increase was the best since 2005.

Figures released by the National Association of Realtors (NAR) show that previously-owned home sales totaled 4.65 million in 2012 -- up 9.2 percent from 4.26 million in 2011. This happened even as home sales in December declined 1.0 percent to a seasonally adjusted annual rate of 4.94 million in December from a downwardly revised 4.99 million in November.

Pent-up demand is sustaining the market. "Record low mortgage interest rates clearly are helping many home buyers, but tight inventory and restrictive mortgage underwriting standards are limiting sales," said Lawrence Yun , NAR chief economist. "The number of potential buyers who stayed on the sidelines accumulated during the recession, but they started entering the market early last year as their financial ability and confidence steadily grew, along with home prices. Likely job creation and household formation will continue to fuel that growth. Both sales and prices will again be higher in 2013."

Inventories down

Total housing inventory at the end of December fell 8.5 percent -- to 1.82 million existing homes available for sale. That represents a 4.4-month supply at the current sales pace, down from 4.8 months in November, and the lowest housing supply since May of 2005 when it was 4.3 months, which was near the peak of the housing boom.

Listed inventory is 21.6 percent below a year ago when there was a 6.4-month supply. Raw unsold inventory is at the lowest level since January 2001 when there were 1.78 million homes on the market.

Prices rise

If you're trying to sell your home, you'll appreciate this: The national median existing-home price for all housing types was $180,800 in December -- 1.5 percent above December 2011. This is the 10th consecutive month of year-over-year price gains, which last occurred from August 2005 to May 2006, and is the strongest increase since November 2005 when it jumped 12.9 percent.

For all of 2012, the preliminary median existing-home price was $176,600, up 6.3 percent from $166,100 in 2011, and the strongest annual price gain since 2005 when the median price rose 12.4 percent.

Other highlights

• Distressed homes -- foreclosures and short sales -- accounted for 24 percent of December sales, up from 22 percent in November but below the 32 percent share in December 2011. Foreclosures sold for an average discount of 17 percent below market value in December, while short sales were discounted 16 percent.
• The median time on market for all homes was 73 days in December, compared with 70 days in November, but 26.3 percent below 99 days in December 2011. Short sales were on the market for a median of 117 days, while foreclosures typically sold in 45 days; non-distressed homes took 74 days. Thirty-one percent of all homes sold in December were on the market for less than a month.
• First-time buyers accounted for 30 percent of purchases in December, the same as November; they were 31 percent in December 2011.
• All-cash sales were at 29 percent of transactions in December, compared with 30 percent in November and 31 percent in December 2011. Investors -- who account for most cash sales -- purchased 21 percent of homes in December, up two percent from November; they were 21 percent in December 2011.
• Single-family home sales slipped 1.4 percent to a seasonally adjusted annual rate of 4.35 million in December from 4.41 million in November, but are 11.5 percent above the 3.90 million-unit pace in December 2011. The median existing single-family home price was $180,300 in December -- up 10.9 percent from a year ago.
• Existing condominium and co-op sales rose 1.7 percent to an annualized level of 590,000 in December from 580,000 in November, and are 22.9 percent higher than the 480,000-unit level a year ago. The median existing condo price was $184,100 in December, up 16.0 percent from December 2011.

The overall death rate for cancer in the United States continues to fall.

The American Cancer Society's annual Cancer Statistics report finds deaths declined 20 percent from its peak in 1991. That translates to the avoidance of approximately 1.2 million deaths from cancer -- 152,900 of these in 2009 alone.

Each year, the American Cancer Society estimates the numbers of new cancer cases and deaths expected in the United States in the current year and compiles the most recent data on cancer incidence, mortality, and survival. The report is based on incidence data from the National Cancer Institute and the Centers for Disease Control and Prevention, and mortality data from the National Center for Health Statistics.

Major categories post declines

The latest report finds that cancer death rates decreased from their peak of 215.1 per 100,000 in 1991 -- to 173.1 per 100,000 in 2009. Death rates continue to decline for all four major cancer sites: lung, colon and rectum (colorectum), breast, and prostate. Over the past two decades, death rates have decreased from their peak by more than 30 percent for cancers of the colorectum, female breast, and male lung, and by more than 40 percent for prostate cancer.

These large drops are primarily due to reductions in smoking for lung cancer and to improvements in early detection and treatment for colorectal, breast, and prostate cancers.

The authors say as encouraging as those drops are, further progress can be accelerated by applying existing cancer control knowledge across all segments of the population, with an emphasis on those groups in the lowest socioeconomic bracket and other underserved populations.

Looking ahead

According to the study, a total of 1,660,290 new cancer cases and 580,350 cancer deaths are projected to occur in the United States in 2013. Among men, cancers of the prostate, lung and bronchus, and colorectum will account for half of all newly diagnosed cancers; prostate cancer alone will account for 28 percent (238,590) of incident cases in men.

Among women, the three most commonly diagnosed types of cancer in 2013 will be breast, lung and bronchus, and colorectum, accounting for about half of all cases. Breast cancer alone is expected to account for 29 percent (232,340) of all new cancer cases among women.

While incidence rates are declining for most cancer sites, they are increasing among both men and women for melanoma of the skin and cancers of the liver, thyroid, and pancreas. Overall cancer incidence rates decreased slightly in males (by 0.6 percent per year) and were stable in females in the most recent five year period for which there is data (2005-2009).

Common areas of death

Cancers of the lung and bronchus, prostate, and colorectum in men and cancers of the lung and bronchus, breast, and colorectum in women continue to be the most common causes of cancer death. These four cancers account for almost half of the total cancer deaths among men and women. In 2013, lung cancer is expected to account for 26 percent of all female cancer deaths and 28 percent of all male cancer deaths.

Cancer death rates decreased by 1.8 percent per year in males and by 1.5 percent per year in females during the most recent five years of data (2005-2009). These declines have been consistent since 2001 and 2002 in men and women, respectively, and are larger in magnitude than those occurring in the previous decade. Between 1990/1991 and 2009, cancer death rates decreased by 24 percent in men, 16 percent in women, and 20 percent overall.

Death risk falling

"In 2009, Americans had a 20 percent lower risk of death from cancer than they did in 1991, a milestone that shows we truly are creating more birthdays," said John R. Seffrin, Ph.D., chief executive officer of the American Cancer Society.

"But we must also recognize that not all demographic groups have benefited equally from these gains, particularly those diagnosed with colorectal or breast cancer, where earlier detection and better treatments are credited for the improving trends. We can and must close this gap so that people are not punished for having the misfortune of being born poor and disadvantaged," he concluded.

Everyone's heard of the problem of Pyrex cookware coming apart under the right circumstances and the danger of lead leaching from some types of ceramic bowls is well-known.

But who would have thought twice about eating soup or other hot foods from a melamine bowl?

Now researchers say they have evidence that serving hot foods in melamine bowls releases melamine, which has been shown to be associated with painful urinary stones in both children and adults and with kidney failure and even death when ingested in large quantities.

Melamine is a chemical with a high nitrogen content. Besides being used to make plastics, it has sometimes been added to animal feed to increase its apparent protein content -- and it has sometimes been illicitly added to human and pet food with disastrous results.

In 2008, more than 53,000 illnesses and at least four deaths were blamed on melamine-tainted milk in China and elsewhere.  Thousands of dogs and cats became ill or died after melamine was added to pet food in 2007.

In 2008, the U.S. Food and Drug Administration said it had found  melamine in infant formula but said trace amounts were probably safe.

The FDA has said that tiny amounts of melamine "can migrate very slowly out of the plastic into food that comes into contact with the tableware" but in a 2011 statement said that it "has been found that melamine does not migrate from melamine-formaldehyde tableware into most foods."  

Noodle soup

In the latest study, however, Chia-Fang Wu, M.S., Ph.D., of Kaohsiung Medical University, Taiwan, and colleagues conducted a crossover study of noodle soup consumption in melamine bowls and total melamine excretion in urine.

According to a research letter published in JAMA Internal Medicine, 12 healthy individuals (six men and six women) participated in the investigation. One group consumed 500 mL of hot noodle soup in a melamine bowl and another group consumed soup in ceramic bowls.

Urine samples were collected from all participants after consumption for 12 hours. After a three-week washout, the assigned treatments were reversed.

Total melamine excretion in urine for 12 hours was nearly eight times higher for the group served from melamine bowls compared to the group eating from ceramic bowls (8.35 µg vs. 1.31 µg).

“Melamine tableware may release large amounts of melamine when used to serve high-temperature foods. … The amount of melamine released into food and beverages from melamine tableware varies by brand, so the results of this study of one brand may not be generalized to other brands. … Although the clinical significance of what levels of urinary melamine concentration has not yet been established, the consequences of long-term melamine exposure still should be of concern,” the authors conclude.

In its 2011 statement, the FDA said that the risk was confined primarily to heating foods in microwave ovens.

"Foods and drinks should not be heated on melamine-based dinnerware in microwave ovens.  Only ceramic or other cookware which specifies that the cookware is microwave-safe should be used. The food may then be served on melamine-based tableware," the FDA said.

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Photo credit: Amazon.com

A new study creates a dilemma for older Americans and their physicians, fiinding an association between regular use of aspirin and macular degeneration, a leading cause of blindness in older people.

The study, published Online First by JAMA Internal Medicine, a JAMA Network publication, found the higher risk of age-related macular degeneration was independent of a history of heart disease and smoking.

Aspirin is one of the most widely used medications in the world and is commonly used in the prevention of cardiovascular disease, such as heart attack and ischemic stroke. While a recent study suggested that regular aspirin use was associated with macular degeneration, other studies have reported inconsistent findings.

Smoking is also a preventable risk factor for the disease, the authors write in the study background.

Gerald Liew, Ph.D., of the University of Sydney, Australia, and colleagues conducted the prospective analysis of data from an Australian study that included four examinations during a 15-year period. Of 2,389 participants, 257 individuals (10.8 percent) were regular aspirin users.

After the 15-year follow-up, 63 individuals (24.5 percent) developed incident neovascular macular degeneration, according to the results.

“Regular aspirin use was significantly associated with an increased incidence of neovascular macular degeneration,” the researchers said, noting that any decision concerning whether to stop aspirin therapy is “complex and needs to be individualized.”

“Currently, there is insufficient evidence to recommend changing clinical practice, except perhaps in patients with strong risk factors for neovascular macular degeneration (e.g., existing late macular degeneration in the fellow eye) in whom it may be appropriate to raise the potentially small risk of incident neovascular macular degeneration with long-term aspirin therapy,” the authors concluded.

This time they really mean it, they say. Alfa Romeo is returning to the U.S., with the rear-wheel-drive 4C sport coupe blazing the trail.

"For sure it's coming back this year with the 4C. With the Alfa Romeo 4C," Fiat CEO Sergio Marchionne said after a speech to a Detroit businesswomen's group, Automotive News reported. "We are finalizing the car now, so it should be here this year."

The 4C is being built at a Maserati plant in Modena, Italy, and the company says it will be a worthy successor to Alfa Romeo's proud heritage of scrappy, exuberant sports cars. Fiat plans to make about 2,500 of the cars each year. It will be the marque's top-performing car, intended to herald the brand's return under Marchionne's leadership.

Pricing is still uncertain, although reports say the 4C will be priced at about 50,000 Euros, which would be about $66,000, but U.S. pricing may be a bit above that target as Fiat wants the Alfa to retake its position alongside Porsche, BMW and other "serious" premium sports cars.

Where can you buy one? Well, you can't yet and it's uncertain whether Alfa Romeos will be sold through Fiat dealers or Chrysler Group dealers. Fiat, of course, owns Ferrari and Maserati but it's not likely the mid-range Alfa would be admitted to such exalted company.

Alfa Romeo left the United States in the late 1990s and has been suffering from slow sales in Europe the last few years, thanks to the recession and a lack of new models, attributed partly to Fiat's being preoccupied with its new Chrysler division.

More Alfa models are expected, including a new Giulia sedan, which will be based on the Dodge Dart platform, although some would say the Dart is based on the Giulia platform, but why quibble?

Altogether, Fiat says it has six new Alfa Romeo models in the works, including sedans and SUVs. It's hoping to double its worldwide sales to about 400,000 by 2014.

Fiat may have its work cut out for in trying to bring Alfa back to near the top of the heap. This reporter wore his Alfa Romeo Owner's Club cap around Florence earlier this year and, other than a few sympathetic shrugs and eye rolls, got little reaction from the locals, who appeared to regard Alfa as part of history. Sadly, there were more Audis and BMWs than Alfas in evidence on the streets.

In the United States, the brand is virtually unknown except to those nearly too old to drive.