Current Events in October 2013

For seniors receiving Social Security benefits your check will be a little bigger starting in January. But don't go on a spending spree as it won't be THAT much bigger.

According to the Social Security Administration, monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 63 million recipients will increase 1.5% in 2014. That will add about $19 to the average monthly benefit check, taking it to $1,294.00.

The cost-of-living adjustment (COLA) will begin for Social Security benefit recipients in January 2014. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2013.

The COLA is based on the percentage increase in the Consumer Price Index (CPI) from the third quarter of the last year a COLA was determined to the third quarter of the current year. If there is no increase, there can be no COLA.

No Medicare increase

Meanwhile, the government says there will be no increase for most people in Medicare's Part B premium next year. Most people paid the Part B premium of $104.90 each month this year and that will not change in 2014.

However, if your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you may pay more.

Giveth and taketh

But the news isn't all good.

Based on the COLA increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $117,000 from $113,700. Of the estimated 165 million workers who will pay Social Security taxes in 2014, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.

CPI

Part and parcel of all of this is the inflation report for September.

The government says higher energy prices contributed to an 0.2% increase in the CPI last month.

The cost of energy rose 0.8%, with gasoline up 0.8%, fuel oil posting an 0.9% increase, natural gas surging 1.8% and electricity rising 0.5%. Even with the September increase, energy prices are down 3.1% over the past 12 months, with gasoline showing a drop of 7.5%.

Food prices were unchanged in September after rising in each of the three previous months, thanks largely to an 0.9% decline in the cost of fruits and vegetables, and 0.2% dip in nonalcoholic beverage prices -- the third straight monthly decline. In contrast, cereals and bakery products were up 0.2% and prices for meats, poultry, fish, and eggs, and for dairy and related products increased 0.1%. percent.

Core rate

The costs of all items excluding the volatile food and energy categories, rose 0.1% -- the same as in August. Contributors to the increase in this “core” rate of inflation included shelter and medical care, new vehicles, and airline fares. Prices for clothing and recreation declined.

The full September CPI report is available on the Labor Department website.

Mortgage applications bounced back during the week of October 25 after dipping during the previous week.

Data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey show the Market Composite Index, a measure of mortgage loan application volume, increased 6.4% on a seasonally adjusted basis.

The Refinance Index jumped 9%, pushing the refinance share of mortgage activity up 2 percent -- to 67% of total applications, the highest share since June 2013. The adjustable-rate mortgage (ARM) share of activity decreased to 7% of total applications.

Interest rates

The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) decreased to 4.33%, the lowest rate since June, from 4.39%, with points decreasing to 0.26 from 0.41 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) decreased to 4.36%, the lowest rate since June, from 4.43%, with points increasing to 0.27 from 0.26 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year FRMs backed by the FHA decreased to 4.06%, the lowest rate since June, from 4.15%, with points decreasing to 0.17 from 0.27 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year FRMs decreased to 3.42%, the lowest rate since June, from 3.51%, with points remaining unchanged at 0.30 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.17%, the lowest rate since June, from 3.25%, with points increasing to 0.38 from 0.26 (including the origination fee) for 80% loans. The effective rate decreased from last week.

In response to a recall earlier this month by Reser's Fine Foods of select products due to the potential of Listeria monocytogenes contamination, Taylor Farms Florida, Inc. ("TFFL"); Taylor Farms Illinois, Inc. ("TFIL"); Taylor Farms Maryland, Inc. ("TFMD"); Taylor Farms Texas, Inc. ("TFTX"); and Taylor Farms Tennessee, Inc. ("TFTN") are issuing a secondary recall on a limited number of deli products that contain components implicated in Reser's expanded recall.

To date, there have been no reported illnesses associated with these recalled items:

The grocers involved have been instructed to remove any remaining product from their deli case and to dispose of any of the remaining product in their inventory. No other products or code dates are affected by this recall.

Customers who have purchased these products are urged not to consume the products and should dispose of the recalled products immediately.

Consumers may call for further information at 1-866-508-7048 between 9 am and 5 pm (PST),Monday through Friday.  

The government shutdown earlier this month, along with jitters about the debt ceiling, took a toll on the way consumers viewed the economy.

The Conference Board says its Consumer Confidence Index fell sharply in October on the heels of September's moderate decline. The Index now stands at 71.2 -- down 9 points from where it stood last month. The Present Situation Index decreased to 70.7 from 73.5, while the Expectations Index fell to 71.5 from 84.7 last month.

“Consumer confidence deteriorated considerably as the federal government shutdown and debt-ceiling crisis took a particularly large toll on consumers’ expectations,” said Lynn Franco, director of economic indicators at The Conference Board. “Similar declines in confidence were experienced during the payroll tax hike earlier this year, the fiscal cliff discussions in late 2012, and the government shutdown in 1995/1996. However, given the temporary nature of the current resolution, confidence is likely to remain volatile for the next several months.”

How they see it

Consumers’ assessment of current conditions declined moderately. Those who think business conditions are “good” decreased to 19.0% from 20.7%, while those claiming business conditions are “bad” edged down to 23.0% from 23.9%.

Consumers’ appraisal of the job market was less favorable than last month. Those saying jobs are “plentiful” was virtually unchanged at 11.3%, while those saying jobs are “hard to get” jumped to 35.8% from 33.6%.

Consumers’ expectations, which had softened in September, plunged in October. Those expecting business conditions to improve over the next six months fell to 16.0% from 20.6%, while those expecting business conditions to worsen increased to 17.5% from 10.3%.

There was also more pessimism about the outlook for the labor market. Those anticipating more jobs in the months ahead decreased to 15.3% from 16.1%, while those anticipating fewer jobs increased to 22.7% from 19.1%. The proportion of consumers expecting their incomes to increase rose to 15.8% from 15.1%. However, those expecting a decrease rose to 15.4% from 13.9%.

The monthly Consumer Confidence Survey is conducted for The Conference Board by Nielsen, a provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was October 17.

Some people – superior beings who are extremely organized – do their holiday shopping throughout the year. As the holidays approach, they are blissfully free of the stress that plagues the rest of us.

There is something to be said for that but shopping in April not only lacks the holiday spirit, the deals might not be as attractive. So it raises the question, when exactly should you start your holiday shopping?

“It's a good idea to start saving now rather than start buying now,” said Cameron Huddleston, a contributing editor at Kiplinger's. “The deals aren't that good right now on most of the things people really want for Christmas. The deals get better the closer you get to the holidays.”

That's because retailers start to feel the pressure the closer the holiday's get. Black Friday gets its name from the fact that, for most retailers, they only become profitable for the year – “getting in the black” – during the holiday shopping season.

Some research suggests that shopping on Black Friday, itself, doesn't always yield the best results. The $199 laptop draws people in but the store may only have six of them at that price. Much of the rest of the store's merchandise is likely to be at the regular price. 

A week after Black Friday

Hitting the stores a week after Black Friday might yield better results. Stores will have had the chance to assess what sold and what didn't the week before and price merchandise accordingly. Some stores are even staging holiday sales events before Black Friday.

Remember, you don't always have to show up at the store to get a good deal. Increasingly stores are offering special prices online – and not just on Cyber Monday. These special deals might be offered at any time.

Rather than spending your shopping dollars all at once, take time to review advertising circulars and online specials, tracking prices on the items you want. After having their advertising plans leak online, many retailers are now taking the initiative, releasing their Black Friday ads well ahead of time.

Get a sneak peak at the ads

There's an entire category of websites now that offer sneak-peaks at advertising slicks. They include TheBlackFriday.com, BlackFriday.com, and GottaDeal.com, among others. These sites can alert you to what things will be selling for on Black Friday, allowing you to comparison shop now. It's not unheard of finding an item advertised as a Black Friday special on sale at the same price weeks before the big event. last weekend, Best Buy held a two day pre-holiday sale, marking down TVs, Macbooks, smartphones, tablets, and cameras.

While you can save money by doing your shopping after Black Friday, you don't want to wait too late. A RetailMeNot.com survey found that more than 90% of respondents reported overspending by waiting until the last minute to do their holiday shopping. This group said it plans to spend an average of $167 per person on gifts.

Avoiding deal envy

The survey authors say the high cost spent per person on gifts is worrisome when you consider that more than a quarter of shoppers surveyed this year indicated last year that they set a budget and went over it. According to the report, exceeding a holiday budget sparks symptoms of Deal Envy, including guilt for more than a quarter of gift givers and anxiety for one in five.

Though there are plenty of bargains late in the game, it may be that late shoppers don't take the time to seek them out. As the holidays get closer, the priority for consumers becomes crossing items off their shopping list and not getting the best price. So whether you shop on Black Friday or not, doing most of your shopping early rather than late will probably end up saving you money in the long run.

The good news for New York college student Trayon Christian is this: he stands a good chance of finishing his education without the massive student-loan debt burden that plagues so many of today’s young graduates.

The bad news is: it’s because of the lawsuit Christian has filed against luxury clothier Barneys New York, after Christian bought a designer belt there with his debit card last April, and Barneys allegedly called police on suspicion that Christian’s debit card surely must be stolen. (It wasn’t; Christian paid for the belt with money he’d saved from his part-time work-study job.)

The New York Daily News broke the story of Christian’s resulting lawsuit on Oct. 22. Christian, now 19 years old, studies engineering at the New York City College of Technology and lives with his mother in Queens. He is African-American, and strongly suspects that’s why Barney’s staffers suspected him of stealing the money he spent on the $349 Ferragamo belt.

On the other hand. Barneys has denied any responsibility for Christian’s ordeal, and released a statement saying:

“It is clear that no employee of Barneys New York was involved in the pursuit of any action with the individual other than the sale . . . . We are very sorry that any customer of our store would have this experience."

Christian said that on April 29, he went to Barneys after work and bought the belt, which he’d been wanting for some time. The store clerk asked to see his ID before selling him the belt; Christian showed his ID, signed for the belt and left the store with his purchase.

According to the Daily News, here’s what happened next:

[H]e got no more than a block from the store when two undercover NYPD detectives stopped him … “They said my card wasn’t real, it was fake. They said someone at Barneys called to report it,” said Christian.

The male detectives — whose names he never learned — asked to see ID and look in his bag, he said. They also asked him if he worked, and where.

“I showed them my school ID and my driver’s license,” said Christian … “I kept thinking, ‘Why is this happening to me?’” he said.

“The detectives were asking me, ‘How could you afford a belt like this? Where did you get this money from?’” he said.

 Christian’s lawsuit alleges he was then handcuffed, taken to the police station and detained in a holding cell for two hours, before police released him with an apology. The NYPD, for its part, admits that Christian was detained but disagrees over how long: a police spokeswoman said Christian was brought in at 7:04 pm and released at 7:45. His attorney said Christian wasn’t charged with anything.

The day after breaking the news of Christian’s lawsuit, the Daily News reported a distressingly similar story: a black, 21-year-old nursing student named Kayla Phillips alleges that in February, she bought a designer handbag from Barneys, then plainclothes police harassed her three blocks from the store.

Barneys CEO Mark Lee responded to the second story with a statement repeating that:

“Barneys New York believes that no customer should have the unacceptable experience described in recent media reports, and we offer our sincere regret and deepest apologies … we want to reinforce that Barneys New York has zero tolerance for any form of discrimination. We are a strong proponent of equal rights and equal treatment for all human beings. Our mission is to ensure that all customers receive the highest-quality service—without exception.

To this end, we are conducting a thorough review of our practices and procedures as they relate to these matters to ensure that they reflect our continued commitment to fairness and equality. To lead this review, we have retained a civil rights expert, Michael Yaki, who also serves on the U.S. Commission on Civil Rights. … In addition, Barneys New York has reached out to community leaders to begin a dialogue on this important issue.

As consumer journalists, we generally advise people to avoid buying $349 belts or $2,500 handbags anyway, on the grounds that there are much better uses for your money. But we never imagined we’d have to add a disclaimer warning our readers (regardless of skin color) to avoid such extravagant purchases for fear of being arrested.

Retirement is everywhere these days. And no wonder, the Baby Boom cohort is either 65 years old or getting close. Financial services companies fill the TV airwaves with commercials, hoping to entice these graying citizens to buy their products.

But these commercials are not all completely self-serving. Some raise issues that people contemplating retirement should think about. The first, and maybe the most important, is what retirement actually is.

For people who have spent most of their working lives getting up early, making a daily commute and sitting in an office 40 hours a week, retirement first and foremost means not having to do that anymore. But it begs the question, if you aren't doing that, what will you be doing?

Hopefully, it's something productive because, if it is, you might be able to earn some income from it. It's work, but work on your terms.

Warren Buffet long ago reached the age at which he could retire but he probably didn't slow down enough to even think about it. He was too busy buying companies and adding to his billions.

Keep working

The point is that just because you hit 65 and quit your day job, you don't stop working altogether. If you find something you enjoy doing, you keep going. It not only gives you a reason to get up in the morning it supplements your retirement income. And with people routinely living into their 90s, that's important.

Jack Williams is a clinical psychologist in State College, Pennsylvania. He has suggested that you should look at retirement simply as a career change. 

“Retirement is a career change because it has all the practical hallmarks of a career change, such as the need for planning, the need to learn about your own strengths and priorities, the need for networking, the change in income, the need to try out new things, and the choice of a new direction,” he writes in his blog. “To have a thriving retirement, you need to be doing something that you believe in and that feels important to you.”

If you have all the retirement income you think you will ever need – but who, besides Buffet, does? – you can choose a new vocation regardless of whether it brings compensation or not. But for most people entering retirement, income is very important.

Sources of income

That brings us to another critical consideration. How will you support yourself during your golden years? If you have a new retirement job or career you will get some income but probably not as much as you earned pre-retirement. Other sources of income include Social Security, your retirement savings and investments, and any pension your previous jobs provided.

You can draw Social Security beginning at age 62, though most financial planners frown on drawing it before age 66 and many would prefer that you delay it until age 70. Here's why: your monthly Social Security payment is proportionately increased by two-thirds of one percent for every month you delay taking Social Security after reaching full retirement, up until age until age 70.

Actuaries have crunched the numbers and figured out how much money you should receive between your retirement and your death. If you start drawing it at 62, those payments are smaller because they are spread out over more years. If you wait until age 70, they're larger. It's simple math. Social Security provides an online calculator to help you figure it out. 

But while the total amount of money you will receive over your lifetime may be close to the same, regardless of when you start receiving it, you may need those larger payments later in life, when age-related infirmities may reduce your ability to earn additional income, or your retirement savings and investments begin to run low.

If you draw Social Security at 62, make sure you can live on it. The government penalizes you by reducing your benefit for every dollar of income you earn over a certain limit.

Stay healthy

The third critical consideration is health. Health in old age is not just a quality of life issue but also an economic one. According to a recent retiree health care costs estimate calculated by Fidelity Benefits Consulting, a 65-year-old couple retiring in 2013 is estimated to need $220,000 to cover medical expenses throughout retirement. 

You might not be able to prevent some diseases but many health conditions, especially those associated with aging, are preventable. Before reaching retirement age take steps to improve your health by shedding excess pounds, eating a balanced and nutritious diet and getting plenty of exercise. Maintain that lifestyle once you enter retirement.

European and U.S. automakers have broken Japanese dominance of Consumer Reports' annual auto reliability rankings, with Audi, Volvo and GMC taking three of the top 10 spots in this year's rankings.

Three Japanese brands, Lexus, Toyota, and Acura captured the top three spots in the survey, which was conducted by the Consumer Reports National Research Center. The survey is believed to be the largest of its kind; findings are based on CR subscribers’ experiences with 1.1 million vehicles. Non-profit Consumer Reports uses the survey data to compile reliability histories on vehicles and predict how well new cars that are currently on sale will hold up.

For more than a decade, Japanese brands have had a lock on most of the top spots in the survey. It’s been rare for a European, Korean, or U.S. carmaker to achieve anything higher than seventh or eighth place.

Audi, Volvo

But Audi, which has shown steady improvement in vehicle reliability during recent years, moved up four places this year to finish fourth overall—the top European manufacturer in the survey. Three Audis, the A6 sedan, Q7 SUV and Allroad wagon, have “much better than average” reliability.

Volvo jumped 13 places to seventh. GMC emerged as the top domestic brand, finishing ninth—three places higher than last year. Moreover, every model from Audi, GMC, and Volvo, for which CR has data, earned an average or better reliability score.

The top predicted-reliability score went to the redesigned 2014 Subaru Forester SUV, which hadn’t been on the market for very long when CR conducted the survey. The Ford C-Max Energi plug-in hybrid got the worst score, and the regular C-Max Hybrid wasn’t much better.

General Motors fared better than other domestic brands.  In addition to GMC, Buick climbed nine slots to 12th place over last year.

Japanese brands took seven out of the 10 top spots in the survey. Nissan sank to 22nd among the 28 brands in the rankings. Ten of those highest scorers were Toyotas. Of the eight Lexus models in CR’s survey, six got top marks. 

Two popular models, the redesigned 2013 Honda Accord V6 and the 2013 Nissan Altima, scored too poorly in the survey for Consumer Reports to continue Recommending them. Last year, CR had predicted that both vehicles would have at least average reliability.

Of the 31 Ford models in Consumer Reports’ survey, only one, the F-150 pickup with the 3.7-liter V6, was above average. 

Chrysler is still below par overall, but a bright spot is the very nice Chrysler 300 C which scores above average—last year it was the company’s most troublesome vehicle.

In recent years, Hyundai and Kia were beginning to challenge the Japanese at the top of Consumer Reports’ reliability rankings. In 2011, they scored well ahead of Detroit and most European companies. But they slipped a bit in the 2013 survey, with Kia ranking midpack and Hyundai sliding to 21st place.

BMW and Mercedes-Benz remained around midpack among all brands. Volkswagen, which turned in a middling performance, was especially hampered by the trouble-prone Beetle, GTI, and Touareg. All three Minis in our survey made a very poor showing.

Electronic trouble spots

One of the key problem areas in Consumer Reports’ survey centers on in-car electronics, including the proliferating suite of audio, navigation, communication, and connected systems in newer cars. Of the 17 problem areas CR asks about, the category including in-car electronics generated more complaints from owners of 2013 models than for any other category. 

In many cases, the survey revealed touch-screen infotainment systems have been buggy, with frustrating screen freezes, touch-control lag, or a reluctance to recognize a cell-phone, an MP3 device, or a voice command.

Hybrids, electrics do well

Hybrids and electric cars continue to do well. The Toyota Prius, Lexus ES 300h, Toyota Prius C, and Honda CR-Z hybrids, as well as the Nissan Leaf electric car, were among the top models. Ford’s C-Max and Fusion hybrids were the only exceptions. 

The Tesla Model S electric car performed well enough in the survey to earn a Recommendation from CR for the first time. CR gathered data on more than 600 2012 and 2013 models. Owners of the 2012 model reported very few problems, although 2013 owners reported quite a few more. Problem areas included wind noise, squeaks and rattles, and body hardware (including the sunroof, doors, and locks). 

Complete reliability report and results for all models are available at www.ConsumerReports.orgtoday, and in the December issue of Consumer Reports, on newsstands November 5. 

Home prices continued to claw their way higher in August.

The S&P/Case-Shiller Home Price Indices showed that the 10-City and 20-City Composites gained 1.3% in August, with Las Vegas leading the cities with an increase of 2.9% -- its highest since August 2004. Detroit and Los Angeles followed with gains of 2.0% each.

Year-over-year, the indices shot up 12.8%.

“The 10-City and 20-City Composites posted a 12.8% annual growth rate,” says David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Both Composites showed their highest annual increases since February 2006.”

Positive returns

All 20 cities reported positive year-over-year returns. Thirteen cities posted double-digit annual gains. Las Vegas and California had year-over-year increases of over 20%. Denver and Phoenix posted 20 consecutive annual increases; Miami and Minneapolis 19. Despite showing 26 consecutive annual gains, Detroit remains the only city below its January 2000 index level.

“The monthly percentage changes for the 20-City composite show the peak rate of gain in home prices was last April,” Blitzer noted. “Since then home prices continued to rise, but at a slower pace each month. This month 16 cities reported smaller gains in August compared to July. Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts.”

More new highs

Denver and Dallas again set new highs. All the other cities remain below their peaks. Boston and Charlotte are the two Metropolitan Statistical Areas closest to their peaks with only 8-9% left to go. Las Vegas is still down 47.1% from its peak level.

All twenty cities posted monthly gains in August, although most cities showed deceleration compared to July. Las Vegas was at the top of the range at +2.9% and Seattle was at the bottom with a return of +0.5%. Month-over-month, San Francisco has been losing momentum as prices increased 4.9% in April 2013 and 0.9% in August 2013.

Fourteen cities showed year-over-year rate acceleration in August versus last month. Las Vegas was the leader with an annual rate of 29.2%, its highest since March 2005. Denver and San Francisco posted their highest growth rates since August 2001 and March 2001, respectively. Although Dallas did not break into double-digit returns, the city posted its highest annual gain since it was first published in January 2000.

The latest trend in consumer class actions is suing big food manufacturers over their labeling, particularly claims that products are "natural." But judges aren't all buying the argument.

A federal judge last week expressed misgivings about a suit filed against Frito-Lay accusing it of misrepresenting the nutritional content of its snack products.

In another case, a federal judge shot down a suit claiming Buitoni misleading labels its stuffed pasta products "all natural." 

The lead plaintiffs -- Markus Wilson and Doug Campen -- claim Frito-Lay is deceiving customers by making false claims about its potato chips, corn chips and other snacks. The company says the "all natural" description is accurate since the chips contain potatoes and vegetable oil, among other things.

But U.S. District Judge Samuel Conti balked at Wilson and Campen's claim that they should have standing to sue over the labeling of 85 Frito-Lay products as well as the handful of products they actually bought and, presumably, consumed.

“Plaintiffs do not plead to have bought these products. Instead they simply provide long lists of products that they flatly state contain unlawful or misleading statements,” Judge Conti said. “Plaintiffs have taken lists of snack foods ... and asserted in their briefs — not in their pleadings — that they are all basically the same.”

He also dismissed the plaintiffs’ claims that Frito-Lay website content constituted “labeling.”

The plaintiffs alleged that by printing “Visit our website @ fritolay.com” on the back of packaging, any language on the websites constituted misleading labeling.

Buitoni stuffing

In the Buitoni case, a California federal judge shot down the customer’s interpretation of the phrase "all natural."

Plaintiff Maritza Pelayo claimed she had bought the pasta because of the “all natural” assurances on the product label, and that she would not have bought them if she she knew they contained artificial ingredients. But U.S. District Judge John F. Walter dismissed her claims, finding she had failed to offer an objective or plausible definition of the phrase “all natural” as it appears on the label of Nestle’s Buitoni brand of products.

A dip in the cost of food more than made up for a slight increase in energy costs, sending the government's Producer Price Index (PPI) down 0.1% in September. The decline follows a rise of 0.3% in August and a flat PPI in July.

The decline was due largely to a drop of 1.0% in consumer foods, the largest since April, thanks to a plunge of 17.9% in the cost of fresh and smaller drops in prices for carbonated soft drinks and processed poultry.

Energy prices, on the other hand, were up 0.5% with one-third of that attributable to a 6.0% jump in home heating oil costs. Higher prices for residential natural gas also were a factor.

The “core” PPI, less the volatile food and energy categories, moved up 0.1%.

The full report is available on the Labor Department website.

Retail sales

In a separate report, the government said retail sales were down 0.1% last month, in line with the forecast from economists at Briefing.com.

The entire decline was due to a drop of 2.2% in motor vehicle sales. Excluding that volatile category, sales were up 0.4%.

Sectors showing sales gains in September include grocery stores (1.0%), food services and drinking places (0.9%) and electronic ans appliance stores (0.7%). Sales at gasoline stations were flat.

The complete retail sales report can be found on the Commerce Department website.

Taylor Farms of Jessup, Md., is recalling approximately 5,084 pounds of broccoli salad kit products.

The kits contain salad dressing in packets that may be contaminated with Listeria monocytogenes. There have been no reports of illnesses associated with consumption of these products.

The salad kits were shipped to distributors and retail locations (delis) for consumer purchase in Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York and Vermont. The following products are subject to recall:

• 6.06-lb. boxes labeled “TAYLOR FARMS BROCCOLI CRUNCH WITH BACON AND DRESSING ” with the case code 310151, produced on Oct. 21 and Oct. 22, 2013.
• 12.13-lb. boxes labeled “TAYLOR FARMS BROCCOLI CRUNCH WITH BACON AND DRESSING ” with the case code 310153, produced Oct. 21 through Oct. 23, 2013.

Case labels bear the establishment number “EST. 34522” inside the USDA mark of inspection. Retail consumers and the general public will not typically see the boxes and labels, because the product is typically unboxed by retailers (such as deli counters and restaurants) and the kit used to make salads for retail sale. The boxes and labels would be more likely to be seen by distributors and retailers.

Consumers with questions regarding the recall can contact Taylor Farms Customer Service at 866-508-7048.

Volkswagen Group of America is recalling 1,120 model year 2013-2014 Audi A8 and S8 vehicles equipped with a standard sunroof, manufactured March 12, 2013, through July 15, 2013.

These vehicles are equipped with a standard sunroof glass panel that may shatter. Should the sunroof's glass break while the vehicle is in use, the falling glass could injure the driver or passengers. It could also distract the driver, increasing the risk of a crash.

Volkswagen will notify owners, and dealers will replace the sunroof glass panel, free of charge. The recall began on October 21, 2013.

Owners may contact Audi of America at 1-800-822-2834. Volkwagen's number for this campaign is 60B6/1L.

Reser's Fine Foods of Beaverton, Ore., is expanding the recall it issued earlier this month of refrigerated ready-to-eat products because they may be contaminated with Listeria monocytogenes.

There are no confirmed illnesses associated with these products.

The recalled refrigerated ready-to-eat products were distributed throught the U.S. and Canada.

The product is sold in retail and food service establishments. The packages will be marked with a Use-by-Date or Best By Date and followed by a plant identifier code of 20. Products affected by this recall are listed below:

Affected Products

Canadian Distribution

Consumers who purchased the product may take it back to the store for a refund or discard it.

For more information contact Reser's Fine Foods Consumer Hotline 1-888-257-7913 (8am-10pm EST).

Scammers always seem to be one step ahead of the authorities, victimizing unsuspecting consumers with impunity for years before justice finally catches up. But sometimes, justice does, in fact, catch up with scammers.

Four years after consumers first began reporting frightening calls from abusive debt collectors trying to shake down victims over phony payday loans, a federal court has stopped operations in Atlanta and Cleveland it said were running the scam.

Since 2009 thousands of people have received calls, threatening them with arrest because of an unpaid payday loan. This scam was particularly dangerous because the caller had the victim's personal information, raising the possibility of identify theft.

While victims are now breathing a sigh of relief, it isn't clear if other, unrelated operators are also running the same scam. Time will tell.

New scam targets African-Americans

Meantime, authorities are trying to run down another scam that is targeting African-American farmers. Scammers are contacting them, offering assistance in filing claims in the Black Farmers Discrimination Litigation against the U.S. Department of Agriculture.

“It has been brought to our attention that there are individuals and organizations who are holding meetings statewide and charging a fee to help black farmers file claims and participate in lawsuits when, in fact, the deadline to do so has long since passed,” said Mississippi Attorney General Hood. “We are looking into these allegations and what we can do about them, but feel the need to warn consumers to be wary.”

The litigation was real. African-American farmers sought compensation from USDA for racial discrimination in farm loans and loan servicing between 1981 and 1996. However, the settlement was reached in 2011 and the deadline to file a claim was May 11, 2012.

“Wherever there is money involved, we find scammers trying to steal it from those who most need it,” Hood said. “What a shame that we have to send out such a warning. You can never be too careful these days.”

Internet is dangerous place

Indeed. While scammers in the past relied mostly on the telephone and the U.S. mail, today's charlatans are more likely to use the Internet. The above-mentioned fake payday loan scam may have delivered its threats by phone but it's likely the schemers targeted their victims by their submission of personal information online.

Stephen Ebbett, President of Protect Your Bubble, an insurance company that writes policies protecting against identity theft, says consumers have to exercise extreme caution online. Rule number one, he says, is to only input personal information at trusted and verified sites.

“Virtually all reputable ecommerce sites provide a Secure Sockets Layer (SSL) certificate, which means that a secure link between the site and your browser has been verified – it’s an assurance that the site uses encryption to keep hackers away from credit card data and other personal information,” Ebbett said.

Check the address

You can tell if a website has an SSL certificate by paying attention to the URL at the top of the browser. It should begin with HTTPS instead of HTTP. There should also be an icon in the form of a lock to the left of the address. If you click on the lock you can see the name of the certifying organization that verified data encryption for the site.

Sophisticated scammers are wise to this and are starting to create convincing HTTPS sites, so this is not a foolproof tell.

Increasingly, identity theft is where the money is in the scam game so consumers who take steps to protect their identities in online activities can do a lot to keep scammers at arm's length. The numbers are staggering.

A Javelin Strategy and Research study and Federal Trade Commission statistics show that there were almost a million more cases of identity theft in 2012 than there were in 2011. Nearly 13 million Americans were victims of identity thieves in 2012.

If you've visited a car dealer lately you know that in most cases, the 2014 models are on the lot and salesmen are eager to send you home in a 2013 model, to make room. But the 2014 Honda Civic, one of America's best-selling cars, has yet to make an appearance.

Just when the new Civic will show up in showrooms is anyone's guess, because Honda hasn't said. Industry guesses have ranged from late fall to early first quarter 2014. However, the public will get its first glimpse at the 2013 Specialty Equipment Market Association (SEMA) Show in Las Vegas Nov. 5.

While Honda has had little to say about the new Civic it recently confirmed that the car will be receiving a "mid-cycle refresh," meaning the Civic will get some new enhancements. If the changes turn out to be major, it would be the third straight year for that.

Winning converts

The Civic has always been a popular entry-level car but won new converts when it moved from the sub-compact to the compact class in 2001. U.S. sales totaled nearly 318,000 in 2012.

Automotive site Edmunds.com notes the 2012 Civic got a major makeover that was not received all that enthusiastically. Honda responded with a significant refresh that earned high marks from Edmunds reviewers, along with others in the industry.

Improvements in the 2013 model, including enhanced fuel economy that bumped the highway rating to 39 mpg, have helped the Civic stand out as a compact segment leader. In the absence of details, dealers are left to speculate and hope. Benson Honda of San Antonio suggests that if the automaker implements a version of its Earth Dreams engine in the new Civic, it's possible that the car will break the 40 mpg highway barrier.

Integrated Internet radio

One improvement might be in the Civic's entertainment system. The automotive site Best New Cars expects the addition of a system that allows drivers to connect to Pandora Internet radio and have text messages read aloud over the audio system. It also predicts push-button start and heated seats. 

“As far as security technologies in 2014 Honda Civic will have ACC and CMBS. ACC allows you to set a constant speed and the distance from the vehicle in front of you. All this is possible thanks to the sensor which is located behind the front grille,” the site says. “CMBS system pre-screen in front of your vehicle and promptly notifies you if you need to take a specific action. If necessary, starts and braking.”

4-Car Reviews, an automotive industry blog, predicts only small changes to the 2014 Civic.

“The Honda Civic will not change beyond perhaps a new color choice or two or maybe some juggled functions,” the site says. “Gas mileage is unlikely to get much better unless Honda goes extreme and presents a new automated gearbox.” 

The civic has gotten bigger over the years, but may not get any larger. After all, Honda must protect its midsize model, the Accord. Still, many industry insiders note that the Civic boasts passenger volume of nearly 100 cubic feet, which might help explain its continued popularity.

It completes with the Ford Focus and Fiesta and Chevrolet Cruz, which are already out with their 2014 models and perhaps, are taking a few sales that might have gone the Civic's way. On the other hand, Honda is building a buzz among industry insiders and, it hopes, with consumers.

The largest international study ever conducted on Alzheimer's disease has found 11 new regions of the genome involved in the disease, providing new understanding of the underlying molecular processes.

"This study clearly demonstrates that there really is strength in numbers to identify genes that individually have a small effect on risk of Alzheimer's," said Lindsay A. Farrer, PhD, Chief of Biomedical Genetics and professor of medicine, neurology, ophthalmology, genetics & genomics, epidemiology, and biostatistics at Boston University School of Medicine. "But it's not the magnitude of the odds ratio that's really important. Each gene we implicate in the disease process adds new knowledge to our understanding of disease mechanism and provides insight into developing new therapeutic approaches, and ultimately these approaches may be more effective in halting the disease since genes are expressed long before clinical symptoms appear and brain damage occurs," he added.

Since 2009, 10 genes for Alzheimer's disease have been identified. However, much of the individual susceptibility to develop the disease remains unexplained. So in February 2011, the leaders of the four largest international research consortia on the genetics of Alzheimer's joined forces to accelerate the discovery of new genes. Their findings are reported in the current issue of Nature Genetics.

In three years, the researchers identified more genes than had been identified over the previous 20 years. They collected genetic data on 74,076 patients and controls from 15 countries and were able to discover 11 new genes in addition to those already known, and identify 13 other genes, yet to be validated.

These 11 new confirmed genes may open new avenues to understanding the causes of Alzheimer's. For example, one of the most significant findings suggests the involvement of the immune system in the disease. In addition, this same region has also been associated with two other neurodegenerative diseases, one known to have an immune mechanism, multiple sclerosis and another not previously thought to have a major immune component, Parkinson's disease.

The work demonstrates that, given the complexity of such a disease, only a global collaboration of research efforts will quickly find solutions to tackle this major threat, the researchers said.

"Alzheimer's is a complex and devastating disorder, and if we are to reach our goal of finding effective therapies to treat it, then collaboration is key," said Neil Buckholtz, PhD, National Institute on Aging Division of Neuroscience Director. "[The consortium's] sharing of DNA samples, data sets and scientific insights proves that team concept, and NIA is gratified to have provided the infrastructure and support needed to move the team forward."