Current Events in October 2013

Caveat emptor: let the buyer beware. That’s important for everyone to bear in mind whenever they sign a contract or make a purchase, and it’s double-especially important for airline passengers seeking to fly in American airspace, because once the airline gets your money, you not only lose many of your rights as a consumer, but even certain rights guaranteed by the Constitution.

Consider the ordeal suffered by certain Spirit Airlines passengers in Fort Lauderdale, Florida, on Oct. 24: over 600 passengers stranded in the Fort Lauderdale-Hollywood airport for several hours after Spirit grounded ten flights out of the airport.

Spirit released a statement saying “Following the engine failure on one of our aircraft last week, and after reviewing routine maintenance procedures, we are completing a proactive and voluntary check on our aircraft engines overnight as a precautionary measure... We apologize for these delays. We are working diligently to get our customers where they need to go as quickly as possible. As always, the safety of our customers is our number one priority.”

On the other hand, CBS News spoke to an unnamed officer from the Broward County Sheriff’s Department who suggested that the lengthy delay was mainly due to Spirit’s lacking enough mechanics on staff. (Why were they speaking to a sheriff? Because conditions among passengers stranded in the airport got bad enough that the cops were called out.)

But even if you grant Spirit the benefit of the doubt, and assume that the legnthy delay was somehow unavoidable, many passengers complained not so much about the delay itself, but how they were treated throughout it: stranded in Fort Lauderdale with nowhere to sleep except the airport waiting area, and they weren’t even allowed access to their luggage, which had already been checked and was locked up somewhere.

Grounded passenger Lauren Digangi told WSVN-TV that she tried leaving Fort Lauderdale on a different flight, but said, “They will not give me my baggage off my plane to go to a different airline. They won't fly my baggage to Newark, or anything like that. They will not refund my money. All they did was give me a $7 voucher and told me to wait until then and that time is tentative and scheduled to change."

Another grounded flier, Heather Hart, told WSVN that passengers who tried complaining to Spirit’s customer service hotline were told they would be charged for the privilege. “You know you call and follow the prompts and it says, 'To speak to a customer service representative, just know that Spirit will charge you for this phone call’," she said.

No protection

Unfortunately, there really isn’t any law requiring Spirit or any other airline to return luggage to stranded passengers. (Indeed, not until 2011were airlines even required to reimburse people for lost baggage or bumped flights; before then, an airline was perfectly within its rights to charge you a fee for checked baggage, lose said baggage—and keep the baggage fee.)

In 2009, new legislation required airplanes delayed on a tarmac to let passengers off the plane after three hours, and also said that passengers trapped on such planes must have access to working lavatories and clean drinking water. Remember: these rules were considered signficant improvements over what passengers were legally obligated to endure before that.

Offhand, we can’t think of any other American industry whose companies have the legal right to confine their customers in enclosed spaces without access to drinking water or bathroom facilities for any length of time, which is why we said caveat emptor for any airline passengers.

Numerous complaints

But even when Spirit Airlines flights run according to schedule, many of our readers have complained about the airline’s service. In addition to numerous complaints from people claiming they weren’t told about high baggage fees until the last minute, we also heard from Michael S. of Seabrook, New Hampshire, who wrote us on Oct. 18 after he paid extra for one type of seat and Spirit assigned him another: “I booked a flight in Feb. … and paid extra for extra leg room, since I am 6'6" tall. When I booked a seat on the plane they showed me, my plane had two exit doors. When I got on the plane this past weekend, I had the correct seat but Spirit changed the plane. … They will tell you if they change the flight time but NOT the plane. Why would I have paid extra to sit in a small space? …. This is the second time they have changed the plane on me, and I have always paid for the extra leg room….”

On Oct. 13, Steve D. of Long Beach, Calif. told us he missed a Spirit flight because the company didn’t have a ticket agent available: “There was no ground staff when we arrived an hour and ten minutes before our flight. We just needed boarding passes. … They never showed until 30 minutes prior to flight and said we needed to get on the flight the next day for an additional $250. This happened to another 6 passengers while we were there! It's just another way for them to try and get more $ from passengers! Always bring boarding passes to the airport or, better yet, never fly Spirit!”

Organized opposition

Spirit Airlines has even inspired its own anti-fan website, which we learned about on Oct. 13 after Sergey G. of Fort Lee, New Jersey wrote us to say “Spirit is absolutely the worst! Got overcharged and ignored by their customer service. Their continued existence is a mockery of decent business practices and corporate social responsibility. It's time we do something about it!”

Al L. of Pawneys Island, South Carolina, used to fly Spirit Airlines on a regular basis—but not anymore. When he wrote us on Oct. 7, he said, “I have been flying Spirit for years and have a carry-on bag that I have used each time I fly with Spirit. The dimensions are 21 x 14 x 9 which is less than the dimensions on their website. You are allowed to take one carry-on without charge.”

Sounds good so far. So what’s the problem? “Today, the boarding rep threatened to prevent me from taking my flight unless I paid a $100 fee for the carry-on. No one else was charged, [even if they] brought on bags that were a little larger than mine. I have never been charged before but this Spirit employee was rude, arrogant and downright nasty. It seems that on a simple whim a Spirit can choose to charge you or threaten to stop you from boarding if they choose to.”

That’s true. But it’s not just Spirit; for pretty much any airline, if they decide at the last minute that you can not board unless you do X, Y or Z, well—you can’t board unless you do X, Y or Z, and if you try doing so anyway you’ll almost certainly be arrested as a threat to airline security.

With new regulations looming, lobbyists for the electronic cigarette industry are heading to Capitol Hill, hoping to persuade lawmakers that the combustion-free devices shouldn't be treated like tobacco products.

“While our industry understands reasonable and appropriate regulation is needed, it is vital our young industry not be grouped with combustible cigarettes as federal guidelines are developed for these products," said Cynthia Cabrera, Executive Director of the Smoke Free Alternatives Trade Association (SFATA). "Excessive regulation could limit adult access to e-cigs and stifle growth and innovation in the segment.”

The U.S. Food and Drug Administration (FDA) has set an Oct. 31 deadline to issue a proposed rule that would expand its oversight of e-cigs. In response, Cabrera's group has summoned its members to Washington for a "day on the Hill" Nov. 4 and 5.

Trade associations for industries under pressure from the feds traditionally round up their members and bring them to D.C. to meet and greet lawmakers and their staffs, hoping to portray themselves as vital cogs in the economy and loyal supporters of their Congressional members.

Law being "misapplied"

Besides arguing the merits, if any, of e-cigs the group will be arguing that the law under which the FDA is issuing the new regulations -- the 2009 Tobacco Control Act -- doesn't give it the authority to do so.

"This law gave the FDA authority over cigarettes, smokeless tobacco and roll-your-own tobacco, and has been misapplied to allow the agency to expand its oversight to additional products, such as electronic cigarettes," Cabrera's group said in a press release.

The FDA has reportedly completed the drafting of its regulation and submitted it to the White House Office of Management and Budget (OMB) for review by OMB’s Office of Information and Regulatory Affairs (OIRA).

FDA has been saying for at least the last two years that it intends to include electronic cigarettes under its authority and it has come under increasing criticism from anti-smoking groups and some lawmakers for the plodding pace at which it has proceeded. In April, five senators, all Democrats, wrote to FDA Commissioner Margaret Hamburg, urging the agency to make haste.

“Unlike traditional tobacco products, e-cigarettes can be legally sold to children and are not subject to age verification laws,” the senators wrote. “E-cigarettes marketed to appeal to kids in candy and fruit flavors, like bubblegum and strawberry, are readily available to youth in shopping malls and online. These products risk addicting children to nicotine, which could be a pathway to cigarettes and other tobacco products.”

In a news release, SFATA said it is "encouraging the FDA and elected officials to refer to research established by credible health professionals who offer scientific evidence proving that e-cigarettes are a reliable, adult alternative to combustible cigarettes." It didn't cite any such evidence iin its release, however. 

Every year Black Friday – the day after Thanksgiving – seems to become an even bigger event, with people camping out in front of big box stores, waiting for them to open. And in recent years Black Friday has even spilled over into Thanksgiving night.

But if you hit the stores in search of Black Friday deals, be sure to hold most of your holiday shopping budget in reserve. According to Kiplinger's, you're better off spreading your spending out over a period of several weeks. Not all of the best deals are on Black Friday.

In fact, if you take the time to do a little research, you can find great deals on many items before and after the long Thanksgiving weekend. If you are a serious bargain hunter, sign up to receive email alerts from major retailers when they have a major sale. You can often save the same amount of money without having to get up early and fight the crowds.

Hype and excitement

If you do go shopping on Black Friday, don't get caught up in the hype and excitement. That often results in buying things just because they appear to be a good deal, not because they are on your list.

Remember that advertised door-buster deals are usually in limited quantities. If you show up at a store solely to buy one of these bargain-priced items, you may go home disappointed. But the deal site DealNews points out that increasingly, Black Friday deals are available online as well as in-store. The site points to data from previous years showing up to 70% of in-store Black Friday deals were also available online for the same price — in some cases even less.

If you sleep in on Black Friday, don't worry. You still have opportunities for great deal. In fact, many retail analysts suggest holding off on buying toys, brand-name TV sets and winter clothing on Black Friday. You'll likely see lower prices as the holidays approach.

Black Friday TV curse

For what it's worth, ConsumerAffairs has noted a pattern of consumer complaints about TV sets purchased on Black Friday. Many need repair within a year of purchase. Chances are, it's because TVs marked down for Black Friday specials tend to be the cheapest to begin with. It's worth remembering, you get what you pay for. 

Here's something else to remember. Just because some items are marked down on Black Friday, it doesn't mean all are marked down. In fact, most aren't. And for good reason. The stores lure you in with the advertised specials but hope you'll buy a lot of regularly-priced merchandise while you're there.

Even the Black Friday prices might not be the lowest of the year. DealNews notes that items with deep discounts on Black Friday might be cheaper in the days just before Christmas.

Search online for hidden deals

If you do decide to brave the crowds, due your research ahead of time. And you need to do more than just study the store's circular ad. Go the the store's website and look up the items you are considering. Major retailers have been known to slip in a few un-advertised specials, available only to the savvy shoppers who took the time to carefully review the website.

Finally, make sure you understand the store's return policies; they might differ for Black Friday purchases. Some stores tighten their return policies – not just on Black Friday but throughout the holiday shopping period. Some retailers only offer store credit and, if you don't have a receipt, you might only get a partial credit for the purchase.

The two newest luxury sedans from Japan -- the Infiniti Q50 and the Lexus IS 250 -- are taking their lumps in the latest Consumer Reports ratings, where they wound up below competitors from BMW, Mercedes-Benz, Lincoln, and Volvo.

The on-time performance of the nation’s largest airlines improved in August from a month earlier, but dropped a bit from the same time a year earlier.

According to the U.S. Department of Transportation’s Air Travel Consumer Report, the August on-time rate was 78.8% -- up 5.7% from July, but down 0.3% from August 0f 2012.

During the same month, there were also two tarmac delays of more than three hours on domestic flights. Both involved flights scheduled to arrive in Denver, Colo., on Aug. 3 that were diverted due to storms. There were no reports of delays exceeding four hours for international flights.

The report also includes data on cancellations, chronically delayed flights, and the causes of flight delays, along with information on mishandled baggage reports filed by consumers with the carriers, and consumer service, disability, and discrimination complaints received. Also included are reports of incidents involving the loss, death, or injury of pets traveling by air.

The full report is available on the Department of Transportation website.

First-time applications for state jobless benefits dropped in the week ending October 19 for the second week running.

According to government figures, initial claims totaled 350,000 -- down 12,000 from 362,000 the previous week. Economists surveyed by Briefing.com were calling for a total of 341,000.

Problems related to glitches from a computer upgrade in California continue to plague the initial claims data and artificially boost the so-called “headline” levels.

The Department of Labor (DOL) says there's no way to separate the claims from California that were biasing the data from those in the private sector that lost their jobs as a result of the government shutdown. About 40,000 federal government workers filed for unemployment benefits as a result of the shutdown.

Analysts say they expect that the initial claims level will return toward 300,000 when the problems are rectified.

The 4-week moving average, considered a more accurate gauge because it's not as volatile as the weekly number, was 348,250 -- a jump of 10,750 from the previous week.

The full report is available on the DOL website.

Infinitoy, Inc. of San Mateo, Calif., is recalling about 7,134 building toy playsets.

The plastic hats on playset figures pose a choking/aspiration hazard for children. There is one reported incident in which an 18-month-old child placed a hat in his mouth and started to gag/choke but the toy was removed. No injuries have been reported

Infinitoy Inc. is recalling the Super Safari Set model #30025 and the Deluxe Circus Train Set model #30040. The model number can be found on the back of the box in the lower right corner. The sets come in a white box with “Softimals. Build, Play, Repeat” and “Ages 1 ½ to 5” printed in a colorful font on the front and back of the package.

The sets have numerous plastic pieces that can be connected and fit together to build a vehicle pulling cars with a hippo, giraffe, zebra and other animals. The drivers of the lead vehicles, Safari Sam and Mighty Mike, have removable blue or yellow plastic hats.

The playsets, manufactured in Italy, were sold at specialty toy stores nationwide and online at Amazon.com and Mindware.com from September 2012, to September 2013, for about $25 and $40.

Consumers should immediately remove the plastic hat from Safari Sam and Mighty Mike and contact Infinitoy to exchange the hat for a free replacement figure.

Consumers may contact Infinitoy toll-free at (888) 558-0933 from 9 a.m. to 5 p.m. PT Monday through Friday.  

Reser’s Fine Foods of Beaverton, Ore., is recalling approximately 109,000 cases of refrigerated ready-to-eat products because they may be contaminated with Listeria monocytogenes.

No illnesses have been reported to date.

The refrigerated ready-to-eat products ere sold in retail and food service establishments throughout the U.S. and Canada. The packages are marked with a Use-by-Date or Best By Date and followed by a plant identifier code of 20. The affected products include:

Canadian Distribution

The recalled products were manufactured at the Topeka, Kan., salad manufacturing facility. No other facilities are involved in this recall.

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-8pm EST).

Nissan is recalling 151,695 model year 2013-2014 Nissan Pathfinder vehicles manufactured April 18, 2012, through September 20, 2013; model year 2013 Infiniti JX35 vehicles manufactured September 15, 2011, through January 16, 2013; and model year 2014 Infiniti QX60 vehicles manufactured January 17, 2013, through September 20, 2013.

During light braking on rough roads, the antilock brake system (ABS) brake pressure output software may lead to an increase in stopping distance, which could raise the risk of a crash.

Nissan will notify owners, and dealers will reprogram the ABS, free of charge. The manufacturer has not yet provided a notification schedule.

Owners may contact Nissan at 1-800-647-7261.

It started in chain supermarkets. In one section of the check-out aisles there suddenly appeared self-service scanners where consumers were encouraged to check themselves out, paying with cash or plastic.

If you are the type of consumer who enjoys some friendly banter with the clerk in the check-out aisle, enjoy it while you can. It may not last much longer. 

Futurist Thomas Frey predicts that soon nearly every city will have 24-hour convenience stores, 24-hour libraries, 24-hour banks, 24-hour churches, 24-hour schools, 24-hour movie theaters, 24-hour bars and restaurants, and even 24-hour shopping centers.

J.C. Penney's ill-fated attempt to develop stores within a store may eventually come to fruition as retailers will develop entire automated sections.

Disappearing humans

Industry analysts say humans are disappearing from retail establishments, replaced by kiosks. You've already seen it in video rentals. There used to be video stores, now there are vending machines at supermarkets and other public locations.

"Over the coming years we will transition from semi-automated to fully automated bars or restaurants," Frey said. As automation increases, "hours of operation will expand."

This will bring about a change to retailing, he predicts. Perhaps the biggest change since the self-serve store replaced the establishments where the clerk gathered the items you wanted from behind the counter.

"Adding store-within-a-store concepts along with after-hours product walls where people can order anything they see will give new options to shoppers," Frey said.

A downside?

But maybe there's a downside to all these machines. After all, we've already seen vending machines replace video stores, a disruptive force that drove staffed stores out of business in less than a decade. Not all consumers have been thrilled with the results, even though, on the positive side, they could rent a movie at any hour of the day or night.

Theresa, of Abingdon, Va., found no one with whom she could dispute a late charge.

“Returned movies on time have e-mail confirmations thanking me for using Redbox and for returning the movies but still charged extra on my card,” she wrote in a ConsumerAffairs post. “I think they think it is such a small amount $1.26 that you won't bother to dispute it.”

Rachael, of Tulsa, Okla., says she normally loves using Redbox because it's inexpensive and easy. But she writes about a bad experience when the movie that came from the machine was badly scratched and wouldn't play.

Movie night is cancelled

“I call customer care and get a new code,” she writes. “Return movie. Try to get another of the same. Card won’t work. Card has been charged a couple of times in one night for a free movie. I only keep a few bucks on my card. I expected a free movie to be a free movie. Now I can't watch my movie tonight and I won't see my money back on my card for up to 10 business days?”

In the case of unplayable disks, Redbox asks that consumers contact them through their website.

Despite such hiccups, Frey remains enthusiastic about the automated future, saying the product selection from machines is already astonishing and will continue to expand. He notes that one recent vending system designed for for Quiksilver dispenses underwear, lingerie, bikinis, boxers, and briefs, items never seen in a vending machine just a short time ago.

"Our automated future will give us 24-hour access to most goods and services, many of which are only available during normal business hours today," he said. "By eliminating the restrictive nature of today's business operations, we will be freeing up attention that can be more prudently spent solving society's bigger problems."

That may indeed turn out to be a benefit for consumers, as long as they still have jobs so that they can buy things from the machines.

Autumn is the perfect time to do repair work on your lawn, which may have been stressed by the summer heat and may now be infested with unwanted weeds. In addition, depending on where you live there are things you should do to prepare your lawn for the coming winter.

One of the most common end-of-the-season problems is “thatch,” a build-up of dead grass and other materials that can accumulate on the surface of the soil, blocking drainage, promoting fungal-related disease and impeding the growth of healthy grass.

So a first step in getting your lawn ready for winter is to rake it thoroughly, getting up leaves, pine needles and other debris. Once the lawn has been raked, use a pitch fork or lawn aerator to make small holes over the surface of the lawn. This aerating will allow the easy movement of water and air to grass roots and promote overall plant health.

Once you have created the holes, fill them by brushing fine horticultural sand into them. Otherwise, they will just close up on their own. Filling them with sand keeps the air and water flowing.

Autumn is best

Lawn care experts say autumn, not spring, is the best time to work on your lawn. Jim Welshans, regional turfgrass educator at Penn State University, suggests lawns with cool-weather grasses like Kentucky bluegrass, fescues, and perennial ryegrass should be fertilized in two waves, the first in early fall and the second around Thanksgiving, but before the ground is frozen.

He recommends a fertilizer high in phosphorus. However, the best way to make sure you're putting down the right fertilizer is to get a soil test through your county or state extension agent. There are geographic exceptions, of course. Hold off on fertilizing in the desert Southwest and deep south. The grasses prevalent there usually go dormant in the winter and don't need fertilizer.

In its advice on winter lawn prep, Better Homes and Gardens suggests a new layer of mulch will help protect the grass over the harsh winter months. Think of the much as a blanket – not to keep the soil warm so much as to keep the soil temperature even. 

Prime time

HGTV, which dispenses homeowner advice on cable TV, says the fall is also prime time for sowing grass seed. It's an especially good time for cool weather grasses and give them time to develop a root system before freezing weather arrives.

"While taking care of your outdoor space can require time, effort and braving the elements, the reward is seeing how a well-maintained lawn contributes to greater quality of life and enjoyment of your home," said Jason Henderson, associate professor of turfgrass and soil sciences at the University of Connecticut.

Henderson spends part of his time maintaining athletic fields that must stand up to hundreds of feet clad with cleats. He's come up with five steps for homeowners who would like their lawns to look like a gold course.

Five tips to a great lawn

The first is proper mowing. Grass needs to be cut to the proper height and mowed at the proper frequency. Generally, cool-season lawns should be mowed once a week between three and three and a half inches, alternating the direction each time.

The second step is to feed your lawn a proper diet. Just like a person, a lawn can build up strength to fight off disease. Again, here is where a soil test will prove useful to tell you what you need to feed it.

The third step is the aeration process discussed earlier. Those little holes really will allow your lawn to breath.

Fourth, keep pests and weeds at bay. Your lawn will not only look better but will be a safer, more even surface for children at play, reducing stumbling and triping.

Finally, keep your lawn hydrated. When Mother Nature doesn't provide enough rain, turn on the lawn sprinkler. Here, timing is critical. Watering is most effective early in the morning, to minimize excess moisture from negatively affecting your lawn. Applying water during the late morning or early evening can extend the amount of time the grass stays damp, making your lawn more susceptible to disease.

Live video streaming is coming to the courts -- the basketball courts, that is. The NBA is reportedly close to signing deals with several cable outlets to let fans watch their local teams live online, a first for a major sports league in the U.S.

Sports Business Journal says the games will be streamed under the TV Everywhere banner and reports that deals have already been inked with Fox and NBC Sports, the country's two biggest owoners of regional sports networks.

National sports contests have been streamed before, but the NBA will become the first major national league to allow live streaming of local games. They're previously been blacked out in local markets to encourage attendance.  

You'll still have to be a cable TV customer but there will be no extra charge for the live streaming, at least initially. The deal reportedly runs through 2016. 

“It is not going to roll out at one time for everyone,” said Bill Koenig, executive vice president of business affairs and general counsel for the NBA, according to Sports Business Daily. “My sense is that Fox, from a technical standpoint, is further along. The good news is that I think it will happen in a significant way this year.”

The Aaron’s furniture rental chain has settled a federal complaint that it played a "direct and vital role" in its franchisees’ use of software on rental computers that secretly monitored consumers, taking webcam pictures of them in their homes.

The disclosures came in the settlement of a Federal Trade Commission (FTC) complaint that said Aaron's franchisees surreptitiously tracked consumers’ locations and captured images through the computers’ webcams – including those of adults engaged in intimate activities.

The software also functioned as a keylogger that captured users’ login credentials for email accounts and financial and social media sites, the FTC said.

The FTC charges echo those leveled in a 2011 class-action lawsuit. A similar suit was filed against Rent-A-Center in September 2013.   

“Consumers have a right to rent computers free of cyberspying and to know when and how they are being tracked by a company,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “By enabling their franchisees to use this invasive software, Aaron’s facilitated a violation of many consumers’ privacy.”

Who knew what

The complaint alleges that Aaron’s knew about the privacy-invasive features of the software, but nonetheless allowed its franchisees to access and use the software, known as PC Rental Agent.

In addition, Aaron’s stored data collected by the software for its franchisees and also transmitted messages from the software to its franchisees. In addition, Aaron’s provided franchisees with instructions on how to install and use the software.

The software was the subject of related FTC actions earlier this year against the software manufacturer and several rent-to-own stores, including Aaron’s franchisees, that used it. It included a feature called Detective Mode, which, in addition to monitoring keystrokes, capturing screenshots, and activating the computer’s webcam, also presented deceptive “software registration” screens designed to get computer users to provide personal information.

Under the terms of the proposed consent agreementwith the FTC, Aaron’s will be prohibited from using monitoring technology that captures keystrokes or screenshots, or activates the camera or microphone on a consumer’s computer, except to provide technical support requested by the consumer.

Must give notice

In addition, Aaron’s will be required to give clear notice and obtain express consent from consumers at the time of rental in order to install technology that allows location tracking of a rented product. For computer rentals, the company will have to give notice to consumers not only when it initially rents the product, but also at the time the tracking technology is activated, unless the product has been reported by the consumer as lost or stolen. The settlement also prohibits Aaron’s from deceptively gathering consumer information.

The agreement will also prevent Aaron’s from using any information it obtained through improper means in connection with the collection of any debt, money or property as part of a rent-to-own transaction. The company must delete or destroy any information it has improperly collected and transmit in an encrypted format any location or tracking data it collects properly.

If you plan to use Amazon for this year’s holiday shopping, take note: the minimum purchase required for free shipping has gone up, from $25 to $35 (unless you belong to Amazon Prime, in which case shipping remains “free”—in exchange for a $79 annual membership fee).

Much as we wish Amazon had held off until after the holiday season to raise its free-shipping bar (or at least waited until we finished our own personal holiday shopping), we can’t really bring ourselves to blame Amazon here, considering the way inflation has increased prices in general, and shipping costs in particular.

CNN Money notes that “The change came after a decade of free shipping to U.S. addresses on a minimum order of $25.” According to the inflation calculator maintained by the Bureau of Labor Statistics, $25 in 2003 had the same buying power as $31.78 in 2013.

So when inflation is added to the calculations, Amazon’s current free-shipping minimum is less than four dollars higher than what it originally set in 2003.

Offers like free shipping, free returns and in-store pickup will help make the Internet the top holiday shopping destination for the first time, according to Deloitte's 28th annual survey of holiday spending intentions and trends.

The survey found that shoppers plan to shell out an average of $421 on gifts this year, compared with $386 last year. They also expect to buy an average of 12.9 gifts, ending a five-year decline in the number of gifts they plan to purchase.

Another positive sign in holiday shopping, says Deloitte: an increase in discretionary and non-gift spending. The amount consumers plan to spend on non-gift items for themselves or their families is up 14% from 2012, while spending on home and holiday furnishings is expected to jump 25% from last year.

Consumer confidence

Additionally, according to the survey, consumers appear more confident in the economy's prospects. More than half (54%) believe the economy is on the rebound, an increase of 22 percentage points in the past two years.

"The survey reveals a brighter consumer spending outlook than we've seen in several years," said Alison Paul, vice chairman, Deloitte LLP, and retail & distribution sector leader. "Consumers are feeling more generous about gift spending, and we are encouraged by their plans to spend more on going out for celebrations, decorating their homes and treating themselves and their families to 'early gifts' while holiday shopping this year.”

Paul says that while the government shutdown and concerns about the debt cieling had the potential to dampen consumer sentiment, “the settlement likely averted any significant impact on the holiday season. The timely resolution of those issues may also give consumers an extra confidence boost just as promotions start hitting the stores and the shopping season gets underway."

Internet yea, discount stores nay

The Internet moved into the top spot among holiday shopping destinations for the first time in its 15 years represented in the survey, bumping discount/value department stores from the No. 1 position. Nearly half (47%) of consumers plan to purchase items online, followed by 44 percent at discount/value stores.

When choosing where to shop, consumers are motivated by more than just a bargain, emphasizing factors like convenience and selection. More than three-quarters (76%) cite convenience as a reason for shopping online, followed by price (63%).

The omnichannel shopper is most likely to make retailers' spirits bright. Those who shop a combination of store, Internet and mobile channels say they plan to spend a total of $1,643 on the holidays, 76% more than those who shop in the store only.

Bargain hunting

Despite higher spending potential, online shoppers will challenge retailers to be on their game when it comes to product selection and availability. Nearly eight in 10 (77%) say that if a product is not available on a store's website, they'll go elsewhere, while only 13% would go to that same retailer's store. In addition, 45% of all respondents indicated they would switch to an entirely different store chain or website if they can't find the desired item in a retailer's store.

"Shoppers put a premium on both their time and the shopping experience," noted Paul. "That shift bodes well for retailers as it suggests shoppers are no longer exclusively price driven. However, immediacy, service and selection will be paramount this year, and retailers need to offer a seamless, easy to navigate experience between their online, mobile and brick-and-mortar channels."

Shoppers want it all

Despite greater confidence in the economy's prospects, improved spending intentions and a focus on convenience, consumers still rank promotions high on their shopping lists. Nearly three-quarters (73%) of consumers say their holiday spending will be influenced by coupons or promotional offers.

More than seven in 10 (71%) say they plan to take advantage of free shipping offers, while nearly half (47%) expect free returns. More than four in 10 (44%) intend to take retailers up on price-matching guarantees, 36% say they will shop extended hours and 35% plan to order online for in-store pickup.

Retailers may also have good reason to roll out the promotions early this year: the number of consumers who say they expect to complete the majority of their shopping by early November (30 percent) rose five percentage points from last year. One-quarter (25%) plan to shop on Black Friday and 24% plan to do so on Cyber Monday, although nearly half (45%) indicate that Black Friday isn't as important as it used to be.

Doctors and safety advocates are pressing for a ban on high-powered novelty and toy magnets, arguing that strong regulation is the only way to prevent children from swallowing the magnets, which can bind together in the digestive system and cause serious injury or death.

They testified yesterday at a public hearing called by the U.S. Consumer Product Safety Commission (CPSC), which is considering rules that would prohibit the sale of high-powered magnet sets. The rule would apply to magnets that fit within the CPSC’s small parts cylinder and have a flux index (or strength) of more than 50.  

The CPSC took action in response to a growing number of documented pediatric ingestions of magnets from magnet sets.

"CFA strongly supports CPSC's determination that there is an unreasonable risk of injury associated with children ingesting high powered magnets," stated Rachel Weintraub, Legislative Director and Senior Counsel at Consumer Federation of America. "Data from CPSC and from pediatric gastroenterologists across the country documents the serious medical consequences that occur as a result of a child ingesting more than one high powered magnet. The unique properties of these magnets compel a regulatory solution such as the one CPSC has proposed, that would protect children from the severe consequences of ingesting more than one of these magnets."

Buckyballs, Zen Magnets

High-powered magnet sets, marketed under names such as Buckyballs and Zen Magnets, are comprised of tiny high-powered magnet balls or cubes, often with 200 or more magnets to a set. When more than two magnets are swallowed, their attractive force (flux) allows them to find each other across or between different segments of the bowel.

For example, connections can occur between the stomach and the small intestine, between the small intestine and the colon, or across loops of bowel. When this happens, the result can be bowel perforation, fistulization (unnatural connections of the bowel), or tissue death (necrosis).

The danger is heightened by the difficultly of a timely diagnosis.  Ingestion of magnets does not result in immediate symptoms, so there can be a marked delay in diagnosis and treatment, yet injury can occur in as little as eight hours.  When symptoms do occur, they are non-specific (abdominal pain, fever, vomiting) and may resemble other common ailments.

High-powered magnets are not like other small foreign objects that children typically swallow, experts testifying the hearing said.  According to a 2012 study by the North American Society for Pediatric Gastroenterology, Hepatology and Nutrition (NASPGHAN), nearly 80 percent of high-powered magnet ingestions cases require endoscopic or surgical intervention. Comparatively, only 10 to 20 percent of other foreign body ingestions require endoscopic removal and less than 1 percent require surgery.

“Actions taken to date by the Commission appropriately reflect the risk of significant and life-threatening injury that these magnet products pose to children," said Athos Bousvaros, M.D., NASPGHAN president. "There is nothing worse as a physician than treating a child with a preventable injury.  High-powered magnet ingestions are 100 percent avoidable if they are not available, which means banning their sale and doing everything possible to remove products already sold from any environment where children live, visit, play or learn."

In an effort to comply with an international treaty to protect the ozone layer, the U.S. Food and Drug Administration (FDA) says it will complete its phase-out of all inhaler medical products containing chlorofluorocarbons (CFCs) by Dec. 31, 2013.

The U.S. and most other countries signed an agreement in 1987 called the Montreal Protocol on Substances that Deplete the Ozone Layer to phase out the worldwide production and use of CFCs. In this country, CFCs have been removed from such products as hairsprays, deodorants and air conditioning.

While most inhaler products containing CFCs have already been phased out, two products remain on the market: Combivent Inhalation Aerosol and Maxair Autohaler. However, these products will no longer be available after the end of this year.

People with asthma or chronic obstructive pulmonary disease (COPD) who use these inhalers should talk to their health care professional about a prescription for an alternative treatment.

Critical products

Inhalers are critical products for those persons suffering from asthma or COPD. In the U.S., more than 25 million people suffer from asthma, a disease that affects the airways in the lungs and can cause coughing, trouble breathing, wheezing and tightness or pain in the chest. An additional 15 million people have been diagnosed with COPD, a serious lung disease that worsens over time. Symptoms can include chest tightness, chronic cough and excessive phlegm.

“CFCs were used as propellants to move the drug out of inhalers so that patients can inhale the medicine,” said Badrul Chowdhury, M.D., director of the Division of Pulmonary, Allergy and Rheumatology Products in the FDA’s Center for Drug Evaluation and Research. “For more than two decades, the FDA and EPA have collaborated to phase-out CFCs in inhalers -- a process that included input from the public, advisory committees, manufacturers, and stakeholders.”

Most inhalers that used CFCs have already been phased out by the FDA. The inhaler that was most widely used -- albuterol CFC inhaler -- was phased out in 2008 and replaced with inhalers that use propellants called hydrofluoroalkanes (HFAs). There are many safe and effective inhalers available to treat asthma and COPD symptoms. All require a prescription, which must come from a licensed health care professional (a physician, physician’s assistant or nurse practitioner).

“The EPA and FDA's partnership has facilitated a safe, gradual transition to CFC-free inhalers in the United States,” said Drusilla Hufford, director of EPA’s Stratospheric Protection Division of the Office of Air and Radiation. “This action is an important contribution to the global effort to repair the Earth’s protective ozone layer and save millions of lives through the prevention of skin cancer.”

Blame the government shutdown. The Internal Revenue Service (IRS) is.

The tax agency says because of the 16-day closure this month, there will be a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems.

The original start date of the 2014 filing season was Jan. 21. The one- to two-week delay means the IRS will start accepting and processing 2013 individual tax returns no earlier than Jan. 28 and no later than Feb. 4.

Your responsibility

The late start to the filing season doesn't mean you can let the April 15 deadline slide. That date is set by statute and will remain in place. However, anyone can request an automatic six-month extension to file their tax return. The request is easily done with Form 4868, which can be filed electronically or on paper.

The agency will not process paper tax returns before the start date, which will be announced in December. There is no advantage to filing on paper before the opening date, and taxpayers will receive their tax refunds much faster by using e-file with direct deposit.

Bad timing

IRS processes, applications and databases must be updated annually to reflect tax law updates, business process changes and programming updates in time for the start of the filing season.

The government closure came during the peak period for preparing for the 2014 filing season. Programming, testing and deployment of more than 50 IRS systems is needed to handle processing of nearly 150 million tax returns. Updating these core systems is a complex, year-round process with the majority of the work beginning in the fall of each year.

About 90 percent of IRS operations were closed during the shutdown, with some major workstreams closed entirely, putting the agency nearly three weeks behind its tight timetable for being ready to start the 2014 filing season. There are additional training, programming and testing demands on IRS systems this year in order to provide additional refund fraud and identity theft detection and prevention.

Acting Commissioner Danny Werfel says the IRS is exploring options to shorten the expected delay, but notes that, “Readying our systems to handle the tax season is an intricate, detailed process, and we must take the time to get it right.”  

After rising for two weeks on a row, mortgage applications slipped 0.6% during the week ending October 18, 2013, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The results do not include an adjustment for the Columbus Day holiday.

The Refinance Index decreased 1%, pushing the refinance share of mortgage activity down to 65% of total applications from 66% the previous week. The adjustable-rate mortgage (ARM) share of activity increased 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 4.39%, the lowest rate since June 2013, from 4.46%, with points increasing to 0.41 from 0.31 (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 4.43%, the lowest rate since June 2013, from 4.51%, with points increasing to 0.26 from 0.15 (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 4.15% from 4.16%, with points decreasing to 0.27 from 0.44 (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 3.51%, the lowest rate since June 2013, from 3.53%, with points decreasing to 0.30 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs was unchanged at 3.25%, with points decreasing to 0.26 from 0.32 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990.

House price index

In a separate report, the Federal Housing Finance Agency (FHFA) says house price appreciation continued in August with an increase of 0.3% from July. The change in the House Price Index (HPI) marks the nineteenth consecutive monthly price increase in the purchase-only, seasonally adjusted index.

The HPI is calculated using home sales price information from mortgages either sold to or guaranteed by Fannie Mae and Freddie Mac. From August 2012 to August 2013, house prices were up 8.5%, but still 9.4% below its April 2007 peak and roughly the same as the April 2005 index level.

For the nine census divisions, monthly price changes from July to August ranged from -0.5% in the South Atlantic division to +1.3% in the Mountain division. The 12-month changes ranged from +4.0% in the Mid Atlantic division to +18.2% in the Pacific division.