Current Events in April 2014

Since the Great Recession, unemployment has remained stubbornly high, and when it finally started to fall, much of the decline was attributed to people dropping out of the work force, no longer seeking a job.

The conventional wisdom has always been that people dropped out because they were discouraged about finding employment. New research, however, is putting a different spin on this odd trend.

The study, conducted on behalf of Rasmussen College, finds that nearly 20% of Americans are dissatisfied with their job. They want to quit, the researchers found, because they don't think they have an opportunity to advance.

What's new?

Okay, you say, so what? People have always wanted to fire their boss.

True, but the fact that so many people are thinking about quitting, at a time when everyone is supposedly terrified of being laid off, seems odd. So what's behind all this workplace angst?

"Having a clear career path from the very beginning is critical so you don't end up stuck in a job without the right skill set or lacking in advancement opportunities," said Tamryn Hennessy, vice president-career services at Rasmussen College.

Here is a number that drives home the point: only 24% of those surveyed say they feel they're doing what they set out to do.

"They don't pay me enough for this!"

Even though jobs are hard to come by, about two-thirds of the adults in the survey said they have considered quitting their job. When asked why, 51% said they aren't paid enough.

Other complaints include no chance to advance, too much stress and not being able to use their education or skills.

Perhaps all this has something to do with how the workplace quickly changed in the aftermath of the financial crisis of 2008. Almost overnight businesses, large and small, slashed their payrolls to maintain profit margins.

Picking up the slack

As a result, the employees who remained often had to pick up new responsibilities while maintaining the old ones. Back in 2010, Human Resources consultant Rick Dacri wrote an article for HRTimes describing the emerging, post-recession workplace.

“As employers spring from this painful recession, they will be faced with significant workforce tests including the need to keep labor costs low, pressures to increase productivity further, a battered and disengaged employee population, and government agencies scrutinizing employers who seek cost savings at the expense of workers, while avoiding their tax obligations. Employers must prepare now for this new emerging workforce,” he wrote.

Jobs going begging

At a time when “a battered and disengaged employee population” is looking for the exit, companies large and small are facing what they see as a skills gap – they say they are unable to attract qualified employees to key positions. It's affecting the bottom line.

Last month, a study by jobs site Careerbuilder.com estimated a company loses more than $14,000 for every job that stays vacant for three months or longer. The study found that 35% of companies have positions that stay open for that length of time.

As a result, employers also reported productivity and work quality suffered, corresponding with a rise in voluntary employee turnover.

Lower morale

Forty-one percent of employers reported lower morale because remaining employees are having to take on more of the workload. More than a third also found work not getting done, missed deadlines and an overall decline in customer service.

Again, conventional wisdom may be mistaken. While it is widely assumed that employees with the right skill sets can't be found, it could be that there are simply fewer employees who want to spend 8 hours a day in the post-recession workplace.

A federal judge has turned down a request for a so-called "park it" order. That would have required General Motors to tell the owners of 2.59 million recalled cars that their vehicles are too dangerous to drive and should be parked until their defective ignition switch is replaced.

The request was made by the owners of a 2006 Chevrolet Cobalt who are suing GM for what they say is the lost value of their car. They said the "park-it" order would be the only fail-safe solution to the ongoing risks drivers of the cars supposedly face.

But Judge Nelva Gonzales Ramos of the U.S. District in Corpus Christi, Texas, said federal safety regulators are better able to manage the massive recall than the courts.

No judge has ever issued such an order.

GM is facing at least 37 lawsuits, most of them proposed group actions, over the defective ignitions and also faces a Congressional investigation and possible action by the National Highway Traffic Safety Administration (NHTSA).

GM has advised drivers to put nothing on their key ring but the ignition key until their car is fixed. That reduces weight on the switch and should reduce the likelihood that the switch will turn off unexpectedly.

One in four U.S. families are now "unbanked," meaning they don't have a checking or savings account at a bank or credit union. Most are low-income and live in neighborhoods with high poverty rates. They handle their finances by using expensive money transfer services and payday loans.

Did we mention they're likely to be WalMart shoppers? 

Walmart has been targeting this group for some time, with its Walmart Money Card, MoneyCenter and other products. Now it's adding something called  "Walmart-2-Walmart," a domestic money transfer service that will let consumers send money from one Walmart store to another, starting April 24.

Walmart says prices for the new service will be up to 50% less than that charged by competitors.

Clear fees

“Walmart-2-Walmart offers a clear fee structure with just two pricing tiers: customers can transfer up to $50 for $4.50 and up to $900 for $9.50,” said Daniel Eckert, senior vice president of services for Walmart, on a call to investors, analysts and press, Forbes.com reported. 

Besides its other services for unbanked customers, Walmart and American Express operate Bluebird, an alternative to traditional debit and checking accounts. There are no minimum balance requirements or monthly maintenance fees, although there is a $2 fee for those not enrolled in direct deposit.

A few days ago, we reported that Texas taxi operators were suing Uber and Lyft, the start-up ride-sharing services that are swiping passengers and profits from traditional cabs. 

But lawsuits will only get you so far. To really get some lift under your wings, you need D.C. lobbyists -- and plenty of them.

That's apparently the thinking at Lyft, which has reached the adolescent stage of start-up life, hiring its first two Washington lobbying firms. 

Politico reports today that Jochum Shore & Trossevin and TwinLogic Strategies will be working to give Lyft a bit more pick-up on Capitol Hill and, perhaps, at the Department of Transportation.

The firms will advocate for "the removal of barriers and anticompetitive activities that inhibit ride sharing," according to filings cited by Politico.

In other words, they'll try to get Congress and/or DOT to preempt state and local laws and rules that require taxis, jitneys, limo services and so forth to go to all the bother of getting insurance, commercial drivers' licenses, medallions, permits and other impositions that licensed cabbies have to deal with.

Insurance implications

Ohio is the latest state to express dismay over the flood of unlicensed cars for hire suddenly flooding its cities' streets. Lieutenant Governor and Insurance Director Mary Taylor earlier this week issued what she called a "consumer alert" highlighting potential insurance implications of Lyft, Uber, et al. 

The Internet is a wonderful thing. All kinds of information is at your fingertips. Twenty-five years ago getting that information might have required a trip to your local library.

But if you happen to consult the Internet on health issues, rather than talking them over with your doctor, you might be making a big mistake.

University of Florida (UF) researchers have surveyed the quality of health information on the Internet and found some of it lacking. In fact, depending on where you look, the information you find could be hazardous to your health.

Let's start with how you search for information. In most cases you probably go to a search engine and type in the name of what you're looking for – ear infections, for example.

The broader the topic, the better

The search results for this relatively broad topic might, in fact, provide high quality information. High quality, because it comes from respected sources like the National Institutes of Health (NIH), Mayo Clinic or Harvard Medical School.

But let's suppose you were interested in more specialized and esoteric topics, like vaccines for newborn. When the the UF researchers searched that term, they got links to blogs and forums that discuss delaying or refusing medically recommended vaccinations.

The opinions, for the most part, were not posted by doctors but just ordinary people. True, everyone is entitled to their opinion, but when taking advice about your health, it might be nice if the advisor at least went to medical school.

Be discriminating

“Based on these results, health consumers and patients may feel assured that they can find some high-quality health information when using a search engine,” said study co-author Christopher A. Harle. “However, consumers and patients should know that searches for some health topics, such as nutrition or fitness, may result in more information that is potentially lower quality.”

We thought we would try it ourselves, searching the relatively broad term “knee pain.” Sure enough, the second entry in the search string was from the Mayo Clinic and the fourth from NIH.

However, there were three paid search placements at the very top of the page, none of which seemed quite as credible. All three were clearly marked as advertisements and consumers seeking unbiased health information should consider them as such.

Next we searched for information about nutritional supplements. Here, the results were mixed.

The first link in the search list was for GNC, a retailer that sells supplements. However, the second entry was for the Food and Drug Administration's (FDA) page on the subject.

Widely used health source

The Pew Research Center says 59% of American adults look for health information online, and 6 out of 10 people in this group report that their most recent search influenced their health-related decisions.

This troubles the UF researchers because of the way consumers tend to look at search results. Users usually focus on results listed on the first page of a search.

Because of that,the researchers say, consumers may be more likely to find erroneous information if search engines rank lower-quality websites higher.

“Inaccurate or misleading results could lead people to ignore important symptoms and delay or even refuse recommended health care,” said Brent Kitchens, the study’s lead author. “Low-quality results could also lead people to seek unnecessary health care or implement unproven or potentially harmful at-home treatments.”

The health information available on the Internet can be helpful for exploring symptoms and researching treatments. But the information gathered online shouldn't be used for self-diagnosis, the researchers say.

Rather, it should help start a conversation with your physician.

Airbnb may be a bit farther down the road than Uber, Lyft and other Internet ride-sharing services but it is also beginning to feel the iron boot of the State on its neck.

The popular room-sharing service enables homeowners and renters to make a few extra dollars by renting out their unused space a day or two at a time. Even business travelers are beginning to routinely book rooms through Airbnb and competitors like VRBO instead of staying in a hotel.

But there is a catch: in many cities, it's illegal to rent rooms a day or two at a time. And many apartment and home leases expressly forbid it. Consumers who rent out their home or apartment through Airbnb risk eviction and fines.

Sort of legal

Now Airbnb's home city of San Francisco is trying to make the practice at least sort of legal, although it's turning out to be more difficult than expected.

San Francisco Board of Supervisors President David Chiu has been working on the measure for two years. In the combined city and county of San Francisco, Chiu is the equivalent of the mayor in most cities.

Current laws prohibit short-term rentals in apartment buildings with four or more units. And the planning code basically prohibits using residential properties for commercial purposes without special permits.

Chiu's bill would expand the regulation to cover apartment buildings with as few as two units but would legalize short-term rentals in most cases. Chiu admits the bill isn't perfect but says it would at least bring short-term rentals out of the shadows.

"We believe a different approach is necessary to create a distinction between reasonable behavior and bad behavior, all in the context of our scarce housing stock," he said, according to SFgate.com. "And on the other hand, (we support) the idea that working families, students and residents trying to make rent might be able to slightly supplement their income if they happen to go out of town for a weekend or go on vacation during summer break or visit family during the holidays."

Landlords -- especially those who own rent-controlled apartments -- are unhappy, fearing that their tenants will engage in profiteering. Hoping to accommodate them, Chiu's bill stipulates that the new law would not override lease agreements and rent-control provisions would still apply to short-term rentals.

Single-family homes would still be barred from turning themselves into occasional hotels. Chiu said he's open to modifying that but opposition from neighborhood groups is anticipated. 

Airbnb is one of San Francisco's 10 biggest tech employers, so the city fathers are trying to proceed delicately.

Operators of a Baltimore-based immigration services scam have been ordered to pay as much as $616,000 in refunds to Spanish-speaking immigrants, who were tricked into paying for services the defendants were not qualified or authorized to provide.

The federal court order also bans Manuel and Lola Alban and their company, Loma International Business Group, from providing or promoting these services in the future.

The court found that some customers “suffered severely” for relying on the defendants. Several were deported and one was arrested and jailed for almost 11 months, according to the court.

Unauthorized providers

In March 2013, the court found the Albans and their company liable for violating the FTC Act. Targeting Spanish speakers from El Salvador and Honduras, the Albans misled immigrants to believe they were authorized to provide immigration services for a fee, according to the court.

Under federal regulations, except for attorneys, only authorized providers may accept money in exchange for preparing immigration forms on someone else’s behalf.

The court found that although the defendants were not authorized providers, they took in an estimated $479,000 to $753,000 from unsuspecting immigrants.

The Court also noted that according to United States Citizenship and Immigration Services data, the agency denied or rejected more than 60 percent of the immigration applications handled by the Albans.

“Misleading people to steal their money and destroy their dreams crosses the line,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “The FTC is here to protect people from just these kinds of scams.”

Fines and bans

The court order requires the Albans to pay the refund judgment in installments totaling up to $616,000, depending on the number of victims the FTC is able to locate to receive a refund.

In addition to banning the defendants from providing immigration services, the order prohibits them, their employees, and others representing them from misrepresenting anything about goods or services they are promoting -- including that they are qualified or authorized to provide immigration or tax preparation services.

It also requires all customer information held by the defendants to be destroyed, and all customer information held by a court-ordered monitor to be turned over to the FTC.

Initial applications for state unemployment benefits inched higher during the week ending April 12 after plunging the previous week to their lowest level since 2007.

Government figures show claims totaled a seasonally adjusted 304,000 -- an increase of 2,000

from the previous week, which was revised up by 2,000 to 302,000. Economists surveyed by Briefing.com had forecast an increase to 312,000.

Suspicious numbers

While the Labor Department (DOL) says there were no special factors in the initial claims number, analysts note that the government has had problems managing the seasonal adjustment factors around the Easter holiday. Thus, they say they suspect that the claims are underreporting actual layoff levels and look for the claims level to be back in the 320,000 – 330,000 range by the beginning of May.

Stern Agee Chief Economist Lindsey Piegza says the increase was expected after the "outsized decline" the week before. She also points out that "claims have been on the decline for quite some time and that hasn't yet translated into meaningful improvement on the other half of the equation, job creation, as hiring remains unimpressive."

The 4-week moving average, which is consider a better barometer of the labor market because it's less volatile than the weekly number, fell 4,750 to 312,000 -- the lowest level for this average since October 6, 2007 when it was 302,000.

The full report may be found on the DOL website.

Volkswagen of America is recalling 26,452 model year 2014 Jetta, Beetle, Beetle Convertible, and Passat vehicles equipped with a 1.8T engine and torque converter automatic transmission.

The O-ring seals between the oil cooler and the transmission in the affected vehicles may leak fluid which could contact a hot surface and result in a vehicle fire.

Volkswagen will notify owners, and dealers will replace the O-ring seals in the transmission oil cooler, free of charge. The recall was expected to begin on April 16, 2014.

Owners may contact Volkswagen at 1-800-822-8987. Volkswagen's number for this recall is 38B9/9V.

The Purina Animal Nutrition feed plant in Portland, Ore., is recalling certain poultry feeds due to the potential for lower-than-expected vitamin and trace mineral levels.

Inadequate vitamin and trace mineral levels can result in health problems, including mortality, in poultry.

No customer complaints have been received to date.

The products were distributed to retailers in Oregon and Washington.

The products and lot numbers involved in the recall are:

The recalled products were packaged in typical brand-specific feed bags. Lot numbers are printed on the sewing strip of each bag. Lot numbers are interpreted as follows:

• Example 4APR09RIV1: 4=Year / APR=Month / 09=Day of Month / RIV=Plant Code / 1=Shift code.

The problem was discovered during the investigation of an ingredient inventory discrepancy.

Retailers have been contacted and instructed to immediately withdraw from sale the recalled product and notify customers who purchased the product. Customers should discontinue feeding the product immediately. Customers who purchased this product should return remaining bags to their retailer.

Consumers may contact Purina customer service at 1-800-245-5333, Monday through Friday 7:00 AM to 4:30 PM PDT.  

You could see this coming from way down the road: General Motors is claiming that it should not be held responsible for injuries and deaths resulting from the defective ignition switches in Chevy Cobalts, Saturn Ions and other models.

That's because the cars were built by GM's predecessor -- you know, General Motors. 

The argument is that "Old GM" went bankrupt and "New GM" is a separate corporation that should not be held responsible for the actions of its predecessor.

Lawyers and consumer advocates have been expecting GM to trot out that claim and there is already at least one proposed bill in Congress that would block the strategy.

The faulty ignition switches -- which can turn off the engine, airbags and other essentials while the car is in motion -- have been linked to the deaths of at least 13 people. GM has recalled 2.6 million GM vehicles.

Most of the recalled models were built before GM filed for bankruptcy in 2009. 

GM made its argument in a filing Tuesday with the U.S. District Court for the Southern District of Texas. It asked for a stay on litigation until the bankruptcy court rules on whether lawsuits arising from the recalls would violated the 2009 bankruptcy court's orders.

It also seeks a stay until a judicial panel on multidistrict litigation decides whether numerous claims around the country should be consolidated into a single action.

Senator wants parts update

Sen. Richard Blumenthal (D-Conn.), meanwhile, is calling on GM to provide the public with accurate information on the number of ignition switch and lock replacement parts shipped and a timeline of when all dealers in need will have the necessary parts.

According to an informal survey of 34 GM dealers in Connecticut, 11 of 14 dealers that responded were still having difficulty getting replacement parts, Blumenthal said. The survey was conducted by the Connecticut Automotive Retailers Association.

Reports in trade papers have said that parts are begining to "trickle in" to dealers around the country. 

GM has scheduled a Web conference today to update dealers. It had said earlier that parts would start to be delivered on April 7 but the date was pushed back and GM said it started shipping parts last Friday.

“We are updating our dealers on the status of the ignition switch recall and how to provide the best customer experience as we take care of owners who have been affected by this recall. This is a private communication between GM and our dealer network,” GM spokesperson Ryndee Carney wrote in an e-mail to Automotive News.

U.S. motorists, for most of the year so far, had been spared the sudden jump in gasoline prices that marked recent winters and early springs.

Our luck seems to have run out.

The national average price of self-serve regular is $3.64 a gallon, a 13-cent rise from the $3.51 average just a month ago, according to the AAA Fuel Gauge Survey. The price is up 12 cents over the average a year ago.

Crude oil prices have been relatively stable. The Middle East has been quiet. The only international tension is centered in Ukraine, not exactly a major oil producer.

Supply and demand?

Triple-A attributes the spike to domestic supply and demand issues. The latest Energy Information Agency report on domestic gasoline supplies showed a drop to the lowest level since last fall.

U.S. oil refineries have completed their seasonal maintenance and have switched over to producing summer-grade fuel blends, which tend to be somewhat more expensive than fuel produced in the winter. Beyond that, there seem to be few explanations for the sharp price spike.

As usual, the highest gasoline prices tend to be along the east and west coasts. In California, the statewide average gasoline price is $4.18 a gallon, up 22 cents from just a month ago. The average price has jumped 12 cents in just the last week.

LA blues

Southern California drivers have it the worst. According to the AAA survey, the average price for regular in the Los Angeles metro is around $4.30 a gallon and $4.25 a gallon in San Diego.

San Francisco, usually the costliest California metro in which to fill up, has an average price of $4.21.

On the other end of the scale, the cheapest gasoline is found in the Mountain West and Great Plains. Utah and Montana have average prices of $3.31. Idaho has an average price of $3.39 a gallon.

No doubt California pump prices are raising the national average but another contributor may be an increase in southeastern states, which normally log some of the lowest prices in the nation.

Southeastern drivers paying more

Not so in recent weeks. The average pump price in Georgia is $3.60. That's up 7 cents in the last week and 27 cents in the last month.

Even South Carolina, which normally has the cheapest gas in the nation because of its low tax, has seen a significant rise in the last month. Today's average price of $3.43 is up 8 cents in the last week and 22 cents in the last month.

Market manipulation?

Conspiracy theorists who see some market manipulation going on are not alone. In an interview with KGTV-TV in San Diego, Charles Langley, publisher of the energy blog FuelTracker.com, says refineries will export fuel at a loss in order to reduce supplies at home, driving up prices.

Bloomberg reported last week that refiners are actually boosting production of gasoline but quotes an energy analyst as saying an increase in exports could be leading to tighter supplies.

Technology is all too often used by pedophiles and those who cater to them. Now a Dutch non-profit has turned the tables and is putting technology to work stopping pedophila.

Computer animation experts working for the Terre des Hommes International Foundation (“For children, their rights and equitable development,” according to its website) have managed to overcome the “uncanny valley” and create a CGI avatar good enough to fool webcam-watching pedophiles.

The avatar, named Sweetie, looks like many young Filipinas recruited to the sex trade. Appearing to be just 10 years old, she spends her days online fielding offers to perform sex acts online. 

“Sweetie” had 20,000 visitors during the eight weeks she spent online last year. Luckily, she wasn't a real little girl forced to perform on camera for paying pedophiles, but a computer-generated avatar created by Terre des Hommes, and controlled by researchers in an Amsterdam warehouse.

During the initial interactions, the researchers gathered information about the predators through social media to uncover their identities. Online contact was cut off before any simulated sexual acts were performed.

Worldwide campaign

Sweetie is part of Terre Des Hommes' campaign to stop webcam child sex tourism, which it calls a “quickly spreading new form of child exploitation that has got tens of thousands victims involved in the Philippines alone.”

TdHIF's website also includes an eight-minute video discussing the child webcam sex industry and Sweetie's part in fighting it (the video contains no sexually explicit content but you might want to avoid watching it at work anyway, as certain parts of it could sound incriminating if overheard out of context).

Of course, Terre des Hommes is hardly the only group working to combat child pornography on the Internet; so is every reputable tech company out there.

Last November, for example, Google launched an anti-child porn initiative involving changes to its search algorithms (to make child pornography harder to find or share online), image-recognition technology to automatically identify potentially problematic pictures, and individual human oversight to, for example, distinguish between exploitative images and harmless photos of kids in the bathtub.

If you read any consumer-tips article on the theme “Getting the most out of your budget,” at some point it'll probably tell you to “check the unit price” or “calculate the total cost” or words to that effect, and the moral of such stories is usually “Paying more money upfront saves money in the long run.”

For example, here's something I wrote last February:

“It's easy to forget that the lowest price or sale price isn't always the best price. … assuming two items of equal quality, which is the better deal — paying $1.00 for one ounce, or $3.79 for six?

“The dollar option certainly takes less money out of your pocket — at least for now. But what is the actual unit cost? You can pay a dollar an ounce for the first option — or pay only 64 cents an ounce, if you shell out $3.79 all at once. In the long term, the more expensive purchase actually offers the better deal — assuming you're going to buy and use the whole six ounces anyway. For things like soap and toothpaste, you definitely will.”

Despite how easy it is to find similar real-world examples, you still need to check the unit price every time, rather than assume “The bigger six-ounce option probably offers a better price than the little one- or two-ounce package.” To illustrate, check out this photo I snapped the other day, when my significant other and I visited the taco/burrito chain restaurant Moe's Southwest Grill.

If you want to buy queso or guacamole, you have three choices: a “side” for 99 cents, “cup“ for $3.49 or “bowl” for $5.99 (plus any applicable sales taxes).

How do those unit prices break down? It says there on the menu board: two ounces in a side, six in a cup and 12 in a bowl.

So if you want six ounces, you can pay $3.49 for a “cup,” but it's cheaper to pay $2.97 for three “sides.” If you want 12 ounces, even the “bowl” costs slightly more than six two-ounce sides: $5.99 versus $5.94.

Buying in bulk is usually cheaper than buying in smaller increments but that's not guaranteed, which is why consumer-tip writers always tell you: “Check the unit price.”

Tobacco companies face tough restrictions when it comes to marketing cigarettes. Advertising for e-cigarettes, on the other hand, faces no such regulations. At least not yet.

Not surprisingly, e-cigarette advertising spending in the U.S. tripled in one year, according to a study by RTI International. The researchers found ad spending went from $6.4 million in 2011 to $18.3 million in 2012.

“E-cigarette advertising expenditures are focusing heavily on national markets and TV ads, which will likely increase consumer awareness and use of e-cigarettes,” said Annice Kim, Ph.D., senior social scientist at RTI and co-author of the study.

Most of the ad spending was for television and magazines. Newspapers and the Internet received the lowest share.

Gray area

At the moment, e-cigarettes fall into a regulatory gray area. A federal court has ruled that they are tobacco products, even though they contain no tobacco.

But while cigarettes are barred from television and radio advertising, and face other restrictions, e-cigarettes remain unregulated, even though the Federal Trade Commission (FTC) is reportedly drafting proposed rules.

Many former smokers praise e-cigarettes as a means to quit. They say e-cigarettes provide many of the pleasures of smoking, with nicotine delivered through water vapor that can be inhaled.

While e-cigarettes lack many of the toxins found in tobacco smoke, some health advocates worry that e-cigarettes could have some negative health effects that aren't yet known. Meanwhile, they are being heavily advertised.

“Our results suggest that federal-level efforts are needed to track e-cigarette advertising, as the U.S. Federal Trade Commission (FTC) does not currently require companies to report e-cigarette ad expenditures,” Kim said. “Tobacco companies are required to report their ad expenditures annually to the FTC, but there are no comparable reporting requirements for e-cigarette companies because e-cigarettes are not regulated by the U.S. Food and Drug Administration.”

Congressional push

Eleven members of Congress released their own report this week, not only showing a spike in e-cigarette advertising but claiming the marketing efforts are aimed at young people.

“For years, federal regulations prohibiting tobacco companies from targeting young people have helped to protect a new generation of smokers from getting hooked on nicotine,” said Sen. Richard Durbin (D-IL). “Now, we must close this new gateway to addiction to protect our children.”

Rep. Henry Waxman (D-CA), said he sees parallels between past cigarette marketing and e-cigarette marketing.

“E-cigarette makers are starting to prey on kids, just like the big tobacco companies,” Waxman said. “With over a million youth now using e-cigarettes, FDA needs to act without further delay to stop the companies from marketing their addictive products to children.”

States taking action

Some states have not waited for the federal government to draft rules governing e-cigarettes. Kentucky Gov. Steve Beshear this week signed legislation that outlaws the sale of e-cigarettes to minors.

The law addresses concerns that young people will be lured into using e-cigarettes and, as a result, will become addicted to nicotine. E-cigarette makers, meanwhile, are trying not to be seen as promoting use by young consumers.

One of the main cheerleaders for the new Kentucky law was Lorrilard, a major tobacco firm and parent company of the Blu e-cigarette brand.

"Legislation that prevents the sale or distribution of electronic cigarettes to minors is the right thing to do," said Murray Kessler, Lorillard's chairman and CEO, who attended the bill signing.

Kessler said Lorillard has actively supported age of purchase legislation in other states and encourages states that have not passed similar legislation to do so.

Concerns about cigarette marketing

A new study by Dartmouth researchers, meanwhile, raises new concerns about young people's exposure to advertising for traditional cigarettes. This exposure, the study argues, leads to increased use of tobacco.

“For several years, the emphasis in the tobacco industry has been on direct marketing, especially to young people who are highly price sensitive and who may find coupons, samples, and promotions appealing,” said Samir Soneji, a Dartmouth professor and lead author of the study.

The research team said it found exposure to tobacco coupons and websites increased the chances that a young person would start to smoke. Direct marketing includes coupons and ads sent through the mail or posted on the web, as well as in-store displays and signs.

In 2010, the tobacco industry spent $236 million in cigarette coupons and $22 million in Internet marketing, the study found.

Internet marketing proved particularly effective as some of it made its way to social media, widely used by teens and young adults.

DISH Network has agreed to refund about $2 million to customers in Washington state, following complaints that the company collected an unlawful monthly line-item surcharge beginning in May 2012.

In an agreement with Attorney General Bob Ferguson, DISH agreed to:

• Refund approximately $2 million to Washington state consumers;

• Provide additional benefits to consumers that could total up to $3 million; and
• Pay the state $569,500 for costs and fees.

Ferguson said that hundreds of thousands of Washington consumers were illegally charged a dollar per month for up to eight months. From May through December of 2012, DISH charged consumers a “WA State Surcharge” or “WA Surcharge” ranging from $1.00 to $1.09 — stopping only after Ferguson's office began an investigation.

“DISH’s actions cost hard-working Washingtonians millions of dollars, one buck at a time,” said Ferguson. “The Attorney General’s Office will prosecute any company that tries to make a buck through deceptive billing.”

Consumers to receive a full refund

Consumers will get a full refund of the surcharge they paid, regardless of whether they are still DISH customers.

Consumers do not need to do anything to get their refund — it will be issued as a bill credit for current customers or a check to former customers who paid the surcharge. DISH will contact all eligible consumers via mail or email.

In addition, residential subscribers who paid the surcharge, and who are still DISH customers, will get to choose one of the following benefits:

1. A ten dollar credit applied to their monthly bill;
2. Two free pay-per-view movies; or
3. Two months of free access to Epix movie channel (if they are not already subscribed to Epix).

Commercial subscribers, such as bars or restaurants, who paid the surcharge and are still DISH customers and who file a claim will receive a $10 bill credit.

Depending on the number of consumers who file a claim, DISH could provide about $3 million in additional benefits to Washington consumers.

The settlement applies only to consumers in Washington state.

What to do

While no action is needed to receive the refund, affected consumers must submit a claim form to choose and receive their additional benefit.

DISH is developing a web page — www.WaDISHsettlement.com — where consumers will be able to submit claims forms. The web page goes live on April 25, 2014.

Consumers wishing to claim their benefits under this settlement must submit a claim form and choose their benefit by Aug. 17, 2014.

Cases of diabetes and pre-diabetes in the United States have nearly doubled since 1988, with obesity apparently to blame, according to new research from the Johns Hopkins Bloomberg School of Public Health.

The burden of the disease has not hit all groups equally, with alarming increases in diabetes in blacks, Hispanics and the elderly.

According to new research reported in the April 15, 2014 issue of the Annals of Internal Medicine, diabetes increased from 6% to 10% in the past two decades and pre-diabetes also doubled in prevalence over the same period. Depending on the definition used, current estimates of the prevalence of pre-diabetes range from 12% to 30% in the population.

“There is a growing need to recognize this serious issue, especially since most cases of diabetes can be prevented through weight loss and other lifestyle changes,” said lead author, Elizabeth Selvin, PhD, MPH, an Associate Professor at the Johns Hopkins Bloomberg School of Public Health.

More cases being diagnosed

“The implications of the increase in pre-diabetes and diabetes are enormous but the good news is we are doing better with screening and diagnosis,” says Selvin.

While diabetes has increased dramatically in the population, the investigators found that the proportion of undiagnosed cases has decreased. Currently, only 11% of diabetes cases in the U.S. population are undiagnosed, suggesting major improvements in screening and diagnosis of diabetes during the last two decades.

However, major challenges still exist despite improvements in screening and treatment for diabetes. The investigators found a greater prevalence of pre-diabetes and diabetes, particularly undiagnosed diabetes, in ethnic minorities compared with whites. This disparity has increased over the past 20 years.

“The substantially greater prevalence of pre-diabetes and diabetes, and poor rates of glycemic control (even among persons with medication-treated diabetes) in ethnic minority populations is particularly concerning,” Selvin said. “Especially since blacks and Mexican Americans are also at a greater risk for complications of diabetes.”

Total diabetes in blacks was nearly double the prevalence in whites (15% vs. 9%). Mexican Americans also had a greater prevalence of diabetes than whites (12% vs. 9%).

43,000 cases studied

In 2010, approximately 21 million American adults aged 20 or older had confirmed diabetes (either diagnosed or undiagnosed). The investigators analyzed data from more than 43,000 participants collected over two decades in the National Health and Nutrition Examination Surveys (NHANES), hoping to update national trends in pre-diabetes, diabetes and its treatment based on data from the NHANES.

One novel aspect of this study was to “confirm” cases of undiagnosed diabetes in the population. The investigators used a lab test that measures glucose over the past three months to confirm all cases of undiagnosed diabetes in their study to give the most realistic estimate of the burden of the condition in the population.

The study was funded by the National Institutes of Health.

In an effort to prevent deaths and injuries to infants and children, the U.S. Consumer Product Safety Commission (CPSC) has unanimously approved a new federal mandatory standard intended to improve the safety of soft infant and toddler carriers.

A soft infant and toddler carrier is normally made of sewn fabric construction, designed to hold a full-term infant from 7 pounds to toddlers up to 45 pounds in an upright position. The carrier allows a child to be carried in close proximity to the caregiver on the front, back or hip. Slings and framed carriers are excluded from this standard and are covered by separate voluntary standards.

The new federal standard incorporates by reference the most recent voluntary standard developed by ASTM International (ASTM F2236-14), Standard Consumer Safety Specification for Soft Infant and Toddler Carriers, without modification.

Broad application

The mandatory standard becomes effective on September 29, 2014, and applies to all soft infant and toddler carriers manufactured or imported on or after that date.

The new safety standard addresses reported hazards associated with soft infant and toddler carriers, including:

• Infant falls
• Structure, fit and position issues
• Strap issues
• Stitching and seam issues.

CPSC has received about 125 incident reports related to soft infant and toddler carriers that occurred from January 1, 1999 through July 15, 2013.

Four of those incidents resulted in fatalities.

Two Massachusetts companies allegedly violated consumer protection laws by improperly suggesting to consumers – through mailed advertisements and door-to-door flyers – that the water supplied to their homes was not safe, fit and pure to drink.

Attorney General Martha Coakley said the companies -- Basement Technologies, Inc., and McMahon Plumbing & Heating LLC -- have agreed to a settlement.

“We allege this advertising misled residents about the quality of their drinking water that our environmental and public health agencies in the Commonwealth work so hard to protect,” Coakley said. “Our office is pleased that these settlements will ensure that these companies follow our consumer laws and stop their deceptive sales tactics.”

“State and local drinking water engineers, scientists and officials work hard to ensure that drinking water in Massachusetts is pure and safe to drink,” said Commissioner David W. Cash of the Massachusetts Department of Environmental Protection (MassDEP). “Safe drinking water is provided to more than 6.3 million consumers every day and these types of deceptive practices erode confidence in the excellent quality of public drinking water available across the Commonwealth.”

Under the settlements, the companies must refrain from any advertising for home water filtration systems that misrepresent the fitness for human consumption of the water supplied by any public water system in the Commonwealth.

"Awareness program"

According to the AG’s investigation, Basement Technologies used a marketing campaign called the “Water Quality Awareness Program” to mislead consumers about the quality of the water supplied to their homes.

The advertising materials, which included an image nearly identical to the Massachusetts State Seal, made it appear that the testing program was a government-sanctioned effort meant to protect public health.

In its marketing campaign, McMahon Plumbing used a photograph of an infected human forearm under the caption “Are you at risk?” to market its home water filter systems, with claims that water tested nearby allegedly detected high levels of chlorine, suggesting that water being supplied to the consumer’s home was harmful.

The water filter systems cost as much as $7,000 for a residential installation.