Current Events in May 2014

Depending on how much faith you have in Walmart's various anti-hacking security standards, the store's new credit card policy will either grant it greater protection from thieves who try using fraudulent credit cards, or make legitimate Walmart customers suffer even worse the next time someone hacks into the right (wrong?) Walmart database.

If you buy things online you almost certainly use a credit card, and when making purchases you don't simply type in your card's account number, expiration date and other front-of-card information; you also type in the three-digit security code on the back.

That number is supposed to be kept super-secret, even more secret than your credit card number, and its purpose is to ensure that someone who does get hold of your credit card number won't be able to use it for anonymous online purchases, since they don't have the three-digit security code as well.

Now, as Texas news station KPRC (Houston) reports, Walmart's rolling out new in-store “security guidelines” which would require customers physically in the store with their physical cards to not merely swipe them, but also type in the three-digit security code that usually confirms the authenticity of purchases made online as opposed to in person.

How is the security of in-person in-store purchases supposed to be enhanced by demanding the number available to anybody with the actual card in hand? As KPRC reports:

But Walmart argues that the most common types of credit card fraud come out of data breaches.  When it happened at Target and Neiman Marcus in recent months, thieves stole the credit card information for millions of consumers. Authorities say they planned on selling the data. Other scammers could create phony cards with legitimate account numbers printed on them. Walmart says the one thing thieves don't get in those breaches is the 3-digit code on the back of your card.

"Walmart's doing the right thing on this one," said Chris Bronk, a Rice University Baker Institute Fellow in IT Policy.

Bronk says ideally the account number and the codes will be stored separately, so would-be data thieves can't get all of your information in one place.

Of course, even in this ideal world, hackers patient enough to get information from two places rather than one will have all the information they need to buy things online with your credit card, and easily circumvent the three-digit security code that's supposed to prevent them from using your card to make online purchases.

Never surrender

Other security advisers say you should never surrender your three-digit code for in-person transactions. When WiseGeek, for example, asked the question “When is it safe to give out the security code on the back of my credit card?”, it discussed the code's role in online security and advised shoppers to avoid both online stores that don't remand it and in-person stores that do:

… you should never release the security code when you are present for a sales transaction. It doesn't show up when the card is scanned, or when a copy of the card is imprinted on a sales slip. People who steal this information, including some people who work at point-of-purchase businesses, don't have all the information needed to make most Internet purchases. Of course, not all companies online ask for your CVV, and it might be a good idea to only use vendors that will require this information when you shop on the Internet to support those vendors that are attempting to stop fraudulent use of your card.

In other news, this website has frequently reported receiving complaints from customers who said their Walmart Money Cards (an Authorized Partner) were hacked. However, a Walmart MoneyCard is entirely different from, say, a Walmart.com online account, like the one held by a woman in Darien, Connecticut whose account was hacked last January.

Hopefully Walmart's three-digit security code database will prove more hacker-proof than other Walmart-secured accounts have been.

Auto manufacturers have big plans for hydrogen-powered fuel cells but most of those plans are far in the future. Toyota earlier this week said fuel cells are the future but battery-gas hybrids are the present.

Perhaps so, but fuel-cell-powered Hyundai Tucson cross-overs came rolling off a freighter near Los Angeles this week and the company says it will begin leasing the vehicles within the next several weeks.

Under the Hyundai leasing program, approved lessees can drive Hyundai’s next-generation Tucson Fuel Cell for $499 per month, including unlimited free hydrogen refueling and valet maintenance at no extra cost.

It marks the first time in the U.S. that retail consumers can put a mass-produced, federally-certified hydrogen fuel cell vehicle in their driveways, with availability at three select southern California Hyundai dealers: Tustin Hyundai, Win Hyundai in Carson, and Hardin Hyundai in Anaheim.

“Hydrogen-powered fuel cell vehicles represent the next generation of zero-emission electric vehicle technology, and we’re proud of our leadership role in this important segment of the alternative fuel vehicle market,” said Mike O’Brien, vice president, corporate and product planning, Hyundai Motor America. “The range and refueling time of our Tucson Fuel Cell compare favorably with gasoline vehicles, making them a seamless transition from traditional gasoline-powered vehicles."

Pricing

The Hyundai Tucson Fuel Cell will initially be offered to customers in the Los Angeles/Orange County region for a 36-month term at $499 per month, with $2,999 down, including unlimited free hydrogen refueling.

More information is available at the Tucson Fuel Cell microsite.

The Washington-New York-Boston air corridor is by most measures the second busiest in the country, second only to Los Angeles-San Francisco. But although both Delta and US Airways offer hourly flights, getting to and through the airports on either end can be a major hassle.

There's always Amtrak but for many the convenience of downtown terminals doesn't make up for the roughly three hours on the train.

Tailwind Air Service has a plan to change all that -- by eliminating airports entirely and landing on the water at the East Coast's three biggest cities. It plans to begin daily flights next month from Manhattan’s East 23rd Street Skyport Marina to Boston and Washington, flying nine-seat Cessna amphibians.

Amphibians in this case refers not to frogs and toads but to airplanes that can take off and land on both water and runways. Which is good, because the D.C. and Boston flights will be flying out of and into Dulles and Logan Airports until water landing rights can be straightened out.

But not to worry. Tailwind says the D.C. and Boston flights will use private terminals -- the same ones used by general aviation -- so passengers won't face long lines and security checks. 

The fares range from $450 to $650 each way; the Delta and US Airways shuttles start at $488. The beer and wine will be free though. Tailwind executives think business passengers who make the trip regularly will be more than happy to pay a few dollars more.  

That's been borne out by the experience of Tailwind's sister company, Fly the Whale, established in 2010 to make summer hopes between Manhattan and the Hamptons on Long Island Nantucket Island in Massachusetts. 

“We recognized a need for efficiency and speed and people’s willingness to pay a premium for shorter travel with our Hamptons route,” Melissas Tomkiel told Bloomberg Businessweek.

Your watch, your thermostat, even your refrigerator are just a few of the things Google thinks are simply crying out for ads. 

Ads are good, right? So it's only reasonable that they be plastered on every possible square inch of space. Or, if a square inch isn't available, just about any little remnant will do.

This seems to be the thinking behind a filing with the U.S. Securities and Exchange Commission (SEC) last December, in which Google argued against an SEC request that it disclose the revenue it generates from mobile devices, according to a report in Apple Insider.

"Our expectation is that users will be using our services and viewing our ads on an increasingly wide diversity of devices in the future, and thus our advertising systems are becoming increasingly device-agnostic," Google said.

Mobile revenue

The SEC had asked Google, Facebook, Twitter and other companies to provide their investors with more detail on their mobile revenue, which is thought to be something of a sore spot with Google, since it trails its arch-rival Facebook in mobile ad revenue by most measurements.

None of this is very surprising, really. It's quite apparent that Google is still in its gung-ho phase, seeking to organize (and capitalize on) the world's information. Back in the 1990s, it was Microsoft whose goal was total world domination. It has come down a few notches since then and it's likely Google will too, one of these days.

But until then, it's full steam ahead for Google and Facebook, the clear leaders in the ads-everywhere derby, and a quick look at Google's recent acquisitions and new products offers further evidence of the company's interest in the Internet of Things, wearables and mobile devices.

It bought Internet-enabled thermostat and smoke alarm maker Nest for $3.2 billion, has been betting big on Google Glass and other wearables and, of course, is the parent of the Android operating system that powers more mobile devices than any other.  

Apple followers seem a bit irked by all of this but, aside from the privacy aspects of it all, no one else seems to be protesting too much.

What we don't understand is why Google hasn't yet put contextual ads on buses, delivery trucks and postal vans. Besides solving the Postal Service's budget problems, ads on moving vehicles could alert us to upcoming coffee shops, super sidewalk sales and burrito buffets.

Maybe for a slight subscription fee we could also get speed trap warnings?

Mortgage applications posted their third straight increase last week.

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey applications edged up 0.9% during the week of May 16.

“Renewed concerns about the state of the global economy, particularly in Europe, led to a flight to quality to US Treasury securities, thereby pushing interest rates down in the U.S.,” said Mike Fratantoni, MBA’s Chief Economist. “Rates on conforming loans hit 6-month lows and jumbo rates hit 12-month lows.”

The Refinance Index rose 4% from the previous week, pushing the refinance share of mortgage to 52% of total applications from 50% the previous week. Still, refinance volume is more than 65 percent below last year's pace.

The adjustable-rate mortgage (ARM) share of activity remained at 8% of total applications.

Contract interest rates

• The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) was down 6 basis points -- from 4.39% to 4.33% -- the lowest rate since November 2013, with points decreasing to 0.20 from 0.22 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate dropped from last week.
• The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) decreased to 4.24%, the lowest rate since May 2013, from 4.29%, with points falling to 0.1 from 0.16 (including the origination fee) for 80% LTV loans. The effective rate was down from last week.
• The average contract interest rate for 30-year FRMs backed by the FHA dipped 3 basis points -- 4.06 percent, the lowest rate since October 2013, with points decreasing to -0.39 from -0.17 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
• The average contract interest rate for 15-year FRMs went from 3.48% to 3.43%, the lowest rate since October 2013, with points increasing to 0.15 from 0.12 (including the origination fee) for 80 percent LTV loans. The effective rate was lower than the week before.
• The average contract interest rate for 5/1 ARMs decreased to 3.14% from 3.17%, with points rising to 0.29 from 0.24 (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.

If it's Wednesday, there must be more General Motors recalls. There are -- 2 of them.

In the first, the automaker is recalling 218,000 model year 2004-2008 Chevrolet Aveo vehicles equipped with daytime running lights (DRL).

There may be heat generated within the DRL module located in the center console in the instrument panel, which could melt the DRL module, which could cause a vehicle fire.

The remedy for this recall campaign is still under development, and a notification schedule has not yet been provided.

Owners may contact General Motors customer service at 1-800-222-1020 (Chevrolet). General Motors recall number for this campaign is 14236.

In the second instance, GM is recalling 214 model year 2004-2008 Chevrolet Optra vehicles.

There may be heat generated in the headlamp switch or daytime running light (DRL) module and the heat could melt the headlamp switch or the DRL module, increasing the risk of a vehicle fire.

The remedy for this recall is still under development, with no word yet of a notification schedule.

Owners may contact General Motors at 1-800-222-1020 (Chevrolet). General Motors recall number for this campaign is 14093.

The disclosure of fees for certain basic airline services such as checked baggage is among the new consumer protections for air travelers being proposed by the U.S. Department of Transportation (DOT).

“Knowledge is power, and our latest proposal helps ensure consumers have clear and accurate information when choosing among air transportation options,” said Transportation Secretary Anthony Foxx. The proposal, he added, “will strengthen the consumer protections we have previously enacted and raise the bar for airlines and ticket agents when it comes to treating travelers fairly.”

In addition to fee disclosure, the proposal would require more carriers to report their performance data to DOT, and codify the department’s definition of a ticket agent to ensure that companies that offer flight search tools and receive a form of compensation are adhering to the DOT consumer protection requirements.

Areas of coverage

Under the proposed rule, airlines and ticket agents would be required to disclose fees for certain basic, additional services associated with airline tickets at all points of sale. The proposal defines these services as first checked bag, second checked bag, one carry-on item, and advance seat assignment.

Currently, fees for additional services are often difficult to determine when searching for airfares and as a result, many consumers are unable to understand the true cost of travel before purchasing a ticket.

Fees seem to be a real bone of contention with consumers. Jeff of Indianapolis, Ind., says Frontier Airlines charged him $50.00 to carry on his computer bag because he did not purchase his ticket directly through the carrier. "This is a rip off," he writes in a ConsumerAffairs post. "To me Frontier is a bait and switch airline. They list their prices cheap on third-party websites but then snag you with fees once you get to the airport. Even if I see their prices $200 cheaper I will never fly them again; it's more the principle."

The proposed rule would also expand the pool of carriers that would be required to report information about their on-time performance, oversales, and mishandled baggage rates.

The proposal would also:

• Require large travel agents to adopt minimum customer service standards such as responding promptly to customer complaints and providing an option to hold a reservation at the quoted fare without payment, or to cancel without penalty, for 24 hours if the reservation is made one week or more prior to a flight’s departure date;
• Require carriers and ticket agents to disclose any code-share arrangements on initial itinerary displays on their websites; and
• Prohibit unfair and deceptive practices such as preferentially ranking flights of certain carriers above others without disclosing the bias in any presentation of carrier schedules, fares, rules, or availability.

BMW of North America is recalling 1,420 model year 2013 R 1200 GS motorcycles manufactured November 2012, through August 2013.

Pressure inside the transmission may cause the transmission output seal to be pushed out of place. That could cause oil to leak from the transmission onto the rear tire, increasing the risk of a crash.

BMW will notify owners, and dealers will fit a bracket to prevent the transmission seal from being pushed out of position, free of charge. The recall is expected to begin in June 2014.

Owners may contact BMW customer service at 1-800-525-7417.

Hot Mama’s Foods is recalling approximately 14,860 pounds of hummus and dip products.

The products may be contaminated with Listeria monocytogenes.

No illnesses have been reported

The following products, packaged in plastic containers, are subject to recall:

Consumers who have purchased the above products are urged not to eat them and to dispose of them or return them to the place of purchase for a full refund.

Consumers with questions may call toll free (877) 550-0694 from 8:00A.M. to 8:00P.M. (EST) 7 Days a week.

GM's recent series of safety-related recalls is reason enough to wonder about the safety of your set of wheels. Could there be an open recall on the car you're driving?

If you are the one and only owner of your vehicle, chances are you will know if there is a recall. If you're driving a used car, you might not.

Not all consumers who receive a recall notice for their vehicle respond. That's why the flood of GM recalls in recent months is troubling. Not all of the recalled vehicles are going to make it into the shop.

If the vehicle seems to be running okay, a car owner might not find the time in their busy schedule to take it to the dealer for the repair. Once they sell the vehicle, the new owner probably won't know the car has a safety defect that hasn't been fixed.

People should, of course, get their recalled car repaired, not just for the person who owns the car after them do but for their own safety. Research from the Highway Loss Data Institute found that repairing recalled vehicles reduces "dangerous incidents" for drivers.

Fewer insurance claims

One item from the study stands out; the recalled cars that received the mandated repair were the subject of fewer non-crash fire insurance claims – meaning they were not only safer but less expensive to drive, since insurance rates didn't go up as much.

In 2013, manufacturers recalled 22 million cars and that number is expected to be higher in 2014, especially with all the GM cars heading into the shop. The insurance industry is increasingly concerned that more of them will slip through the recall net.

"Getting unsafe cars and trucks off the road to be repaired is important for the safety of all drivers," said Mark R. Desrochers, president, Personal Lines insurance at The Hanover. "The end result is fewer accidents and more lives saved."

New recall label

Beginning this year the National Highway Traffic Safety Administration (NHTSA) introduced a standardized label that car manufacturers must use when sending out recall notices. In the past some consumers have said what they thought were recall notices turned out to be cleverly designed marketing pieces.

NHTSA has also launched a free mobile app called SaferCar for Apple or Android smartphones. It sends recall notices right to your phone.

An automotive website called DriverSide, partnering with Hanover, tracks car recalls, and provides maintenance and repair information.

"These efforts by industry and government emphasize the importance of sharing information and consumers acting quickly when recall notices are issued," Desrochers said.

Used cars pose a problem

Things get trickier when you buy a used car. Earlier this year Carfax, an automotive data provider, reported that in 2013 there were 3.5 million used cars for sale online with an open, or unrepaired, recall.

"Open recalls are still a major public safety issue," said Larry Gamache, a Carfax spokesman. "In fact, our research indicates that more than one in ten used cars for sale online has an open recall. It's another reminder that consumers, especially those shopping online, need to know as much as possible about a used car before they buy. This includes if an open recall or other potentially dangerous issue exists.”

According to the Carfax report, Texas, California, Missouri, Florida and Ohio had the most recalled cars for sale online last year, accounting for one-third of the total.

What's a consumer driving a used car to do? The best advice is, unless you know otherwise, assume your vehicle probably has an open recall.

Take advantage of this database to search your car's Vehicle Identification Number (VIN) to see if there is an open recall. If there is, contact a local dealer to schedule the repair.

For years, angry pet owners have accused jerky treats for causing their dogs' and cats' illness and deaths. The U.S. Food and Drug Administration (FDA) has been collecting and studying case reports but says it still hasn't pinned down the exact cause of the problems, although it has confirmed the presence of a prohibited antiviral drug in treats containing chicken from China.

In its latest report, the FDA said it has combed through more than 4,800 complaints of illness in pets that ate chicken, duck, or sweet potato jerky treats, nearly all of them imported from China.

The reports include more than 1,000 canine deaths and involve a total of more than 5,600 dogs, 24 cats and three people. Some consumers reported illness in more than one pet.

The symptoms reported will sound familiar to anyone who's kept up with the problem: approximately 60 percent of the cases report gastrointestinal/liver disease, 30 percent kidney or urinary disease, with the remaining 10 percent of complaints including various other signs such as neurologic, dermatologic, and immunologic symptoms.

About 15 percent of the kidney or urinary cases also tested positive for Fanconi syndrome, a rare kidney disease that has been associated with this investigation.

Veterinarian reports

Besides reports from consumers, the FDA said it has received "many well-documented case reports" from veterinarians, the result of an October 2013 "Dear Veterinarian" letter the agency sent to vets nationwide.

Following up on the vets' reports, the FDA conducted 26 examinations of dead dogs. It found that half of them had causes of death that appeared to be related to consumption of jerky treats.

While the other 13 did not appear to be directly related, the FDA said "an association with consumption of jerky pet treats could not be ruled out."

Help from CDC

The FDA has also asked the Centers for Disease Control and Prevention (CDC) for help. Although it normally deals only with human illness, the CDC is assisting with a study of cases involving sick dogs compared with a control group of healthy dogs.

The goal is to compared the foods eaten by the sick dogs compared with that eaten by the healthy dogs and to determined whether sick dogs ate more jerky and other pet treats than healthy dogs.

The study is still underway. Results will be released when it's finished.

Drug testing

Adapting a testing methodology used by New York, the FDA said it has found low levels of the drug amantadine in some jerky samples containing chicken. Amantadine is an antiviral that is approved for use in humans but is prohibited in chickens.

The FDA said it "does not believe that amantadine contributed to the illnesses because the known side effects or adverse events associated with amantadine do not seem to correlate with the symptoms seen in the jerky pet treat-related cases."

But the agency said there should be no amantadine in jerky treats and said Chinese officials have "assured us that they will perform additional screening and will follow up with jerky pet treat manufacturers."

What to do

What's a pet owner to do? The most obvious is to avoid feeding jerky treats to pets. The FDA notes in its reports that jerky treats are not required for a balanced diet.

Animal lovers who want to give their pets an occasional treat or need to use treats for training purposes should talk to their veterinarians about which treats are best for their dog. As in humans, too many treats can lead to obesity and can crowd out healthier foods.

FDA is still collecting information. If your pet has become ill after eating jerky treats, you are encouraged to report it to FDA.

"While FDA does not necessarily respond to every individual complaint submitted, each report is valuable and becomes part of the body of knowledge that helps to inform our investigation," the agency said.

It's been months now since news first broke of the massive security breach at credit-reporter and data broker Experian: for several months Experian's entire database was accessible to a Vietnamese identity thief.

So how many people had their financial confidentiality placed at risk? Initial reports basically said “Nobody knows for sure, but it's a lot.” A couple months later, that was updated to “Nobody knows for sure, but it's up to 200 million Americans who are at risk — that's five out of every six adults in the country.”

We still don't know the full extent of the damage, and likely won't for a long time yet, but more specific details are coming out.

Security blogger Brian Krebs (who first reported the breach last October) noted this week that the Experian breach has been firmly connected to an identity-theft ring which operated throughout New York and New Jersey—and it's possible, just possible, that Experian executives thus far have been less than honest regarding the scope and extent of the damage:

Last year, a top official from big-three credit bureau Experian told Congress that the firm was not aware of any consumers that had been harmed by an incident in which a business unit of Experian sold consumer records directly to an online identity theft service for nearly 10 months. Today’s post presents evidence that among the ID theft service’s clients was an identity theft and credit card fraud ring of at least 32 people who were arrested last year for allegedly using the information to steal millions from more  than 1,000 victims across the country.

On March 31, 2014, 26-year-old Idris Soyemi of Brooklyn, New York pleaded guilty in a New Hampshire court to one count of wire fraud. In Soyemi’s guilty plea hearing, the prosecutor laid out how Soyemi on several occasions bought Social Security numbers, dates of birth and other personal information from an online identity theft service run by guy named Hieu Minh Ngo.

Middleman

If you've been keeping up with this story, you already recognize Ngo as the alleged Vietnamese identity thief who is said to have posed as a Singaporean private detective in order to buy confidential information from the databases of Experian subsidiary Court Ventures.

Ngo then allegedly acted as a sort of identity-thief “middleman” -- if you, a would-be identity thief, want to steal someone's identity but lack the confidential data necessary to do that, you contact such a middleman through various shady black-market channels and buy the confidential data from him.

Ngo offered a variety of services, according to court documents and testimony. Soyemi's guilty plea mentions how Ngo's customers could choose between “tax refund or credit card” — in other words, is the thief interested in taking out fake credit cards in people's names, or fraudulently filing for and collecting tax refunds in people's names?

Incidentally, last month Krebs reported on another criminal investigation which arose from the Experian breach — an American man and alleged customer of Ngo who is either responsible for filing dozens of fraudulent tax returns last year (according to prosecutors) or is being prosecuted partially in revenge for rejecting a plea agreement but mainly to deflect attention away from Experian's culpability in the matter (according to what he wrote to Krebs).

More details about Ngo's various clients and their victims will surely come out in the weeks and months to come. As of press time, however, there's really no specific advice we can give you regarding how to protect yourself from data brokers with poor security habits or identity-theft entrepreneurs other than the standard “Be vigilant and check your accounts” advice you always see in identity-theft-protection articles like this. Before last October or so, such articles also advised you to “Sign up for monitoring with one of the three major credit bureaus, including Experian.”

It honestly seemed like a good idea at the time.

Parents with young children know the value of an entertaining TV show or computer game when the kids need to be occupied for a short while. But a little screen time goes a long way.

According to National Institutes of Healthguidelines, children under age 2 should have no screen time. Over age 2 they should be limited to 1 to 2 hours per day.

A new survey by the University of Michigan shows kids are spending a lot more time than that in front of a screen. About 25% of parents with children between 2 and 5 say their children get 3 hours or more each day.

Not many rules

Only about half of the parents surveyed said they try to set some limits on viewing by prohibiting media devices in bedrooms or in dining areas.

The American Academy of Pediatrics (AAP) also expressed concern about the time young children spend in front of some kind of media screen. In 2013 AAP updated its guidelines, adopted by NIH, reducing the recommended screen time for children.

The poll found that 53% of parents are following recommendations that children’s entertainment screen time be limited by location. Twenty-eight percent said they use a combination of location and time limits.

More worrying for policymakers is the 13% who admit they place no limits on entertainment screen time and have “screen-free” zones in their homes.

“In our poll, we found that one-quarter of parents of kids 2 to 5 years old are allowing more than three hours of entertainment screen time each day,” said April Khadijah Inniss, M.D., pediatrician at the University of Michigan Health System.

What kids are missing

It's not so much the content of the entertainment that is the problem. Rather, Dr. Matthew Davis, director of the C. S. Mott Children's Hospital National Poll on Children’s Health says it's what the children are missing while they are glued to the screen.

“When you get to three or four hours each day, that screen time crowds out other important activities that babies and young kids should be engaging in: looking at books, going for walks or playing outside,” Davis said.

The survey exposes one area where parents of young children are not on board with the medical community's recommendations. Only 12% of parents of children under age 2 believed it was right to block all screen time.

In fact, these parents overwhelmingly expressed the belief that 2 hours or less a day of screen time is reasonable. After all, there are a number of “educational” media products specifically produced for very young children.

Skeptical of “educational” videos

“Videos aimed at very young children do not improve their development, in spite of what ads that promote them say,” according to NIH.

The health agency says too much time spent in front of TV or a tablet can increase the risk of a child becoming obese, make it harder for a child to get a good night's sleep and could lead to attention problems, anxiety and depression.

While many parents may not want to try to enforce strict rules they could help by setting a good example. In fact, there is data to suggest that can be effective.

Parental influence

AAP cites a 2013 study that showed the amount of time that children and teens spend watching television may have more to do with their parents’ TV habits than with family media rules or the location of TVs within the home.

The researchers say parents’ TV viewing time had a stronger connection to children’s viewing time than rules about time limits, whether the children had a TV in the bedroom, and co-viewing. For every hour a parent spent in front of a screen, their children tacked on an additional half hour.

Sometimes it's a little hard to tell which promising new technology will wind up on top: VHS or Beta, iOS or Android, wind or solar power, battery or fuel-cell cars. 

Even Toyota, the world leader in hybrids, seems to be of two minds about the battery vs. fuel cell question, touting improvements in battery hybrids' efficiency on the same day it says its future efforts will be focused on fuel cells.

The company said from Tokyo today that it has developed a new semiconductor that can boost efficiency of battery hybrids like the Prius by as much as 10%. 

Meanwhile, at an auto industry conference in Los Angeles, Toyota's top U.S. executive, Jim Lentz, said the future would belong to hydrogen-powered fuel cell cars.

"Short-range vehicles"

Battery-powered electric cars are doomed to be "short-range vehicles that take you that extra mile, from the office to the train, or home to the train," Lentz said, according to Automotive News. "But for long-range travel primary vehicles, we feel there are better alternatives, such as hybrids and plug-in hybrids, and tomorrow with fuel cells.”

The two statements aren't as contradictory as they at first appear, however, and appear to be aimed more at Tesla, whose $90,000 sports sedan is being hailed as a work of genius while more affordable gas-and-battery hybrids are getting the ho-hum treatment.

This despite the fact that very few consumers can a.) afford a Tesla or b.) want to drive a car that is powered only by a battery. The hardy Prius and other gas-battery duos, which can be had for as little as $20,000, offer excellent gas mileage and reliability by today's standards. Plug-in hybrids like the Chevrolet Volt offer gas-free driving for those whose travels are mostly short while providing gas-powered back-up for longer trips.

Laws of physics

Tomorrow is another matter, however. While Toyota and other automakers are working to improve battery efficiency, they're basically bumping up against the laws of physics and, minus a major and unforeseen breakthrough, appear doomed to making little more than incremental progress.

Hydrogen fuel cells, on the other hand, offer a range more like today's gas-powered cars with zero tailpipe emissions. They're also cheaper to manufacture than gas-battery hybrids and battery-only cars, once the process scales up. 

The big drawback is refueling stations. Right now, there aren't any to speak of. California is building a network of stations and will be Ground Zero for fuel cell cars but a nationwide roll-out appears to be on the distant horizon at this point.

Thus, Toyota and other manufacturers are turning away from long-range efforts to build battery-powered cars towards fuel cells, while continuing to improve and support their gas-battery hybrids in the interim, as in today's announcement of an improved semiconductor.

Message: don't plan to hang onto your gas guzzler until the fuel cell models hit the market. Gas-battery hybrids are the bridge vehicles that will get you from now to the future.   

In its many apologies and mea culpas after its defective ignition switch debacle, General Motors has said it would speed up the process of identifying and rectifying safety defects in its vehicles. It has issued numerous recalls since then, including a huge batch of 2.4 million vehicles in four separate recalls today.

The recalls are for:

• 1,339,355 Buick Enclave, Chevrolet Traverse, GMC Acadia full-size crossovers from the 2009-2014 model years and Saturn Outlooks from 2009-2010 because front safety lap belt cables can fatigue and separate over time. In a crash, a separated cable could increase the risk of injury to front seat passengers.
• 1,075,102 of the previous generation 4-speed automatic transmission Chevrolet Malibu and from the 2004-2008 model years and Pontiac G6 from the 2005-2008 model years  because of a shift cable that could wear out over time, resulting in mismatches of the gear position indicated by the shift lever.  
• 1,402 Cadillac Escalades and Escalade ESVs from the 2015 model year because an insufficiently heated plastic weld that attaches the passenger side air bag to the instrument panel assembly could result in a partial deployment of the air bag in the event of a crash.
• 58 Chevrolet Silverado HD and GMC Sierra HD full-size pickups from the 2015 model year because retention clips attaching the generator fuse block to the vehicle body can become loose and lead to a potential fire.

There have been no fatalities associated with these recalls, GM said.

More investigators

GM has added 35 product investigators since the beginning of 2014, and, including those announced today, has initiated 29 safety and non-compliance recalls in the U.S. so far this year, the company said. Two of the recalls involve fewer than 100 vehicles.

In the full-size crossover recall, the flexible steel cable that connects the safety belt to the vehicle at the outside of the front outboard seating positions can fatigue and separate over time as a result of occupant movement into the seat. GM has told dealers they cannot sell new or used models of the vehicles until repairs are made.

The previous generation Malibu, Malibu Maxx and Pontiac G6 were added to an April 29 recall for certain 4-speed transmission Aura models from the 2007-2008 model year. The Malibu and G6 vehicles equipped with a 4-speed automatic transmission have a condition in which the transmission shift cable may fracture. When the fracture occurs, the driver may not be able to select a different gear, remove the key from the ignition or place the transmission in park. 

GM is aware of 18 crashes and one injury among the 4-speed Malibu and G6 population.Dealers will replace the shift cable and attachment bracket at no charge to the customer.

Stop sale

GM stopped sale of the 2015 Escalade and Escalade ESV and sent overnight letters, called and emailed the 224 customers who had taken delivery of the vehicles and instructed them to not let occupants sit in the front passenger seat until the vehicle has been serviced. GM knows of no crashes or injuries associated with the Escalades.

The passenger airbag module is attached to a chute adhered to the backside of the instrument panel with an infrared weld that was not sufficiently heated. The issue has been corrected at the supplier and Escalade production is under way at the Arlington, Texas, Assembly Plant.

In the heavy-duty truck recall, certain 2015 model year Chevrolet Silverado HD and GMC Sierra HD model vehicles equipped with a 220 Amp Generator have a condition where the retention clips that attach a fuse block to the vehicle body can become loose, allowing the fuse block to move out of position and lead to a potential fire. No crashes or injuries are known to be associated with the trucks.

GM expects to take a charge of up to approximately $400 million in the second quarter, primarily for the cost of recall-related repairs announced in the quarter. This amount includes a previously disclosed $200 million charge for the five recalls announced May 16.

Consumers whose medical debt gets turned over to collections may be unfairly penalized on their credit scores, according to a research report released today by the Consumer Financial Protection Bureau (CFPB).

According to the study, credit scoring models may underestimate the creditworthiness of consumers who owe medical debt in collections. The scoring models also may not be crediting consumers who repay medical debt that has gone to collections.

“Getting sick or injured can put all sorts of burdens on a family, including unexpected medical costs. Those costs should not be compounded by overly penalizing a consumer’s credit score,” said CFPB Director Richard Cordray. “Given the role that credit scores play in consumers’ lives, it’s important that they predict the creditworthiness of a consumer as precisely as possible.”

According to a study by the Federal Reserve Board, over half of all collections on credit reports are associated with medical bills. The vast majority of medical debt reflected on credit records is reported by third-party collection agencies.

In some instances, the consumer may not even be aware of a debt that has been sent to collections or that it is on their credit record. A collection account generally can stay on a report for up to seven years.

Many current credit scoring models do not differentiate between medical and non-medical debt in collections. This is true even though medical debt is different than other unpaid bills reported by collection agencies, such as unpaid phone or utility bills.

Medical debt can result from an event that is unpredictable and costly. Sometimes the debt is caused by billing issues with medical providers or insurers. Complaints to the CFPB indicate that many consumers do not even know they have a medical debt in collections until they get a call from the collections agency or they discover the debt on their credit report.

Today’s study considered 5 million anonymized credit records from September 2011 to September 2013 to assess how well a common credit score predicted a consumer’s future likelihood of paying back debt. To do that, the study looked at the credit histories and scores of consumers in September 2011 and then examined their actual loan payment patterns over the next two years.

The study found that credit scoring models have not been considering medical debt as well as they could be. It found that if the credit scoring models accounted differently for medical debt in collection and medical debt that is repaid by the borrower, the models could be more precise.

E-cigarettes have taken something of a beating recently, as numerous studies have identified negative health consequences from using the nicotine burners while others have challenged the claim that e-cigs can help people stop smoking.

But now a large survey of smokers in England finds that people who use e-cigs to help them stop smoking are 60% more likely to succeed than those who use other over-the-counter therapies such as nicotine patches or gum.

The study, conducted by University College London and published in Addiction, surveyed 5,863 smokers between 2009 and 2014 who had attempted to quit smoking without the aid of prescription medication or professional support; 20% of people trying to quit with the aid of e-cigarettes reported having stopped smoking conventional cigarettes at the time of the survey.

The research, chiefly funded by Cancer Research UK, suggests that e-cigarettes could play a positive role in reducing smoking rates.

"E-cigarettes could substantially improve public health because of their widespread appeal and the huge health gains associated with stopping smoking," says Prof. Robert West of UCL's Department of Epidemiology & Public Health, senior author of the study.

Even better with professional help

West said, however, that the success rate for those using Britain's National Health Service stop-smoking program was even better -- nearly three times better than do-it-yourself smoking cessation programs.

The researchers noted that, while some use e-cigs to stop smoking, others may want to continue using them indefinitely.

"It is not clear whether long-term use of e-cigarettes carries health risks but from what is known about the contents of the vapour these will be much less than from smoking," West said. 

West also said he sees no sign that e-cigarettes are leading to a resurgence of smoking in the UK.

"Some public health experts have expressed concern that widespread use of e-cigarettes could "re-normalise" smoking. However, we are tracking this very closely and see no evidence of it. Smoking rates in England are declining, quitting rates are increasing and regular e-cigarette use among never smokers is negligible." 

Many consumers dislike flying because they think it's unsanitary to be cooped up in a metal tube with a bunch of strangers for hours at a time.

Guess what? It's not just the strangers on the plane with you that can be a problem. It's also the ones who were there before you, according to research presented at the annual meeting of the American Society for Microbiology.

Researchers say they've found that disease-causing bacteria, including MRSA and E. coli, can linger on surfaces commonly found in airplane cabins for days, even up to a week.

"Many air travelers are concerned about the risks of catching a disease from other passengers given the long time spent in crowded air cabins," says Kiril Vaglenov, of Auburn University who presented the data. "This report describes the results of our first step in investigating this potential problem."

Looking on the bright side, the research is laying the groundwork for important work to come.

"Our future plans include the exploration of effective cleaning and disinfection strategies, as well as testing surfaces that have natural antimicrobial properties to determine whether these surfaces help reduce the persistence of disease-causing bacteria in the passenger aircraft cabin," said Vaglenov.

Surfaces studied

In their study Vaglenov and his colleagues tested the ability of two pathogens -- methicillin-resistant Staphylococcus aureus (MRSA) and E. coli O157:H7 -- to survive on surfaces commonly found in airplanes.

They obtained six different types of material from a major airline carrier (armrest, plastic tray table, metal toilet button, window shade, seat pocket cloth, and leather), inoculated them with the bacteria and exposed them to typical airplane conditions.

MRSA lasted longest (168 hours) on material from the seat-back pocket while E. coli O157:H7 survived longest (96 hours) on the material from the armrest.

"Our data show that both of these bacteria can survive for days on the selected types of surfaces independent of the type of simulated body fluid present, and those pose a risk of transmission via skin contact," says Vaglenov.

They currently have ongoing trials with other human pathogens including the bacteria that cause tuberculosis.

Kraft Foods Group is recalling select Knudsen Cottage Cheese, Breakstone’s Cottage Cheese, Simply Kraft Cottage Cheese and Daily Chef Cottage Cheese products.

Some ingredients used in these products were not stored in accordance with Kraft’s temperature standards, which could create conditions that could lead to premature spoilage and/or food borne illness.

The affected products all have code dates from May 9, 2014, through July 23, 2014.

Approximately 1.2 million cases of affected product were shipped to customers across the United States.

The following varieties are being recalled:

Code dates can be found on the bottom of the cup or the top of the package.

Simply Kraft products with a plant code of 36-2158 on the cups or a “W” in the case code (e.g., “W 21 JUL 2014”) are not affected. Only those products with a plant code of 06-245 on the bottom of the cup and case code date without any “W” (e.g., “21 JUL 2014”) subject to the recall.

No other Knudsen, Breakstone’s, Simply Kraft or Daily Chef products are affected.

Consumers who purchased any of these products should not eat them, but return them to the store where purchased for an exchange or full refund.

Consumers may contact Kraft Foods Consumer Relations at 1-800-396-6307 between 9 am and 6 pm (Eastern).