Current Events in June 2014

General Motors is recalling all current generation Chevrolet Camaros because a driver’s knee can bump the key FOB and cause the key to inadvertently move out of the “run” position, with a corresponding reduction or loss of power.

The issue, which may primarily affect drivers sitting close to the steering column, was discovered by GM during internal testing following the ignition switch recall earlier this year.

There are 464,712 Camaros from the 2010-2014 model years in the U.S. included in the recall. Including Canada, Mexico and exports, the total recall population is 511,528.

“Discovering and acting on this issue quickly is an example of the new norm for product safety at GM,” said Jeff Boyer, vice president of GM Global Safety.

The Camaro ignition system meets all GM engineering specifications, the automaker stated,  and “is unrelated to the ignition system used in Chevrolet Cobalts and other small cars included in the ignition switch recall.”

GM says it is aware of three crashes that resulted in four minor injuries that it believes may be attributed to this condition.

The company will change the Camaro key to a standard design from one in which the key is concealed in the FOB and is opened by pushing a button. The change will make the ignition key and FOB independent of each other, so that inadvertent contact with the FOB won’t move the key from the “run” position.

Other recalls

Separately, GM has announced two safety recalls and one non-compliance recall involving a total of 65,121 cars in the U.S. Including Canada, Mexico and exports, the total recall population is 69,839.

In all cases, customers will receive letters from GM letting them know when they can bring their vehicles into a dealership, where the recall repairs will be performed free of charge and courtesy transportation would be provided as needed.

Saab 9-3 convertibles

28,789 Saab 9-3 convertibles from the 2004-2011 model years are being recalled for an automatic tensioning system cable in the driver’s side front seat belt retractor that could break. If the cable were to break, seat belt webbing spooled out by the driver would not retract.

The convertibles and sedans were investigated at the same time, but the convertible parts were not identical to the sedan parts. GM has since learned of customer complaints to the NHTSA for the convertibles.

Dealers will replace the driver’s side retractor in the recalled vehicles. In addition, GM has issued a special coverage, so that if the same repair is required to the passenger side retractor it will be covered for the life of the vehicle. GM also extended the special coverage for passenger side belt retractors on the 2004 Saab 9-3 sedan from the original 10-year coverage to the life of the vehicle, like the convertibles. GM is unaware of any crashes, injuries or fatalities due to this condition.

Chevy Sonic

GM is recalling 21,567 Chevrolet Sonic 2012 model year compacts equipped with a six-speed automatic transmission and a 1.8-liter four-cylinder engine for a condition in which the transmission turbine shaft may fracture as a result of a supplier quality issue. If this were to occur in first or second gear, the vehicle could not upshift into third through sixth gears.

the turbine shift fractured while in one of the higher gears, the vehicle would coast until it was moving slow enough to downshift into first or second gear. In both instances, a malfunction indicator lamp may illuminate. If driven in this condition for a long period of time, all forward gears may become inoperable. The engine would continue to run and all power accessories would function.

Dealers will replace the transmission turbine shaft. GM is unaware of any crashes, injuries or fatalities related to this condition.

Buick LaCrosse

The final recall involves 14,765 model year 2014 Buick LaCrosse sedans because a wiring splice in the driver’s door may corrode and break. That may communicate incorrect information to circuits that control the door chime and allow passenger windows, rear windows and the sunroof to function when the vehicle is turned off and the driver is not in the vehicle.  In addition, a chime will not sound when the driver’s door is opened if the key is in the ignition.

Dealers will inspect the driver door window motor harness and, if necessary, replace an electrical splice. GM is unaware of any thefts, crashes, injuries or fatalities related to this condition.

American Honda Motor Co., is recalling 1,038 model year 2013 Honda Fit vehicles manufactured May 24, 2013, through July 5, 2013, and equipped with a manual transmission.

The passenger side driveshaft may break while driving due to an improper heat treatment application during manufacturing.

If the driveshaft fractures and separates while driving, the vehicle would lose power and coast to a stop. If a vehicle with a fractured driveshaft is parked without the parking brake applied, the vehicle could move unexpectedly. Either condition increases the risk of a crash.

Honda will notify owners, and dealers will inspect the passenger side driveshaft and replace it if necessary, free of charge. The recall is expected to begin on June 15, 2014.

Owners may contact Honda customer service at 1-800-999-1009. Honda's number for this recall is JE4.

Four California companies and six individuals have been ordered to stop importing, selling and distributing children’s products containing hazardous levels of lead and phthalates and small parts.

The injunction handed down by a federal district judge affects the following companies and individuals:

• Toys Distribution Inc., dba TDI International, of Los Angeles and its owners Loan Tuyet Thai and Lan My Lam, and manager Paul Phuong;
• S & J Merchandise Inc., of El Monte, Calif. and its owner Cuc T. Thai and manager Tom Liu;
• BLJ Apparel Inc., of El Monte, Calif., and its owner Luan Luu; and
• All Season Sales Inc., of Montebello, Calif. and its owner Tom Liu.  

The owners and managers were sued as company officials and in their individual capacity.

Laws violations charged

The federal government alleged that the firms and the individuals share significant business and/or personal ties and violated the Consumer Product Safety Act and the Federal Hazardous Substances Act by knowingly importing hazardous children’s products into the United States.

TDI and S & J Merchandise imported children’s toys with illegal lead and phthalate levels and small parts.  BLJ Apparel imported children’s products and toys with illegal levels of lead and small parts and infant rattles that could cause choking or suffocation. All Season Sales imported children’s toys with illegal lead content.  

“CPSC and our federal law enforcement partners are committed to keeping dangerous toys out of the marketplace all year long,” said Consumer Product Safety Commission (CPSC) Acting Chairman Robert Adler. “Manufacturers, importers and retailers need to know that CPSC and the U.S. Justice Department are actively enforcing the Consumer Product Safety Improvement Act, a law that has strengthened the nation’s product safety net.”

Testing of products

CPSC collected and tested dozens of samples of the four firms’ children’s products and toys as they attempted to enter the Port of Los Angeles/Long Beach between 2008 and 2013.

The agency issued repeated Notices of Non-Compliance to the firms and their officers, notifying them that their products violated federal standards.

One of the cases resulted in a joint recall. CPSC and TDI International announced a recall of 150 “high speed” pull back toy cars in January 2009 due to excessive levels of lead in the surface paint, a violation of the federal lead paint standard. Most of the other products stopped at import were not distributed to consumers.

La Finquita of Stamford, Conn., is recalling one lot of La Finquita Quesito Fresco Campesino Fresh Farmer’s Cheese.

The product may contain peanuts and tree nuts (pistachios), allergens not included on the label’s list of ingredients.

No complaints or associated illnesses have been reported.

The product was distributed through retail stores in Connecticut, New Jersey and New York.

The product, labeled as La Finquita Quesito Fresco Campesino / Fresh Farmer’s Cheese, is packaged in a 14.11-oz. plastic container, UPC Code: 0 94922 76809 4, with sell by date 06/28/14.

No other products are affected by this recall.

Consumers should not consume these products, but destroy them or return them to place of purchase for a refund.

Consumers with questions may contact the company at (203)561-8140 / (203)561-3929.

Toyota Motor Engineering and Manufacturing is recalling 844,277 model year 2002-2004 Toyota Sequoia and Lexus SC and 2003-2004 Toyota Corolla, Corolla Matrix, Tundra, and Pontiac Vibe vehicles.

A safety defect in the passenger side frontal air bag inflator may produce excessive internal pressure causing the inflator to rupture upon deployment of the air bag.

This recall addresses both the passenger side frontal air bags that were originally installed in the vehicles, as well as replacement air bags that may have been installed as replacement service parts. A replacement air bag may have been installed, as one example, if a vehicle had been in a crash necessitating the replacement of the passenger side frontal air bag.

In the event of a crash necessitating deployment of the passenger's frontal air bag, the inflator could rupture with metal fragments striking and potentially seriously injuring the passenger seat occupant or other occupants.

This recall supersedes one in which some vehicles were inspected and received a replacement inflator, while others were inspected but did not have their inflator replaced. All owners of vehicles that did not get an inflator replacement, or owners that do not know if they got an inflator replacement, should contact their Toyota or Lexus dealer.

Toyota will notify owners of affected Toyota and Lexus vehicles and General Motors will notify owners of affected Pontiac Vibe vehicles. Toyota, Lexus, and GM dealers will replace the passenger side air bag inflator, free of charge. The manufacturer has not yet provided a notification schedule.

Owners may contact Toyota customer service at 1-800-331-4331. Pontiac Vibe owners may contact GM at 1-800-521-7300.

Maybe it's because summer is on the way, with rising air-conditioning costs, or last winter's frigid weather, but the tried-and-true utility bill scam appears to be making a return appearance across the U.S.

It's an old scheme. Someone calls and pretends to be from your local utility. You are informed you are behind on your bill and if you don't pay immediately, service will be cut off.

If you fall for the ruse you immediately pull out your credit card and give them the billing information. Worse still, you might give them a way to access your bank account.

In Mississippi, Attorney General Jim Hood says his office has seen a resurgence of this scam.

Another day, another scam

“New and old scams arise daily by cons and cheats who spend all of their time finding new ways to take advantage of our citizens,” Hood said. “Our Consumer Protection Division makes a diligent effort to educate the public as we discover them.”

Hood says power companies operating in his state have also been alerted to the scheme, often by confused customers. The Mississippi attorney general's office began investigating a number of these calls and traced some of them to the Philippines.

But some victims say they had caller ID, which showed the calls coming, not from a foreign country but from within the boundaries of the state.

“Don’t be fooled by caller ID numbers,” Hood said. “Scammers can 'spoof' numbers and appear to be calling from inside the United States when in fact they are not.”

Demand for payment is a tip-off

In fact, if you get one of these calls you should be highly suspicious. Utility companies don't normally call customers who are overdue – most communication is by mail. Someone who demands immediate payment over the phone is obviously scamming you.

Just for argument's sake, let's say you get one of these calls and you think it might be legitimate. Tell the caller you will take care of it immediately and hang up.

Next, find one of your utility bills and call the customer service number. Ask the customer service rep if you account is, in fact, past due. We're betting it isn't.

Other utility scams

Of course, this isn't the only scam involving your utility bill. Forbes recently reported that a number of third-party electricity suppliers in various markets more than doubled their rates without any warning to their customers.

Joseph Steinberg, a Forbes contributor, says consumers should think twice before paying these inflated bills since the utility may not have the right to suddenly double its rates. Most states strictly regulate utility rates, so if you have a question you should contact the appropriate state agency.

Bait and switch

AARP warns of another utility scam that is showing up with increasing frequency. A telemarketer may call and tell you that you qualify for a 15% to 20% discount. First, however, you have to give them the account number of your current utility account.

The next thing you know, you have a new utility company and the promised discount may disappear into thin air.

According to AARP some natural gas and electricity supplier use telemarketers, and even door-to-door salesmen, to recruit new customers. After a brief introductory period your rates may skyrocket and you find yourself at the start of an expensive long-term contract.

States are taking note. Last week the New Jersey attorney general's office filed suit against 3 unregulated energy suppliers, listed as Palmco Power NJ, LLC & Palmco Energy NJ, LLC (collectively, “Palmco”); HIKO Energy LLC (“HIKO”); and Keil & Sons, Inc., d/b/a Systrum Energy (“Systrum”), all of whom allegedly “defrauded hundreds of consumers through misrepresentations of monthly bill reductions.”  

The Democratically-controlled U.S. Senate has turned aside a proposal by fellow Democrat Sen. Elizabeth Warren's that would have allowed consumers with high-interest student loans to refinance them at today's lower rates.

The reason? The measure needed 60 votes to move forward and the balloting broke cleanly along party lines, with Republicans opposing the measure.

President Obama, who this week signed an executive order capping payments on government student loans, had voiced support for the Massachusetts Democrat's bill. It didn't matter – it failed on a vote of 56-38, 4 short of what it needed.

The key stumbling block, most agree, is the way Warren proposed to pay for the measure. Since there is a cost to the government in lost interest revenue in allowing high-interest student loans to be renegotiated, there has to be an offsetting source of revenue.

Warren proposed implementing the so-called “Buffet Rule,” a minimum tax to be applied to high-income taxpayers. That's a non-starter for Republicans.

Election year issue?

That prompted Jon Healey, editorial writer for the Los Angeles Times, to speculate Warren included that provision as a poison pill, knowing it would cause GOP senators to vote against the measure.

“You have to wonder whether Warren sees student loan debt as a problem to be solved or a campaign issue to be seized,” he writes.

That was certainly the take offered up by the GOP leadership in the wake of the vote. Warren, meanwhile, dismissed those claims and vowed to keep pushing for ways to allow graduates to relieve some of the pressure of their student loan debt.

Not backing off

Warren says the legislation, which she introduced in May, would allow many of the 40 million borrowers with student loan debt to refinance. Similar legislation has been introduced in the GOP-controlled House of Representatives, where no action is expected.

In her speech introducing the proposal, Warren called student loan debt “an emergency” and said it threatens the stability of the U.S. economy. Total student loan debt is now estimated at $1.2 trillion.

Costs

The Congressional Budget Office (CBO) estimates that about half of the outstanding loan volume for federal student loans and loan guarantees – some $460 billion -- would be refinanced under the bill.

Because of the lower interest rates on the refinanced loans, the CBO says the federal government would receive less interest income over the life of the new loans, which would make those loans and loan guarantees more costly for the federal government.

So to pay for the refinancing plan, CBO estimates Congress would increase direct spending for federal loans that are currently outstanding by $55.6 billion in 2015.  

Are you worried that when you can't walk and diapers replace your sexy underwear your kids will put you in a nursing home? Your dog may have the same fear if you live in Japan.

A Japanese pet company is opening a nursing home for elderly dogs, providing round-the-clock veterinary care, a specialist gym and a swimming pool. This place may have better care then what you would get as a human.

Aeonpet Co., a subsidiary of the Aeon supermarket chain, has opened the first dog retirement home at a shopping mall east of Tokyo. Apparently it's in demand and many dog owners have requested it according to Nanako Oiishi, a spokesperson for the company.

Initially they will have room for 20 dogs at a mall in Mihama Ward, Chiba City. The move follows last year's enforcement of the revised animal welfare law that essentially requires owners to take care of their pets until their death.

Pet dogs are believed to live much longer than a few decades ago as a result of advancement in health care services and improved living conditions, causing problems for owners such as walking difficulties as well as howling stemming from dementia.

Domestic versions

Are there dog retirement/nursing homes like this in the United States? Well yes there are, but they're not set up with the amenities quite the way Aeonpet Co. has positioned theirs.

We did a little investigating and found some like Silver Streak Kennels in upstate New York. Their website states, "Silver Streak Kennels provides a dog retirement home and long term dog boarding with special attention and comforts so every day is restful, comfortable and full of love. Trust Silver Streak Kennels to make your best friend's golden years magical."

"There is no better piece of mind then knowing your loyal friend receives quality care in a loving home for a long or short term stay. A calm, low stress environment with relaxed appropriate exercise in a country setting gives each dog a beautiful landscape to retire in."

Nothing about a pool here or a gym. Just acres of grass. I guess not everybody is a gym rat.

Another senior connection is The Senior Dog Project. They don't call their centers retirement homes, they call them sanctuaries. They have a list of rescue groups where your dogs can spend their final days in the hands of caring individuals..

Still no sign of a pool or a gym. So for now, if you want your dogs to have access to a pool or a gym either enroll them at 24 Hour Fitness or ship them off to Japan.

Better yet, make those last years count and take care of your trusted companion as they have you for all these years.

Ford is reducing fuel economy ratings for several models, including hybrids, responding to pressure from the EPA. It's the second time in less than a year that Ford has had to dial back its mileage estimates.

“Ford is absolutely committed to delivering top fuel economy and accurate information,” said Alan Mulally, Ford president and CEO. “We apologize to our customers and will provide goodwill payments to affected owners. We also are taking steps to improve our processes and prevent issues like this from happening again.”

When Ford downgraded the C-Max mileage last August, it sent customers a $550 check to help make up for the shortfall in economy. The goodwill payments this year are shown in the chart below. 

The models affected this time around are the Ford Fusion, both hybrid and plug-in hybrid; the C-Max hatchback, both hybrid and plug-in; and the Lincoln MKZ hybrid.

Most of the changes are relatively minor, ranging from 1 to 5 miles per gallon but city and highway values for the MKZ hybrid will be cut by 7 mpg.

Ford reviewed its entire line up to determine the vehicles that required further testing and revised the fuel economy ratings for the affected vehicles, the company said in a statement. No other label adjustments are planned.

Last summer, Ford cut the C-Max hybrid ratings 8.5% to 43 mpg combined city and highway.

Ford apologizes

"This is our error. When we see an issue, we address it,” said Raj Nair, Ford group vice president, Global Product Development. “That is why we notified EPA and lowered the fuel economy ratings for these vehicles.”

Ford has communicated to its dealers that new fuel economy labels will be available in approximately six days and that dealers may continue selling the vehicles until the new labels are received. 

Ford estimates that approximately 200,000 of the affected vehicles have been sold or leased to customers in the United States. Affected Ford and Lincoln owners and lessees in the United States will receive a goodwill payment for the estimated average fuel cost of the difference between the two fuel economy labels, as shown in the table below.

Customers with questions can contact the Ford Customer Relationship Center at 1-866-436-7332 or visit: www.ford.com/mpglabel  and www.lincoln.com/mpglabel.

Models specified

*Bolded figures in the above chart represent the values used to determine the customer goodwill payment.

** Combined numbers only.  Revised EPA-estimated ratings: 40 city, 36 highway MPG; 95 city, 81 highway MPGe. Charge depleting range is 20 mi.  Previous EPA-estimated ratings: 44 city, 41 highway MPG; 108 city, 92 hwy MPGe. Previous charge depleting range was 21.   

+MPGe is the EPA equivalent measure of gasoline fuel efficiency for electric mode operation.

Facebook will be providing even more information about your Web-browsing habits to advertisers as part of its drive to milk more money out of the data it already shares about you.

The company is announcing the plans today in a chirpy press release headlined "Making ads better and giving people more control over what they see." 

Oh, and by the way, Facebook said it will no longer honor "do-not-track" settings. So much for "giving people more control."

Nothing personal, of course. After all, with 1.28 billion users, it's not as though Facebook or its advertisers really has time to get up close and personal with each of us.

That doesn't mean, though, that advertisers aren't salivating for -- and, in fact, demanding -- even more information about consumers' habits. Facebook has been bending over backwards to oblige and is always looking for new ways to deliver oodles of information about you.

Like this?

Take those little "Like" buttons you see everywhere. Clicking one of those helps Facebook keep track of where you are, where you've been and, perhaps, where you're going. Now it will be supplying more of that data to advertisers.

The party line, of course, is that this will help advertisers deliver ads that will be an even more enrichening experience for consumers. Or at least to deliver more of them.

To hear Facebook tell it, this is just what consumers have been asking for.

"Let’s say that you’re thinking about buying a new TV, and you start researching TVs on the web and in mobile apps," the company said in its press release. "We may show you ads for deals on a TV to help you get the best price or other brands to consider. And because we think you’re interested in electronics, we may show you ads for other electronics in the future, like speakers or a game console to go with your new TV."

As for those pesky "do-not-track" settings, Facebook says it will stop honoring them "because currently there is no industry consensus," although its competitors Twitter and Pinterest do honor the settings. Google and Yahoo don't.

Opt out

Instead, Facebook says users can opt out of ads based on their Web usage by using the Digital Advertising Alliance opt out. For mobile users, iOS and Android provide controls that will block ads based on tracking. For now, anyway.

Facebook says a new "ad preferences" tool accessible from every ad "explains why you’re seeing a specific ad and lets you add and remove interests that we use to show you ads."

The controls won't block all ads based on surveillance of your browsing, only those that fall into a specific topic.

"So if you’re not interested in electronics, you can remove electronics from your ad interests," Facebook gushed.

Privacy pundits

Needless to say, privacy advocates are not pleased. 

"Facebook is continuing on a campaign to push the data envelope, raising troubling privacy and consumer-protection concerns," Jeffrey Chester, executive director of the Center for Digital Democracy, told the Wall Street Journal.

Beer drinkers tend to be a devoted bunch. So are brewmasters and the others involved in beer production, as food blogger Vani Hari -- the self-proclaimed "Food Babe" -- is learning.

Hari has been promoting a petition calling on Anheuser-Busch and MillerCoors to put ingredient labels on their beer, just as soft drink bottlers and other food producers do.  

Many consumer petition crusades go unnoticed but apparently not when beer is involved. Within hours of our posting a story about Hari's campaign yesterday, Anheuser-Busch issued a statement noting that it provides nutritional information about the contents of its beers at www.tapintoyourbeer.com. 

Hari's not buying that, however.

"Nutritional labeling is distinctly different than ingredient disclosure, and it is not enough transparency for consumers to avoid additives like the corn syrup they use in many of their beers," she told USA Today. 

Today, Anheuser-Busch followed up and said it is working on putting the ingredient list online, noting it's not required to do so by law.

"[A]s American consumer needs evolve, we want to meet their expectations.  Therefore, we are working to list our beer ingredients on our website, just as you would see for other food and non-alcohol beverage producers," an Anheuser-Busch spokesman told ConsumerAffairs in an email.  "We are beginning immediately, having incorporated this information earlier today on www.tapintoyourbeer.com for our flagship brands, Budweiser and Bud Light, and will be listing this for our other brands in the coming days.”

Brewery tour

Just about anyone who lives in the Midwest at some point makes the pilgrimage to the Anheuser-Busch brewery in St. Louis and the company thinks Vani Hari and her husband should share the experience. 

“We are inviting Vani Hari and her husband to our flagship St. Louis brewery to show how our beers are made and the ingredients we use.  Our brewmasters take great pride in making our beers to the highest standards of quality and consistency," the spokesman said. 

 No word yet on whether the Haris will be heading to St. Louis anytime soon.

People stop in at Starbucks to recharge. That's getting a bit easier with the addition of wireless smartphone recharging areas, rolling out currently in the San Francisco area and expanding to major national markets in 2015. 

Rollouts to smaller cities are "planned over time," the company said. 

The charging areas will be powered by Duracell Powermat, which recharges compatible smartphones and other small electornics devices wirelessly.

How many smartphones are compatible? Good question.

Exact figures aren't available but Bloomberg News says "very few" phones have cordless charging technology built in. Apple sells cases that will make an iPhone Powermat-compatible. AT&T, Sprint and Verizon all sell phones that are compatible with different types of wireless charging.

Nice idea

Starbucks, of course, wants customers to show up more often and linger longer, which is why it's always tinkering with its menu, redecorating stores and, in perhaps its most influential innovation, adding free wi-fi years ago.

Starbucks will be the biggest rollout of Powermat, so that may in itself be enough to incentivize phone manufacturers to start building the technology into their devices. 

“Rather than hunting around for an available power outlet, [customers] can seamlessly charge their device while enjoying their favorite food or beverage offering right in our stores,” said Adam Brotman, chief digital officer at Starbucks. “We were pleased with the customer response to the pilot tests, and we’re now expanding this offering nationally to provide our customers a quality and reliable experience as they use our stores as their respite, their office away from home or as a gathering place with their friends and family.”

Stores will be equipped with "Powermat Spots" -- designated areas on tables and counters where customers can place their compatible device and charge wirelessly. Select Starbucks stores in Boston and San Jose offer Powermat today and the broader rollout can be tracked at www.powermat.com/locations.

“Powermat Spots in Starbucks are the result of almost a decade of scientific research spanning material sciences, magnetic induction and mesh networking,” said Ran Poliakine, CEO of Powermat Technologies. “The two-pronged power-plug dates back to the era of the horse drawn carriage, so that today’s announcement marks the first meaningful upgrade to the way we access power in well over a century.”

The Internal Revenue Service(IRS) has announced adopted what it calls a "Taxpayer Bill of Rights" that it says “will become a cornerstone document to provide the nation's taxpayers with a better understanding of their rights.”

According to the tax agency, the document takes the “multiple existing rights embedded in the tax code” and groups them into 10 broad categories, making them more visible and easier for taxpayers to find on its website.

In addition, Publication 1, "Your Rights as a Taxpayer," has been updated and will be sent to millions of taxpayers this year when they receive IRS notices on issues ranging from audits to collection. They will also be publicly visible in all IRS facilities for taxpayers and employees to see.

Extensive discussions

The IRS released the “Taxpayer Bill of Rights” following extensive discussions with the Taxpayer Advocate Service, an independent office inside the IRS that represents the interests of U.S. taxpayers

“Congress has passed multiple pieces of legislation with the title of ‘Taxpayer Bill of Rights,’” said National Taxpayer Advocate Nina E. Olson. “However, taxpayer surveys conducted by my office have found that most taxpayers do not believe they have rights before the IRS and even fewer can name their rights. I believe the list of core taxpayer rights the IRS is announcing today will help taxpayers better understand their rights in dealing with the tax system.”

Enumerating the “Rights”

The tax code includes numerous taxpayer rights, but they are scattered throughout the code, making it difficult for people to track and understand. Similar to the U.S. Constitution’s Bill of Rights, the “Taxpayer Bill of Rights” contains 10 provisions. They are:

1. The Right to Be Informed

2. The Right to Quality Service

3. The Right to Pay No More than the Correct Amount of Tax

4. The Right to Challenge the IRS’s Position and Be Heard

5. The Right to Appeal an IRS Decision in an Independent Frum

6. The Right to Finality

7. The Right to Privacy

8. The Right to Confidentiality

9. The Right to Retain Representation

10. The Right to a Fair and Just Tax System

The “rights” have been incorporated into a redesigned version of Publication 1, a document that is routinely included in IRS correspondence with taxpayers. The publication initially will be available in English and Spanish, and updated versions will soon be available in Chinese, Korean, Russian and Vietnamese.

The IRS has also created a special section of IRS.gov to highlight the 10 “rights.” The web site will continue to be updated with information as it becomes available, and taxpayers will be able to easily find the “Bill of Rights” from the front page..

Two affiliate-marketing scammers and their company have agreed to settle Federal Trade Commission charges that they sent millions of unwanted text messages to consumers across the U.S. with false promises of $1,000 gift cards to retailers like Best Buy, Target and Walmart.

Scott A. Dalrymple of Pennsylvania and Robert Jerrold Wence of Texas, who operated a company called Advert Marketing, Inc., will be permanently banned from sending unwanted or unsolicited commercial text messages or assisting others in doing so.

The settlement contains a monetary judgment for $4.2 million, which is partially suspended due to the defendants’ inability to pay. Under the terms of the settlement, Dalrymple and Wence will be required to pay $15,000 each to the Commission, and will be required to destroy any consumer data they may have collected while conducting the text message spam operation.

In addition, the two will also be prohibited from misrepresenting to consumers whether a product is “free,” whether they have won a prize or been selected for a gift, or other behavior related to the nature of the scam.

Dalrymple, Wence and Advert Marketing were among the defendants named in the FTC’s 2013 enforcement sweep against text message spammers and affiliate marketers who used false promises of free gift cards to draw consumers into websites that asked them to provide credit card information to sign up for trial offers.

Hobby Lobby stores in New York advertised steep discounts that were a little too good to be true. The chain has agreed to stop running deceptive advertising and contribute $138,600 in supplies to public schools near Hobby Lobby stores in upstate New York.

The settlement applies only to stores in the state of New York.

“When companies mislead customers by advertising never-ending sales, our office will hold them accountable,” said state Attorney General Eric T. Schneiderman. “Ultimately, a permanent sale is no sale at all.”

The investigation began in 2013, when Schneiderman’s office began tracking marketing materials advertising 50% off and 30% off sales. Hobby Lobby advertised its custom framing, furniture, and home décor products as sale items for more than 52 consecutive weeks.

The investigation determined that Hobby Lobby violated New York’s General Business Law (350-D) for False Advertising. Sales that are never-ending are in violation of the false advertising law.

As part of its settlement of the charges, the company will change its advertising practices over the next 60 days, contribute $138,600 in supplies to public schools near Hobby Lobby stores in Upstate New York, and pay $85,000 in civil penalties and other costs.

Number of Schools Eligible to Receive Gift Cards for Student Supplies:

A payment processing company that helped conduct a credit card interest rate reduction scam that bilked tens of thousands of consumers out of a total of nearly $10 million has agreed to give up $1.1 million to settle Federal Trade Commission charges.

The FTC had alleged that Independant Resources Network Corp., doing business as IRN Payment Systems (IRN), violated the Telemarketing Sales Rule (TSR) through its involvement in a credit card interest rate reduction scam that bilked tens of thousands of consumers out of a total of nearly $10 million.

IRN agreed to a settlement of $3.48 million, which is suspended upon payment of $400,000. IRN also released any claim to approximately $700,000 in reserve funds that the court previously ordered it to turn over under the asset freeze provisions of a preliminary injunction order that was entered before IRN was named as a defendant in the case.

Wealth builders

In January 2013, the FTC filed a complaint to stop a telemarketing scam operated by Innovative Wealth Builders, Inc. (IWB), which it said falsely promised consumers that they could reduce the interest rates on their credit cards and save them thousands of dollars on their debts. For most of the time that IWB operated its scam, IRN was its exclusive payment processor.

In June 2013, the FTC sued IRN in an amended complaint alleging that IRN facilitated IWB’s scheme when IRN knew, or consciously avoided knowing, key facts about the illegal conduct of IWB’s telemarketing scam in violation of the TSR, and chose to continue profiting from processing IWB’s credit card transactions.

Payment processors enable merchants to charge consumers’ credit cards for products and services, and in exchange are paid for each payment transaction the merchant processes.

For the fourth time in as many months, retail sales posted a gain during May.

Figures released by the U.S. Census Bureau show sales last month were up a seasonally adjusted 0.3% -- to $437.6 billion, and a gain of 4.3% over May of 2013. In addition, The April figure was revised higher to show and advance of 0.5% instead of the 0.1% initially reported.

Still, some economists were disappointed with the showing. The consensus esimate of analysts surveyed by Briefing.com was for an advance of 0.7%.

Sterne Agee Chief Economist Lindsey Piegza says aside from auto and gasoline sales, which rose 1.4% and 0.4%, respectively, “consumers weren't doing much spending in May.”  

She points out that forecasts for 4% GDP predicated on a resurgence in consumption thanks to pent-up demand from the start of the year, “appear to be slowly losing favor as the consumer continues to lose momentum.”

The complete report is available on the Commerce Department website.

Jobless claims

First-time applications for state unemployment benefits moved higher in the week ending June 7, climbing by 4,000 to a seasonally adjusted 317,000.

The government says there were no special circumstances involved, which analysts say suggests the claims number will continue to be stuck in the range that suggests monthly job creation of about 200,000.

They add that unless we get below 300,000 on a weekly basis, payroll increases are unlikely to get to the 300,000 range necessary to support strong economic expansion.

The 4-week moving average, which is not as volatile as the weekly number and, therefore, considered a more accurate reading of the job market, rose 4,750 -- to 315,250.

The full report can be found on the Labor Department website. 

Double Camel, in cooperation with Lionshead Specialty Tire & Wheel LLC (Lionshead), is recalling 1,440 Vail Sport ST LH 99 tubeless trailer tires, size 225/75D15, load range D, DOT code 69, manufactured from July 14, 2013, through July 27, 2013 (and a sidewall date code 2813 or 2913).

On May 7, 2014, Double Camel increased the recall to include an additional 38,129 Vail Sport ST LH 99 tires encompassing build dates from November 20, 2011, through September 21, 2013 (dates codes 4711 through 3713). The total population of the tires being recalled is now 39,569.

The original population of tires may fail under prolonged use and may become unseated from the rims and the additional population of tires may be more susceptible to failure due to road hazards.

Tire damage from road hazards, failure from prolonged use or unseating of the tire from the rim increases the risk of a crash.

Lionshead will notify owners, and dealers will replace the tires with compliant ones. The recall of the initial population of tires began in February 2014. The recall for the expanded population of tires is expected to begin in June 2014.

Customers may contact Lionshead at 1-574-533-6169.

Here are two stories that generally point to the same thing; the economy, which has been lousy for years now, just isn't getting any better.

A study of recent college graduates, ages 23 to 26, has found that even though they had full-time jobs, they were still receiving regular support from Mom and Dad.

Must be that crushing student loan debt. No, 60% of those in the survey had no student loan debt.

What's holding them back?

Why then, do they need financial support? The study from the National Endowment for Financial Education, Arizona Pathways to Life Success and the Citi Foundation provides a couple of clues.

"Our data clearly showed that many young adults today may not be earning enough to make it on their own, even when working fulltime," the authors write.

While the jobs may be there for college graduates they may not pay all that much. More importantly to young employees, they may also not provide much in the way of benefits. In many cases, that's where Mom and Dad step in.

But are recent graduates struggling financially because they lack the financial literacy to properly manage their money? As we reported back in January, the evidence suggests the opposite is true.

The second PNC Financial Independence Survey found not only are young people doing a pretty good job of managing their money, but the younger members of the Millennial generation – those 20 to 24 in particular -- are doing the best.

New jobs just not that good

So perhaps those 217,000 new jobs the economy is creating each month are a bit lacking in salary and benefits. Maybe we need a lot more of them to propel the economy forward. The second of our two stories leans in that direction.

In its latest Briefing Report, real estate investment firm Transwestern suggests the economy isn't growing nearly as fast as most economists had predicted and an economic stall may be occuring. It points to the bond market as Exhibit A.

When conditions are improving investors find productive places for their money, other than putting it in bonds. When that happens, bond issuers have to sweeten the deal by raising interest rates.

When the Labor Department reported the jobs numbers earlier this month, it was taken as positive economic news and bond rates were expected to rise. Instead, they fell.

Transwestern sees it as a classic “flight to quality,” with investors seeking the safe haven of U.S. bonds in the event the economy slows. In other words, the people with money may be one step ahead of the economists.

The report authors conclude the prediction of a U.S. economic growth rate of 3% in 2014 is “unduly optimistic.” Rather, they see 2% much more likely.

A stalling economy puts pressure on business – especially small businesses, which tend to employ a lot of young people.