Current Events in July 2014

The weekend lightning strike that killed one person and injured several others on Venice Beach got a lot of attention but the only thing unusual about it was that it happened in Los Angeles, which doesn't get many thunderstorms.

In much of the country, however, thunderstorms are common and lightning strikes routinely kill and injure hundreds of people each year. The Los Angeles death was the 15th in the U.S. this year. 

Beaches, athletic fields and other flat, open spaces are particularly dangerous.

So what's the safest place to be if you're outdoors? The simplest answer, according to the National Weather Service, is that there is no completely safe place outside during a thunderstorm -- the best place to be is inside a building.

If you can't get inside, a car or truck with windows and doors closed offers the best protection from a lightning strike, since the tires offer insulation that keeps the electrical current from penetrating the car. A fully-enclosed structure, such as an outdoor restroom facility at a park or beach, also offers good protection.

Open structures such as picnic shelters and sports dug-outs are not safe and should be avoided, NWS says.

Safety inside

Inside a home or office, avoid corded phones and electronic equipment that is plugged into electrical power or your computer network. It's also a good idea to avoid plumbing fixtures, which can provide a route for the current from a lightning strike to enter a building. 

Your valuable appliances and home electronics -- computer, TV, etc. -- are vulnerable to damage from lightning and, unfortunately, there's not much you can do to protect them. Once a storm has started, it's too late to run around pulling plugs, and surge protectors aren't generally able to withstand a direct lightning strike. They're designed to protect against surges caused by nearby storms or equipment malfunctions, not direct lightning strikes.

Risk management analysts refer to lightning strikes as "low probability/high consequences calamities." In other words, they don't happen often but when they do, they cause a lot of damage. If you're unfortunate enough to suffer a direct strike to your home, the damage can be both extensive and expensive. While it should be covered by most homeowners insurance policies, you'll likely end up paying a hefty percentage out of pocket.

Just ask Dan of Muskegon, Mich., whose house was hit by lightning. 

Had Frankenmuth Insurance with 3 cars and 2 homes for about 11 years. Filed one petty claim all those years,

"Lightning damage, blown holes in my walls, blown switches out of the walls, wiring, etc.," Dan said in a June 2014 ConsumerAffairs review of Frankenmuth Insurance. "Burned up my television, computer, phone, all my cable equipment, etc."

Dan said the damage came to $3,700 but after a $500 deductible and depreciation, he received only $1,799. 

If you're feeling poorer these days, maybe you are. A recent study from the Russell Sage Foundation has found a dramatic decline in the net worth of the average American household over the last decade.

After adjusting for inflation, the average household net worth of $87,992 in 2003 had plunged to $56,335 in 2013 – a free-fall of 36%. Part of the decline might be explained by the collapse of the housing market and the wave of foreclosures that followed.

Net worth is measured by balancing the value of assets against liabilities. Households that had significant equity in real estate took a massive hit when home prices began to fall in 2007.

The researchers cite the Case-Shiller Home Price Index, showing home prices in the largest U.S. metros lost 33% of their value between 2007 and 2009. In many cases homeowners who thought they had plenty of equity suddenly discovered they had none, and in fact were under water.

Job market

But housing doesn't explain all of the decline in net worth. Massive job losses after 2008 account for a good bit of the lost ground.

The July 2013 unemployment rate was 7.4%, down significantly from the Great Recession high of 10%. However, in mid-2007 the jobless rate was 4.7%.

While the current jobless rate is well below 7% the numbers also show that millions of people have dropped out of the labor force. Millions more are working part time, or for less money than they were before.

The researchers studied the Panel Study of Income Dynamics (PSID), a nationally representative survey of U.S. families conducted since 1968. And while the average net worth declined by one-third, the loss was even more dramatic for households below the average.

Falling farther behind

For example, for those in the 25th percentile of net worth – households that only had half that of the average household – net worth plunged by 68.4%. Their 2003 net worth of $10,129 had fallen to $3,200 by 2013.

Even households in the 75th percentile found their net worth had eroded in the last decade, but not nearly as much. Their net worth declined from $302,221 to $260,405, a decline of 13.8%.

Did any households improve their net worth? Those in the 90th percentile did slightly and those in the 95th percentile – the top 5% – registered a 14.4% gain.

From this, the authors conclude that through 2013 there has been little evidence of recovery from the losses of weath experienced by American families during the Great Recession. Moreover, these losses were not distributed equally.

Improvement since 2013?

Have things improved for American households in the last year? There has been no surge in the economy that would suggest major improvement, but in recent months there have been hopeful signs.

Job creation has increased, though incomes have remained stagnant. Food and gasoline prices have gone up, putting strain on family budgets.

Despite that, however, consumers have begun to spend more on things besides necessities. The Deloitte Consumer Spending Index showed an increase in June, reversing months of stagnation or declines.

"Strengthening home prices in May and a drop in unemployment claims put the Index in positive territory, showing a consumer's ability and willingness to spend," said Daniel Bachman, Deloitte's senior U.S. economist.

Is it a bankable trend for the future? Wages were down slightly in June, but the Index authors say there are enough indicators showing the labor market is back, which they think should offset the wage component's impact on household spending.

Still, American families have a lot of ground to make up.

As early as 2005, the feds were warning consumers about the fire hazards and related dangers posed by rechargeable batteries – which are now ubiquitous in smartphones, laptopsand sundry other personal electronic devices.

For example: in March 2005, the Consumer Product Safety Commission issued a set of “cell phone safety tips” and the first item on the list was this: never use incompatible cell phone batteries and chargers. Whichever brand of phone you have, stick with manufacturer-approved batteries rather than buy from third-party sources, as the manufacturers can't guarantee that third-party devices are compatible with their appliances.

Last week, a family in Texas had a scary reminder of this, when a 13-year-old girl's smoldering smartphone caught her bedding on fire while she was asleep. Luckily, the girl was unhurt, and the fire put out before it destroyed anything more than her bed and bedding (plus the phone).

Dallas News | myFOXdfw.com

Ariel Tolfree told the Fox News affiliate in Dallas/Fort Worth that she fell asleep with her Samsung Galaxy S4 on her bed, and at some point in the night it wound up under her pillow. She woke up briefly when she thought she smelled something smoldering, but went back to sleep only to wake up again some indeterminate time later.

“I didn't think much of it, so I went back to sleep, and then I woke up again and [the smell] was more prominent,” Tolfree said.

Tolfree's father, Thomas, suspects that the smartphone overheated, which made the battery swell and start a fire. He also admitted that the phone had a third-party battery, according to the Fox4 report.

Ignored warning

A Samsung spokesman noted that the user guide for the S4 specifically states that covering one of their devices with bedding or other material could restrict airflow and cause a fire.

Samsung has agreed to replace Tolfree's damaged bed and bedding, and requested that the damaged phone be sent to them so they can investigate. Ariel Tolfree, meanwhile, said she learned that people should not sleep with their smartphones in their beds, but keep their phone on a nightstand instead.

In addition to this, you should also make sure that, whatever brand of phone you have, you only use manufacturer or carrier-recommended batteries, chargers and other accessories. And don't cover your phone, laptop or any other battery-rechargeable device with blankets, pillows or anything else that restricts airflow and traps heat.

Finally: make sure you look for and read any safety warnings in your owner's manual. Even if the manufacturers wanted to list those warnings, cigarette-style, on the boxes, there probably isn't enough room to print them all.

Nearly everyone with a smartphone has been "crammed," including those who haven't noticed yet. What's cramming? It has nothing to do with being squeezed into a crowded subway car or bus, it's the odious practice of slapping consumers with unauthorized third-party charges on their mobile phone bill. Mobile cramming for short.

The Federal Trade Commission says it's time to do something about it and today issued a report outlining five steps carriers -- and others -- should take to prevent consumers from being crammed.

The "others" are the third parties -- the merchants who offer goods and services that are charged directly to mobile phone bills, and the billing intermediaries known as aggregators who provide the backroom functions that get the charges onto mobile phone bills.

“Mobile cramming is an issue that has affected millions of consumers, sticking them with charges they did not authorize, and the FTC has worked hard to combat it,” said Jessica Rich, the Director of the FTC’s Bureau of Consumer Protection. “The best practices recommended in our report build on the FTC’s active enforcement in this area and would give consumers needed protections to rein in the problems we have seen.”

Some are legitimate

While the report concedes that some third-party charges may be legitimate, many are not. It cites three cases brought last year by the FTC that led to more than $160 million in judgments. One participant in the FTC’s roundtable on mobile cramming participant called it “almost the perfect scam.”

The commission report calls for:

• Giving consumers the right to block third-party charges. FTC staff calls on mobile phone carriers to give consumers the right to block third-party charges on their mobile bills altogether, and to inform consumers clearly and prominently of that right.
• Ensuring that advertising, marketing, and opt-in processes for charges are not deceptive. Consumers should know how much and how often they will be charged. Mobile carriers should closely monitor the merchants placing charges through their bills to scrutinize whether they are risky or suspicious, and if so, take steps to prevent them from placing charges.
• Getting express, informed consent before charging consumers. Carriers should closely monitor refund rates, consumer complaints and other signs of possible cramming and take action where necessary.
• Clearly displaying third-party charges on bills. Mobile bills should clearly and conspicuously show third-party charges. Carriers should consider steps to make third-party charges more prominent, such as separate billing lines for third-party charges that make it clear to consumers which charges are directly from a carrier and which are from a third party. 
• Creating an effective process for resolving disputes. Finally, mobile carriers should put in place an effective dispute resolution process that gives clear information to consumers about how to dispute suspicious charges and seek refunds for unauthorized charges.

Scientists are constantly probing for answers to the questions that have vexed humankind. Take dogs, for instance. Why are they always sniffing each other's butts?

Dogs who engage in this canine tradition are not just being rude, they're communicating in a surprisingly complex way. It's just one of many forms of chemical communications that go on everyday among animals.

Reactions, a video series affiliated with the American Chemical Society, explains:

Dancing Star of Buckland, Mass., is recalling the following products which may be contaminated with Salmonella:

Dancing Star brand

• Carob Supergreens Chunks of Energy (10# UPC 7-69270-20005--2), production lots (0844-1, 0844-2, 0844-3, 0954-1, 0954-2, 0954-3, 0954-4, 0994-1, 0994-2, 1014, 1094-1, 1094-2, 1094-3, 1154-1, 1154-2, 1154-3, 1154-4, 1574, 1634-1,1634-2, 1634-3, 1644, 1684, 1744-1, 1744-2, 1744-3, 1824-1, 1824-2, 1924-1, 1924-2, 1994).
• Carob Supergreens Chunks of Energy (7 oz UPC 7-69270-70008-8), production lot 1014.
• Date Flax with Turmeric Chunks of Energy (10# UPC 7-69270-20004-5), production lots (0794-1, 0794-2, 0794-3, 0954, 1004, 1084, 1124, 1134-1, 1134-2, 1134-3, 1134-4, 1134-5, 1624-3, 1784-1, 1914, 1974).
• Date Flax Turmeric Chunks of Energy (7 oz UPC 7-69270-70006-4), production lot 1004.

Rave Bites brand

• Rave Bites Carob Supergreens (7oz UPC 7-69270-70008-8), Sell By Date 6/06/15.
• Rave Bites Date Flax with Turmeric (7oz UPC 7-69270-70006-4), Sell By Dates 4/10/15 and 4/25/15.

Bulk Carob Powder

• Bulk organic Carob powder (10# UPC 7-69270-80001-6) Julian dates (0154, 0914, 0974, 0994, 1044, 1054, 1114, 1154, 1194, 1534, 1684, 1704, 1824, 1894).

No illnesses have been reported to date in connection with this problem.

The recalled items are distributed nationwide and sold to retail stores, some of them in bulk for the sales of smaller quantities to their customers.

Consumers who have purchased this item should not eat it, but dispose of it or return it to the store where it was originally purchased for credit.

This precautionary action was taken because the products contain Carob Powder that was part of Ciranda Inc.’s Organic Carob powder recall.

Customers may contact 413 625-8300 between 8:00-4:30 EST, Monday through Friday, or email recall@chunksofenergy.com.

Hyundai Motor Company is recalling 5,650 model year 2015 Sonata vehicles manufactured April 25, 2014, through June 16, 2014.

Due to a manufacturing error, one or both of the front brake calipers may fracture. A fracture would reduce brake effectiveness, lengthening to distance required to stop the vehicle, increasing the risk of a crash.

Hyundai contacted the affected owners on June 19, 2014 and instructed them not to drive their vehicles. Hyundai dealers will replace the affected brake calipers, free of charge.

Owners may contact Hyundai customer service at 1-800-633-5151. Hyundai's number for this recall is 120.

After posting solid gains for three straight months -- including the largest month-over-month gain since April 2010 during May -- pending home sales were modestly lower in June.

The National Association of Realtors (NAR) reports its Pending Home Sales Index (PHSI) dipped 1.1% last month -- to 102.7, and is 7.3% below its year-ago level.

Despite June’s decrease, the forward-looking indicator based on contract signings is above 100 -- considered an average level of contract activity -- for the second consecutive month after failing to reach the mark since November 2013 (100.7).

Still some challenges

NAR Chief Economist Lawrence Yun says while the housing market is stabilizing, continuing challenges are impeding full sales potential. “Activity is notably higher than earlier this year as prices have moderated and inventory levels have improved,” said Yun. “However, supply shortages still exist in parts of the country, wages are flat, and tight credit conditions are deterring a higher number of potential buyers from fully taking advantage of lower interest rates.”

Still, he ultimately expects a slight uptick in sales during the second half of the year. “The good news is that price appreciation has decreased to its slowest pace since March 20121 behind much needed increases in inventory,” Yun said. “With rents rising 4% annually, potential buyers are less likely to experience sticker shock and can make smart decisions on whether or not it makes sense to buy or continue renting.”

Sales mixed nationally

• The PHSI in the Northeast fell 2.9% to 83.8 in June, and is 3.2% below a year ago.
• In the Midwest the index rose 1.1% to 106.6, but remains 5.5% below June 2013.
• Pending home sales in the South dipped 2.4% to a reading of 113.8, and is 4.3% below a year ago.
• The index in the West inched up 0.2% in June to 95.7, but remains 16.7% below June of last year.

Looking ahead

The NAR forecasts existing-homes sales to be down 2.8% this year to 4.95 million, compared with 5.1 million sales of existing homes in 2013. The national median existing-home price is projected to grow between 5 and 6% this year and in 2015.

The median existing-home price for all housing types in June was $223,300 -- is 4.3% above June 2013, and the slowest increase since 3.1% in March 2012.

Nissan North America is recalling 226,326 model year 2002-2003 Nissan Maxima, Pathfinder and Infiniti I35 and QX4; 2002-2004 Nissan Sentra and 2003 Infiniti FX vehicles.

A safety defect in the passenger side frontal air bag 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.

Owners of all vehicles on which a defective air bag may have been installed either as original equipment, or as a replacement, will be notified.

Dealers will inspect vehicles, and where a defective air bag inflator is identified, the inflator will be replaced, free of charge. The recall is expected to begin August 11, 2014.

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

The federal Food Safety and Inspection Service (FSIS) is issuing a public health alert for breaded chicken products produced by VU Foods of Kansas City, Mo.

The company has refused to issue a recall for the products that were produced without inspection. Thus, FSIS concludes there is reason to believe the products are unfit for human consumption.

There are no reports of illness due to consumption of these products.

The products bear the establishment number “P-45038” inside the USDA mark of inspection or on the label. Some labels state that the products were distributed by Tact Foodservice or US Foods. These products will not be identifiable to consumers because they were sent to distributors and labeled for “Use in Restaurant Only.”

The following products were shipped to distribution centers:

• Select Cut – Cubed Chicken Breast Meat (product code: 10800)
• Select Cut – Cubed Chicken Breast Meat (product code: 10810)
• Cubed Chicken Breast Meat (product code: 10500)
• Pre-Battered Chicken Tender (product code: 80022)
• Boneless All Natural Chicken Breast Nuggets (product code: 8550)
• Chicken Dark Meat Nuggets (product code: 20505)
• KIKKA Boneless All Natural Chicken Breast Nuggets, packed exclusively for KIKKA RESTAURANTS

The state of Missouri, which discovered the problem, entered a warehouse location and observed products that were produced without the benefit of inspection. It notified FSIS on July 15, 2014, and began detaining the products.

FSIS began detaining additional products on July 17 and served a Notice of Suspension to VU Foods on July 24. The agency is continuing to detain the product in question and is conducting trace forward operations with distribution centers to request the product back from their restaurant customers.

Investigation enforcement actions are continuing and FSIS says it is prepared to take additional actions or expand the investigation based on new evidence.

It's true that you can lose weight on your own without spending any money. With enough careful meal planning and willpower, people can and do shed pounds.

But some people need help, which has spawned a multi-billion dollar diet program industry, not to mention the various pharmaceutical diet aids. Which ones work best?

Everyone has their own opinion and results, judging from the reviews we receive at ConsumerAffairs. But researchers at Duke-National University of Singapore (NUS) Graduate Medical School conducted a scientific study to find the most cost-effective programs and drugs.

Their findings, published in the June issue of the journal Obesity, judged the health and effectiveness of each program and drug based on weight lost for the dollar spent.

Bang for the buck

When examined from that perspective, the researchers say the Weight Watchers program and the drug Qsymia showed the best value for the money. The Jenny Craig program generated the greatest weight loss, but was also the most expensive option tested, the researchers found.

“The obesity epidemic is raising serious health and cost consequences, so employers and third-party payers are beginning to consider how to provide some coverage for commercial weight loss programs,” said senior author Eric Finkelstein. “These results will help them make better purchasing decisions to maximize the health gains using available resources.”

The study reviewed literature of major commercial diet and lifestyle plans and medications that had met a basic standard – proven weight loss at one year or more.

Three diet/lifestyle programs and three medications met the inclusion criteria for the cost-effectiveness analysis: Weight Watchers, Jenny Craig and VTrim, along with the diet pills Qsymia, Lorcaserin and Orlistat.

Left out

The study didn't include three popular meal replacement programs – Medifast, Optifast and Slimfast – not because they weren't deemed effective but because they did not meet all the criteria to be included.

Weight-loss surgery, another highly effective way to lose weight – was also excluded from the study.

Of the programs considered, Weight Watchers was the least expensive intervention, costing an average $377 per year. The expected annual cost for Vtrim users was $682. Because of the relatively high cost of Jenny Craig food, researchers said it was the most expensive intervention, with an annual cost of more than $2,500.

When it came to diet pills, projected annual cost for Lorcaserin was $1,743, $1,518 for Orlistat and $1,336 for Qsymia.

According to the results, consumers lost more weight on Jenny Craig than Weight Watchers, but paid more for each pound lost. For example, average weight loss on Weight Watchers was about 5 pounds. On Jenny Craig, it was about 16 pounds.

Consumers on Orlistat shed a little more than 6 pounds while those taking Vtrim and Lorcaserin lost the same amount – about 7 pounds.

Insurance companies

While these relative costs are obviously of interest to consumers considering a weight loss plan, the researchers say the main beneficiaries of their data may prove to be health insurance companies, which are slowly beginning to cover weight loss expenses under their group policies.

“Health policy makers do not understand value in terms of cost per kilogram lost, but if you tell them that an intervention improves QALYs (quality adjusted life year) at better than $50K per QALY saved, they recognize that as good value for money,” Finkelstein said.

The researchers made no judgments as to the effectiveness of other weight loss interventions that are commercially available. But they say these interventions' will need to match or exceed the cost-per-pound threshold established by the reviewed programs.

If you aren't sure if your health insurance covers a weight loss expense, you should ask. But don't be too disappointed if the answer is no.

Even with rising rates of obesity, Finkelstein says he expects insurance carriers will continue to be hesitant to “sink big money” into coverage of commercial weight loss programs.  

Social media may now provide the favorite way to communicate but email – boring old email – remains indispensable for most people. So when someone comes along and says they've improved email, people tend to listen – albeit with some skepticism.

But Dave Baggett, who studied computational linguistics at MIT in the 1990s, has been turning heads in the tech world lately with his new email app, Inky. Baggett, co-founder of software start-up Arcode, wanted to produce an email client that did more to help consumers manage their email – especially consumers who have multiple email accounts.

The result is a free and eye-pleasing program that pulls all of your email accounts into one place.

Streamlined

“We've made it much more streamlined compared to something like Outlook,” Baggett told ConsumerAffairs. “With Outlook there's a hundred controls on the screen. We tried to boil that down to a small set of controls that are intuitive but retain all the power.”

To do that Inky has to be a little different. It has to think and make decisions.

“My background is all about trying to extract information from text,” Baggett said. “I wanted to make a mail system that would understand your mail. It knows what your mail is about, instead of being a passive observer.”

All sorts of emails come in on a daily basis. There may be a daily deal. You may be on the distribution list for a dozen newsletters. Some of these messages are more important than others.

Sorts by relevance

One of Inky's tasks is to sort through all these messages and make sure the important ones – emails from your boss or spouse – don't get overlooked.

A shipping confirmation may come in from Amazon, with a tracking number. You're busy, so Inky retrieves the tracking number and figures out the location of the package.

“That smartness is what I think is the underpinning of email 2.0,” he said. “We certainly won't be the only ones that do this, but I think we're at the leading edge of this, the way I think email is going to work.”

Inky is currently available for Windows desktop and Mac OS X. The mobile app is limited to the iPhone but an android version is planned for release before the end of the summer.

Simple set-up

To use it you simply download the app to your device and start entering your email addresses. Consumers who have multiple email addresses know that can sometimes be a cumbersome process with a smartphone.

With Inky, you just enter the email address and the password. It does the rest.

“We put a bunch of work into figuring out how to automatically connect to your account, just from your email address and password,” Baggett said. “You'll see other clients do that for the major ones, like Gmail, but not for email addresses from Godaddy. I wanted to make it so that it was 2 pieces of information, you type them in, and it connects.”

Privacy

Baggett said he built the system around privacy. He set out to make Inky different from other email apps and program, which he says store consumers' email on servers.

“That means their employees can read your mail,” he said. “They'll tell you they don't read your mail and they have safeguards, but they still can. And of course, law enforcement can get to it that way too.”

As Baggett explains it, Inky simply downloads your mail to your device. It doesn't get in the middle of the connection between your device and your mail server.

“Your mail never touches our network,” he said. “We have no ability to read it.”

Baggett thinks privacy is something consumers should care about. But even in the wake of revelations of NSA snooping, he thinks he may be a little ahead of the curve.

“I'm not sure this emphasis on privacy matters to people yet but I believe that someday it will,” Baggett said. “I don't see share moving because of privacy issues. I don't see people moving off Gmail because of privacy concerns. But I wonder if one day it'll start to shift.”

Trying to sell a house with a leaky roof, a defective furnace or a crumbling foundation? You need to be sure to disclose those defects or the buyers can come back to haunt you.

But what if your home was the scene of a gruesome crime?

In Pennsylvania, it's no problem, the state Supreme Court ruled in the case of Kathleen and Joseph Jacono, who sold their Delaware County house in 2007 for $610,000.

The buyer, Janet Milliken, sued the couple for failing to disclose that a previous owner, Konstantinos Koumboulis, killed himself and his wife in the house in February 2006, something Miliken didn't learn about until she talked to her new neighbors, Courthouse News Service reported.

Miliken sued for fraud and misrepresentation but in a unanimous ruling, the Pennsylvania Supreme Court turned a deaf ear to her plea, upholding a lower court's finding that the Jacanos had no duty to disclose the deaths and that they made no misrepresentation of material fact to support the claims.

Although murders, rapes and torture may be unpleasant, they are not defects in the structure itself, Justice J. Michael Eakin wrote. 

"The occurrence of a tragic event inside a house does not affect the quality of the real estate, which is what seller disclosure duties are intended to address," the opinion stated. "We are not prepared to set a standard under which the visceral impact an event has on the populace serves to gauge whether its occurrence constitutes a material defect in property."

And besides, it would be too much trouble to list all the possible horrors that might be considered defects, the justices agreed.

"One cannot quantify the psychological impact of different genres of murder, or suicide -- does a bloodless death by poisoning or overdose create a less significant 'defect' than a bloody one from a stabbing or shooting? How would one treat other violent crimes such as rape, assault, home invasion, or child abuse? What if the killings were elsewhere, but the sadistic serial killer lived there? What if satanic rituals were performed in the house?"

Promoters of a weight-loss pill called Double Shot inundated consumers with direct mail pitches for their product, claiming users could eat as much as they want and still lose 15 to 20 pounds per week, all without diet or exercise.

Now, the Double Shot promoters will lose $500,000, all without diet or exercise, following a settlement of Federal Trade Commission charges that the claims were bogus.

According to the FTC’s complaint, Manon Fernet and the company she controls, which did business as the “Freedom Center Against Obesity,” marketed Double Shot to U.S. consumers from 2012 through October 2013, using direct mail advertising. 

“These defendants made outrageous claims about their supposed weight-loss treatment, and encouraged overweight consumers to forgo diet and exercise,” said Jessica Rich, the Director of the FTC’s Bureau of Consumer Protection. “This order should send a strong message that the Commission does not tolerate such fraudulent advertising.”

The company’s advertising claimed to be from a Dr. Joseph Breechman, who was identified as the Director of Weight Loss Research for the purported Freedom Center Against Obesity, which was supposedly in California. The address for the Freedom Center Against Obesity that appeared in Double Shot ads and on the product label was in fact just the address of the defendants’ fulfillment house.

In the mailer, “Dr. Joseph Breechman” was quoted as saying, “This plate of spaghetti has 720 calories! But when you take DOUBLE SHOT you will only absorb… 72 calories!”A supply of pills “to lose up to 30 lbs” cost $79. The bottles contained blue capsules that supposedly burned fat, and red ones that supposedly blocked calories. In addition, the defendants allegedly claimed that the effectiveness of Double Shot as a weight-loss treatment had been proven by clinical studies.

The FTC charged that the defendants’ claims were false or unsupported.

Maybe the new home sales market isn't doing so well after all. The government reports sales of new single-family houses plummeted 8.1% in June to a seasonally adjusted annual rate of 406,000.

That comes just a month after it was reported that sales in May had soared to an annual rate of 504,000 -- the best level in 6 years. But, as it reported the June numbers, the U.S. Census Bureau revised the May figure downward to show that only 442,000 homes were actually sold.

And, if that's not enough disappointing news, the April figure was revised from 425,000 to 408,000 and Marches number was put at 403,000 instead of the initially-reported 410,000

Prices and inventory

The median price of new homes sold in June was $273,500 down $9,100 from May but up $13,700 from June 2013. The median is the point at which half the prices are higher and half are lower. The average price last month was $331,400 up $11,300 from the previous month and up $25,300 year-over-year.

The estimate of new houses for sale at the end of June was 197,000, which represents a 5.8-months supply at the current sales rate.

The full June new home sales report is available on the Census Bureau website.

Great American Marketing of Houston, Texas, is recalling approximately 475 pounds of ready-to-eat products

The products may be contaminated with Listeria monocytogenes.

There have been no reports of illnesses associated with consumption of these products

The sandwich and wrap products were produced on July 15, 2014, and shipped to retail locations in Texas. Case labels or packaging bear the sell by date of 07/26/14.

Products regulated by the Department of Agriculture’s Food Safety and Inspection Service (FSIS) bear the establishment number “EST 31680” or “P-31680” inside the USDA mark of inspection.

The following FSIS-regulated products are subject to recall:

• 7.4-oz. plastic-covered tray packages containing Chicken Caesar Wraps.
• 8.1-oz. plastic-covered tray packages containing Club Wraps.

Food and Drug Administration-regulated products being recalled include:

• 10.5-oz. plastic-covered tray packages containing Ham and Cheddar Premium sandwiches.
• 10.5 oz. plastic-covered tray packages containing Turkey & Swiss Premium sandwiches.

Consumers are advised to reheat ready-to-eat products until steaming hot.

Consumers with questions regarding the recall may contact Bill Welch at (713) 682-6471.

Earth Circle Organics, dba River Canyon Retreat) is recalling Organic Carob Powder.

The company has been notified by its supplier of possible health risks related to Salmonella contamination.

No illnesses have been reported to date.

The following products were sold to distributors and retail outlets in North America:

No other Earth Circle Organics products are affected by this recall.

Consumers who have purchased these products should not consume it, but discard it or return it to the place of purchase.

Consumers with questions may contact Earth Circle Organics at 530-273-3663 ext 216, Monday – Friday from 9 am-5 pm, PST, or by email at recall@earthcircleorganics.com .

Whole Foods Market is recalling made-in-store items prepared with organic and conventional stone fruit, including peaches, nectarines, and plums from Wawona Packing.

The products may be contaminated with Listeria monocytogenes

No illnesses have been reported to-date.

Made-in-store items that contained one or more fruits subject to the Wawona Packing Co. recall were sold between June 1 and July 21. Not all items or all products were sold in all store locations.

Affected made-in-store items such as cakes, tarts, salsas, and prepared salads were sold in Whole Foods Market stores using Whole Foods Market scale labels in all states where Whole Foods Market stores are located except Florida, Washington and Oregon.

Additionally, Whole Foods Market pulled and destroyed the recalled stone fruit sold in all regions where it was available, which may have been labeled with a “Sweet 2 Eat” sticker. A list of recalled made-in-store items by state can be found here.

Customers who have purchased recalled product from Whole Foods Market should discard it, and may take their receipt to Whole Foods Market for a full refund.

Consumers with questions may call 512-477-5566, extension 20060, Monday through Friday, 8:00 a.m. to 5:00 p.m., CDT.

One of the major food trends to emerge in the last few years is the growth of specialty foods and beverages. Natural, organic, craft, artisan, locally-grown – consumers appear willing to pay more for what they perceive as enhanced quality.

And it seems every member of the household is eating better. The Institute of Food Technologists (IFT) has noted that the trend toward specialty food extends to pets.

According to an article in Food Technology Magazine, the premium sector accounted for 40% of the $26 billion U.S. food market in 2013. Sales of natural pet foods totaled $4.1 billion in 2012.

When questioned, 79% of pet owners said the quality of their pets' food was as important as the food they themselves ate.

The motivation for buying specialty pet food appears to be adding “excitement” to the pets’ diets with flavors, gravies, look-alike human recipes, and meal specific foods such as appetizers and breakfast.

Emphasis on health

Health is another significant driver. Half of new specialty pet foods have added vitamins, antioxidants, protein, DHA for puppies/kittens, and no fillers, artificial ingredients or byproducts.

Some of the same food fads attracting human participation are influencing pet diets. The Paleo Diet, for example, has created lines of specialty foods that mimic the food of the prehistoric diets of canines and felines.

Dogs and cats that eat too much food have created yet another niche – functional and therapeutic foods for overweight pets.

More sophisticated food experience

All of this shouldn't come as too much of a surprise since it appears to be an extension of how consumers are eating these days. According to the IFT article, 42% of adult meals and 33% of solo snacking occasions in 2013 involved “a more-sophisticated food experience characterized by gourmet flavors, compelling narratives, freshness, unique ingredient origins, and/or culinary traditions.”

Chocolate, specialty oils, and cheese were the most frequently purchased gourmet food items in 2013, picked up by more than half of specialty food shoppers. More than 40% of shoppers picked up either speciality yogurt, coffee, salty snacks, nonalcoholic beverages, frozen desserts/ice cream, meat/poultry/seafood, and specialty breads/baked goods.

While craft beers, brewed by small-batch breweries, have increasingly taken market share from mass producers like Anheuser Busch and Coors, so has craft coffee. CNBC recently reported that many of the 32 million Americans who drink coffee every day don't blink at paying more for better-tasting java.

Brett Smith, who co-founded Durham, N.C.-based specialty coffee wholesaler Counter Culture Coffee, told the business network that specialty coffee now comprises 37% of all the coffee consumed in the U.S. He said consumers don't mind paying more because they expect to receive better quality.

What's next?

So what's the next specialty food trend to take consumers by storm? The Specialty Food Association of America last week issued its forecast, based on what its observers found at the Summer Fancy Food Expo in late June.

According to SFAA you can expect to see expanding lines of gourmet peanut butter, protein-packed jerky and smoke flavor in all sorts of unexpected places, like smoked cola gum drops.

Other trends making the list include modern mayonnaise, new twists on popcorn, new takes on yogurt, such as beet and sheep's milk, and a next wave of seaweed snacks.

Trends from past Fancy Food Shows with staying power include coconut, sriracha, ancient grains, healthier snack chips and – of course -- innovation in gluten-free items.