Current Events in October 2015

After slumping in August, construction of new homes shot up 6.5% last month -- to a seasonally adjusted annual rate of 1,206,000, according to a joint release from the Census Bureau and the Department of Housing and Urban Development. The surge put the rate of housing starts 17.5% above the year-ago level of 1,026,000.

Ground-breaking on single-family homes was up 0.3% from August, while the September rate for units in buildings with five units or more was 454,000, a gain of 66,000 over August.

Building permits

The outlook for construction of new homes in the months ahead took a step backward. Privately-owned housing units authorized by building permits fell 5.0% to a seasonally adjusted annual rate of 1,103,000. Nonetheless, it is still 4.7% above the September 2014 estimate of 1,053,000.

Breaking that down, permits for new single-family home construction dipped 0.3% from August, and authorizations for multi-family units were down 6,300.

Stifel Fixed Income Chief Economist Lindsey Piegza sees a good news-bad news situation. She says that while housing starts were up more than expected, the larger-than-expected decline in permits, "suggests the anticipation of further momentum in the U.S. housing market may fall short of expectations with a slower pace of activity coming down the pipeline."

The full housing starts report is available on the Commerce Department website.

General Motors is recalling 9,932 model year 2006-2007 Buick Rainier, Chevrolet Trailblazer and GMC Envoy vehicles, and 2006 GMC Envoy XL and Chevrolet Trailblazer EXT vehicles.

Fluid may enter into the driver's door master power window switch module, causing corrosion that could result in a short in the circuit board, causing window switches to become inoperative. Previously, the affected vehicles may have had their master power window switch module treated with a protective coating, instead of having it replaced.

The protective coating may not eliminate the risk that the circuit board could short and result in a fire, even while the vehicle is unattended.

GM will notify owners, and dealers will install a new driver's door switch module, free of charge. The manufacturer has not yet provided a notification schedule.

Owners may contact Buick customer service at 1-800-521-7300, Chevrolet customer service at 1-800-222-1020, and GMC customer service at 1-800-462-8782. GM's number for this recall is 15700.

Ford Motor Company is recalling 658 model year 2016 Ford Fusions manufactured September 3, 2015, to September 13, 2015, and 2016 Lincoln MKZ vehicles manufactured September 3, 2015, to September 12, 2015.

The recalled vehicles have a fuel tank that may have insufficient wall thickness. As a result, the fuel tanks may crack in the event of a crash and thus the vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 301, "Fuel System Integrity."

A fuel tank that cracks may leak fuel, increasing the risk of a fire.

Ford will notify owners, and dealers will replace the fuel tank, free of charge. The recall was expected to begin October 19, 2015.

Owners may contact Ford customer service at 1-866-436-7332. Ford's number for this recall is 15C11.

Volkswagen already faces more than 400 lawsuits filed by U.S. consumers over its use of sophisticated computer software to cheat on emission tests as well as investigations by government agencies, but the latest lawsuit, if successful, may produce results that actually benefit the general public.

It was filed today by the Center for Auto Safety (CAS), a Washington, D.C. non-profit that has been battling the auto industry for 45 years. Unlike the private lawsuits which seek monetary damages for VW and Audi owners, the center’s suit seeks action to clean up the damage from VW’s actions and ensure the violations are not repeated.

Specifically, the lawsuit seeks an injunction ordering VW:

• To remediate the environmental harm caused by VW’s emissions relief,
• To appoint an independent organization to monitor VW’s compliance with state and federal laws as well as other relief granted in this lawsuit, and
• To order VW to pay a portion of its annual net profits into an independent fund administered by third parties to a non-profit organization to offset the environmental damage.

"Unprecedented corporate crime"

“CAS has sued VW and Audi because they committed an unprecedented corporate crime and fraud on the public that requires injunctive relief to remedy the harm caused by their violations of state and federal environmental and consumer protection laws,” said Clarence Ditlow, executive director of the center. “Class actions and government enforcement actions result in headlines, penalties and settlements that do nothing to change underlying corporate behavior or remediate the underlying damage caused by illegal behavior.”

Ditlow said other sanctions commonly imposed on automakers also fall short.

“The independent monitors and auditors sanctioned by the Justice Department and federal agencies are nothing more than corporate law firms and employees who are all too willing to sign off on the behavior of their employers in documents filled with withheld redactions. When so-called independent funds are set up as was done in the Toyota Unintended Acceleration class action, they go to auto company designed programs that benefit the auto maker, not the consumer,” Ditlow said, vowing that his group will get results.

“CAS will use its integrity and skills acquired through 45 years of battling the auto industry to ensure that this litigation will reform VW and Audi once and for all and set a precedent for all other auto companies in the future,” Ditlow said in an email to ConsumerAffairs.

Two surveys conducted independently reveal starkly different feelings about McDonald's. One sampled consumer sentiment – the other the feelings of McDonald's franchise operators.

If you guessed that consumers have the negative view and operators the bullish outlook, you would be wrong.

According to the YouGov BrandIndex, McDonald's all-day breakfast, which debuted October 6, is a hit with consumers. The fast food chain has seen the biggest improvement in customer satisfaction among frequent breakfast diners over the past 90 days. McDonald's raised its satisfaction scores approximately seven percentage points from 15 to 22, on a scale from -100 to 100, with zero being neutral.

The survey found 42% of consumers who frequently eat breakfast at fast food restaurants would consider eating at McDonald's the next time they eat breakfast out. That's second behind Subway's 48% and well ahead of Taco Bell, which has made a major breakfast marketing push lately.

Stock soars

Wall Street is also pleased with what new CEO Steve Easterbrook has been doing lately. McDonald's stock is over $103, the highest level in years.

But the second survey may show the company faces some challenges. In fact, it prompted a headline writer for the Daily Mail to write “Is this the beginning of the end for McDonald's?”

The survey is the work of Wall Street analyst Mark Kalinowski, who questioned 29 franchise owners who operate 226 McDonald's restaurants. Admittedly, it's a small sample of the 14,000 McDonald's locations.

But Kalinowski found the overwhelming majority of the owners he surveyed had a negative view – not just of all-day breakfast, which one called “a disaster” – but of the company's future.

Klinowski says one pessimistic operator suggested McDonald's was in its “final days” and that the brand as a whole was in a “deep depression.”

“Seeds of our demise”

Another unhappy franchise owner estimated that 30% of franchise operators are insolvent. Another accused Easterbrook of sowing the “seeds of our demise. We are a quick-serve fast-food restaurant, not a fast casual like Five Guys or Chipotle. The system may be facing its final days,” the operator wrote.

Another franchise owner said “the lack of leadership is frightening.” Some said the company has not addressed the issue of food quality and customer service, and instead has burdened franchises with all-day breakfast while not acting on promises to streamline the menu.

Klinowski quotes one franchisee as saying “we continue to jump from one failed initiative to another.”

The analyst says several franchise owners said the all-day breakfast has slowed down service while causing chaos in the kitchens.

In short, they're not lovin' it.

A new discovery in Alzheimer’s research could prove to be integral in slowing the cognitive decline that makes the disease so difficult to manage. Researchers from the Vlaams Instituut voor Biotechnologie (VIB) and Katholieke Universiteit Leuven (KU Leuven) in Belgium have discovered that a certain protein called GPR3 may hold the key to reducing amyloid plaque build-up in the brain.

Researchers believe that the accumulation of proteins in the brain –specifically amyloid plaques – play a major role in the development of Alzheimer’s disease. Over time, proteins in the brain are segmented into different parts – one type of segment is called an amyloid-β peptide.

When amyloid-β peptides build up, they become amyloid plaques, which can block the pathways between nerves and the brain. Eventually, this forces many of the brain’s networks to shut down, which compromises healthy mental function. This causes dementia to develop, which is a hallmark of Alzheimer’s disease.

Researchers at VIB and KU Leuven were able to discover and test proteins in order to determine which ones played a major role in amyloid plaque build-up. “We discovered that G protein-coupled receptor 3 (GPR3), a protein expressed in the brain, plays a significant role in the generation of amyloid-? peptides and accumulation of amyloid plaques,” said Amantha Thathiah, leader of the research team.

“Our research indicates that the absence of GPR3 alleviates the cognitive decline and reduces amyloid pathology in multiple disease-relevant models. These studies identify GPR3 as a therapeutic target for [Alzheimer’s disease] and provide a significant level of validation necessary for the future of [Alzheimer’s disease] drug discovery."

Thathiah and her team were able to test their theory by using mouse models. By lowering GPR3 levels in the brain, researchers found that they were able to improve cognition in test subjects. Further examination of post-mortem brain tissue showed that GPR3 levels were high, suggesting that the protein progressed the disease in those subjects.

By testing multiple models, the researchers hope that their work will help form new therapies to combat Alzheimer’s disease. “Given the vast resources required to develop and evaluate a new therapy, demonstrating the relevance of research findings in multiple disease-relevant models is crucial. Our research provides exactly this level of validation,” said researcher Bart de Strooper.

The full study has been published in the journal Science Translational Medicine. 

Ten years is a long time to fight over something as simple as salt. But the Center for Science in the Public Interest says it doesn’t have much choice. It is suing the U.S. Food and Drug Administration, saying that for 10 years it has ignored a petition asking it to treat salt as a food additive.

“For more than 35 years, FDA has dragged its feet and refused to do anything to protect Americans from excess sodium in the food supply,” said CSPI President Michael F. Jacobson in a prepared statement. “The government’s inaction condemns hundreds of thousands of Americans to early deaths due to preventable strokes and heart attacks.”

The average American consumes about 3,650 milligrams of sodium per day, far in excess of the 2,300 milligram limit recommended by federal dietary guidelines, or the 1,500 milligram limit recommended for certain subgroups, including children, people over 50, African Americans, and people with hypertension, kidney disease, or diabetes.

Should be a food additive

CSPI’s 2005 petition asked the FDA to revoke salt’s status as a “generally recognized as safe,” or GRAS, substance, and to treat it as a food additive under the law. The petition specifically urged the agency to require food manufacturers to gradually reduce the amount of sodium in different categories of processed food, and to require health messages on retail packages of table salt one-half ounce or larger.

“Food companies are putting far too much sodium in processed food in the factory, and we are all paying for it with unnecessarily high rates of hypertension, heart disease, and stroke,” said former New York City Health Commissioner Tom Farley, now CEO of The Public Good Projects. “It’s high time for the FDA to protect Americans from this risk.”

“I hope that CSPI’s lawsuit succeeds in spurring long overdue action that will save thousands of lives a year by reducing sodium in our food supply,” said Frank Sacks, professor of cardiovascular disease prevention at the Harvard T. H. Chan School of Public Health.

37 years

CSPI has been calling on the FDA to order food manufacturers to reduce salt since 1978. Throughout all of those years, and specifically between 2005 and 2015, Americans’ sodium intake has continued to climb — a sign that the voluntary approach urged by the FDA and the food industry has failed, CSPI says.

In 2007, the FDA published a Federal Register notice, convened a public hearing, and opened a comment period on CSPI’s petition. Since that time, the agency has failed to act, according to CSPI.

Though some food products have posted modest reductions in sodium over the past 10 years, other products have been reformulated to have even more of it. Schmidt’s Potato Rolls, for instance, have 47 percent more sodium in 2015 than they did in 2005. Whole Foods’ 365-brand 4-Cheese Pizza contains 30 percent more sodium than it did in 2005, CSPI said.

While companies such as Walmart, Unilever, and Cargill have made sodium reduction a priority and achieved significant gains, the lack of FDA action means population-wide reductions necessary to reduce sodium-related diseases have not been achieved, CSPI argues.

In April 2010 the Institute of Medicine issued a major report outlining strategies to reduce sodium intake. It strongly endorsed the idea of mandatory reductions in packaged and restaurant foods phased in over time.

When you are buying something online, there are often plenty of consumer reviews about the product. But can you trust them?

After all, a number of enterprising souls are selling their services to online marketers, offering to write a five-star review for only $5; this means that a glowing review might mean very little.

Amazon.com is going on the attack against this practice. The company has filed a lawsuit in King County, Washington Superior Court against 1,114 individuals currently identified as John Doe. It charges them with breach of contract for violating Amazon's terms of service agreement.

“Honest and unbiased reviews allow customers to shop with confidence at Amazon.com,” the suit says. “Amazon takes the credibility of its customer reviews very seriously.”

Unfair advantage

The suit says a “small minority” of sellers and manufacturers try to gain an unfair advantage by paying people to post positive reviews, regardless of whether they have even seen the product. This practice, says Amazon, undermines trust and tarnishes the company's brand.

Despite attempts to keep reviews on the up-and-up, the company says “an unhealthy ecosystem has developed outside of Amazon to supply reviews in exchange for payment.”

Amazon targeted its defendants by their solicitations on a freelance jobs site called Fiverr. The writers used handles in place of names, but Amazon said it is taking steps to learn their identities.

The suit seeks unspecified damages.

In April, Amazon filed suit against websites that allegedly marketed fake reviews to businesses that sold products on Amazon.com. The suit, also filed in Washington state, accused the companies of false advertising, trademark infringement, and violating consumer protection laws.  

With nearly every airline charging a checked bag fee, passengers are trying to cram more and more into the overhead bins.

That creates problems for both airlines and passengers but the chore might get a little easier on new and retrofitted Boeing 737s.

Alaska Airlines is taking delivery of some of the new jets that feature Boeing's new Space Bins, which the airline says will increase the room for carry-on bags by 48%. Alaska says its the first airline to line up for the capacity-adding feature.

"Alaska is relentlessly focused on making the travel experience better," said Sangita Woerner, Alaska Airlines vice president of marketing. "We've been on a mission to improve our cabin experience for several years and Space Bins are part of a $150 million investment we've made to make flying more comfortable and enjoyable.”

By the end of 2017, Woerner says nearly half of Alaska Air's fleet will have larger bins to accommodate a carry-on bag for virtually every passenger.

Installed on 34 new jets

The airline said it will take delivery of 34 737s and one MAX in the next two years and will begin retrofitting 34 Boeing Sky Interior aircraft, primarily 737-900ERs, in 2016.

Other airlines are sure to explore this option, since all are wrestling with the space issue. Maura, a United passenger, posted this response from United Customer Service at ConsumerAffairs, when he complained that he could not find space for his bags.

“We strive to accommodate carry-on bags for the greatest number of customers possible,” the United rep wrote. “More customers are choosing to bring their luggage onboard, which could cause a shortage of storage space. Our planes have some of the largest overhead storage bins in the industry. When the bins become full, remaining bags must be gate-checked.”

Holds six bags

Alaska Airlines says very soon, it will have the largest overhead capacity. It says each Space Bin can hold six bags, two more than the current pivot bins installed on Next-Generation 737s with the Boeing Sky Interior. That's based on a standard size carry-on bag measuring 9 inches x 14 inches x 22 inches.

"We work closely with our customers to continuously enhance their airplanes so they can offer great passenger experiences," said Brent Walton, manager of 737 Interiors New Features for Boeing Commercial Airplanes. "We have a strong record of delivering value with innovative interiors features, like bigger bins that help reduce passenger anxiety about overhead storage and provide a better travel experience."

Improving acccess

When open, the bottom edge of the Space Bin will hang about two inches lower, so travelers can lift their carry-on bags in and out more easily. The deeper bins will allow more bags to be stowed and increase visibility into the back of the bins.

Alaska also says the Space Bins, designed without a flight attendant bin assist mechanism, will be easier to close.

Alaska Airlines said it is installing Space Bins on all its 737-900ERs and MAX aircraft currently on order and by 2017 will have 69 airplanes, or 46% of its passenger fleet, outfitted with Space Bins.

“We goofed.” That's the upshot of an announcement by the Insurance Institute for Highway Safety (IIHS) that it's revising its booster seat ratings for 2014.

Two models of boosters -- the Eddie Bauer Deluxe Highback 65 and Safety 1st Summit 65 -- were awarded a BEST BET designation in error. These seats, which can be used either with internal harnesses or as boosters, should have been designated as Not Recommended.

Consumers are advised not to purchase these seats for use as boosters. However, IIHS says there is no problem with either of them when used with the internal harness.

The purpose of a booster seat is to make a vehicle safety belt, which is designed for an adult, fit a child correctly. Correct fit means the belt lies flat across a child's upper thighs, not across the soft abdomen, and the shoulder belt crosses snugly over the middle of a child's shoulder.

Booster concerns

The concern about the Eddie Bauer Deluxe Highback 65 and Safety 1st Summit 65, both manufactured by Dorel Juvenile, is that while the shoulder belt crosses the child's body at the middle of the shoulder, it is positioned too far forward. In that position, the shoulder belt would be less effective in a crash.

IIHS evaluates boosters using a test dummy representing an average-size six-year-old. Engineers measure how safety belts fit the dummy in each of the tested boosters under four conditions that span the range of safety belt configurations in vehicle models. Based on these measurements, a seat is designated a BEST BET, GOOD BET, Check Fit, or Not Recommended to reflect the likelihood that the booster will work in any vehicle.

The original booster rating protocol called for measuring only the shoulder belt’s lateral position. It didn't take into account whether the shoulder belt was close enough to the dummy's body.

During preparations for the 2014 booster ratings release, the protocol was changed to limit the distance allowed between a reference point on the dummy's chest and the shoulder belt to one (1) centimeter. If the belt is within that distance of the chest, it will be close enough to the shoulder to provide good crash protection. Booster manufacturers were informed of the revised protocol.

However, the Eddie Bauer Deluxe Highback 65 and Safety 1st Summit 65, though new for 2014, were mistakenly evaluated according to the old protocol. The gap between the chest reference point and the shoulder belt with these two boosters is more than one (1) centimeter in all of the Institute's test conditions.

This was discovered only recently, when the seats were re-evaluated as part of a research study. Since then, IIHS has re-evaluated every booster seat listed in the ratings and currently on the market and has not encountered the problem on any others.

Children who have outgrown the weight or height limit for the harness should continue to use the seats as boosters if no other booster is available. Parents are advised to purchase a different seat that provides better belt fit as soon as possible.

BEST BET boosters can cost as little as $20. Until a replacement can be obtained, a child for whom an adult safety belt doesn't yet fit properly is better off using any booster than none at all.

Builders continue to express their confidence in the market for newly constructed single-family homes.

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) jumped another three points in October, returning the HMI levels last seen at the end of the housing boom in late 2005.

“With October’s three-point uptick, builder confidence has been holding steady or increasing for five straight months. This upward momentum shows that our industry is strengthening at a gradual but consistent pace,” said NAHB Chief Economist David Crowe. “With firm job creation, economic growth and the release of pent-up demand, we expect housing to keep moving forward as we start to close out 2015.”

Derived from a monthly survey, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair," or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average," or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Two of the three HMI components posted gains in October. The index measuring sales expectations in the next six months rose seven points to 75, and the component gauging current sales conditions increased three points to 70. The index charting buyer traffic held steady at 47.

“The fact that builder confidence has held in the 60s since June is proof that the single-family housing market is making lasting gains as more serious buyers come forward,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. “However, our members continue to tell us there are still pockets of softness in some markets across the nation, and that they face challenges regarding the availability of lots and labor.”

Looking at the three-month moving averages for regional HMI scores, all four regions posted gains. The West registered a five-point uptick to 69 while the Northeast, Midwest and South each rose one point to 47, 60, and 65, respectively.

Good Food Concepts of Colorado Springs, Colo., is recalling approximately 12,566 pounds of beef, pork, and poultry products.

The products were produced without a fully implemented Hazard Analysis and Critical Control Points (HACCP) plan. They also contain sodium nitrite, which is not listed on the label.

There have been no confirmed reports of adverse reactions due to consumption of these products.

The following beef, pork and poultry items, produced between October 16, 2014, and October 16, 2015, are being recalled:

• Various sized packages containing “RANCH FOODS DIRECT SMOKED BACON.”
• 1-lb. packages containing “RANCH FOODS DIRECT BACON ENDS.”
• Various sized packages containing “RANCH FOODS DIRECT SMOKED PIT HAM.”
• Various sized packages containing “RANCH FOODS DIRECT PORK SMOKE HAM BUTT PORTION BI.”
• 1-lb. packages containing “RANCH FOODS DIRECT PORK HAM BUTT PORTION BI.”
• Various sized containing “RANCH FOODS DIRECT PORK SMOKED HAM SHANK PORTION BI.”
• Various sized packages containing “RANCH FOODS DIRECT PORK HAM STEAK.”
• Various sized packages containing “PORK PEEPA’S HAM BNLS.”
• 1-lb. packages containing “RANCH FOODS DIRECT PORK SMOKE HAM DICED.”
• 1-lb. packages containing “RANCH FOODS DIRECT PORK SMOKE HAM GROUND 1#.”
• Various sized packages containing “RANCH FOODS DIRECT PORK SMOKED HAM SHANKS SLICED.”
• Various sized packages containing “RANCH FOODS DIRECT PEPPERONI SLICE.”
• Various sized packages containing “RANCH FOODS DIRECT GENOA CLASSIC.”
• Various sized packages containing “RANCH FOODS DIRECT BEEF PASTRAMI.”
• Various sized packages containing “RANCH FOODS DIRECT BOLOGNA SLICE.”
• Various sized packages containing “RANCH FOODS DIRECT PEPPERONI.”
• Various sized packages containing “RANCH FOODS DIRECT HAM STEAK COUNTRY STYLE.”
• Various sized packages containing “RANCH FOODS DIRECT HAM DELI SLICED.”
• Various sized packages containing “RANCH FOODS DIRECT CANADIAN BACON.”
• Various sized packages containing “RANCH FOODS DIRECT BOLOGNA 1#.”
• Various sized packages containing “RANCH FOODS DIRECT PORK LIVERWURST WESTPHALIAN.”
• Various sized packages containing “RANCH FOOD DIRECT PORK LIVERWURST PISTACHIO DELI STYLE.”
• Various sized packages containing “RANCH FOODS DIRECT TURKEY BREAST NATURAL SMOKED, SLICED.”
• Various sized packages containing “RANCH FOODS DIRECT ROASTED DELI TURKEY.”
• 1-lb. packages containing “RANCH FOODS DIRECT BRISTOL BEER BRATWURST.”
• Various sized packages containing “RANCH FOODS DIRECT POLISH SAUSAGE PORK.”
• 1-lb. packages containing “RANCH FOODS DIRECT SAUSAGE PORK BANGERS.”
• Various sized packages containing “RANCH FOODS DIRECT ANDOUILLE.”
• Various sized packages containing “RANCH FOODS DIRECT LINGUISA.”
• 1-lb. packages containing “RANCH FOODS DIRECT PORK SMOKED GERMAN BRATWURST.”
• Various sized packages containing “RANCH FOODS DIRECT GERMAN BRATWURST.”
• Various sized packages “RANCH FOODS DIRECT KOLBASA RING.”
• 1-lb. packages containing “RANCH FOODS DIRECT 8/1 HOT DOGS.”
• Various sized packages containing “RANCH FOODS DIRECT SAUSAGE BEEF HOT DOG FOOT LONG 5/1.”
• Various sized packages containing “RANCH FOODS DIRECT VEAL BRATS.”
• Various sized packages containing “RANCH FOODS DIRECT CORNED BEEF BRISKET.”

The recalled products bear establishment number “EST. 27316” inside the USDA mark of inspection, and were shipped to retail locations in Colorado and New Mexico.

Customers who purchased these products should not consume them. The products should be thrown away or returned to the place of purchase.

Consumers with questions may contact Nikowa Neill at (719) 377-7514.

Del Monte Fresh Produce is recalling Granny Smith green apples.

The product may be contaminated with Listeria monocytogenes.

No illnesses have been reported to date.

A total of 695 boxes containing eight (8) “Granny Smith” green apples each and 67 clear plastic bags containing six (6) “Granny Smith” green apples each were distributed to Coremark and 7-Eleven for sale in convenience stores in the Mountain States region on Oct. 1-12, 2015.

States affected include Colorado, Kansas, Missouri, Nebraska, New Mexico, Oklahoma, South Dakota, Utah and Wyoming. The apples at store level are individual fruit on open displays.

Consumers who purchased the recalled product should throw it in the garbage and contact Del Monte Fresh Produce for a refund.

Consumers with questions may contact the company’s consumer hotline at 1-800-659-6500, operating 24 hours seven days a week or by email at Contact-US-Executive-Office@freshdelmonte.com.

Toyota Motor Sales, USA is recalling approximately 310 Model Year 2016 Tacoma Pickup Trucks.

The driver’s knee air bag module may have been attached to the instrument panel with incorrect bolts, resulting in the bolts loosening over time. A loosened bolt could affect the performance of the knee air bag, increasing the risk of injury during a crash.

Vehicles owners will be notified by first class mail and Toyota dealers will replace the bolts with bolts of the correct specification.

Consumers may contact Toyota customer service at 1-800-331-4331, or Lexus Customer Service at 1-800-255-3987.  

Retailers are a bit nervous in the weeks leading up to the start of the 2015 holiday shopping season. It remains to be seen how consumers will react.

Will they spend the money they've saved this year on gasoline? Or, will they use that money to pay existing bills and add to savings?

The evidence so far suggests shoppers will be careful with money and look for bargains. Heading into the holiday season, sales have been lackluster and even the National Retail Federation predicts only a modest increase in sales over last year.

“This provides opportunities for retailers and brands to continue to drive sales for a strong year-end finish,” said Lance Eliot, of Interactions, a retail marketing service. 'It’s not surprising that retailers plan for Black Friday sales to make up for any profit shortfalls but how they enable those sales may take some retailers by surprise.”

Buying before Halloween

Eliot cites a report predicting one-third of shoppers will begin buying Christmas gifts before Halloween. For those who are trying to save on holiday purchases, Bryan Leach, CEO of Ibotta, a shopping app, says it will pay to shop early.

“Don’t wait until December to begin buying all your gifts,” he said. “Start scanning sales and stocking up now, since stores typically clear inventory from the previous season and year to fill their shelves with brand new products.”

He says it's also critical to make a budget. By setting a budget now and already having gifts in mind, you’ll be able to scope rebates, coupons, and deals over the next few months, instead of spending a fortune in last minute panic buying.

He also says it will help save money if you plan holiday meals well in advance.

Saving on meals

“Holiday shopping doesn’t just mean gifts under the tree, but a season full of hor’dourves, cocktail hours, and tasty dinners spent with family and friends,” Leach said. “Avoid unnecessary stress over last minute menus by picking out recipes in advance and purchasing any dry goods that you think you may need.”

Meanwhile, the bargains have already started. BestBlackFriday.com reports Sony has cut the price of its popular PlayStation 4 game system to $349.99, which is a discount of $50 from the usual price of $399.99. The discount will remain in place thoughout the holiday season.

If anyone knows gambling when they see it, you would expect it to be Nevada gaming regulators. So it might be significant that the Nevada Gaming Commission has declared one-week fantasy sports games to be unregulated gambling.

In a memorandum, Nevada Gaming Control Board Chairman A.G. Burnett said he asked the state attorney general's office and others to examine enterprises like DraftKings and FanDuel to determine if they were gambling operations.

“Based on these analyses, I, along with staff, have concluded that DFS (daily fantasy sports) constitutes gambling under Nevada law,” Burnett wrote. “More specifically, DFS meets the definition of a game, or gambling game pursuant to Chapter 463 of the Nevada Revised Statutes.”

Game of skill

DFS has been considered legal because it had been judged to be a game of skill, rather than a game of chance. But Burnett says the games involve wagering on the collective performance of individuals participating in sporting events.

Under current law, Burnett says, if you are going to operate such games – as DraftKings and FanDuel do – then you must be licensed.

As a result, all unlicensed daily fantasy sports games – and that's all of them – must cease and desist operating in Nevada – meaning consumers in Nevada can't play.

FBI inquiry

Meanwhile, The New York Times reports the FBI has made inquiries into the operations of daily fantasy sports websites after players of the games and lawmakers leveled charges of insider trading and predatory practices.

At least one state attorney general, New York's Eric Schneiderman, has also launched an investigation. Schneiderman has sent letters to the executives of both DraftKings and FanDuel seeking information about company policies when it comes to employees participating in DFS.

“It’s something we’re taking a look at,” Schneiderman said in a brief statement last week.” Fraud is fraud. And, consumers of any product – whether you want to buy a car, participate in fantasy football – our laws are very strong in New York and other states that you can’t commit fraud.”

In a letter to DraftKings CEO Jason Robbins, Schneiderman expressed concern over reports that company employees or agents may have gained an unfair financial advantage in the contests by accessing non-public data.

“These allegations, and your company’s subsequent statement, raise legal questions relating to the fairness, transparency, and security of DraftKings and the reliability of representations your company has made to customers,” Schneiderman wrote.

Both DraftKings and FanDuel, which are among the biggest advertisers on television, have denied employees unfairly benefited from insider information. But both companies have altered policy to bar employees from participating in DFS games on rival websites.

It rained yesterday in Southern California, an event so unusual lately that in Palm Springs, residents ran into the streets to enjoy the phenomenon of rainwater falling on their heads.

But in general, the Southland is dry as a bone and the state has imposed Draconian restrictions to preserve what little water is available. So it irks environmentalists to no end that the U.S. Forest Service continues to allow Nestlé to pump water from the San Bernardino National Forest and bottle it under its Arrowhead Springs label.

The Center for Biological Diversity and others sued the U.S. Forest Service Tuesday, noting that Nestlé's special-use permit expired in 1988, Courthouse News Service reported.

Nestlé, which reported $92 billion in revenue last year, has been pumping about 66,000 gallons a day through its Strawberry Creek pipeline, Palm Springs' Desert Sun newspaper reported.

$15 million

Nestlé pays an annual fee of $524 for the water. It sells a 6-gallon case of Arrowhead for $3.74, which works out to about $15 million a year, not counting bottling and distribution costs.

Why is Nestlé allowed to pump precious water from taxpayer-owned land and sell it back to those very same taxpayers for next to nothing on an expired permit?

Good question.

The Forest Service first issued a permit to Nestlé in 1976. The permit expired in 1988 and Nestlé applied to renew it but, in the best federal tradition, the Forest Service just hasn't gotten around to doing anything about it for the last 27 years.

So, while it considers whether or not to renew the permit, Nestlé continues pumping away, draining precious water while proudly proclaiming on its label that the water comes from Southern California taxpayers' own backyard.

"Fresh taste"

"Local means fresh taste," the Arrowhead bottles burble. "Proudly sourced from mtn springs in the west for a crisp, fresh taste."

The water may taste OK, but the lawsuit argues that the diversion of water from Strawberry Creek harms and reduces habitat for protected plants and animals. It also "seriously affects summer flows in Strawberry Creek and the amount of life that the watershed can support."

Among the affected species are the Least Bell's vireo, the southwestern willow flycatcher, California spotted owls, the two-striped garter snake, the southern rubber boa, and others.

Lead attorney for the groups is Lisa Belenky with the Center for Biological Diversity's Oakland office.

When you sign a contract to enter a long-term care facility, the document often contains what is called a pre-dispute arbitration clause.

It means that right up front, you agree to let a third party settle any dispute that might arise, rather than resorting to a lawsuit.

The attorneys general from 16 states have sent a petition to the Centers for Medicare and Medicaid Services (CMS), strongly opposing pre-dispute arbitration clauses in long-term care facility contracts.

“While arbitration can be used to resolve such disputes, the decision to do so should not be taken out of the hands of consumers prior to a conflict arising,” said Connecticut Attorney General George Jepsen. “The worst time for a vulnerable person or his or her family to decide the means to resolve potential future disputes is at the time of admission to a nursing home. It is simply unfair to ask someone in that difficult and delicate circumstance to enter a binding arbitration contract.”

No time to weaken provisions

The state officials say consumer protection provisions of these contracts should be strengthened, not weakened. They contend that an individual entering a nursing home or other long-term care facility, or family members acting on their behalf, are often making a healthcare choice under stressful circumstances, making it difficult to be rational or informed when deciding the resolution of future disputes.

"Arbitration can be a preferred method of resolving disputes, but that decision should not be taken out of the hands of consumers long before a conflict is ever contemplated," said Maryland Attorney General Brian Frosh. "The worst time to provide a waiver of patient rights like this is when you or a loved one are going through the difficult process of entering a long-term care facility."

In their written comments, the attorneys general argued that pre-dispute binding arbitration agreements in general can be unfair to consumers, jeopardizing one of the fundamental rights of Americans – the right to be heard and seek judicial redress for our claims.

Not voluntary

“This is especially true when consumers are making the difficult decisions regarding the long-term care of loved ones,” the attorneys general wrote. “These contractual provisions may be neither voluntary nor readily understandable for most consumers.”

Connecticut and Maryland joined California, Delaware, Hawaii, Illinois, Iowa, Maine, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia in submitting comments to CMS.

In recent years, courts have been chipping away at arbitration clauses in all sorts of consumer contracts, in particular banking and telecommunications.

In the case of nursing homes, the attorneys general say their position is consistent with that of the American Arbitration Association, which determined in 2003 that it would not administer healthcare arbitration between patients and service providers that related to medical services unless all parties agreed to arbitration after the dispute occurred.