Current Events in November 2015

Unless you inherited the family homestead, there is probably a monthly cost to putting a roof over your head. You either pay rent to a landlord or pay a mortgage to a bank.

But which is “cheaper,” and which makes the most sense for you? As you might expect, there are a lot of variables involved.

Once upon a time it was a ready assumption that buying was a better option. You built equity each month as the value of the home rose.

But then the housing market collapsed and millions of homeowners were trapped in homes that were suddenly worth less than what the owner paid. In the immediate aftermath of the financial crisis, it was extremely hard to get a mortgage, so more people rented.

Advantages not immediately apparent

That made homes look very affordable while rents quickly escalated. Today, home prices have risen, but rents have also continued to climb. So figuring the advantages of owning over renting, and vice versa, aren't immediately apparent.

Enter Zillow, the online real estate marketplace, that has unveiled a new rent-vs-buy-calculator. The calculator is set up to show you how many years it will take before the cost of buying equals the cost of renting - the breakeven horizon.

Time is a key factor. The longer you stay in a home, the more the equation tilts toward buying. If you stay in your home past the breakeven horizon, Zillow says you should consider buying. If you'll move sooner, renting might be a better option.

Over an extended period of time, you might have added home repair expenses by owning that you wouldn't have by renting. But your monthly payment will be fairly stable, with a small portion of the payment going toward equity each month.

In most cases, you can expect your monthly rent to increase each year – sometimes by a lot. The National Association of Realtors recently warned that rents in many areas are increasing far beyond household income.

Calculator's results

We used the calculator to determine whether it was better to buy or rent in suburban Richmond, Va., an area where homes have appreciated in line with the national average. The calculator determined that after two years, the total cost of homeownership – down payment, mortgage, taxes, and insurance – for a $287,000 home would be $114,636.

The total cost to rent something comparable would be $48,211, leaving you $66,425 ahead, including the money you didn't have to spend on a down payment. After two years, your purchased home will have $95,164 in equity, If you rented, and invested what you would have spent on a down payment, earning a return of 6%, you would have made around $6,823 over two years.

The calculator's conclusion? Looking at gross costs, equity and investment potential, it's better for you to buy than rent, if you plan to live in your home more than two years and five months.

Gluten-free diets are recommended for people with celiac disease, a condition that makes it hard for them to digest the protein found in many grains.

Truthfully, there aren't that many consumers who have that condition. Only an estimated 1% of the population suffers from celiac disease and another 4% might have a form of wheat allergy.

Despite that small market, there has been a proliferation in recent years of gluten-free food products. That's because a growing number of consumers have decided they should avoid the grain protein too.

According to the Institute of Food Technologists (IFT), consumers looking for gluten-free foods in their grocery store would have been hard pressed to find much. The few products that were on the market were probably dry, bland, and badly textured—overall, not very appetizing.

Improving the taste

But IFT says it's a different ball game now. Kelly Hensel, senior digital editor of Food Technology magazine, writes that food manufacturers have embraced the new demand for gluten-free food and have attempted to turn out products that look, feel – and most importantly – taste better.

Without gluten to hold the food product together, manufacturers are using rice flour, potato flour and teff to form the primary structure of gluten-free goods, especially baked goods. Gums, such as xanthan and cellulose, also act as binders to hold the baked goods together. Proteins like egg, soy, dairy, or pulse are important in adding structure.

Gluten is also useful in preserving the shelf-life of food. To fulfill that function, food companies are using enzymes and mold inhibitors, which have proved effective as anti-staling ingredients to improve shelf-life.

Surging sales

Hensel writes that the U.S. gluten-free food market reached sales of $8.8 billion in 2014, an increase of 63% from 2012.

The Celiac Foundation is slightly perplexed at the sudden enthusiasm for a gluten-free diet. It notes that the gluten-free diet “appeals to about 30% of American adults” but is also “widely misunderstood.” The foundation says there are nine things you need to know before starting a gluten-free diet. Number one on the list?

“Some people need to ditch gluten, others just want to. But for most people, it’s not necessary.”

But the people who have to avoid gluten for health reasons can probably thank all those people who have voluntarily gone gluten-free. The huge demand for these products undoubtedly spurred manufacturers' recent efforts to improve the gluten-free experience.

A non-profit group has filed lawsuits against e-cigarette manufacturers, claiming they failed to warn consumers about two cancer-causing chemicals and the health effects of nicotine.

The Center for Environmental Health (CEH) said it purchased e-cigarettes, e-liquids, and other vaping products from major retailers including RiteAid and 7-Eleven between February and October 2015 and found that 90% contained formaldehyde or acetaldehyde or both.

A test on one e-cigarette found the level of formaldehyde was more than 470 times higher than the California safety standard.

Testing for formaldehyde and acetaldehyde was conducted by an independent lab accredited by the American Association for Laboratory Accreditation. The two chemicals are known to cause cancer and are also linked to genetic damage, birth defects, and reduced fertility, the lawsuits argue. Under California’s Prop 65 consumer protection law, companies must warn consumers when their products expose users to chemicals that can cause cancer and/or birth defects.

Those named in the lawsuits include RJ Reynolds (Vuse brand), Fontem/Imperial Tobacco (blu brand), and NJOY.

In all, the nonprofit has launched legal actions against more than 60 companies for failing to warn consumers about exposure from e-cigarettes to nicotine and/or one or both of the two cancer-causing chemicals, formaldehyde and acetaldehyde, as required by California law.

Teen usage growing

The organization charged that teen use of e-cigarettes is skyrocketing: among 8th and 10th graders, twice as many say they use e-cigarettes as compared to those who smoke traditional cigarettes, with 17% of high school seniors nationally saying they smoke e-cigarettes.

“The tobacco industry is banned from targeting teens in cigarette ads, but they and the rest of the e-cigarette industry use all of the banned tactics in marketing e-cigarettes,” said Michael Green, Executive Director of CEH. “Parents should know that vaping presents real risks to young people. It’s long past time for this industry to end its predatory and deceptive marketing.”

In February, CEH sued 19 e-cigarette companies for failing to warn consumers about the reproductive health threats from nicotine in their products. In one settlement reached in those cases, the e-cigarette company Sapphire Vapor agreed to legally binding restrictions on sales and marketing to teens and prohibited the use of unverified health claims.

Online lender, Integrity Advance, LLC, and its CEO, James R. Carnes, have run afoul of the Consumer Financial Protection Bureau (CFPB).

According to the agency, the company’s contracts did not disclose the costs consumers would pay under the default terms of the contracts. The CFPB also accuses the company of unfairly using remotely created checks to debit consumers’ bank accounts even after the consumers revoked authorization for automatic withdrawals.

The bureau has filed an administrative lawsuit seeking redress for harmed consumers, as well as a civil money penalty and injunctive relief.

From May 2008 through December 2012, the Delaware-based online lender offered loans ranging from $100 to $1,000, and consumers typically applied for the loans by entering their personal information into a lead generator website.

Upfront information missing

Under the default terms of Integrity Advance’s contracts, the loans would roll over four times -- causing additional charges to accrue with each rollover -- before the company applied any of the payments to the principal amounts. However, the costs on the disclosures were based on the assumption that the loans would not roll over and would instead be repaid in full by the first payment.

Integrity Advance never informed consumers of the total costs of their loans if those loans were rolled over, even though the contracts were set up to roll over automatically. Under the default terms of the contracts, consumers would end up paying finance charges more than double the amount originally borrowed: $765 in finance charges for a typical $300 loan.

The unlawful practices alleged by the CFPB include:

• Hiding the total cost of loans: Consumers were given contracts with disclosures based on repaying the loan in a single payment, even though the default terms of the contract called for multiple rollovers and additional finance charges. For example, under Integrity Advance’s default payment schedule, a consumer borrowing $300 would ultimately pay $765 in finance charges -- $675 more than the $90 finance charge disclosed in Integrity Advance’s contract.
• Requiring repayment by pre-authorized electronic funds transfers: Integrity Advance violated federal law by requiring consumers to agree to repay their loans via pre-authorized Automated Clearing House (ACH) payments. The Electronic Fund Transfer Act says repayment of loans cannot be conditioned on consumers’ pre-authorization of recurring electronic fund transfers.
• Continuing to debit borrowers’ accounts after consumers canceled the authorization: Integrity Advance’s contracts with consumers included a provision allowing the company to use remotely created checks if a consumer successfully canceled his or her authorization for ACH withdrawals. The provision was hidden in the loan agreement, and the company used it to take consumers’ funds when consumers believed they did not owe money to Integrity Advance.

Congress can't agree on much, but it seems to agree that being delinquent in paying your income tax -- or being behind in wading through the paperwork -- is grounds for revoking your passport.

This might not sound too bad to most people, but it sounds awful to the 7 million or so Americans living abroad. They need their passport almost daily to attend to chores we take for granted at home. 

They're also likely to have trouble receiving notices from the Internal Revenue Service because of unreliable mail delivery in much of the world and differences in address formats that often don't fit with the IRS' rigid addressing system.

But there it is, buried deep in the massive highway-funding bill, which contains all sorts of provisions that have little or nothing to do with highways. The measure, inserted by nominally tax-hating GOP solons,  has been approved by both the House and Senate and is now in the final moments of being considered by a conference committee before being given final approval.

$50,000 threshold

How much would you have to owe to lose your passport? The bill specifies $50,000 of unpaid taxes, penalties, and interest. That may sound like a lot, but it doesn't take long for penalties and interest to add up. Throw in a year or two of back taxes and any middle-income wage earner or independent contractor could be in trouble.

In the "gig economy," in fact, it's easier than ever to get into trouble with the IRS, since the taxpayer must try to make accurate quarterly payments based on estimated income. Anyone who's done this for more than a few years will tell you it's a recipe for big penalty and interest payments.

Politicians are fond of noting -- sometimes to their detriment -- that more than 40% of Americans pay no income tax at all so Congressional thinking is apparently that it's OK to make up for it by being more penurious with those who do.

The Wall Street Journal says the punitive measure would apply, in most cases, only to those who have been hit with a lien or a levy, something that is not that unusual for the self-employed or for high wage-earners who find themselves in a dispute with the IRS.

If passed in its present form, the measure would take effect Jan. 1 and would apply to existing tax debts. So enjoy the holidays. And pay your taxes. 

Each year it seems less necessary to battle the crowds in order to snag a deal on Black Friday. And data suggests consumers are growing a little weary of the annual in-store mayhem.

A survey by Ibotta, a retail cash-back app, found that 65% of consumers believe Black Friday is not as important as it once was. Nearly half said they expect the best deals to appear after Black Friday and others expect to do most of their shopping online.

It's a fact that more and more holiday shopping is done from a PC or smartphone. But will you miss any spectacular deals if you decided to do all of your Black Friday shopping online?

Where the deals are the same

Phil Dengler, principal at BestBlackFriday.com, spends a lot of time comparing and cataloging Black Friday deals. Each year he sees continued movement toward parity between online and brick-and-mortar bargains.

We asked him if there are places where we can get the same in-store deals without leaving the house.

“Sam's Club has pretty much all of its top doorbuster electronics available online with free shipping, including the PS4 Uncharted Bundle, Xbox Gears of War Bundle, a Vizio 58-inch HDTV, the iPad Air 2 and many other popular items,” Dengler told ConsumerAffairs.

As you might expect, he says Dell has all of its deals online, and the prices are the same as, if not better, than stores that are selling their products in traditional brick and mortar locations.

“For example, Dell's Xbox One bundle is available online only and is actually the best overall Xbox One deal in our opinion,” Dengler said. “They also have a variety of laptops and HDTVs at comparable prices to most other stores.”

Amazon and eBay – two online only stores – also will compete with in-store deals. Dengler says Amazon has the best overall price for the highly popular 32-inch HDTV. eBay has a great deal on the 16GB iPad Air 2 that is comparable to any in-store offer.

Where you'll have to brave the crowds

Where, then, will you have to brave the crowds to get the best deals? Dengler says Walmart, Best Buy, Target, and Kohl's are still only selling some of their very top items in-stores.

“If you shop only online, you will miss out on those particular deals, but you should be able to make up the difference when it's all said and done,” he said.

And what you might lose in savings, you might gain in sanity. Research from SOASTA finds 73% of U.S. consumers who do any online holiday shopping credit online and mobile shopping with helping to keep their holiday spirit intact and prevent them from feeling jaded and frustrated this holiday season.

SOASTA CEO Tom Lounibos says the stakes couldn't be higher this year for online retailers, who he says need to be ready to deliver “flawless” web and mobile performance on Thanksgiving Day and beyond for the expected crush of shoppers who have decided to skip the mall this year.

Toyota Motor Engineering & Manufacturing is recalling 30,812 model year 2013-2015 Avalon and Avalon Hybrid vehicles manufactured October 19, 2012 to October 27, 2015; and 2013-2015 Lexus ES350 and ES300h vehicles manufactured June 18, 2012 to July 6, 2015.

The vehicles are equipped with a Pre-Collision System (PCS) as optional equipment that may unexpectedly activate and apply the brakes when the radar detects a steel joint or plate in the roadway as an object.

Unexpected braking increases the risk of a crash.

Remedy parts for a permanent fix for this issue are not yet available. Beginning November 16, 2015, Toyota sent owners an interim notification and dealers will temporarily disable the PCS.

When the improved PCS components are available for the permanent remedy, owners will be mailed a second notification. These repairs will be performed free of charge.

Owners may contact Toyota at 1-888-270-9371. Toyota's numbers for this campaign are F1V and F2E.

Fit Firm and Fabulous is recalling Ultimate Herbal Slimcap capsules.

The product contains sibutramine, which is not listed on the label. It makes Ultimate Herbal Slimcap an unapproved drug for which safety and efficacy have not been established.

Sibutramine is known to substantially increase blood pressure and/or pulse rate in some patients and may present a significant risk for patients with a history of coronary artery disease, congestive heart failure, arrhythmias or stroke.

The company says it has not received any reports of adverse events related to this recall.

The product, a dietary supplement marketed for weight loss, is packaged in 30-count bottles, labeled Part 1 of 3, UPC 5 42423 25422 1. The recalled product includes lots 05/02/2015 to 05/01/2017, and was distributed Nationwide via the website.

The firm has notified its distributors and customers by telephone and has arranged for return or destroy of all recalled products.

Customers who have the recalled product should stop using and discard it.

Consumers with questions may contact Fit Firm and Fabulous by e-mail at customerservice@fitfirmandfabulous.com Monday through Friday from 9 am – 5 pm (EST).  

Hyundai Motor America is recalling 304,900 model year 2011-2012 Sonatas manufactured December 11, 2009 to June 30, 2011.

The brake pedal stopper pad can deteriorate allowing the stop lamp switch plunger to remain extended when the brake pedal is released.

If the brake light switch plunger does not retract as it should when the brake pedal is not being pressed, the brake lights may stay illuminated preventing accurate communication to drivers following behind that the vehicle ahead of them is slowing or stopping. Additionally, if the brake switch plunger is not retracted, then the transmission can be shifted out of PARK without depressing the brake pedal. Either condition increases the risk of a crash.

Hyundai will notify owners, and dealers will replace the brake pedal stopper pad with an improved part, free of charge. The recall is expected to begin on January 11, 2016.

Owners may contact Hyundai customer service at 1-855-671-3059. Hyundai's number for this recall is 136.

The Federal Trade Commission routinely holds companies responsible for data breaches that expose consumers' private data to intruders. But the commission's recent loss in the case of LabMD raises questions about its ability to prevail in other consumer cybersecurity cases.

The agency had sought to hold the medical testing lab responsible for a data breach that exposed the records of 9,000 patients. But LabMD fought back, refusing to sign a consent order and arguing that there was no proof any consumer had suffered any actual harm as a result of the breach.

Late last week, FTC Chief Administrative Law Judge Michael Chappell agreed and dismissed the commission’s complaint.

"FTC spent millions of taxpayer dollars to pursue its baseless case against LabMD, an innovative and successful provider of cancer diagnostics," said Daniel Epstein of Cause of Action Institute, which defended LabMD. "Although FTC’s ostensible justification for this boondoggle was 'data security,' it produced no evidence that even a single patient was harmed by LabMD’s alleged inadequacies."

Jessica Rich, director of the FTC’s Bureau of Consumer Protection, said the agency is considering an appeal. “Commission staff is disappointed in the ruling issued by the administrative law judge in this case," she said. 

The judge's ruling was a pyrrhic victory for LabMD, which went out of business in 2014, at least partly because of the long struggle with the FTC, according to former CEO Michael Daugherty.

“Yeah we won, but what did we win?  We’re dead,” he said, according to a Wall Street Journal report.  The experience turned Daugherty into a crusader against what he considers government abuse. He wrote a book, "The Devil Inside the Beltway," later made into a TV series.  

Supposed whistleblower

The FTC's case was based on information it received from Tiversa, a for-profit company that provides data security services to clients. Tiversa had found a 1,718-page document on the LabMD servers containing patient data and had then tried to sell its security services to LabMD.

When LabMD declined to pay up, Tiversa reported it to the FTC, claiming LabMD had mishandled sensitive patient data. But Judge Chappell, in a lengthy decision, said the FTC had not proven that allegation and that there was inadequate evidence that any patients had been harmed by the potential data exposure.

In fact, the judge said, there was no evidence that anyone other than Tiversa had accessed the data. He said the FTC had not "identified even one consumer that suffered any harm" as a result of inadequate LabMD security.

The judge said it was problematic for the FTC to rely on a for-profit company that acted as a whistleblower only after its sales overtures were rejected and said that Tiversa CEO Robert Boback was "not a credible witness."

“At best, Complaint Counsel has proven the 'possibility' of harm, but not any 'probability' or likelihood of harm." Judge Chappell wrote.

"Facts never mattered"

Cause of Action's Epstein said the "facts never mattered to the FTC" and said the "purpose of this case was to intimidate other businesses that might consider standing up for their rights, and to make LabMD pay for speaking out against the government."

For its part, Tiversa said in a statement that it had acted "appropriately and legally."

It's hard to watch an hour of network television without seeing at least one commercial for a prescription medication.

The images on the screen may show a happy, energetic individual or couple, while the voice over describes some very scary potential side-effects. But some consumers are often left to wonder – why am I being shown this ad when a doctor has to prescribe this medication for me? I can't just go to the store and buy it.

Exactly, says the American Medical Association (AMA).

Physicians at the AMA's Interim Meeting this week voted to recommend a ban on direct-to-consumer advertising of presciption medication. The doctors say consumers bombarded with these ads start pressing their doctors to prescribe it, and all too often the doctor gives in.

No coincidence

It's no coincidence, the AMA says, that these drug ads have proliferated at the time prescription drug prices have skyrocketed.

“Today’s vote in support of an advertising ban reflects concerns among physicians about the negative impact of commercially-driven promotions, and the role that marketing costs play in fueling escalating drug prices,” said AMA Board Chair-elect Patrice A. Harris, M.D., M.A. “Direct-to-consumer advertising also inflates demand for new and more expensive drugs, even when these drugs may not be appropriate.”

The AMA cites data from the market research firm Kantar Media, showing ad dollars spent by pharmaceutical companies have increased by 30% over two years, and now total $4.5 billion.

NIH not convinced

Although a number of consumer groups agree with the new AMA policy, a report by the National Institutes of Health (NIH) is far from clear-cut. While acknowledging the explosive growth in drug advertising, NIH says research suggests these ads are both “beneficial and detrimental” to public health.

But the rest of the world has concluded these ads have little benefit. Besides the U.S., New Zealand is the only other country in the world that allows direct-to-consumer prescription drug ads.

The physicians attending the AMA meeting also voted for a new AMA policy, convening a physician task force and launching an advocacy campaign to promote prescription drug affordability by demanding choice and competition in the pharmaceutical industry and greater transparency in prescription drug prices and costs.

“Physicians strive to provide the best possible care to their patients, but increases in drug prices can impact the ability of physicians to offer their patients the best drug treatments,” Harris said. “Patient care can be compromised and delayed when prescription drugs are unaffordable and subject to coverage limitations by the patient’s health plan. In a worst-case scenario, patients forego necessary treatments when drugs are too expensive.”

The new AMA policy also responds to growing concerns that consolidation in the pharmaceutical industry will lead to more anti-competitive behavior, with the potential to further drive up drug prices.

Chances are you'll receive one or more gift cards this holiday season. If you receive more than you need, or for stores that don't interest you, there are alternatives to letting them collect dust in a drawer.

Several companies in recent years have gotten into the business of buying unwanted gift cards and reselling them. It's convenient for consumers, but it comes at a price. Understandably, these companies take a cut.

Still, it may be better than letting a gift go to waste. Here are three places where you can redeem unwanted gift cards for cash.

Coinstar

You may be familiar with Coinstar as the operator of supermarket kiosks that take your loose change and give you cash in return. Not surprisingly, Coinstar has gotten into the gift card purchase business, placing bright yellow kiosks in many of the same locations as the change-redeeming kiosks.

How much of the value of your gift card can you get? It depends on a number of factors. But once you slide your card into the slot, Coinstar says it will make you an offer on the spot. If you accept the offer, you get your cash right at the store.

Coinstar says it accepts gift cards from more than 150 well-known stores and restaurants. It pays up to 85% of the card's current value, for cards with at least $20 still remaining.

To prevent fraud, the company says consumers redeeming gift cards will need to provide a phone number, driver’s license or state ID, credit card, and email address.

GiftCards.com

Some web-based businesses are also in the gift card repurchase game. At GiftCards.com, you enter the information about your card and find out how much of the value you can regain.

Like Coinstar, GiftCards.com looks at a number of factors to determine how much it will pay. If you strike a deal, you may receive payment through PayPal, Automated Clearing House (ACH), or check. Typically, the company says payments are processed within two business days.

CardCash.com

CardCash.com is another online company that will purchase unwanted gift cards. It has many of the same conditions and requirements as its competitors and pays using PayPal, ACH, or check. But it has among the more generous payouts in the industry – up to 92% of current value.

Chances are there could be lots of unwanted gift cards by the time January or February rolls around. A recent survey by the National Retail Federation found gift cards are still among the most popular holiday gifts, with 56% of consumers saying they plan to give at least one this year.  

The holiday car commercials have begun again, enticing consumers to think big when buying Christmas presents for that special someone.

And in fact, sales data confirms that new car sales usually rise late in the year as some generous consumers put an Audi or Lexus under the tree. Dealers usually come up with lot of end-of-the-year incentives and promotions to move cars off their lots.

Kelley Blue Book (KBB) has surveyed American showrooms and compiled a list of what it says are the best deals in November, taking into account sale price, lease terms, and financing

"New-car sales were strong in October, and a long list of attractive offers this month should continue to draw shoppers off the fence and into dealer showrooms," said Jack Nerad, executive editorial director and executive market analyst for Kelley Blue Book's KBB.com. “Our list of notable November deals includes a wide variety of vehicle types, ranging from practical hatchbacks to premium luxury models, along with several versatile SUVs."

November's best deals

And they aren't all the newest models. While the Lexus GS luxury sedan has been enhanced for the 2016 model year, Nerad says the 2015 model takes the top spot on KBB's list with an impressive lease offer. The 2015 Lexus can be leased for $1,999 down and $409 a month for 36 months.

Second on the list is the 2015 Nissan Leaf, with 0% financing for 60 months and $5,000 cash back. Third is the 2016 Acura ILX, which can be leased for $229 a month for 36 months with $2,499 due at signing.

The 2015 Hyundai Veloster is fourth, with a nice discount off its MSRP and $3,500 cash back. The 2015 Buick Encore is fifth, on a 24 month lease at $175 a month and $1,675 down.

The 2015 Volkwagen Tiguan is sixth on the list, with a 36 month lease for $179 a month and $2,499 down. The 2015 Infinity Q50 comes with a lease deal of $3,499 and $309 for 39 months.

Rounding out the top 10, the 2015 Hyundai Sonata with 0% financing; a lease of the 2015 Ford Flex for $219 a month; and the 2015 Dodge Dart, with $3000 cash back.

The unemployment line was a little shorter last week.

The Department of Labor (DOL) reports first-time applications for state unemployment benefits dropped by 5,000 in the week ending November 14 to a seasonally adjusted 271,000. The previous week's level was unrevised.

Economists at Briefing.com say this level suggests that nonfarm payrolls will likely show an increase in the neighborhood of 200,000 when the November employment report comes out next week.

The four-week moving average, which is not as volatile as the weekly calculation and is considered a more accurate gauge of the labor market, was up 3,000 to a seasonally adjusted 270,750 from the unrevised reading the week before.

The complete report is available on the DOL website

A day after a New York judge refused a bid by Fanduel and DraftKings to slap a temporary restraining order on New York Attorney General Eric Schneiderman, Schneiderman has gone to court against the two daily fantasy sports (DFS) enterprises.

Schneiderman is seeking a preliminary injunction against the two companies, which already face a cease and desist order the attorney general issued last week.

In the court filing, Schneiderman lays out his case that the two companies constitute illegal gambling under state law.

“Under New York law, a wager constitutes gambling when it depends on either a (1) 'future contingent event not under [the bettor’s] control or influence' or (2) 'contest of chance.' So-called Daily Fantasy Sports (“DFS”) wagers fit squarely in both these definitions,” Schneiderman wrote. “DFS is nothing more than a rebranding of sports betting. It is plainly illegal.”

Disputing the game of skill argument

Schneiderman went on to reject the two companies' argument that their games involve skill, not chance. He says chance plays just as much of a role, if not more, than it does in games like poker and blackjack.

“A few good players in a poker tournament may rise to the top based on their skill; but the game is still gambling,” Schneiderman declared. “So is DFS.”

Schneiderman goes on to charge both FanDuel and DraftKings are winking at the law, maintaining in public that they run games of skill, but privately evoking the profits of gambling to investors.

He says DraftKings has also embedded gambling keywords into the programming code for its website. Some of these keywords include “‘fantasy golf betting,’’ “weekly fantasy basketball betting,” ‘‘weekly fantasy hockey betting,” “weekly fantasy football betting,” “weekly fantasy college football betting,” “weekly fantasy college basketball betting,” “Fantasy College Football Betting,” “daily fantasy basketball betting,” and “Fantasy College Basketball Betting.” This increases the likelihood that search engines, like Google, will send users looking for gambling straight to the DraftKings site.

Nevada was first

New York is the second state to find that DFS amounts to gambling. In October, Nevada gaming officials reached the same conclusion.

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 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.”

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

The Nevada decision isn't nearly the problem for the two companies, however, that New York's action is. That's because a large percentage of players in both companies' games live in New York.

In light of the state attorney general's action, both companies have barred New Yorkers from playing until the matter runs its course in court, resulting in a significant drop in revenue.

More former Corinthian College students may be eligible for debt relief following an investigation by the U.S. Department of Education and California Attorney General Kamala Harris.

The investigation concluded that Corinthian's Wyotech and Everest programs misrepresented their placement rates, leading prospective students to overestimate their chances of getting lucrative jobs, encouraging them to take on large student debts that many are now unable to repay.

The findings from this investigation apply to Everest and Wyotech locations in California, as well as Everest University online programs based in Florida, and add to the existing findings concerning programs at Heald College, the agencies said in a joint news release.

The findings apply to Corinthian campuses that served approximately 85,000 Wyotech and Everest students. Earlier this year, the Education Department created an expedited debt relief process for Heald students who attended programs with misstated placement rates. The new findings will be referred to the administrator of the debt relief program.

Former Corinthian students can learn more about debt relief here. 

"Corinthian preyed on vulnerable students who are now buried under mountains of student debt," said Attorney General Harris. "Today's joint investigation findings will expand the pool of Corinthian students eligible for streamlined student loan relief options, helping them rebuild their lives and pursue a brighter future. I thank the Department of Education for joining my office to keep Corinthian accountable for their actions and providing debt relief to students who were misled."

Amazon.com is another retailer that isn't waiting for Black Friday to start its deals. The company says the deals start Friday, November 20 and will run for a solid eight days.

But Amazon isn't rolling out the deals all at once. It plans to add its specials every five minutes through Black Friday. There will be special deals Thanksgiving Day and Black Friday, what Amazon calls Deals of the Day – 10 on Thanksgiving Day and 10 on Black Friday.

“Customers can truly sit back and relax with their family and friends this holiday season knowing that they will be notified as soon as the products they’ve had their eye on are about to go on sale. . . Year after year, more and more customers shop for deals on Amazon from the comfort of their own home, and we continue to make that process even more convenient for them,” said Steve Shure, Vice President, Amazon Consumer Marketing. “And with App Only Deals, customers will have plenty of options when it comes to scoring great deals from Amazon.”

Spending migrates online

It's likely that more holiday shopping will move online this year. According to Adobe's shopping forecast, online holiday sales could surge 11%, hitting $83 billion dollars.

With so many people shopping for deals online, Phil Dengler, principal at BestBlackFriday.com, says it's critical for consumers to be aware of shipping terminology, lest savings be eroded by the cost of getting the purchase delivered.

“Buying a cheaper item online from a store that has a free shipping minimum can literally kill all of the savings because of shipping costs,” Dengler told ConsumerAffairs. “In order to simplify that information, we have put together a guide that will make the life of any online Black Friday shopper considerably easier and less stressful.”

Shipping guide

The guide shows that free shipping for holiday sales is fast becoming the norm, but not all retailers will pick up the tab for a small purchase. However, a growing number will, and consumers should look for “no minimum purchase required,” while being aware of spending minimums some retailers may impose.

According to the guide, Amazon requires a $35 minimum purchase for free shipping for non-Prime members. Target and Best Buy, however, have no minimum purchase requirements this holiday season.

While it doesn't really matter for large electronic orders – since the purchase is likely to be $100 or more – free shipping is a huge factor for small orders, especially when the savings aren't particularly large to begin with. It won't pay to save $5 on a $10 item if you end up spending $6.95 to have it delivered.

Ground-breaking for new homes fell in October to their lowest level in seven months.

Figures released jointly by the Census Bureau and the Department of Housing and Urban Development show housing starts plunged 11% last month to a seasonally adjusted annual rate of 1,060,000. The decline puts the construction rate 1.8% below the same time last year and the lowest since last March.

The news wasn't all bad though. October marked the seventh month in a row that starts were above 1 million -- the longest stretch in nearly eight years.

Single-family housing starts took a hit last month, falling 2.4% below the revised September figure of 740,000 -- to 722,000 units. The October rate for units in buildings with five units or more was 327,000, compared with 439,000 the month before.

Realtor.com Chief Economist Jonathan Smoke sees the latest numbers as a sign that the industry needs stronger growth.

“At our current pace of activity and taking into account loss of housing stock due to disaster and dilapidation, we're building new units at less than half the pace at which we are forming households," he noted, adding, "the housing shortage only worsens if this remains the picture. Tight supply of homes for sale and low vacancies will continue to be the norm, and along with that, higher rents and prices."

Building permits

Although construction was down in October, developers were making plans for the months ahead.

Building permits for privately-owned housing units were at a seasonally adjusted annual rate of 1,150,000 – up 4.1% from September and 2.7% higher than the same month last year.

Authorizations for single-family homes were up 2.4% from September at a rate of 711,000. Permits for of units in buildings with five units or more were at a rate of 405,000, a gain of 31,000 from the previous month.

The increase in permits in October is a promising sign, according to Smoke.

"Permits by definition lead starts, so the pace of permit activity slowing to a level lower than the pace of starts signals a declining market," he said. "The decline in starts and completions this month is the result of that scenario last month."

The complete report may be found on the Commerce Department website.