Current Events in November 2015

Here's a number that might take a second or two to digest: in 2014 there were about 400 million successful cyber-attacks in the U.S.

That's more than the U.S. population, estimated to be nearly 319 million last year.

“That means everyone in the country may have been breached,” said Arun Vishwanath, an associate professor in the Department of Communication at the University at Buffalo and an expert in cyber deception. “Everyone. Including me and you.”

What is particularly dangerous is something he calls “spear phishing.” That's a tightly targeted, malware-carrying attack that sends links or attachments in what often appear to be genuine-looking email messages.

Spear phishing

These messages bear the imprint of a known or trusted organization. Maybe your bank, the electric company, or government agency.

When a recipient clicks on a link or attachment, he or she launches the malware – intrusive software that runs programs in the background that can cause all sorts of mischief.

A great deal of time and effort has gone into educating consumers about phishing threats, and why they shouldn't click on links in suspicious emails. Yet, consumers continue to do it.

Vishwanath says this training ignores users’ habits and instead focuses exclusively on how users process information. He's compiled a research report that examines these email habits and phishing outcomes.

“The findings point to a joint operation of habits and information processing, something that most social scientists have ignored,” Vishwanath said. “We can’t just focus on one aspect of that use, yet that’s what we’re doing and it explains why phishing is successful.”

Taking advantage of habits

Hackers have figured it out, Vishwanath says. Their phishing schemes work because the perpetrators take advantage of people who are habitual in the way they respond.

He says email systems, especially when accessed on mobile devices, are built around user habits.

"They encourage users to repeatedly check for messages, establishing routines that turn their devices into a casino game, with users opening emails like reckless gamblers habitually pulling the arms of slot machines without thinking of the long-term consequences," Vishwanath said.

In the meantime, spear phishing is successful 17% to 35% of the time, which is highly damaging when you consider how many phishing emails go out each day.

Example

Being able to recognize a phishing email is a first step to avoiding this scam. Microsoft has some advice and has dissected an example. But in the end, this might be enough.

Vishwanath says his research suggests that the training, which teaches people to recognize suspicious emails, is based on the presumption that the phishing problem can be accounted for by information processing.

It can't, he says.

There has been a lot of press over the past year about the advent of self-driving cars. While many drivers feel uneasy about giving up control of their vehicles, companies like Google have been performing extensive tests on them to see if they would be viable in the near future. But when that day comes, consumers might hope that they're not as slow as the Google vehicle that was pulled over yesterday for traveling too far under the speed limit.

Dealing with slow drivers is a constant source of ire for drivers around the world, so you can imagine how some of them must have felt when they were stuck behind one of Google's self-driving prototypes in Mountain View, CA., yesterday. Police in the area noticed traffic backing up behind the vehicle and noted that it was going 24 mph in a 35 mph zone.

Luckily, these same police officers were tech savvy enough recognize that the vehicle was a self-driving model, despite the human safety driver who was in the car at the time. They pulled the vehicle over to alleviate traffic and reportedly “made contact with the operators to learn more about how the car was choosing speeds along certain roadways and to educate the operators about impeding traffic,” according to a police blog post.

Later, via its Google+ page, the team responsible for the car project explained that prototype cars are set not to exceed 25 mph due to “safety reasons.”

'We want them to feel friendly and approachable, rather than zooming scarily through neighborhood streets. . . Like this officer, people sometimes flag us down when they want to know more about our project. . . After 1.2 million miles of autonomous driving (that's the human equivalent of 90 years of driving experience), we're proud to say we've never been ticketed!,” said Google.

Regardless of its clean record, there will be many drivers on the road hoping that they aren't stuck behind one of these prototypes again.  

Black Friday has always been considered the official launch of the holiday shopping season, but there are signs that it's changing.

The National Retail Federation’s Consumer Holiday Spending Survey shows 56.6% of those celebrating the holidays had already started shopping by early November, up from 54.4% last year and 16% from the 49% who had started by this time in 2008.

That's in line with a survey by BestBlackFriday.com, which found as many as 68% of shoppers predicted they would get started on their Christmas shopping before Thanksgiving.

Sea change

“Thanksgiving weekend shopping has evolved tremendously over the past few years and can no longer be seen as the ‘start’ of the holiday season, though there’s no question it’s still important to millions of holiday shoppers and retailers of all shapes and sizes,” said NRF President and CEO Matthew Shay. “There is a real sea change happening in retail when it comes to the how, when, where, and why of holiday shopping. Consumers today are looking for great prices and value-add promotions earlier than ever before, and retailers have answered these demands in several different ways already this holiday season.”

Phillip Dengler, a principal at BestBlackFriday.com, says retailers have begun to use the term “Black Friday sale” in pretty much every month of the year to describe even the most basic sales.

“While the term is not completely diluted yet, many shoppers feel as though they can get a great deal before Black Friday even begins,” Dengler told ConsumerAffairs. “For that reason, some people are now avoiding the day completely and finishing their shopping early in order to avoid the headaches that some associate with the Black Friday experience.”

Weak numbers

If consumers have already done some of their holiday shopping in October, that may not bode well for retailers this season. The Commerce Department reports October retail sales were up only slightly during the month, much less than expected. If those sales included some holiday shopping, it might say something about how much – or rather, how little – consumers plan to spend this year.

Despite the early spending on gifts, Dengler believes that the deals centered around Black Friday should draw out plenty of shoppers, both in stores and online.

“More doorbusters than ever will be available online this year, so more people will have the opportunity to shop online on Black Friday as opposed to camping out in front of their local Walmart or Best Buy,” he said. “While Thanksgiving is eating into Black Friday's total sales figures, we still consider it a part of Black Friday since many of the sales will overlap.”

Shay agrees, saying he believes many of the season’s best deals are yet to come, meaning there’s still plenty of shopping to be done over Thanksgiving weekend and in December, when shipping promotions begin to ramp up.  

A former Allegiant Air pilot says he was sued for putting his passengers' safety first. In a lawsuit, Jason Kinzer says he had 141 passengers and four crew members on board the day his airplane filled with acrid smoke and an engine caught fire.

The flight, Allegiant 864, had just left St. Petersburg, FL., June 8 headed for Hagerstown, MD., when Kinzer says the passenger compartment began filling with "acrid smoke." Kinzer declared an emergency and asked air traffic controllers for permission to return to St. Petersburg, Courthouse News Service reported.

At that point, a controller who had the airplane in view advised Kinzer that one of his engines appeared to be on fire.

As he put the plane on the ground, Kinzer was preparing to order an evacuation when, the suit alleges, a company official came on the radio without identifying himself and commanded him to hold off on the evacuation.

"Entirely unwarranted"

Kinzer did so anyway and, after landing safely, he and another crew member carried a paraplegic passenger off the airplane. Allegiant fired him on July 23, in a seven-sentence letter of termination that called the evacuation "entirely unwarranted."

In other words, Kinzer says in the lawsuit, Allegiant Air fired him for "not placing company profits above safety."

Allegiant, a low-cost carrier based in Nevada, was accused by airline unions in April of having a "disconcerting" number of flights that had to return, be diverted, or abort their takeoffs because of mechanical issues. 

In a letter to a Congressional committee, the union noted that top Allegiant executives once worked for ValuJet, another low-cost carrier and were in positions of responsibility when ValuJet Flight 592 crashed into the Florida Everglades "due to a cargo compartment fire caused by errors committed by contract maintenance employees."

The feds, working with Pennsylvania and Connecticut state officials, have tracked down a band of alleged tech support scammers who allegedly robbed consumers of more than $17 million by pretending to represent Microsoft, Apple, and other major tech companies.

“We’re pleased the court shut down these scammers, who defrauded consumers out of millions of dollars by preying on their lack of technical expertise,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “Our goal is now to get money back for the victims in this case, and keep the defendants out of the scam tech support business.”

The defendants allegedly used internet advertisements and popups that appeared to be from well-known technology companies to lure consumers into calling them. When consumers called, they were further misled into thinking their computers were riddled with viruses, malware, or security breaches, and were given a high-pressure sales pitch for tech support services that were unnecessary and, sometimes, harmful.

Call center

As alleged in the federal court complaint filed by the FTC and the attorneys general of Pennsylvania and Connecticut, consumers who responded to the phony ads were routed to a call center operated by the defendants, where telemarketers would frequently misrepresent that they were “a Microsoft agent,” “Google support,” or “work with AT&T,” among other affiliation claims.

The telemarketers would then convince consumers to give them remote access to their computers, navigate to harmless portions of the computer, such as the Windows Event Viewer, and mislead consumers into thinking their computer was infected with viruses and malware.

Consumers would then be fooled into signing up for technical support plans and repair services often costing hundreds and sometimes thousands of dollars. In some cases, the alleged technical support consisted of deleting harmless files, but in other cases, defendants “technicians” would make changes that could potentially harm the performance of the computer, according to the complaint.

A preliminary injunction requires the defendants to shut down their operations and freezes their assets. 

The defendants in the case are Click4Support, LLC; iSourceUSA LLC, also doing business as Click4Support and UBERTECHSUPPORT; Innovazion, Inc., also doing business as Click4Support Tech Services; Spanning Source LLC, also doing business as Click4Support; Bruce Bartolotta, also known as Bruce Bart; George Saab; Chetan Bhikhubhai Patel; and Niraj Patel.

Obesity in America is becoming more common, especially among the aging population.

In its latest Data Brief, the Centers for Disease Control and Prevention (CDC) estimated 36.5% of U.S. adults were obese during the latest monitoring period, 2011-2014.

While recent concern has focused on obesity among children, the CDC report found the people most likely to be obese are middle-aged adults aged 40–59 and older adults aged 60 or over.

Obesity is a more serious condition than merely being overweight. The difference is determined by the body mass index (BMI), which is a formula based on a person's height and weight.

Having a BMI between 25 and 30 is considered overweight. Having a BMI of 30 or more is considered obese.

In its report, the CDC found the prevalence of obesity was higher in women than in men. Among all youth, no difference was seen by sex.

Encouraging sign

And among youth, the obesity rate has leveled off at 17%. Risa Lavizzo-Mourey, MD, president and CEO of the Robert Wood Johnson Foundation, says that's the report's one sign of progress.

“The obesity rate is declining for the youngest children, and has held steady for all children over the last two measurement periods,” Lavizzo-Mourney said. This reinforces our confidence that America's children are moving toward a healthier weight, and that bodes well for the long term health of our nation.”

At the same time, Lavizzo-Mourney said the fact that the adult obesity rate is rising is a cause of concern. She notes that rates are highest among Hispanic and black teenagers and adults. And women, she says, have overtaken men in the obese category.

Areas of action

“We will continue to address these inequities, and the many barriers to growing up and living a healthy life, Lavizzo-Mourney said. “Nutritious, affordable foods are out of reach for too many families, young people still see far too many ads for sugar-laden snack foods and beverages, and too few of our communities provide adequate safe, accessible spaces for kids to be active.

The Robert Wood Johnson Foundation is spending an additional $500 million in 2015 on anti-obesity programs.

The CDC says the prevalence of obesity among adults is still higher than the Healthy People 2020 goal of 30.5%. Although the overall prevalence of childhood obesity is higher than the Healthy People 2020 goal of 14.5%, the CDC says there are signs of progress among the youngest children in the survey, those aged 2–5 years.

Wholesale prices -- officially known as the Producer Price Index (PPI) for final demand -- dropped a seasonally adjusted 0.4% in October following a decline of 0.5% in September.

According to figures released by the Department of Labor (DOL), the PPI is down 1.6% for the 12 months ending in October, a record 12-month decline for the index, which was introduced in November 2009.

In October, 70 percent of the decrease in the final demand index can be traced to prices for final demand services, which moved down 0.3 percent. The index for final demand goods declined 0.4 percent.

Final demand services

The cost of final demand services fell 0.3% percent in October after declining 0.4% a month earlier. Over 70% of the decline last month can be traced to margins for final demand trade services, which dropped 0.7% percent. The index for final demand services excluding trade, transportation and warehousing slipped 0.1%. In contrast, prices for final demand transportation and warehousing services inched up 0.1%.

Within the services sector, margins for fuels and lubricants retailing, were down 15.8% followed by apparel, jewelry, footwear, and accessories retailing. Loan services (partial); portfolio management; wireless telecommunication services; and health, beauty, and optical goods retailing also declined.

On the other hand, prices for truck transportation of freight rose 0.3%, with food retailing and deposit services (partial) also increasing.

Final demand goods

The index for final demand goods moved dipped 0.4% in October, the fourth consecutive decrease. Leading the decline, the index for final demand goods less foods and energy fell 0.3%. Prices for final demand foods decreased 0.8%.. The index for final demand energy was unchanged.

Over one-third of the October decline in the final demand goods index is attributable to prices for light motor trucks, which were down 1.8%. Prices for chicken eggs, iron and steel scrap, beef and veal, boxed meat, and electric power also moved lower. In contrast, gasoline prices rose 3.8%, with pharmaceutical preparations and corn also advancing.

The complete report is available on the DOL website

Retail sales

Heading into the all-important holiday shopping season, the report on retail sales was something less than impressive.

The Commerce Department reports sales in October, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were up a tiny 0.1% or $447.3 billion. On a year-over-year basis, sales rose 1.7%.

Advancers and decliners

Strengths, what there were of them, were found in miscellaneous store retailers (+1.8%), nonstore retailers (+1.4%), building equipment and supplies (+0.9%), health and personal care stores (+0.7%), and food service & drinking places (+0.5%).

Providing a drag were the 0.9% drop in gasoline sales, auto and parts sales (- 0.5%), electronics and appliance store sales (-0.4%), and food & beverage store sales (-0.3%).

Stripping out auto, gasoline station, and building material & supplies sales, core retail sales were up 0.3% in October after being flat the month before.

Stifel Fixed Income Chief Economist Lindsey Piegza thinks the may be worse to come. "Without stronger retail spending numbers," she says, "there is going to be a lot less cheer this holiday season."

The full October retail sales report can be found on the Commerce Department website.

If you traveled by air during September, there's a good chance you got to your destination when you were supposed to.

The Department of Transportation’s (DOT) Air Travel Consumer Report shows airlines posted an on-time arrival rate of 86.5% in September, up from both the 81.1% on-time rate a year earlier and the 80.3 percent reported in August 2015.

The September on-time rate was the fourth highest of the 249 months with comparable records, the second highest for any September, and above the September average of 82.73% in the previous 20 years. September 2001 was not included in the averages.

That's not the end of the good news. The carriers reported airlines reported no tarmac delays of more than three hours on domestic flights during September and no tarmac delays of more than four hours on international flights.

Additional information

The consumer report also includes data on consumer complaints, cancellations, chronically delayed flights, and the causes of flight delays filed with the Department’s Bureau of Transportation Statistics (BTS) by the reporting carriers.

In addition, there are statistics on mishandled baggage reports filed by consumers with the carriers, passengers denied confirmed space (oversales/bumping), and aviation service complaints filed regarding a range of issues such as flight problems, baggage, reservation and ticketing, refunds, consumer service, disability, and discrimination.

Incidents involving the loss, death, or injury of animals traveling by air are also covered.

The complete report can be found on the DOT website.

STIHL Inc., of Virginia Beach, Va., is recalling about 156,000 gas-powered edgers, trimmer/brushcutters, pole pruners and KombiMotors in the U.S. and Canada.

The gasoline tank vent can become dislodged due to incorrect factory installation and cause fuel to leak, posing a fire hazard.

The company has received 319 reports of the fuel tank vents coming loose and fuel leaking. No fires or injuries have been reported.

This recall involves STIHL edgers with model number FC 56 C, trimmer/brushcutters with model numbers FS 40 C, FS 50 C, FS 56 C and FS 56 RC, pole pruners with model number HT 56 C and KombiMotors with model number KM 56 RC. The model number is located on the starter cover at the rear of the engine. The engine size is about 28 cc.

The products are gray and orange with “STIHL” on the engine cover. The serial number range for all of the recalled units is 501830112 through 504083576. The serial number is located on the label on the bottom of the engine.

The equipment, manufactured in the U.S., was sold at authorized STIHL dealers nationwide from November 2014, through September 2015, for between $200 and $400.

Consumers should immediately stop using the recalled products and return them to an authorized STIHL dealer for a free inspection and repair.

Consumers may contact STIHL at 800-610-6677 between 8 a.m. and 8 p.m. (ET) Monday through Friday, by email at stihlrecall@stihl.us or online at http://www.stihlusa.com/information/recalls/gasoline-tank-vent/.

In the U.S., the Environmental Protection Agency (EPA) accused Volkswagen of violating the law when it was discovered that software in some diesel cars manipulated emissions in order to fool testing equipment.

The scandal quickly spread to Europe, where Volkswagen is based and where it sells more cars. European counterparts to the EPA began their own investigations, hauling VW executives before investigating panels.

But it's possible the software is not illegal in Europe.

The software at issue is what governs VW's TDI emissions. It is able to detect when the vehicle is attached to a testing device and regulates the emissions output to meet official guidelines. Once the test is over, it readjusts emissions that may be up to 40 times above legal levels in the U.S.

In a letter to a member of the British Parliament, Paul Willis, Managing Director of Volkswagen Group UK, first raised the possibility that VW hadn't actually broken a law when it deployed software to get around strict emissions levels.

Not problematic

“I would now like to share with you that we have just received confirmation that the KBA does not regard the use of this technology in the EU as problematic and thus, being in line with the current legislation,” wrote in a letter to Member of Parliament Louise Ellman.

Meanwhile, the New York Times quotes an EU spokeswoman as saying the EU had no formal view on whether the vehicles sold in the U.S. had a defeat device in the EU legal sense. She said the probe of cars sold in Europe is ongoing.

What's it mean for Volkswagon? Potentially billions of dollars. The company likely faces economic penalties in the U.S., but should European authorities conclude the software is legal, the German automaker could potentially reap huge savings in fines and legal fees.

Greater economic impact

According to the Times, most of the 11 million cars that have the software defeat device are in Europe, with only 500,000 or so in the U.S. It could turn out that VW's biggest economic hit will come in reduced demand for its cars, because of the adverse publicity.

Last month Kelley Blue Book reported that the average auction price for Volkswagen diesel models dropped by nearly 16% since the news broke of the emissions crisis. The brand's gasoline-powered vehicles weren't spared, with their auction prices declining an average 2.9%.

"According to Kelley Blue Book Field Analysts, some auctions are still holding off on selling the affected Volkswagen inventory," Tim Fleming, analyst for Kelley Blue Book said last month. "While Volkswagen diesel auction prices are in decline, we could see larger fluctuations depending on how this inventory is handled."

With all of the controversy surrounding Volkswagen and their emissions scandals, the company has decided to extend a period of amnesty to all of its employees so that they can come forward with any information about cheating within the organization.

While airing out any other potential problems could help VW move forward accordingly, employees better act quickly – the amnesty period will only be extended until the end of the month. Employees that come forward before November 30 will be able to keep their jobs and avoid damage claims from the company.

Amnesty period

Executives have made it clear that they want all available information on further cheating as quickly as possible. “In this process, every single day counts. . . We are counting on your cooperation and knowledge as our company's employees to get to the bottom of the diesel and CO2 issue,” said Herbert Diess, head of the VW brand, in a letter posted on the company's corporate intranet.

Eligible staff members will be protected by the amnesty because of provisions included in the company's collective bargaining agreement. This doesn't mean that there won't be some repercussions to coming forward though. Depending on the nature of the information, employees may be transferred or given other job responsibilities in the future.

Manipulating data

The amnesty offer comes after employees reportedly told the company about the carbon emissions issue that was exposed last week. Employees admitted that they had tampered with emissions data in order to reach the goal set by former VW CEO Martin Winterkorn.

Engineers at the company manipulated tire pressure readings and mixed diesel fuel with motor oil to make vehicles appear to use less gas. These practices stretched from 2013 until the spring of this year.

“Employees have indicated in an internal investigation that there were irregularities in ascertaining fuel consumption data,” said a VW spokesman. “How this happened is subject to ongoing proceedings.”

The number of workers filing for first-time state unemployment benefits is holding its own.

The Department of Labor (DOL) reports there were 276,000 initial jobless claims on a seasonally adjusted basis in the week ending November 7 -- the same as the previous week.

On the other hand, there was upward movement in the four-week moving average.

That category, which is less volatile then the weekly tally and considered a more accurate gauge of the labor market, was up by 5,000 from the previous week to 267,750.

The complete report is available on the DOL website.

Job openings and labor turnover

In a separate report, DOL's Bureau of Labor Statistics (BLS) says the number of job openings was little changed on the last business day of September at 5.5 million. There was also little change in hires and separations.

Job openings

The job openings rate for the month was 3.7%, while the number of job openings was little changed for total private and government positions.

The number of job openings (not seasonally adjusted) increased over the 12 months ending in September for total nonfarm and total private and was little changed for government.

Job openings rose over the year for several industries with the largest increases occurring in professional and business services (+311,000), health care and social assistance (+191,000), and retail trade (+184,000). Vacancies decreased over the year in mining and logging (-16,000).

The number of openings was little changed for the month in all four regions, but increased over the year: South (+283,000), West (+259,000), Midwest (+208,000), and Northeast (+102,000).

Hires

The number of hires was 5.0 million in September -- little changed from August, with the hires rate at s 3.5%. The number of hires was little changed for total private and government in September.

There was little change in the number of hires in all industries and regions over the month, while over the 12 months ending in September, the number of hires (not seasonally adjusted) was little changed for total nonfarm, total private, and government.

At the industry level, hires decreased in educational services (-74,000), finance and insurance (-43,000), and mining and logging (-13,000).

There was little change in the number of hires in all four regions over the year.

Separations

Total separations includes quits, layoffs and discharges, and other separations, and is referred to as turnover. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer.

Other separations includes separations due to retirement, death, and disability, as well as transfers to other locations of the same firm.

There were 4.8 million total separations in September, little changed from August. The total separations rate was 3.4%. The number of total separations was little changed for total private and government. In September, total separations were little changed in all industries and regions.

Quits

There were 2.7 million quits in September, about the same as in August. The number of quits has held between 2.7 million and 2.8 million for the past 13 months after increasing steadily since the end of the recession. The quits rate was unchanged in September at 1.9% for the sixth consecutive month.

The number of quits was little changed for total private and government over the month. Quits were little changed in all industries and regions over the month. The number of quits (not seasonally adjusted) was little changed over the 12 months ending in September for total nonfarm and total private but decreased for government (-31,000).

Quits increased over the year in accommodation and food services (+66,000) and durable goods manufacturing (+22,000). Quits decreased over the year in state and local government (-31,000) and finance and insurance (-24,000). Quits were little changed in all four regions.

Layoffs and discharges

There were 1.7 million layoffs and discharges in September, little changed from August. The rate held steady at 1.2%. The number of layoffs and discharges was little changed over the month for total private and government, and were little changed in all four regions. Seasonally adjusted estimates of layoffs and discharges are not available for individual industries.

The number of layoffs and discharges (not seasonally adjusted) was little changed over the 12 months ending in September for total nonfarm, total private, and government. The number of layoffs and discharges rose over the year in other services (+54,000). Layoffs and discharges decreased over the year in educational services (-17,000) and federal government (-7,000). Layoffs and discharges were little changed in all four regions over the year.

Other separations

In September, there were 387,000 other separations for total nonfarm, little changed from August. Over the month, the number of other separations was little changed for total private at 315,000 and increased for government to 72,000. Seasonally adjusted estimates of other separations are not available for individual industries or regions.

Over the 12 months ending in September, the number of other separations (not seasonally adjusted) was little changed for total nonfarm, total private, and government. Other separations increased over the year in federal government (+4,000). The number of other separations decreased in finance and insurance (-15,000) and in information (-5,000). Other separations were little changed in all four regions over the year.

Net change in employment

Large numbers of hires and separations occur every month throughout the business cycle. Net employment change results from the relationship between hires and separations. When the number of hires exceeds the number of separations, employment rises, even if the hires level is steady or declining.

Conversely, when the number of hires is less than the number of separations, employment declines, even if the hires level is steady or rising.

Over the 12 months ending in September 2015, hires totaled 60.9 million and separations totaled 58.2 million, yielding a net employment gain of 2.7 million. These totals include workers who may have been hired and separated more than once during the year.

The full report is available on the BLS website.

If you were born before July 1, 1945, the clock is ticking. Well, that way too, but we're talking about Uncle Sam's clock here.

In this case, you generally are required by the Internal Revenue Service (IRS) to receive payments from your individual retirement arrangement (IRA) and workplace retirement plan by Dec. 31.

Known as required minimum distributions (RMDs), these payments normally must be made by the end of 2015. However, if you are a first-year recipients of these payments -- you reached age 70½ during 2015 -- you can wait until as late as April 1, 2016 to receive your first RMDs.

To clarify, anyone born after June 30, 1944, and before July 1, 1945 is eligible for this special rule. Though payments made to these taxpayers in early 2016 can be counted toward their 2015 RMD, they are still taxable in 2016.

Who else is affected?

The required distribution rules apply to owners of traditional, Simplified Employee Pension (SEP) and Savings Incentive Match Plans for Employees (SIMPLE) IRAs but not Roth IRAs while the original owner is alive. They also apply to participants in various workplace retirement plans, including 401(k), 403(b), and 457(b) plans.

An IRA trustee must either report the amount of the RMD to the IRA owner or offer to calculate it for the owner. Often, the trustee shows the RMD amount on Form 5498 in Box 12b. For a 2015 RMD, this amount is on the 2014 Form 5498 normally issued to the owner during January 2015.

The special April 1 deadline applies only to the RMD for the first year. For all subsequent years, the RMD must be made by Dec. 31. For example, a taxpayer who turned 70½ in 2014 (born after June 30, 1943, and before July 1, 1944) and received the first RMD (for 2014) on April 1, 2015, must still receive a second RMD (for 2015) by Dec. 31, 2015.

Calculating your RMD

The RMD for 2015 is based on the taxpayer’s life expectancy on Dec. 31, 2015, and the account balance on Dec. 31, 2014. The trustee reports the year-end account value to the IRA owner on Form 5498 in Box 5. Use the online worksheets on IRS.gov or find worksheets and life expectancy tables to make this computation in the Appendices to Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).

For most taxpayers, the RMD is based on Table III (Uniform Lifetime Table) in IRS Publication 590-B. So for a taxpayer who turned 72 in 2015, the required distribution would be based on a life expectancy of 25.6 years. A separate table, Table II, applies to a taxpayer whose spouse is more than 10 years younger and is the taxpayer’s only beneficiary.

Though the RMD rules are mandatory for all owners of traditional, SEP and SIMPLE IRAs and participants in workplace retirement plans, some people in workplace plans can wait longer to receive their RMDs. Usually, employees who are still working can, if their plan allows, wait until April 1 of the year after they retire to start receiving these distributions. See Tax on Excess Accumulations in Publication 575. Employees of public schools and certain tax-exempt organizations with 403(b) plan accruals before 1987 should check with their employer, plan administrator or provider to see how to treat these accruals.

Inaffit, LLC is recalling all lots of Natureal light green and dark green capsules.

The product contains sibutramine, an appetite suppressant that was withdrawn from the U.S. market in October 2010. Sibutramine is known to increase blood pressure and/or pulse rate in some patients substantially, and may present a significant risk for patients with a history of coronary artery disease, congestive heart failure, arrhythmias or stroke.

This undeclared ingredient makes this product an unapproved new drug for which safety and efficacy have not been established.

The product is used as a weight loss dietary supplement and is packaged in clear bottle with light green and dark green capsules.

The recalled product includes lots Manufactured 3/12/2015, Expiration Date 3/11/2017. It was distributed from the Natureal office, 14707 South Dixie Highway, Suite 213, Palmetto Bay, FL 33176 and nationwide to consumers via http://www.natu-real.com/.

Inaffit is notifying its customers by email and is arranging for return.

Customers who are currently in possession of recalled the recalled product should stop using it and discard it.

Consumers with questions regarding this recall can contact Inaffit, LLC by email at returns@naturealfls.com.  

Zenobia Company of Yonkers, N.Y., is recalling Ground Flax Seed Meal.

The product may be contaminated with Salmonella

No illnesses have been reported to date.

The recalled product, labeled “Ground Flax Seed Meal,” is packaged in 4-oz. and 16-oz. resealable plastic bags, or 50 pounds bulk, with UPC #'s 00575004, 00575016, 00575111

It was distributed nationwide through online mail order from 6/15/15 - 11/4/15.

Customers who purchased the recalled product should discard it and contact the company for a full refund.

Consumers with questions may contact the company at 1-877-890-5244, Monday - Friday, 9am - 5pm, (EST).

Just like Nevada, the state of New York has found daily fantasy sports (DFS) to be illegal gambling and ordered a halt within the state.

But unlike Nevada, with its much smaller population of players, New York makes up a significant source of players, pumping money into major DFS enterprises like FanDuel and Draft Kings.

In letters to the two companies, obtained by ESPN, New York Attorney General Eric Schneiderman said his office's review of DraftKings' and FanDuels' games found them to constitute illegal gambling.

Disappointed

“We are very disappointed that New York Attorney General Eric Schneiderman took such hasty action today, particularly since he did not take any time to understand our business or why daily fantasy sports are clearly a game of skill,” DraftKings said in a statement. “We strongly disagree with the reasoning in his opinion and will examine and vigorously pursue all legal options available to ensure our over half a million customers in New York State can continue to play the fantasy sports games they love.”

DFS was determined to be a “game of skill” under a 2006 law regulating gambling, shielding it from regulation under the law. But Schneiderman says the facts suggest otherwise – people wager things of value on outcomes they cannot control. That, he says, is gambling.

A month ago, the Nevada gaming commission 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.”

Compromise?

In it's reaction to Scneiderman's latest action, DraftKings said other regulators, including the Federal Trade Commission (FTC), have taken what it calls “a reasoned, informed and measured approach to the daily fantasy sports business.”

“We hope this trend continues along with due consideration for over 56 million sports fans across the country who enjoy playing fantasy sports,” the statement said. “We remain committed to working with all relevant authorities to ensure that our industry operates in a manner that is transparent and fair for all consumers.”

That seems to suggest the way may be open to reclassify DFS so that governments can regulate it, and perhaps get a piece of the action. With its association with major media and sports leagues, DFS generates billions of dollars -- enough for everyone, it would seem.

Four members of the U.S. Senate, all Democrats, are backing legislation that would further limit the amount of revenue for-profit schools can get from federal aid.

The lawmakers – Jack Reed of Rhode Island, Dick Durbin of Illinois, Richard Blumenthal of Connecticut, and Elizabeth Warren of Massachusetts, have introduced the Protecting Our Students and Taxpayers (POST) Act, that would prohibit for-profit colleges and universities from receiving more than 85% of their revenue from the federal government and change the calculation of federal revenue to include all federal funds.

Current law allows for-profit schools to receive up to 90% of revenue from federal programs, but the lawmakers say it contains a very large loophole, allowing these schools to receive a lot more.

Loophole

“Money from the new Post 9/11 GI Bill and from Department of Defense tuition assistance programs isn’t counted, which leaves hundreds of millions of taxpayers’ dollars virtually unregulated,” Durbin said. “Consequently, these schools aggressively target veterans and servicemembers who too often don’t receive the quality of education they deserve. We can’t let this invitation to exploit our veterans continue.”

At issue is what students pay to attend for-profit schools and what they get out of it. After 2010, the U.S. government put rules in place to hold colleges accountable for students who couldn't get jobs after graduation. The high level of student loan default rates was another concern.

In July, the Obama administration enacted rules to choke off the flow of federal dollars to schools whose graduates don't do well in the job market. It was intended to save taxpayer dollars and protect students from running up debt for a degree doing them little good.

Protecting veterans

Warren said POST builds on that effort, while extending needed protections for military veterans.

“Too many servicemembers and veterans have been targeted by predatory for-profit colleges, and our men and women in uniform deserve better,” said Warren. “The POST Act will tighten the rules and help protect veterans by closing the loophole that permits for-profit schools to prey on our servicemembers.”

Earlier this year for-profit Corinthian College closed its doors after the U.S. government sued it for predatory lending.

The four senators point out another for-profit school, ITT Tech, is under investigation by at least 18 state attorneys general and the U.S. Department of Justice and is being sued by the New Mexico Attorney General, the Consumer Financial Protection Bureau, and the Securities and Exchange Commission.

The lawmakers say for-profit institutions of higher education enroll about 10% of all college students, but take in 20% of the Department of Education’s federal student aid funds and account for 40% of student loan defaults.  

Like a number of states, Ohio passed a law in 2005 to rein in payday loans. Since then, the Center for Responsible Lending (CRL) reports payday lenders have used a loophole to keep trapping consumers in debt.

In a new report, the CRL claims that payday lenders in Ohio are collecting more in fees than before the law limiting what they can charge.

“Rather than operating under the intended regulatory structures, payday and car title lenders exploit Ohio’s Second Mortgage Loan Act and Ohio’s Credit Services Organization (CSO) Act to continue their debt trap lending, with no limits on charges,” the authors write. “Under the Second Mortgage Loan Act, these lenders make loans directly; while those operating under the CSO Act pose as brokers for loans originated by thirdparty lenders, such as Ohio-based NCP Finance, and still carry triple-digit APRs.”

Healthier than ever

Instead of the new law forcing payday lenders out of business, the CRL report says they are healthier than ever. It counts 836 storefronts in Ohio that make payday or car title loans, the majority of which offer both.

It found that payday and car title loans collected more than $502 million in loan fees from Ohioans annually, twice as much as what payday loans charged in 2005.

The 2005 law passed by the Ohio legislature capped interest rates at 28% APR. While that might sound high, payday lenders say they can't be profitable at that rate. Their loan amounts are small and only for a two week term. However, more often than not the borrower can't repay the loan after two weeks and must take out a new loan with a new set of fees.

“Ever since 2008, predatory payday lenders have been subverting Ohioans’ mandate to cap interest rates, continuing to charge triple-digit interest rates,” the authors write. “Some lenders charge higher rates than the triple-digit rates allowed under the state’s original payday loan law.”

Note of frustration

In a note of frustration, the report said Ohio’s legislature and regulators have the authority to enforce the voter-mandated 28% rate cap, but over the last seven years have not done so.

The solution, the report concludes, lies at the national level, with the Consumer Financial Protection Bureau (CFPB). While the CFPB cannot cap rates, it can establish regulations to make sure lenders look at a borrower’s ability to repay the loan without re-borrowing or defaulting on other obligations.

Remove those borrowers, the CRL contends, and there will be few customers taking out payday or car title loans – in Ohio and everywhere else.