Current Events in June 2016

Asian Jade Customs Brokerage of Springfield Gardens, N.Y., is recalling approximately 762 pounds of imported sausage products that were not presented at the U.S. point of entry for inspection.

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

The following heat-treated, shelf-stable, ready-to-eat dried pork sausage items, imported on June 3, 2016, are being recalled:

• 5.29-lb. cases containing 4.23-oz. plastic wrapped packages of “SOKOLOW PORK KABANOS/ KABANOSY FRANCUSKLE.”

The recalled products bear the Polish establishment number PL 30090201 WE, and lists the use by date “18/08/2016” and lot numbers “61391 61411 13,” “61391 61451 29,” or “61391 61411 22” on the back of the package.

The products were produced between May 18 and 20, 2016, in Poland and shipped to a distributor and retail locations in New Jersey and New York.

What to do

Customers who purchased these products should not consume them, but throw them away or return them to the place of purchase.

Consumers with questions about the recall may contact Cathy Chiu Lam of Asian Jade Customs Brokerage at (718) 995-5030.

The Hershey Company is recalling three products sold under the SoFit brand.

The products may be contaminated with Listeria monocytogenes.

There have been no reports of illness to date.

The following products are being recalled:

• SoFit Protein Plus Sunflower Seeds Sea Salt with the following date codes: 72H, 72J, 79P, 82F, 82G, 82K, 82L
• SoFit Protein Plus Pumpkin Seeds Sesame Garlic with the following date codes: 73B, 73C, 81P, 81R
• SoFit Protein Plus Almonds Jalapeno Garlic with the following date codes: 72R, 73A, 79R, 82C, 82D

What to do

Customers who purchased any of the recalled products should not consume them, but destroy them.

Consumers with questions may contact Hershey at 1-800-468-1714 or online at www.askhershey.com.

BMW of North America is recalling 21,493 model year 2011 X5 xDrive 35i, xDrive50i, X5 M, X6 xDrive35i, X6 xDrive50i, and X6 M vehicles manufactured April 5, 2010, to November 20, 2010; 2011 X5 xDrive35d diesel vehicles manufactured April 7, 2010, to November 20, 2010; and 2011 X6 Active Hybrid vehicles manufactured April 15, 2010, to November 17, 2010.

The recalled vehicles have a front driveshaft universal joint that may not seal out water and debris from getting in and damaging the joint, which could lead to its failure.

If the front universal joint fails, the front wheels would not be driven, affecting vehicle traction. Additionally, continued driving of the vehicle with a broken front universal joint may damage other components. Either condition may increase the risk of a crash.

What to do

BMW will notify owners, and dealers will replace the front driveshaft, free of charge. The recall is expected to begin on July 1, 2016.

Owners may contact BMW customer service at 1-800-525-7417.

A group of public interest groups, while generally applauding proposed federal rules to rein in payday lending, say the proposed rules should not be watered down.

After analyzing the Consumer Financial Protection Bureau's (CFPB) proposed rule to limit payday and car title lending, the groups have issued a detailed critique, saying there are loopholes that would allow some lenders to continue making harmful loans with business as usual.

The groups include the Center for Responsible Lending, the National Consumer Law Center, U.S. PIRG, and others.

Common sense principal

The groups say they are in favor of what they call the CFPB's “common sense principle” that lenders must determine whether a potential borrower has the ability to pay back the loan before agreeing to lend any money.

The purpose is to make sure that once the loan becomes due in two weeks, the borrower doesn't have to take another loan to pay it back.

The groups say that significant change would do three things:

• It will make sure loans are affordable at the outset and do not set borrowers up for failure.
• It will protect consumers in states without payday lending from industry efforts to roll back important interest rate caps.
• It will create a level playing field for payday lenders, online lenders, and banks alike.

Problem with exemptions

So far, so good the groups say. But they have a problem with some exemptions that have been proposed to this standard. They say those exemptions would allow payday and car title lenders to continue making predatory loans that trap consumers in a a cycle of debt.

The groups also cite new CFPB data that they say shows borrowers who get payday loans without proving they have the ability to repay default at high rates. In some cases, they say the default rates were as high as 40%.

“A 40% failure rate for products such as cars, electronics, or others would not be considered safe, and the same is true here,” the groups said in a statement emailed to ConsumerAffairs. “And the default rate is only the tip of the iceberg, leaving out loans that trigger overdraft fees and difficulty meeting other expenses.”

The groups also worry that exemptions approved by a federal agency would undermine the efforts of several states to crack down on predatory lending. There are 14 states, as well as the District of Columbia, where a cap on interest makes payday lending unprofitable.

In short, the groups say there would be no exemptions to the “ability to repay” standard in the final rule. The public can comment on the proposed rule before September 14.

In the same week the U.S. Labor Department released its May Consumer Price Index (CPI), showing a slight rise in prices, Adobe issued its Digital Price Index (DPI) showing prices are continuing to fall.

Can both be right? They can, because it appears that in this economy there are always some things that cost people more, while some things cost less. Depending on what it is you are buying, you could encounter inflation or deflation.

Adobe's DPI tracks billions of actual online transactions to gather its data. The government's CPI is based on consumer surveys that are designed to approximate sales in each product category.

Adobe says its DPI reveals deflation – prices that are going down, not up – in most of the tracked consumer goods. In May, Adobe found prices for appliances, computers, flights, furniture, sporting goods, TVs, and toys went down in price by as little as 2.8% or as much as 19.7%.

The government's official statistics, the CPI, reported year-over-year deflation between 0.3% and 16.1% for these categories. It also found airfares went up 0.4%.

Tablet prices are falling

Consumer electronics prices went down 1.4%, led by a 3.7% price decline for tablets. Sporting goods prices fell by 0.4%. But it you travel a lot, you likely encountered higher prices. Air travel cost 4.1% more in May than in April and hotel rooms cost 0.7% more.

Adobe looks at other digital data to draw conclusions on other aspects of the economy, and its picture is somewhat different than the one drawn by the government.

For example, the DPI suggests more people are looking for jobs. It draws that conclusion from counting visits to employment search sites. The latest analysis shows an increase from April to May in those job site visits and points to potentially higher unemployment rates than reported.

Housing weakness

It also measures the housing market. By tracking two billion visits to real estate marketplace sites in the last year, the DPI found that online searches for housing purchases and rentals have slowed.

The DPI also tracks price movements within categories, breaking it down between high priced items and low priced items. In May, Adobe said most consumer categories saw the biggest price declines among lower priced models.

“This tremendous amount of data reveals further deflation, higher unemployment, and more weakness in the housing market than current reports suggest,” said Adobe VP Mickey Mericle.

That's not necessarily good news. While consumers like low prices, economists worry that deflation shows a lack of demand in the economy, which can signal the onset of a recession.

Just in time for the official start of summer, gasoline prices are headed lower again. After steadily rising since March, the national average of self-serve regular appears to have peaked.

The AAA Fuel Gauge Survey reports that the national average price is $2.33 a gallon, down about four cents from a week ago. Prices are falling even faster in parts of the Midwest.

In fact, the dramatic price declines in Michigan and Ohio may be mostly responsible for pulling the national average price lower. The statewide average price of gasoline in Ohio is down 18 cents in the last seven days. It's 14 cents lower in Michigan.

And prices in the region may go even lower. Over the weekend, Gasbuddy senior petroleum analyst Patrick DeHaaan Tweeted advice to motorists not to fill their tanks just yet.

“ALERT: Motorists in Great Lakes should AVOID filling their tanks completely as #gasprices in MI/IN/OH/WI should fall 10-30c over next 2 wks,” DeHaan wrote.

In truth, prices in the Midwest had raced far ahead of the national average after there were reports of refinery issues in Michigan. Whatever problems there were got quickly resolved, so supply issues did not materialize.

However, AAA notes that before they began their dramatic decline, gasoline prices in the Midwest were rivaling averages typically experienced by drivers on the West Coast.

Oil prices may have peaked, for now

Also putting downward pressure on prices at the pump is a recent decline in crude oil prices. After nudging past $50 a barrel, oil prices were down about 2% last week.

Demand has risen steadily and the huge glut of both oil and gasoline has gotten smaller, but supplies are still plentiful and U.S. production, which has been suspended amid falling prices, can quickly resume.

Gasoline prices are following recent seasonal patterns. After rising at the end of the winter, as refineries perform maintenance and switch over to summer gasoline blends, prices usually begin falling again as the Independence Day holiday approaches. That appears to be what is happening this year as well.

According to the latest from AAA, the cheapest gasoline in the nation can be found in South Carolina, where the statewide average is $2.03 a gallon. The most expensive fuel is still found in California, where the statewide average is $2.85 a gallon.

Post Consumer Brands is recalling a limited quantity of its Great Grains Protein Blend – Honey, Oats & Seeds cereal.

The products may be contaminated with Listeria monocytogenes.

No illnesses have been reported to date

The following items, identified by a “Best when used by” code printed on the top of the box, are being recalled:

The recalled products were sold through retail stores nationwide.

What to do

Customers should not consume these products, but return them to the place of purchase for a refund, or discarded.

Consumers with questions may contact the company at 1-800-431-7678, Monday through Friday, 9:00AM – 5:00 PM (ET) or online at www.postconsumerbrands.com/greatgrains. 

Creative Snacks of Greensboro, N.C., is expanding its earlier recall of specific lot codes of bulk and packaged sunflower seed products.

The products may be contaminated with Listeria monocytogenes

No illnesses have been reported to date.

The following products, distributed to retailers nationwide and sold in a variety of formats including plastic rigid containers, small re-sealable bags and in bulk, are being recalled:

Best before dates can be found on bottom lower right corner of rigid containers and the back lower right corner of re-sealable snack bags.

What to do

Customers who purchased the recalled products should not consume them. But return them to the place of purchase for a full refund.

Consumers with questions may contact the company at 336-668-4151 Monday through Friday, 8:00 am to 5:00 pm (EST).

Southeast Toyota Distributors (SET) is recalling 2,520 model year 2016 Toyota Camry and Highlander, 2015-2016 Toyota Tundra, Scion FR-S, and tC vehicles.

The Load Carrying Capacity Modification Label may not reflect the correct added weight of the installed accessories. As a result, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard number 110, "Tire Selection and Rims for Passenger Cars."

An incorrect label may lead an owner to overload the vehicle, increasing the risk of a crash.

What to do

SET will notify owners, and provide a corrected label for placement over the inaccurate label, free of charge. The recall will begin on July 14, 2016.

Owners may contact SET customer service at 1-866-405-4226.

NoGii is recalling its Nuts About Berries Paleo Bars.

The products may be contaminated with Listeria monocytogenes

The company says it has received no reports of illness to date.

The recalled product may have been sold as a single 1.4-oz. (42-g) bar UPC # 856513002259 or in a pack of 9 UPC #856513002273 nationwide through retail stores and numerous online websites. The lot number B.B 03APR17 F3 3375 is located on the back side of the package flap above the nutritional facts.

What to do

Customers who purchased this product should not eat it, but return it to the store where purchased for an exchange or full refund.

Consumers may can contact NoGii at 704-995-4541 between 9 am and 5 pm (EST) for by emailing the company at info@nogii.com

General Motors is recalling 18,780 model year 2015-2016 Chevrolet Sonic and Trax, and 2013-2015 Spark vehicles equipped with a Bring Your Own Media radio.

The radios may fail to provide an audible warning chime when the driver fails to fasten the seatbelt or leaves the key in the ignition. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) numbers 208 "Occupant Crash Protection" and 114 "Theft Protection."

Without audible indicators, the driver may not fasten the seatbelt, increasing the risk of injury during a crash.

What to do

GM will notify owners, and dealers will update the radio software, free of charge. The manufacturer has not yet provided a notification schedule.

Owners may contact Chevrolet customer service at 1-800-222-1020. GM's number for this recall is 45340.

Bounce USA of Bend, Ore., is recalling Bounce Apple Cinnamon Protein Punch Energy Balls (newly named Apple Cinnamon Protein Energy Balls).

The products may be contaminated with Listeria monocytogenes.

The company says there are no reports of illnesses to date.

The following products, distributed nationwide through retail stores and on-line through Amazon.com between November 4, 2015, and June 6, 2016, are being recalled:. No other Bounce products are affected:

• Bounce 1.48 oz. (42g) Apple Cinnamon Protein Punch Energy Balls, Product UPC Codes are 852949003723 (individual packs) and 852949003730 (12-unit boxes)  Best Before Dates 04SEP16 and 12NOV16
• Bounce 42g Apple Cinnamon Protein Energy Balls Best Before Dates: 23 DEC16, 10 JAN17, 22 FEB17, 31MAR17

Product UPC codes are 852949003723 (individual packs) and 852949003730 (12-unit boxes).

What to do

Customers who purchased the recalled products should not consume them, but dispose of them.

Consumers with questions may contact the company at 855-441-8966 Monday-Friday, 9am-5pm (PST) or by email at feedbackusa@bouncelifestyle.com.

Two weeks before our cruise to Australia and New Zealand, my husband realized we forgot to purchase travel insurance. We had booked through a new travel agent and she had not reminded us. We kept our fingers crossed we would not need to cancel and were relieved to arrive safely in New Zealand.

On the third day of our cruise, a fellow traveler shared that he was frantically packing to leave the ship. On their way to breakfast that morning his wife missed a step, fell, and broke her hip. She would be in a hospital in Tauranga, New Zealand for at least one week. Belatedly we realized we were not safe; we could have a mishap at any time during the trip and all we had was our medical insurance.

We were lucky and so was a friend. She purchased travel insurance for the very first time prior to a vacation in India. She got sick; the hotel called a doctor who accompanied her to the hospital for a CT scan which revealed a life-threatening intestinal blockage. The hospital was in such bad condition my friend chose to fly home to seek emergency surgery.

Her travel insurance paid her medical bills and trip interruption, but would not reimburse the change in airfare. The fine print of the policy stated they would only cover medivac transportation.

Should you buy travel insurance?

Travel agents, tour companies, and cruise-line agents all sell insurance and they will suggest it. Travel insurance is a billion-dollar industry and travel agents and other tour companies get a commission for selling policies. Here are some things to consider:

No matter what you are booking, get a copy of the cancellation policy and read it carefully.  Ask questions, ensuring that you fully understand the restrictions.

Do you already have insurance? Check to see if your health, auto, or life insurance or homeowner’s policy gives you coverage. Credit cards are another source of protection. Review and document all your actual coverage.

Evaluate the airfare and the restrictions. Some will allow you to cancel and re-book for a small fee or even refund your miles if you are using your frequent flyer program. If you choose a nonrefundable airfare, accept the risks.  

If booking a hotel, check to see how far in advance you can cancel and whether there is a penalty.

When booking a total package, for example -- a guided tour or a river cruise, consider cancellation policies carefully. The trips can be expensive and depending on the cancellation and emergency, you may risk losing a lot of money.

If purchasing travel insurance, consider building in extra days for departure and return; schedules may change and you want to make sure the coverage is in effect for your total trip.

How to purchase insurance

Evaluate all the risk factors when considering travel insurance, including pre-existing conditions. Feel free to get a quote from your travel agent or tour provider and then do some homework.  

The website www.travel-insurance-review.toptenreviews.com compares travel insurance carriers for you. Another site, InsureMyTrip.com, provides coverage comparisons based on your trip specifics for over 20 major carriers. You can then choose a carrier and speak directly to a sales agent. With information in hand, you are in a position to make an informed decision.

Traveling these days is loaded with risk. Whether you are willing to forfeit your deposits and payments may well determine whether travel insurance is right for you.

Philadelphia has become the first major city to impose a tax on beverages, a measure aimed at raising revenue as much as it is at resolving health issues.

The council voted 13-4 to impose a 1.5 cents per ounce tax on any sweetened beverage, including diet sodas using no-calorie artificial sweeteners, according to Philly.com. That means a diet drink with no calories would be taxed but a container of milk or 50% fruit juice, which contain calories but no added sweetener, would not be taxed.

The tax also excludes alcoholic beverages, which have their own set of taxes.

The American Beverage Association fought the proposed ordinance and said it unfairly singles out beverages, including those that don't contain calories.

“But most importantly, it is against the law, the association said in a statement. “So we will side with the majority of the people of Philadelphia who oppose this tax and take legal action to stop it.”

$91 million in revenue

Philadelphia's mayor projects the tax will raise about $91 million per year in revenue, which would be used to fund a number of anti-poverty and education programs. The tax goes into effect January 1.

The American Beverage Association said it believes it will prevail in court, and in the court of public opinion.

“The fact remains that these taxes are discriminatory and highly unpopular - not only with Philadelphians, but with all Americans,” the association said. “Similar tax proposals have been rejected 43 times across the country in the past eight years, including twice in Philadelphia.”

Other cities

It may not have passed a tax, but the San Francisco City Council passed an ordinance requiring warnings on sugary beverages last month. The warning states that “drinking beverages with added sugar contributes to obesity, diabetes, and tooth decay.”

Former New York Mayor Michael Bloomberg famously imposed a ban on the sale of super-size soft drinks in 2012, only to have a judge overturn his edict a year later.

According to the judge, the regulations were "fraught with arbitrary and capricious consequences," partly because they would have barred restaurants, food carts, delis, theaters and stadiums from selling sugary drinks in containers larger than 16 ounces while supermarkets and convenience stores would not have been affected.