Current Events in October 2016

With direct deposit, ATMs everywhere, and the ability to deposit that birthday check from your grandmother with your mobile phone, do you really need to go to a bank? You know, one with an actual building, with people working in it?

Maybe not. A report by Business Insider notes that Citigroup, JPMorgan, and Bank of America have closed 389 branches since the third quarter of last year.

Many of the closings coincided with the aftermath of the 2008 financial crisis, but many others are a direct result of the transition to electronic – primarily mobile – banking.

Business Insider cites Bank of America's third quarter earnings report as showing a significant increase in mobile banking, which executives said benefits both consumers and shareholders.

The American Bankers Association (ABA) released a survey last month that showed most consumers use mobile banking at least once a month, and that 75% rate their bank's app as either “excellent” or “very good.”

Importance of a good app

Nessa Feddis, ABA’s senior vice president and deputy chief counsel for consumer protection and payments, says consumers increasingly are using mobile devices to manage everyday finances.

“Bank innovation has made it more convenient and safer than ever to do things like check your balance, deposit a check or make payments,” she said.

In the past, convenient branches and friendly services might have been key to getting and retaining customers. Today, Feddis says banks have to have user-friendly, secure apps to compete.

But there are exceptions to the trend. In a report issued in the last decade entitled “Digital Divide,” the Independent Community Bankers Association found a number of community banks were slow to adopt some aspects of electronic banking – notably online bill pay.

The report found many community bank customers were using online bill pay where it was available, but these same customers were also writing checks and using other traditional banking services.

“Supporting all of these payment and service delivery channels is costly for community banks,” the authors wrote. “As a result, many community banks are taking a pass on offering online bill payment, labeling it as an unnecessary loss-leader service.”

Big city - smalll town difference

The report found community banks in larger markets were much more likely than those in small towns to rely on online and mobile banking.

The larger questions is whether they will continue to operate branches in the same number. Banks in small towns will most likely be the last to shutter their brick-and-mortar locations.

But in a speech earlier this year, former Barclays CEO Anthony Jenkins predicted the industry as a whole would cut jobs and branches as much as 50% over the next 10 years.

Home prices continued their gains in August on both an annual and month-to-month basis.

According to the S&P CoreLogic Case-Shiller Indices, the National Home Price Index, which covers all nine U.S. census divisions, was up 5.3% from the same time a year ago.

The 10-City Composite showed a 4.3% annual gain, while the 20-City Composite reported a year-over-year advance of 5.1%.

Portland, Seattle, and Denver reported the highest year-over-year increases among the 20 cities over each of the last seven months. Portland posted an 11.7% year-over-year price increase, followed by Seattle at 11.4%, and Denver with an 8.8% increase.

Ten cities reported greater price increases in the year ending August 2016 than in the year ending July 2016.

Month-over-month

Before seasonal adjustment, the National Index was up 0.5% on a a month-over-month basis, with both the 10- and 20-City Composites posting a 0.4% increase.

The National Index recorded an advance of 0.6% after seasonal adjustment, while both the 10-City Composite and the 20-City Composite reported 0.2% month-over-month increases.

After seasonal adjustment, 14 cities saw prices rise, two cities were unchanged, and four cities posted declines.

This isn't the only encouraging housing news. David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices notes that, “Other housing data including sales of existing single family homes, measures of housing affordability, and permits for new construction also point to a reasonably healthy housing market.”

At the children's hospital at Vanderbilt University Medical Center in Nashville, Maryann Dotegoski underwent open fetal surgery, an extremely complicated and difficult operation, to try and repair her child's spina bifida while the baby was still in the womb.

The hospital website now proudly displays a picture online of the child, Emily, and her mother, who was only the hospital’s 19th patient to undergo the operation. Emily, now 12, has been photographed learning to walk, playing with friends, and enjoying the beach. Though Emily can walk on her own, she still uses a wheelchair at times. "Emily’s muscles will never be able to gain full strength and she tires easily," the hospital’s website explains.

The cause of spina bifida, a birth defect affecting a baby's spinal cord, are largely unknown. But a lawsuit filed on behalf of Maryann Dotegoski's daughter points to one likely culprit: the anti-epilepsy drug Depakote, produced by Illinois-based Abbott Laboratories, whom the family is suing. The company is not contesting that its drug poses a danger to pregnant women but argues that Dotegoski should have known about the risks in 2004 when she was pregnant.

"Much higher" risk of birth defects

Abbott Labs also argues that it is protected by the statute of limitations, though a federal judge disagrees.

On October 19, United States District Judge Nancy Rosenstengel dismissed a motion filed by the company to drop the claim against it based on the statute of limitations, saying in her opinion that "it is undisputed that the Illinois statute of limitation does not bar the current claim.” This is because Illinois laws allow minors to seek damages at any time and up to two years after they turn 18, allowing the complaint against Abbott to go forward for now.

The Food and Drug Administration now clearly states that the risk of birth defects in babies born to mothers who received valproate (the drug marketed as Depakote), is "much higher" than average, or 12.5 times worse. The agency's warning to healthcare professionals about prescribing Depokate to pregnant women dates back to 2009, but lawsuits filed by women across the country say they were not aware of the dangers the drug posed during the first trimester of their pregnancies.

In 2006, two years after Dotegoski’s pregnancy, valproate was reportedly the second-most prescribed epilepsy drug in the United States. Depakote is also approved to treat migraines and bipolar disorder. Off-label, Abbott has been aggressive in promoting it to treat conditions such as dementia, leading to a criminal investigation and the company reaching a $1.5 billion settlement with the FDA four years ago for misbranding its product.

In a separate lawsuit filed this year in St. Louis, eight different plaintiffs allege that Abbott Laboratories and competitor AbbieVie both knew about the risks valproate posed to unborn fetuses even before they began selling and marketing the drug.

Consolidation continues in the media and communications industries, but the latest proposed deal is getting some strong push-back.

Over the weekend, AT&T confirmed that it wants to buy Time Warner for more than $85 billion. It comes on the heels of Verizon's deal to buy Yahoo and AT&T's own purchase of DirecTV in 2015.

But Yahoo Finance reports the deal may have a tough time getting a green light from government regulators. It quotes analysts as saying both the Federal Communications Commission and Department of Justice are likely to put the deal under a microscope to determine how it will affect consumers.

Matt Wood, policy director at Free Press, says these kinds of deals are almost always better for the combined businesses than for their customers.

Time to grab your wallet

"Any time you hear media executives talking about synergies, throwing around the business-babble that always accompanies these rumors, you know it’s time to grab your wallet and hang on tight,” Wood said in an email to ConsumerAffairs. “Big mergers like this inevitably mean higher prices for real people, to pay down the money borrowed to finance these deals and compensate top executives.”

Wall Street, of course, was quick to celebrate the proposed deal, because reducing competition and combining resources is usually good for the bottom line. But Wood says the evidence is clear that it doesn't help consumers. He says AT&T's acquisition of DirecTV was followed by price hikes.

"It’s a good thing there’s a renewed interest among lawmakers and antitrust enforcers in addressing this merger-mania,” Wood said. “It’s also a good thing we have solid Net Neutrality rules on the books — even though companies like AT&T continue to test those rules in the market, threaten them in Congress, and challenge them in the courts.”

Bipartisan opposition

Opposition to the proposed deal also surfaced on the presidential campaign trail. Speaking in Pennsylvania, GOP Presidential nominee Donald Trump denounced the deal in unusually harsh terms, saying “deals like this destroy democracy.” If elected, Trump said his Justice Department would move to quash the merger.

On the other side of the aisle, Senator Al Franken (D-MN) took to Facebook over the weekend to express his reservations.

“I'm skeptical of huge media mergers because they can lead to higher costs, fewer choices, and even worse service for consumers,” Franken wrote in a post. “And regulators often agree, like when Comcast unsuccessfully tried to buy Time Warner Cable, a deal that I fiercely opposed.”

In the coming days, Franken said he will press for further details about the proposed deal and how consumers would be affected.

Buick has finally made it into Consumer Reports' "most reliable" brands, an honor it had been close to achieving for the last several years. It joins longtime leaders Lexus and Toyota on the podium.

Somewhere down below is the Honda Civic, which this year has been smacked with the "much-worse-than-average" reliability label because of problems with its power equipment and infotainment systems. It's particularly galling since the Civic was North American Car of the Year for 2016.

The findings were announced during a press conference before the Automotive Press Association in Detroit today.

Chevrolet ranks as the second-best domestic brand and is in 15th place overall among the 29 brands covered. 

Consumer Reports has been publishing brand reliability ratings since 2001 and U.S. brands have lagged behind Japanese and European imports nearly all of that time. 

“Buick’s achievement is commendable and sure to be a wake-up call to other manufacturers,” said Jake Fisher, Consumer Reports’ director of automotive testing. “One reason why the brand has been able to leapfrog others in the General Motors’ stable has been its limited vehicle lineup--with none of the pickups and truck-based SUVs that have negatively impacted Cadillac and Chevrolet.”     

Asian brands dominate   

All of the Asian nameplates scored among the top half of the 29 brands tested, accounting for seven of the top 10 spots. Lexus and Toyota continued their domination, finishing in first and second place for the fourth straight year. All nine Lexus models CR rated had better-than-average reliability, as would have Toyota, had it not been for the below average score of the redesigned 2016 Tacoma pickup truck.

Among the other Asian brands, Infiniti made the biggest gain, while Acura was up six spots and Nissan moved up two. All Mazda models remained above average except for the new CX-3 small SUV, which came in at average. Kia and Hyundai continue to surge up the rankings, coming in at five and seven this year. No Kia or Hyundai models scored below average.

Honda has continued with its erratic trajectory, making landfall at number 10 among all brands. Usually a top finisher known for reliability, the brand has been hurt by new introductions. In addition to the new Civic, the redesigned Pilot SUV was just average.

Infiniti continued its erratic ways, jumping 16 spots to number eight. The older QX50 SUV and Q70 sedan had top scores, but the newer QX60 SUV and Q50 sedan were below average. BMW also moved into the top 10, with the 5 Series, X5, and i3 improving to average.

Audi has had several years of upward progress, and it continues to rank in the top five. The new Q7 and the Q3 SUVs were very reliable. Other European brands continue their inconsistency.  Mercedes was one of the big movers, jumping four spots to number 17.

Volkswagen and Volvo tumbled. Aside from the Tiguan SUV, all other VW models had below average reliability. The redesigned XC90 led Volvo’s plunge to the bottom third ranking, with its touch-screen infotainment and climate systems being particularly problematic. 

Politicians and religious leaders often argue about when life begins, but there's little argument about when online life begins and it's often before birth. Excited parents begin posting anything and everything about their children, often starting with those grainy in-utero scans.

While online sharing can be good for parents, providing them support from friends and family, it can also have some very real consequences for children later in life, according to researchers who presented their findings at the American Academy of Pediatrics conference in San Francisco on Friday.

"The amount of information placed in the digital universe about our children in just a few short years is staggering," said Dr. Bahareh Keith, an assistant professor of pediatrics at the University of Florida College of Medicine. "Parents often consider how to best protect children while the child is using the internet. However, parents -- including myself, initially -- don't always consider how their own use of social media may affect their children's well-being."

"Responsible and thoughtful ..."

Keith said pediatricians should be advocates for increased awareness among parents to protect a child's online identity.

"We need to encourage responsible and thoughtful sharing," law professor Stacey Steinberg, JD, said. She said there is "a dearth of discussion on the topic that leaves even the most well-meaning parents with few resources to thoroughly appreciate the issue before pressing `share' on their digital devices."

Steinberg cautions that information shared can be stolen or repeatedly re-shared, unbeknownst to parents, potentially ending in the hands of pedophiles or identify thieves.

"Even more likely, the child might one day want to have some privacy and control over his or her digital identity," Steinberg said, noting that the first "children of social media" are just now entering adulthood, college, and the job market. "Untangling the parent's right to share his or her own story and the child's right to enter adulthood free to create his or her own digital footprint is a daunting task."

Previous research has shown that 92 percent of two-year-olds in the United States have an online presence, and about one-third make their first appearance on social media sites within their first 24 hours of life.

The researchers called for the proposal of public health-based, best-practice guidelines that include encouraging parents to familiarize themselves with the privacy policies of the sites they use, to post anonymously if they choose to share about their children's behavioral struggles, and to give their child "veto power" over online disclosures, including images, quotes, accomplishments, and challenges.

They also advise never to share pictures that show their children in any state of undress or share their child's actual location in a post.  

Student loan debt has been a growing concern over the last three years, as the outstanding loan total has surged past $1 trillion.

And make no mistake, there are plenty of young people who stay up at night worrying about how they are going to pay it back. There is also evidence it has kept young buyers out of the housing market.

But is it the biggest financial worry consumers have? Not by a long shot.

A new poll conducted for the National Foundation for Credit Counseling (NFCC) has found that credit cards are the biggest financial worry for consumers, and other concerns aren't even close.

When asked what financial issue caused them the most worry, 69% of consumers said credit cards. The second biggest worry concerned the inability to save for retirement or emergencies, mentioned by 13% of consumers. Student loan debt was third, at 10%.

Consumers have been racking up debt

The answers might not be all that surprising. Last month, personal finance site WalletHub reported that consumers racked up a record $34.4 billion in credit card debt in the second quarter of this year. It was the largest second quarter build-up since the government starting tracking the statistic in 1986.

“Credit cards are a useful and effective financial tool for those who keep their balances under control,” said Bruce McClary, spokesperson for the NFCC. “Balances sometimes grow beyond the point where they can easily be repaid, which is a sign that it’s time to reach out to a financial professional for guidance.”

McClary says the key to keeping credit card debt under control is to pay significantly more than the minimum monthly payment. He notes it could take 26 years for a consumer paying only the minimum to pay off a $7,600 balance at 15% interest. Over that payoff period, the interest paid in addition to the principle balance would be $9,229.

The nursery may be stocked with a crib and ready for use, but pediatricians say new parents should wait a while before letting their infant sleep in their own quarters.  

For at least the first six months of a child’s life -- ideally, up to age 1 -- infants and parents should be sharing the same room, according to a new report from the American Academy of Pediatrics.

The organization stresses that room-sharing does not equal bed-sharing; infants should sleep on a separate surface, such as a crib or bassinet. Creating a safe sleep environment near parents could reduce the risk of SIDS by as much as 50%, the authors of the report say.

Easier monitoring

In addition to reducing the risk of SIDS and other sleep-related infant deaths, keeping a baby close to mom and dad during the night can make monitoring and feeding the baby easier.  

"A baby that is within reach of their mother may have more comfort, or physical stimulation from being in an environment with another person," Dr. Lori Feldman-Winter, member of the Task Force on SIDS and co-author of the report, told CNN.

Keeping babies in close proximity of mothers can also make breastfeeding easier, which can slash the risk of SIDS by as much as 70%. "Breastfeeding protects against many adverse outcomes," Feldman-Winter added.

But because mothers may fall asleep during feedings, the AAP recommends keeping parents' beds free of pillows, loose sheets, blankets, or other items that could suffocate the baby. 

Firm sleeping surface

The new recommendations, published Monday in the online journal Pediatrics, are the first update to the AAP's recommendations on safe infant sleep since 2011. 

The new report states that children should sleep on firm, flat surfaces free of any soft items which could cause suffocation. Additionally, parents should make sure to lay infants down in a safe sleeping position.

In its new guidelines, the AAP recommends:

• Placing the baby to sleep on his or her back.
• Using a firm sleep surface (such as a crib, bassinet, portable crib, or CPSC-approved bedside sleeper) with a tight-fitting sheet.
• Keeping soft bedding, crib bumpers, pillows, and soft toys out of the crib. Sleep surfaces should be bare.
• Keeping babies in the same bedroom as parents (but not the same bed) for at least the first six months, preferably until the baby turns 1.
• Avoiding baby's exposure to smoke, alcohol, and illicit drugs.

Your smartphone, and many other electronic devices in your home, is powered by a lithium-ion battery, which until lately you probably haven't thought much about.

But since Samsung had to withdraw its Galaxy Note 7 from the market earlier this month because of a fire hazard, more attention has focused on the battery. The Note 7 isn't the first electronic device to burst into flames. In the past, laptop computers have overheated and caught fire.

Chinese researchers say the public needs to know more about these batteries and their potential hazards, which are not limited to combustion. The scientists at the Institute of NBC Defense and Tsinghua University say they have identified more than 100 toxic gases, including carbon monoxide, given off by lithium-ion batteries, which are in an estimated two billion devices worldwide.

“Nowadays, lithium-ion batteries are being actively promoted by many governments all over the world as a viable energy solution to power everything from electric vehicles to mobile devices,” said Dr. Jie Sun, lead author and professor at the Institute of NBC Defense. “It is imperative that the general public understand the risks behind this energy source.”

Danger of toxic gases

While the present battery concerns have mostly to do with fire, Sun and her colleagues are focusing on the gases produced by chemicals in the batteries. She says these gases are dangerous – even potentially fatal.

In addition, she says they can cause strong skin irritations, as well as inflamed eyes and and nasal passages.

Much of the danger occurs during and after the charging process, according to the research. The Chinese study found a fully-charged battery emits more toxic gases than a battery with a 50% charge.

Batteries can sometimes become overheated if charged with the wrong kind of charger. Apple last week filed suit in federal court in California, claiming that most of the Apple chargers sold on Amazon were not made by Apple, but were knock-offs.

In the study, the researchers were able to cause 20,000 lithium-ion batteries to heat up to the point of combustion. The researchers said most of the devices containing the batteries exploded. All, they said, gave off a wide range of toxic gases.

Brookwood Farms of Siler City, N.C., is recalling approximately 126,570 pounds of pulled pork product.

The product contains soy, an allergen not declared on the label.

There have been no confirmed reports of injury, illness, or adverse reactions due to consumption of these products.

The following fully cooked, pulled pork item, produced between June 12, 2014, and Oct. 21, 2016, is being recalled:

• 5-lb. plastic bags containing “COOKED PULLED PORK CARNITA STYLE.”

The recalled product, bearing establishment number “EST. 1740” inside the USDA mark of inspection and code 15006 on the label, was distributed for institutional use nationwide.

What to do

Customers who purchased the recalled product should not consume it, but throw it away or return it to the place of purchase.

Consumers with questions about the recall may contact Craig Wood at (919) 663-3612 ext.226. 

Ford Motor Company is recalling 53 model year 2015-2016 Ford Edge vehicles manufactured February 9, 2015, to August 12, 2016.

During dealer servicing, the affected vehicles may be have been updated with incorrect Antilock Brake System (ABS) and Electronic Stability Control (ESC) software. This software can cause the ESC system to lose engine torque control and not provide any warning lamps to warn the driver if there was an ABS or ESC system malfunction. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 126, "Electronic Stability Control Systems" and number 135, "Light Vehicle Brake Systems."

If the operator is not warned of an ABS or ESC malfunction and the ESC loses engine torque control, there would be an increased risk of a crash.

What to do

Ford will notify owners, and dealers will replace the ABS module, and update the service software, free of charge. The recall is expected to begin November 28, 2016.

Owners may contact Ford customer service at 1-866-436-7332. Ford's number for this recall is 16C14.

The National Highway Traffic Safety Administration (NHTSA) has confirmed the 11th U.S. fatality tied to faulty Takata airbag inflators. The victim, a 50-year-old woman, died from injuries she sustained when she crashed her 2001 Honda Civic in Riverside County, Calif., on September 30.

The agency has not released the name of the victim, but the vehicle she was driving was among a list of 2001-2003 Honda and Acura models that were at “substantially higher risk” of having the metal canister in the airbag rupture, which leads to shrapnel being spewed into the vehicle when the airbag deploys. The vehicle was initially recalled in 2008, but records showed that the recall repair never took place.

The vehicles on that high-risk list include the 2001-2002 Honda Civic, 2001-2002 Honda Accord, 2002-2003 Acura 3.2TL, 2002 Honda CR-V, 2002 Honda Odyssey, 2003 Acura 3.2CL, and the 2003 Honda Pilot.

Latest in a string of fatalities

The entire recall extends far beyond just those models, though; in fact, it is definitively the largest auto recall in U.S. history. More than 69 million inflators have been recalled in the U.S. alone, and 100 million have been recalled worldwide.

The latest fatality comes little more than six months after the 10th victim lost her life. Seventeen-year-old Huma Hanif was rear-ended while driving outside of Houston in her Honda Civic. Police stated that vehicle had only taken moderate damage in the accident, but Hanif died due to a piece of shrapnel that became embedded in her neck when the airbag deployed.

The Department of Transportation has continued to urge consumers to not drive their vehicle if it falls under the recall, unless it is to directly to a dealer to have the problem fixed. You can visit SaferCar.gov to check the recall status of your vehicle.

A tough choice

However, as we recently reported, some owners who have tried to get their vehicles repaired have been unable to because dealers simply don’t have the parts to do the job. ConsumerAffairs reporter Amy Martyn recently called a Ford Dealership in Dallas to see if she would be able to have her fictional 2010 Ford Edge repaired.

Despite being a resident in Zone A – an area designated as the highest priority for recalls due to high humidity and temperatures – the dealership said it was unable to replace the necessary parts because they didn’t have them. Further, a representative admitted that they didn’t have parts for “the vast majority of airbags,” and that they were “kind of at the mercy of Takata.”

It seems to be a common problem throughout parts of the country, and it puts consumers in a very tough position. Either they can stop driving their vehicles and try desperately to get replacement parts for a hazardous product, or they can keep driving them and hope to avoid any kind of incident that would have the airbag deploy. Unfortunately, as we’ve seen  almost a dozen times in this country, choosing the latter can have fatal implications.

It wasn’t until we boarded our train that my husband realized he was missing his travel bag with his iPad. Our techie daughter remotely locked the device and soon got a signal indicating that the iPad was still at the hotel. Our story has a happy ending: the bag was left in our room, turned in to the front desk, and was sent to us the next day.

I wish I could say that’s the only experience we’ve had with a lost item. We’ve wasted precious time looking for misplaced items, especially difficult while traveling and on a schedule. On our last trip my husband put a Bluetooth tracker in each of our suitcases, making it easy to track and locate them.

There is a never-ending supply of products embracing the latest technologies; many are useful for travelers, making life easier and more enjoyable. Here are five helpers:

1.    Tracking Devices

Trackers are small GPS-type devices that you affix to (or insert in) items you do not want to lose, such as your luggage, keys, or wallet. You then use an app on your smartphone or tablet to track and locate them. Some of these devices use Bluetooth technology.

2.    Portable Charger

Mobile devices use a lot of power and the last thing you want while traveling is a device that quits in the middle of a task. While they won’t charge as quickly as a wall charger in an AC outlet, portable chargers are a convenient way to keep charged while traveling.

Some questions to ask before buying a wireless charger: Does the charger support your device? Do you have the correct cords to connect your charger to your device? It’s important that the charger supports both an iPhone and tablet. Charge times vary depending on your device, so make sure that you have a charger that will sufficiently recharge your device as quickly as possible.

3.    SD Card

It’s a hassle to return from a trip and transfer photos from several different devices to your computer. SD cards make it easier by allowing you to transfer your photos from your camera directly to your cellular phone and iPad using an SD Card Camera Reader.  

4.    Mobile Hot Spot

Who hasn’t hunted for a Starbucks in the United States seeking free Wi-Fi? While most of us want to remain connected while traveling, it’s crucial that we connect in ways that are safe and reasonable. Relying on Wi-Fi can pose a security risk and many hotels charge fees for their Wi-Fi, which isn’t always reliable. Hotspots can fill the gap; they provide more security and usually have enough charge to last all day long and if not, can be charged with a portable charger or by plugging into an outlet (just remember to bring a USB cord and wall charger).

5.    Camera Monitoring or Video Surveillance Devices

It can be comforting to keep an eye on things at home while away. There are a variety of options at diverse price points to monitor different parts of your home with motion detection, audio, and also recording events.  

Many companies manufacture and sell these products. Be a savvy consumer and do your own due diligence to find products and companies that meet your unique needs.

Once upon a time – let's say five or 10 years ago – the average internet user could enjoy a wide range of free content on the internet in relative peace.

Suddenly, there are ads everywhere. Not unobtrusive display ads like you find in newspapers and magazines, but pop-ups that entirely obscure the page, and video ads that start playing as soon as you land on a page.

If you are trying to read an interesting article, sometimes it is next to impossible because you have to stop every few seconds to try to close an ad, or stop a video from playing.

Mark Havenner, a vice-president at The Pollack PR Marketing Group in Los Angeles, traces the escalation in annoyance to just two years ago.

“Pop-ups have been around forever and they've always been disruptive,” Havenner told ConsumerAffairs. “Online advertising has never really worked. We've seen data that suggests disruptive advertising has a negative effect.”

The Facebook factor

But around 2014, he says, Facebook began to score spectacular results with “native” advertising. Native advertising blends in with the content of the site you are on. If you are looking at your Facebook timeline, you get video ads mixed in with everything else. The difference is, the content of the ads matches things you are more or less interested in. It's more effective for the advertiser but less obtrusive for the reader.

Because Facebook has been so successful with that strategy, Havenner says nearly all advertisers are now trying to replicate it, even though it might not be practical for their kind of site.

“When you're on a news site, that's different than being on Facebook,” Havenner said. “On Facebook you're looking at content. On a news site, you're just reading articles, you're not actively looking for something like a video ad. But advertisers want to catch your attention, so they just start playing them.”

Not all internet advertising is as infuriating as the ads that interfere with how you are trying to use the web.

Hulu and YouTube play commercials within videos. Hula commercials come within the content, much like TV commercials would. YouTube plays commercials at the beginning of videos but most of the time you can skip out after a few seconds.

“That kind of advertising doesn't mess with people,” Havenner said.

Ad dollars moving online

Another part of the problem is that a huge transition has taken place in how people consume media. Television viewership is down, with most of those eyes moving to the internet. The advertising dollars have followed and web publications are fighting for them.

If you want to blame someone for the annoying state of the internet, Havenner suggests blaming the online publications that allow jarring and disruptive advertising. Because of it, he believes these publications are losing readers. If so, does that mean there's hope for the future?

“I suppose there is,” Havenner said. “If they start losing readership over it. They see the analytics and see that when that ad is displayed people left their site. So I would hope they would make changes.”

Havenner's advice to fed up consumers is to simply avoid going to sites with obtrusive ads. Eventually, he says, advertisers will get the message.

Airbnb has faced regulatory obstacles for years now. In the past, several state agencies had called on the company to make the names of hosts available. And back in May, the city of Santa Monica cracked down on the business by making it illegal for residents to rent a home for less than 30 days.

The new law ran afoul of local Airbnb host Scott Shatford, who made thousands of dollars every month by renting out his rental properties. The city ended up fining him, and Shatford relinquished $3,500 and said he was moving away to greener pastures in Denver.

Now, due to similar circumstances, New York lawmakers may be looking to pass a new bill that would impose penalties of up to $7,500 on consumers who violate a previous state law that forbids rentals of less than 30 days if the owner or tenant of a property isn’t present. Proponents applaud the measure, saying that Airbnb hurts hotels and takes apartments off the long-term rental market because it is more profitable for owners to rent them at a nightly rate.

“These illegal rentals are not just breaking the law, they are breaking the back of already dangerously thin affordable housing supply,” stated New York Councilmember Corey Johnson.

Removal or regulation?

The majority of Airbnb rentals are listed in New York City, but the measure would also cover other areas of New York as well. Currently, the bill is awaiting approval from Governor Andrew Cuomo, who has until October 29 to either sign or veto it. If he takes no action, the measure will become law anyway.

Assemblywoman Linda Rosenthal, who sponsored the bill, says that it is necessary for New York to stop property owners from using their apartment buildings like hotels. A previous investigation by the state attorney general’s office found that 72% of Airbnb rentals in New York City between 2010 and 2014 were illegal.

However, Airbnb has voiced its concern and said that regulations that stop property owners from exploiting the system would be more appropriate, stating further that the proposed bill would just be taking money out of the pockets of New Yorkers.

“It’s baffling to us in this time of economic inequality that folks would be looking to impose fines of as much as $7,500 on a middle-class person looking to use the home that they live in to help make ends meet,” said Chris Lehane, Airbnb’s head of global policy.

Influencer marketing has helped many brands reach new audiences and sell more of their product -- but should kids be targeted by influencer marketing?  Three advocacy groups don’t think so.

On Friday, the Center for Digital Democracy, Campaign for a Commercial-Free Childhood, and Public Citizen filed a complaint with the FTC against Google, Disney’s Maker Studios, and several other companies over the “unfair and deceptive practice” of aiming influencer marketing at children.

The groups contend that kids don’t have the same ability as adults to distinguish influencer ads from content. By using YouTube, for example, as a platform on which to show kids unboxing toys or promoting other products, the groups argue that companies are taking “unfair advantage of kids.”

More than disclosure needed

In the complaint, Laura Moy of the Institute for Public Representation at Georgetown University Law Center, which is representing the groups, pointed out that influencer ads may be over kids’ heads in some ways.

“Child-directed influencer marketing is misleading to children because their immature brains do not process or understand advertisements the way adults do -- especially advertisements disguised as content,” she said.

But simply asking companies to do a better job of differentiating ads from content isn’t enough; the groups say influencer marketing should be avoided entirely. Even full disclosure, they say, “would not negate the inherent deceptiveness of child-directed influencer marketing.”

Sample videos

Kids are often captivated by YouTube videos featuring other children sampling junk food, playing games, or unboxing toys. The complaint provides specific examples of YouTube channels that show influencers engaged in this type of "stealth marketing."

In one YouTube video, which has racked up a staggering number of views, influencer EvanTubeHD is shown unboxing a Lego Police Patrol Boat. This video, like others similar to it, isn't portrayed as being commercial or sponsored in any way.

The advocacy groups say the FTC should investigate the practice of aiming influencer ads at children and take preventative action against it in the future.

This isn't the first time CDD and CCFC have filed complaints with the FTC over advertising to kids on YouTube. Last year, as we reported, the two consumer groups urged the FTC to stop Google from engaging in the "deceptive practice" of marketing to kids on its YouTube Kids App.

Liberty Mutual spends a lot of money advertising its "accident forgiveness" feature, which promises consumers that under certain conditions, they can escape premium increases even if they have an accident: 

Accident Forgiveness is a policy benefit where Liberty Mutual won’t raise your rate due to your first car accident if you’ve been accident-free and violation-free for 5 years.

The only problem is that a lot of those ads run in California, where the accident forgiveness feature is not available. The district attorneys in Los Angeles, Riverside and San Diego counties sued Liberty Mutual and the company has agreed to pay $925,000 to settle the suit.

70% to 80%

Boston-based Liberty Mutual's nationwide TV ad campaign for accident forgiveness insurance reached 70 to 80 percent of California households, according to the company's own estimates, the San Diego County attorney said in a statement Thursday. But accident forgiveness auto insurance was prohibited in California in 1988, by Proposition 103.

Liberty Mutual failed to disclose that except for a small disclaimer briefly visible at the bottom of the TV ads, which was "insufficient to adequately alert viewers," the district attorneys said.

“California consumers rightfully expect clear and accurate advertising about what is and is not contained in the automobile insurance policies offered to them,” said Los Angeles County District Attorney Jackie Lacey.

The settlement was signed by Riverside County Superior Court Judge John Molloy.

People who can afford a Tesla may not want to drive others around for a fee the way Uber and Lyft drivers do. And they may be even less interested in letting strangers ride around alone in their self-driving Teslas.

But nevertheless, Tesla is planning to start its own ride service program sometime next year and is making it clear it doesn't want its customers competing with it. The disclosure came as part of a disclaimer about the self-driving function being built into new Model S Teslas.

"Please note that using a self-driving Tesla for car-sharing and ride-hailing for friends and family is fine, but doing so for revenue purposes will only be permissible on the Tesla Network, details of which will be released next year," read the disclaimer, according to a Reuters report.

It's interesting that Tesla apparently intends to exert control over how Tesla owners use the software in their cars. This may be the first time a carmaker has tried to restrict how customers may use their cars. 

Tesla said yesterday that it would include self-driving technology on all of its new cars, though it's not clear whether owners will have to pay extra to enable it.

Tesla hasn't commented beyond the disclosure, but its CEO, Elon Musk, said in a master plan released in July that he was planning a ride service.

Other automakers are angling to do the same. Could they be thinking of the old business school legend which held that railroads lost out to airlines because they thought they were in the railroad business instead of the transpotation business? 

After all, just because you can slap a car together doesn't necessarily make you the best person to run a taxi service. Financial analysts have been lukewarm to Tesla's plans, noting the huge capital investment that would be required. Unlike Uber, General Motors, and other big players, Tesla is not rolling in cash at the moment.