Current Events in October 2016

To hear the infomercials and social media pitches tell it, a glucosamine and chondroitin supplement called Supple is the answer to arthritis and fibromyalgia pain. Why, it's scientifically proven effective, the ads and posts exclaim. 

But the Federal Trade Commission (FTC) took a more rigid view. “Companies need solid scientific evidence to back up the health claims they make,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Consumers should not have to take it on faith that products claiming to provide pain relief will live up to their billing.”

The FTC alleged that Wisconsin-based Supple, LLC and its principals, CEO Peter Apatow and his ex-wife Dr. Monita Poudyal, put on a modern medicine show presentation. Their infomercials featured Poudyal acting as medica show hostess and Apatow acting as her supposed guest. 

Together, they portrayed Supple as a powerful all-natural drink that provides complete and long-lasting relief from joint pain; treats or relieves chronic or severe pain, including pain caused by all forms of arthritis and fibromyalgia; provides pain relief comparable to drugs or surgery; repairs cartilage; rebuilds joints and entire joint structures; and restores mobility and joint function to consumers with severe mobility restrictions.

A sales bonanza

It was great while it lasted. The FTC's complaint says the couple took in more than $150 million from sales of the supplement, which costs about $70 for a 24-day supply.

The FTC's complaint charged that the claims are false or not adequately substantiated. In addition, the FTC alleged that the defendants falsely claimed that Supple is clinically proven to eliminate joint pain.

The complaint also alleges that defendant Poudyal made unsubstantiated “expert endorsement” claims for the product, and falsely represented herself as an independent, impartial medical expert. The complaint further charges that the defendants failed to adequately disclose that Poudyal was married to Apatow during the time she was promoting the product.

In a settlement agreed to by the defendants, they are required to have scientific evidence to back up any future claims they make about pain relief, disease treatment, and health benefits, and are barred from misrepresenting the results of any scientific study. It also prohibits them from deceptively representing that Supple’s endorsers are independent and objective when those endorsers have a close personal or financial stake in the company’s product sales.

The settlement includes a $150 million judgment, most of which has been suspended based on the financial condition of Supple and Apatow.

Medical experts and researchers have been scrambling to come up with strategies to deal with the Zika virus threat. While a vaccine for the disease has not been created yet, the Centers for Disease Control and Prevention (CDC) has listed several ways that consumers can keep themselves safe.

The prevention strategies have been available for the public for some time now, but a recent release by agency has updated some of the suggestions to reflect the latest information that has been collected. The new guidelines state:

• Women and men who are planning to become pregnant in the near future should consider avoiding nonessential travel to areas with active Zika virus transmission.
• The amount of time to wait to attempt conception for couples in which the man has had possible Zika exposure but no Zika symptoms has increased from at least 8 weeks (previous guidance) to at least 6 months after last possible exposure (updated guidance).
• The amount of time to use a condom to protect against transmission of Zika virus infection or not have sex for men with possible Zika exposure but without symptoms has increased from at least 8 weeks to at least 6 months after last possible exposure.

Zika virus information

The Zika virus is a condition that can affect anyone, but it can often fly under the radar. The initial symptoms are similar to those with a cold or flu, including fever, rash, joint and muscle pain, conjunctivitis, and headache. It can often be undiagnosed because some people have such mild symptoms.

However, Zika can be especially dangerous to women who are pregnant or looking to become pregnant, since the disease is known to cause microcephaly, a severe fetal brain defect. Other fetal complications include eye defects, hearing deficits, and impaired growth. In rare cases, consumers inflicted with the virus may develop Guilain-Barré syndrome, which can lead to paralysis.

Zika is spread primarily through bites from infected mosquitoes in the Aedes species, but it can also be spread through sexual transmission. Previous guidelines suggested by the CDC ask women who are looking to become pregnant to wait at least 8 weeks before trying to conceive if they have been exposed to the virus. Proper use of condoms can also reduce the risk of sexual transmission.

The CDC advises those living in active Zika transmission areas who are looking to become pregnant to visit their healthcare provider so they can learn the risks and create a feasible pregnancy plan. The agency releases weekly reports that can be found here, and additional information about Zika can be found here.

The Consumer Financial Protection Bureau (CFPB)  has issued a new rule covering prepaid debit cards, providing a series of new consumer protections. The rule goes into effect October 1, 2017.

Consumers often use these cards instead of bank accounts. Money can be directly loaded on the cards, which can be used to make purchases or pay bills. The problem for consumers has been the fees associated with the cards and the lack of transparency for some of them.

That's because not all of these cards are the same. The cards have their distinct set of features, functions, and fees. Right now, it can be hard to compare cards because each card displays fee information differently.

The CFPB says the new rule will require clear, upfront information about fees so consumers will more easily shop for the best deal.

Reins in overdraft fees

The rule also tightly regulates overdraft fees connected to prepaid cards, which Nick Bourke, director of consumer finance at the Pew Charitable Trusts, is one of the most important features.

“The CFPB’s rule on prepaid cards is a big win for consumers,” Bourke said in an email to ConsumerAffairs. “First and foremost, it keeps the cards free from overdraft penalties, which aligns with consumers’ preferences.”

Bourke points to research that shows many consumers turn to prepaid cards to control spending and to avoid overdraft fees.

“Moving forward, we strongly encourage the bureau to rein in these harmful fees for checking accounts, the most widely used financial product in the U.S.,” he said.

Growing use

The use of prepaid cards has rapidly grown since the financial crisis, when many consumers joined the “unbanked” population. But Pew researchers say the cards are also widely used by people who also have bank accounts.

Use of prepaid cards rose more than 50% from 2012 to 2014, driven primarily by increased adoption among consumers with bank accounts, with approximately 23 million U.S. adults regularly using prepaid cards, according to Pew data.

Pew found that 72% of unbanked consumers and 45% of those with bank accounts say they use prepaid cards to avoid overdraft fees. A huge majority – 86% – prefer to have a transaction declined for insufficient funds than pay a $35 overdraft fee.

The rule also provides new features to make sure prepaid cards are safer to use at retail point-of-purchase locations and online. Currently, if an unauthorized person accesses a prepaid cardholder's account, the level of protection depends on the issuer. Under the new rule, there will be universal protections for all cards in case they are lost or stolen.

Once again, the price of U.S. homes as gauged by CoreLogic was on the rise.

The property information provider says it's Home Price Index (HPI) posted a year-over-year advance of 6.2% in August and, on a month-over-month basis, was up 1.1%.

“Housing values continue to rise briskly on stronger fundamental and investor-fueled demand, as well as lack of adequate supply,” said CoreLogic President and CEO Anand Nallathambi. “This continued price appreciation is contributing to a growing affordability crisis in many markets around the country.”

Looking ahead

The CoreLogic HPI Forecast indicates prices will rise 5.3% from August 2016 to August 2017, and by 0.4% from August to September.

“Home prices are now just 6% below the nominal peak reached in April 2006,” according to Dr. Frank Nothaft, chief economist for CoreLogic. “With prices forecasted to increase by 5% over the next year, prices will be back to their peak level in 2017.”

Mortgage applications have posted a solid gain after falling for two weeks in a row, rising 2.9% during the week ending September 30.

The Mortgage Bankers Association also reports the Refinance Index jumped 5% from the previous week, taking the refinance share of mortgage activity to 63.8% of total applications from 62.7% the week before.

The adjustable-rate mortgage (ARM) share of activity rose to 4.5% of total applications, the FHA share dropped to 10.0% from 10.2%, the VA share of total applications fell to 11.4%, and the USDA share of total applications increased to 0.7% from 0.6% a week earlier.

Contract interest rates

• The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) fell four basis points -- from 3.66% to 3.62% -- the lowest level since July 2016, with points decreasing to 0.32 from 0.33 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
• The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) dipped to 3.60% from 3.64%, with points decreasing to 0.25 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
• The average contract interest rate for 30-year FRMs backed by the FHA decreased by two basis points to 3.50%, with points falling to 0.16 from 0.21 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
• The average contract interest rate for 15-year FRMs slipped to 2.93% from 2.95%, with points decreasing to 0.32 from 0.38 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
• The average contract interest rate for 5/1 ARMs was unchanged at 2.92%, with points increasing to 0.44 from 0.40 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The survey covers over 75% of all U.S. retail residential mortgage applications.

People have been buying and selling things on Facebook for quite awhile, even though there has been no official way to do so. So, says Facebook, it's only logical it should create a space specifically designed as a marketplace.

It's called -- what else? -- Marketplace and is available on the iOS and Android Facebook apps. Facebook's Mary Ku describes it as "a convenient destination to discover, buy and sell items with people in your community."

Ku, Facebook's director of product management, says you enter the marketplace by tapping on the icon in the bottom right corner of the Facebook app on your smartphone.

Marketplace opens with photos of items that people near you have listed for sale. To find something specific, search at the top and filter your results by location, category, or price.

Kind of like ...

If this sounds a lot like Craigslist, that's because it is. Craigslist has been around since the dawn of internet time and continues to thrive, despite an appearance critics call drab bordering on ugly and fans call minimalist and functional.

While many others have tried unsuccessfully to dislodge, or at least nudge, Craigslist, Facebook may have a better chance. With its huge active user base of one billion souls, many of them seemingly glued to their screens all day long, Facebook would appear to have better odds than its predecessors.

Selling or buying on Facebook may also eliminate some of the "creep factor" that has come to infest Craigslist, since Facebook users are required to use their real identity. Many consumers shy away from Craiglist, not wishing to deal with anonymous buyers and sellers.

Marketplace may not be visible on your phone just yet, but Facebook says it will be rolling out to everyone over 18 years old in the U.S., U.K., Australia, and New Zealand over the next few days, with more countries to come.

It will also be available on the desktop version of Facebook in the coming months, Ku said.

Although giving up on smoking is a crucial first step towards improving a person’s health, a new study shows that health hazards from the habit persist long after the last pack has been thrown out.

Researchers from San Diego State University have found that the smokers’ homes remain polluted by thirdhand smoke (THS) for at least six months after they have quit. THS is made up of minute tobacco particles that penetrate various surfaces in the home – like carpets, upholstery, pillows, blankets, clothes, wallpaper, and ceiling tiles.

“We tend to see smoke in the air and then it’s out of sight out of mind. But it leaves compounds in indoor environments that can do harm to our bodies, especially children, and sometimes we cannot see or smell it,” said lead author George E. Matt.

Pollutants stick around

The researchers came to their conclusions after conducting a six-month study on tobacco smoke pollutants found in the homes of 90 former smokers. They measured home surfaces, dust, and the fingers of the former smokers for THS pollutants at five different intervals to see if levels went down over time.

The data showed that levels of nicotine had a significant short-term reduction on household surfaces and on participants’ fingers, but levels found in dust did not change much over the six-month period. Urine tests also revealed that urinary cotinine levels, which measure exposure to tobacco, were still detectable at the study's conclusion. 

This suggests that residents were still being exposed to tobacco pollution long after they quit, which could have long-term negative impacts on their health.

The researchers say that further study will be needed to fully understand the consequences of continued THS exposure. More work will also need to be done to figure out how to remove THS from the home so that it doesn’t become a health issue.

The full study has been published in the journal Tobacco Control.

And the winner is...

The Insurance Institute for Highway Safety ( IIHS) has bestowed its TOP SAFETY PICK+ award on the 2016 Mercedes-Benz C-Class.

The award came as the midsize luxury car earned good ratings in all five of the Institute's crashworthiness evaluations -- small overlap front, moderate overlap front, side, roof strength, and head restraints.

The vehicle also has a standard front crash prevention system that earns an advanced rating. An additional, optional system boosts the car's front crash prevention rating to superior.

The C-Class was redesigned for 2015, but IIHS only recently evaluated it for crashworthiness. The car's structure held up well in the challenging small overlap test with maximum intrusion into the occupant compartment of just 4 inches. The earlier generation of the C-Class had intrusion of 20 inches at the footrest and earned a marginal rating.

The roof strength test also yielded notable results. The C-Class was found to have a strength-to-weight ratio of 7, among the highest ever registered. A ratio of 4 or higher is required for a good rating. Roof strength is important for protection in a rollover crash.

To qualify for 2016 TOP SAFETY PICK+, a vehicle must earn good ratings in the five IIHS crashworthiness tests and an advanced or superior rating for front crash prevention.

What if you are one of the two million Wells Fargo customers who recently discovered that the bank opened a fraudulent bank or credit card account in your name?

If so, you're probably angry, since you didn't ask for the card. So you'll show them – you'll close the account.

But not so fast. Closing a credit card account, even one opened in your name without your permission, can negatively impact your credit score. So you might not want to act until you are able to figure out what the damage will be.

Diane Moogalian, Vice President, Customer Operations at Equifax, one of the three main credit agencies, says closing a credit card account that has no balance will reduce the amount of credit at your disposal. Often, she says, that can be a mark against you.

“Lenders and creditors want to see that a consumer is able to make a financial commitment and honor it – over time," Moogalian told ConsumerAffairs. “In other words, that ability to show responsibility can take time, and sometimes keeping an account open can be a good thing.”

But if you don't want the credit card, you will probably suffer less of a hit by closing it if the card has a low credit limit. Chances are, most of the fraudulent accounts have low credit limits. By closing it, you aren't reducing your credit availability that much.

Is it costing you money?

Moogalian says a consumer may also want to consider closing an account that has no balance if that account is costing money. The trade off between spending unnecessary money and having your credit score go down temporarily should go in favor of not spending money needlessly.

How much will closing a credit card account affect your credit score? It depends on how much credit you have, how much you've used, and how good your credit is.

If you have a total credit limit of $20,000 on all your cards but only have balances totaling $4,000, you have a low credit utilization rate and closing an account that reduces your limit by only $1,000 or so won't make a lot of difference, especially if you already have a pretty good credit score.

And if you do have a good credit score, the hit you take for closing your Wells Fargo account should be fairly small and short-lived. By continuing to pay all your bills on time and not opening new credit lines for a while, your score should quickly recover.

Legend has it that Twitter has for years been a twinkle in the eyes of Google co-founders Larry Page and Sergey Brin, and now Bloomberg reports that Google parent Alphabet has hired Lazard Ltd. to evaluate a possible acquisition.

Lazard served as the financial adviser for Google’s $625 million takeover of software developer Apigee in September. The deal is expected to close by year’s end.

Rumors of a Google takeover of Twitter have been around since at least 2009. It's seen as a natural fit for both companies and for advertisers who already advertise on both sites to reach their target audiences.

For Google, Twitter would perhaps finally supply what Google has been unable to conjure up on its own -- a successful presence in the social space. Google+ never quite took off, and microblogging site Buzz faded quickly after its 2010 launch. Meanwhile, Twitter has continued to ramp up its user base despite problems figuring out how to majorly monetize it, so to speak.

What the benefits are for everyday consumers isn't quite as clear, but there's no immediately obvious downside.

There could be privacy implications if the sites' user lists were merged after an acquisition, but does anyone really expect privacy in a social network setting?

As if income tax questions and tiffs with Venezuelan beauty queens weren't enough, Donald Trump is on the wrong side of a stinging rebuke from New York Attorney General Eric Schneiderman.

Schneiderman's office wrote the Trump Foundation Friday ordering it to stop soliciting contributions in New York State, saying it had never filed the required forms. 

The letter, technically a "Notice of Violation," states that the Trump Foundation “is in violation of section 172 of Article 7-A New York's Executive Law, which requires charitable organizations that solicit contributions in New York State to register with the Charities Bureau and to provide annual financial reports and annual audited financial statements,” Schneiderman's office said today.

The notice directs the Trump Foundation to “immediately cease soliciting contributions or engaging in other fundraising activities in New York” and “to provide the [AG's] Charities Bureau with the information specified in Section 172 within fifteen (15) days” of receiving the notice. 

“The failure immediately to discontinue solicitation and to file information and [the required] reports shall be deemed a fraud upon the people of the state of New York,” said James Shaheen, chief of the Charities Bureau.

Ultimately, the Trump Foundation could be required to return money it has raised illegally. 

The legitimacy of Trump's foundation has been the subject of much speculation after critical press reports. The New York Times reported last month that Trump's foundation does show up on many states charity registers, and the Washington Post reported the foundation had not registered in New York.

Schneiderman successfully sued Trump in 2014, charging he was personally liable for running Trump University without a license. Schneiderman accused Trump of defrauding students of $40 million. 

Want to help public health investigators come up with new ways to fight the Zika virus? Now you can, with Kidenga -- a free app for iOS and Android devices.

The "community-based disease detection system" asks users to report their symptoms as well as mosquito activity in their area. In doing so, citizens may be able to help health experts better track and detect Zika outbreaks.

In addition to tracking “day-biting mosquito populations within a community,” the app keeps users current on confirmed cases of Zika within their community. Kidenga also provides important information on preventing mosquito-borne diseases.  

‘Early alert is critical’

Kacey Ernst, an infectious disease epidemiologist at the College of Public Health, said the app’s use of ZIP codes may help experts zero in on areas that “appear to have an uptick of suspicious symptoms," which may hint at cases of dengue, chikungunya, and Zika.

“This early alert is critical to reduce or prevent further spread of the virus," Ernst said in a statement.

Apps like Kidenga and other tools for self-reporting could be especially vital, as not everyone will see a physician if their symptoms are mild. People may be more likely to report symptoms if it can be done on their smartphone.

"Click a button that says everyone is healthy and say whether or not you noticed mosquitoes in your area, and you're done." Ernst told News4 Tuscon.

Arizona, Florida, Texas

Currently, researchers are focused on having the app used in states with high populations of Aedes mosquitoes, such as Arizona, Florida, and Texas. Controlling populations of Aedes aegypti in states like these, where the climate is humid and subtropical, is no easy task.

Ernst says reducing transmission risk "requires buy-in ranging from grassroots community initiatives to government-operated programs," adding that the app may help. "With more information, we hope that more people will join the fight to control these mosquitoes."

The app was developed by researchers from the University of Arizona’s Mel and Enid Zuckerman College of Public Health.

Symptoms of Zika 

The most common symptoms of Zika are fever, red eyes, and joint pain, according to the U.S. Centers for Disease Control and Prevention.  Headaches and muscle pain may also occur, although some individuals may not exhibit any symptoms. 

If you have symptoms or visited an area with Zika, you are encouraged to see your doctor. It is especially important to do so if you are pregnant, as the Zika virus can cause severe birth defects. 

There’s nothing more heartbreaking than seeing your child in pain, and most parents would do just about anything to take away the pain of teething.

From massaging their gums to offering them a fridge-chilled spoon to chew on, there are numerous ways to relieve the pain of cutting teeth. But there’s one thing parents should avoid doing.

According to the FDA, parents should refrain from using homeopathic teething tablets and gels. In a statement, the agency warns that these remedies may pose a risk to infants and children.

May cause seizures

In 2010, the agency released a safety alert about homeopathic teething tablets (specifically, Hyland’s Teething Tablets). Now, the FDA is analyzing health issues reported since then.

“Consumers should seek medical care immediately if their child experiences seizures, difficulty breathing, lethargy, excessive sleepiness, muscle weakness, skin flushing, constipation, difficulty urinating, or agitation after using homeopathic teething tablets or gels,” the FDA said.

The agency notes that homeopathic teething tablets and gels have not been approved by the FDA. Furthermore, the products have not been shown to yield any proven health benefits.

Natural teething tips

The pain of teething can be managed in other ways, says Janet Woodcock, M.D., director of the FDA’s Center for Drug Evaluation and Research.

Instead of obtaining a prescription or seeking out an over-the-counter remedy, Woodcock says parents and caregivers should “seek advice from their health care professional for safe alternatives."

Additionally, there are many natural home remedies that can be helpful throughout the process of teething. Here are a few ideas:

• Chilled washcloth. A clean, wet washcloth can be put in the fridge and left to chill. Inflamed gums may become a little less angry as babies chew on the cold cloth.
• Teething jewelry. Grabbing mom’s jewelry is a favorite pastime of most babies. Teething babies can gum away on jewelry by companies such as Smart Mom Jewelry. The FDA-approved silicone the jewelry is made of is free of phthalates, BPA, PVA, latex, and lead.
• Distraction. Give your baby some temporary relief from their discomfort by employing distractions, such as a game of peekaboo or a warm bath.
• Chilled teether. Purchase a solid or liquid-filled teething ring, then place it in the fridge for 15 to 20 minutes. Like chilled washcloths and spoons, these toys can help soothe your baby’s aching gums.
• Carrot. A full-sized carrot, when washed and peeled, can act as a teething tool. If you don't have a carrot on hand, try freezing a banana and letting your baby gnaw on it.