Current Events in November 2017

Nissan North America is recalling 17,507 model year 2017-2018 Infiniti QX30s.

The driver's air bag may unexpectedly deploy due to insufficient grounding of the steering components if an electrostatic discharge occurs and the air bag clockspring is broken.

If the driver air bag inadvertently deploys, it can increase the risk of injury and a crash.

What to do

Nissan will notify owners, and dealers will add sufficient grounding to the steering components, free of charge.

The recall is expected to begin December 18, 2017.

Owners may contact Infiniti customer service at 1-800-622-6200, option 7.

YouTube has revamped its YouTube Kids app to include enhanced parental controls and age-tailored kid profiles, among other features. 

These changes encourage thoughtful parental involvement, as a recent U.K. study showed kids under the age of 5 spend an average of eight hours and 18 minutes a week online, and more than a third of preschoolers (37 percent) regularly watch YouTube videos. 

Parents can now use the app to control the amount of time their kids spend on a device and monitor the content they watch. Additionally, parents can set up a profile for their child, which will work across different devices. 

The more detailed setup process allows parents to offer more information about the type of content they do or don’t want their child accessing, so they can select the right content for their kids. 

Adapts to child’s age 

After entering the child’s date of birth, the app’s interface will take on a look that suits the child’s age. Previously, the app’s look and feel was designed to cater to preschoolers.

Now, the app can be customized to fit interactive needs/styles of school-age children, allowing the app to mature with its users as they get older–in particular the app’s earliest group of users. 

“Younger kids will get less text, while older kids will get more content on the home screen,” the company said. A future update will include an option for parents to add more content geared toward older kids, as well as a tab for Gaming. 

Moreover, kids now have the option of using a passcode to separate their content and profiles from their siblings’ -- but this won’t prevent parents from keeping tabs on what their children are watching. Parents can still control what kids watch and block specific channels or videos. 

The ability to create individual profiles for children may be especially helpful for households with children of different ages, since each child’s profile gives video recommendations based on the user’s age. 

Addresses past complaints

The app previously received criticism for being unable to fully shield children from inappropriate content within the platform. YouTube addressed parents’ complaints by allowing them to customize the app’s search settings and choose their own passwords. 

By adding the ability to create accounts for kids through a parent’s Google account, YouTube aims to give parents control over the customization of their secondary accounts. 

“We're looking at ways to build an even better experience for families. Coming soon, we'll give parents the option to have more content available in the app experience for their child. Our team is working to identify the most relevant content categories for tweens to make the app even more awesome,” the company said.

YouTube says its kid-friendly video app has garnered more than 70 billion views since it was first launched in 2015. It boasts 11 million weekly active viewers and has a total of 800 million learning video views per day.

The app is now available in 37 countries

High school students planning to attend college now have access to a free workbook to help them prepare.

Educational Credit Management Corporation (ECMC) has published the 2017-2018 Opportunities book, and online resource that walks students and their parents through the process of choosing a college, applying and obtaining financial aid.

Paula Craw, vice president of Student Success and Outreach for ECMC says the process starts with picking the right school. She says the choice isn't just about the cost of tuition.

“I think the fit for the student is really key," Craw told ConsumerAffairs. "Considerations include the size of the campus, the size of the classrooms, even the neighborhood. Its distance from home can also be a big consideration.”

Importance of financial aid

Financial aid is critical to today’s high school students, as college costs have risen dramatically in recent years. USA Today found college tuition has increased at roughly double the rate of inflation over the last decade.

Given the reality that many students may never attain a college education without help, Craw says the workbook spends a lot of time guiding families through various scholarship options.

“We believe the scholarship piece is critical because we always want students to find free money,” she said.

Once accepted at a school, students should fill out the federal student aid form, known in education jargon as the FAFSA form. This form contains financial information about students and their families to determine eligibility for financial aid.

The workbook outlines the required information and directs applicants to this Department of Education worksheet to help organize their information.

In addition to possible government aid, the FAFSA opens the door to potential scholarships and grants provided by individual colleges and universities. Schools begin accepting these forms each October and Craw says students should file them quickly.

File early

“We recommend that students apply just as early as possible because many of these aid packages from individual colleges are awarded on a first-come, first-served basis,” she said.

In addition to the workbook, ECMC also provides a free tool called College Abacus, which helps users quickly determine how much aid they could receive from several different schools.

Craw stresses that students should also have a conversation with someone in the financial aid office of their chosen school because a discussion of an individual student's needs, interests, and background may lead to other sources of student aid.

A report last month revealed just how important it is to investigate every source of financial aid. An analysis by personal finance site NerdWallet found $2.3 billion in federal education grant money went unclaimed last year.

Application prep

In addition to the financial component, the workbook also has sections designed to prepare students for the application process. Craw says it contains fairly general information on exam prep, with links to the individual test sites.

"We also provide a checklist for a student's last two years of high school, detailing when these tests should be taken," Craw said. "We don't go into a lot of detail because we want the students to work closely with their high school counselors to get ready for these tests.”

The workbook even includes recommendations on avoiding scholarship scams. Craw says it costs nothing to apply for a scholarship. If an organization tells you it needs a check before you can apply, Craw says that's a good reason "to run the other way."

Somewhere, from a call center on the other side of the world, a man was calling the McDonald’s two miles away from my home to let them know that I no longer wanted an Egg McMuffin.  

After several minutes of elevator music, the man with a thick accent came back on the line. The restaurant agreed to remove the McMuffin.

Uber, the rideshare leader that turned the taxicab industry upside down, is now trying to bring its influence and workforce to the growing industry of ordering food via smartphone. In its quest for food delivery domination, Uber has found an unlikely partner in McDonald’s.

When Uber launched its UberEats application across American markets last year, it promised a meal delivery service “that makes getting food as easy as requesting a ride.”

Uber was following in the footsteps of other food delivery applications like DoorDash, Favor Delivery, and Grubhub. For a fee that’s usually around $5, (in UberEats’ case, $4.99), a stranger delivers food from a participating restaurant in their personal vehicle.

It would seem that McDonald’s, a chain that already makes the process of getting food extremely easy, wouldn't have much use for this service, but the companies are going for it anyway.

In May 2017, McDonald’s announced that food delivery through UberEats is available at over 1,000 of its restaurants in the United States. What happens when two brands marketing to our laziness join forces?

Timeline of an UberEats McDonald delivery

1:25 p.m:  I'm just trying to browse the McDonald’s menu and review my online shopping cart when I accidentally press the “Place Order” button. Unfortunately, my credit card information has automatically crossed over from my Uber account to UberEats.

I look for a cancellation button, and a search on the application leads to an explanation that orders cannot be cancelled if they are already being prepared. According to my order history, McDonald’s began preparing my order at 1:25, the very minute that I placed it.

1:27 p.m: I call the 1-800 customer service number provided by UberEats and am connected to a man in another country who can make no promises, but who says he will try calling the restaurant on my behalf.

After a hold, he tells me that the restaurant will allow me to cancel the entire order, but this is the one and only time I will ever able to do so. Fearing I will make this mistake again, I ask him to just remove the Egg McMuffin. He must call the restaurant back to confirm this is possible.

1:52 p.m: My Uber driver arrives and agrees to a short interview.

He does not make much from UberEats. On my $35 McDonald’s order, he took home $5, as he shows on his smartphone screen (customers have the option to tip, but they are not prompted to do so until several hours later).

He has been working since 9 a.m. that morning and has only earned about $30 so far. Why bother? To kill time. He explains that his delivery shift for his other, better-paying job doesn’t start until the end of the day.

Before leaving, he hands me a bag from an expensive restaurant containing a gourmet bowl of pasta and pork. He couldn’t find the person who ordered it and he no longer wants the food in his car.  

2:00 p.m: My neighbor gets the noodle bowl and I sit down to evaluate the McDonald’s order.

I have a stained McDonald’s coffee cup and find a hashbrown at the bottom of one bag. McDonald’s and Uber refunded me for the Egg McMuffin I canceled and got rid of the sandwich but forgot to remove the accompanying hashbrown and coffee. Consumer: 1. Corporation: 1,000,000,000.

They got our other requests right--the burger has no onions or mustard, and we have more dipping sauces than we need.

Because McDonald’s began “preparing” (read: heating up) this food over thirty minutes ago, it is lukewarm and will not be edible until we heat it up ourselves for dinner later. Afterwards, we are extremely thirsty and vow to never eat at McDonald’s again.

There are benefits to smartphone food delivery, especially for small businesses that don’t have a budget to deliver themselves. When the only restaurants by the office are fast-food joints, who wouldn’t want a bowl of pho delivered from their favorite family-owned Vietnamese restaurant on a rainy lunch break?

But getting an Uber delivery from McDonald’s has minimal benefit to anyone other than Uber or McDonald’s.

A Canadian survey has uncovered some gaps in what millennials know about life insurance. The poll of young adults in Ontario, between the ages of 25 and 35, found that fewer than half said they fully understand their life insurance policies.

"I cannot imagine the U.S. market being much different," Bob Bland, CEO of online life insurance marketplace LifeQuotes, told ConsumerAffairs.

Bland says these knowledge gaps are likely due to the complexity of certain life insurance products and the fact that the industry has changed so much that consumers never talk to a salesperson when they buy insurance.

However, he says millennials who are starting families need to understand life insurance and how it fits into their lives.

Term life insurance and income replacement

"The purpose of life insurance is to replace the income of the family breadwinner," Bland said. "That includes not only the person earning the money but a spouse who is taking care of young or old family members at home. In this day and age, we absolutely recommend that a stay-at-home parent have life insurance."

But how much life insurance coverage do you really need? Bland says financial planners typically recommend 10 to 15 times your annual earnings. If you earn $50,000 a year, that means $500,000 in coverage is a good starting point.

Bland advises young families to consider term life insurance, which he says is very inexpensive. But just how inexpensive it is will depend on the amount of coverage, the term, and the health and lifestyle of the policyholder.

Term insurance can be taken out for a specified term -- usually 10, 20, or 30 years. Most of these policies don't require a medical exam and, best of all, the rate stays the same over the life of the policy.

"It's easy to understand, it covers death by any cause, at any time, at any place, except for suicide in the first two policy years," Bland said.

Option to convert to permanent insurance

At the end of the term, a policyholder may choose to convert the policy to permanent insurance. The premiums will be significantly higher than for the term policy, but Bland says many conversions can be done without a medical exam, an important detail if the policyholder has developed a chronic illness.

The Canadian survey, conducted by the Financial Services Commission of Ontario, found only 47 percent of older millennials have life insurance. Anatol Monid, a commission director, says most people don't want to think about what might happen, but it's important to ask questions so you can make good financial decisions.

Bland agrees, saying the more you know how life insurance works, the better protected you will be. You can start by comparing reviews of life insurance companies here.

Health and nutrition are important to millennials, and it’s apparent in their grocery shopping habits.

Compared to older generations, those born between 1980 and 1996 spend more at higher-end grocery stores and nutrition stores, according to a study conducted by mobile technology company Ibotta.

While there, they tend to stock up on organic and natural items that can help them maintain a healthy lifestyle.

Where millennials shop

The study shows millennials shop 35 percent more often than non-millennials at places like Whole Foods, Sprouts, and The Fresh Market, likely because these stores are perceived to value traits like transparency and environmental consciousness. They also frequent nutrition stores such as GNC and Vitacost more than other generations.

Certain big-box retailers are also favored by younger consumers. Findings show that millennials shop more often at stores like Costco (+14 percent) and Target (+23 percent) than other generations.

Although millennials are a surprisingly frugal group, research shows they shop less at dollar stores than non-millennials. They’re also less likely to shop at pharmacies, craft stores, home improvement stores, footwear and apparel stores, and multi-purpose grocery stores like Walmart.

Want healthy, natural food

Studies show millennials like to cook and prepare meals, but they’re not interested in fad diets, fat-free foods, or TV dinners. They also stay away from many other “helper” convenience foods, snack foods, or foods that satisfy “cravings.”

Nutritious foods like quinoa, avocados, and smoothies help millennials stick to their goal of maintaining a healthy lifestyle. Younger consumers are also more likely to buy kombucha and other probiotic-infused beverages.

When it comes to beverages, wine is a favorite among millennials -- especially rosé. The study found millennials are buying wine at a higher clip than older consumers.

Best days to buy millennial favorites

As part of the study, the researchers also identified the best days to save on many millennial shopping staples. Here are the best days to buy some of this generation’s favorite products::

• Avocados. 25 percent cheaper on Wednesday

• Coffee. Eight percent cheaper on Wednesday

• Craft beer. 14 percent cheaper on Thursday

• Hot sauce. 11 percent cheaper on Friday/Saturday

• Kombucha. 16 percent cheaper on Wednesday

• Quinoa. 15 percent cheaper on Thursday

• Rosé. Nine percent cheaper on Wednesday

Sunday is the worst day to buy avocados, coffee, craft beer, and hot sauce, according to the study. Tuesday is the worst day to buy kombucha and rosé, and Monday is the worst day to buy quinoa.

BMW of North America is recalling 672,775 model year 2006-2011 323i, 325i, 325xi, 328i, 328xi, 330i, 330xi, 335i, 335xi and M3, 2007-2011 328i xDrive, 335i xDrive and 335is and 2009-2011 335d vehicles.

The wiring and electrical connectors for the system that controls air flow for the heating and air conditioning system may overheat.

Wiring that overheats could cause the electrical connectors to melt, and increase the risk of a fire, even when the vehicle is unattended.

What to do

BMW will notify owners, and dealers will replace the wiring and electrical connectors, free of charge.

The recall is expected to begin December 18, 2017.

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

Médecins Sans Frontières (MSF), the French name for the organization Doctors Without Borders, has announced a dramatic reduction in what it pays for a powerful Hepatitis C treatment.

The treatment consists of two drugs–Gilead's sofosbuvir and Bristol-Myers Squibb's daclatasvir. Both are very expensive; $1000 per pill and $750 per pill, respectively. At that price, a 12-week combination treatment course comes to an astounding $147,000.

To be clear, MSF didn't have to pay that. Through its access program, it negotiated a much lower cost of between $1,400 to $1,800 per 12 week treatment. Now it has lowered the cost even more.

93 percent price reduction

By purchasing generics, MSF says it has reduced the treatment cost to as low as $1.40 a day, reducing the $1,800 cost to $120, a savings of around 93 percent.

Peter Maybarduk, Access Medical Director for Public Citizen, says what MSF has been able to accomplish holds lessons for U.S. policymakers who are trying to make prescription medicine more affordable for patients.

"It demonstrates what we have long known, in dramatic terms and with many lives on the line," Maybarduk told ConsumerAffairs. "Prices are not derived from research & development or manufacturing costs, and medicines can cost a small fraction of what they do. We can end treatment rationing if we stand up to the power of the drug corporations."

Maybarduk says that means using the federal government's broad rights to authorize generic competition. He also says states can request that licenses be extended to them so they can meet public need -- in this case making the hepatitis C cure more accessible.

Industry rationale for high prices

Pharmaceutical companies have said the cost of some medications are high because of the time and expense they put into their development. They point out that drug patents don't last forever and at some point the medicines will become generic.

MSF says direct-acting antiviral medicines (DAAs) like sofosbuvir and daclatasvir are a huge breakthrough in treatment, curing hepatitis C up to 95 percent of the time. But MSF says the price creates a barrier, severely limiting the number of patients who could afford the treatment.

MSF says it treats people with hepatitis C in 11 countries. Since 2015, the group says it has administered treatment to nearly 5,000 people with hepatitis C.

When it comes to flooring, some materials can withstand pet-related wear and tear better than others. But choosing durable flooring doesn’t have to mean sacrificing style or spending a fortune.

There are many types of pet-friendly flooring that blend durability, style, and value. Here are a few materials proven to stand up to pet messes, nails, or claws.

Natural materials

Natural flooring options -- such as stone, tile, or concrete -- are good choices for pet owners, since they are scratch-resistant and easy to clean.

Homeowners in warmer, southern climates can especially benefit from these types of flooring since they are naturally cool. Pet owners who live in chillier climates can easily add warmth to floors made of stone, tile, or concrete simply by covering them with inexpensive, easy-to-wash rugs.

However, there are a few drawbacks to choosing natural flooring options if you have pets. Tile can be slick and may lead to pet injuries if they skid across the floor. Stone can be uncomfortable for pets (especially senior animals) to sleep on, so be sure to provide comfortable bedding options.

Vinyl and laminate

Luxury vinyl is another durable and affordable option for pet owners. It can resist moisture, scratches, and dents, all while mimicking the look of stone or wood. It can also help cut down on the noise your pet’s nails make as they walk across the floor.

Laminate can also stand up to scuffs and scratches and is less expensive than wood, concrete, and most tile. Its main drawback is that the sealant that helps protect the laminate can be slippery to pets, so consider choosing a finish with some texture. Liquid messes can also damage laminate floors if they aren't cleaned up promptly.

Dense hardwood

Although hardwood floor is considered one of the least durable options for homes with pets, some species of wood are more pet-friendly than others.  

Pet owners thinking of going the hardwood route should consider choosing engineered hardwood with the most scratch-resistant finish available. Avoid soft woods (such as pine or fir) and opt for the toughest species; brazilian walnut, hard maple, or teak are good choices for pet owners.

Carpet is also considered one of the least pet-friendly flooring options, but there are a few options for those who love the look and feel of plush carpet. Carpet tiles are a smart choice in homes with pets, since individual tiles can be easily replaced if they fall victim to pet-related damage. Pet owners can also look for carpet specially designed to resist pet stains and odors.

A recent study finds parents often overspend on wedding expenses for their adult children.  

Last year, just 1 in 10 couples paid for their wedding entirely by themselves. The rest looked to mom and dad for financial help on the road to “I do” -- and many parents spent more on their child’s wedding than they had originally planned.

Parents of the bride and groom contributed a combined average total of about $19,000 to the wedding, or about two-thirds of the overall cost, a survey by WeddingWire.com found. Additional findings showed the bride’s parents tend to shell out almost twice as much as the groom’s family -- $12,000 compared to $7,000, on average.

Long-term consequences

One-third of parents surveyed said they spent more on their child’s wedding than they had initially budgeted. One in 5 used a credit card to help with their kids’ wedding costs, and 10 percent used money from a retirement account.

But dipping into your retirement fund to help pay for your child’s wedding probably isn’t a good idea. Offering to help pay for major expenses like your child’s wedding or college education may seem like a kind gesture in the short-term, but it could end up being a financial burden to your children in the future.

Experts argue that it’s more important to make sure you have enough money saved for retirement. By taking care of yourself first, you can help to ensure your kids won’t have to take care of you financially later in life.

Ways to save

It’s clear, however, that many parents want to help ensure their child has the wedding they always wanted. Over a third of parents surveyed took it upon themselves to initiate the conversation about paying for the wedding.

While there’s nothing wrong with helping to pay for an adult child’s wedding, parents should keep their budget in mind. Going overboard on wedding costs won’t benefit you or your child in the long run.

Here are a few ways to help keep wedding costs down:

• Change the day of the week. Weekend wedding dates are in high demand for vendors, which means you’ll likely end up paying more. But vendors are often willing to give you a better rate if you have the wedding on a weeknight or a Sunday.

• Find a local venue. A beautiful, budget-friendly venue may be closer than you think. Charming settings for an exchange of vows include parks, art galleries, community centers, local bed and breakfast inns, or even the backyard of a family friend or relative.

• Keep invites casual. In lieu of fancy engraved invitations, consider finding a cheap wedding invitation online. Printing your own invites from your home computer can be a big money-saver. Save even more by forgoing reply cards and asking guests to RSVP online or by telephone.

• Save on spirits. Alcohol is one of the biggest expenses to come out of a wedding reception. To keep your beverage budget to a minimum, consider limiting the types of alcohol that are available to guests at no cost. Instead, have a wider variety available at the cash bar. Making it a B.Y.O.B. affair can also help cut costs.

• Save in advance. If it’s important to you to help pay for your child’s wedding, then start saving a little from each paycheck as soon as possible. One in 4 parents in the WeddingWire survey set aside cash specifically for their child's wedding. More than half of those started saving when that child was a teenager.

Forty-five state attorneys general have expanded their lawsuit to include 18 generic drugmakers, charging the pharmaceutical companies conspired to fix prices at artificially high levels.

The defendants include Mylan Pharmaceuticals, maker of the allergy antidote injector EpiPen, and Teva Pharmaceuticals, which makes Copaxone. They're accused of dividing up the generic market to avoid competition -- charges all the companies quickly denied.

The expanded lawsuit is just the latest example of actions at the state level to curtail skyrocketing drug prices. Peter Maybarduk, Access Medical Director at Public Citizen, says the states are filling a void left by Congressional paralysis on the issue.

"The federal government has tremendous power in both Congress and the executive branch to curb high drug prices," Maybarduk told ConsumerAffairs. "The problem is the pharmaceutical lobby deploys millions of dollars to prevent or co-opt any reforms, despite the fact that Americans overwhelmingly support efforts to lower drug prices."

In October, pharmaceutical giant Allergan made headlines when it transferred its patents for the prescription medication Restasis to the Saint Regis Mohawk Tribe, then leased back the rights to sell the drug. The tribe claims immunity from patent challenges from generic drugmakers.

Anti-price gouging law

Maryland is the first state to pass a law against drug price gouging. It allows the state's attorney general to sue drug companies that arbitrarily raise prices on existing drugs. The pharmaceutical industry is challenging the constitutionality of the law.

Other actions at the state level include:

• California has passed a law requiring drug companies to explain the prices they charge for medicine
• Michigan Democrats have proposed a consumer protection board to review drug price hikes
• Louisiana, Nevada, Maryland, North Carolina and Vermont have all adopted so-called "transparency rules"

Transparency bills

"The most common bills we've seen out there are transparency bills, which say there needs to be disclosure of research and development costs, disclosure of drug prices to the various payers, or companies will be made to pay penalties," Maybarduk said.

There are even drug price referendums on the November ballot in California and Ohio. Maybarduk says both measures would link the price the states pay for drugs to the price drug companies charge the Veterans Administration.

In the absence of Congressional action, Maybarduk believes the states can make a difference in bringing down drug prices, or at least keeping them from going up so much.

"The states can create leverage in negotiations for procurement from the drug companies, they can require a bit more disclosure of pricing, as well as research and development data, and they can ask the federal government for further action through some of its executive agencies," he said.

Maybarduk says the Trump Administration and the states are both working on lowering drug prices, noting they both have the authority to take steps that, together, "could revolutionize the market" and bring down drug prices.

So far state efforts to contain healthcare costs have focused on prescription medication, but other costs may capture lawmakers' attention. A recent Johns Hopkins study found emergency rooms charge as much as 12 times what Medicare covered in 2013.