Current Events in March 2018

If you were looking for a job last month, chances are you found one.

The Labor Department reports the U.S. economy added 313,000 non-farm jobs in February, leaving the unemployment rate unchanged at 4.1 percent.

The economy added jobs in construction, retail trade, professional and business services, manufacturing, financial activities, and mining.

However, fewer workers got raises last month. The report shows wages rose just .01 percent. Economist Joel Naroff, of Naroff Economic Advisors, calls it a "bizarre" set of numbers, noting that job growth was through the roof while wages went nowhere.

"The increases (in jobs) were not just in unskilled sectors, so it is hard to understand why businesses have been saying they cannot find qualified workers," Naroff told ConsumerAffairs. "The rise in average hours worked was surprising given the large number of new workers. That implies a huge increase in total hours worked, which would indicate growth was also robust."

Report full of surprises

Naroff says the report is full of surprises. For example, he wonders why retailers suddenly added 50,000 new workers. And those 61,000 new construction workers, he says, could disappear in March if weather remains nasty.

"Let’s just say this was a really amazing report but before we get too carried away, let’s see what happens in March," Naroff said. "I am glad to see all the jobs added, but I am cautious about whether anything close to this level gain is at all supportable."

Among demographic groups, the jobless rate for African Americans fell to 6.9 percent but remained fairly steady for all other groups. The number of long-term unemployed -- those out of work for 27 weeks or more -- was essentially unchanged at 1.4 million. The labor force participation rate, while still very low, rose 0.3 percent last month.

After the gains in construction and retail, sectors posting the biggest job additions were professional and business services -- up 50,000 -- and manufacturing, which added 31,000 jobs.

Interstate Meat Distributors of Clackamas, Ore., is recalling approximately 14,806 pounds of ground beef and pork products that may be contaminated with E. coli O157:H7.

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

The following raw ground beef and pork item, produced and packaged on February 10, 2018, and February 12, 2018, are being recalled:

• 2.25-lb. wrapped packages of fresh “ALL NATURAL EXTRA LEAN GROUND BEEF” containing package code 04118 and with 96% lean and 4% fat on the label.
• 2.25-lb. wrapped packages of fresh “ALL NATURAL GROUND BEEF CHUCK” containing package code 04118 and with 80% lean and 20% fat on the label.
• 2.25-lb. wrapped packages of fresh “GROUND BEEF AND PORK BLEND” containing package code 04118 and with 80% lean and 20% fat on the label.
• 2.50-lb. bag containing 10 quarter pound frozen “BROTHERS CHOICE 85% LEAN ANGUS GROUND BEEF PATTIES” containing package code 04318.

The recalled products, bearing establishment number “965” inside the USDA mark of inspection, were shipped to retail locations in Oregon, Utah and Washington state.

What to do

Customers who purchased the recalled should not consume them, but discard them or return then to the place of purchase.

Consumers with questions may contact Interstate Meat Distributors at (503) 656-0633

RockyMounts is recalling 565 Split Rail 1.25" bicycle racks, part number 11300; MonoRail 2" bicycle racks, part number 10004; SplitRail 2" bicycle racks, part number 11400; and MonoRail 1.25" bicycle racks, part number 10003.

The weld that attaches the hitch tube to the pivot bracket may crack and fail allowing the upper portion of the rack with the bicycles attached to separate from the vehicle.

If a portion of the rack and the attached bicycles separate from the vehicle, they can become a road hazard, increasing the risk of a crash.

What to do

RockyMounts will notify owners and will provide a new rack base, free of charge.

The recall is expected to begin March 23, 2018.

Owners may contact RockyMounts customer service at 1-303-402-0190.

Ford Motor Company is recalling 2,100 model year 2017-2018 Ford Taurus vehicles with mechanical key ignition systems.

The keys may be able to be removed from the ignition when transmission is not in the PARK position.

If the key is removed from the ignition while the vehicle is not in the PARK position and the parking brake is not applied, the vehicle may roll away, increasing the risk of a crash.

What to do

Ford will notify owners, and dealers will replace the shifter assembly, free of charge.

The recall is expected to begin March 19, 2018.

Owners may contact Ford customer service at 1-866-436-7332. Ford's number for this recall is 18C02.

Linked to hundreds of injuries

Keeping the process moving

Health insurance provider Cigna has announced it is acquiring pharmacy benefits manager Express Scripts for $67 billion, continuing the trend of consolidation within the healthcare industry. The move, following on the heels of Aetna's merger with CVS Health, could lower costs for consumers, at least in theory.

Because prescription drugs are a major cost driver in healthcare, the combination of medical claims and pharmacy under one roof has the potential to create cost-lowering efficiencies. It also gives the merged companies more bargaining power when it comes to negotiating drug prices.

David Cordani, Cigna's CEO, believes the merger will improve quality and increase affordability for consumers.

“This combination accelerates Cigna’s enterprise mission of improving the health, well-being and sense of security of those we serve, and in turn, expanding the breadth of services for our customers, partners, clients, health plans and communities," Cordani said.

Cordani says the combined enterprises will expand the health services that are provided, deliver greater consumer choice, and deliver more personalized value, which will create “significant benefits to society and differentiated shareholder value.”

What it could mean

The two companies say the merger would lead to a full suite of medical, behavioral, specialty pharmacy, and other health engagement services to give customers more options when it comes to their healthcare.

The two companies also say the combination would be a means to provide greater alignment and interaction between patients and their healthcare providers. The goal, the companies say, is to reduce complexity and create better outcomes.

If the merger is finalized, the combined companies will operate under the name Cigna and be based at Cigna's current corporate headquarters in Bloomfield, Connecticut.

Cigna and Express Scripts are in complementary, not competing businesses. Cigna offers various health insurance policies to consumers. Express Scripts is a pharmacy benefit manager (PBM) that administers prescription drug programs for a wide variety of clients, from health insurers to government agencies.

The merger still must get a green light from government regulators. A year ago, regulators blocked Cigna's attempt to purchase rival health care provider Anthem.

The U.S. Securities and Exchange Commission is turning up the heat on its promise to apply securities laws to everything relating to cryptocurrency.

The SEC’s primary concern is protecting investors and preventing fraudulent and manipulative trading practices. The agency views cryptocurrency as a “security” -- just like any stock, bond, or debenture -- and mandates that any exchange platform dealing with the new digital cash needs to register with the SEC as a national securities exchange or be exempt from registration.

Many of the unregistered platforms give investors the power to buy and sell digital assets hastily. While some of these platforms claim to use strict guidelines, the SEC believes many of those so-called standards are out of sync with the integrity of the listing standards that national securities exchanges have to subscribe to.

SEC urges caution to protect investors

Cryptocurrency has been quite a temptress for the daring investor, and everybody seems to know somebody else who’s got a fantastic crypto story to tell. The SEC hears those stories, too, but it’s also in a position to objectively separate the ripe from the rip-off. To anyone who wants to trade digital assets online, the SEC thinks there are 13 questions you should ask.

1. Do you trade securities on this platform?  If so, is the platform registered as a national securities exchange?   

2. Does the platform operate as an ATS?  If so, is the ATS registered as a broker-dealer and has it filed a Form ATS with the SEC?

3. Is there information in FINRA's BrokerCheck about any individuals or firms operating the platform?

4. How does the platform select digital assets for trading?

5. Who can trade on the platform?

6. What are the trading protocols?

7. How are prices set on the platform?

8. Are platform users treated equally?

9. What are the platform's fees?

10. How does the platform safeguard users' trading and personally identifying information?

11. What are the platform's protections against cybersecurity threats, such as hacking or intrusions?

12. What other services does the platform provide?  Is the platform registered with the SEC for these services?

13. Does the platform hold users' assets?  If so, how are these assets safeguarded?

“We encourage market participants who are employing new technologies to develop trading platforms to consult with legal counsel to aid in their analysis of federal securities law issues,” the SEC advised in a statement on the matter. The agency said that consumers who have questions should reach out to the SEC at FinTech@sec.gov.

BitCoin feels the pinch immediately

On news that the SEC would be insisting on proper registration for digital platforms, the mother of all cryptocurrencies -- Bitcoin -- dropped sharply. The value of the digital asset fell as much as 13 percent before the end of the trading day on Wednesday to finish at $9,856, according to CoinDesk.

It was only a month ago that the cryptocurrency world was in panic mode when Bitcoin fell hard and fast from its December high of near $20,000 to under $6,000.

A Harvard economics professor predicts regulation will trigger a falloff for Bitcoin. Kenneth Rogoff, the International Monetary Fund’s (IMF) former chief economist, told CNBC. “I would see $100 as being a lot more likely than $100,000 10 years from now.”

In celebration of International Women’s Day (Mar. 8), McDonald’s decided to flip its trademark golden arches upside down. The fast food chain changed its logo from a golden “M” into a golden “W” at one of its California locations “in celebration of women everywhere.”

Additionally, McDonalds will flip its logo upside on all of its social media channels, and 100 McDonald's locations across the country will have special “packaging, crew shirts and hats and bag stuffers.”

"For the first time in our brand history, we flipped our iconic arches," McDonald's Chief Diversity Officer Wendy Lewis said in a statement. "From restaurant crew and management to our C-suite of senior leadership, women play invaluable roles at all levels and together with our independent franchise owners we're committed to their success."

Social media backlash

Although the move was intended to honor “the extraordinary accomplishments of women everywhere,” some consumers took to social media to point out the implications of flipping the “M.”

“Now that it was inverted to make a ‘W’ for women, reversing it will make it an ‘M’ for men. Forever,” said one Twitter user.

Others said McDonald’s should prove that it honors and celebrates women by paying its staff more.

“You could also provide livable wages, better benefits, equal pay, legitimate career paths for the future, paid maternity leave…Or you can flip a logo upside down that works too,” another user quipped.

New research suggests that we’re not addicted to smartphones, but are addicted to the social interaction they can help facilitate.

After reviewing literature on the dysfunctional use of smart technology, researchers from McGill University suggested that “there is nothing inherently addictive about mobile technology.” Rather, it’s the reward of connecting with others that paves the way to addictive relationships with smartphones.

The study suggested that people who can’t seem to look away from their smartphone may be “hyper-social,” not anti-social as some may think.

Evolutionary roots

All addictive smartphone functions share a common theme, which is to help people connect with other people. The strong urge to connect with others is rooted in our evolutionary past, the authors explained.

Humans evolved to be a uniquely social species and require constant input from others to seek a guide for culturally appropriate behavior, as well as find meaning, goals, and a sense of identity.

While smartphones can satisfy a healthy need for socialization, the speed and scale of hyper-connectivity can “be hijacked to produce a manic theatre of hyper-social monitoring," said Samuel Veissiere, Professor at the McGill University in Canada.

Appropriate smartphone use

The study authors said there is "nothing abnormal” about seeking self-worth through other people’s point of view. However, when the brain’s reward system is forced into overdrive due to smartphone use, that can lead to unhealthy addictions.

"There is a lot of panic surrounding this topic," says Professor Veissière. "We're trying to offer some good news and show that it is our desire for human interaction that is addictive -- and there are fairly simple solutions to deal with this."

The study, for example, recommends turning off push notifications and setting up appropriate times to check your phone. Workplaces can adopt policies "that prohibit evening and weekend emails,” the researchers said.

"Rather than start regulating the tech companies or the use of these devices, we need to start having a conversation about the appropriate way to use smartphones," Veissière said. "Parents and teachers need to be made aware of how important this is."

The full study has been published online in Frontiers in Psychology.

Researchers at the Feinstein Institute for Medical Research say new blood pressure guidelines, that have lowered targets for blood pressure readings, may be causing more harm than good, at least for many patients.

Writing in the Journal of the American College of Cardiology, Dr. Joseph Diamond and colleagues conclude that as many as 10 million people receive unnecessarily aggressive blood pressure treatments.

What constitutes high blood pressure has been somewhat controversial for a decade or more. Medical groups have lowered the threshold for hypertension, or high blood pressure, from a reading of 140/90 to 130/80. Under the new guidelines, a reading of 120/80 is considered healthy.

After much debate and research, the new guidelines were formalized last year and backed by the American Heart Association, American College of Cardiology, and nine other professional health organizations. But the lower threshold now means 46 percent of American adults -- up from 32 percent previously -- are now considered hypertensive and in need of prescription medication.

'Not warranted in all individuals'

The Feinstein Institute researchers concluded that people at higher risk of cardiovascular disease could benefit from the lower blood pressure threshold, but they say patients at low risk might actually suffer harm.

"After looking at data, my colleagues and I recommend using a different model for patients with high blood pressure than what was most recently recommended," Diamond said. "Identifying patients by degree of future cardiovascular risk identifies those who will most benefit from intensive blood pressure treatment goals. We do not feel that aggressive blood pressure lowering is warranted in all individuals."

Based on a 10-year cardiovascular disease risk, the researchers conclude that aggressively trying to lower blood pressure in patients with a risk greater than or equal to 18.2 percent would be mostly beneficial. However, those with less risk would be better off using the previous blood pressure management approach.

Recent controversy

This is not the first time the medical community has questioned aggressively low blood pressure standards. In 2014, researchers at Wake Forest Baptist Medical Center reported that lowering systolic blood pressure below 120 did not appear to provide additional benefit for patients.

“Frequently we treat patients’ blood pressure to the lowest it will go, thinking that is what’s best,” lead author Carlos J. Rodriguez, M.D., said at the time.

Earlier that year, Duke University researchers ran an analysis and concluded that a proposal to ease the guidelines, and thereby raising the threshold of acceptable blood pressure to previous levels, would mean an estimated 5.8 million adults no longer needed blood pressure medicine.

For the first time in 130 years, Coca-Cola plans to sell a beverage containing alcohol.

The soft drink company is experimenting with Chi-Hi, a type of low-alcohol, carbonated beverage popular in Japan. It consists of flavored carbonated water and distilled shochu alcohol. Jorge Garduño, president of Coca-Cola Japan, disclosed the plans during a question and answer session on the company's website.

"This is a canned drink that includes alcohol," Garduño said. "Traditionally, it is made with a distilled beverage called shōchū and sparkling water, plus some flavoring. We haven’t experimented in the low alcohol category before, but it’s an example of how we continue to explore opportunities outside our core areas."

The new product is highly unlikely to show up on store shelves in the U.S., or most other countries. Japan, apparently, is a unique situation. Garduño says it is not uncommon in Japan for soft drinks and alcoholic beverages to appear side-by-side in stores.

"It makes sense to give this a try in our market," he said. "But I don’t think people around the world should expect to see this kind of thing from Coca-Cola."

Coke's history

Coke was invented in the late 19th century by a Civil War veteran and was first produced in a drug store and used for medicinal purposes. It's initial popularity stemmed from the belief at the time that carbonated water was a health benefit. Its inventors made a number of health claims for the product, including that it could cure many diseases.

Coke has ventured into other areas of beverage production in recent years. It now makes or markets DaSani water; Powerade, a drink for athletes; Fairlife milk; Kia-Ora, a fruit-based soft drink; Nestea, an iced tea beverage; and Hi-C fruit drinks.

Olli Salumeria Americana of Oceanside, Calif., is recalling approximately 3,946 pounds of ready-to-eat meat products.

The products may be adulterated with Listeria monocytogenes.

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

The the following not-heat-treated, shelf-stable, ready-to-eat items, packaged on January 19, 2018, are being recalled:

• 6-oz. packages of “Gusto NAPOLI APPLEWOOD-SMOKED SALAME” containing lot code 1000012821.
• 6-oz. packages of “Gusto CHORIZO SMOKED PAPRIKA” containing lot code 1000012812.
• 6-oz. packages of “Gusto SOPRESSATA BLACK PEPPERCORN SALAME” containing lot code 1000012811.
• 6-oz. packages of “Gusto TOSCANO FENNEL POLLEN SALAME” containing lot code 1000012805.
• 6-oz. packages of “Gusto PEPPERONI CLASSICALLY AMERICAN” containing lot code 1000012804.
• 175-gram packages of “OLLI MOLISANA PEPPER + GARLIC SALAMI” containing lot code 1000012808.
• 175-gram packages of “OLLI NAPOLI APPLEWOOD-SMOKED SALAMI” containing lot code 1000012810.
• 175-gram packages of “OLLI CALABRESE SPICY SALAMI” containing lot code 1000012807.

The recalled products, bearing establishment number “M-45334” inside the USDA mark of inspection, were shipped to retail locations nationwide and exported to Canada.

What to do

Customers who purchased the recalled products should not consume them, but discard them or return them to the place of purchase.

Consumers with questions regarding the recall may contact Olli Salumeria Americana at oliviero@olli.com.

Sumitomo Rubber USA is recalling 138 Kelly Armorsteel KDA tires, size 11R22.5 Load Range G, manufactured December 4, 2016, to December 17, 2016.

The tires do not have the tire size, maximum load rate, speed restriction, number of plies, the word "tubeless" and the load range information marked on both sidewalls.

If the tires are missing specific information such as the maximum load rate, they may be overloaded, increasing the risk of a crash.

What to do

Sumitomo will notify owners, and dealers will inspect and, as necessary, replace the tires, free of charge.

The recall is expected to begin in March 2018.

Owners may contact Sumitomo customer assistance at 1-800-592-3267.

Hyundai Motor America is recalling 154,753 model year 2011 Sonatas. In the event of a crash, the airbag control unit (ACU) may short circuit, preventing the front airbags, seat belt pretensioners, and side air bags from deploying.

If the front air bags, seat belt pretensioners, and side airbags are disabled, there is an increased risk of injury to the vehicle occupants in the event of a crash.

What to do

The remedy for this recall is still under development.

The recall is expected to begin April 20, 2018.

Owners may contact Hyundai customer service at 1-855-371-9460. Hyundai's number for this recall is 174.

Amazon announced today that recipients of Medicaid will be eligible for a discounted Prime membership of $5.99 per month -- less than half the normal rate of $12.99 a month.

The move is the latest push by the e-commerce giant to reach lower-income customers. Last summer, Amazon joined a USDA pilot program that allows people receiving government food benefits to buy groceries through online markets like Amazon's FreshDirect or Walmart.

The new program is an extension of the Prime membership discount program and comes with the same perks, including free two-day shipping, Prime Video, Prime Music, and Prime Now.

No annual commitment is required, and customers can get the discount for up to four years. Customers can also sign up for a free 30-day trial of the service.

Reaching more customers

For years, Amazon has been taking steps to attract more customers and has focused efforts on targeting low-income Americans and millennials.

On Monday, a report in the Wall Street Journal suggested Amazon was considering a debit-card like program for people without access to credit cards. In November, Amazon launched a program where people could add cash to their Amazon balance at participating convenience, grocery and drug stores.

Discounted Prime memberships are available now to anyone with a valid Medicaid card or Electronic Benefits Transfer (EBT) card.

BlackBerry Limited is suing Facebook over patent infringement, according to a lawsuit filed in a U.S. District Court in California.

In the lengthy 117-page lawsuit, BlackBerry claims that Facebook “created mobile messaging applications that co-opt Blackberry’s innovations,” and use a number of patents that made BlackBerry’s products “such a critical and commercial success in the first place.”

"[W]e have a strong claim that Facebook has infringed on our intellectual property, and after several years of dialogue, we also have an obligation to our shareholders to pursue appropriate legal remedies," BlackBerry said in a statement.

Patents held by BlackBerry include message encryption, battery and message notifications, and combining messaging with gaming.

Facebook dismisses claims

Blackberry contends that Facebook, its Instagram photo sharing app, and its WhatsApp messaging service use technologies -- such as cross-platform sharing -- that are based on existing Blackberry patents.

"As a cybersecurity and embedded software leader, BlackBerry's view is that Facebook, Instagram, and WhatsApp could make great partners in our drive toward a securely connected future, and we continue to hold this door open to them," BlackBerry said.

Facebook dismissed the claims and said it plans to fight back.

“BlackBerry’s suit sadly reflects the current state of its messaging business,” said Facebook’s Deputy General Counsel Paul Grewal. “Having abandoned its efforts to innovate, BlackBerry is now looking to tax the innovation of others. We intend to fight.”

Blackberry is seeking “redress for the harm caused by Defendants’ unlawful use of BlackBerry’s intellectual property,” which may include injunctive relief and damages accounting for lost profits.

Uber’s vision for self-driving trucks and truck drivers working together to move freight around the country has become a reality. As of yesterday, those self-driving trucks are on the road and making runs in Arizona. Uber’s been quietly testing the program’s viability in the Grand Canyon state since last November, and it feels it’s ready for prime time.

When Uber bought Otto, a self-driving trucking company, less than two years ago, it wanted the world to know that the move was a “big deal.”

“In order to provide digital services in the physical world, we must build sophisticated logistics, artificial intelligence and robotics systems that serve and elevate humanity,” said Travis Kalanick, Uber’s then-CEO and co-founder.

“Together, we now have one of the strongest autonomous engineering groups in the world; self-driving trucks and cars that are already on the road thanks to Otto and Uber’s Advanced Technologies Center in Pittsburgh; the practical experience that comes from running ridesharing and delivery services in hundreds of cities; with the data and intelligence that comes from doing 1.2 billion miles on the road every month.”

An example of self-driving trucking works

The new self-driving technologies used in Uber’s fleet still currently require drivers to make deliveries and sync up with others on the road. Let’s take an Uber trucker named Jenny as an example.

1. Jenny picks up a load in Los Angeles using Uber Freight. Her destination is Yuma, Arizona where she’ll complete a transfer.

2. Right after Jenny crosses the Arizona state line, she meets up with Hank who’s manning one of Uber’s self-driving trucks. Hank’s been on a long haul drive from Chicago.

3. Molly and Hank exchange cargo loads like they would in a normal, non-automated load-exchange scenario.

4. After the transfer, Hank heads back east with his new load in a self-driving Uber truck and Jenny goes back to California with her new load in a traditional, human-operated truck.

Uber’s self-driving trucks are fitted with hardware, software, and sensors tasked with detecting obstacles, identifying the best navigation paths, and interpreting relevant signage.

However, the system is not literally “hands-off.” While the automated system takes control of the vehicle’s accelerating, braking, and steering, there’s still a driver behind the wheel monitoring the driving and ready to take over the controls if something goes wrong.

Is this the end of the road for truckers?

Just like Uber and Lyft signaled a change for taxis, Google, Uber, Tesla, and the major truck manufacturers are gazing toward a future where the 2 million truckers of today will be demoted, at the very least, to co-pilots.

“They know their game is over,” observed one trucker watching Uber’s video overview of its new service. “I drove semi for like 9 months and then realized these geeks from MIT and Harvard are going to change this industry. Future truckers will only do city work until these geeks figure out how to navigate big semi in the city or companies move their yards outside the city limits.”

Despite getting the self-driving truck idea to market first, Uber no doubt sees other competitors over its shoulders. It’s a technological footrace with all the markings of being contentious. Just last month, Uber handed Google $245 million in Uber stock to settle the latter’s claims that Uber had tried to steal trade secrets relating to Waymo, Google’s autonomous car development company.

And, there’s a lot to be had, too. Trucking is a $700 billion industry, with more than $200 billion of that going to drivers. Grabbing a piece of that driver compensation is a big haul for any company.

Winning points for reliability