Current Events in July 2018

​More than 100 people in Iowa and Illinois have been sickened from a parasite possibly found in McDonald’s salads, regulators from the two states said Thursday.

In Illinois, 90 cases of illness caused by the cyclospora parasite have been reported since mid-May. Iowa has reported 15 cases since late June. One quarter of patients with the parasitic illness had eaten a McDonald’s salad prior to showing symptoms of the illness, according to Illinois officials.

"The initial investigation indicates a link to consumption of McDonald's salads produced for McDonald's restaurants. Approximately one-fourth of Illinois cases reported eating salads from McDonald's in the days before they became ill," the Illinois Department of Health said in a statement.

Cyclospora illness

The agency is asking consumers who ate a McDonald’s salad since mid-May and developed diarrhea and fatigue to contact a health care provider about testing and treatment.

Symptoms of the illness usually begin about week after consuming food contaminated by the parasite and include diarrhea, with frequent, sometimes explosive, bowel movements, according to the U.S. Centers for Disease Control and Prevention (CDC).

Other symptoms can include loss of appetite, weight loss, stomach cramps/pain, bloating, increased gas, nausea, and fatigue. The illness can last a few days or up to several months.

McDonald's has said it’s decided to stop selling salads at impacted restaurants until it switches to another lettuce blend supplier.

"We are in the process of removing existing salad blend from identified restaurants and distribution centers -- which includes approximately 3,000 of our U.S. restaurants primarily located in the Midwest,” the fast food chain said in a statement.

"McDonald’s is committed to the highest standards of food safety and quality control," the company continued. "We are closely monitoring this situation and cooperating with state and federal public health authorities as they further investigate."

Cyclospora is also the source of a recent outbreak linked to recalled Del Monte Fresh vegetable trays. The outbreak has sickened more than 200 individuals in four states.

The Federal Trade Commission (FTC) has wrapped up the first compliance sweep of automobile dealerships in a self-examination of the effectiveness of its recently revised Used Car Rule.

The updated version of the rule became official in January 2018 after nearly six years of the agency poring over public comments and working out all the ifs, ands, or buts.

The amended rule dictates that dealers have to display a revised window sticker called a “Buyers Guide” on each used car offered for sale. The guide contains consumer-focused items such as warranty information, how things like parts for the covered systems that fail during the warranty period will be taken care of, notices about recalls, and even suggestions to the consumer such as “ask the dealer if your mechanic can inspect the vehicle on or off the lot.”

How the FTC did its check-up

The compliance sweep combed 2,300 vehicles on the lots of 94 dealerships in 20 cities across the U.S. between April and June 2018. Those cities were Burbank, North Hollywood, Richmond, San Bruno, San Jose, San Pablo, and Van Nuys, California; Jacksonville, Florida; Chicago, Illinois; New York, New York (Queens); Brooklyn Heights, Cleveland, East Cleveland, and Cleveland Heights, Ohio; Arlington, Dallas, and Grand Prairie, Texas; and Lakewood, Puyallup, and Tacoma, Washington.

The results were promising -- inspectors found Buyers Guides on 70 percent of vehicles inspected -- but only about half of those displayed the revised Buyers Guide.

The FTC followed up with each dealership it surveyed with details of what the agency found and provided additional materials to help bring them into full compliance. If a dealer doesn’t satisfy the rule’s requirements, it can expect to write a check for up to $41,484 per violation. And, as CarMax found out, not being transparent about an automobile can also land a dealership in court.

Will the rule stick or is it just another piece of paper?

Michigan “Lemon Law” attorney Steve Lehto has mixed feelings about the new rule and suspects it could amount to little or no change in the marketplace.

“The Guide is one of the many documents car shoppers see in a flurry of paperwork and its importance is lost on most buyers,” Lehto told ConsumerAffiairs.

“Buyers routinely ignore the Buyer’s Guide. Strengthening the language was a good step, but a very small step in the bigger picture. Consumers need to be educated on their rights when it comes to used cars but sadly, most buyers don’t learn much from the Buyer’s Guide. This will probably be just as true now as it was with the previous Guide.”

The price of gasoline has remained stable over the last week, even as oil prices have remained volatile.

The AAA Fuel Gauge Survey shows the national average price of regular is $2.88 a gallon, up just two cents in the last seven days. Today's price is three cents cheaper than it was a month ago.

The national average price of premium, required by a growing number of high-performance engines, is $3.42 a gallon. The average price of diesel fuel is $3.17 a gallon.

Some of the most volatile gas prices can be found in Ohio, where the statewide average gained seven cents overnight, to $2.81 a gallon. That's still two cents lower than the price seven days ago.

While gasoline prices tend to drift lower toward the end of the summer driving season, AAA warns that this year could be different. The Energy Information Administration this week reported a huge drop in oil stockpiles -- the largest since October 2016.

According to the report, U.S. oil stockpiles are roughly 90 million barrels lower than they were at this time last year. At the same time, the government reports U.S. exports of oil and gasoline rose in the last week, even as domestic demand increased. Refineries are operating at 96.7 percent of capacity.

Heading into the weekend, motorists may find the lowest gas prices of the summer, as market forces may put upward pressure on prices, precisely at the time they have historically declined.

The states with the highest gasoline prices

• Hawaii ($3.76)
• California ($3.66)
• Washington ($3.43)
• Alaska ($3.40)
• Oregon ($3.31)
• Nevada ($3.24)
• Idaho ($3.14)
• Utah ($3.13)
• Connecticut ($3.08)
• Pennsylvania ($3.05)

The states with the lowest gasoline prices

• Alabama ($2.55)
• Mississippi ($2.57)
• South Carolina ($2.57)
• Louisiana ($2.60)
• Arkansas ($2.61)
• Virginia ($2.62)
• Tennessee ($2.63)
• Missouri ($2.65)
• Texas ($2.65)
• Oklahoma ($2.65)

MyNicNaxs of Deltona, Fla., is recalling all lots of various dietary supplements that were distributed nationwide.

The products contain active pharmaceutical ingredients (API) Sildenafil, Sibutramine, Diclofenac and/or Phenolphthalein not declared on the label.

The presence of these APIs render the products unapproved drugs for which safety and efficacy have not been established.

The following products, sold from January 2013, to December 2017, though the company website http://www.mynicnaxs.com, are being recalled:

What to do

Customers who purchased the recalled products should not consume them and discontinue use of the products immediately.

Consumers with questions may contact Mike Banner at (407) 791-3597 or Chevonne Torres ate (386) 337-8142, Monday – Friday, 9:00am – 5:00 pm, (ET).

General Motors is recalling 66 model year 2016-2018 Chevrolet Malibus.

During servicing, a Passenger Presence System (PPS) may have been installed that was not correctly calibrated to the vehicle's seat type.

As a result, the PPS may not properly identify an adult passenger from a child passenger in the front passenger seat, potentially causing the airbag to not deploy when it should, or to deploy when it shouldn't.

In the event of a crash, improper airbag deployment can increase the risk of injury.

What to do

GM will notify owners, and dealers will replace the front passenger PPS seat service kit, free of charge.

The manufacturer has not yet provided a notification schedule.

Owners may contact Chevrolet customer service at 1-800-222-1020. GM's number for this recall is 18208.

On Wednesday, Senators overwhelmingly voted in support of a resolution that would require Congress to give approval before President Trump imposes trade barriers on other nations.

The move comes a day after Trump escalated his trade war with China by publishing a list of $200 billion in Chinese goods that the White House says would be subject to a 10 percent tariff.

The non-binding resolution represents the first effort by Senators to push back against Trump’s tariffs. Lawmakers have previously expressed concern that retaliatory tariffs from China, the European Union, and elsewhere could take a toll on farmers and manufacturers and increase costs for consumers.

Symbolic resolution

However, the resolution -- which focused on Trump’s decision to levy steel and aluminum tariffs on Canada, Mexico, the European Union, and others -- was mostly symbolic.

Under the resolution, Congress would need to approve future tariffs issued under section 232 of the Trade Expansion Act of 1962. This section requires national security concerns to be the main reason for imposing the tariffs.

"This is a vote for Congress to assume its rightful role," said Sen. Bob Corker, R-Tenn, who led the resolution. “It’s a baby step.”

“This is not being imposed for national security reasons,” Corker said of the administration’s recent decisions. “This is an abuse of presidential authority.”

Although the resolution was voted on by a majority, 11 senators voted against it, including Sen. David Perdue, R-Ga. Purdue contended that the measure would stifle Trump’s freedom to negotiate, adding that Trump is working toward a larger goal of leveling a trade imbalance with U.S. trading partners.

“This is about making sure America is treated fairly,” Purdue said.

Corker concluded that the vote indicates “strong support” for giving Congress a larger role on tariffs. He said he will seek a binding vote.

A former Tesla employee, accused of sabotage by the company after he went public with a number of allegations, has now reportedly filed a "whistleblower tip" about Tesla with the Securities and Exchange Commission (SEC).

An attorney representing Martin Tripp told various news media outlets that his client has reported allegedly "dishonest" statements by Tesla concerning Model 3 production.

Tesla declined to comment but in late June sued Tripp, claiming the former employee hacked company systems and revealed confidential information to outside sources.

The suit accuses Tripp of writing software to hack into the company's system so he could transfer reams of data to “outside entities.” Among the information taken from the company, the suit alleges there were "dozens of confidential photographs and a video of Tesla's manufacturing systems."

Waste and safety issues

According to Tripp's attorney, his client has information about waste and safety issues occurring at Tesla's Nevada facility and wants to present it to the SEC.

Under the SEC's whistleblower program, an eligible whistleblower is "a person who voluntarily provides the SEC with original information about a possible violation of the federal securities laws that has occurred, is ongoing, or is about to occur."

The information provided by a whistleblower must lead to a successful SEC action resulting in an order of monetary sanctions exceeding $1 million. Eligible whistleblowers are entitled to compensation of between 10 and 30 percent of the fine.

Tesla has struggled to meet production goals for the Model 3, the company's popularly-priced electric car, starting at around $35,000. Last month the marketing firm Second Measure reported that Tesla had refunded the deposits that nearly a quarter of Model 3 customers had paid because the orders had been cancelled.

The company recently dropped the requirement that Model 3 customers place a refundable deposit to reserve their place in line. Instead, all Tesla customers will make an initial payment once production begins on the car they ordered.

Calling out critics

Tesla CEO Elon Musk has raised eyebrows on Wall Street recently by lashing out at analysts who have placed sell recommendations on Tesla stock, and at journalists who have written critical articles. After Business Insider wrote a series of articles based on information Tripp provided, Musk took to Twitter to suggest reporter Linette Lopez had paid Tripp for the information.

"Absolutely not," Lopez told CNBC on Wednesday. "I prefer to talk about the reporting and it's up to shareholders to decide whether the CEO of a $50 million company should spend his time yelling at reporters on Twitter."

Lopez said her reporting suggests that the lofty corporate mission of Tesla is not quite in line with the company's manufacturing policies.

California, the most populous state in the nation, has hit its 2020 target for cutting back on greenhouse gas emissions.

The California Air Resources Board released data this week that showed greenhouse gas emissions dropped to 424.9 million metric tons in 2016 -- below the target of 431 million metric tons for 2020. In 2015, the total was 441.4 million metric tons throughout the state. The greenhouse gas emissions dropped by 2.7 percent in 2016 and is on the right track to meet its goal of 40 percent reduction by 2030.

These numbers are less than the 431 million metric tons the state produced in 1990. When California’s greenhouse gas emissions levels peaked in 2004, regulators passed a law requiring  the state’s emissions to return to 1990 levels by 2020. Since the peak in 2004, emissions have dropped 13 percent.

“California set the toughest emissions targets in the nation, tracked progress, and delivered results,” said Governor Jerry Brown.

Former Governor Arnold Schwarzenegger signed the law in 2006 that committed California to setting such rigorous goals for 2020.

“Surpassing our 2020 emissions goal ahead of schedule while our economy grows by a nation-leading 4.9 percent and our unemployment rate is at a historic low should send a message to politicians all over the country: you don’t have to reinvent the wheel -- just copy us,” Schwarzenegger said.

How California did it

When looking at the state’s greenhouse gas emissions, the data has been broken up into seven different categories: transportation, industrial, agriculture, electric power, high GWP, commercial and residential, and recycling and waste.

Industrial and electrical power dropped the most since the state enacted its green initiative. The combination of an uptick in solar electricity and hydroelectric power led to a 15 percent decrease in using natural gas for electricity.

However, despite the positive steps, some categories continued to rise. Greenhouse gas emissions increased from passenger vehicles. Drivers in California are buying more gas-powered cars, despite the benefits and incentives of buying electric-powered vehicles, which is likely due to the higher prices of electric-powered vehicles.

Regulators say the report shows that states are capable of pursuing their own paths towards reducing greenhouse gas emissions. In order for California to reach its 2030 goal, greenhouse gas emissions must continue to drop as much as they did in both 2015 and 2016.

Uber has laid off its self-driving car operators in Pittsburgh, as the company continues to work on fine-tuning its autonomous vehicle program.

The company informed close to 100 autonomous vehicle operators that they’d be losing their jobs, though it is encouraging those employees to apply for other positions within the company.

Vehicle operators typically monitor Uber’s self-driving cars, and though the position will no longer exist, the company will be replacing these jobs with 55 “mission specialists.” According to Quartz, the specialists will provide more technical feedback to self-driving car developers and train in both on-road and advanced test-track operations.

“Our team remains committed to building safe self-driving technology, and we look forward to returning to public roads in the coming months,” Uber said in a statement.

Recent troubles with self-driving vehicles

The decision to terminate these positions comes after a fatal accident in Tempe, Arizona where one of Uber’s autonomous vehicles struck and killed a woman. The car had a human driver but was in autonomous mode at the time of the accident.

Following the accident, Uber shut down its self-driving vehicle operations in Arizona. At the time of that decision, the company laid off 300 employees across the state and began to focus its attention on self-driving car operations in other cities -- San Francisco, Toronto, and Pittsburgh.

The move to shut things down in Pittsburgh is especially significant because it is not only where Uber’s Advanced Technology Group is headquartered, but it’s also where testing began in September 2016.

Uber’s Arizona facility was the company’s largest testing ground, and similar to Pittsburgh, vehicle operators were the most affected by the shutdown.

Samsung announced on Thursday that it’s building a “customer care center” in Greenville, South Carolina as part of its continued effort to emphasize connectivity between its products and services.

The 34,928 square foot facility will help the company in its goal of creating what it calls “continuous user experiences.”

“The way consumers are using technology devices is changing. We are entering a world in which the way consumers use and switch technology products is constant and seamless,” said Michael Lawder, senior vice president of Customer Care at Samsung Electronics America.

“Today’s announcement goes beyond our commitment to providing superior care for Samsung products, and ensures that Samsung customers are able to receive world-class education, training and support to connect their products and maximize their use however and whenever they would like.”

Improving customer support

The new customer care center will create 400 additional jobs in South Carolina by 2020, 200 of which will be generated by the end of 2018.

The center will have two advanced training centers for agents, a display of the latest Samsung products, and a secure video chat support center. There will also be a “connected living lab” with products from both Samsung and its direct competitors to allow for on-site testing and comparisons.

Samsung’s new facility will focus on emphasizing how the company’s various products and services can interact and work together in a consumer’s home.

Today, nearly 71 percent of American households own at least one Samsung device, and nearly a third of households across the country own three or more Samsung products. As the company grows more popular, officials say they are striving to provide the customer service needed to advance the way customers use its products.

“At Samsung, our goal is to provide Samsung Galaxy owners with a customer first care experience that is as innovative as our products,” Lawder said.

Delta Air Lines has decided to pull back on its flight schedule starting this fall thanks to rising fuel costs.

In the wake of a $2 billion bump in its 2018 fuel bill and a $183 million dip from the June 2017 quarter, the company is hoping its short-term cuts will have a healthier impact long-term.

“We have seen early success in addressing the fuel cost increase and offset two-thirds of the impact in the June quarter,” said Ed Bastian, Delta’s Chief Executive Officer.  “With strong revenue momentum, an improving cost trajectory, and a reduction of 50-100 bps (base points) of underperforming capacity from our fall schedule, we have positioned Delta to return to margin expansion by year end.”

“Accelerating the recapture of the recent fuel price increases is the number one focus for our commercial team,” added Delta President Glen Hauenstein.

Mother Nature also played a hand in Delta’s revenue plunge when the January 2018 Nor’easter forced the airline to cancel more than 400 of its flights.

How does an airline turn something like this around?

No one’s saying whether Delta will try and recoup some of its losses by raising airfare, but fliers shouldn’t be surprised if it does.

Airlines have other course correction options, too. For example, an airline could establish routes to places where higher fares are a given and cut back on the smaller income-producing routes.

That may be Delta’s play here if its plans for global expansion are kept intact. The company began its global inroads in May when it launched a joint venture with Korean Air and instantly found its way into more than 50 Korean Air-operated markets.

The company also has plans in place for new service from Los Angeles to Paris and Amsterdam, Indianapolis to Paris, and Atlanta to Lisbon. Nonstop service between the United States and Mumbai, India; Osaka, Japan; and Seoul, South Korea are also penciled in for 2019.

The global market is a smart play as the middle class continues to grow in emerging economies like India and China, giving rise to an upswing in the number of fliers.

“It is believed that the global aviation industry will reach up to 33.8 billion US dollars in profits in 2018, up from only 8.3 billion US dollars in 2011,” wrote Statista.com in its review of airline profits. “Between 2017 and 2036, the number of airline passengers is expected to grow at a compound annual growth rate (CAGR) of 4.7 percent.”

Tech billionaire Elon Musk has pledged to fund the securing of clean water for any homes in Flint, Michigan that still have contaminated water.

“Please consider this a commitment that I will fund fixing the water in any house in Flint that has water contamination,” the Tesla and SpaceX CEO said in a tweet Wednesday. “No kidding.”

Musk followed up with another tweet acknowledging that many homes in Flint have safe water; however he said he would organize an effort to add filters to houses that are still dealing with foul water.

“Most houses in Flint have safe water, but they’ve lost faith in govt test results,” he said. “Some houses are still outliers. Will organize a weekend in Flint to add filters to those houses with issues & hopefully fix perception of those that are actually good.”

The Flint water crisis

Musk called on Flint residents to reply to his tweet with test results showing contamination above the recommended limits. "Creating email flint@x.com, but I'm in China so that won't be working until tomorrow," he added.

The Flint water scandal unfolded four years ago when lead leached from old pipes after the city began using the Flint River without adding corrosion-control chemicals.

Earlier this month, Musk supported a program to give bicycles to children in Flint. Musk’s latest effort to help residents of Flint with lead-tainted water comes days after his attempt to help a Thai youth soccer team that was trapped in a cave.

On Thursday morning, Musk tweeted that he will call Flint’s mayor on Friday to discuss the city’s specific needs.

Millions of Amazon Prime members are preparing for the retailer’s annual Prime Day, which has turned into one of the major shopping days of the year.

Things get started on Monday, July 16 at noon PT, running through July 17. In addition to the deals from Amazon, Prime members can also find savings on food products at Whole Foods.

Kimberly Palmer, NerdWallet's personal finance expert, says Amazon counts on the shopping day to build Prime membership as much as it does to sell things. For that reason, she says savvy shoppers may find some loss-leaders among the items being offered. But she says there are a few things consumers should keep in mind.

"Shoppers must have Amazon Prime, which costs $119 a year and is also available as a 30-day free trial, to get the deals," Palmer said in an email. "Returns to Amazon often require you to pay shipping, so be aware of this cost when ordering items you aren’t sure about."

Better deals than Black Friday

BestBlackFriday.com mostly focuses on the holiday shopping season, but company principal Phil Dengler says it also pays close attention to Prime Day, since there are so many deals available.

Dengler says the company's analysis shows that last year, 76 percent of Prime Day prices were better than those on Black Friday. In 2016, 77 percent of Prime Day offerings had lower prices than on the official kickoff to the holiday shopping season.

Dengler also says Amazon will use Prime Day 2018 to heavily promote its own line of electronic devices and smart speakers. In particular, he points to the Echo Show, Amazon's video smart speaker, which regularly sells for $229.99 but is on sale now through Prime Day at $129.99.

Predictions

Dengler also predicts shoppers will be able to purchase the second generation of the Echo for $69.99, instead of $99.99; and the Fire 10 tablet for $89.99, down from $149.99.

"In addition to the above-predicted prices, Amazon is likely to package many of these items together for further discounts," Dengler writes in a company blog. "You are also likely to see bulk discounts when purchasing two or more of select items."

To take advantage of Prime Day, Dengler advises members to make sure their account is in good standing. Also, make sure the account has accurate personal information and current payment information.

"Every second counts on Prime Day, and running around the house looking for your credit card could cause you to miss a deal," he said.

Palmer, meanwhile, says consumers should not overlook Amazon's competitors next week.

"As in previous years, we expect to see other big retailers, including Target, Walmart, and Best Buy, offer similar 'Black Friday in July' sales to compete with Prime Day," she said. "Consumers will be able to score deals on items ranging from electronics to clothing."

Afandina Halal of Long Island City, N.Y., is recalling an undetermined amount of raw poultry products that did not undergo federal inspection.

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

The following raw chicken items, produced and packaged from May 14 through June 22, 2018, are being recalled:

• 40-lb. bulk boxes containing “Afandina, Halal Wholesale Chicken, Boneless Leg Meat”
• 40-lb. bulk boxes containing “Afandina, Halal Chicken, Whole chicken Legs”
• 40-lb. bulk boxes containing “Afandina, Halal Chicken, Chicken Cutlets”

The recalled products, bearing establishment number “P-51183” inside the USDA mark of inspection, were shipped to retail locations in New York City.

What to do

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

Consumers with questions about the recall may contact Saeed Hassanein at (718) 433-4402.

Chrysler (FCA US LLC) is recalling 1,837 model year 2018 Dodge Journeys and RAM 1500s, 2500s and 3500s.

The backup camera may experience a loss of image display while backing up, increasing the increase the risk of a crash.

What to do

Chrysler will notify owners, and dealers will replace the rearview mirror, free of charge.

The recall is expected to begin August 3, 2018.

Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is U56.

The Federal Communications Commission (FCC) wants to change its rules for handling informal consumer complaints, and Democrats in Congress are concerned that the proposed changes could harm consumers.

On Thursday, the FCC will vote to finalize a proposal that will "streamline and consolidate the procedural rules governing formal complaints.” Under the revised rules, informal consumer complaints would be sent directly to the company with which a consumer has a telecommunications-related issue.

If the issue isn’t resolved in the way the consumer hoped, they can file a formal complaint. However, they will have to pay $225 filing fee in order to share their opinion with the FCC’s staff.

“At a time when consumers are highly dissatisfied with their communications companies, this abrupt change in policy troubles us,” Democrats on the Energy and Commerce Committee wrote in a letter addressed to FCC chairman Ajit Pai.

Democrats “deeply concerned”

The letter, written by Reps. Frank Pallone of New Jersey and Mike Doyle of Pennsylvania, pointed out that the revised rules could potentially harm consumers by stifling their voices.

"As the chief communications regulator, the FCC plays a critical role in ensuring consumers -- including families, small businesses and struggling Americans -- get fair and honest treatment from their service providers," the representatives said in the letter.

"We worry that the proposed change signals that the FCC no longer intends to play this role, and will instead simply tell consumers with limited means and time that they need to start an expensive and complicated formal legal process."

FCC officials maintain that the revised rules won’t affect the informal complaint process; the changes will simply streamline the agency's formal complaint system.

"The item would not change the Commission's handling of informal complaints," an FCC spokesman told CNET. "The Democrats' letter is based on a fundamental misunderstanding of the draft order."   

The agency has previously faced accusations that it deliberately spread misinformation about supposed cyberattacks on its comment systems.