Current Events in November 2018

More consumers are shopping online, not just at Amazon but at brick and mortar retailers too. But getting those packages delivered is going to cost more.

FedEx has announced an increase in shipping rates for FedEx Express, FedEx Ground, and FedEx Freight starting January 7.

The company is increasing rates for FedEx Ground and FedEx Home Delivery an average of 4.9 percent for both domestic and export/import services. It's raising FedEx Freight shipping rates an average of 5.9 percent.

“This rate change applies to eligible FedEx Freight shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico,” the company said in a statement.

Also included in the rate adjustment are changes to shipping surcharges and fees, FedEx retail rates, and FedEx One Rate pricing.

USPS rate hike

The FedEx rate hikes come on the heels of an announcement by the U.S. Postal Service (USPS) that it's increasing the price of first class postage from 50 cents to 55 cents, effective in January. USPS has recently lost money on first class postage while its package delivery service has continued to be profitable.

The FedEx rate hikes may or may not affect consumers shopping online, at least not directly. Increasingly online merchants provide free shipping on most orders and have a hard time passing on the shipping costs by raising their retail prices.

While FedEx's rate hikes won't affect Amazon this holiday season it will make the online retailer's latest promotion more expensive next year. This week Amazon announced it is offering free shipping to everyone – not just Prime customers – and without a required minimum purchase.

As shipping costs increase, consumers should always take advantage of free shipping offers. It may mean waiting until your complete order reaches the minimum threshold to qualify for free shipping.

When it comes to satisfaction with a home security service, J.D. Power and Associates has rankedBrinks Home Security number one.

The award did not say Brinks had the best product, only that it excelled in all the categories it measured – customer service; usage; billing and payment; and enrollment.

"We are relentlessly dedicated to protecting our customers by providing smart home security solutions that feature our professionally trained team,” said Brinks Home Security CEO Jeff Gardner.

The home security system has gotten a lot more competitive in recent years as emerging technology has created more opportunities for new companies to take on industry veterans. When considering the options, Erib Raub, alarm and security systems contributing editor at ConsumerAffairs, says a shopper needs to decide what level of protection they need.

“Do you want to set up a few security cameras to capture activity while you’re away from home? Or do you need a professionally monitored home alarm system that will alert the authorities in the event of a break-in?” she writes.

Brinks falls into the latter category. It offers video monitoring, as well as home automation and 24/7 professional monitoring. The J.D. Power study found AT&T Digital Life and ViVent Smart Home tied for second in overall customer satisfaction. ADT was fourth, followed by Xfinity Home Security.

The rated systems

Brinks Home Security offers two home security plans, with the cheapest alarm monitoring starting at $19.99 per month for a three-year agreement. Cellular backup included with monthly security monitoring cost.

AT&T Digital Life customers pay $549.99 upfront for smart monitoring equipment. Users can access monitors and control smart devices using an app on their AT&T smartphones.

Vivent Smart Home offers customizable alarm system plans starting at $39.99 per month with a 42-month minimum contract. Each system comes with a limited lifetime warranty.

ADT provides three home security packages starting at $36.99 per month with a three-year contract. Each package comes with cellular connection and a six-month money-back guarantee.

Xfinity Home Security provides 24/7 monitoring , giving customers real-time notification of activity in the home, such as open doors and windows and when motion is detected.

There are many more providers of home security systems than these five companies. Check out some of the rest, including what ConsumerAffairs readers have to say about them, in our Home Alarm and Security Systems section.

Hyundai Motor America is recalling 8,204 model year 2019 Hyundai Santa Fe vehicles.

The Side Curtain AirBag (SCAB) mounting bolts may interfere with and damage the airbags during deployment.

If the airbags become damaged during deployment, they may not inflate properly, increasing the risk of injury.

What to do

Hyundai will notify owners, and dealers will install a protective cover over the SCAB installation bolts, free of charge.

The recall is expected to begin November 30, 2018.

Owners may contact Hyundai customer service at 1-855-371-9460. Hyundai's number for this recall is 177.

Chrysler (FCA US LLC) is recalling 10,021 model year 2017-2018 Chrysler Pacifica Plug-in Hybrid Electric vehicles (PHEV).

After the vehicle has been operating in PHEV propulsion mode, the gas-fueled engine may not restart properly resulting in unburned fuel entering the exhaust catalyst.

The improperly started engine could result in a loss of motive power increasing the risk of a crash or the unburned fuel in the catalyst may ignite increasing the risk of a fire.

What to do

Chrysler will notify owners, and dealers will update the powertrain controller module software, and inspect and replace the catalytic converter as necessary, free of charge.

The recall is expected to begin December 8, 2018.

Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is U94.

Fantasia Accessories Ltd., of New York is recalling about 22,500 slap bracelets.

The metal wristband can pierce the protective fabric around it and expose sharp edges, posing a laceration hazard to young children.

The firm has received four reports of the bracelets piercing the fabric cover, resulting in five injuries of minor cuts to consumers’ hands or wrists.

This recall involves children’s furry critter plush slap bracelets in panda, unicorn and heart designs.

The recalled bracelets are made of a metal band covered with a protective fabric.

The bracelets, manufactured in China, were sold exclusively at Target stores nationwide and online at Target.com in July 2018 for about $5.

What to do

Consumers should immediately stop using the recalled bracelets, take them away from young children and contact Fantasia Accessories to receive a free replacement product.

Consumers may contact Fantasia Accessories at (800) 624-4826 from 9 a.m. to 5 p.m. (ET) Monday through Friday, by email at info@fantasia.com or online at www.fantasia.com and click on “Important Safety Recall Information” for more information.

Nutrisca of Saint Louis, Mo., is recalling one formula of Nutrisca dry dog food.

The products contain elevated levels of Vitamin D.

When consumed at very high levels, Vitamin D can lead to serious health issues in dogs including renal dysfunction.

The following products, with a Best By Date code of February 25, 2020, through September 13, 2020, on the back or bottom of the bag, are being recalled:

The recalled products were distributed to retail stores natiowide.

What to do

Customers who purchased the recalled products should stop feeding them and dispose of them or return them to the place of purchase for a full refund.

Consumers with questions may contact Nutrisca at (888) 279-9420 from 8 AM to 5 PM (CST) Monday through Friday, or by email at consumerservices@nutrisca.com for more information.

The Supreme Court has refused to stop a lawsuit filed by a group of young people who claim the climate is changing and the U.S. government isn't doing enough to stop it.

In a motion, the Trump administration asked the high court to block the litigation from moving forward, arguing that it is misguided and represents a “radical invasion” of the separation of powers.

The Supreme Court informed the administration that, in the court's opinion, it had not presented a convincing enough argument to stop the lawsuit. It said the case should proceed and the government could remake its argument before the 9th Circuit Court of Appeals at the appropriate time.

The lawsuit was filed in Oregon in 2015, naming 21 children as plaintiffs, claiming U.S. and state government agencies were knowingly doing nothing to stop global warming. The suit says that such inaction is in violation of the constitutional rights of younger generations, specifically “their right to 'life, liberty, and property' as enshrined in the due process clause of the Fifth Amendment."

President Trump asked the court to block the suit, but he wasn't the first chief executive to do so. The Obama administration filed a motion in 2016 asking federal court to dismiss the case, but the judge refused, sending it on to the Supreme Court.

Lowe’s announced on Monday that it plans to close 51 underperforming stores across the U.S. and Canada in an effort to “focus on its most profitable stores and improve the overall health of its store portfolio.”

The home improvement retailer will shut down 20 stores in the U.S. and 31 in Canada, according to the list posted on the company’s website. The majority of the impacted U.S. stores are located within 10 miles of another Lowe’s store.

All of the affected locations are expected to close by Feb. 1, 2019.

“While decisions that impact our associates are never easy, the store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” said Marvin R. Ellison, Lowe’s president and CEO. “We believe our people are the foundation of our business and essential to our future growth, and we are making every effort to transition impacted associates to nearby Lowe’s stores.”

Struggling to keep up with competitors

Lowe’s said it will extend store-closing sales to customers and offer severance to employees who aren’t offered jobs at nearby stores.

“We will work hard to ensure this transition is as smooth as possible for our associates and customers,” spokesman Steve Salazar said.

The store closures follow a long-time struggle by the retailer to keep up with rival Home Depot in terms of sales. On average, each Home Depot store generates almost twice as much in sales compared to Lowe’s, according to CNBC.

The closures also come as retail stores are struggling to adjust to the growing percentage of consumers who choose to shop online through sites like Amazon. Sears, Kmart, and Toys "R" Us have all recently been forced to file for bankruptcy, largely as a result of competition from other retailers like Amazon.

U.S. store closures

The following underperforming Lowe’s stores in the U.S. are set to be shut down.

• 1100 Bankhead Hwy SW, Graysville, Ala.

• 26501 Aliso Creek Rd., Aliso Viejo, Calif.

• 13300 Jamboree Rd., Irvine, Calif.

• 720 Dubuque Ave., South San Francisco, Calif.

• 750 Newhall Dr., San Jose, Calif.

• 48 Boston Post Rd., Orange, Conn.

• 1333 Schaefer Rd., Granite City, Ill.

• 7735 Grand Ave., Gurnee, Ill.

• 6221 US Hwy 6, Portage, Ind.

• 5770 Read Blvd., New Orleans

• 599 Thomas Burgin Pkwy, Quincy, Mass.

• 4274 E Court St., Burton, Mich.

• 2100 T.A. Mansour Blvd., Flint, Mich.

• 2015 Bassett Dr., Mankato, Minn.

• 11974 Paul Mayer Ave., Bridgeton, Mo.

• 3180 N Hwy 67, Florissant, Mo.

• 2008 Broadway, New York

• 635-641 6th Ave., New York

• 250 South Conestoga Dr., Shippensburg, Penn.

• 3500 W Airport Fwy, Irving, Texas

A study and review that were decades in the making suggest that cell phone radiation can increase the risk of brain tumors, according to researchers at the National Toxicology Program, an agency that is part of the United States Health and Human Services Administration.

The idea that cell phone use may cause brain cancer is controversial and heavily contested by the cell phone and electronics industries. Researchers at the National Toxicology Program began looking into the issue back when Bill Clinton was still president. In the past several years, expert panels in the agency have released conflicting opinions about the conclusions of their own data.

Now, an estimated $30 million and 3,000 rodents later, the researchers say they have have reached a firm conclusion, at least where rats are concerned. “We believe that the link between radio-frequency radiation and tumors in male rats is real,” John Bucher, a senior scientist at the National Toxicology Program, told the Boston Globe.

Two to three percent of male rats exposed to cell phone radiation developed brain tumors, compared to zero percent in the control group, according to National Toxicology Program’s research.

Mixed results

Still, whether the findings in male rats can be applied to humans is up for debate. Bucher, the scientist, acknowledged that the amount of radiation that the rats were exposed to in the study was far higher than the amount that humans typically are.

Previously, the World Health Organization, which tends to be more cautious about the risks of potential toxins than United States government agencies are, has said that cell phone radiation is “possibly carcinogenic” and called for more research into the matter.

Outside of government agencies, some researchers and doctors have been more assertive about the potential risk of cell phones. Dr. Keith Black, a world-renowned brain surgeon and researcher at the Cedars-Sinai Medical Center in Los Angeles, has said that the microwave radiation that is generated from cell phones can penetrate the brain when held directly to the ear.

While studies have been mixed about whether cell phones cause cancer, Black has said that the studies finding no link tended to be short-term studies, whereas cancer takes years to develop. What’s more, no studies have examined the effects of cell phone use on children, he said in an earlier interview with PBS.

Speaker mode and texts preferred

Luckily, Black doesn’t say that people need to ditch their cell phones altogether. “I use a cell phone,” Black told the station in 2011. “But I always use it either on speaker mode or use it with an earpiece or text. I don't put it next to my brain.”

In fact, even cell phone companies and device makers advise consumers not to hold the devices directly to their ears, though that advice is buried in the fine print and often ignored by consumers.

In 2016, Apple eliminated the headphone jack from its iPhone 7s and instead promoted wireless earbuds to use in the place of traditional ones.

"I think it's unfortunate, because Apple themselves acknowledges in their fine print -- often hidden -- that you need to keep cell phones ... away from the ear, and most people don't do that," Dr. Anthony Miller, senior adviser to the Environmental Health Trust, said shortly after Apple’s announcement was made.

The price of a new car continues to rise, and in October it increased faster than the rate of inflation.

Kelley Blue Book (KBB) reports the average transaction price (ATP) for a new car or light truck last month was just over $37,000, a 3.1 percent increase over October 2017. The inflation rate is around 2.2 percent.

But the ATP is determined by the kinds of vehicles consumers are buying and the options they are willing to pay for. It doesn't mean all vehicles are getting more expensive, just that consumers are choosing more expensive vehicles.

“Much of the growth was aligned to higher priced vehicles like full-size trucks and SUVs,” said Tim Fleming, a KBB analyst.

In particular, Fleming said Tesla is now driving the industry numbers up in a meaningful way because its sales have soared in recent months. The average Tesla sells for close to $100,000. Fleming said less expensive cars aren't as big a factor as they once were.

Less-expensive cars aren't selling as well

“All segments in the $20,000 to $30,000 price range also showed little-to-no growth, which could be cause for concern considering these segments make up nearly half of the industry's sales totals,” Fleming said.

Tesla launched a promotion in September to increase sales of the Tesla Model 3, telling consumers who had ordered a car that they could take immediate delivery of a Model 3 if they were willing to pay above the $35,000 base price. A Model 3 with advanced options averages about $60,000, according to a recent survey.

Other luxury car manufacturers reported mixed results for October. Land Rover increased sales by 43.3 percent and Infiniti sales were up nearly 16 percent. But Lincoln sales were off 15 percent and Lexus sales were down 0.8 percent.

While luxury sedan sales were down 20 percent in October, the compact luxury SUV/crossover segment recorded a strong performance, increasing by 36 percent. Full-size SUV crossover sales were also higher -- but by a more modest 6.4 percent.

It's been a mixed year so far for both home buyers and sellers. Prices continue to rise, along with mortgage rates, but homes aren't selling nearly as quickly as they did a year ago.

So what does 2019 hold in store? More of the same, according to the latest forecast from the National Association of Realtors (NAR).

In a presentation at NAR's 2018 REALTORS Conference and Expo, NAR's chief economist Lawrence Yun said sales have slowed because fewer homes are on the market. But slower sales don't seem to be affecting prices.

"Ninety percent of markets are experiencing price gains while very few are experiencing consistent price declines," said Yun. "2017 was the best year for home sales in ten years, and 2018 is only down 1.5 percent year-to-date.

Not so bubbly

Yun also disputed the suggestion that the current real estate market has entered into bubble territory, with the risk that values could fall significantly, much as they did in 2009.

“The current market conditions are fundamentally different than what we were experiencing before the recession 10 years ago," said Yun.

That crash was due to extremely lax underwriting standards and the proliferation of subprime mortgages, which were bundled and sold on Wall Street as securities. When millions of subprime loans went into default, the whole thing came crashing down. After the crash, there was a glut of homes and few buyers.

“Housing starts are under-producing instead of over-producing and we are seeing historically low foreclosure levels, indicating that people are living within their means and not purchasing homes they cannot afford,” Yun said. “This is a stronger, more stable market compared to the loosely regulated market leading up to the bust."

Stability ahead

Looking ahead to next year, Yun thinks the U.S. housing market will remain very stable. He says he expects home sales will increase a modest 1 percent and the median price of a home will rise more than 3 percent to around $267,000.

But all of that depends on homebuilders increasing the supply of new homes. Yun says builders are not adding to the inventory at the rate required to meet the demand.

A report from real estate marketplace Zillow suggests buyers are regaining some bargaining power in some markets where they recently had to take part in bidding wars if they wanted to buy a home. That's not the case now, and Zillow said there are a growing number of listings in which the listing price has been reduced.

The top markets swinging toward buyers include Orlando, Boston, Seattle, Las Vegas, and Charlotte. Zillow's senior economist Aaron Terrazas says buyers will enjoy even more leverage if they buy now instead of waiting until the spring.

For most consumers, the office is where they spend a significant portion of the day. Interacting with co-workers can not only build friendships, but many believe it can help increase productivity in the workplace.

However, based on a new study conducted by researchers from Michigan State University, offering expertise or advice to co-workers may only prove to be beneficial when you’re asked for it.

“Right now, there’s a lot of stress on productivity in the workplace, and to be a real go-getter, and to help everyone around you,” said researcher Russell Johnson. “But, it’s not necessarily the best thing when you go out looking for problems and spending time trying to fix them.”

Proactive vs reactive help

To test the effects of helping in the workplace, Johnson and his team evaluated 54 employees across various industries for 10 days. The goal was to see how helping was perceived in the work environment, what effect it had on work, and whether there was a social impact.

Helping was broken down into two categories: proactive or reactive. Those offering proactive help went out of their way -- unasked -- to offer assistance or guidance. Those offering reactive help did the opposite; they waited until asked by a co-worker to offer help.

After studying the employees’ responses, Johnson found that proactive help isn’t as helpful as many intend it to be -- for both the helper and the recipient of the help. According to Johnson, employees that receive help unprovoked may start to question their self-esteem and not feel gratitude towards the co-worker that helped them. Proactive helpers may not be fully aware of what their co-worker really needs and may not feel as satisfied in the long-term.

“Being proactive can have toxic effects, especially on the helper,” Johnson explains. “They walk away receiving less gratitude from the person that they’re helping, causing them to feel less motivated at work the next day...As for the person receiving the unrequested help, they begin to question their own competency and feel a threat to their workplace autonomy.”

Johnson suggests that help in the workplace can be beneficial for both parties, as long as the help is requested first.

“As someone who wants to help, just sit back and do your own work,” Johnson said. “That’s when you’ll get the most bang for your buck.”

Johnson also notes that the exchange elicits the most positive reaction from both parties when the helper feels gratitude for having helped someone in need. Johnson believes that it’s never too soon to express gratitude for receiving help, as this can only increase the positive experience for the helper.

Procesadora La Hacienda of San Lorenzo, P.R., is recalling approximately 2,400 pounds of ready-to-eat corned beef.

The product may be contaminated with extraneous materials – specifically soft plastic and metal.

There are no reports of injury or illness.

The following item, produced on October 4, 2018, is being recalled:

• 10-lb. boxes containing two 5-lb. packages of “PROCESADORA La Hacienda, Inc. CORNED BEEF, TUBED with “Lot: 10/4/18”, and an expiration date of “Exp. 12/4/18.”

The recalled product, bearing establishment number “EST. 21217A” inside the USDA mark of inspection, was distributed to schools in Puerto Rico.

What to do

School nutrition professionals who purchased the recalled product should not prepare or consume it, but discard it way or return it to the place of purchase.

Consumers with questions may contact Wilfredo Figueroa at (787) 612-7276.