Current Events in June 2019

Amazon is now offering its customers the option to pick up an Amazon package at a nearby retailer. The new service, called Counter, will launch first at 100 Rite Aid stores. 

By the end of the year, Amazon plans to launch the free in-store pickup option at 1,500 brick-and-mortar stores.

The e-commerce giant has already expanded its package pickup options to include lockers inside stores and apartment complexes. The company has also started offering its customers the option to have their delivery dropped off inside their home or in the trunk of their car. 

“Amazon is always looking for innovative and convenient ways for customers to ship and receive their orders,” Patrick Supanc, world director of Amazon Hub, said in a statement. “With Counter, we’ve leveraged our growing logistics network and invested in new, easy to use technology to give customers yet another delivery option rooted in flexibility and control. We are excited to partner with national businesses like Rite Aid, and local businesses in the future, to create an outstanding experience for our shared customers.”

Amazon will email a barcode

Amazon’s Counter service won’t cost extra to use, and it won’t extend the time it takes for a package to arrive. Once a customer’s package has been delivered to the store, they will receive an email from Amazon containing a barcode that will need to be shown to a store employee. 

“Simply visit your selected store and provide the store assistant with your barcode to receive your package,” Amazon said. “You'll have 14 days to collect your package.”

Items that won’t be eligible for delivery via Counter include items sold by third-party sellers, age restricted and hazardous material items, and items too large to be accommodated by the selected retailer. 

“If the combined size, weight or dimensions of your package exceeds the size restrictions of your selected pickup location, you'll need to remove items or select a different delivery address to proceed with your order,” the company noted.

The Boeing 737 Max jetliners may spend a few more months on the ground before being allowed to return to the air.

The aircraft, involved in two fatal crashes in a five-month period, has been grounded by the Federal Aviation Administration (FAA) since March while engineers work to update flight control software implicated in both crashes. Initially it had been hoped the issue would be resolved by this month, but Boeing says it hasn’t been that simple.

“During the FAA’s review of the 737 MAX software update and recent simulator sessions, the FAA identified an additional requirement that it has asked the company to address through the software changes that the company has been developing for the past eight months,” the company said in a statement. 

Another potential problem

The FAA said this week it found another potential problem in the 737 MAX’s computer system. According to published reports, the flaw could cause the plane to dive when it should be climbing.

Boeing says the review and process for returning the 737 MAX to passenger service are designed to result in a “thorough and comprehensive” assessment. 

“Boeing agrees with the FAA's decision and request, and is working on the required software,” the company said. 

The company believes the additional effort will result in reducing pilot workload by accounting for a potential source of uncommanded stabilizer motion. 

“Boeing will not offer the 737 MAX for certification by the FAA until we have satisfied all requirements for certification of the MAX and its safe return to service,” the statement concluded.

Airlines respond

Southwest and United airlines immediately announced extended cancellations for flights using the grounded aircraft. Southwest extended the cancellations from September 2 through October 1.

“By proactively removing the MAX from scheduled service, we can reduce last-minute flight cancellations and unexpected disruptions to our customers' travel plans,” the airline said. The limited number of customers who have already booked their travel and will be affected by our amended schedule are being notified of their re-accommodated travel according to our flexible accommodation procedures.

Southwest says the changes will remove about 150 daily flights from its schedule. United, which flies the 737 MAX 9, has canceled affected flights through September 3. About 40 to 50 United flights per day are affected.

PepsiCo has announced that it will start selling canned water as part of an effort to curb its plastic use. 

Aquafina water, which is owned by Pepsi, will be sold in aluminum cans at locations around the U.S. Pepsi also plans to use 100 percent recycled plastic for its LIFEWTR bottles and switch to using only cans for its Bubly brand sparkling water instead of plastic bottles. 

The changes, which will go into effect in 2020, will eliminate more than 8,000 metric tons of virgin plastic and about 11,000 metric tons of greenhouse gas emissions, according to the company.

"Tackling plastic waste is one of my top priorities and I take this challenge personally," PepsiCo Chairman and CEO Ramon Laguarta said in a statement. "As one of the world's leading food and beverage companies, we recognize the significant role PepsiCo can play in helping to change the way society makes, uses, and disposes of plastics.” 

Pepsi said it’s aiming to make all of its packaging recyclable, compostable, or biodegradable and use 25 percent recycled plastic in all of its packaging by 2025. 

“We are doing our part to address the issue head on by reducing, recycling and reinventing our packaging to make it more sustainable, and we won't stop until we live in a world where plastics are renewed and reused,” Laguarta said. 

Eliminating plastic pollution

Pepsi joins a growing list of companies, restaurants, and retailers that have pledged to reduce their plastic use. Starbucks recently announced that it would begin offering new cold cup lids that do not require a straw. The coffee chain said it’s aiming to eliminate single-use plastic straws at all of its locations worldwide by next year. McDonald’s is also trying to phase out plastic straws. 

In May, Whole Foods announced that it will stop offering plastic straws at all of its locations in the U.S., as well as in Canada, and the United Kingdom. Pepsi’s rival Coca-Cola has announced that it’s aiming to recycle 75 percent of the bottles it sells by 2020. 

The initiatives come amid predictions that there will be more plastic than fish in the ocean by 2050 if current trends continue.

Gasoline prices reversed their downward slide this week as summer demand picked up and supplies fell. Motorists hitting the road for next week’s Independence Day holiday may find lower prices in the west but more expensive fuel in the east and Midwest.

The AAA Fuel Gauge Survey shows the average price of regular gas is $2.70 a gallon, four cents higher than last Friday. The price is still 15 cents lower than at this time a year ago. The average price of premium gas is $3.28 a gallon, three cents higher than last week. The average price of diesel fuel is $2.99 a gallon, the same as seven days ago.

Last week’s explosion and fire at the Philadelphia Energy Solutions Refining Complex in South Philadelphia is likely to affect prices in the future. The company announced this week that it intends to permanently close the refinery, which had been processing more than 300,000 barrels of crude oil a day for PADD 1, the refinery region covering the East Coast of the U.S.

“This could result in PADD 1 becoming quite tight for gasoline supply,” Patrick DeHaan, head of Petroleum Analysis at GasBuddy, told ConsumerAffairs. “They're going to be reliant on imports of gasoline, mainly from Europe or the Gulf Coast. As a result, they could be subject to more pricing volatility in the months and years ahead.”

DeHaan said the loss of the refinery won’t always be felt directly, but during maintenance season and the run-up to summer, the East Coast may resemble the West Coast when it comes to price volatility.

The Midwest experienced the most volatility during the week. The average price of regular in Ohio surged nearly 20 cents a gallon. It’s up seven cents a gallon in Michigan.

The states with the most expensive regular gas

These states currently have the highest prices for regular gas, according to the AAA Fuel Gauge Survey:

• California ($3.73)

• Hawaii ($3.64)

• Washington ($3.35)

• Oregon ($3.35)

• Nevada ($3.33)

• Alaska ($3.27)

• Idaho ($3.03)

• Utah ($3.01)

• Arizona ($2.90)

• Illinois ($2.88)

The states with the cheapest regular gas

The survey found these states currently have the lowest prices for regular gas:

• Mississippi ($2.28)

• Alabama ($2.30)

• Louisiana ($2.31)

• South Carolina ($2.32)

• Arkansas ($2.33)

• Oklahoma ($2.38)

• Tennessee ($2.39)

• Texas ($2.39)

• Missouri ($2.39)

• Virginia ($2.41)

At a time when the economy is flashing recession signals, the housing market appears to be getting back on track.

The National Association of Realtors (NAR) reports that pending home sales rose a robust 1.1 percent in May. Pending home sales provide a leading indicator, reflecting contracts signed but not yet closed. They suggest July’s home sales figures will be higher than in recent months.

Contracts increased in three of the four regions of the country, with only the west showing a slight decline in May contracts. Lawrence Yun, NAR’s chief economist, says falling mortgage rates spurred the May increase.

"Rates of 4 percent and, in some cases even lower, create extremely attractive conditions for consumers,” Yun said. “Buyers, for good reason, are anxious to purchase and lock in at these rates."

Growing confidence

Yun said the strong pending sales number for May is in line with other data, which suggests that consumers are more confident about buying a home. That confidence had been shaken in recent months because mortgage rates have risen, along with home prices.

Yun said there’s no guarantee rates will fall further, but he noted that the market isn’t dependent on that happening. He says a hot job market and a rise in inventory will pull more would-be buyers off the sidelines in the months ahead.

Low inventory -- the lack of available homes -- has been a huge headwind for the housing market since 2016. But inventory levels in most regions of the country have been on the rise so far in 2019.

More home-building needed

"Home builders have not ramped up construction to the extent that is needed," Yun said. "Homes are selling swiftly, and more construction will help keep home prices manageable and thereby allow more middle-class families to attain ownership opportunities."

The hottest housing markets in the nation have cooled a bit in recent months while in May, activity shifted to some often-overlooked metros. According to realtor.com the hottests U.S. housing markets in May were Rochester, N.Y., Fort Wayne, Ind., Lafayette-West Lafayette, Ind., Boston-Cambridge-Newton, Mass., and Midland, Texas.

Audi is recalling 23,241 model year 2016-2018 Q3s equipped with LED headlights.

An inoperable front turn signal may not illuminate an indicator, failing to alert the driver to the issue.

Without an indicator informing the driver of an inoperable turn signal, the driver may turn or change lanes without a signal, increasing the risk of crash.

What to do

Audi will notify owners, and dealers will update the body control module free of charge.

The recall is expected to begin July 19, 2019.

Owners may contact Audi customer service at (800) 253-2834. Audi's number for this recall is 97DK.

West Marine of Watsonville, Calif., is recalling about 11,600 West Marine Deck chairs and Comfort Plus Deck Crew folding chairs.

The lock nut that connects the arm rest to the chair can loosen, posing fall and injury hazards.

No incidents or injuries have been reported.

This recall involves West Marine Deck chairs and Comfort Plus Deck Crew chairs.

The folding deck chair has metal legs, light-colored wood armrests and blue back-pack style straps. “West Marine” is printed on the side of the wood armrest. The corners of each leg have white plastic feet. The seat and back are covered in light blue and navy blue nylon fabric. The back can be adjusted to various angles.

Model/SKU numbers “18766972” and “19268135” are printed on a coated paper tag attached to the chair frame.

The chairs, manufactured in China, were sold at West Marine stores nationwide and online at www.westmarine.com from January 2018 through May 2019, for about $100.

What to do

Consumers should immediately stop using the recalled chairs and contact the firm for a free repair parts kit.

Consumers may contact West Marine at (877) 579-1550 from 8 a.m. to 5 p.m. (ET) Monday through Friday, by email at WMARPARTS@westfieldoutdoors.com or online at www.westmarine.com and click “Product Recalls” at the bottom of the page, then “West Marine Deck Chair” for more information.

With the growing concerns over safety in the Dominican Republic in light of recent deaths there, several U.S. airlines are allowing travelers to cancel or rebook any flights they have to the country. 

While the cause of death has yet to be determined, at least 10 U.S. citizens have died while vacationing in the Dominican Republic and another dozen have said that they also fell dangerously ill while on the island.

For one, Delta Air Lines is offering customers holding an original ticket to Punta Cana (issued on or before June 21, 2019), an opportunity to rebook or cancel their flight completely.

If canceling completely, travelers can use the value of the ticket towards a future flight. However, “changes to origins and destinations may result in an increase in fare.” For ticket holders who want to keep the Dominican Republic as a destination, but modify their reservations to a later date, they can make a one-time change and Delta will “waive any applicable change fee.” 

Representatives from American Airlines, JetBlue, and Sun Country Airlines have reported that they'll also work with their passengers who want to change or cancel Dominican flights.

“The safety of our customers and crewmembers is our first priority,” a JetBlue spokesperson told ABC News. “While JetBlue’s flights to the Dominican Republic are unaffected, we are working with the U.S. Embassy and local authorities to stay updated on developments. To support our customers, we are currently waiving change fees when rebooking flights to/from the Dominican Republic. For customers who wish to cancel their flights, we are waiving the cancellation fee and issuing a credit for future JetBlue travel.”

Is the Dominican Republic really that unsafe?

Despite the deaths and illnesses of visitors to the Dominican Republic, the U.S. State Department hasn’t changed its “Level 2: Exercise Increased Caution” travel advisory for the country. That travel advisory suggests travelers “exercise increased caution in the Dominican Republic due to crime,” but it makes no mention of the recent deaths or illnesses.

One travel advisor says that what’s happening in the Dominican Republic isn’t all that different from what happens in other countries.

"Take for instance Thailand -- which is a great and safe destination I've been to many times -- they had 33 American tourist deaths last year. But we're not talking about Thailand are we?” commented Mark Murphy, TravelPulse founder and CEO.

Murphy also offered some pointers for officials in the Dominican Republic. "I would say sit back, defer to the Federal Bureau of Investigation (FBI), the Center for Disease Control [and Prevention] (CDC) and the State Department,” he added. 

With much of the concern over the deaths and illnesses being directed at alcohol consumption, primarily from mini-bars, Murphy gives kudos to the Hard Rock’s Punta Cana resort and casino for removing liquor dispensers from its guest rooms.

"I like what the Hard Rock is doing because they're basically taking the suspicion out that somehow the minibar is killing people. That's a smart move having U.S.-based healthcare oversee what you're doing on property. That's great PR and proactive,” Murphy said.

Democratic presidential hopeful Sen. Bernie Sanders (I-Vt.) has gotten a lot of attention for his proposal to wipe out all student loan debt. His proposal to cap credit card interest rates is less known but just as popular.

Sanders has proposed capping the interest rate consumers pay on credit card balances at 15 percent. The average rate on credit cards is slightly higher than that, and many cardholders pay an even higher rate, making it difficult to pay off large balances.

While consumers like the idea of a cap, a new survey from CompareCards, a division of LendingTree, finds that support goes down when consumers are told how such a cap would affect credit.

Eighty-three percent of respondents support the concept of capping credit card rates at 15 percent. But the support falls to 51 percent when they learn that the cap would make it harder to qualify for a credit card.

Unsecured loans

Lenders say credit card rates are so much higher than other types of loans because credit card debt is unsecured. If a consumer defaults on the debt, the credit card company can sue, but it has little other recourse. There is no collateral securing the loan, so lenders charge everyone a higher rate to compensate for their expected losses from consumers who don’t pay.

"Americans love the idea of a credit card rate cap,” said Matt Schulz, chief industry analyst at CompareCards. “It's one of the few things that both Republicans and Democrats agree on these days, but that love isn't unconditional." 

Schulz says the survey showed a large number of cardholders would have second thoughts about an interest rate cap if it made it harder for them to get access to credit. Even cardholders with good credit are less supportive of a cap when they learn credit card companies would likely reduce rewards and incentives if a cap is imposed.

No limits on interest

Currently, there are few limits on what interest rate credit card companies can charge. The rate for cards offered to consumers with subprime credit can be more than 30 percent. 

One credit card company recently set the rate on its card at 79.9 percent. That jaw-dropping rate was found to be legal as long as the bank disclosed the terms in accordance with the Truth in Lending Act.

Even with the knowledge that it might reduce some consumers’ access to credit, an overwhelming majority -- 77 percent -- agreed there should be stronger regulations in place to protect credit card customers.

Bitcoin, the cryptocurrency that soared to breathtaking heights in 2017 only to fall back to earth, is soaring once again.

The digital currency rose to a high of $13,485.85 Wednesday before giving up much of the gain. Still, the cryptocurrency is at its highest level in months.

For the week, Bitcoin is up around 35 percent and has increased its value by 240 percent over the last 12 months.

It’s no surprise that Bitcoin has rallied sharply since Facebook announced it was launching its own cryptocurrency -- Libra -- early next year. Facebook’s popularizing of digital currencies is likely to focus attention on other cryptocurrencies, such as Bitcoin.

Libra is expected to launch next year, giving users around the world a single, stable digital currency with which to make purchases on the Facebook platform. Facebook has recruited  Stripe, Mastercard, Visa, PayPal, Uber, and other technology and financial services firms to oversee the digital currency.

Analysts also say the Bitcoin rally is being propelled by the digital coin taking out key technical levels in recent weeks and safe haven buying in the midst of increasing global tensions and trade wars.

What’s behind the move?

Jim Reid, a key analyst at Deutsche Bank, told clients that dovishness signals from central bankers have steered the smart money toward alternative currencies. But he doesn’t discount the influence Facebook’s Libra is having.

Bitcoin has rallied sharply from 2018 lows when it and most other digital currencies shed up to 70 percent of their value. Along the way, there were highly-publicized hacks, as well as crack-downs on initial coin offerings and the lack of new bitcoin trading offerings. About six months ago it appeared cryptocurrency might have just been a fad.

Bitcoin has more than tripled in value since the start of the year. While prices are rapidly climbing they are still short of their all-time high near $20,000 reached in December of 2017.

Going forward, tweets from government officials, political leaders, and world leaders that violate Twitter’s rules will come with a disclaimer. 

In a blog post published Thursday, Twitter said it’s introducing a new rule intended to make sure the public stays informed about important topics while receiving “additional clarity” when a particular tweet violates the site’s community standards.

“In the past, we’ve allowed certain Tweets that violated our rules to remain on Twitter because they were in the public’s interest, but it wasn’t clear when and how we made those determinations,” Twitter said. “To fix that, we’re introducing a new notice that will provide additional clarity in these situations, and sharing more on when and why we’ll use it.”

The new policy applies to verified accounts with more than 100,000 followers that represent a government official, are being run by a government official, or represent or are run by someone who is being considered for a government position. 

Applies to President Trump

While Twitter didn’t specifically mention President Trump in its post, the president does appear to be subject to the new policy based on the criteria. 

In the past, Twitter officials have faced criticism for deciding not to take down tweets from President Trump that appear to violate its policies. Regarding its new rule, Twitter maintains that its goal is to keep the public informed while avoiding political bias. 

"This is not about perceived bias but about providing more clarity if our rules have been broken," a spokesperson for Twitter told CNN Business.

Under the new policy, Twitter will flag tweets from government officials that violate its rules but will not remove them if they are determined to be matters of public interest. 

On “rare occasions,” Twitter says users may have to click or tap through the disclaimer in order to view the problematic tweet. Tweets that aren’t deemed to be in the public interest and violate Twitter’s rules must be taken down by the account owner, the policy states. 

Additionally, Twitter says it will prevent tweets from government officials that have received the disclaimer from becoming “algorithmically elevated” in users’ timelines in order to “strike the right balance between enabling free expression, fostering accountability, and reducing the potential harm caused by these Tweets.” 

Waymo, Google’s self-driving car division, is partnering with Lyft to make some of its self-driving minivans available to Lyft riders. For now, the rides are limited to a small area near Phoenix, Arizona, CNBC reported. 

John Krafcik, CEO of Waymo, says the collaboration will enable both companies to “collect valuable feedback.” Waymo will get the opportunity to see how everyday consumers react to its self-driving technology. 

Prior to its partnership with Lyft, only pre-screened riders who had applied to join the company’s early rider program, Waymo One, were eligible to ride in one of Waymo’s self-driving vans. 

Safety driver included

The trial will initially involve just a handful of Waymo’s self-driving minivans, but the company says it eventually plans to expand to 10 vehicles total for the program. Each of the self-driving minivans in the Lyft program will have a safety driver behind the wheel. 

“Lyft users in the area will have the option to select a Waymo directly from the Lyft app for eligible rides,” Krafcik said in a press release in May, when the partnership was first announced. “This first step in our partnership will allow us to introduce the Waymo Driver to Lyft users, enabling them to take what for many will be their first ride in a self-driving vehicle.”

News of Waymo’s Lyft partnership comes just a few weeks after the company announced a deal with Renault and Nissan that will involve the development of self-driving vehicles for the automakers.

The National Security Agency (NSA) improperly collected phone call data just a few months after assuring the public that the glitch that had previously caused it to do so had been fixed, according to documents obtained by the American Civil Liberties Union (ACLU). 

The agency’s first erroneous record-collection incident happened last May. Upon realizing its mistake, the NSA said it deleted more than 600 million of the call records it had collected from phone companies in error. Now, the ACLU has found that another over-collection incident occured in October 2018. 

In its report, the ACLU said the NSA obtained information about U.S. consumers’ phone calls in a manner not authorized under section 215 of the Patriot Act. 

The report said the agency unlawfully collected call record data three times in total: in November 2017, February 2018, and October 2018. The third violation suggests the underlying problem wasn’t mitigated in the first place, or perhaps that the NSA faced new problems that caused the issue to happen again.

“These documents further confirm that this surveillance program is beyond redemption and a privacy and civil liberties disaster,” Patrick Toomey, staff attorney with the ACLU’s National Security Project, said in a statement. “The NSA’s collection of Americans’ call records is too sweeping, the compliance problems too many, and evidence of the program’s value all but nonexistent. There is no justification for leaving this surveillance power in the NSA’s hands.”

NSA responds

In a statement acknowledging its persistent over-collection problem, the NSA said the technical issues to blame for the earlier incidents were fixed. However, it found additional “data integrity and compliance concerns caused by the unique complexities of using company-generated business records for intelligence purposes.”

“Those data integrity and compliance concerns have also been addressed and reported to NSA’s overseers, including the congressional oversight committees and the Foreign Intelligence Surveillance Court,” the agency added.

The NSA is now considering shutting down its call data collection system because it “is now viewed by many within the intelligence community as more of a burden than a useful tool, in part due to the compliance issues,” the Wall Street Journal reported.