Current Events in July 2019

Researchers from Johns Hopkins Medicine recently discovered that many supplements aren’t delivering the results that their makers promise. The team says this is true for products that claim to offer protection from heart disease and help consumers live longer.

“The panacea or magic bullet that people keep searching for in dietary supplements isn’t there,” said researcher Dr. Erin D. Michos. “People should focus on getting their nutrients from a heart-healthy diet, because the data increasingly shows that the majority of healthy adults don’t need to take supplements.” 

Uncovering the evidence

To see how dietary supplements were affecting the body, the researchers analyzed nearly 300 previous studies that included over 992,000 participants and evaluated the effects of eight different diets and 16 vitamins. 

The researchers pored over data from diets that included low salt, Mediterranean, reduced fat, and high in omega-3 fatty acids, among others. The vitamins that were examined included antioxidants, multivitamins, calcium,  iron, and others. 

After analyzing all of the different diets and vitamins, the researchers then ranked each trial based on the health impact it made. While some of the substances did lead to lower risk of certain health events, the researchers say that the results fell well short of complete effectiveness.

For example, when analyzing over 40 studies that involved over 134,000 participants taking omega-3 fatty acids to reduce their risk of heart attack or heart disease, the researchers determined that the supplements were doing little to ward off a negative health event, as those taking the supplements reduced their risk by less than 10 percent. 

Similarly, the researchers determined that incorporating folic acid into a diet did little to benefit participants’ health, as doing so reduced the risk of a stroke by just 20 percent.

Despite some benefits, researchers urge caution

The study did find that two diets were moderately effective in boosting participants’ health: low-salt diets in people with high blood pressure and low-salt diets in people with healthy blood pressure. For those with high blood pressure, following a low-salt diet reduced the risk of heart disease by over 30 percent, whereas those with healthy blood pressure reduced their risk of death by 10 percent. 

Overall, the researchers urge consumers to use caution when using vitamins or supplements to boost their diet or health status, as they don't always yield the desired results. 

“Our analysis carries a simple message that although there may be some evidence that a few interventions have an impact on death and cardiovascular health, the vast majority of multivitamins, minerals, and different types of diets had no measurable effect on survival or cardiovascular disease reduction,” said researcher Dr. Safi U. Khan. 

If you’re considering an automobile purchase, knowing what others are buying -- and what they’re paying -- is valuable information. But perhaps even more valuable is knowing which brands get the most repeat buyers.

Brand loyalty is a powerful indicator of satisfaction. If a consumer has driven a car for three years and then trades it in and buys the same brand, that suggests a good consumer experience.

J.D. Power and Associates has analyzed automotive purchases and ranked both luxury and mass market brands for their customer loyalty.

“Customer loyalty is perhaps the most important metric for manufacturers because it incorporates many factors that lead customers to become brand ambassadors,” said Tyson Jominy, vice president of Data & Analytics at J.D. Power. “When a brand can connect emotionally with owners through the vehicle’s content, capabilities or prestige level, owners are much more likely to come back and purchase that same brand again.”

Subaru earns top spot

In the mass market segment Subaru ranked highest in consumer loyalty with a rating of 61.5 percent. The brand is also highly rated on ConsumerAffairs. Carol, of the Bronx, is a repeat Subaru buyer.

“Charlie was helpful as I turned my old Forester in for an excellent trade in value - while they had a new one ready for me, with exceptional new safety features, and everything I needed in a car,” Carol wrote in a ConsumerAffairs post. 

Here’s how the top 10 break down in the mass market category when it comes to loyalty percentage:

• Subaru -- 61.5 percent
• Toyota -- 59.5 percent
• Honda -- 57.7 percent
• RAM -- 56.2 percent
• Ford -- 54.0 percent
• Kia -- 49.4 percent
• Chevrolet -- 49.0 percent
• Nissan -- 45.8 percent
• Hyundai -- 44.8 percent
• Jeep -- 40.9 percent

Lexus took top honors in the luxury vehicle class, followed by Mercedes-Benz and BMW.

Two reports this week should provide some comfort to economists fretting over rising corporate and consumer debt.

The National Retail Federation (NRF) reports retail sales rose 0.6 percent in June over the previous month and were up 2.3 percent on a year-over-year basis. The spending doesn’t count automobile dealers, gasoline stations, and restaurants.

Consumers spent less last month on furniture, clothing, sporting goods, and electronics but more at general merchandise stores. Not surprisingly, online retailers increased their market share by 11.6 percent.

“These are impressive results showing that the consumer remains engaged and that consumer spending gave a boost to the economy in the second quarter,” NRF Chief Economist Jack Kleinhenz said.

Kleinhenz said the numbers suggest consumer sentiment remains high and households are doing better. If consumers are putting that increased spending on credit cards, additional data suggests that they are having little difficulty making payments.

S&P Dow Jones Indices and Experian monitor consumer credit defaults on a monthly basis. A rise in defaults usually means consumers are struggling and the economy is headed for a downturn.

Little change in default status

The June numbers instead show little change in default status. The Composite Index, which tracks all types of debt, was unchanged in June at 0.83 percent.

The credit card default rate was 3.90 percent, while the default rate on auto loans was much lower, at 0.87 percent. The mortgage default rate was the lowest of all, 0.59 percent. All were unchanged from May.

The indices also track the geographic locations where consumers appear to have the easiest time making their monthly loan payments. Los Angeles showed the largest decrease in defaults, falling seven basis points to 0.61 percent. 

The default rate for New York dropped four basis points to 0.87 percent, while the rate for Chicago fell two basis points to 0.88 percent. Miami emerged as a potential trouble spot, with a default rate rising six basis points to 1.43 percent.

Acura is recalling 49,898 model year 2016-2019 Acura ILXs.

Excessive grease may prevent the set-ring on the half shaft from fully engaging, allowing the driveshaft to separate from the half shaft.

A separated driveshaft can cause the vehicle to have a loss of drive or allow the vehicle to move while in Park, increasing the risk of a crash or injury.

What to do

Acura will notify owners, and dealers will inspect, and, as necessary, replace the driveshaft and half shaft free of charge.

The recall is expected to begin July 29, 2019.

Owners may contact Acura customer service at (888) 234-2138. Acura's number for this recall is G54.

Lidl US Trading of Arlington, Va., is recalling about 300 Playtive Junior Wooden Grasping Toys.

The wooden wheels can detach and release small parts, posing a choking hazard

No incidents or injuries are reported.

This recall includes the Playtive Junior Wooden Grasping Toy, which is made of wood in the shape of an elephant with four blue wheels on the bottom.

There is a space in the center of the toy. The model number, HG04414, is located on the underside of the toy.

The toys, manufactured in China, were sold at Lidl stores in Virginia, Maryland, Delaware, Pennsylvania, New Jersey and New York from March 2019, through May 2019, for about $4.

What to do

Consumers should immediately stop using the recalled toys and return the product to any Lidl store for a full refund.

Consumers may contact Lidl toll-free at (844) 747-5435 from 8 a.m. to 9 p.m. (ET) everyday, or online at www.lidl.com and click on “Product Recalls” near the bottom of the page for more information.

Ada Valley Gourmet Foods of Ada, Mich., is recalling approximately 3,490 pounds of raw ground beef meatloaf.

The product may be contaminated with extraneous materials -- specifically broken metal bits.

There are no confirmed reports of adverse reactions.

The following frozen, premixed raw ground beef item, produced on May 20, 2019, is being recalled:

• 5-lb. frozen vacuum packages packed 2 each in cartons containing “Ada Valley MEATLOAF UNCOOKED” with lot code 17034 and a packaging date of 05-20-19 represented on the label.

The recalled product, bearing establishment number “EST. 10031” inside the USDA mark of inspection, was shipped to hospitals in Arizona, California and Nevada.

What to do

Consumers with questions about the recall may contact Walter Rozeboom at (616) 676-0767.

Chrysler (FCA US LLC) is recalling 745 model year 2019 Jeep Renegades equipped with the Upland trim package.

The Occupant Restraint Controller (ORC) may have been incorrectly calibrated, which may incorrectly deploy the airbags during a front-end crash, increasing the risk of injury.

What to do

Chrysler will notify owners, and dealers will reprogram the ORC.

The recall is expected to begin July 31, 2019.

Owners may contact Chrysler customer service at (800) 853-1403. Chrysler's number for this recall is V73.

As Amazon’s amply hyped Prime Day sale kicked off, employees at one of its fulfillment centers in Minnesota stopped working for a total of six hours during the morning and evening shifts. 

Those participating in the strike were seeking better working conditions -- namely, less-stringent productivity quotas and the conversion of more temporary workers to full-time Amazon employees. Employees at the Shakopee warehouse alleged that the productivity quotas they are forced to meet make the jobs unsafe and unreliable. 

More than 2,000 Amazon employees in Germany also walked out yesterday seeking to turn the focus toward issues they want fixed, including the lack of livable wages and the need for bargaining power for employees. German workers shouted the motto, "No more discount on our incomes,” during the walk-out, Reuters reported. 

‘Conjuring misinformation’

Amazon has refuted all claims that its employees deal with harsh or dangerous working conditions. The company said it is "working smarter, not harder, based on decades of process improvement and innovation" at fulfillment centers, delivery stations, and air hubs.

"Events like Prime Day have become an opportunity for our critics, including unions, to raise awareness for their cause, in this case, increased membership dues," a company spokesperson said in a statement. "These groups are conjuring misinformation to work in their favor, when in fact we already offer the things they purport to be their cause — industry leading pay, benefits, and a safe workplace for our employees.” 

Amazon added that it could only conclude that people who planned to participate in any of the rallies focusing on the need for better working conditions “are simply not informed.” 

"We encourage anyone to book a tour of our fulfillment centers and compare our overall pay, benefits, and workplace environment to other retailers and major employers in the community and across the country,” the company said. 

Senator and Presidential hopeful Elizabeth Warren, who has proposed breaking up big tech corporations, tweeted that she supported the Minnesota strike and the reasons for it. 

“I fully support Amazon workers' Prime Day strike,” she said. “Their fight for safe and reliable jobs is another reminder that we must come together to hold big corporations accountable.” 

Facebook executive David Marcus is scheduled to testify before the Senate Banking Committee today to answer questions about Facebook’s newly announced digital currency, Libra. He faces mounting skepticism within the U.S. government.

On Monday, the Trump administration weighed in, with Treasury Secretary Steven Mnuchin expressing concern that Facebook’s planned payment system could be used for money laundering.

“Treasury has been very clear to Facebook and other providers of digital financial services that they must implement the same anti-money laundering safeguards in countering the financing of terrorism as traditional financial institutions,” Mnuchin said at a White House news conference.

Willing to work with regulators

Marcus will reportedly tell lawmakers that Facebook is not going to launch Libra until it has checked off every box with U.S. regulators. In mid-June Facebook announced plans to launch Calibra, a digital wallet, and Libra, a digital coin.

Facebook told CNBC that it “anticipated critical feedback from regulators, central banks and lawmakers around the world.”

The original announcement stressed the company’s commitment to privacy and safety but acknowledged it might have to share some data in order to comply with the law and prevent criminal activity.

Facebook has said Calibra will allow users to send Libra to almost anyone with a smartphone with the same ease as sending a text message, at little or no cost.

“In time, we hope to offer additional services for people and businesses, like paying bills with the push of a button, buying a cup of coffee with the scan of a code or riding your local public transit without needing to carry cash or a metro pass,” the company said in last month’s announcement.

Too powerful?

And perhaps that is what is giving lawmakers and policymakers pause. With nearly 2 billion users around the world, Libra has the potential to become a dominant currency, especially in developing nations where currencies are often unstable.

In recent days, Facebook has pledged to consult closely with international policymakers to ensure Libra is not misused but skepticism appears to be growing. Federal Reserve Board Chairman Jerome Powell, who initially said the Fed had been consulted before Facebook announced its plans, said last week that a Facebook digital currency raises “serious concerns” about privacy, money laundering, consumer protection, and financial stability.

House Financial Services Chairwoman Maxine Waters (D-Calif.) has gone several steps farther, drafting legislation to ban large tech companies from launching a digital currency.

Facebook has said it hopes to introduce both Calibra and Libra at some point next year.

Margrethe Vestager, head of the European Union’s competition division, is gearing up to launch a formal antitrust investigation into Amazon, according to Bloomberg. 

Vestager, who announced last year that her team had begun looking into how Amazon uses the data from sales of its third-party sellers, is reportedly set to launch a “full-blown” antitrust probe in the coming days. 

In September, when the investigation was still in its preliminary stages, Vestager explained that she wanted to make sure that Amazon wasn’t undercutting sellers. She added that EU regulators are primarily focused on protecting consumers by making sure competition and innovation aren’t being stifled. 

“They host a lot of little guys, and at the same time, they’re a big guy in the same market,” Vestager said in an interview with CNBC. “So how do they treat the data that they get from the little guy? Does that give them an advantage that cannot be matched?”

Ensuring competition

During her term, Vestager has hit major tech corporations with steep fines for business practices that were ultimately deemed to be unfair. 

In 2016, Vestager’s office forced Apple to pay $16 billion in back taxes to Ireland. Google has been fined more than $9 billion for alleged violations since 2017. Qualcomm is also reportedly facing a fine of more than $1 billion for allegedly trying to stop other chipmakers from doing business with Apple. 

“If powerful platforms are found to use data they amass to get an edge over their competitors, both consumers and the market bear the cost,” Johannes Kleis of BEUC, the European consumer organization in Brussels, told Bloomberg.

A bipartisan group of senators are introducing a bill that would prevent President Trump from easing restrictions on Chinese tech giant Huawei. 

The Defending America's 5G Future Act would lock in the terms of the original executive order which barred U.S. companies from selling telecom equipment to Huawei. Under the bill, exemptions offered by the Trump administration would not be allowed. Congressional approval would be required for Huawei to be removed from the Commerce Department’s “Entity List.” 

The bill is being led by Sens. Tom Cotton (R-AR) and Chris Van Hollen (D-MD), who argue that it would be a mistake to let U.S. companies resume business with Huawei. 

“Huawei isn’t a normal business partner for American companies, it’s a front for the Chinese Communist Party,” said Cotton. “Our bill reinforces the president’s decision to place Huawei on a technology blacklist. American companies shouldn’t be in the business of selling our enemies the tools they’ll use to spy on Americans.”

Keeping Huawei blacklisted 

Over the summer, President Trump -- who has a history of trying to restore trade with Chinese companies -- announced that he would grant exemptions for Huawei, which is currently blacklisted. Trump said the exemptions would be issued as long as they didn’t "impact our national security.” 

The announcement sparked concern from lawmakers on both sides of the aisle, who say Huawei poses a threat to national security.

“The best way to address the national security threat we face from China’s telecommunications companies is to draw a clear line in the sand and stop retreating every time Beijing pushes back," said Chris Van Hollen (D-Md.). "President Trump shouldn’t be able to trade away those legitimate security concerns."

After 13 years of 500 million 280-character tweets a day, Twitter has decided its design needs a refresh, and one is finally here for the whole world to see. 

The platform is banking that improvements in browsing, speed, and customization will have a nice payoff, but it’s the chance to be daring that Mike Kruzeniski, Twitter's senior director of product design, thinks is the most important component.

“Some of it is subtle, but a lot of it is a simplification of design,” Kruzeniski told Wired. “We are trying to find the right places to be bold again, but it’s a resetting of that foundation. Starting with the best stuff and building from there.”

What Twitter users will see

Twitter says it’s had its ear to the ground, taking in hundreds of thousands of responses during the two-year long process of bringing the new version of its site to fruition. The end result? Here’s what Twitter, in its own words, believes are the important improvements the end user will see:

• More of What’s Happening: “We’ve brought over Explore to bring you the same great content found in our apps; expect more live video and local moments personalized for wherever you are in the world. Get context with profile information within conversations and check out your Top Trends in any view so you never miss what’s happening.”

• Easy Access to Your Favorite Features: “Bookmarks, Lists, and your Profile are right up front and have their own spot on the side navigation, making it easier and faster to jump between different tabs.”

• Direct Messages All in One Place: “Direct Messages have been expanded so you can see your conversations and send messages all from the same view. Now there’s less hassle switching between screens to send a message.”

• Login, Logout Struggle No More: “Whether you have one profile or a few, now you’re also able to switch between accounts faster, directly from the side navigation; your stan, foodie and cat meme accounts thank you.”

• Make Twitter Yours: “The love is real for dark mode themes Dim and Lights Out. You’ve asked for even more ways to personalize Twitter so we’re bringing you different themes and color options, along with two options for dark mode.”

What do the users say?

Twitter’s opinion of its revamped platform is not one that everyone shares. As a matter of fact, it faced a firestorm of dissidents the morning of the redesign’s launch.

“They must have a shower of donkeys working at twitter who don't have a clue what people want,” tweeted one user.

“This is such a bad design that no one wants. I really don't know what the design team was thinking, because this update is not suitable for desktop usage at all. You've designed it to function like a mobile app with obnoxiously big buttons + sections, but this ain't a mobile,” wrote another.

Despite the requests to undo what’s already been done, Twitter seems to want to deflect comments about design. It’s seeking to remind its user base that its “purpose is to serve the public conversation,” according to statements Twitter founder Biz Stone gave Wired. 

Wired’s Arielle Pardes says that Stone’s focus on Twitter penetrates the platform’s redesigned office space, too. “Walk through any of the remodeled parts of the office and you get the message loud and clear: Twitter is about the people, not the product. Now the company hopes that message comes through on its website too,” she said.

Only time will tell. 

A health insurance technology company has retired more than $1 million in medical debt for Minnesota consumers after paying off nearly $2 million in health care debt for California residents.

The company, GetInsured, said it took the action after a survey it commissioned showed 60 percent of Minnesota consumers had gotten a surprising medical bill, or one that was difficult to pay.

GetInsured was able to wipe out $1,065,587 in Minnesota medical debt by making a contribution to RIP Medical Debt, a nonprofit 501(c)(3) charity that locates, buys, and forgives medical debt on behalf of donors for pennies on the dollar.

When a consumer is burdened with huge medical bills they can’t pay, the creditor usually sells the debt for significantly less than the amount owed. RIP Medical Debt, with donations from churches and other charitable organizations, buys the debt and forgives it. 

A million dollars in medical debt can often be wiped out with just a few thousand dollars. If you want to see how it works, watch the video below.

Issue of tremendous consequence

"Medical debt is an issue of tremendous consequence, as we know that it can drive middle and working-class families into poverty," said Chini Krishnan, co-founder and CEO of GetInsured. "While the root causes of medical debt undoubtedly need to be addressed by policymakers, our mission, as a company, is to make sure everyone has access to affordable, quality health care with a health plan that best suits their needs."

The survey showed about 30 percent of Minnesota consumers owed more than $1,000 in medical debt within the past five years. A little more than half did not seek medical treatment for themselves or family members because of their concern about what it might cost.

It turns out that you don’t necessarily need deep pockets to help people get relief from their medical debt. In Syracuse, N.Y., 18-year-old Talia Zames recently raised $15,000 and partnered with RIP Medical Debt to abolish $6.7 million in medical debt in her hometown.

A recent report and survey by West Health and Gallup found that Americans spent a total of $3.7 trillion on health care or an average of $10,739 per person in 2017, the most recent year for which data was available. To pay for those costs, Americans borrowed $88 billion, the report says. 

More than 60 percent of consumers who have filed for bankruptcy said a medical bill “very much” or “somewhat” contributed to their bankruptcy, according to a study published recently in the American Journal of Public Health.

Chrysler (FCA US LLC) is recalling 27 model year 2019 Ram 1500 trucks.

The spare tire provided may differ in size and required inflation pressure from the information on the tire placard label.

If referencing the tire placard label, the driver may incorrectly inflate the spare tire, increasing the risk of a crash.

What to do

Chrysler has notified owners, and dealers will replace the incorrect size spare tire with the correct size spare tire free of charge.

The recall began June 27, 2019.

Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is V67.