Current Events in October 2019

Macy’s, once famous for its mink coats, has become the nation’s largest retailer to announce it will stop selling fur.

The company said it will end fur sales at all of its Macy’s and Bloomingdale’s stores at the end of fiscal year 2020. At the same time, the company said it will be closing its fur vaults and salons. Macy’s chairman and CEO Jeff Gennette says the decision is based, in part, on dramatic shifts in consumer preferences.

“Over the past two years, we have been closely following consumer and brand trends, listening to our customers and researching alternatives to fur,” Gennette said. “We’ve listened to our colleagues, including direct feedback from our Go Green Employee Resource Group, and we have met regularly on this topic with the Humane Society of the United States and other NGOs.”

Praise from animal rights group

The move won immediate praise from the Humane Society. The group’s CEO Kitty Block said it was a principled decision.

“This announcement is consistent with the views of countless consumers in the marketplace, and other retailers should follow,” Block said. “With so many designers, major cities and now a state taking a stand against the sale of fur, we’re that much closer to ending this unnecessary and inhumane practice.”

In fact, Macy’s has been inching closer to this position over the years. The company says its private brands are already fur-free, so extending the policy was a natural next step. 

‘Fashionable faux fur’

A number of other brands, including Prada, Ralph Lauren, Gucci, and Burberry have already stopped selling real fur. Retailers JC Penney and Sears previously removed fur products from their shelves.

“We are proud to partner with the Humane Society of the United States in our commitment to ending the sale of fur,” Gennette said. “We remain committed to providing great fashion and value to our customers, and we will continue to offer high-quality and fashionable faux fur alternatives.”

Man has been wearing animal pelts for thousands of years as a way to fight off winter’s frigid temperatures. In more recent times, however, fur has been associated with high fashion and affluence. 

Groups like the Humane Society have campaigned against the use of fashion fur for decades, saying there are plenty of other materials to keep people warm in the winter.

A new study conducted by researchers from Emory Health Sciences found that consumers could be improving their brain health when making progress towards improving their cardiovascular health (CVH).

The researchers conducted their study on twins and found that taking measures to have better CVH led to sharper cognitive abilities. 

“Our study across the entire sample of twins confirmed that better CVH is associated with better cognitive health in several domains,” said researcher Dr. Viola Vaccarino. “The analyses further suggested that familial factors shared by the twins explain a large part of the association and thus could be important for both cardiovascular and brain health.” 

Testing pairs of twins

The researchers chose 272 pairs of male twins as their test subjects to understand the role that genetics and family history played on health outcomes. 

All of the participants completed lengthy questionnaires regarding their day-to-day habits, medical history, mental health, and socioeconomic status. Every person also took part in extensive physical examinations and had their cognition and memory tested using popular neurological exams. The goal was to compare the trajectory of heart health with overall cognitive functioning. 

The researchers were able to assess participants’ cardiovascular health using the American Heart Association’s (AHA) top seven factors that contribute to either CVH, which is positive, or cardiovascular disease (CVD), which is cause for concern. The factors are blood pressure, cholesterol, blood sugar, physical activity, diet, body mass index (BMI), and smoking.

Connecting physical and mental health

The study revealed that participants were more likely to have sharper cognitive skills if they checked off more items on the AHA’s list. The researchers found that optimal heart health could work to reduce the risk of developing dementia. 

Though the researchers found that genetics and life experiences did play a role, these findings also emphasize the importance of how widespread efforts to improve CVH can also improve cognition, especially into older age. 

“Improving population-level CVH scores, which are extremely low in the United States, has the potential to reduce the burden of dementia along with heart disease,” said researcher Dr. Ambar Kulshreshtha. “Because CVH factors are modifiable, prevention of cardiovascular risk factors and promotion of a healthy lifestyle beginning early in life should achieve the best results for promoting not only cardiovascular health, but also cognitive health.” 

A new study conducted by researchers from American University explored the work that is necessary for companies to ensure that their data -- and their customers’ data -- remains secure. 

The study revealed that regardless of how firm a company is on security, they could be more susceptible to a data breach if one of their affiliated vendors is more laid back on the issue. 

“Companies that want to be the most effective at preventing cyber-attacks need to look at every entity that handles their data,” said researcher Ayman Omar. “If you have one weak link, the entire operation is compromised. If I’m running a company that has strong cybersecurity measures in place, but my third-party vendors don’t, the company is still at risk.” 

The researchers explained that a company’s vendors will often reap the rewards of the company’s cybersecurity efforts, as those protections will extend to cover beyond just the company in question. However, this study also found that those efforts need to be reciprocated on all ends, as all of that shared data can become more vulnerable to hackers when there aren’t comprehensive cybersecurity practices put into place.

Moving forward, the researchers suggest that companies put competition aside in their efforts to protect their data and their customers’ data, and work alongside potentially rival companies to ensure that data remains secure. 

“It’s in the best interest of companies that normally compete with each other to combine investments to make cybersecurity supply chains better,” said Omar. 

Being mindful of public networks

With many companies now offering free WiFi to their customers, a recent study explored how public networks can be susceptible to cybersecurity attacks. 

The researchers found that routers used in many public spaces or in consumers’ homes contain two networks -- one that contains more private data and another that is for guest use. However, hackers are able to work in shared channels that gives them access to both the public and the private network, which can help them steal data from either one. 

To avoid such issues, the researchers suggested having entirely separate devices designated for personal use versus public use. They explained that doing this can prevent hackers from stealing or sharing information. 

“All of the routers we surveyed regardless of brand or price point were vulnerable to at least some cross-network communication once we used specially crafted network packets,” said researcher Adar Ovadya. “A hardware-based solution seems to be the safest approach to guaranteeing isolation between secure and non-secure network devices.”

Next to purchasing a home, perhaps the next biggest decision a consumer can make is sinking thousands of dollars into remodeling that home.

Whether it’s updating a kitchen or bathroom, or adding a deck or patio, a recent National Association of Realtors (NAR) survey found that spending money to improve your home can pay off. In some cases, the improvement can make it easier to sell your home and maybe even bring a higher price. But the NAR survey suggests there are psychological benefits for homeowners as well. 

In its 2019 Remodeling Impact Report, NAR looked at 20 possible home improvement projects and interviewed consumers who have taken them on. The report ranks the appeal of each project, taking into account its impact on resale and overall functionality.

The survey found that a remodeling project allowed consumers to have a greater appreciation for their homes and increased the joys of homeownership. Seventy-four percent of survey respondents said the project gave them a greater desire to remain in their homes. 

“Realtors and homeowners alike recognize the value of taking on a major home remodeling project,” said NAR President John Smaby. “While these tasks can be time-consuming and costly, the projects are well worth the temporary inconveniences, as this report shows, and the final products ultimately reward us with feelings of accomplishment, satisfaction, and higher home values.”

Some projects are more rewarding than others

Results from the survey show that some projects have a bigger payoff than others. 

On the survey’s “Joy Score,” a complete kitchen renovation received a top score of 10.  Ninety-three percent of homeowners said they have a greater desire to be at home since the kitchen project, and 95 percent said it adds to the enjoyment of being at home.

“The kitchen is a space homeowners frequent regularly throughout the course of the day,” said NAR Chief Economist Lawrence Yun. “So when that area is remodeled to owners’ exact preferences – as they enter and exit the room – they continually experience the satisfaction of a job well done.”    

Closet upgrades

Upgrading a home’s closets -- either by adding more or expanding them -- also gained a top Joy Score of 10. This might come as a surprise, but the survey authors say it makes perfect sense. A junky, disorganized closet is a major headache, especially when it’s encountered at the start of the day.

Completely repainting the interior of the house ranks nearly as high. A complete paint job in colors the homeowner selects has a Joy Score of 9.8. It’s also one of the more cost-effective improvements and is something many homeowners can do themselves, making it even more cost-effective.

Members of the United Auto Workers (UAW) union will vote Friday on a proposed contract with General Motors (GM), which could send 46,000 union members back to work and allow the company to resume vehicle production, which has been idled for more than a month.

In the past, the ratification of a contract approved by union leadership has almost been a sure thing. Lately, however, it has been less certain. In 2015, workers at Fiat Chrysler (FCA) rejected a pact that the leadership had approved. At this point, no one is taking the rank and file vote for granted.

The union leadership accepted a proposed contract with GM last week but said its 48,000 GM workers would remain on strike until the agreement was approved. The union pushed for increases in pay and benefits that it said were set aside a decade ago while the industry was trying to emerge from the Great Recession.

“We thank the public for their support during the strike and their continued support as UAW GM members review the tentative agreement,” UAW Vice President and Director of the General Motors Department Terry Dittes said in a joint statement last week. “Ultimately, UAW members will make the decision to ratify the agreement. Their unity and solidarity brought us to this moment.”

Several advantages

The proposed contract contains several advantages for union members. They would get increased annual raises or lump-sum bonuses. At the same time, the union said it would not attempt to stop GM from closing four facilities, including three assembly plants and a parts distribution center.

Some analysts have suggested that the most tension between the industry and its union has to do with electric vehicles. The government is forcing automakers to produce more electric vehicles that don’t require as many workers or as many assembly plants. In fact, more of the tasks associated with producing electric vehicles can be performed with robots.

GM, like other automakers, has changed its portfolio of vehicles, which affects its workforce. Last November, GM announced it was phasing out some of its sedans and transitioning to the automotive future, which may involve consumers purchasing fewer cars and being more discerning about the vehicles they buy.

For its part, GM said its contract offer includes new investments that will produce more union jobs. But it’s unclear how many jobs will be eliminated as the industry undergoes what may be radical change over the next few years.

The Federal Trade Commission (FTC) threw another punch to the developers of three large “stalking” apps on Tuesday. Regulators say the apps, in effect, kept a record of a person’s every step.

The FTC charges that Retina-X developed three mobile device apps -- MobileSpy, PhoneSheriff, and TeenShield -- that allowed purchasers to monitor mobile devices on which they were installed without the knowledge or permission of the device’s user. 

Retina-X Studios likes to think of its products as “cutting edge technology that helps parents and employers gather important information on devices they own.” The company’s owner, James M. Johns, Jr., is also named in the complaint.

Three apps

Here’s how the company promoted the so-called stalking apps:

MobileSpy: “Need to know if your child or employee is abusing their SMS text messages, GPS locations and mobile apps? Mobile Spy helps parents learn about their child’s smartphone and tablet activities.”

PhoneSheriff: “What does your child do on their mobile? Are you worried they are abusing their phone privileges? PhoneSheriff allows you to monitor actions and filter out those you don't want. You can even create a schedule for allowed usage.” 

TeenShield: “Know everything about your child's digital world to keep them safe.”

The complaint

The FTC argues that Retina-X’s apps supplied app purchasers with the ability to view sensitive information about device users. Those pieces of data run from monitoring the user’s physical movements to where they go and what they do online. As a sidebar issue, the devices that downloaded the app allegedly opened up added security vulnerabilities.

Another major segment of the complaint is that Retina-X and Johns failed to sufficiently secure any information that was collected from mobile devices. 

“This is our first action against a so-called ‘stalking app,’” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “Although there may be legitimate reasons to track a phone, these apps were designed to run surreptitiously in the background and are uniquely suited to illegal and dangerous uses. Under these circumstances, we will seek to hold app developers accountable for designing and marketing a dangerous product.”

The FTC didn’t demand that Retina-X shut down completely. The proposed settlement asks that Retina-X and Johns require purchasers to confirm that they will only use the app to monitor a child, an employee, or another adult who has given them written consent. On top of that, the developer has to place an icon with the name of the app installed on the mobile device; the app would be removable only by the parent or guardian who installed the app.

Protecting yourself against stalking apps

Like so many apps in app land, it’s not easy to pick out the good guys from the bums. The National Network to End Domestic Violence (NNEDV) says that there are easy steps consumers can take to stay vigilant.

Some red flags that might indicate that there is a stalking app on your phone may include:

1. The “abuser” has physical access to your phone (like at your home or office).

2. The “abuser” knows specific information about you (things that only you should know).

3. Your phone battery drains faster than normal.

4. There are unaware, unexplained charges on your credit card statement.

5. You encounter problems turning your phone off.

“An increasing number of apps for smartphones and tablets are attempting to address the issues of domestic violence, sexual assault, and/or stalking,” NNEDV writes. “Some apps are screening tools for survivors and professionals to recognize abuse and find resources. Other apps are meant to be a tool to contact help during an emergency.”

An investigation by CNBC has discovered that Amazon shipped and sold expired food.

Now, keep in mind that the fingers being pointed here are not necessarily at Amazon as the “seller” of the product, but rather third-party vendors who may buy in bulk or have drop-shipped from overseas and resold on Amazon. Nonetheless, Amazon’s good name has taken on some tarnish because the transactions happened on its platform.

What expired foods were sold

CNBC found a wide range of expired products ranging from beef jerky to baby formula that were sold past the item’s sell-by date.

Why? Well, the investigators say you can blame technology.

“Interviews with brands, consumers, third-party sellers and consultants all point to loopholes in Amazon’s technology and logistics system that allow for expired items to proliferate with little to no accountability,” said CNBC’s Annie Palmer. “Consumer safety advocates worry that as the marketplace grows, the problem will only get worse.”

To its credit, Amazon said it took “corrective action” regarding the issue, but the company told reporters that the incidents were isolated and didn’t require enforcement action against the sellers, such as forcing them to remove the products from the site.

On top of CNBC’s detective work, ConsumerAffairs did some digging of its own and found the following expired products -- or products that raised the ire of consumers -- for sale on Amazon:

• Kellogg’s Rice Krispies Treats. This product was sold by Kimeco, an Amazon third-party seller claiming to “understand the value of name brand quality products, at an affordable price with the convenience of home delivery.”

“Wish I could give no stars,” wrote one buyer. “DO NOT ORDER from this seller. So disappointed with my purchase. These were to be used for a dessert table & when I received them the box showed that they were EXPIRED!! I ordered them on May 1st & expiration date says April 25! These were useless.”

• Duke's Mayonnaise. This product is sold by Terrific Deal, Inc. and fulfilled by Amazon. Twenty-seven percent of the customer reviews were 1-star (there’s no way to give “zero” stars). The case with this product was not the expiration date but the questionable condition it arrived in. 

“Received in terrible condition. It was a jar of oil, not at all creamy like the description says. Had to throw it out! It was disgusting. I am not saying all Duke’s mayonnaise is like that but this jar was not good. We were so anxious to try it based [on] the reviews,” one user wrote.

• Similac Pro-Sensitive Infant Formula. It appears that Amazon is both the seller and shipper for this particular item. While CNBC’s investigation uncovered a minimal number of mentions regarding the expiration date, ConsumerAffairs found a potentially larger concern. A number of the consumer reviews were 1-star, and many of those thumbs-downs centered around the product’s seal. 

“Ordered 2 containers and both ‘New’ seals were torn. One container had the inner aluminum seal torn. There seems to be quality control issues with this product,” wrote one buyer. “Seal was open when I opened the box and there was no way to return it. We will not be using this formula. A total waste of $30!,” complained another user.

Grocery shoppers can’t be too careful

With Amazon’s name shining a laser beam on the situation, it serves as a good reminder that consumers simply can’t be too careful whether they’re buying online or at a discount store like Family Dollar or Dollar Tree. 

According to the Institute of Food Technologists, the bulk of U.S. food companies stamp lot codes and/or expiration dates on their products. There are two types of codes to pay attention to:

• Lot Code: When manufacturers produce a product, they do so in batches. Each batch is assigned a unique series of numbers that make it possible for manufacturers to track exactly when a problem occurred and which products need to be recalled.

• Expiration Dates: These are numbers represented in a date format that are used to provide a guideline for consumers so they will know when a food product is either no longer safe to eat or might not taste as good as it did when originally produced.

When you’re buying online -- be it on Amazon or any other site --  take a look at the 1-star reviews as well as the 4- and 5-star ones. Many times, there are considerations you haven’t thought of buried in those negative reviews.

A Boeing pilot admitted to “unknowingly” lying to regulators in 2016 about the safety of 737 Max jets, which have been grounded since mid-March in the wake of two fatal crashes. 

In messages released Friday, Boeing’s former chief technical pilot for the 737 complained to a colleague about the safety system, which is believed to be at least partly to blame for the accidents. Pilot Mark Forkner said in the messages that the MCAS software was making the plane difficult to control in a flight simulation.

“Oh shocker alert! MCAS is now active down to M .2. It’s running rampant in the sim on me,” Forkner told a colleague referring to the simulator, according to a transcript reviewed by the New York Times. “Granted, I suck at flying, but even this was egregious.”

Attorney says there was no “lie”

Forker then said he may have misled federal regulators when, months earlier, he had informed the Federal Aviation Administration (FAA) that the system was safe and didn’t need to be included in pilot manuals. Regulators declared the 737 safe to be used for the public in 2017.

“I basically lied to the regulators (unknowingly),” he said, according to the Times. His colleague responded, “It wasn’t a lie, no one told us that was the case.”

Forkner’s attorney, David Gerger, told various news outlets that there was no “lie.” 

“If you read the whole chat, it is obvious that there was no ‘lie.’ The simulator was not reading right and had to be fixed to fly like the real plane,” Gerger said. “Mark’s career — at Air Force, at FAA, and at Boeing — was about safety. He would never put anyone in an unsafe plane. And based on everything he knew, he absolutely thought this plane was safe."

System implicated in crashes

Following the fatal crashes, investigators found that the MCAS repeatedly forced both planes into nosedives. The pilots attempted to regain control but ultimately couldn’t. 

“With the release of the preliminary report of the Ethiopian Airlines flight 302 accident investigation it’s apparent that in both flights the Maneuvering Characteristics Augmentation System, known as MCAS, activated in response to erroneous angle-of-attack information,” Boeing CEO Dennis Muilenburg said in April. 

Airline pilots said after the crashes that they did not know about the MCAS system until after the first crash, according to NBC News. 

The FAA said in a statement that the message exchange turned over by Boeing Thursday night is “concerning.” The agency is now considering how to respond. Boeing is facing criticism over waiting several months to turn the messages over to regulators. 

“I expect your explanation immediately regarding the content of this document and Boeing’s delay in disclosing the document to its safety regulator,” wrote FAA chief Dickson in a letter to Muilenburg. 

Netflix announced Monday morning that it’s planning to offer another $2 billion in debt to fund its investment in content. The streaming giant also offered $2 billion in new debt for the same purpose back in April. 

The company said it intends to use the net proceeds from its latest offering “for general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”

The move comes ahead of the November launch of highly anticipated streaming services from both Disney and Apple. 

Rising streaming competition

Netflix CEO Reed Hastings insisted last week that the company isn’t particularly worried about new competition in the streaming market. In a letter to shareholders accompanying its third quarter earnings report, Netflix said Apple TV+ and Disney+ aren’t likely to bump Netflix from its current spot as an industry leader. 

Hastings said that Disney is going to be a “great competitor,” but he assured investors that the new services will only bolster the streaming industry’s ability to compete with linear TV.  

“We’re all relatively small compared to linear TV,” Hastings said. “So we’re not really competing with each other, but with broadcast.”

Netflix executives said the launch of the new streaming services will be “noisy” and may bring “some modest headwind” to its near-term growth. However, the company said it doesn’t anticipate a big impact on its long-term growth. 

Netflix’s latest investment will help to fuel and sustain its expansive content lineup, which it says is crucial to keeping its subscriber numbers up.  

A new study conducted by researchers from the American Cancer Society explored the financial implications that cancer survivors need to contend with and how health insurance plays a role. 

According to the researchers, struggling to understand health insurance policies or medical bills is rather common. In these instances, that stress can spill out into financial decisions that aren’t medical, as well as into other areas of life. 

“Growing evidence suggests that health insurance literacy is a nationwide problem in the United States, and is associated with adverse effects,” the researchers explained. 

Health insurance literacy

To better understand how health insurance literacy plays a role in cancer survivors’ day-to-day lives, the researchers conducted a survey of over 900 adult cancer survivors. 

The survey covered a wide variety of questions designed to gauge participants’ current financial status, including how confident they feel reading and understanding medical bills and other medical documents, to what extent their medical care has been compromised by that lack of knowledge, and how their daily habits are affected or have changed following treatment. 

Overall, nearly 19 percent of survivors under the age of 65 and over 14 percent of survivors over the age of 65 reported problems with health insurance literacy. The researchers learned that when survivors struggled to understand their medical bills, or had questions regarding their health insurance policies, they felt it in other areas of their lives. 

Survivors were more likely to make financial sacrifices in other areas of their lives -- such as dipping into their savings earlier than planned or changing their living situation -- when they struggled with understanding the full spectrum of their health insurance. 

The study also revealed that health insurance literacy problems contributed to higher instances of mental health concerns for cancer survivors. The researchers suggest that work be done in this area to help ease the financial burden associated with medical care. 

“Interventions such as financial and health insurance navigation, decision aids, and more user-friendly and easier-to-read medical bills, which improve patients’ understanding of health insurance and medical costs, could potentially be applied to improve health insurance literacy and benefit cancer survivors,” the researchers wrote. 

Finding the time to fit a workout in can be difficult for many consumers who already have busy schedules, but a new study suggests that finding time before eating could yield the most benefits. 

According to researchers from the University of Bath, consumers who work out before they eat breakfast could be maximizing the exercise benefits. They say that working out early not only burns more fat, but it also reduces the risk of serious health conditions. 

“Our results suggest that changing the timing of when you eat in relation to when you exercise can bring about profound and positive changes to your overall health,” said researcher Dr. Javier Gonzalez. “We found that men in the study who exercised before breakfast burned double the amount of fat than the group who exercised earlier. Importantly, whilst this didn’t have any effect on weight loss, it did dramatically improve their overall health.” 

Getting the most out of your workout

To see how big of a role timing played in the effectiveness of a workout routine, the researchers divided 30 men into three different groups based on when they ate breakfast and when they exercised. One group carried on with their routines as usual, one group exercised before eating breakfast, and another group ate breakfast before their workout.

After analyzing data from the six-week study period, the researchers determined that working out before breakfast led to increased fat burning. The researchers believe that waiting to eat allowed participants’ muscles to utilize fat already stored within the body to power through the workout. 

The researchers say that working out before breakfast could reduce the risk of diabetes or cardiovascular disease, as the body was more receptive to insulin when participants exercised before eating. 

Overall, the study emphasized the importance of consumers paying more attention to how their mealtimes and exercise times can work together to leave them with the greatest benefits and better health outcomes. 

“This work suggests that performing exercise in the overnight-fasted state can increase the health benefits of exercise for individuals, without changing the intensity, duration, or perception of their effort,” said researcher Dr. Gareth Wallis. “We now need to explore the longer-term effects of this type of exercise and whether women benefit in the same way as men.” 

As their trial in connection with the opioid epidemic was set to begin, four drug companies have reportedly agreed to a settlement with two Ohio counties.

The Wall Street Journal reports AmerisourceBergen, Cardinal Health, McKesson, and Israel-based drugmaker Teva Pharmaceutical will announce the $256 million settlement later today. There is one other defendant in the case -- pharmacy retailers Walgreens -- but it may or may not be included in the reported deal.

The lawsuit is one of thousands filed by state and local jurisdictions that blame drug companies and distributors for the opioid addiction crisis that has gripped wide areas of the country. The Centers for Disease Control and Prevention (CDC) puts the number of opioid overdose deaths at 400,000 from 1997 to 2017.

Cuyahoga and Summit counties in Ohio have sued, asking for $8 billion to pay for addiction treatment programs and to cover other addiction-related expenses, including health care and law enforcement.

In a joint statement over the weekend, McKesson, Cardinal Health, and AmerisourceBergen denied charges leveled in the lawsuit and said they only fulfilled their legal role.

“We remain deeply concerned by the impact the opioid epidemic is having on families and communities across our nation — and we’re committed to being part of the solution,” the companies said in their statement.

Other settlements

So far, the two Ohio counties have reached settlements with various companies involved in opioid drug manufacturing and distribution, totaling more than $60 million. The settlements include Johnson & Johnson, Endo International, Mallinckrodt, and Allergan.

The settlement with Johnson & Johnson was announced earlier this month. The company said it agreed to the Ohio settlement in order to prevent a lengthy trial. It said the settlement agreement did not suggest Johnson & Johnson was admitting that it played a role in the widespread addiction to painkiller drugs.

Under the terms of the settlement, Johnson & Johnson also agreed to reimburse $5 million of the counties’ legal and other expenses incurred in preparation for the trial. The company will also direct $5.4 million of its charitable contributions to non-profit organizations in connection with opioid-related programs in these two counties.

For months there have been rumblings in the economy that growth could be slowing and a recession could be around the corner.

So far, no recession has raised its ugly head but that doesn’t stop consumers from worrying about it. A new survey by Bankrate found 40 percent of consumers say they aren’t ready for a recession, which could entail a loss of income.

Bankrate economists say consumers should be preparing for a slowdown, suggesting most people don’t take proactive steps where their money is concerned. Rather, they react to events and often it’s too late to prevent setbacks.

Bankrate interviewed experts who say there is a 41 percent chance the economy will slip into a recession within the next 12 months. Sixty percent of the consumers in the survey said they have taken steps to prepare, such as trimming their stock portfolios.

Contrarian view

But the recession fears may be exaggerated. In an interview with CNBC, Yale economist Robert Shiller says we could be years away from a recession. Despite all the talk about a possible recession, going back to the beginning of the year, he says the economy could continue to grow.

“Consumers are hanging in there,” Shiller told the network. “You might wonder why that would be at this time so late into the cycle. This is the longest expansion ever. Now, you can say the expansion was partly Obama. But lingering on this long needs an explanation.”

Shiller says President Trump’s pro-business policies, including the huge 2017 tax cut, have changed the playing field. He says consumers have opened up their wallets, in part, because of Trump’s emphasis on consumption.

“I think that [strong spending] has to do with the inspiration for many people provided by our motivational speaker president who models luxurious living,” said Shiller.

Worries about debt

Of course, there could be a downside to that. If you’re spending money you don’t really have, that might boost the short-term economy but it’s not putting individuals in a better financial position.

A new survey from Insider and Morning Consult found that millennials, in particular, are stressed over mounting debt. It’s partly due to student loans, but a growing portion of the debt burden can be traced to growing credit card debt.

Of millennials with credit card debt, the survey found that almost 68 percent are feeling some or a lot of stress. The stress level rises for millennial consumers with student loan debt.

The economists at Bankrate suggest that consumers can best prepare for a recession by paying down high-interest debt. They say it’s also a good idea to increase their emergency savings.

A recession does not have to be an economic calamity like the Great Recession. It’s defined as two consecutive quarters of negative economic growth, something the U.S. economy hasn’t experienced since 2009.

BMW of North America is recalling 3,924 model year 2000-2002 325i & 325xi Sedan, and 323Ci, 325Ci and 330Ci Convertible vehicles.

This recall affects vehicles that may have had a driver-side airbag module installed as replacement equipment such as after a crash necessitating replacement of the original airbag, or as a remedy part for a prior recall.

The front airbag inflator may explode due to propellant degradation occurring after long-term exposure to high absolute humidity, temperature and temperature cycling.

An inflator explosion may result in sharp metal fragments striking the driver or other occupants resulting in serious injury or death.

What to do

BMW will notify owners, and dealers will inspect and, as necessary, replace the driver's air bag module free of charge.

The recall is expected to begin November 25, 2019.

Owners may contact BMW customer service at (800) 525-7417.

Kenosha Beef International of Columbus, Ohio, is recalling an undetermined amount of seasoned beef taco and burrito filling.

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

There are no confirmed reports of adverse reactions.

The following item, produced from September 20 – October 4, 2019is being recalled:

• Cases containing eight 5-lb. plastic bags of “TACO BELL SEASONED BEEF Taco and Burrito Filling” with use by dates of “L2 11/4/19” to “L2 11/18/19”.

The recalled product, bearing establishment number “EST. 10130” on the case, was shipped to five distribution centers, and from there to restaurant locations nationwide.

What to do

Restaurants that purchased the recalled product should not serve it, but discard or return it to the place of purchase.

Consumers with questions may contact Dennis Vignieri at (262) 859-2272, ext. 1205.

Soft Play of Huntersville, N.C., is recalling about 200 Spider Climb playground climbers.

The climbing level platforms were designed too far apart, posing a fall hazard to children who can fall climbing from one level to the next.

There have been 37 incidents resulting in 34 reports of injuries.

This recall involved Spider Climb enclosed vertical rope and plastic platform playground climbers installed in approximately 200 McDonald’s Restaurant Play Places.

The climbers are designed with plastic platforms, ropes, cables and chains for children to scale inside a multi-level enclosed tower assembly.

The climbers, manufactured in the U.S., were sold exclusively to and installed at about 200 McDonald’s Restaurant Play Places nationwide from February 2016, through October 2018, for about $350.

What to do

Soft Play has contacted all purchasers directly and installed all additional platforms free of charge to reduce the distance between platforms.

Consumers may contact Soft Play collect at (704) 948-3442 from 8 a.m. to 5 p.m. (ET) Monday through Friday, or online at www.softplay.com and click on “Recall Alert” at the top of the page for more information.

Juul has ceased sales of its flavored nicotine products in the U.S. ahead of an expected order for it to do so from the U.S. Food and Drug Administration (FDA). 

The e-cigarette maker had previously pulled its flavored products from retail outlets, but its fruit-flavored e-cigarettes were still available online. Juul has now stopped selling flavored products, including mango, creme, fruit, and cucumber. The company is still selling tobacco, mint, and menthol flavored products.

The move comes as federal regulators seek to combat the rise in teen use of the products, which have been linked to severe lung illnesses and deaths. 

Cooperating with regulators 

Earlier this week, a parent whose son died after becoming “intensely addicted” to Juul’s products filed a wrongful death lawsuit against the company. Juul has previously been accused of targeting youth users through its marketing campaign and faces a number of similar lawsuits over its role in the vaping crisis. 

Juul announced last month that it would stop advertising its products in the U.S. and also stop fighting regulators over President Trump’s decision to remove all e-cigarette flavors from the market.

Going forward, Juul says it will continue to try to get its flavored products back on the market as an alternative to smoking for adults. The company said it’s also working on coming up with ways to prevent underage use of its products. 

“We must reset the vapor category by earning the trust of society and working cooperatively with regulators, policymakers, and stakeholders to combat underage use while providing an alternative to adult smokers,” Juul CEO K.C. Crosthwaite said in a statement.