Current Events in November 2019

Experian, one of the three credit bureaus, has introduced another way for consumers to raise their credit visibility.

The company’s new offering, Experian Lift, is described as a suite of credit score products that combines traditional credit scoring with alternative credit and trended data assets to create a more “holistic” picture of consumers’ creditworthiness.

The product, which will be available early next year, is designed to help people with little or no credit record improve their credit standing with credit agencies. Experian said it could potentially help up to 40 million consumers.

Lift is a follow up to Experian Boost, announced late last year, which helps consumers raise their credit scores by counting the types of regular payments — such as rent — that are not part of the traditional credit equation.

To use Experian Boost, consumers must agree to give Experian access to their online bank account that is used to pay bills. Specifically, Boost looks for timely payments on utility and telephone bills, which are currently not included in most credit score formulas.

"There are more than 100 million consumers who are restricted by the traditional scoring methods used today," said Greg Wright, executive vice president and chief product officer for Experian Consumer Information Services. 

A tool for lenders

While Boost is used by consumers, Lift will be a tool that lenders will use to identify consumers who may be creditworthy but lack the traditional evidence to prove it. Using advanced analytics and traditional credit data, Lift will give lenders a record of consumer behavior over a 24-month period to arrive at a Lift credit score.

"Knowing how a consumer is managing credit at a single point in time only tells part of the story,” said Wright. “By looking at historical payment information through our trended data attributes, we can see how a consumer uses credit or pays back debt over time, to create a more accurate risk profile." 

The objective, Experian says, is to provide access to credit to more consumers. For example, a consumer without a credit card or mortgage may have a very low FICO score. But if they pay all their bills on time every month, Lift is designed to identify them as a good credit risk.

A good credit score is an important financial asset. It not only gets you a better rate on a mortgage or auto loan, but some auto insurance companies in certain states use it when considering premium rates. It can also be important in some job application situations.

While researchers are constantly trying to figure out what it is that allows kids to excel in the classroom, a new study conducted by researchers from the University of Arizona discovered that failure could be a key element. 

According to the researchers, it’s hard to learn new things if you’re always succeeding. The team points out that failure is not only normal, but it’s also beneficial — around 15 percent of the time. 

“These ideas that were out there in the education field — that there is the ‘zone of proximal difficulty,’ in which you ought to be maximizing your learning - we’ve put that on a mathematical footing,” said researcher Robert Wilson. 

The benefits of failing

The researchers put their theory to the test on computers. They wanted to figure out how much of a challenge is crucial for optimal learning so that they could better understand when it’s okay to fail. 

After having computers complete simple identifying and sorting tasks, the researchers discovered the “85% Rule.” Ultimately, the computers performed at their best when they weren’t right all the time and there was a margin of error. 

“If you have an error rate of 15 percent or accuracy of 85 percent, you are always maximizing your rate of learning in these two-choice tasks,” said Wilson. 

Don’t shy away from a challenge

The findings emphasize that an element of challenge needs to be present in order for students to get the most out of what they’re being taught so that they can really retain the information. When it comes to students adopting this mentality in class, or consumers of any age who may be taking on a new skill, the researchers do advise that these findings shouldn’t be followed precisely. The computers involved in the study weren’t posed with any theoretical questions, but were instead tested with simple problems that had clear right or wrong answers. 

However, these findings do emphasize an interesting side of learning, which is that consumers should always be looking for a challenge and shouldn’t shy away from failure or giving a wrong answer, as doing so could serve to enhance the overall learning experience. 

“If you are taking classes that are too easy and acing them all the time, then you probably aren’t getting as much out of a class as someone who’s struggling but managing to keep up,” said Wilson. “The hope is we can expand this work and start to talk about more complicated forms of learning.” 

Dorel China America (DCA) is recalling 28,800 Babidéal Storm Booster Car Seats, model BC901BPXL, sold exclusively at Family Dollar Stores.

The label attached to the fabric cover may not have the required safety warnings and instructions.

Without the safety warnings and instructions, caregivers may not know the risks or how to use the child seat properly, increasing the risk of an injury in the event of a crash.

What to do

DCA will notify the registered owners, and will provide a replacement fabric cover that has a compliant warning label in place, free of charge.

The recall is expected to begin December 9, 2019. Owners may contact DCA customer service at (877) 657-9546 or text (812) 373-6673.

BMW of North America is recalling 217 model year 2019-2020 330i, 330i xDrive, and model year 2019 Z4 vehicles.

The needle roller bearings of the counterbalance shafts may have been improperly installed, potentially causing the counterbalance shaft to loosen.

A loosening of the counterbalance shaft could result in severe engine damage, increasing the risk of a crash.

What to do

BMW will notify owners, and dealers will replace the engine free of charge.

The recall is expected to begin December 6, 2019.

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

AT&T has agreed to pay $60 million to settle a five-year-old complaint by the Federal Trade Commission (FTC), which took issue with the company’s use of the word “unlimited” to describe data plans that reduced data speeds.

In 2014, the FTC alleged that AT&T did not adequately inform consumers who signed up for “unlimited” data plans that their speeds were subject to throttling once they exceed a certain amount of data usage.

The agency levied a $100 million fine that AT&T challenged in court. The two sides have settled on the lower amount of $60 million

“AT&T promised unlimited data—without qualification—and failed to deliver on that promise,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection. “While it seems obvious, it bears repeating that Internet providers must tell people about any restrictions on the speed or amount of data promised.”

The practice began in 2011

The FTC said it traced the company’s throttling back to 2011 when mobile data was relatively new and networks were smaller. Both AT&T and Verizon marketed fixed amounts of monthly data for a set price.

For a higher price, AT&T offered an unlimited data plan, but the FTC says the company began slowing speeds after customers used as little as 2 gigabytes during a billing period.

A spokesman for AT&T said the company has not used that data management tool “in years” and that it agrees that the FTC’s position is in the best interest of consumers.

That position calls for AT&T and other telecom providers to clearly state that “unlimited” data plans may be subject to slower speeds after a certain amount of data is used.

AT&T’s latest unlimited plans

This week, AT&T introduced three new unlimited data plans that contain no data caps. However, the company disclosed that in areas of high network congestion some data may be slowed.

Under the terms of the settlement, AT&T is not allowed to make any claims about the speed or amount of its mobile data, including that it is “unlimited,” without disclosing any material restrictions on the speed or amount of data. 

The settlement also requires that the disclosures be made in a way that consumers are sure to see them and not buried in the fine print.

“For example, if an AT&T website advertises a data plan as unlimited, but AT&T may slow speeds after consumers reach a certain data cap, AT&T must prominently and clearly disclose those restrictions,” the FTC said in a statement.

As for the $60 million AT&T is paying in the settlement, the FTC says the money will be used to provide partial refunds to current and former customers who signed up for unlimited plans before 2011. Affected consumers will not be required to submit a claim for the refunds. 

Federal regulators are expected to unveil new restrictions on e-cigarettes in an effort to reduce youth use of the products. However, vape shops could be exempted from those restrictions, Bloomberg reports. 

Speaking at the White House on Wednesday, presidential adviser Kellyanne Conway noted that teenagers like vaping mint and fruit-flavored products, but tobacco and menthol flavored products remain unpopular among youth users — a claim supported by a National Institutes of Health-funded study published Tuesday. 

“Kids report they use mint, and other flavors like mango, bubble gum, tutti frutti, unicorn milk -- pretty remarkable -- and that they don’t care for menthol,” Conway said Wednesday. 

That said, the Trump Administration may not include menthol in the flavored e-cigarette ban it proposed in September. Conway noted that the Department of Health and Human Services (HHS) has jurisdiction over e-cigarettes but not over vaping and vape shops. 

“This is a burgeoning health crisis; the difference is between kids and adults,” Conway said, according to Bloomberg. “So HHS and FDA have jurisdiction over cigarettes and e-cigarettes under the Tobacco Control Act. They do not have jurisdiction over vaping and vape shops, for example. So, if we’re talking about e-cigarettes, the president, yes, he’s been discussing this with his team and he will, or HHS, will make an announcement soon.”

Addressing teen use

HHS Secretary Alex Azar suggested last month that the soon-to-be-announced ban on e-cigarettes would include mint, menthol, and all flavors except tobacco. 

“These products are still getting to kids and we cannot let a whole generation get addicted to them through mint and menthol and other flavors,” Azar said when the ban was initially proposed.

Conway’s comments on Wednesday “indicate there may also be some kind of a reprieve for vape shops, who’ve mounted widespread pushback to a ban and warned it could cost both jobs and votes in 2020,” Bloomberg said. 

An announcement about the plan to restrict e-cigarette flavors to drive down youth use will be made by either the HHS or President Trump soon, Conway said. 

If you’re anything like your fellow Americans, you’re likely to spend some money on holiday-related travel.

In a recent online survey of more than 2,000 U.S. adults, NerdWallet found that nearly half of respondents (45 percent) say they’re willing to personally spend as much as $1,383 to do their holiday travel. In the company’s estimation, that comes out to a whopping $159 billion dropped on holiday travel from sea to shining sea.

"Uncertainty about the economy isn’t stopping Americans from spending significantly on holiday travel this season: Travelers say they will spend almost $1,400 on flights and hotels," said NerdWallet personal finance expert Kimberly Palmer.

Survey highlights

In NerdWallet’s poll, they asked American consumers about what they’re planning to spend on holiday travel, how they’re going to finance it, and what steps they are taking to get a better price on things like flights and accommodations. Here are the highlights:

Billions in credit card spending 

Spending $159 billion on holiday travel is good news for everyone — grandma, airlines, hoteliers — but it’s especially good for credit card companies, which are ready to carry the average $1,105 travelers say they’ll charge to make their holiday travel plans happen.

Using credit cards to finance travel works for both consumers and lenders alike: consumers get to build up some points and miles that they can use down the line, but it’s the lenders who can jump on the gravy train and amass billions in overall spending. If holiday travelers do nothing more than pay the minimum on that $1,105, the lenders can wind up with an extra $386 in interest per consumer by the time the charges are finally paid off.

Travelers are being proactive about saving on their trips

Ninety-one percent of all Americans who plan to spend money on flights and/or hotels for their holiday travel aren’t spending it willy-nilly. Rather, consumers are doing more planning to see where they can shave some of that travel-related debt. 

“Many are opting for price over convenience when choosing flights (39 percent), or over amenities when choosing a hotel/motel (38 percent),” said NerdWallet’s Erin El Issa. “Others are using credit card points/miles (32 percent) and staying with family/friends instead of booking a hotel/motel (29 percent).”

The more the merrier

The study found that if someone is going to book a flight or room over the holidays, they’re inclined to make the most of it by traveling with someone else — a spouse, significant others, kids, pets, et al. 

As a matter of fact, 72 percent of the respondents say they’ll be booking 3.4 round-trip tickets and 5.1 nights of hotel stays, on average. Again, this is a boon to both the travel industry and credit card companies, as those flights and hotel rooms will cost consumers somewhere between $1,633 and $1,916, depending on their travel dates.

Money-saving holiday travel tips

Going further than just publishing numbers, NerdWallet’s team took a step back to view how consumers might use the findings to their advantage.

Prioritize 

“It’s not always financially realistic to travel to see family and buy them extravagant gifts, so it’s important to prioritize what’s most important to you. If you love showering your family and friends with presents, it might make sense to ship the gifts and visit during a cheaper time of the year,” Issa says. 

“Or maybe you can limit gift-giving to just the children in the family or not do gifts at all, and prioritize paying for travel so you can spend time with your loved ones. Figure out how much you feel comfortable spending on the holidays and decide how you want to spend it.”

Reevaluate rewards

Close to a third of consumers who are planning to travel over the holidays say they’re going to try to use points/miles to cover the costs. But, is holiday travel the best use of those rewards? 

“In terms of value per point, you won’t get the most bang for your buck with peak-season domestic travel. If you have an overseas trip planned for next year, that may be the better place to apply your points and miles, while you use cash savings to pay for holiday travel,” deduces Sara Rathner, NerdWallet’s travel guru. 

“But if your one big trip of the year is flying your family across the country for Christmas, then use those points. It’s always better to cash them in for something important to you than save them forever in hopes of planning the ‘perfect’ trip.”

Start saving earlier

As another study found, consumers are ready and willing to take on added debt for the sake of the holiday. And while it might be too late for 2019 travel plans, Rathner says that consumers should start saving earlier to avoid debt.

Instead of going into the red to pay for travel expenses so close to the actual travel dates, Rathner suggests that consumers plan to start saving earlier for their holiday travel expenses earlier in 2020 so they can enjoy visiting their families without fretting about how they’re going to pay off those charges once they get home.

In a blog post on Tuesday, Facebook disclosed that as many as 100 app developers retained data from user groups on the platform.

Facebook changed its Group API settings in the wake of the Cambridge Analytica scandal to ensure that developers could only see basic information when an administration authorizes an app for a specific Group. Before the change was implemented, developers could see member names and profile pictures.

However, the company said it recently became aware that some software developers kept access to member names and profile pictures after the change went into effect.

“As part of our ongoing review, we recently found that some apps retained access to group member information, like names and profile pictures in connection with group activity, from the Groups API, for longer than we intended,” the company said.

Developers contacted

In addition to removing their access, Facebook said it’s also in the process of contacting the developer partners who may have improperly accessed user information.

Facebook said at least 11 partners accessed group members’ information in the last 60 days, but the company did not provide an estimate of how many users were impacted by the breach of privacy.

“Although we’ve seen no evidence of abuse, we will ask them to delete any member data they may have retained and we will conduct audits to confirm that it has been deleted,” the company added.

App developer crackdown

Facebook has been imposing stricter privacy practices following the 2018 Cambridge Analytica scandal, in which 87 million users had their personal data wrongly shared with the political consulting firm.

Last month, Facebook announced that it suspended “tens of thousands” of apps based on how many users they had and how much data they could access. The company said the action was part of a larger “App Developer Investigation” and noted that the apps suspended did not necessarily pose a threat to users. 

In July, Facebook agreed to pay a $5 billion settlement with the Federal Trade Commission (FTC) over its handling of user data in the Cambridge Analytica scandal.

"We aim to maintain a high standard of security on our platform and to treat our developers fairly,” Facebook said in its most recent announcement. “As we've said in the past, the new framework under our agreement with the FTC means more accountability and transparency into how we build and maintain products.”

“As we continue to work through this process we expect to find more examples of where we can improve, either through our products or changing how data is accessed. We are committed to this work and supporting the people on our platform."

A new study conducted by researchers from the National Institute of Allergy and Infectious Diseases found that nearly 20 percent of children who have food allergies could also have a sensitivity to sesame. 

The team explained that screening methods for sesame allergies can be inconclusive, but this study utilized a test for sesame antibodies in the blood, which proved to be effective. 

“It has been a challenge for clinicians and parents to determine if a child is truly allergic to sesame,” said researcher Dr. Anthony S. Fauci. “Given how frequently sesame allergy occurs among children who are allergic to other foods, it is important to use caution to the extent possible when exposing these children to sesame.” 

Monitoring food allergies

As part of the study, the researchers monitored 119 children who consumed increasing amounts of sesame to see if they were intolerant. The method deviated from traditional allergy tests, which usually involve pricking a finger and testing a blood sample.

All of the children involved in the study had another food allergy, but they did not show any sensitivity to sesame at the start of the study. Testing for a sesame allergy proved to be elusive for over 25 percent of the children, but the test revealed that 17 percent tested positive for a sesame allergy. 

Because it can be hard to pin down this allergy, the researchers turned to a sesame-related antibody found in the blood to determine if certain levels would indicate whether or not a sesame allergy was present. Based on their findings, they predicted that children are 50 percent more likely to have a sesame allergy when they have more than 29.4 kilo international units of sesame-specific immunoglobulin E (sIgE) in their blood. 

The researchers explained that more work needs to be done to confirm these findings, but their method currently offer an interesting way for healthcare professionals to determine a child’s sesame allergy status. 

Staying cautious 

Kids’ allergies are not to be taken lightly, as studies have found how children with food allergies are more susceptible to other conditions, such as asthma, eczema, or even anxiety. 

From a mental health standpoint, researchers found that food allergies can make kids feel different and isolated from their friends, and it’s important for school communities to use food allergies as an opportunity for all students to learn. 

"Management of a potentially life-threatening condition may be anxiety provoking, and some children may experience increased social anxiety about being ‘different’ from other children depending on their age and how food allergy is managed by adults in a particular setting,” said researcher Dr. Renee Goodwin. 

Consumers’ stress can come from just about anywhere, but a new study conducted by researchers from the American Psychological Association found that much of this anxiety is linked to the current news cycle. 

A poll conducted in the late summer months revealed that mass shootings, the 2020 presidential election, and healthcare are among the chief factors causing stress for adults across the country. 

“There is a lot of uncertainty in the world right now — from mass shootings to climate change,” said Arthur C. Evans, Jr., CEO at the American Psychological Association. “This year’s survey shows us that more Americans are saying these issues are causing them stress. Research shows us that over time, prolonged feelings of anxiety and stress can affect our overall physical and mental health. Psychologists can help people develop the tools that they need to better manage their stress.” 

Sources of stress

The researchers surveyed over 3,600 adults across the country to question them about what causes them stress. While money and work continue to be the most popular personal stressors, the study also revealed that much of the current news cycle has created trends in stress levels among adult consumers. 

Mass shootings were the highest source of stress, affecting over 70 percent of consumers. It was followed by 69 percent of consumers citing healthcare as a stressor. The 2020 presidential election and climate change were tied for third, affecting 56 percent of adult consumers. 

The researchers also found that stress levels differed among different demographic groups, as nearly 85 percent of Hispanic respondents reported that mass shootings were a source of stress compared with 66 percent of white respondents. Discrimination was also a big source of stress, affecting the day-to-day lives and choices of 63 percent of people of color and 64 percent of LGBTQ people. 

Stress negatively affects health

These findings are in line with a recent study, which found that the effects of stress related to politics can affect consumers’ sleep and overall health, including weight gain and heart disease. Moving forward, the researchers hope that more work is done to help consumers manage their stress levels. 

“This year’s survey shows us that current events affect Americans differently, with people of color more likely to say they feel stressed about health care, immigration, and discrimination,” said Evans. 

“While these are important societal issues that need to be addressed, the results also reinforce the need to have more open conversations about the impact of stress and stress management, especially with groups that are experiencing high levels of stress.” 

America’s shopping malls are in decline, with foot traffic peaking in August 2018. Some experts say the slowdown is just another part of the retail apocalypse. 

But other data shows consumers are still going to the mall, but increasingly they’re there for reasons other than shopping in a department store; they’re going to the food court.

A new survey from UBS confirms that consumers are spending less on apparel at shopping malls, and that could be a contributing factor in the recent decline of shopping mall anchors like Sears and JC Penney.

“Shoppers say they increasingly go to the mall to eat at the food court or just hangout instead of visiting a big box store,” retail analyst Jay Sole told CNBC. 

The UBS survey of consumers showed only 20 percent of people going to a mall are going there to shop at a department store, down from 25 percent 12 months ago. At the same time, the percentage of consumers going to the mall to eat nearly doubled, from four percent to seven percent.

Are malls reinventing themselves?

Some experts believe this change could mean that shopping malls are reinventing themselves to meet new retail realities. Writing in Forbes, Greg Petro, CEO of First Insight, suggests that malls are in the midst of a major evolution. In April, the executive wrote that malls are trying to draw consumers by offering more experiences. 

“The days of meeting friends at the mall and shopping all day are gone,” he wrote. “Malls are still considered a destination, but it’s because they now offer amenities, experiences, and entertainment to enhance the shopping experience. They are now not only anchored by department stores but with popular restaurants, bars, salons, cinemas, and fitness centers.”

But the concept might work better at some malls than others. A recent report by Thasos, a data analytics company, has documented the falloff in foot traffic at malls for most of 2019. It suggests that malls that are focused on selling goods rather than experiences, which tend to do better.

The outlier, however, may be food. Food courts have long been a staple of many shopping malls as a place for consumers to grab a quick bite while taking a break from shopping. The UBS survey paints a changing picture, however. It may be that the food is now the draw, with diners doing a little shopping before they leave.

Chrysler is recalling 107,979 model year 2014-2019 Ram 1500 and 1500 Classic Pickup trucks equipped with 3.0L Eco Diesel engines.

The Exhaust Gas Recirculation (EGR) cooler may crack and allow pre-heated vaporized coolant to enter the EGR system. This mixture may combust inside the intake manifold.

Combustion in the intake manifold can increase the risk of a fire.

What to do

The remedy for this recall is still under development.

The recall is expected to begin December 13, 2019.

Owners may contact Chrysler customer service at (800) 853-1403. Chrysler's number for this recall is VB1.

While most consumers might not think much about they sleep they gain or lose when changing their clocks for Daylight Savings Time (DST), a new study conducted by researchers from Vanderbilt University shows that the change could be significant to a person’s health. 

The study revealed that though the time change is just an hour in either direction, it has the power to greatly disrupt consumers’ natural internal clock. This can ultimately lead to serious health concerns and increase the risk of injuries and accidents. 

“People think the one-hour transition is no big deal, that they can get over this in a day, but what they don’t realize is their biological clock is out of sync,” said Dr. Beth Ann Malow. 

What the body goes through

The researchers analyzed previous studies, all of which have documented how Daylight Savings Time affects consumers’ health in various ways. 

Several studies reported on consumers’ disrupted sleep patterns following the one-hour time change for as long as two weeks after it occurred. This is particularly important, as researchers have recently found that it’s nearly impossible for consumers’ to make up for lost sleep, and it can be hard to overcome the struggles that typically arise from lack of sleep.  

The researchers emphasized that this time change affects the body beyond just when we move the clocks forward or backward. They say that doing so has huge implications on health, as Daylight Savings Time correlated with an increased risk of cardiovascular incidents and stroke. 

Though a seemingly small change, our body’s circadian rhythm becomes unstable due to the change in natural light. The researchers say it can upset other natural body systems and ultimately lead to these more serious health concerns. 

“It’s not one hour twice a year,” said Dr. Malow. “It’s a misalignment of our biological clocks for eight months of the year. When we talk about DST and the relationship to light, we are talking about profound impacts on the biological clock, which is a structure rooted in the brain. It impacts brain functions such as energy levels and alertness.” 

Because of these effects on consumers’ health, many states have been transitioning away from Daylight Savings Time. However, these feelings aren’t unanimous, and it isn’t likely that the entire country will do away with the one-hour change anytime soon. 

Researchers from Tokyo and the University of Michigan have found that laser pointers are capable of “hijacking” smart speakers. 

In a paper titled “Light Commands: Laser-Based Audio Injection Attacks on Voice-Controllable Systems,” the researchers said they found that voice-enabled devices could be tricked into following voice commands by beaming a laser at them. 

The team tested the effect of laser pointers on smart speakers that included Google Assistant, Apple Siri, and Amazon Alexa. They found that these devices interpreted the light of the laser as sound. 

“We have identified a semantic gap between the physics and specifications of MEMS (microelectro-mechanical systems) microphones, where such microphones unintentionally respond to light as if it was sound,” they wrote. “Exploiting this effect, we can inject sound into microphones by simply modulating the amplitude of a laser light.” 

Privacy threat

The effect produced “an attack that is capable of covertly injecting commands into voice-controllable systems” at distances of 230 to 350 away. In one instance, the team successfully commanded a Google Home device that was in a room in another building to open a garage door simply by shining a light that had the “OK Google” command encoded in it. 

The list of devices that were tested and found to be vulnerable to light commands includes Google Home; Google Nest Cam IQ; multiple Amazon Echo, Echo Dot, and Echo Show devices; Facebook's Portal Mini; the iPhone XR; and the sixth-generation iPad.

The researchers said they have already notified Tesla, Ford, Amazon, Apple, and Google about the weakness. They said that mitigating the flaw would require a redesign of most microphones. Lead author Takeshi Sugawara said one possible way to get rid of the vulnerability in microphones would be to create an obstacle that would block a line of sight to the microphone's diaphragm.