Current Events in February 2020

Mercedes-Benz USA (MBUSA) is recalling 28 model year 2019 AMG GT63 4MATICs and AMG GT63S 4MATICs.

A wiring harness for the automatic transmission may not be properly secured, allowing it to chafe against the drive shaft and possibly cause an engine stall, which increases the risk of a crash.

What to do

MBUSA will notify owners, and dealers will inspect the mounting clips and wiring harness, and repair or replace them -- as necessary -- free of charge.

The recall is expected to begin March 27, 2020. Owners may contact MBUSA customer service at (800) 367-6372.

A federal judge has given T-Mobile and Sprint a long-awaited blessing that will allow the merger of the two telecoms.

U.S. District Court Judge Victor Marrero’s approval could significantly change the game and create a new valuation of $26 billion for the newlyweds.

The companies had to leap over innumerable hurdles trying to get to the altar. There was consumer and labor opposition, the Federal Communications Commission (FCC), and a pack of U.S. Senators all raising concerns. The approved merger has folks at T-Mobile both crowing and licking their chops. 

“Today was a huge victory for this merger … and now we are FINALLY able to focus on the last steps to get this merger done,” said John Legere, Chief Executive Officer of T-Mobile.

“We want to thank the Court for its thorough review of the facts we presented in our case. We’ve said it all along: the New T-Mobile will be a supercharged Un-carrier that is great for consumers and great for competition. The broad and deep 5G network that only our combined companies will be able to bring to life is going to change wireless … and beyond. Look out Dumb and Dumber and Big Cable – we are coming for you … and you haven’t seen anything yet!” 

Company promises

In Judge Marrero’s decision, he said that T-Mobile “has redefined itself over the past decade as a maverick that has spurred the two largest players in its industry to make numerous pro-consumer changes. The proposed merger would allow the merged company to continue T-Mobile’s undeniably successful business strategy for the foreseeable future.”

The consumer world can only hope the judge is right and that the benefits T-Mobile has planned come true. These include:

• What’s hailed as “America’s first transformational nationwide 5G network and services.” T-Mobile says that change alone could “supercharge innovation throughout the U.S. economy” and completely change how consumers think about and interact with the internet of things.

• Expanding access for consumers in signal-poor areas. “New T-Mobile’s plans to deploy a higher quality and more robust network for rural America and to prioritize more vulnerable urban populations will ensure that all Americans have a meaningful chance to thrive in the 5G economy,” the company said.

• Making way for lower prices for everyone. In its own words, “New T-Mobile is committed to delivering the same or better rate plans at the same or better prices for three years -- and that includes 5G. With 14X more total capacity in 2024 than standalone T-Mobile has today, the New T-Mobile’s 5G network will bring down the cost of delivering a gigabyte of data… and will vigorously compete for consumers at all price points and all customers, including prepaid and Lifeline, will have access to the same amazing 5G network and services.”

• Providing alternatives for consumers who want specific services. For those consumers who are tired of having to bundle cable and internet when all they want is the internet part, the merger promises go provide the options that consumers have been craving. T-Mobile said consumers can expect speeds of 100+ Mbps speeds for wireless broadband. The company hopes that its in-home service will be available to half the country’s households by 2024.

• Creating more jobs across the U.S. “New T-Mobile will be a job creator from Day One. In year one, New T-Mobile will have more than 3,500 additional full-time U.S. employees than the standalone companies would have had, and 11,000 more people by 2024. Additionally, plans to build more than 600 new retail locations and five new customer experience centers will create approximately 12,000 more jobs -- many in small towns,” the company claims.

Attorney General William Barr has announced the indictment of four members of China’s military for the 2017 Equifax data hack that exposed sensitive information on nearly 150 million people.

The government investigation found that the data breach was part of a massive attack that also stole trade secrets from Equifax. Barr called it a “deliberate and sweeping intrusion” into the private information of the American people.

“We collect information only for legitimate national security purposes; we don’t indiscriminately violate the privacy of ordinary citizens,” Barr said. 

This isn’t the first time China has been accused of a cyberattack on a U.S. data network, but it has always denied the accusations. The Chinese government has yet to comment on the latest charges.

Nine-count indictment

A federal grand jury in Atlanta returned the nine-count indictment against the Chinese nationals who the government says were working for the People’s Liberation Army. They are charged with breaking into Equifax’s online dispute portal by exploiting a major software flaw.

The 2017 data breach caused widespread havoc among the consumers whose information was stolen. Since Social Security numbers were part of the theft, it requires life-long credit monitoring to guard against a victim’s identity being stolen.

Equifax, meanwhile, faced a barrage of lawsuits and has paid out millions of dollars in settlements, the latest coming last summer when the company settled claims by the U.S. government and 48 states.

“It is reassuring that our federal law enforcement agencies treat cybercrime – especially state-sponsored crime – with the seriousness it deserves and that the Justice Department is committed to pursuing those who target U.S. consumers, businesses and our government,” said Equifax CEO Mark Begor. “The attack on Equifax was an attack on U.S. consumers as well as the United States.”

Begor said Equifax has made significant progress in protecting data since the hack. He says the company has invested $1.25 billion since 2018 on beefed-up security and technology.

A coronavirus outbreak that began in China continues to ravage that country and expand to other areas around the world. 

Officials at the Centers for Disease Control and Prevention (CDC) confirmed the 13th infection of coronavirus within the U.S. on Monday. The agency says this latest case was detected in California, and it involves a consumer who recently traveled home after visiting the Wuhan region of China -- the area where the outbreak is believed to have originated.

The agency stated that it is currently conducting a thorough investigation of this individual and any other person they may have come into contact with while carrying the virus. Officials say they are reviewing 68 pending cases of coronavirus that range across 37 states. States with confirmed cases of coronavirus include Arizona, California, Illinois, Massachusetts, Washington, and Wisconsin.

Death toll rises over 1,000 in China

Officials with the World Health Organization (WHO) recently put a name to the current strain of coronavirus, calling it “COVID-19” because it first began to spread late last year.

So far, illnesses and deaths associated with the outbreak have occurred predominantly in China. There have been over 42,000 confirmed cases and 1,017 deaths within that country alone. Health officials have taken steps to try to contain the virus so that it doesn’t spread further into the global community, and certain businesses have even implemented their own precautions.

Infection of the coronavirus leads to a respiratory illness that has been compared to pneumonia. Symptoms have ranged widely from mild fever, cough, and shortness of breath to extreme extensions of those ailments, which have resulted in many deaths. The CDC states that symptoms of COVID-19 may appear 2-14 days after exposure. 

For more information about the outbreak, visit the CDC’s site here.

Heading into an election year, President Trump has proposed a $4.8 trillion budget plan that increases spending for the military and veterans but cuts social safety net programs.

It’s not clear what the final budget will look like since the proposal is generally a starting point for talks. Democrats immediately pronounced the proposal dead on arrival.

The White House says its tough spending decisions are designed to reduce the deficit; White House officials have proposed cuts to housing, environmental programs, and other programs favored by Democrats. The proposal also includes a reduced amount of funding for a wall along the U.S. southern border with Mexico.

In a briefing with reporters, Russ Vought, acting director of the Office of Management and Budget, said the administration would keep proposing the same kinds of budgets until “at some point, Congress will have some sense of fiscal sanity and join us in trying to tackle our debt and deficits.”

Cuts in Medicare spending

Under the budget proposal, the government would cut Medicare spending, relying on reductions in drug costs and tightening eligibility requirements for Social Security’s disability program.

The plan signals a departure from the administration’s previous stance in dealing with Democrats in Congress. In the most recent budget, Trump agreed to a spending program that increased spending on defense but also poured more federal money into domestic programs favored by Democrats, increasing the deficit.

“This budget plan completely reverses that,” Rep. John Yarmouth (D-Ky.) told CNBC.

Senate Budget Committee Chairman Mike Enzi (R-Wyo.) says he’s not even going to hold hearings on the president’s budget proposal because Congress will write its own budget.

“Congress doesn't pay attention to the president's budget exercise,” Enzi said on the Senate floor. “I don't know why we put him through that." 

Optimistic?

Any administration proposes spending under a best-case scenario. In the latest proposal, the White House projects the deficit to shrink by $4.6 trillion over 10 years and assumes the economy will grow at a consistent rate of 3 percent.

But that projection may be optimistic. The Congressional Budget Office (CBO) expects the economy to grow at 2.2 percent in the current fiscal year and may not reach that level in the years ahead. For 2019 the U.S. economy grew by 2.3 percent.

To get the federal budget deficit under control, the spending blueprint proposes cutting spending by $4.4 trillion over 10 years. The White House says that would cut the deficit by $4.6 trillion.

Deficits have grown over each of the last three years, and the national debt has now exceeded $22 trillion.

If you point your ear towards Washington, D.C. today and hear nary a peep, it may be because the Trump administration has discretely dropped its antitrust investigation of the State of California’s agreement with four major automakers in regards to clean emissions standards.

However, 2,722 miles away in Sacramento, California, Governor Gavin Newman is having a good laugh. “These trumped up charges were always a sham -- a blatant attempt by the Trump administration to prevent more automakers from joining California and agreeing to stronger emissions standards,” he said.

The White House originally launched its probe after California signed a milestone deal with BMW, Ford, Honda, and Volkswagen to expand the circle of California’s strict emissions standards to include any vehicles those automakers sell nationwide. At the time, it was seen as a dare to the Trump administration, which was trying its best to reverse Obama-era fuel efficiency minimums. 

“This is a big loss for the president and his weaponization of federal agencies -- and a victory for anyone who cares about the rule of law and clean air,” Newsom said.

In the Courthouse News Service’s coverage of the situation, California Attorney General Xavier Becerra said that the U.S. Justice Department should spend its time and resources focusing on “real anticompetitive behavior” rather than going after automakers willing to combat pollution.

Getting to green

Twelve other states and the District of Columbia have joined California in getting greener on the highway,  including Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington state. Other automakers have also joined in, including Mercedes-Benz.

With cars and trucks coughing up nearly 30 percent of U.S. greenhouse gas emissions and the Environmental Protection Agency (EPA) taking a proactive stance towards informing consumers on the status quo and alternatives they can take, there was certainly sufficient evidence that something needed to be done.

“The only way to really reduce greenhouse gas emissions as opposed to these other traditional pollutants is to either switch the technology or get very high gas standards,” said Deborah Sivas, director of Stanford Law School’s Environmental Law Clinic. 

“So the way these standards get set is kind of on a rolling five-year basis, so that the auto industry can plan its production for the next five years. We had this big deal, and during the 2012 to ’16/’17 period, standards ramped up very slowly. But then they’re supposed to ramp up very quickly. By 2025, we’re supposed to get close to 55 miles per gallon (mpg) as the corporate fuel economy standards.”

Everyone needs to chip in

Automakers getting their vehicles to 55 mpg in five short years might be doable, but the question mark remains with consumers.

Truck sales continue to grow exponentially thanks to lower gas prices, a metric not lost on Ford which has decided to do away with its production of sedans and focus on trucks and utility vehicles.

In the sunset years of the Obama administration and its Corporate Average Fuel Economy (CAFE) initiative, the EPA admitted that getting to 55 mpg would be hard to meet if consumers continue purchasing less fuel efficient trucks and SUVs. That puts a greener auto world between a rock and a hard place.

If that 55 mpg mark is lowered -- say to the 2021 goal of 41mpg -- the Consumer Federation of America (CFA) argues that it would rob motorists of savings at the gas pump by as much as $3,500 per household, not to mention cut about $150 billion from economic growth, spike operating costs to an additional $150 billion, and lose more than $50 billion in environmental and public health benefits.

On the other side of the coin, though, automakers would come out ahead. The CFA’s number-crunching says automakers would realize about $50 billion in savings, while the rest of the economy would reap as much as $350 billion.

Back in November, Amazon filed a lawsuit challenging the federal government’s decision to choose Microsoft for a $10 billion cloud computing contract with the Pentagon. Now, the company is going a step further by seeking depositions from several federal officials -- including Defense Secretary Mark Esper, former Defense Secretary James Mattis, and President Donald Trump. 

The company has already alleged that the government's decision was based on political considerations. In a statement, an Amazon Web Services (AWS) spokesperson pointed to President Trump’s supposed penchant for using political position to his advantage. 

“President Trump has repeatedly demonstrated his willingness to use his position as President and Commander in Chief to interfere with government functions -- including federal procurements -- to advance his personal agenda,” a spokesperson said. 

“The preservation of public confidence in the nation’s procurement process requires discovery and supplementation of the administrative record, particularly in light of President Trump’s order to ‘screw Amazon.’ The question is whether the President of the United States should be allowed to use the budget of the [Department of Defense] to pursue his own personal and political ends.”

“Unmistakable bias”

The $10 billion cloud computing contract -- otherwise known as the Joint Enterprise Defense Infrastructure (JEDI) contract -- is meant to provide the military with better access to technology and information when working in remote areas of the world. 

In a legal motion filed last month, Amazon requested that the current contract set up between the federal government and Microsoft not be allowed to take effect until after its lawsuit has been dealt with. 

“It’s critical for our country that the government and its elected leaders administer procurements objectively and in a manner that is free from political influence. Numerous aspects of the JEDI evaluation process contained clear deficiencies, errors, and unmistakable bias -- and it’s important that these matters be examined and rectified,” said Amazon spokesperson Drew Herdener. 

A recent study found that being more positive can reduce the risk of disease, but researchers from Michigan State University have extended those results to consumers’ romantic partners. 

Their study revealed that having a partner who is happy and optimistic is more likely to bode well for overall health and well-being, as it could reduce the risk of any number of diseases while also boosting cognitive function. 

“We spend a lot of time with our partners,” said researcher William Chopik. “They might encourage us to exercise, eat healthier, or remind us to take our medicine. When your partner is optimistic and healthy, it can translate to similar outcomes in your own life. You actually do experience a rosier future by living longer and staving off cognitive illnesses.” 

A partner’s influence

To see the effect that a happy partner can have on consumers’ health, the researchers followed nearly 4,500 married couples, all of whom were over the age of 50, for eight years. 

At the beginning of the study, the researchers assessed each partner’s optimism; their health and cognitive function were tested every two years throughout the remainder of the study. The team learned that partners who cultivated healthy lifestyles, and who were generally more positive people, had better cognitive outcomes and stronger health overall. 

“We found that when you look at risk factors for what predicts things like Alzheimer’s disease or dementia, a lot of them are things like living a healthy lifestyle,” said Chopik. “Maintaining a healthy weight and physical activity are large predictors. There are some physiological markers as well. It looks like people who are married to optimists tend to score better on all those metrics.” 

While some people are naturally more inclined to have a sunnier disposition, Chopik says that it’s possible for all consumers to make this change to improve their lives. 

“There are studies that show people have the power to change their personalities, as long as they engage in things that make them change,” Chopik said. “Part of it is wanting to change. There are also intervention programs that suggest you can build up optimism.”  

A new housing crisis could be brewing, but this one would be a lot different from the one that nearly brought down the world economy more than a decade ago.

In 2008, the housing market crashed because there was a glut of foreclosed homes coming on the market. The problem this time is that there aren’t enough houses for sale, a situation that is likely to raise home prices and rents and make it harder for consumers to buy a home.

Real estate marketplace realtor.com reports that the inventory of available homes plunged 13.6 percent in January, the biggest drop in four years. The national housing inventory is at its lowest level since the site began tracking data in 2012.

According to realtor.com analysts, that amounts to a loss of 164,000 home listings over January 2019. The analysis suggests there are no signs of a turnaround in the near future since new listings are also down by more than 10 percent.

"Homebuyers took advantage of low mortgage rates and stable listing prices to drive sales higher at the end of 2019, further depleting the already limited inventory of homes for sale,” said Danielle Hale, realtor.com's chief economist. “With fewer homes coming up for sale, we've hit another new low of for sale-listings in January." 

Fewer affordable new homes

But other factors may be at work. Since the housing crash of 2008, homebuilders have produced about half as many new homes as before the bubble popped. Making that problem worse, most of the new homes are priced well above what a first-time home buyer can afford.

Homebuilders say they have faced rising costs for labor and materials and that stricter local zoning has made it harder and more expensive to produce housing developments. To remain profitable, they say they must build more expensive homes.

"This is a challenging sign for the large numbers of millennial and Gen Z buyers coming into the housing market this homebuying season as it implies the potential for rising prices and fast-selling homes -- a competitive market,” Hale said. “In fact, markets such as San Jose in Northern California, which saw inventory down nearly 40 percent last month, are also seeing prices grow by 10 percent while homes are selling at a blistering pace of 51 days."

Impact beyond housing

This could have implications that extend beyond the housing market. National Association of Realtors (NAR) Chief Economist Lawrence Yun recently released a report that showed major metro areas where housing affordability has worsened over the last five years have seen a corresponding drop in job growth. 

“Job growth has slowed in these areas in part because limited supply is making homes less affordable,” Yun said. 

He notes that businesses have less incentive to be located in areas where the inventory of homes continues to fall and home affordability worsens.

Chrysler is recalling 3,005 model year 2020 Jeep Wranglers.

The left side lower control arm bracket and weld may not be positioned correctly.

The improper weld may allow the lower control arm to separate from the axle which can increase the risk of a crash.

What to do

Chrysler will notify owners, and dealers will inspect the front axles -- replacing them as necessary -- free of charge.

The recall is expected to begin March 14, 2020.

Owners may contact Chrysler customer service at (800) 853-1403. Chrysler's number for this recall is W01.

Mercedes-Benz USA (MBUSA) is recalling 22 model year 2019 A220s and A220 4MATICs.

In certain operating conditions, the rearview camera software may cause a delay in displaying the rearview camera image.

A delayed rearview camera display can reduce the driver's view of what is behind the car, increasing the risk of a crash.

What to do

MBUSA will notify owners, and dealers will update the rearview camera software free of charge.

The recall is expected to begin March 27, 2020.

Owners may contact MBUSA customer service at (800) 367-6372.

Juratoys US of Millersburg, Pa., is recalling about 980 Sophie la Giraffe bead maze toys.

The wooden triangle shape piece fails to meet the mandatory federal standard for small parts, posing a choking hazard to young children.

No incidents or injuries are reported.

The recall includes a round wood-based bead maze toy in the shape of the Eiffel Tower with a Sophie giraffe figure and three wooden shapes: Orange triangle, red heart and green star, that sort into the wood base.

The gray Eiffel Tower stands 8 inches tall on a green circular base measuring 6 3/4 inches in diameter.

This recall involves the following batch numbers, found on the bottom of the base of the packaging above the barcode:

• 9321/J09504/022019
• 9474/J09504/042019
• 9549/J09504/052019

The bead maze toys, manufactured in China, were sold at specialty toy and gift stores nationwide from February 2019, to November 2019, for about $25.

What to do

Consumers should immediately stop using the recalled toy and check the bottom for the recalled batch numbers. If the toy matches the recalled batch numbers, consumers should destroy the triangle piece and contact Juratoys to receive a free replacement triangle piece.

Consumers may contact Juratoys US toll-free at (855) 665-9287 between 8:30 a.m. and 4:30 p.m. (ET) Monday through Friday, by email at customercare@juratoysus.com or online at www.juratoysus.com for more information.

The travel industry continues to react to the coronavirus, with cruise lines becoming the latest to take steps to screen passengers.

Both Royal Caribbean and Norwegian Cruise Lines announced over the weekend that they would not board passengers with Chinese passports. They are also blocking passengers from Hong Kong and Macao “until further notice.”

Royal Caribbean took the added step of barring passengers or crew members if they have traveled through China, Hong Kong, or Macao in the last two weeks.

Guidance for cruise lines

Other cruise lines are likely to take similar steps after the Cruise Lines International Association (CLIA) issued a statement Friday directing members to err on the side of caution.

“Given the evolving nature of the ongoing 2019-novel coronavirus outbreak -- and based upon prevailing guidance from global health authorities, including the World Health Organization (WHO) -- CLIA members have adopted the following enhanced protocols for ocean-going guests and crew who have recently traveled from or through China, including Hong Kong and Macau,” the group said. “CLIA Members are to deny boarding to all persons who have traveled from, visited or transited via airports in China, including Hong Kong and Macau, within 14 days before embarkation.”

• CLIA Members are to deny boarding to all persons who, within 14 days before embarkation, have had close contact with, or helped care for, anyone suspected or diagnosed as having coronavirus, or who is currently subject to health monitoring for possible exposure to novel coronavirus. 

• CLIA Members are to conduct preboarding screening necessary to effectuate these prevention measures. Enhanced screening and initial medical support are to be provided, as needed, to any persons exhibiting symptoms of suspected novel coronavirus.

The policies update those issued at the end of January and allow for informed decisions on a case-by-case basis whether a guest or crewmember will be permitted to board.

Stranded in port

The fast-spreading virus has also caused havoc among some cruise line operations. The New York Post reports the Royal Caribbean liner Anthem of the Seas was scheduled to depart Bayonne, N.J. over the weekend for the Caribbean but was kept in port because of a health scare.

After the ship docked Friday, four Chinese citizens were reportedly taken off the ship by paramedics after the four passengers had become ill. One tested positive for the flu.

At last report, the worldwide death toll from the coronavirus reached 904 and the World Health Organization (WHO) says it’s concerned about reports of people with no travel history in China getting the virus.

While the unknown aspects of the virus and the lack of effective treatments are cause for concern, influenza is currently a larger threat. The International Federation of Pharmaceutical Manufacturers and Associations estimates that the flu accounts for between 290,000 to 650,000 deaths each year.

Appearing on CNBC’s “Squawk Box” Monday morning, former Food and Drug Administration Commissioner Dr. Scott Gottlieb said it appears a slightly larger percentage of people with coronavirus die from the illness than die from the flu. He said it may be two weeks before we will know how pervasive the disease is in the U.S.

A labor union representing restaurant workers has published a report accusing managers at Chipotle Mexican Grill of taking shortcuts that reduce food safety.

Local 32BJ of the Service Employees International Union (SEIU) said it interviewed “scores” of company employees for its report, “The Unsavory Side of Food With Integrity.” The report accuses the restaurant chain of giving “lip service” to reforms after several outbreaks of foodborne illness linked to restaurants in 2015 caused a public relations disaster.

In 2018, Chipotle announced that it would train all its employees on food safety practices. The company’s CEO issued a statement saying Chipotle “has a zero-tolerance policy for any violations of our stringent food safety standards.”

That followed an incident a few weeks earlier in which Chipotle temporarily closed an Ohio restaurant following customer reports of illness. 

Specific allegations

In its report, the union claims that little has changed in actual policies. The report contains these specific allegations:

• One worker being pressured to work while sick, even after the worker vomited partway into his shift;

• Undercooked chicken being served to a customer because the grill cook had not been properly trained;

• Workers pressured to work so fast that, during lunch and dinner rushes, they often flipped over chopping boards used to cut raw meat and reused the boards without washing them;

• One worker who cooked food after having to clean feces off the floor or ceiling of a bathroom multiple times without hazmat suit or adequate protection equipment;

• Pressure for employees to work without stopping, with no time left to wash their hands for hours on end.

Chipotle’s response

In response to these allegations, Chipotle said that it is “committed to a culture of food safety in our restaurants where employees are supported and heard.”  

“Chipotle’s engaged and hard-working employees are what makes us great, and we encourage our employees to contact us immediately, including through an anonymous 800 number, with any concerns so we can investigate and respond quickly to make things right,” said Laurie Schalow, Chipotle’s chief reputation officer, in a statement to ConsumerAffairs.

Schalow says the company will follow up on every allegation once it has full access to the information. She also said that following food safety policies is a requirement for employees to be considered for quarterly bonuses.

The union’s report was co-authored by the National Consumer League. Its executive director, Sally Greenberg, says the findings “call into question” the effectiveness of Chipotle’s food safety reforms.

"If Chipotle executive management and the Food Safety Advisory Council are responsible for making sure that this program is implemented effectively to keep the public safe, they have been asleep at the wheel," Greenberg said.

In late January, Chipotle agreed to a $2 million settlement with the state of Massachusetts after the state accused it of violating state labor laws. The alleged violations included minors employed without work permits, allowing dozens of 16- and 17-year old employees to work later than the law allows. These minors also allegedly worked beyond the nine-hour daily limit and 48-hour weekly limit.

Regulators at the Federal Trade Commission (FTC) are warning young consumers to be on the lookout for fake check scams, which appear to be running rampant among the demographic. 

In an update posted this week, regulators stated that fake check scams led the way in terms of individual median losses last year, at nearly $2,000. Consumers in their twenties appear to be the most likely to fall for this kind of scam.

“The FTC’s Sentinel Network database shows that people reported more than 27,000 fake check scams in 2019, with reported losses topping $28 million dollars,” the agency said. “Young people are hit especially hard. Last year, people in their twenties were more than twice as likely as people 30 and older to report losing money on a fake check scam.”

How the scam works

There are several different variations of the fake check scam, but each one involves a victim being contacted by the scammer. The thief usually sends the mark a seemingly real check or deposit with instructions that they send some of the money on to a third party.

Since the money actually appears in the victim’s account, the scam might seem legitimate at first. For honest people, sending the money on might not be too much of an ask -- but there’s a hidden catch. When the consumer’s bank finds out that the check is fake, they will remove the fraudulent funds from their account, meaning that the money that was sent along was fully paid out by the victim.

In a popular variation of the scheme, victims are usually targeted for the money transfer under the guise of a job offer or some other financial opportunity. Younger people may be particularly vulnerable because they often receive these messages through their college or university emails. 

Avoiding the scam

To avoid this scam, the FTC suggests keeping the following information in mind:

• If someone sends you a check and tells you to send money -- whether by wiring money or buying gift cards -- you can bet it’s a scam.

• Even if you see the money in your account, the bank can still take it back if the check later bounces. If you don’t know the person who wrote the check, don’t send money. Period.

• If you’re selling online, never accept a check for more than your asking price.

Consumers who want to report this kind of scam -- or any other type, really -- can file a report with the FTC at its website here.

Climate change is likely to become a hot button issue over the coming months as presidential candidates outline their plans to address the issue. Based on findings from a recent study, consumers will be anxiously waiting to hear these solutions.

Researchers working with the American Psychological Association (APA) conducted a survey and found that over half of U.S. adults (56 percent) think climate change is currently the most important issue facing society. However, only 40 percent have gone the extra step of changing their habits to address it.

That lack of action could have consequences for public health. The researchers say that uncertainty over climate change has led to increased levels of anxiety and stress.

"The health, economic, political and environmental implications of climate change affect all of us. The tolls on our mental health are far reaching," said Dr. Arthur C. Evans Jr., the APA's chief executive officer. 

Where to start?

The statistics from the survey paint an interesting picture of consumers who want to do something about climate change but aren’t sure what actions they can take to make a difference. Over half of respondents (51 percent) said they wouldn’t know where to start.

The researchers found that this uncertainty has led to “eco-anxiety” in 68 percent of U.S. adults. This was particularly prominent among younger adults between the ages of 18 and 34. 

Among the changes that respondents said they were willing to make, reducing waste and recycling led the way at 89 percent. Other potential solutions included upgrading insulation in the home (81 percent), limiting utility usage (79 percent), using renewable energy sources like solar panels (78 percent), reducing overall energy use (77 percent), and limiting air travel (75 percent). 

Other community-driven efforts that could be focused on include writing elected officials to ask for action related to climate change or working with an organization with the goal of enacting change.

"As climate change is created largely by human behavior, psychologists are continuing to study ways in which we can encourage people to make behavioral changes -- both large and small -- so that collectively we can help our planet,” said Evans Jr. 

We’re nearing the first anniversary of the U.S. government’s decision to ground all 737 MAX flights, and the top dog at the Federal Aviation Administration (FAA), Steve Dickson, says his agency isn’t going to clear the aircraft for service until it sees firsthand proof that the jet is completely ready to take to the skies again.

At a news briefing in London last week, Dickson reconfirmed that regulatory alignment would’ve been the preferable way to go -- but the FAA is taking its time to make sure it gets it right.

“If you ground an airplane arbitrarily – if you’re making any kind of safety decision arbitrarily – you really don’t know when you’ve got to a point where the situation has been improved,” Dickson said.

Contradicting what Ethiopian Minister of Transport said after an Ethiopian Airlines jet crashed, Dickson claims that the two accidents (Lion Air and Ethiopian Airlines) “had different factors associated with them – two airlines, two groups of pilots – so they weren’t the same scenario.” However, he agreed that there was a “common thread” of the Maneuvering Characteristics Augmentation System (MCAS)* in both situations, “but having the data from which to make those decisions certainly focuses your effort.” 

*The Maneuvering Characteristics Augmentation System (MCAS) flight control law was designed and certified for the 737 MAX to enhance the pitch stability of the airplane so that it feels and flies like other 737s, according to Boeing, manufacturer of the 737 MAX.

Getting Boeing and the FAA on the same page

Getting to the point where the FAA completely trusts Boeing’s efforts to keep the MAX safely up in the air is not an overnight thing, but both parties are trying to work together and progress is apparently being made.

“The FAA reviewed the most recent 737 MAX-related documents submitted by Boeing for the purpose of identifying any safety implications,” Dickson recently commented. “Our experts determined that nothing in the submission pointed to any safety risks that were not already identified as part of the ongoing review of proposed modifications to the aircraft.”

Nonetheless, both companies are dealing with flight simulators and not planes full of passengers flying in the skies, so both are being extra cautious.

“The FAA maintains a rigorous process for qualifying flight simulators. Upon reviewing the records for the specific simulator mentioned in the documents, the agency determined that piece of equipment has been evaluated and qualified three times in the last six months. Any potential safety deficiencies identified in the documents have been addressed,” is Dickson’s stance.

“While the tone and content of some of the language contained in the documents is disappointing, the FAA remains focused on following a thorough process for returning the Boeing 737 MAX to passenger service. We continue to work with other international aviation safety regulators to review the proposed changes to the aircraft. Our first priority is safety, and we have set no timeframe for when the work will be completed.”

Pay up, mon frere. Three years after it was discovered that Apple was purposely slowing down older versions of its iPhones, possibly in hopes of prodding consumers toward buying a newer model, France’s overseer of consumer affairs has fined the company €25 million ($27,342,875 U.S.) as a result of its own investigation. Apple has agreed to fork over the entire amount.

The General Directorate for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) announced the fine on Friday. 

While Apple has already asked consumers for their forgiveness and promises it’ll be more informative going forward, its planned obsolescence still leaves it vulnerable to governmental investigations both at home and abroad. In Italy, Apple was fined 5 million euros ($5,468,575 U.S.) for the phone slowdown and another 5 million for neglecting to give customers necessary information about how to ensure the health of an iPhone battery or how to replace it. 

A quick refresher

In case you missed it, the basics of the blunder is that iPhone owners were not informed that the updates of the iOS operating system (10.2.1 and 11.2) they installed would, in all likelihood, slow down their iPhone thanks to a dynamic power management device that came with those updates, especially if the device’s batteries were old. Apple has apparently learned its lesson and gone one step further by extending the life of its devices’ batteries.

Adding insult to misery, iPhone users couldn’t roll their operating software back to an earlier version that didn’t have the new feature.