Current Events in February 2020

Cannabis is becoming more popular with consumers due to more states legalizing it and major corporations infusing it into well-known products. However, researchers from the University of Waterloo in Canada have found that many people are still uninformed when it comes to edibles.

In a recent study, the researchers found that the majority of consumers can’t identify what constitutes high or low levels of THC when reading the packaging of cannabis edibles. 

“Using THC numbers to express potency of cannabis products has little or no meaning to most young Canadians,” said researcher David Hammond. “We’ve known for many years that people struggle to understand the numbers on the back of food packages and cigarette packages. Consumers seem to have equal or even more difficulty with THC numbers, which are used to indicate the potency of cannabis products.” 

Understanding potency

The goal of the study was for the researchers to gauge consumers’ understanding of cannabis edibles. To achieve that, they put a group of nearly 900 participants to the test. All of the participants were between the ages of 16 and 30, and the researchers wanted to test two primary figures: if the participants could identify how strong the product was and how many servings were in a particular package. 

When the packaging included THC levels as a percentage, most of the participants couldn’t determine the potency of the product. When it came to serving size, including the number of doses included in the package was important. 

When the dosage was indicated, 77 percent of the participants could identify the proper serving size, compared to just six percent of participants who did the same when the labeling was more ambiguous. When percentages were omitted but packages included descriptive words or symbols -- such as using a traffic light system that signified strength by color -- over 65 percent of the participants correctly determined the potency of the product.  

Rethinking labels

The researchers explained that Canadian law requires that all cannabis edibles are specifically labeled with the ingredients and the THC percentage, which typically indicates how strong the product is. However, this study proves that companies may want to rethink how they’re labeling their products, as using a more consumer-friendly approach could clear up any confusion about the strength of cannabis edibles. 

“Effective THC labeling and packaging could help reduce accidental over-consumption of cannabis edibles and adverse events, which have increased in jurisdictions that have legalized recreational cannabis,” said Hammond. 

It was easier than expected to get hired last month. The Labor Department reports that the economy added 225,000 jobs in January, significantly more than expected.

Some of the biggest gains came in construction, health care, and transportation and warehousing. The unemployment rate ticked up to 3.6 percent because more people were looking for work.

Construction jobs increased by 17,000 after averaging 12,000 a month throughout 2019. Jobs in health care rose by 36,000, and transportation and warehousing jobs increased by 28,000.

The ADP National Employment Report, issued two days ahead of the government’s non-farm payrolls, showed where the new jobs are being created. Medium-size businesses with 50 to 499 employees created the most jobs in January -- 128,000. Small businesses, which traditionally have been the employment driver in the economy, produced only 94,000 jobs last month.

Gad Levanon, vice president of Labor Markets at The Conference Board, says the robust January jobs report is, in general, good news for people looking for a job.

“Amid stagnant growth in the working-age population, strong employment growth will likely further tighten the labor market in 2020,” Levanon said. “As a result, we can expect increasing challenges around recruitment and retention, higher labor cost growth, and a further squeeze on corporate profits.”

The advantage goes to employees and job seekers

A tight labor market might not be so good for employers, but it gives employees and job seekers additional leverage. The increase in jobs is drawing more people to the workforce, especially women. Levanon says the labor force participation rate for women aged 25-54 reached 77 percent in January. 

“That marks a near-record, just shy of the record rate in April 2000,” he said. “The improvement in labor force participation will partly offset the impact of strong job growth, slow further tightening in the labor market, and help fuel continued employment and economic growth.”

People with jobs earned more last month as well. Average hourly earnings for all employees on private nonfarm payrolls rose by seven cents to $28.44. On an annual basis, that’s a 3.1 percent increase in pay, slightly higher than the increase in December.

The record-long economic recovery has been marked by a strong demand for labor. The U.S. economy has added jobs for 112 straight months, the longest streak of job gains on record.

Salud Natural Entrepreneur of Waukegan, Ill., is recalling Nopalina Flax Seed Fiber (powder) and Nopalina Flax Seed Fiber (capsule).

The products may be contaminated with Salmonella.

There are no reports of illnesses to date.

The following lot numbers, which can be found on the bottom back of the product label, are being recalled:

Nopalina Flax Seed Fiber (powder, 1 lb. bags) UPC 890523000720

• Lot # 62.19 / 9 # 52.1 Best if used by 10/7/21
• Lot # 62.19 / 2 # 52.1 Best if used by 10/7/21

Nopalina Flax Seed Fiber (powder, 1 lb. bags) UPC 890523000720

• Lot # 64.19 / 3 # 52.1 Best if used by 10/21/21

Nopalina Flax Seed Fiber (powder, 1 lb. bags) UPC 890523000720

• Lot # 65.19 / 1 # 52.1 Best if used by 10/24/21
• Lot # 65.19 / 2 # 52.1 Best if used by 10/24/21

Nopalina Flax Seed Fiber (powder, 2 lb. bags) UPC:890523000843

• Lot # 64.19 / 2 # 52.1 Best if used by 10/21/21
• Lot # 64.19 / 2 * 2Lb # 52.1 Best if used by 10/21/21

Nopalina Flax Seed Fiber (capsules, 120 count) UPC 890523000867

• Lot # 23.19 1C120 # 07 Best if used by 10/7/21
• Lot # 23.192C120 # 02 Best if used by 10/7/21
• Lot # 23.19 / 2C120 # 02 Best if used by 10/7/21
• Lot # 23.19.2C120 # 02 Best if used by 10/7/21
• Lot # 23.19.3C120 # 02 Best if used by 10/7/21

The recalled products were sold at retail stores throughout the U.S. and Puerto Rico and on the firm's website

What to do

Consumers who purchased the recalled products should not consume them, but return them to the place of purchase for a full refund.

Consumers with questions may contact the company at (877) 296-6845Monday through Friday, 9am – 5pm) or online at https://www.nopalinaonline.com/certificate/.

Toyota is recalling about 44,00 model year 2020 Avalon Hybrids, Camrys, Camry Hybrids; model year 2019-2020 RAV4s, RAV4 Hybrids and model year 2020 Lexus ES 300h vehicles.

Some of the vehicles may be equipped with an engine block that was manufactured incorrectly, which may cause coolant to leak internally and/or externally during normal engine operation.

This can lead to engine noise, engine smoke, warning lights/malfunction indicator illumination, an audible chime sounding, and/or, in some cases, engine overheating and possible internal mechanical engine damage.

In a conventional gasoline vehicle, the vehicle could stall while being driven at higher speeds without prior warning, increasing the risk of a crash.

For both hybrid and conventional gasoline vehicles, the mechanical engine damage could cause engine oil to leak which, in the presence of an ignition source, can lead to an increased risk of fire.

What to do

Toyota and Lexus will notify owners, and dealers will inspect the engine block casting serial number to determine if it is involved. In the cases where an involved engine block is identified, dealers will replace the engine including the engine block with a new one free of charge.

The recall is expected to begin by early April.

Owners may contact Toyota customer service at (800) 331-4331 or Lexus customer service at (800) 255-3987.

The rising cost of health care affects consumers of all ages, and the ambiguous -- and often lofty -- price tags associated with certain procedures or treatments can prevent patients from receiving the proper care that they need. 

Now, experts from West Health Institute, a group of nonprofits that works to reduce health care costs for older people, are exploring the rise in health care costs and trying to put initiatives in place that would lessen the financial burden of medical care for seniors. 

“Skyrocketing health care costs represent a significant and growing public health crisis that requires more action and less debate,” said Shelley Lyford, president and CEO of West Health. “We can all agree that Americans are hurting, in some cases dying or going bankrupt, because of a broken system that costs too much and delivers too little. We can no longer delay or defer common sense reforms and better and more cost-effective models of care when the health and financial security of millions hang in the balance.” 

Creating better policies and practices

While there are countless factors at play that influence the cost of seniors’ health care, some of the top findings included at-home care, prescription drugs, and what stance employers take to maintain reasonable health care costs. 

Similarly, when trying to remedy these concerns, experts brainstormed several viable options for policymakers to implement, all of which would help keep health care costs down while providing seniors with the highest level of care. 

One article suggested creating geriatric emergency departments, which would ensure that older people are getting care tailored specifically to their needs. It would also reduce the number of emergency room visits, as trips to the ER can have a rather high price tag. 

The experts also wanted a more active role from employers, who often make the big decisions when it comes to health care coverage. If employers were more vocal about switching to value-based payment options, which put the financial burden on medical providers rather than on patients, it would save seniors a lot of money. 

Lowering costs

Lowering the cost of prescriptions would also help considerably, and West Health recommended that Medicare should work directly with drug companies to get the lowest prices for consumers. Though this would require legislative intervention, the end goal would greatly benefit the older demographic. 

“As the U.S. population ages, it is increasingly vital to support common sense steps that can reverse the runaway health care costs,” said Robert Blancato. “Unless we advocates take bold actions now to lower health care costs, our nation’s older adults cannot hope to successfully age in place in the communities they cherish.” 

West Health, in partnership with the American Society on Aging, shared their full review on this subject, and even more suggestions, in a special issue of the Journal of the American Society of Aging. That review can be found here. 

Many airline carriers faced an up-and-down year in 2019. Boeing’s 737 MAX debacle caused logistical problems, and the recent coronavirus outbreak that began in December has forced many companies to alter their schedules.

But despite those pitfalls, airline employees working for Southwest will happily receive a well-earned profit-sharing bonus. The company announced on Thursday that it would be doling out $667 million to 60,000 employees who are eligible under the program. 

“Our Employees delivered outstanding results despite a challenging year, and it’s a pleasure to reward our People for all they contribute to our continued success,” said Southwest CEO Gary Kelly. “We recognize their resolve, persistence, resilience, and devotion to each other, our Customers, and our cause.”

In total, the bonus payments will reportedly equate to about 6 weeks of extra pay for employees who receive them. 

More headwinds in 2020

Despite the good news for employees, Southwest as a company is facing some more headwinds as we progress through 2020. 

A Department of Transportation report leaked at the end of January and expected to go public this month will allegedly hold the company accountable for unsafe practices. The Wall Street Journal claims that the report will also admonish the Federal Aviation Administration (FAA) for not holding Southwest accountable.

In one instance, a Southwest jet’s wing tips were reportedly smashed when trying to make a landing in gale force winds. 

For the consumers pulling out another swath of their hair every time they receive a robocall, Google may have come to the rescue.

While the world waits for the Federal Communications Commission (FCC) to make TRACED -- the Telephone Robocall Abuse Criminal Enforcement and Deterrence Act -- a reality, all consumers have at their disposal are anti-robocall apps and some self-control in not answering each and every call that comes their way. 

But Google’s new “Screen Call” feature may represent a well thought out antidote, at least for the time being.

Does this work?

With scammers ceaselessly adding new gotchas to hook a consumer, no fix is guaranteed to last forever.

When ConsumerAffairs put the feature into action, it did everything it advertises -- from automatically detecting spam calls, to telling the caller that their call is being screened, and giving the consumer the opportunity to listen live to the caller’s reason for calling. If the consumer wants to talk to them, all they have to do is press a button to start a conversation. If that sounds like how the world used to screen calls back in the answering machine days, bingo -- it’s exactly the same.

Built into Google’s modern day call screener are two additional options: 1) if you want to decline all first-time callers, private, or hidden numbers automatically, you can; 2) if you want to automatically screen and decline ALL private, first-timers, or hidden numbers, you can do that, too.

Will it work on your phone?

Call Screen comes part and parcel with Google Pixel phones, but ConsumerAffairs found that the feature worked on a Moto G7. Reports indicate that it works on other Android phones as well. Those include:

• OnePlus 7T

• ASUS ROG Phone II

• Huawei Mate 30 Pro

• Xiaomi Redmi 8A

• Realme X2

• Google Pixel 4 XL

And an iPhone? Apple does have its own way of blocking callers with a similar feature called “Silence Unknown Callers, but it’s arguably not quite as intuitive as Google’s feature… yet. In a touch of snark tweeted out by media critic Joanna Schroeder, “I really don't know how you iPhone users survive without the Pixel's AI that answers spam calls for you and talks to them.”

As it suffers shocks to its economy from the spreading coronavirus, China has announced it is cutting tariffs on $75 billion in U.S. imports, reducing the duty by 50 percent.

The move is a reciprocal act that follows the Trump administration’s announced plan to cut tariffs on about $112 billion in Chinese imports. Those tariffs are also being cut in half. It signals a lessening of trade tensions that have roiled financial markets for the last 18 months. Both tariff reductions will take effect next week.

Chinese media outlets quoted an official from the country’s Ministry of Finance as saying the tariff reductions are being made to “ease economic and trade tensions and expand cooperation.”

"It is our hope that both sides will work together toward ultimately removing all additional tariffs," the unidentified official said.

Only a slight impact

Despite concerns expressed at the outset of the trade war, the tariffs have not posed an undue burden on consumers. Importers and retailers have absorbed some of the additional costs and inflation has barely budged, if at all. Consumer spending remained strong throughout the holiday shopping season.

Chinese tariffs on U.S. agricultural products have had a serious impact on U.S. farmers, but a side effect from that has been lower consumer prices for some food products, such as pork. The Phase One trade agreement signed last month in Washington calls for China to increase spending on U.S. agricultural products, which may provide some relief for U.S. producers in the months ahead.

The easing of trade tensions comes as the Commerce Department reported this week that the U.S. trade deficit fell for the first time in six years. The government says the difference between imports and exports fell 1.7 percent in 2019 to $616.8 billion.

During the reporting period, which coincides with the trade war with China, the U.S. exported less but also imported less. The trade deficit in finished goods like cars and appliances was offset by a trade surplus in services like tourism and banking.

A plunge in oil prices due to the fast-spreading coronavirus in China is giving motorists a break at the gas pump. Oil prices stabilized this week, but the effects of cheap crude are being felt nationwide.

The AAA Fuel Gauge Survey shows the national average price of regular gas is $2.45 a gallon. That’s only three cents lower than a week ago but 13 cents lower than a month ago, as gas prices have drifted lower since the start of 2020. The average price of premium gas is $3.06, down from $3.09 last Friday. The average price of diesel fuel is $2.92 a gallon, also three cents less than a week ago.

GasBuddy counts nearly 8,000 stations under $2 a gallon, according to Patrick DeHaan, head of petroleum analysis at GasBuddy. He reports on Twitter that the average gas price continues to fall in most states while gyrating in “price cycling” states like Indiana, Ohio, and Florida. Price cycling refers to a strategy by gas stations in which they slowly lower their prices to gain market share and then raise them again when prices are so low that they’re losing money.

States in the Southeast and Midwest saw the biggest price declines this week. The statewide average fell six cents a gallon in South Carolina, Louisiana, and Mississippi. It fell nine cents in Ohio and seven cents in Illinois.

Gas prices should continue to fall over the next few weeks. The Energy Information Administration (EIA) reported Thursday that U.S. gasoline stockpiles continue to grow while wintertime demand for fuel continues to decline.

The states with the most expensive regular gas

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

• Hawaii ($3.63)

• California ($3.51)

• Washington ($3.09)

• Nevada ($2.95)

• Oregon ($2.98) 

• Alaska ($2.95)

• Arizona ($2.80)

• Pennsylvania ($2.65)

• New York ($2.64)

• Vermont ($2.61) 

The states with the cheapest regular gas

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

• Missouri ($2.09)

• Texas ($2.11)

• Mississippi ($2.13)

• Louisiana ($2.14)

• South Carolina ($2.14)

• Oklahoma ($2.16)

• Arkansas ($2.18)

• Kansas ($2.18)

• Alabama ($2.18)

• Tennessee ($2.21)

Texas Attorney General Ken Paxton says the states investigating Google for possible antitrust violations could seek any number of remedies, including breaking up the company.

Paxton is leading a 50-state investigation into Google and other tech giants to determine if they have used their size and clout to illegally take market share or engage in other anti-competitive activities. At the Justice Department in Washington for a meeting this week, Paxton told reporters that “nothing is off the table” when it comes to possible remedies.

“Most people are just not aware of Google’s dominance,” Paxton told Reuters. “Everyone thinks that the internet’s free.The pricing reflects the fact that there’s only one player.”

Bipartisan issue

The attorneys general launched their investigation in September after Paxton, along with others, charged Google of dominating both advertising and search on the internet. While there are other search engines -- Yahoo and Microsoft’s Bing among them -- most people seem to use Google. In fact, “to Google” something has become synonymous with an internet search.

“When there is no longer a free market or competition, this increases prices, even when something is marketed as free, and harms consumers,” Florida Attorney General Ashley Moody said when the investigation launched.

Both Moody and Paxton are Republicans, taking part in what is often seen as a Democratic issue. But when it comes to Big Tech, party lines have blurred. President Trump has been as vocal in his criticism as Sen Bernie Sanders (I-Vt.).

Google responds

Paxton said Google has a role to play in determining the outcome of the probe and said the company can shorten it by cooperating and telling its story. Google shot back that it has been cooperating.

“We have been working constructively with the Texas attorney general and have produced a substantial volume of information in response to his inquiry even as we seek assurances that our confidential business information won’t be shared with competitors or vocal complainants,” Google said in a statement to the media.

What hasn’t been said is what a broken-up Google would look like. It’s an important question for consumers who rely on Google as a go-to source for information. Would it be more than one search engine or would search simply be separated from advertising?

The Justice Department is also reportedly investigating large digital firms with a goal of wrapping up the probe by the end of 2020. Meanwhile, Google is not the only tech firm in the government’s crosshairs -- Facebook, Amazon, and Apple are also reportedly under scrutiny.