Current Events in March 2023

It’s been a busy week at Amazon – sort of a “spring cleaning,” if you will. On Wednesday, the company started flagging products that had fake reviews and unsatisfied customer responses to cut back on returns and products that didn’t meet its customers’ standards. 

Then, on Thursday, Amazon’s Counterfeit Crimes Unit (CCU) filed three lawsuits against a litany of companies that Amazon has branded as "bad actors." This bunch, however, was playing a different game.

Amazon said that the defendants in the lawsuits registered with Brand Registry, then created fake, disposable websites using product images scraped from the Amazon store, which they used as false evidence to make thousands of claims that selling partners were violating their copyrights.

When Amazon detected this attempted abuse, it acted quickly to protect customers and selling partners while also shutting down the accounts of the alleged violators.

The Amazon Brand Registry, according to SellerLabs, is an “official Amazon program where approved brand owners (or their registered agents) are on file with Amazon as trademarked brands. Being on file unlocks a preferred tier of Amazon services (protections and benefits) not available to unregistered brands or resellers.”

Amazon is sending a strong signal

Amazon doesn’t take kindly to violations of its policies, but this is new ground the company is plowing, trying to weed out anyone who does anything harmful to customers, brands, or its selling partners. 

For the moment, those sellers are off of Amazon’s platform and out of consumers’ lives, and the company vows that it will continue to hold any person or company accountable who tries something like this.

“We know how important it is to our selling partners to have a consistent Amazon store experience, and we will be unrelenting in our pursuit of bad actors who attempt to undermine that experience,” said Kebharu Smith, director of Amazon’s Counterfeit Crimes Unit. 

“These lawsuits should serve as a warning to anyone that uses fraud in an attempt to harm any of the millions of selling partners that work with Amazon every day.” 

More people are renting apartments because they can’t afford to buy homes with sky-high mortgage rates. But the good news is, apartments appear to be plentiful and rising rents have slowed considerably.

Apartment List’s latest National Rent Report shows the national average apartment rent in March was up 2.6% from March 2022, the smallest annual increase since April 2021. The growth in rents is now slightly less than before the pandemic.

Even though more people are renting instead of buying, new apartments continue to come on the market. With new home sales stalled, many builders have shifted to building apartment complexes.

That has actually increased the number of apartment vacancies, taking pressure off of rents. Nearly 1 million units were under construction at the end of last year, the most since the early 1970s. Industry sources say the building boom will increase available apartments by nearly 5%.

“Even as rent growth has turned positive again, we continue to see easing on the supply side of the market,” the report’s authors wrote. “Our vacancy index currently stands at 6.6%, which now puts it back in line with the average pre-pandemic rate. With a record number of multi-family apartment units currently under construction, we expect that supply constraints will continue to soften.”

Landlords may have to compete for renters

The report says 2023 could be the first time since the early stages of the pandemic that apartment owners will have to compete for renters, rather than the other way around. It’s already happening in a number of expensive housing markets.

Average annual rents are down 5.4% in Scottsdale, Ariz. The average rent is down 4.1% in Mesa, Ariz., and has fallen 4% in Los Vegas.

Those markets had a lot of room to fall since rents there had grown rapidly since 2020. On the flip side, cheaper rental markets have gotten more expensive.  

Rents have risen by at least 6% over the last year in Boston, Chicago, Cincinnati, Indianapolis and Louisville.

If you don’t like ads in your streaming content, are you in for a surprise. According to new data from NPAW, a streaming analytics company, 76% of subscription streaming video-on-demand (VOD) services plan to pump up the volume of ads in their content over the next two years.

Frankly, it’s all because every streaming service’s slice of the pie keeps getting smaller and smaller. Where there was once a Netflix, an HBO, a Starz, and a couple more, there are now more than 60 vying for eyeballs. And about the only way to make money and keep the lights on in a field that crowded is to commercialize content.

“Online video advertising is the fastest growing market,” noted Marija Masalskis, senior principal analyst, media and entertainment, at Omdia, speaking at a recent industry conference.

The silver lining

There’s actually a silver lining inside this cloud. More than half of the VODs interviewed said they’re looking to build out a hybrid model, one where there’s a budget’ish ad-supported tier plus a premium, subscription-based one, kind of like Netflix began doing earlier this year.

And industry savants say that their research shows consumers aren’t as ad-averse as one might think and, because of that, the projected growth for the free ad-supported (FAST) market is strong.

“We are projecting that this market will breach $12 billion [in revenue] globally in the next five years,” Masalskis said. “The U.S. will remain the largest territory in FAST, but it is growing in a number of regions globally as well.”

If you’re not “FAST’ing,” maybe you should reconsider

An unbelievable number of video streaming viewers in the U.S. are actually using free streaming services according to Horowitz’s latest State of Media, Entertainment & Tech: Subscriptions 2023 study. The study shows that at least once a month, 69% of video watchers are going the “FAST” option, a 27% jump from 2019. 

Some of those consumers might be trying to cut back on the $30-$60 they’re shelling out every month for all the services they subscribe to or finally figuring out that they just don’t have the time to watch all there is to offer. But the cost of those services is going to get worse before it gets better.

Disney+ and Hulu have already bumped up their monthly price, and Google’s YouTube is raising its price to $73 per month for its big fat bundle of local and network channels, cable news, live sports, and entertainment. 

ConsumerAffairs’ trusted authority on cord-cutting, Jared Newman, says that if you’re fed up with paying for all that content, you do have some free, FAST-driven options. In fact, lots of them.

Plenty of news sources

If you’re paying for cable when all you really watch little more than the local or national news, Newman says that you can get your local news content for free on NewsOn, Vuit, Stirr, Local Now, Haystack News, Tubi, the Roku Channel, or Amazon’s Fire TV News app, not to mention the local news station’s own website.

As far as national news is concerned, he recommends Pluto TV, Tubi, The Roku Channel, Xumo, Sling TV Freestream, and Redbox, which all offer round-the-clock streaming news channels including NBC and CBS. 

“If you’re into a particular show from cable, chances are it’s also available to stream without a big bundle,” Newman said. “FX, for instance, makes all its original shows available on Hulu, while Bravo shows are now available on Peacock.”

To see where your favorite shows are available to stream, he suggests searching on Reelgood or using the search feature on your streaming device. Wrapping up his advice, Newman said, “And remember, there are many ways to save on these individual streaming services, especially if you don’t subscribe to them all at once.” 

Another disaster, another scam. Seems like America can’t survive a Mayfield Ky., or a Rolling Fork Miss., without some yahoo pretending to be someone from FEMA, calling people up or going door-to-door, trying to pull off some disaster recovery scam.

Those scams run the gamut – insurance scams, price gouging, home repair fraud – any scheme that someone thinks they can use to convince a victim that they’re on their side and will do everything in their power to help them out.

“Criminals know potential victims are at their most vulnerable after a natural disaster, which is why it’s important to be on guard against insurance-related scams immediately following a loss,” said Georgia’s insurance commissioner John King. 

“Never pay upfront for services, only use trusted providers, and speak to your insurance company before signing any contracts for repairs done to your home. My office is here to assist any consumers who are having issues with a claim or are not receiving a timely response from their insurance company.”

Other signs to be on the lookout for

Safety inspector? Yeah, right… The Federal Trade Commission (FTC) says that if someone claims they’re a safety inspector, a government official, or a utility worker ordering that immediate work is required on your property, stop right there. Don’t give them money. Don’t show them your ID, either, until you ask for their identification to verify who you’re dealing with.

Don’t pay to apply for FEMA assistance. If they say you need to pay to qualify for FEMA funds, it’s a TOTAL scam because that’s not the way FEMA works. The best place to get information from FEMA is from FEMA.gov or by downloading the FEMA Mobile App to get alerts and information.

Look out for clean-up and repair scams. These types of scams run rampant because it’s a quick in, get the money, and they’re gone.

“Unlicensed contractors and scammers may appear in recovery zones with promises of quick repairs or clean-up services. Walk away if they demand cash payments up front, or refuse to give you copies of their license, insurance, and a contract in writing,” Gema de las Heras, a Consumer Education Specialist at FTC, said.

Steer clear of rental listing scams. ConsumerAffairs wrote about this very thing recently and scammers are using the ploy wherever they can because they know people need a place to live while they rebuild. The first thing you want to do is go and see if that rental property actually exists.

If it does, the FTC says you should take a few extra steps to keep your cash safe: Don’t wire or give money for a deposit or rent until you’ve met the rental agent or homeowner or you have signed a lease.  

Spread the word

If you live in one of the affected areas ravaged by a tornado or flood or know people who do, let others know what scams they might encounter. 

“Share resources from Dealing with Weather Emergencies with those in your community. You’ll find advice and infographics to help you get the word out about disaster scams,” de las Hera suggests.

It might even help to share this article on social media so others can stay informed, as well. Just click on your choice of the Twitter, Facebook, or email link below the headline at the top of this page.

With no smell or smoke, carbon monoxide poses a significant threat to consumers’ health and well-being. While CO detectors play an important role in both public and private spaces, a new report from the Consumer Product Safety Commission (CPSC) is urging consumers to be more aware of the risks of the invisible gas. 

The report looked at CO-related deaths from 2009 through 2019 and found that in 2019, there were roughly 250 related fatalities – a figure far higher than any other year in the report. Because of this upward trajectory in recent years, the CPSC hopes to spread awareness of the risks of CO. 

Know what devices pose the biggest risk

The report analyzed CO-related deaths over the course of a decade, breaking down the cause of each one. The factors include space heaters, pool heaters, ranges and ovens, grills and camp stoves. 

Ultimately, engine-driven tools proved to be the biggest risk when it came to CO-related fatalities. Over the course of the entire study, these devices were responsible for the largest number of such deaths – 118 in 2019 alone, and 50% of all such deaths on average.

Of these devices, gas-powered generators were associated with the greatest CO risk. Fatalities linked to these devices went as high as 89 in 2017, and accounted for 36% of all CO-related deaths on average.  

Heating systems, and more specifically furnaces, were the second biggest CO risk. Heating systems of all kinds accounted for nearly 30% of CO-related deaths, while furnaces were responsible for 10%. Portable heaters are another CO risk, as these devices were also linked to 10% of all related deaths. 

Following best practices

Just because these devices pose a risk regarding CO, that doesn’t mean consumers need to avoid them entirely. Instead, the CPSC hopes this report encourages consumers to take their safety more seriously when using potentially dangerous devices. 

To ensure that heating products are used for their primary purpose – keeping spaces warm – and not unintentionally poisoning consumers with CO, proper cleaning and maintenance of vents and all heating devices on a yearly basis is recommended. This goes for wood stoves, furnaces, fireplaces, chimneys and boilers. 

When it comes to portable generators, consumers should never use these devices inside the home. That goes for the basement, crawl space, attached garage, or shed. Twenty feet from the home is the recommended distance when using these devices. Additionally, a portable generator with a CO safety shut-off feature is recommended to ensure that emissions never get to dangerous levels. 

CO detector testing

Recently, a few brands of CO detectors commonly purchased on Amazon were found to be defective. Without a properly functioning carbon monoxide detector, consumers are significantly increasing their risk for CO poisoning or death. 

Consumers should regularly check that their CO detectors are working and well-maintained and always have extra batteries on hand in case of emergencies. CO detectors should be found on every floor of the home, as well as outside of every sleeping area. 

Would it help if you knew how often other shoppers return items bought on Amazon?

The company does and is introducing a new ‘’frequently returned item” tag that will flag those products and, therefore, send a signal to shoppers that maybe they should do a little more homework before buying one of those items.

Amazon has to look itself in the mirror and ask who came up with this “free returns” idea in the first place, but that ship may have sailed its last big voyage. If it can convince consumers to pay close attention to the items it thinks are likely to be returned, the company saves itself some of the hassles that come with returns like restocking and repackaging – not to mention the workforce required to handle those returns.

With the company laying off more than 18,000 employees, reducing all that’s required with handling a return should enhance Amazon’s bottom line.

Blame it on junk and hyped-up reviews

The key factor in going this direction appears to be the tons of counterfeit and downright crappy products that third-party sellers have touted using tons of fake reviews.

“Having a visible warning that such items are usually returned not only deters consumers from buying them but also could encourage retailers to be honest about their listings or at least improve on issues that lead to higher product returns in the first place,” The Verge’s Jess Weatherbed said in coverage of Amazon’s change. 

The review sham has been a headache for Amazon. Last September, a company spokesperson told ConsumerAffairs how hard it works to keep that issue to a low roar.

“It’s important for readers to know Amazon aims to prevent fake reviews from ever appearing in our store. We continuously innovate and invest to help ensure that only authentic reviews appear in our store—and take our responsibility to monitor and enforce our policies seriously, so customers can shop in our store with confidence,” the spokesperson said.

The company even went as far as suing thousands of fake review brokers on Facebook to try and send a signal that it meant business. 

This rollout could take a while, so pull up a chair

When ConsumerAffairs tried to find some examples of Amazon’s new “Frequently returned item” badge, we came up empty. One site – TheInformation – listed two products that carried that badge, but when ConsumerAffairs looked at those products, there was no badge to be found there, either.

“That may suggest Amazon is deploying a gradual rollout or a limited test. In addition, the tagged products all appear to be from third-party vendors fulfilled by Amazon,” Weatherbed said.

But when Amazib begins using the new badge, here’s what you will be looking for: The wording is “Frequently returned item: Check the product details and customer reviews to learn more about this item.”

As far as where it will be displayed, all accounts say that it will be tucked under the bullet points about the item’s particulars like functionality, size, etc.

In the meantime, smart consumers will have to pay closer attention to the reviews to try and sniff out the fakes on their own. Searching for reviews on ConsumerAffairs is a good place to start.

Earlier in tax season, the Internal Revenue Service (IRS) revealed how victims of storms across the state of California may be eligible for tax relief and filing extensions. 

Now, the agency is reporting that taxpayers in two more states – Mississippi and New York – may be eligible for similar relief programs and filing extensions. 

What taxpayers in New York should know

Following snowstorms between December 23-28, 2022, taxpayers living in Suffolk, Erie, Niagara, Genesee, or St. Lawrence counties, or those who operate businesses in those areas, are eligible for tax relief. 

The IRS is pushing back the filing deadline for taxpayers and business owners in these areas from April 18, 2023, to May 15, 2023. This goes for business returns, personal income tax returns, estimated tax payments, quarterly payroll and excise tax, and penalties on payroll and excise tax deposits. 

Under this relief plan, taxpayers will also have until the new May 15 deadline to contribute to their health savings accounts or IRAs. 

While the IRS has made it clear that extensions to file taxes don’t typically come with an extension to pay taxes, that isn’t the case for storm victims in these areas. Any taxes owed during this period will also now be owed by the May 15 deadline. 

Taxpayers won’t need to take any additional steps to get the extension. Those filing with addresses that fall within the affected areas will automatically receive relief for filing before the May 15 deadline. 

However, for those who may need even more time to file, the IRS recommends that they request an extension. Requesting extra time can be done online before April 18; those requesting an extension after April 18 and before May 15 must do so by mail. 

What Mississippi taxpayers should know

Mississippi taxpayers who experienced severe storms and tornadoes on March 24 and 25 now have until July 31, 2023, to file their 2022 taxes. The affected counties include: Monroe, Carroll, Sharkey, and Humphreys, and the extension is valid for both personal taxpayers and business owners. 

The IRS has granted Mississippi taxpayers many of the same relief options as those affected by storms in New York, except with a later deadline. This means that residents and business owners of the affected areas in Mississippi have until July 31 for filing: 

• Quarterly estimated tax payments

• Quarterly payroll and excise tax returns 

• IRA and health savings account contributions 

• Personal tax returns

• Business tax returns 

• Tax payments originally due during this period 

Similarly, these relief options will be automatically taken into consideration based on taxpayers’ addresses when filing. However, should taxpayers be incorrectly penalized for filing late, the IRS recommends they contact the agency immediately to have the penalty removed. 

Taxpayers in both New York and Mississippi can refer to the Tax Relief in Disaster Situations page to see a full list of locations eligible for these extensions. 

Fears of bank failures have gripped the stock market in recent weeks with the collapse of Silicon Valley Bank (SVB) and struggles at First Republic Bank. In the case of SVB, the bank was taken over by the Federal Deposit Insurance Corporation (FDIC).

Deposits of up to $250,000 are insured by FDIC so depositors with less than that amount in the bank will be made whole. The problem, however, is the average SVB depositor had $2 million in the bank.

So, what if your bank were to fail? Assuming you have $250,000 or less in the bank you should have little to worry about. When a bank can’t meet depositors’ demands for their money, FDIC steps in to close the bank.

One of its first obligations is to protect depositors. Under federal law, the FDIC is required to make payments of insured deposits "as soon as possible" upon the failure of an insured institution. 

Money bank within two business days

“While every bank failure is unique, there are standard policies and procedures that the FDIC follows in making deposit insurance payments,” the agency says. “It is the FDIC's goal to make deposit insurance payments within two business days of the failure of the insured institution.”

In short, if your money in a failed bank is covered by FDIC and your account is less than $250,000, you can expect full reimbursement that is paid by the U.S. government. You don’t really have to do anything to retrieve your money. The money will be transferred to another FDIC bank and you’ll be notified about your new account.

If you have more than $250,000 in a failed bank, you’ll be reimbursed $250,000 but you may or may not get the excess amount. That’s one of the issues regulators are facing with SVB.

Is there a banking crisis and is your bank in danger of failing? It depends, but some banks are in the same situation as SVB. On paper, their deposits are worth less than what they owe depositors.

What banks do with your money

Here’s the reason. When you deposit money in your bank, the cash doesn’t just go into a vault. Some of it is loaned to borrowers but excess cash is usually placed in safe investments such as Treasury bonds.

During the pandemic, when Americans received more than $1 trillion in stimulus benefits, bank deposits grew rapidly. Banks used those deposits to purchase billions of dollars worth of bonds that, at the time were paying about 0.5% or less in interest.

Fast forward to today, when similar Treasury bonds are paying closer to 4%. If the bank needs to cash in the 0.5% bonds before maturity the bonds are worth much less because of the difference in interest rates.

Your bank may hold many of these bonds that are now worth less. If they don’t have to sell them, however, it isn’t a problem. 

It became a problem for SVB when its business customers needed access to their money to pay higher operating expenses. SVB was forced to sell many bonds at a huge loss and still didn’t have enough money to meet customers’ demands for withdrawals.

These days, is $100,000 considered a lot of money? It can be, but it all depends on where you live.

A six-figure salary once signaled a fairly comfortable life. It still can, but inflation has eroded earnings power over the last two years so it doesn’t buy what it used to, especially when it comes to cars and homes.

But depending on debt levels and other expenses, it can either fund a comfortable lifestyle or keep you under financial pressure. In fact, 51% of people who earn more than $100,000 reported living paycheck to paycheck in December 2022, according to a recent survey from PYMNTS and LendingClub.

Cities with low cost of living

So where does $100,000 stretch the farthest? According to SmartAsset, a fintech firm, most of the cities where $100,000 is still a lot of money are in the South. Here are the top 10 locations:

1. Memphis

2. El Paso

3. Oklahoma City

4. Corpus Christi, Tex.

5. Lubbock, Tex.

6. Houston

7. San Antonio

8. Fort Worth

9. Arlington, Tex.

10. St. Louis

In addition to housing and food costs, state and local taxes can have a big impact on the cost of living. Eight of the 10 cities are in states that have no state income tax – Tennessee and Texas.

In Memphis, someone earning $100,000 a year takes home $74,515 after federal and local taxes. In St. Louis, a $100,000 a year salary produces take-home pay of $69,531.

While residents of Oklahoma pay a state income tax it has the lowest overall cost of living of any city in the study. The study authors estimate after-tax earnings of $70,302 are actually worth $84,498 in purchasing power.

To determine how much $100,000 is actually worth in different parts of the country, SmartAsset compared the after-tax income in 76 of the largest U.S. cities and then adjusted those figures for the cost of living in each place. 

Where you don’t feel that rich

On the other hand, people earning $100,000 a year and who live in a large city in the Northeast – or just about any city in California – don’t feel as wealthy.

In New York City, $100,000 is the equivalent of just $35,791 when you consider taxes and the cost of living. Taxes and cost of living take a big bite out of a $100,000 income in the Big Apple, which ranked last in the analysis. 

It’s not much better on the West Coast. According to SmartAsset, the annual after-tax take-home pay in Los Angeles is $68,050, but the cost of living is 52.5% higher than the national average. 

To calculate the city’s adjusted annual take-home pay, the authors say they divided the city’s average after-tax income by 1.525. In terms of purchasing power, the average take-home pay for someone living in Los Angeles is worth $44,623 after adjusting for the cost of living.

Present and former users of JUUL e-cigarettes may be eligible to receive a share of $255 million the company has agreed to pay to settle false advertising claims.

No proof of purchase is required, but in some cases, proof of purchase could result in a larger share of the settlement.

JUUL was sued by plaintiffs in a class-action lawsuit that claimed it marketed its products to minors and concealed the addictive nature of its nicotine delivery products. Though developed as a tool to help smokers give up cigarettes, JUUL and several other manufacturers were accused of targeting young people who had never smoked.

In agreeing to the settlement, JUUL did not admit to any wrongdoing but said it would make the payment to resolve the case. Consumers included in the suit will be paid a sum based on several factors, including how much they paid for the products.

To be eligible for compensation a consumer has to have purchased and used JUUL products prior to December 7, 2022. As yet, there is no estimate for payment amounts.

Who gets what

Here are some of the factors that will determine compensation:

• Where JUUL products were purchased by an underage consumer, the settlement shares will be multiplied by four.

• Purchases made between 2015 and 2018 will be assigned a multiple of two when determining compensation.

• Without proof of purchase, the maximum compensation is $300. Receipts will be required for purchases of more than $300.

JUUL users who purchased products directly from the JUUL website are not required to provide proof of purchase since there is an existing record of their purchases. 

The settlement must still be approved by the court but consumers who think they are eligible should apply using a valid claim form – found here – by July 14, 2023.

In addition to the class action, JUUL was sued by the State of Massachusetts in 2020 for its alleged role in encouraging young people to “vape.” Before he left office, former Food and Drug Administration (FDA) Commissioner Dr. Scott Gottlieb was also highly critical of the company’s marketing tactics he said were aimed at teenagers.

While there have been countless scams targeting taxpayers over the last few months, Transaction Network Services (TNS) has found that there has been no letup in tax-related robocalls. In fact, taxpayers have been subject to an increase in such calls throughout the month of March. 

The agency’s report found that just two weeks ago, Americans were on the receiving end of 1.6 million robocalls. As tax season is winding down, it’s important for consumers to know the signs of a scam call and what to do to avoid falling victim to a potentially harmful scam. 

Three major tax-related robocalls

TNS highlighted three major tax-related scam calls that consumers can expect in the final weeks of tax season: ‘ghost’ tax preparers, scammers posing as the IRS, and assistance with unpaid taxes and debt relief. 

• ‘Ghost’ Tax Preparers: This is a popular scam that involves fraudulent “tax preparers” promising to complete taxpayers’ returns for them. They ask for large sums of money upfront in exchange for their “work.” In some cases, the scammer will fill out all of the information correctly – except when it comes time to fill out the bank account information. That’s when they insert their own routing and account numbers to receive your refund. In other cases, the scammer won’t sign the final return, making the entire thing void. 

• Posing as the IRS: This may be the most popular tax-related scam. Taxpayers can expect to receive phone calls from people claiming to be the IRS, but instead, they’re scammers looking to steal personal information. These calls are usually fear-based – they scare taxpayers into thinking they need to send money to the IRS immediately – or face legal action. Those who fall victim to this scam are likely to send the money to the scammer – who they believe is the IRS – out of fear of the repercussions. It’s important for taxpayers to know that the IRS will never reach out by phone call; all communications will come via mail. 

• Unpaid Taxes and Debt Relief: In these scams, taxpayers will receive calls from agencies that claim to settle or consolidate tax debt. Though these services do exist and can be incredibly helpful to taxpayers, scammers are likely going to ask for money and other personal information over the phone. Taxpayers should be aware of any efforts that sound too good to be true – as well as any callers who ask for money or other personal information over the phone. 

Spotting scams and protecting yourself

John Haraburda, Director of Product Management for TNS' Identity and Protection Solutions, shared his best tips with ConsumerAffairs to help consumers protect themselves from these types of scams. 

There are several steps consumers can take to protect themselves from these unwanted robocall scams:

1. Educate themselves on what some of the latest scams are. The FCC has a website that highlights recent scams, and our website has a Scam of the Month page that highlights the latest scams that we see.

2. Work with their carrier to see if they have a robocall protection app and then leverage the protection afforded by the app.

3. Don’t click on links from unknown numbers that text them. 

4. Don’t call back numbers they don’t recognize; it could be a one-ring scam. One-ring scams prompt consumers to call back to a number, and when they do they then incur charges.

5. Don’t answer calls from unknown numbers; legitimate callers will leave a voicemail. TNS is also working with businesses to deploy Enterprise Branded Calling in an effort to have critical brand information appear on incoming call screens to better educate consumers on who is calling.

“Consumers should know that bad actors behind these calls are looking to take advantage of them, swindling them out of money or important personal information,” Haraburda said. “Should consumers come into contact with one, they should report it to the FCC.” 

A lawsuit filed in an Ohio state court takes aim at pharmacy benefit managers (PBM), accusing them of driving up prescription drug costs for patients. The suit, filed by Ohio Attorney General Dave Yost, accuses the industry of employing tactics designed to reduce competition and keep prices high.

In a statement, Yost didn’t mince words. Noting that PBMs are supposed to be “middlemen” between the drug companies and the pharmacies, he said the desired competition has never materialized.

“PBMs are modern gangsters,” Yost said. “They were designed to protect and negotiate on behalf of employers and consumers after Big Pharma was criticized for overpricing medications, but instead they have absolutely destroyed transparency, scheming in the shadows to control drug prices on all sides of the market.”

Three major players

The suit claims that consolidation in the industry has led to “collusion” on prices. Currently, three companies – Express Scripts, Humana, and Cigna – reportedly control more than 70% of the PBM market. So far, none of those companies have commented on Yost’s lawsuit.

Yost’s suit seeks to stop the PBMs named in the complaint from carrying out “secret and anti-competitive conduct and strong-arm tactics” preventing the marketplace from determining prices for prescription drugs. It also seeks statutory fines and “disgorgement of the ill-gotten profits.”

PBMs are key players in the healthcare system. Many employers and unions, as well as local and state governments, contract with PBMs to manage their payments for prescription drugs. Among the services a PBM provides, it processes payments to pharmacies and determines which drugs it will pay for. Critics, like Yost, have claimed a lack of transparency has worked against consumers.

Insulin costs

Yost says the high cost of insulin has been an example of how drug prices have inflated in recent years, noting more than one million people in his state are diabetic and need the drug. In recent weeks three major drug companies have announced reductions in insulin prices.

“Medications shouldn’t cost an arm and a leg, metaphorically or literally,” Yost said. “Insulin is just a symptom of the problem; PBMs are the disease.”

In the background, the U.S. Senate is considering legislation to place limits on what PBMs can do and to increase industry transparency. Last week the Senate Commerce Committee approved the PBM Transparency Act of 2023, sending the reform legislation to the full Senate. 

Even in a deeply divided Congress, chances of approval appear good since the measure enjoys rare bipartisan support.

“It’s a win-win and warrants swift approval in Congress,” said Sen. Chuck Grassley, (R-Iowa), a co-sponsor of the legislation.