Current Events in May 2023

Almost a year ago, a TikTok video showing how easy it is to steal some Kia and Hyundai models went viral, leading to a wave of car thefts. It wasn’t long before owners of these particular models were finding it more difficult to obtain car insurance.

In January, CNN reported that both State Farm and Progressive were shying away from issuing policies. Now apparently, other insurance carriers have taken that position.

NPR reports a Colorado woman purchased a used Kia Forte but was unable to find any insurance company that would cover it. According to the report, the woman used an insurance broker to help her but was turned down a dozen times.

A Kia model belonging to Trice, of Warren, Mich., is one of the hundreds that have been stolen. The car is still insured but it costs a lot more.

“Car insurance shot up after paying the same amount for three years,” Trice wrote in a ConsumerAffairs review. “Nobody else will insure this car for under $300 a month as a new customer.”

Why they are so easy to steal

According to the Insurance Institute for Highway Safety (IIHS), many 2015-19 Hyundai and Kia vehicles lack electronic immobilizers that prevent thieves from simply breaking in and bypassing the ignition. The feature is standard equipment on nearly all vehicles of that vintage made by other manufacturers. 

Both Kia and Hyundai have the problem because they are made by the same company. The brands have developed a fix but it may take time to apply it to all the affected vehicles.

Hugh Allen, principal product strategist at Hi Marley, a communication platform for the insurance industry, says carriers are simply reacting to the numbers as they analyze risk.

"While it may not seem fair to consumers, carriers rely on hard facts and historical trending data to change their rules, he told us. “The fix marketed by Hyundai and Kia must be proven. I’m not sure that a necessary amount of time has transpired for data to be collected and change the risk results.”

Karl Brauer, executive analyst at iSeeCars.com, believes the insurance industry is being shortsighted and is unnecessarily punishing consumers. He offers the following analysis:

You happen to live in an area where there are 100 registered Hyundais or Kias. In an average year, one gets stolen. But after the TikTok video, maybe seven of the models were stolen in the following 12 months.

“The insurance company looks at that and sees a 700% increase,” Brauer told ConsumerAffairs. “But another way to look at that is 93 Kias weren’t stolen. There’s a lot going on with these cars being stolen, compared to what was going on before. But it’s not that most of them are being stolen, or even half. It’s a tiny percentage.”

Official pressure

Meanwhile, pressure is growing for the automaker to do something to resolve the issue. In March, 23 state attorneys general called on Hyundai-Kia to take “swift and comprehensive action to help remedy the crisis of car thefts that has occurred due to the companies’ failure to equip vehicles with anti-theft immobilizers.” 

In a letter to the automaker, the state officials pointed out that Kia and Hyundai chose not to include anti-theft immobilizers as standard equipment on several vehicle models sold in the U.S. during a period when every other car manufacturer was doing so.

“Kia and Hyundai failed to equip their vehicles with industry-standard anti-theft technology, and customers are now paying a steep price,” said Connecticut Attorney General William Tong. “These cars are now disproportionately targeted by thieves at rates so high some insurers are refusing to cover them. Kia and Hyundai need to make this right—quickly, and without nickel and diming their customers.”

There are a good number of class action settlements that are winding down and the window for consumers to file for their share of the settlement is closing with it -- as early as in the next week or two.

ConsumerAffairs found these settlements that end soon, courtesy of ClassAction.org. Click on the name of the company to get to the settlement website.

Other class action lawsuits in the beginning stages

There are a number of what could be profitable settlements waiting for consumers if some of the class action lawsuits that are being filed come to fruition. Make note of these and keep an eye out for how you can apply for your portion of the settlement.

Twitter: ClassAction.org says that attorneys are investigating whether a class action lawsuit can be filed in light of allegations that Twitter said it was collecting information from users for account security purposes but secretly used the data to target them with ads.

Diet Pepsi: If you’re a Diet Pepsi drinker, heads up. ClassAction says that attorneys are investigating whether Diet Pepsi contains toxic chemicals known as PFAS and, if so, whether a class action lawsuit could be filed over the issue.

Roundup: Several lawsuits have been filed claiming that the herbicide Roundup a) can cause cancer, and b) that the manufacturer was lax in warning people about the risk. 

Ford Motor: ClassAction also reported that drivers have reported problems with their vehicle’s transmissions when starting, accelerating, and shifting. Attorneys are now investigating whether a class action is possible.

Rakuten, the online platform that provides online shoppers with cash back and discounts, is hosting its biggest sale of the year from May 8-15, Big Give Week. 

Cash back at select retailers will be as high as 15%, and the week will be full of the highest cash back offers and discounts. 

“While we are approaching the highly anticipated summer season, inflation and a potential recession are still in the back of consumers’ minds so shoppers are preparing with an eye for savings,” said Kristen Gall, Rakuten's president. “That’s where Give Big Week comes in. It’s a chance to reward loyal Rakuten members with the greatest savings and rewards that we offer each year so they can get everything they need to prepare for the best summer ever.”

Where are the discounts?

Some of the stores and brands that are involved in Big Give Week include: 

• PetSmart

• Crocs

• Tripadvisor

• Away

• UNIQLO

• GameStop

• Traeger Grills

• Shutterfly

• Dermstore

• The Container Store

• MATCHES

• Banana Republic

• Wine.com

• The Bouqs Company

• Birdies

• Clinique

• Finish Line

A higher referral bonus

For Big Give Week, Rakuten will also offer members its highest premium on referrals. Typically, Rakuten members receive $30 when they refer a friend or family member to the site.

However, for this week, Rakuten has upped the referral bonus to $40. When a new member is referred, they need to spend $40 by May 15, and they – and whoever referred them – will receive $40 from Rakuten. 

Another bonus of the sale week is exclusive access to Live Nation’s Concert Week on May 9. In addition to $25 off their ticket purchase, Rakuten members will get to purchase tickets to over 3,800 shows 24 hours before they go on sale to the public. 

Consumers can join Rakuten for free and start earning cash back and exclusive discounts at any of the 3,500 participating stores. 

Widespread layoffs in recent months have sent millions of Americans to the unemployment office but fortunately, there were a lot of companies across several industries that did a lot of hiring last month.

The Bureau of Labor Statistics reports the economy created 253,000 jobs in April, pushing the unemployment rate down to 3.4%. Hiring was widespread across a number of different industries.

For example, companies in the professional and business services sector hired 43,000 new employees last month. Professional, scientific, and technical services added 45,000 positions.

Employment in health care increased by 40,000 in April, a healthy increase but slightly lower than the monthly average over the previous six months. Doctors' offices, hospitals, and residential nursing centers all added employees.

Bars and restaurants continued to hire workers. Employment in leisure and hospitality continued to trend up in April, adding 25,000 jobs. However, the industry still has fewer employees than it did before the pandemic.

Social assistance agencies hired 25,000 employees while agencies providing individual and family services added 21,000 to their staffs.

Even financial services firms were hiring

In spite of turmoil within the banking industry, employment in financial activities increased by 23,000 in April, with gains in insurance carriers and related activities. In spite of a slowing housing market, real estate added 9,000 jobs last month.

At the same time, employees took home bigger paychecks. In April, average hourly earnings for all employees on private nonfarm payrolls rose to $33.36.

If all of this sounds like good news, it is – for people looking for jobs and those who already have one. It’s not so good for the Federal Reserve, which has been hiking interest rates in an effort to reduce inflation.

In fact, the Fed is trying to increase the rate of unemployment – even if it means pushing the economy into a recession – to reduce consumer spending and bring down prices.

The Federal Trade Commission (FTC) and Facebook are squaring off… again. The agency claims that Facebook failed to fully comply with its 2020 privacy order.

That order accused the social media giant of misleading parents about their ability to control who their children communicated with through Facebook’s Messenger Kids app. The agency said the company also misrepresented the access it allowed app developers to private user data.

Because of those indiscretions, the FTC wants the original order rewritten to take away any wiggle room Facebook has been using to its advantage.

Facebook -- now known as Meta -- has now been on the FTC's wrong side three times for allegedly failing to protect users’ privacy. The Commission first filed a complaint against Facebook in 2011 and secured an order in 2012 barring the company from misrepresenting its privacy practices. 

“Facebook has repeatedly violated its privacy promises,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “The company’s recklessness has put young users at risk, and Facebook needs to answer for its failures.”

What the FTC wants

If the FTC gets sign-off on the proposed changes, Facebook – and Meta’s other services such as Instagram, WhatsApp, and Oculus – would be prohibited from making any money off the back of the data it collects. This would include its virtual reality products and any user under age 18.

In addition, the social media company would have to walk the straight and narrow on its use of facial recognition technology. It would also be required to provide additional user protections. Those include:

• Blanket prohibition against monetizing the data of children under 18. Plus any data it collects on someone under 18 cannot be used for commercial gain even after those users turn 18.

• Pause the launch of new products and services until those products and privacyprotections are fully vetted by an assessor. 

• Limits on future uses of facial recognition technology

In the meantime, what parents can do

Readers of the Mozilla Foundation’s “Privacy: Not Included” series have slapped both Facebook Messenger and Messenger for Kids with a “Super Creepy” label.

“With Facebook-owned apps, we always worry there is a good deal that could go wrong,” the Mozilla Foundation wrote in its review of Messenger for Kids. 

“There are no ads served to kids in Facebook Messenger and Facebook claims they don’t use data from the Messenger Kids app for ads in their other apps. It does still collect children’s data though, so be wary. If you do decide to use Facebook Messenger, it’s probably best to assume nothing you say or do is actually private.”

Yaron Litwin, chief marketing officer at Canopy, a platform designed to keep kids safe online and give parents some peace of mind, told ConsumerAffairs that parents should talk with their children and provide examples of online communication and behavior that could be a concern. 

“In addition, having clear family rules in place regarding online responsibility and the sharing of personal photos is crucial,” he suggested.

Like many retailers, Walmart is putting more emphasis on health services and a weekend Wellness Day promotion at over 4,600 pharmacies is a good example, offering customers immunizations and free health screenings. 

“It’s not only the free screenings and the affordable immunizations that make a difference, but also the opportunity for connections between our pharmacists and the communities we serve, said Kevin Host, senior vice president of pharmacy at Walmart.

Available health resources

Here’s what consumers can expect at their area Walmart pharmacies on Wellness Day:

• Free COVID-19 vaccines

• Wellness resources

• Free screenings for: body mass index, glucose, blood pressure, cholesterol, and vision (at select locations)

• The following vaccines: whooping cough (TDAP), measles, mumps, Hepatitis A & B, chicken pox/shingles, tetanus, flu, pneumonia, HPV, rubella (MMR), and more 

• Time to talk with pharmacists

In addition, consumers can expect their specific Walmart store to handle Wellness Day with different in-store giveaways and freebies. Some stores will have samples of vitamins, nutrition items, or supplements, while others will demonstrate the benefits and uses of different wellness products. 

There are several goals for Wellness Day. For starters, it's an opportunity for consumers to learn more about their own personal health, better manage and track their health, and access resources that are available to them. 

Additionally, Walmart hopes to increase awareness and access to health and wellness services and products. By offering vaccinations and screenings for free and reduced prices, more consumers will have access to important health resources. 

People often use Facebook to keep up with people they know. So if they get a message through Facebook Messenger that says “Look who died, in an accident,” they are likely to click on the accompanying link.

Security experts say that’s when the trouble begins because no one died in an accident, it’s just a new phishing scam.

Experts at Data Prot say victims may think they are clicking on the link to a news story but they instead download malware onto their device and have their login information stolen.

One of the apparent objectives is to get inside the victim’s Facebook account because it may hold valuable information. There are often photos, conversations, and shopping data that can be sold on the dark web.

‘Large-scale scam’

“This is a large-scale scam that, unlike targeted attacks such as spear phishing, aims to affect as many people as possible,” Data Prot reported on its website. “It works by sending a malicious link to the victim with the message ‘Look who died.’ The message is typically sent from another friend’s profile that was previously infected with this virus. 

Because the message appears to come from someone you know, your first instinct might be to believe it. The "accident victim" might be a celebrity or someone you know. 

For that reason, links in any Facebook message should be approached carefully. If you have the email address or phone number of the “friend” whose name is on the message, contact them directly and not through the Facebook app.

By clicking on the link, victims are working for the scammers by recruiting more victims. The malware they download steals their username and password. Later, it spreads the link in messages to the victim’s other Facebook friends.

Over the past couple of years, location-tracking devices have found a home with people who want to keep tabs on where their keys are, their purse, their luggage, literally their everything.

Sometimes, those devices depend on crowdsourced finding networks and can wind up being misused for unwanted tracking of individuals, as Apple found out the hard way when people were using the company’s AirTags to stalk people.

Apple and Google aren’t typically two companies you’d see in bed with each other, but when they sense that there’s a planet full of consumers who are being tracked against their will, they’re coming together to do what they can to stop it.

The two companies have jointly submitted a first-of-its-kind proposal to help combat the misuse of Bluetooth location-tracking devices for unwanted tracking. The specification will allow Bluetooth location-tracking devices to be compatible with unauthorized tracking detection and alerts across iOS and Android platforms.

Others who have tracking devices – Samsung, Tile, Chipolo, eufy Security, and Pebblebee – have expressed their support, too. Together, the entire group can put together best practices and instructions for manufacturers, should they choose to build these capabilities into their products.

Covering every aspect possible

It’s evident that a lot of thought has gone into this idea. According to the specs, "Unwanted tracking detection can both detect and alert individuals that a location tracker separated from the owner's device is traveling with them, as well as provide means to find and disable the tracker."

It will also have technology that can identify the owner of a tracking device -- for example, an email address or a phone number -- as well as the serial number of the tracking device.

Another neat feature is that trackers will shift from a "near-owner" mode to a "separated" mode should the device no longer be near an owner's paired device for more than 30 minutes.

Now that the proposal has been submitted, interested parties are invited and encouraged to review and comment over the next three months. Following the comment period, Google and Apple will re-huddle to address the feedback the initiative received, then set about to implement what it learned about how unwanted tracking alerts will fit into future versions of Android and iOS. Their goal is to have that done by the end of this year.

Safety groups weigh-in

When Apple and Google initially pow-wowed this initiative, they decided that while getting feedback from manufacturers was vital, input from various safety and advocacy groups was equally important and also needed to be integrated into the development of the specification.

“Today’s release of a draft specification is a welcome step to confront harmful misuses of Bluetooth location trackers,” said Alexandra Reeve Givens, the Center for Democracy & Technology’s (CDT) president and CEO. 

“CDT continues to focus on ways to make these devices more detectable and reduce the likelihood that they will be used to track people. We commend Apple and Google for their partnership and dedication to developing a uniform solution to improve detectability. We look forward to the specification moving through the standardization process and to further engagement on ways to reduce the risk of Bluetooth location trackers being misused.”

A combination smoke and carbon monoxide (CO) detector in the home can alert you to the presence of hazardous smoke and gas -- if it works.

If it doesn't, the consequences can be fatal.

On the heels of a recent warning about the failure of such devices to operate properly, the U.S. Consumer Product Safety Commission (CPSC) is adding another three brands to its “do not use” list.

The agency says Petricor, Varwaneo and Wjztek detectors can fail to alert consumers to the presence of hazardous smoke.

CPSC performed sensitivity tests on the three brands and found that they failed to alert when exposed to pre-determined concentrations of smoke in violation of UL 217, a voluntary safety standard.

Death from fumes, not flames

Most deaths in residential fires are due to smoke inhalation, rather than heat and flames. There may be as little as one or two minutes to escape after the smoke alarm sounds before the conditions in the home become incapacitating or deadly.

According to CPSC, more than 2,390 people in the U.S. die every year from residential structure fires. In fact, people in homes without a working smoke alarm are twice as likely to die as those whose homes are equipped with detectors.

Here's what NOT to buy

The combination detectors in question are made of white plastic, with approximate dimensions of 4 x 1.5 x 4 inches.

The Petricor and Varwaneo models feature a digital display, and the Petricor and Wjztek models have a label on the back containing the model number.

The combination detectors are advertised to detect dangerous levels of smoke or carbon monoxide and alert with a flashing red LED and a loud alarm pattern.

Model No. MQ-808 was sold under the Amazon ASIN B09DPPFJZJ; and Model No. ACJ-512COM was sold under the Amazon ASIN B0928QZ21C; and Model No. KT-X3 was sold under the Amazon ASIN B07QVC2722 and B07M8LR9M7.

The combination devices were sold on Amazon.com for between $15 and $53.

What to do

The combination smoke and CO detectors, which should be battery operated or have battery backup, should be installed on each level of the home and outside separate sleeping areas. They should be tested frequently with batteries replaced as needed.

Consumers should stop using the combination smoke and CO detectors, dispose of them immediately and install new, working CO detectors.