Current Events in September 2023

It’s natural for a credit card company to know where you shop, how much you spend, and on what days. But, then, if it turns around and sells that information to any company that wants to buy it, some might say that may be going a little too far. 

According to an investigation from US PIRG, Mastercard has increasingly monetized an “immense” amount of transaction data that it has access to over the past several years – enabling companies to improve marketing that can predict your buying behavior prospect for new high-spending customers. 

“It’s like if you hired a babysitter and while watching your kids, they took photos of everything in your house to sell online later,” said R.J. Cross, director of PIRG’s Don’t Sell My Data campaign. 

And, Cross told ConsumerAffairs this isn’t just your straightforward “Mastercard” that’s branded as their own, but also includes other partner-branded “Mastercard" -- like the ones that airlines offer, for example.

Run, but you can’t hide

To show some examples, PIRG pointed ConsumerAffairs to Mastercard’s listing on Amazon Web Services Data Exchange, where we found trough after trough of data that companies can access address listings for:

• Online Food & Meal Delivery – Frequent Buyers

• Online Shoppers – High Spenders

• Likely to Be a Small Business – In Market

• Luxury Retailers – High Spenders

• Fast Fashion Apparel Buyers – High Spenders

• Big Ticket Shoppers (Online) – Frequent Buyers

• Affluent Shoppers

• Brick and Mortar Shoppers

• Luxury Travelers & Tourists

As well as “built-to-order audiences” that a client can spec out to work with their own marketing strategies. Those specs can include an advertiser's choice of: 

• Transactions (e.g., amount, frequency, offline vs. online)

• Date and Time (e.g., date range, time of day, weekend vs. weekday)

• Geography (e.g., country, state/province, DMA, city, region)

• Industry / Merchants (e.g., Merchant Category Codes (MCCs), custom aggregate set of industry merchants)

“Mastercard creates categories of consumers based on this transaction history, like identifying ‘high spenders’ on fast fashion or ‘frequent buyers' of big-ticket items online, and sells these groupings, called ‘audiences,’ to other entities," the report said.

These groups can be targeted at the micro-geographic level, and even be based on AI-driven scores Mastercard assigns to consumers predicting how likely they are to spend money in certain ways within the next three months.”

But Mastercard isn’t alone

PIRG’s Cross were quick to point out that Mastercard is not the lone wolf in spinning data accumulation into gold. 

“Nor is it necessarily the worst actor," she told ConsumerAffairs. “But in its position as a global payments technology company, Mastercard has access to enormous amounts of information derived from the financial lives of millions, and its monetization strategies tell a broader story of the data economy that’s gone too far.”

Who else is in on this? PIRG said lots of companies – almost every company that can collect and sell data is in the business.

“The big tech companies are the worst offenders, like Meta and Amazon. But also see Mozilla Foundation's report earlier this month that most car companies sell data they collect about consumers – particularly Ford and Toyota. Another report from 2021 found Uber Eats and Grubhub are big sellers, too," Cross noted.

"And the telephone companies, too! T-Mobile in particular has gotten big in this world in the last couple of years."

Does this mean you should cancel your Mastercard credit card?

Now that you know what PIRG found, how far should you go in protecting yourself?

“It's hard to escape credit card companies monetizing your data without your knowledge. Canceling is likely unrealistic for many people,” a spokesperson for PIRG told ConsumerAffairs.

“Right now the best option is to take advantage of the options the payment networks do offer.”

PIRG offers a complete "tips guide" for the Mastercard issue, but here are the highlights:

• Filling out this form on Mastercard’s website to opt-out of analytics, which will cut down on your data being used for extra purposes.

• Sign up for its data portal to request it delete your data.

• If you're a California or Virginia resident, take advantage of your consumer rights, thanks to state consumer privacy laws. 

• Use this form to delete the data Mastercard uses in its "identity graph" product, which gathers even more personal info. Residents of other states cannot opt out of this program at the time.

It’s now officially Autumn, so slow down and keep your eyes on the road. It turns out the fall months are the most dangerous time to drive.

Automotive data company CARFAX has issued a new study showing more than 72% of U.S. drivers – roughly 170 million – live in states where fall is the peak season for accident damage.

The study’s authors point to many reasons. For one, there is less daylight. If you normally drive home at 6:00 p.m., it is no longer sunny like it was in July, but dark. Half of U.S. accidents happen in the dark, but those hours account for only 25% of travel.

Leaves are falling and when they collect on the roadway during a rain shower, the surface can become slick, making it more difficult to control the vehicle. Braking on wet leaves can make a car travel more than twice as far as braking on a dry road.

And then there are deer, which seem to be everywhere in October, even in urban and suburban areas. Deer mating season runs from October through December, and nearly half of deer crashes nationwide happen in just those three months. 

In addition, one study notes that deer-car collisions spike 16% in the week after the end of Daylight Saving Time in November because of the jump to an earlier sunset. During the fall hunting season, deer being chased by dogs often bolt across the highway and into oncoming traffic.

"CARFAX has the most accident and damage information, and sometimes that data can be surprising," said Faisal Hasan, general manager for Data at CARFAX. "The change of seasons is a good time for drivers to see if any new recalls have been issued for their car."

Winter can also be a dangerous time to be behind the wheel, but only 23% of drivers live in states where winter is worst for accidents. Those states are California, Florida, New Jersey, Louisiana and Vermont.

What to do

To stay safe in Autumn and prepare for winter, there are several things drivers can do, all having to do with maintenance.

• Check tire pressure: Sudden temp drops make tires lose air quickly. Don't wait for a Tire Pressure Monitoring System alert; check tire pressure monthly.

• Switch to winter tires: Cold weather can harden the rubber in standard tires, hurting traction. If you live in a frigid area, winter tires with special rubber compounds and tread patterns may be wise.

• Get a battery check: Cold weather reduces a battery's power, and it could fail. If your mechanic finds that your battery is weak, have a new one installed.

• Check wiper fluid level: Slush from the road can be kicked up onto your windshield, making it hard to see. Carry an extra gallon in cold-weather months.

• Check wiper blades: If the rubber has cracked, your wipers may leave streaks. Wipe them down with Windex. If that doesn't work, install new blades.

Volkswagen Group of America is recalling 47,651 model year 2019-2020 Jettas with a conventional ignition switch.

The ignition switch may fail, especially in high temperature environments.

Failure of the ignition switch can cause the electrical system to shut down and the engine to stall while the vehicle is being driven, increasing the risk of a crash.

What to do

Dealers will replace the ignition switch free of charge.

Owner notification letters are expected to be mailed October 27, 2023.

Owners may contact Volkswagen's customer service at (800) 893-5298. Volkswagen's number for this recall is 28H7.

Kraft Heinz is recalling 83,800 cases of individually-wrapped Kraft Singles American processed cheese slices.

A thin strip of the individual film may remain on the slice after the wrapper has been removed, which could cause a gagging or choking hazard.

The firm has received six complaints of consumers saying they choked or gagged in connection with the issue. No injuries or serious health issues have been reported.

Products included in the recall include:

• 16-oz. Kraft Singles American Pasteurized Prepared Cheese Product with an individual package UPC of 0 2100061526 1 and a “Best When Used By” date of 10 JAN 24 through 27 JAN 24. Individual packages in this recall will contain an S and 72 in the Manufacturing code.
• 3-lb. multipacks of Kraft Singles American Pasteurized Prepared Cheese Product with a carton UPC of 0 2100060491 3 and a “Best When Used By” of 09 JAN 2024 through 13 JAN 2024 and 16 JAN 2024.

 The recalled products were shipped to a limited number of customers.

What to do

Customers who purchased the recalled products should not consume them, but return them to the store where purchased for an exchange or refund.

Consumers with questions may contact Kraft Heinz at (800) 280-8252 from 9 a.m. to 6 p.m. (EST) Monday through Friday

You'd better be checking your bank account daily – if not hourly! A new PYMNTS Intelligence and Hawk AI study says that the rise in digital payments has caused 43% of banks across the country to suffer fraud and in ways they never have before. 

Each financial institution lost nearly half a million dollars on average related to scams alone this year, but it’s not just the losses that are bringing the heat. The sophistication of these scams is forcing banks to increase investments and deploy modern-day machine learning and artificial intelligence (AI) to counter growing fraud. 

The scams leading the way are bank support impersonation scams. Those snow jobs are laying waste to banks just like they are with other industries.

But there are two other finance- and bank-related swindles that are starting to rise in the terror ranks, too: “Pay Yourself” and “Check Washing.”

'Pay Yourself'

The “Pay Yourself” scam is ruffling lots of feathers, most notably with Zelle customers. Zelle says the scam begins with a text message from a scammer that looks like a fraud alert from your bank – a trick that bank impersonators also play.

If you respond to the text message and engage the scammer, step two is a call from a number that appears to be your bank. On the other end is the scammer pretending to be a bank employee who offers to stop the alleged fraud. In reality, the scammer is actually tricking you into sending money to their bank account.

Scammers begin looking for consumers through phone calls, emails, text messages, or even social media messages. They often use spoofed phone numbers or email addresses that appear legitimate, making it seem like they are indeed from a trusted bank. Again, pretty standard scam tactics.

Where the scammer dons their “Pay Yourself” mask is this, says Zelle: “When you enroll with Zelle, your bank sends you a security code to verify your identity. The scammer claims that they need this passcode to authorize your payment to yourself,” the company says.

If you provide the code, then you’re simply handing them the keys to your account. With that passcode, they’ll be able to connect their bank account with Zelle utilizing your email or phone number. “Now the money you thought you were sending to yourself is sent directly to their bank account,” Zelle officials say.

'Check Washing'

According to the United States Postal Inspection Service (USPIS), "check washing" is growing at an alarming rate thanks to bands of thieves who fish personal checks from USPS mailboxes or take them out of your personal mailbox. They may even go as far as robbing mail carriers in search of checks. 

When they get away with it, they're probably lining their pockets pretty well. USPIS says it recovered more than $1 billion in counterfeit checks and money orders in the last year.

Sarah Grano, an ABA American Banking Association (ABA) spokesperson, gave ConsumerAffairs a quick overview of what happens once a thief has stolen your check. 

“Once they have a check you wrote and mailed -- for example, to a charity -- they use chemicals to ‘wash’ the check in order to change the amount or make themselves the payee,” she said.

“They then deposit your check and steal money from your account. If you have mailed a check that was paid, but the recipient never received it, you may be a check-washing victim.”

USPIS says this scam is double trouble for consumers because the losses are often financial and personal, like this gut punch: “Honey, did you get the birthday check that Auntie sent you”?

Grano told ConsumerAffairs that the ABA is working collaboratively with its members and other stakeholders to implement innovative solutions that target the real problem -- the bad actors preying on customers and the banks that serve them. Until that day arrives, though, she said consumers have to do some due diligence of their own, including:

• Consider making payments using e-check, ACH automatic payments and other electronic and/or mobile payments.

• Use pens with indelible black ink so it is more difficult to wash your checks.

• Follow up with charities and other businesses to make sure they received your check.

• Use online banking to review copies of your checks to ensure they were not altered.

• If you still receive paid checks back from the bank, shred – don’t just trash them.

• Regularly review your bank activity and statements for errors.

• Don’t leave blank spaces in the payee or amount lines of checks you write. 

The United States Postal Inspection Services also recommends that you:

• Drop off mail in blue collection boxes before the last scheduled pick-up time or directly at your local Post Office.

• Regularly check your mail. Do not leave your mail in your mailbox overnight.

• If you’re heading out of town, have the Post Office hold your mail or ask a trusted friend or neighbor to pick up your mail.

And if you become a victim? Grano says to immediately contact the United States Postal Inspection Service and file a report (or call 1-877-876-2455); contact your local police department; contact your financial institution.

This year has been – and should continue to be – a great year for consumers wanting to do home improvements like closet updates, solar panels, and kitchen and bathroom remodels.

But there are always a number of bad actors who think they can play contractor and make some money off the boom.

One contractor didn’t like where things were headed and seven years after launching his career as a roofing contractor, Dmitry Lipinskiy, CEO of Directorii, sold his business and became consumer advocate. He told ConsumerAffairs, “It’s hard to find a contractor you can trust but it doesn’t have to be this way.”

Contractor advice straight from the horse’s mouth

Now that he’s turned consumer champion, ConsumerAffairs asked Lipinskiy if he would share some insider information on how we all can protect ourselves against contractors who make big promises and leave us hoping that they’ll follow through. Here are some of his thoughts on several home-related topics:

How to find the best building materials and contractors

“Do your research: look for independent reviews and guides. Youtube and Google are great, but pay attention to sources: make sure they are not coming from manufacturers themselves,” he said.

For example, he said several online services are putting their money where their mouths are in regard to recommendations.

Lipinskiy pointed to Google which offers a $2000 guarantee, Contractor's List’s $10,000 guarantee (in Texas) for its recommendations, and Directorii.com which offers a $20,000 guarantee in all states for all recommendations. 

“These sites might have a limited number of contractors listed, but unlike more popular sites these sites don't have ‘fine prints’ stating you are hiring at your own risk: they help you with disputes,” he said.

ConsumerAffairs offers a number of resources to help homeowners who are planning improvements, including an analysis of some of the best bathroom remodeling contractors, including verified reviews.

Working with an insurance company after a weather disaster.

“Document and take pictures of everything before. Outside items are the most important. You will need a picture to prove the condition of items before: grill, pool, fence, deck, furniture etc.,” Lipinskiy advises. “Make sure your contractor is present during inspection with an adjuster to keep him accountable for the scope of damage and to help him to document everything.”

How about warranties?

One of the things that motivated Lipinskiy to hang up his contractor hat was all the gimmicks contractors use. At the top, he lists “50-year” and “lifetime” warranties. He throws extra shade on asphalt manufacturers that make those offers because the life expectancy in his estimation is really only 15-20 years.

“Many issue warranties without inspection of the jobs because they know they will put liability on contractors when a claim is filed,” he said, noting that transferability of warranties is also a “joke.”

Disputes over large projects and how to avoid them.

How can you avoid a dispute when things go wrong? Lipinskiy's suggestions include:

• Never pay in full until the majority of the work is done

• Ask for lien waivers from subcontractors and suppliers

• Check references

• Ask for the warranty registration process and how to file a claim if something goes wrong.

• Understand the dispute resolution process before it takes place. 

But, whatever you do, “Don't give large deposits,” he suggested. “Rather use small increments based on stages of projects completed: 25%/25%/25%25% is a good example.” 

Motorists are beginning to feel a little more pain at the pump as gasoline prices, stable for the last few weeks, have moved higher over the last few days.

AAA reports the national average price of regular gas is $3.88 a gallon. That’s about four cents a gallon higher than a week ago but is about the same price motorists were paying a month ago. But compared to this time last year, the average price is 20 cents a gallon more.

The average price of premium gas is $4.65 a gallon and the average price of diesel fuel is $4.58 a gallon. The prices of both have risen more than 10 cents a gallon in the last seven days.

Across the country, there is a wide disparity in price on a state-by-state basis. In California, the statewide average price of regular is $5.76 a gallon, the highest in the nation. In Los Angeles, the average price is even higher – $6.03 a gallon.

Mississippi has the cheapest gas in the nation. The statewide average is $3.30 a gallon.

Prices are rising because the price of oil has begun to rise, hitting $90 a barrel. Saudi Arabia and Russia have agreed to curtail production in an effort to keep prices elevated.

Domestic producers have upped their game

Patrick DeHaan, head of Petroleum Analysis at GasBuddy, has reported U.S. production has increased in an effort to make up for lost supply. He reports U.S. oil production is up 800,000 barrels a day from this time a year ago. Since January 2021, U.S. producers have increased their output by 1.9 million barrels a day.

That, and a couple of other factors, may put a ceiling on how high gasoline prices will rise.

 “Oil costs are putting upward pressure on pump prices, but the rise is tempered by much lower demand,” said Andrew Gross, AAA’s spokesperson. “The slide in people fueling up is typical, with schools back in session, the days getting shorter, and the weather less pleasant. But the usual decline in pump prices is being stymied for now by these high oil costs.” 

Other relief may come from refiners. Gasoline producers have begun the process of switching over to winter-grade fuel blends, which cost less than summer-grade fuel.

Consumers are increasingly holding companies accountable for the claims they make, taking words and images at face value. The courts are listening.

If you show an ad featuring a large hamburger, then the real thing should measure up, say the plaintiffs who sued Burger King last month, claiming the actual size of the Whopper is 35% smaller than the picture in the ad.

Now it’s Starbuck's turn. A group of consumers has sued the coffee chain, claiming its “refresher” drinks with fruit like “mango” in their names actually contain no fruit. The plaintiffs, who are seeking class-action status, originally sought damages of $5 million.

The complaint, filed in U.S. District Court in New York, claims the drinks in question are mostly water, grape juice concentrate, and sugar. The plaintiffs argue they would not have paid the “premium” price Starbucks charged if they knew the drinks did not contain any of the fruit in the name. Refreshers cost between $3.95 and $5.95.

Starbucks asked for a dismissal

Attorneys for Starbucks asked the court to dismiss the complaint, arguing that “no reasonable consumer would be misled by the products’ names into thinking that the products contain the missing fruit.” 

They further argued that by putting the name of the fruit in the name of the drink, the chain was only suggesting a flavor, not an actual ingredient. If there was any confusion on the part of the customer, they could simply ask a barista, the defense pointed out.

U.S. District Judge John P. Cronan denied the company’s motion to dismiss the case, writing that the plaintiffs adequately made their case that “a significant portion of the general consuming public could be misled by the names of the at-issue beverages.”

The clincher may have been a perceived lack of consistency. The judge noted that some other Starbucks beverages – specifically coffee beverages – are named after their actual ingredients. The judge denied the motion to dismiss the case.

The case is similar to the Burger King lawsuit, which was allowed to proceed on claims of false advertising.

American Honda Motor of Torrance, Calif., is recalling about 391,800 Honda lawnmowers and pressure washer engines.

Improperly manufactured camshafts in the engines can cause the starter rope to suddenly retract when being pulled to start, posing an injury hazard.

The company has received nearly 2,200 reports of incidents related to camshaft failures, including seven reports of minor injuries.

This recall involves Honda HRN216 and HRX217K6 lawnmowers and GCV170/200 G5B pressure washer engines.

The gas-fueled walk-behind lawn mowers are red and black with "HONDA" written on the clipping collection bag. The model and serial number are printed on a label located on the upper rear of the mower deck.

The pressure washer engines are mounted on various original equipment manufacturer frames. The serial number of the engine is engraved on a flat spot on the engine.

The lawnmowers and pressure washer engines were manufactured in the U.S.

The Lawnmowers were sold at Honda Power Equipment dealers, Ace Hardware, Home Depot, Lowes, Northern Tool and various farm, agricultural and rental stores nationwide from May 2022, to June 2023, for between $550 and $1,100. 

The pressure washer engines were sold at Lowes, Home Depot and other retail stores nationwide from June 2022, to August 2023, for between $370 and $550.

What to do

Consumers should immediately stop using the recalled lawnmowers and pressure washers equipped with recalled engines and contact an authorized Honda Power Equipment dealer to schedule an appointment for a free inspection and repair.

Consumers may contact American Honda Motor toll-free at (888) 888-3139 from 9 a.m. to 7:30 p.m. (ET), Monday through Friday, or online at powerequipment.honda.com/support/recalls-and-updates.

After declining briefly, suicide deaths in the U.S. began to rise during the COVID-19 pandemic. The Centers for Disease Control and Prevention (CDC) estimates there were 48,183 suicide deaths in 2021, rising to an estimated 49,449 deaths in 2022, an increase of approximately 2.6%.

September is National Suicide Prevention Month, with public health organizations working to raise awareness of the signs that someone may be thinking about ending their life.

#BeThe1To is the 988 Suicide & Crisis Lifeline’s message for National Suicide Prevention Month and beyond, which helps spread the word about actions we can all take to prevent suicide. The Lifeline network and its partners are working to change the conversation from suicide to suicide prevention, to actions that can promote healing, help and give hope.

“The troubling increase in suicides requires immediate action across our society to address the staggering loss of life from tragedies that are preventable,” said CDC’s chief medical officer Dr. Debra Houry. “Everyone can play a role in efforts to save lives and reverse the rise in suicide deaths.”

An overlooked reason

There can be many reasons someone considers taking their life. Often depression is a major contributor, caused by a traumatic life change.

A report this month from the Identity Theft Resource Center (ITRC) points to another overlooked reason. The report found that identity theft victims are more likely than others to consider suicide.

A survey of victims found 8% considered it in 2020, with the percentage doubling to 16% in 2022. The survey seeks to measure the emotional toll that identity theft takes on its victims.

“This year’s report reflects the responses of 144 victims who contacted the ITRC between January 1-December 31, 2022,” the group said in a statement. “The ITRC also asked 1,048 consumers in an online survey if they had been the victim of an identity crime and, if so, how it impacted them. Responses from this broader set of self-identified victims using similar questions asked of victims who contacted the ITRC show both significant differences and common experiences.”

What you can do

The National Action Alliance for Suicide Prevention and the 988 Suicide & Crisis Lifeline suggest five steps to help safeguard people from the risk of suicide and support them when in crisis:

1. Ask: Asking and talking about suicide may in fact reduce rather than increase suicidal ideation.

2. Help keep them safe: Reducing a suicidal person’s access to lethal means is an important part of suicide prevention.

3. Be there: Increasing someone’s connectedness to others and limiting their isolation has shown to be a protective factor against suicide.

4. Help them connect: Individuals that called the 988 Lifeline were significantly more likely to feel less depressed, less suicidal, less overwhelmed, and more hopeful by the end of calls.

5. Follow up: After you’ve connected a person experiencing thoughts of suicide with the immediate support systems that they need, following up with them to see how they’re doing can help increase their feelings of connectedness and support. There’s evidence that even a simple form of reaching out can potentially reduce that person’s risk for suicide.

According to the National Institute of Mental Health (NIHM), warning signs include withdrawing from friends and family, extreme changes in sleep patterns, displaying extreme mood swings and expressing a feeling of being a burden to others.

Ford Motor Company is recalling 8,523 model year 2023 Edge vehicles.

The front right headlight may be too bright or aimed incorrectly.

A headlight that is too bright or aimed incorrectly may cause a glare to other road users, increasing the risk of a crash.

What to do

Dealers will inspect and replace the right headlight assembly -- as necessary -- free of charge.

Letters to owners notifying them of this issue are expected to be mailed October 9, 2023.

Owners may contact Ford customer service at (866) 436-7332. Ford's number for this recall is 23C26.