Current Events in December 2023

If you thought you missed your chance to buy the latest Apple Watch, you're in luck. A court has ruled sales can resume, at least temporarily.

Apple was forced to pull its latest version of the Apple Watch, the Series 9 and the Ultra 2, from shelves after the International Trade Commission (ITC) claimed that the tech company violated a technology patent from Masimo, a medical device company. 

The dispute in question was over technology in the Apple Watch that’s used to measure users’ blood-oxygen levels. According to the ITC, Apple was violating a Masimo patent on pulse oximeters. 

This ban dates back to October 2023, when the ITC initially ruled that Apple was in violation of Masimo’s patent. At that point, the decision went to the Biden Administration, who decided to uphold the ITC’s ban. 

The ITC banned Apple from importing the latest versions of the Watch that contained this specific technology. While retailers could sell whatever they had on the shelves, new watches weren’t able to be shipped into the country. 

Watches are now available in the U.S. 

Now, the U.S. Court of Appeals has temporarily put a pause on the ban, allowing Apple to start reselling the Series 9 and Ultra 2 watches both in stores and online. 

While Apple might think this is a step in the right direction, the legal battle isn’t over. This most recent decision has put a pause on the import ban, but Apple is hopeful that the courts will rule in its favor for the long-term.

Apple has submitted a redesign of the Series 9 and Ultra 2, and the ITC has until January 12 to make a long-term decision on the future of the Watch. 

“Apple’s teams have worked tirelessly over many years to develop technology that empowers users with industry-leading health, wellness, and safety features and we are pleased the U.S. Court of Appeals for the Federal Circuit has stayed the exclusion order while it considers our request to stay the order pending our full approval,” the company said in a statement. 

Bugaboo North America of New York, N.Y., is recalling about 1,200 Bugaboo Dragonfly Seat Strollers sold in the U.S. and Canada.

In “parent-facing” mode, the backrest of the seat can move downward, placing the infant in a negative recline.

In this situation, an unrestrained infant could tumble from the seat, posing an injury hazard.

The firm has received one report in the U.S. and seven reports in South Korea of the backrest of the seat moving downward during use when in parent-facing mode. No injuries have been reported in the U.S.

This recall involves only the seat sold with the Bugaboo Dragonfly Seat Strollers.

The strollers are comprised of a base on which either a seat or bassinet can be mounted. The seat measures approximately 11.8 inches wide and 22.8 inches long and comes in either black, gray or forest green.

Only units with serial numbers beginning with the following numbers are included in the recall:

• S46012302xxxxxx
• S460123013xxxxx
• S46012303xxxxxx
• S460123015xxxxx
• S46012307xxxxxx
• S46012320xxxxxx
• S460123010xxxxx

The strollers, manufactured in China, were sold at children’s specialty stores nationwide and online at www.bugaboo.com in May and June 2023 for about $900 for seat strollers only, and about $1,100 for bassinet strollers with seats.

What to do

Consumers should immediately stop using the recalled seats and contact Bugaboo for a free replacement stroller seat. Bugaboo is contacting all known retailers and purchasers directly.

Consumers may contact Bugaboo at (800) 460-2922 Monday through Thursday from 7 a.m. to 4 p.m. (PT), Friday from 7 a.m. to 1 p.m. (PT), by email at service.us@bugaboo.com or online at https://www.bugaboo.com/us-en/product-recalls/ for more information.

Inflation, housing affordability, dangerous products, the breakout of artificial intelligence, and of course, the proliferation of scams – these are topics that ConsumerAffairs covered in 2023 that resonated most with our readers.

To select the top stories of the year, we looked at how many views each story got the week it was published, as well as how many times it was accessed in subsequent weeks. As the year draws to a close, here are the 10 most-read ConsumerAffairs news articles of 2023.

Are you still in the middle class?

After inflation soared to 9% at one point in 2022, many families were wondering where they stood economically. To find out, ConsumerAffairs updated the data in the Pew Research Center’s inflation calculator to determine the minimum annual income needed in each state to be included in the middle class.

We found it varied widely, from $82,630 in Hawaii to $59,197 in West Virginia. Read more.

If a thief steals your iPhone they can steal a lot more

Apple’s iPhone has always had a rock-solid reputation for enhanced privacy but early in the year, researchers discovered there could be big problems if the device were stolen.

These thefts usually occur in a public place, like a crowded bar. If you pull out your phone and the thief sees you punch in your passcode, they might grab your phone and run. Within just a few seconds the thief can change the passcode, preventing the victim from accessing their account.

Then the trouble really starts. Read more.

AI used in terrifying fake kidnapping scam

The year began with ChatGPT, developed by Open AI, creating a sensation. It was the first widely-used AI platform that could be used by anyone to write computer code or a sonnet. 

Predictably, AI was quickly harnessed by criminals to run all types of dangerous scams. In April we reported how AI could clone anyone’s voice by obtaining just a few seconds from social media videos. 

That made the fake kidnapping scam even more dangerous. Read more.

Wronged Bank of America customers to receive $100 million

Bank of America has millions of customers and many of them, it turns out, were subjected to unfair fees. It got the attention of federal regulators who in July, ordered the bank to pay $100 million in compensation.

One of the 36,002 complaints lodged with the regulator said that the bank charged them interest on a $0.00 balance and told them that they had to have several months of a zero balance before interest wouldn’t accrue. 

Needless to say, this story gained a lot of attention among ConsumerAffairs reader who made the article one of our most popular during the summer and into the fall. Read more.

Did Southwest Airlines sell flights it knew it couldn’t fly?

The year began in the aftermath of Southwest Airlines’ holiday week meltdown that stranded thousands of Christmas and New Year’s travelers. Before the end of January the U.S. Transportation Department opened an investigation into what happened and why.

Airline employees pointed a finger at the company’s computer system, which they claimed was outdated. But investigators also wondered if the airline sold a lot more tickets than it had available seats.

In December, the government levied a record $140 million fine against the airline. Read more.

Thinking of moving to a cheaper state?

The housing market was the source of a lot of consumer pain in 2023. As mortgage rates doubled from pandemic lows, millions of Americans found they couldn’t afford to buy a home – unless they moved to a cheaper state.

Our article about a ConsumerAffairs study of the cheapest states to buy a home got a lot of attention last year. 

ConsumerAffairs researchers determined that North Dakota has the lowest cost of living in the U.S., followed by West Virginia and Michigan. In fact, the lowest-cost states are clustered in the Midwest and Appalachian Southeast with the lowest home prices in West Virginia. Read more.

More possible links between medication and dementia

Throughout the year our readers showed a lot of interest in stories having to do with cognitive decline and the slow progress toward finding effective treatments. When we reported possible links between dementia and acid reflux medications, it was the most-read story of the week.

When we followed it up with a story about possible dementia links to other medications there was even more interest. 

To be sure, the evidence of these links is far from conclusive, but researchers think the two classes that could have the strongest link to a risk of dementia are anticholinergics and benzodiazepines. Read more.

Ford leads in the number of recalled vehicles in the first half of 2023

It’s been a rough year for Ford. Besides losing billions of dollars on electric vehicles, a special ConsumerAffairs report in July found that it had the most recalls and most recalled vehicles in the first six months of 2023.

In terms of the number of vehicles recalled Ford topped the list with a total of 4.1 million cars, light trucks and vans. Most of those – nearly 1.3 million -- were for servicing brakes and hydraulic systems, followed by miscellaneous equipment issues ( l million) and backover prevention (807,000).

Industry sources reported there were 245 auto industry recalls from January through June -- up 3.4% from the same period a year earlier. Read more.

Watch out for the new Barbie scam

The summer’s blockbuster movie “Barbie” had the whole world talking about the iconic Mattel doll, brought to life on the silver screen. It didn’t take scammers long to try and exploit it.

In late July the ConsumerAffairs-Trend Micro Threat Alert found plenty of schemes around the movie. Jon Clay, vice president of Threat Intelligence at Trend Micro, warned readers to stay alert, saying Barbie was appearing in several Walmart-related scams. Read more.

Are you an Xfinity customer? Then look out for this scam

The Xfinity scam was among one of the most enduring scams ConsumerAffairs covered in 2023. We first reported it in April after hearing about Xfinity customers who were contacted by phone and offered a fake discount.

They were told they would get a 50% discount if they committed to keep the service for another two years but would have to pay the first year in advance – using Target gift cards.

The scammers only appeared to target Xfinity customers, suggesting they have access to Xfinity’s subscriber list. Read more.

Perch of Boston, Mass., Amusty of Staten Island, N.Y., and Bingo Deals of Harriman, N.Y., are recalling about 205,000 Litti City Premier Doctor Playsets and Teacher Purse Sets, Litti Pritti Stylist Handbag Sets, and Prextex Slime Eggs.

The dress-up playsets and the slime eggs contain levels of certain phthalates that exceed the federal phthalate standard.

In addition, the Litti City teacher purse dress-up playset, the Litti Pritti handbag playset, and the slime eggs contain levels of lead that exceed the federal lead content ban.

Lead and phthalates are toxic if ingested by young children and can cause adverse health effects.

No incidents or injuries are reported.

This recall involves two Litti City dress-up playsets, one Litte Pritti dress-up playset and Prextex-branded DIY take-along slime eggs.

The Litti City premier doctor playset (Amazon ASIN B07WMX25SV) consists of a white doctor outfit and accessories, including blue glasses, yellow stethoscope and bandages, and a book.

The Litti City teacher purse playset (Amazon ASIN B08MB3CJD6) consists of a green purse and accessories, including glasses, markers, rules, eraser, hall passes, learning charts and stickers.

The Litti Pritti handbag playset (Amazon ASIN B06XQXMQFD) includes a pink purse, wallet, make-up, keys and cell phone.

The 12 clear plastic slime eggs are filled with slime in varying colors and come in a blue plastic egg container with www.prextex.com embossed on the top. The set includes seven mini bottles of shaped beads and 12 straws.

The recalled products, manufactured in China, were sold online at Amazon.com and Walmart.com, with the Litti Pritti handbag playset also sold at Ocean State Job Lot stores in the northeast, from July 2021, through April 2023, for between $9 and $45.

What to do

Consumers should immediately stop using the recalled playsets and slime eggs and contact Perch for more information on how to dispose of the product and to get a full refund after providing proof of destruction. Perch, Amazon and Walmart will contact all known purchasers directly.

Consumers may contact Perch toll-free at (888) 359-4676 from 7 a.m. to 6 p.m. (CT) Monday through Friday, by email at playsets@realtimeresults.net, or online at www.recallrtr.com/playsets for more information.

Audi is recalling 93,196 of the following vehicles:

• Model year 2022-2024 RS e-tron GTs, e-tron GTs, Q4 e-tron Sportbacks & Q4 e-trons,
• Model year 2020-2021 Audi A8s,
• Model year 2019-2024 e-tron Quattros,
• Model year 2020-2024 e-tron Sportback Quattros & Q5s, and
• Model year 2021-2022 A7s.

When the industrial 220V/240V plug is used at the 100% charge setting, some home power outlets may be incapable of handling the electrical current required to utilize the compact charging system, causing the outlet or charging cable to overheat.

An overheated outlet or charging cable can increase the risk of a fire.

What to do

Owners are advised not to use the 220V/240V compact/portable charging cable, and only use the 110V home charging cable or public charging stations.

Dealers will supply a new 220V/240V compact/portable charging cable with an incorporated temperature sensor free of charge.

Interim owner notification letters explaining the safety risk are expected to be mailed February 9, 2024.

A second notice will be sent once remedy parts become available, which is anticipated in mid-2024.

Owners may contact Audi customer service at (800) 253-2834. Audi's numbers for this recall are 93U6 and 93U8.

If you’ve sampled social media in recent weeks, you may have seen dozens of posts and videos warning of hard economic times ahead in 2024. Many of these points of view are coming from respected investors and economists.

For example, on the “Thoughtful Money” podcast, Jesse Felder, the founder and editor of The Felder Report, a market research firm, warns the elephant in the room is the country’s $30 trillion-plus deficit that he says could pose a big threat next year. 

Should the economy slip into a recession as some expect, he says the result would not be what Wall Street expects.

“Everybody who thinks that a recession will slow the economy and interest rates will come down could be in for a major surprise,” Felder said. “A recession means the deficit blows out even more and Treasury supplies grow dramatically and interest rates actually go up. That’s the thing I’m worried about most right now.”

Recession possibilities

ConsumerAffairs reached out to a number of economists and investors about their views of what could be in store for 2024. Shmuel Shayowitz, president and chief lending officer at Approved Funding, has a bearish outlook that is more in line with Felder’s and believes that the economy will slip into a recession.

“I believe the Federal Reserve will be slow to lower rates early enough to avoid a recession,” he told ConsumerAffairs. “I think the economy will slow with slower growth for big companies and retailers, leading to weaker employment - all of which will have a negative impact on stocks. I predict that overall in 2024, the S&P 500 will perform below its annual averages.

But Robert Johnson, a professor of finance at the Heider College of Business, Creighton University, is more optimistic. He believes a recession in 2024 is unlikely.

“Given the data up to this point it appears that the Fed is successfully engineering the illusion of a soft landing,” he told us. “For all of the criticism that Jay Powell and his colleagues face, they have done an exemplary job in achieving their dual mandate of price stability and full employment.”

Bullish outlook for growth stocks

Ahmed Abdullah Shaikh, strategy and investments manager at Unity Foods, also has a more upbeat outlook. He says growth stocks, that have led the late 2023 stock market rally, should continue in that role.

“Safe bets for the stock market will remain in stocks like Apple and Nvidia, which have poised themselves as the “picks and shovels” in the modern tech gold rush – a vision years in the making,” Shaikh said.

Shaikh also says the S&P 500 will most likely provide a modest 9% return on improved consumer spending as the general public becomes better suited to a relatively higher interest rate environment than it was comfortable with in previous years.

Ryan Detrick is chief market strategist at Carson Wealth. He also sees little chance of a recession next year, with continued growth in stock prices. He expects inflation to fall further as supply chains continue to heal and shelter costs to decline. 

“All of this will open the door for the Fed beginning to cut rates in the second half of the year,” he predicted.

‘Economy on shaky ground’

Joe Camberato, CEO of NationalBusinessCapital.com, a fintech lending marketplace, says he doesn’t see a 2024 recession but concedes there is reason to be cautious.”

"I don't foresee a recession in 2024, but the economy is on shaky ground, and a downturn wouldn't be surprising given the current circumstances,” Camberato said.

He says many factors like interest rates, tightened bank policies, and global conflicts are adding complexity to the situation. If the Fed raises rates again he says it could “absolutely, trigger a recession.” He says businesses and consumers are already strained under existing rates.

Avis Berg is the chief investment officer at Berg Capital & Co. He says 2024 will be a hard year to forecast with many factors potentially influencing the economy and financial markets.

“I'd encourage investors to stay informed, stay flexible, and seek advice from financial professionals when making investment decisions,” he said.