Current Events in December 2024

Lender Rocket Homes gave kickbacks to real estate brokers and agents to get homebuyers to sign up for its loans, the Consumer Financial Protection Bureau alleged in a lawsuit on Monday.

The lawsuit aims to stop the alleged kickback scheme, which gave refferals and other incentives to pressure "real estate brokers and agents not to share valuable information with their clients concerning products not offered by Rocket Mortgage, such as the availability of down payment assistance programs, which often save homebuyers thousands of dollars," the CFPB said.

“Rocket engaged in a kickback scheme that discouraged homebuyers from comparison shopping and getting the best deal,” CFPB Director Rohit Chopra said. “At a time when homeownership feels out of reach for so many, companies should not illegally block competition in ways that drive up the cost of housing.”

Additionally, the CFPB sued The Jason Mitchell Group, a real estate firm doing business in 41 states and the District of Columbia, for participating in the kickback scheme and referring thousands of homebuyers to Rocket Homes and an affiliate.

For example, the CFPB said The Jason Mitchell Group gave $250 gift cards to agents that made the most referrals to its favored partners: Rocket Mortgage and Amrock, a Rocket Homes-affiliate that handles title, closing and escrow services.

A spokesperson for Rocket Homes told ConsumerAffairs that the "allegations are false and a distortion of reality."

"The facts are clear – data shows one third of consumers with a loan application already in progress with Rocket Mortgage, before contacting Rocket Homes, chose to close with a different lender," the spokesperson said. "This proves Rocket Homes is committed to empowering homebuyers to make the best decisions for their unique needs. Rocket Homes has always focused on connecting buyers with top-performing agents based on measurable success metrics."

The Jason Mitchell Group didn't immediately respond to ConsumerAffairs's request for comment.

With just a few weeks remaining in the Biden Administration, the notoriously slow-moving National Highway Traffic Safety Administration (NHTSA) is proposing voluntary safety guidelines for self-driving vehicles.

Safety advocates, frustrated by NHTSA's plodding pace, have been demanding tougher regulation of autonomous cars for years with little success. Finally, in the twilight of the Biden presidency, a voluntary program is apparently as far as it's willing to do. 

Key Details

• Voluntary Program: Automakers and autonomous vehicle companies can enroll, requiring safety plans, crash reports, and independent safety assessments.
• No Mandatory Standards: The proposal does not include specific performance requirements, like sensor capabilities or low-visibility detection.
• Safety Concerns: Critics argue the plan lacks enforceable regulations, with some calling it ineffective and insufficient to ensure safety.

Future Implications

The next administration, led by President-elect Trump, may create its own guidelines. Tesla CEO Elon Musk, named to co-lead a “Department of Government Efficiency,” could influence standards despite Tesla’s stake in the industry.

NHTSA will accept public comments on the proposal for 60 days and aims to gather data to inform future regulations. The agency acknowledges a need for stricter standards in the future but lacks enough data to implement them now, it argues.

Currently the only safety standars autonomous vehicles have to meet are the same ones all others must adhere to. The voluntary program would require companies to have independent assessments of their automated vehicle safety processes, and they would have to report crashes and other problems.

Safety advocates not impressed

“This is a big bunch of nothing,” said Missy Cummings, director of the autonomy and robotics center at George Mason University and a former safety adviser to NHTSA, in an Insurance Journal report. “It’ll be more of a completely useless paperwork drill where the companies swear they’re doing the right thing.”

Other concerns raised by safety advocates included:

• Lack of Specific Standards: Critics argue the voluntary guidelines do not set minimum safety requirements for self-driving vehicles, leaving the public at risk.
• Inadequate Oversight: Advocates believe the plan relies too heavily on companies self-reporting their compliance, which could lead to inconsistent or insufficient safety practices.
• Uncertain Enforcement: The voluntary nature of the program is seen as a step back compared to mandatory regulations that apply to human-driven vehicles.

Safety advocates are urging NHTSA to consider mandatory rules to ensure autonomous vehicle technology is deployed responsibly and safely. They emphasize the need for enforceable standards to protect public safety as self-driving technology advances.

In many parts of the U.S. consumers are getting their first cold-weather heating bills. For some, it can be a shock. Fuel oil costs are down nearly 20% in the last 12 months, according to the Consumer Price Index, but other utility costs are up.

A newly released report from doxo shows the average U.S. household now spends $362 per month, marking a 3% increase from the previous year. This analysis, part of doxoINSIGHTS' U.S. Utilities Market Size and Household Spend Report for 2024, found that Americans collectively spend $451 billion a year on utilities, underscoring the growing financial burden on households across the nation.

The report draws on data from 97% of U.S. zip codes, providing a detailed look at household payments for utilities, which include electricity, gas, water, sewer, and waste services. According to the findings, 79% of U.S. households with utility bills spend an average of $362 monthly, equating to $4,344 over 12 months. When averaged across all U.S. households, the annual cost comes to $3,432.

This increase in utility costs coincides with a broader trend of rising electricity prices, which have outpaced inflation rates in 2024, as reported by the U.S. Bureau of Labor Statistics. The U.S. Energy Information Administration forecasts that retail electricity prices will continue to climb across all customer segments in 2025, suggesting that consumers may face even higher bills in the coming months.

An increasing monthly burden

"Americans continue to be hit with factors that impact their utility bills, whether that’s due to the inflation we’ve seen in recent years or the hot temps that drove higher prices over the summer,” said Liz Powell, senior director of INSIGHTS at doxo. “Giving consumers transparency to this data through doxoINSIGHTS empowers them to budget as we head into winter and another peak usage period."

The report also identifies the states and cities with the highest utility bills. Hawaii tops the list with an average monthly bill of $634, followed by Maine and Connecticut. Among U.S. cities, New York leads with a monthly average of $626, with Milwaukee and Pittsburgh also in the top five.

Overall, utility bills account for about 5% of consumers' annual income, highlighting the significant impact of these rising costs on household budgets. Some utility companies offer programs that average the monthly charge over a year, providing lower payments in the summer and winter.

The Consumer Product Safety Commission has issued a critical consumer alert, urging consumers to stop purchasing or using fire pits designed to burn pooled alcohol or other liquid fuels.

These products, often marketed as tabletop fire pits, fire pots, miniature fireplaces, or portable indoor fires, pose significant safety risks and should be immediately discontinued and disposed of by consumers. Retailers are also advised to halt sales of these hazardous items.

In October, Colsen issued a recall for about 89,500 fire pits because the company said there is a risk of serious burn injuries from flames jetting from the pit and spreading fire. At the time there had been 31 incidents reported, some resulting in serious burns.

Since 2019, CPSC said alcohol fire pits have been linked to two fatalities and over 60 injuries, prompting the CPSC's stern warning. This alert follows previous advisories concerning FLIKRFIRE Tabletop Fireplaces and the recall of Colsen-branded tabletop fire pits.

Regulators said the primary danger associated with these fire pits arises from their design, which requires users to pour isopropyl alcohol or other liquid fuels into an open container before ignition.

This process violates the voluntary safety standard ASTM F3363-19, intended to prevent pool fires and flame jetting. These standards are crucial in mitigating the risks of flames spreading across the surface of pooled liquids and preventing explosive flame jetting incidents.

Extreme temperatures

The fuels used in these fire pits, such as isopropyl alcohol and ethanol, burn at temperatures exceeding 1,600°F, capable of inflicting third-degree burns in under a second. Igniting these fuels in an open container can lead to uncontrollable pool fires, producing unexpectedly large and intense flames that may extend beyond the confines of the fire pit.

A particularly perilous hazard, flame jetting, can occur during the refueling process if any flame remains present. This phenomenon can cause an explosive reaction, propelling flames and burning liquid onto users or nearby individuals. The CPSC has released a safety video demonstrating the severe impact and reach of flame jetting.

These dangerous products are widely available through various retailers and online platforms. The CPSC strongly advises consumers to discontinue use and dispose of any alcohol or liquid-burning fire pits and urges sellers to remove these items from their inventories immediately.

With high home prices and still rising mortgage rates, finding an affordable house can be a challenge. But when it comes to looking for a home, buyers first have to make a decision – buy an existing home or a newly-constructed one being sold by a builder?

Existing homes are normally less expensive than new ones, but there could be some advantages to a newly-built home, other than the fact that everything in the house is new. To sell their homes, builders are increasingly offering incentives, including buying down the mortgage rate.

While the average 30-year fixed-rate mortgage is now around 6.75%, some home builders are offering rates as low as 5%, making the monthly payment more affordable. And the number of builders doing this appears to be growing.

New home sales in November reached a seasonally adjusted annualized rate of 740,636, marking a 15.7% increase from the previous year and a 17.0% rise from 2019 levels. Ali Wolf, chief economist at Zonda, which tracks U.S. home construction, emphasized the role of incentives in driving these sales, particularly for larger builders. 

"Our data captured that 75% of all new home projects were offering some kind of incentive on quick move-in supply," Wolf said. "The important difference seen in November, though, was a lift in consumer confidence. The election was over – it was time to move on."

Other incentives

Mortgage rate buydowns are just one incentive builders may offer. Some are offering assistance with closing costs by covering some or all of the closing costs associated with purchasing a new home. 

Builders may also offer appliance or fixture upgrades and provide buyers with credits that can be used for home design upgrades, allowing them to customize their new homes to their preferences.

In addition to the rise in new home sales, rthe latest existing home sales report from the National Association of Realtors showed a sharp increase in November sales. The median home sale prices also continued to rise, perhaps sending a signal to buyers that waiting for lower prices and mortgage rates may be costly.

A new study has found that drinking alcohol can make severe allergic reactions worse for people with nut allergies. The study also suggests that nut-flavored alcoholic drinks, even with artificial flavors, could still trigger allergic reactions due to trace allergens.

The study led by McGill University looked at anaphylaxis, a life-threatening allergic reaction, and found that food was the most common trigger, especially tree nuts, which were linked to throat tightness. Insect stings, on the other hand, were more likely to cause heart-related issues like low blood pressure.

The researchers say understanding these patterns can help doctors diagnose and treat allergic reactions more quickly in emergencies.

“For doctors, spotting patterns could mean faster, life-saving treatment in emergencies. For people with allergies, understanding the role of alcohol and other triggers can help them make safer choices,” said lead author Roy Khalaf, a fourth-year medical student in McGill’s Faculty of Medicine and Health Sciences.

"With the holiday season’s abundance of nut-based treats and specialty beverages, the risk of accidental exposure to allergens requires careful attention,” he said.

The study also suggests that people with allergies should be cautious about alcohol and other triggers, especially during the holiday season when nut-based foods and specialty drinks are common.

The findings could lead to better allergen labeling on food and beverages. The study, published in the International Archives of Allergy and Immunology, is one of the first large-scale investigations of anaphylaxis in adults in Canada. It analyzed over 1,100 cases treated in emergency rooms over 10 years. The next step is to explore milder reactions and better allergy management strategies.

The Container Store is the latest retailer to file for bankruptcy.

The company said that the shopping process will remain unchanged for consumers throughout the bankruptcy process; however, the retailer has experienced declining sales for the last few years, and it’s finally come to a head. 

The retailer explained that 90% of its lenders have agreed to the bankruptcy process, and the company expects to wrap everything up in the next 35 days. In addition, the company’s lenders have agreed to invest $40 million into The Container Store, which will help lower debt obligations.

Things aren’t changing for consumers, employees

With over 100 stores across the country, consumers can expect their shopping experience to remain relatively unchanged. Stores will remain open during the bankruptcy process, and shoppers will also be able to make online orders and schedule in-home organization services. 

Additionally, employees can expect to retain their positions, their paychecks and all benefits. 

Despite the financial issues, representatives from the company are confident that the retailer will bounce back stronger. 

“The Container Store is here to stay. Our strategy is sound, and we believe the steps we are taking today will allow us to continue to advance our business, deepen customer relationships, expand our reach, and strengthen our capabilities,” said Satish Malhotra, CEO of The Container Store. 

“We are particularly excited about the future of our custom space offerings, which continue to demonstrate strength. I want to thank our incredibly talented employees for their continued dedication, our customers, partners, and vendors for their support, and our lenders who clearly see the strong potential in our business. We intend to maintain our strong workforce and remain committed to delivering an exceptional experience for our customers while we execute this recapitalization and for many years to come.”

Honda and Nissan have announced the two companies are in merger talks, with the intention of becoming one automaker in 2026 – the third largest in the world.

Nissan has been struggling lately, with sluggish sales and growing debt. Makoto Uchida, Nissan's president and CEO, says it’s in the best interests of both companies to unite.

"I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands,” Uchida said. “Together, we can create a unique way for them to enjoy cars that neither company could achieve alone." 

Karl Brauer, executive analyst at iSeeCars.com, says both Honda and Nissan, like most of the global auto industry, are struggling with rising costs, reduced sales, and China’s ever-increasing market share.

“Nissan is also facing a massive debt increase as over $5 billion in bonds come due in 2026, while Honda’s relatively small size limits its ability to invest in electric vehicle development,” Brauer told ConsumerAffairs. 

“The two automakers are looking to address these challenges by sharing costs and engineering resources, but successfully merging two companies won’t be easy, and the benefits will take years to manifest.”

Honda Director Toshihiro Mibe the two companies are at the beginning of their discussions and have not yet decided on who the businesses will be integrated But he said both companies offer a lot of strengths.

The industry as a whole may be facing challenges as sales in some sectors have slowed, as consumers push back on rising prices. Some companies that have invested heavily in electric vehicles have faced issues since consumers have not embraced EVs as expected.

On the heels of Big Lots’ announcement that it’s going out of business, Party City said it’s taking the same path, liquidating assets and closing all stores by the end of February.

In October 2023, Party City emerged from bankruptcy with a turnaround plan. But revenue fell far short of expectations and the company will close all 700 of its stores.

"The decision was made following exhaustive efforts by the company to find a path forward that would allow continued operations in an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors," the company said in a statement.

The company is using going out of business sales to reduce its inventory of party supplies. The Party City website reports everything has been marked down by 50%.

The company said the bankruptcy process helped it reduce its debt to $1 billion, but that in the current economic environment that was still too much. Like some dollar stores, Party City struggled to sell its largely discretionary goods to consumers struggling with inflation.

Party City’s fate mirrors that of Big Lots, and in some communities that’s brought home when both retailers have outlets in the same shopping center. In Green Bay, Wisc., both stores are currently present in the Green Bay Shopping Plaza. Fox 11 reports both stores were holding going-out-of-business sales over the weekend.

Zepbound is Eli Lilly’s weight loss drug. Now, it is also a drug to treat obstructive sleep apnea (OSA).

The U.S. Food and Drug Administration has approved Zepbound (tirzepatide) as the first drug treatment for adults with moderate to severe OSA who also have obesity. The FDA said the approval marks a significant advancement in the management of a condition that affects millions of individuals, particularly those struggling with obesity.

Dr. Sally Seymour, director of the Division of Pulmonology, Allergy, and Critical Care in the FDA’s Center for Drug Evaluation and Research, said the approval “is a major step forward for patients with obstructive sleep apnea.”

Obstructive sleep apnea is characterized by repeated interruptions in breathing during sleep due to the blockage of the upper airway. While continuous positive airway pressure (CPAP) devices have been the standard treatment, many patients find them uncomfortable or difficult to use consistently. 

A new approach to an old problem

The FDA said Zepbound offers a new pharmacological approach by activating receptors of hormones secreted from the intestine, specifically glucagon-like peptide-1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP), to reduce appetite and food intake, thereby promoting weight loss and improving OSA symptoms.

The FDA said its approval is based on the results of two pivotal randomized, double-blind, placebo-controlled studies involving 469 adults without type 2 diabetes. These studies demonstrated that participants receiving Zepbound experienced a significant reduction in the apnea-hypopnea index (AHI), a key measure of OSA severity, compared to those receiving a placebo. 

The studies also showed that a greater proportion of participants treated with Zepbound achieved remission or mild OSA, alongside significant weight loss.

Potential side effects

The FDA cautions that Zepbound is not without potential side effects. Common adverse reactions include gastrointestinal issues such as nausea, diarrhea, and abdominal discomfort, as well as injection site reactions and fatigue. 

More serious concerns include the risk of thyroid C-cell tumors, pancreatitis, gallbladder problems, and hypoglycemia, particularly when used with insulin or insulin-secreting medications. Consequently, Zepbound is contraindicated in patients with a personal or family history of medullary thyroid cancer or Multiple Endocrine Neoplasia syndrome type 2.

The FDA said patients considering Zepbound should engage in thorough discussions with their healthcare providers to weigh the benefits against potential risks, especially if they have pre-existing conditions such as kidney disease, diabetic retinopathy, or a history of depression or suicidal thoughts. 

Scammers register numerous fake domains ahead of the holiday season to trick shoppers.

There have been hundreds of suspicious domains registered in 2024 that target top brands and products, including iPhones, Prada clothing and Clinique beauty products, according to digital-risk firm BrandShield. 

"We’re seeing fraudsters across the globe continue to exploit the holiday season by targeting consumers, who are spending increasingly more on holiday gifts year after year," said Yoav Keren, CEO and co-founder of BrandShield.

"With the rise of AI-enabled threats, bad actors have even more sophisticated means of tricking shoppers into buying fakes and counterfeits, and in many cases, they’ll take their money and send nothing at all," he added. "Consumers must exercise caution to ensure they buy from legitimate sources."

Registrations of fake websites in October targeting iPhone shoppers were the highest with 606 domains, followed by 239 registrations for Prada, 215 for Hermes, 191 for sneaker brand Hoka and 159 for beauty brand Clinique, BrandShield said.

How to avoid fake shopping websites

BrandShield said there are some simple steps to avoid fake shopping websites:

• URL typos: If the website URL, or address, contains typos, such as “targett.com” or “eBaay.com”
• Spelling or grammar errors: If the website has spelling or grammatical errors throughout. Legitimate retailers and merchants will invest in ensuring that the website is free of errors such as these.
• Messages from third parties: If you receive a text or a private message through social media, email, text or instant messaging, offering a deal for a product that seems too good to be true, avoid clicking the links. Try finding the special offer directly at the website of the company you would like to buy from.
• Negative reviews: If a website or company has many negative reviews, it may be a scam. Also, look for fake positive reviews trying to balance out real warnings from scam victims, and err on the side of caution when purchasing from unknown sellers.
• No URL padlock: If a website does not have a padlock image to the left of its URL. That being said, many phishing websites now have padlocks next to the left of their URLs, so this doesn’t necessarily indicate that a website is safe.

Holiday travel plans may go awry if the federal government shuts down at midnight Friday, although most airline operations will continue more or less normally for at least a few days. 

Congress has until midnight Friday to agree on a funding plan after a bipartisan plan was abandoned when President-elect Trump and billionaire Elon Musk publicly opposed it. Negotiations are continuing but the outcome is increasingly in doubt. You can keep up to date with the latest developments here. 

"Essential" services will continue but if the shutdown drags on, the effects could spread and cause major economic dislocation, not to mention inconvenience for millions of consumers.

Federal employees and contractors will feel the effects immediately. Whether they are furloughed or required to continue working, most won't get paid until the shutdown ends and normal governmental operations resume. If that means two days of lost pay, it's one thing. But if the shutdown drags on, it can be a real hardship for millions of government workers and their families.

Members of the military could see delays in their paychecks and government contractors -- many employed in crucial intelligence, public safety and health roles -- might not be paid at all, depending on the terms of an eventual settlement. 

Federal employees are often described as "bureaucrats" but many are really little more than clerks, functionaries who do a specific task over and over. These people are not very well paid and many live from paycheck to paycheck. Past shutdowns have been hard on them and have sent many to breadlines and soup kitchens. 

National parks, museums and other public federal installations will close and many routine safety and health actions -- like food inspection -- will stop.  

Social Security and Medicare benefits continue as usual, as does the Postal Service. 

The U.S. Office of Personnel Management has published a shutdown guide for federal workers. 

A sordid history

A group of 10 Illinois car dealerships are facing a $20 million fine, the largest ever levied against a car dealer by the Federal Trade Commission. The money will be used to make refunds to customers.

The dealer group, doing business as Leader Automotive Group and their parent company, AutoCanada, operate the following dealerships:

• North City Honda;
• Crystal Lake Chrysler Dodge Jeep Ram;
• Hyundai of Lincolnwood;
• Kia of Lincolnwood;
• Bloomington Normal Auto Mall (Mercedes-Benz of Bloomington, Lincoln of Normal, Volkswagen of Bloomington Normal, Volvo Cars Normal, Subaru of Bloomington Normal, and Audi Bloomington Normal);
• Autohaus Motors (Mercedes-Benz of Peoria, Porsche Peoria, Volkswagen of Peoria, and Audi Peoria);
• Chevrolet of Palatine;
• Hyundai of Palatine;
• Toyota of Lincoln Park; and
• Toyota of Lincolnwood.

The fine follows a lawsuit by the FTC and state of Illinois.

In addition to paying $20 million, which will be used to refund harmed consumers, the proposed settlement also would require the companies to make clear disclosures of a car’s offering price—the actual price any consumer can pay to get the car, excluding only required government charges—and get consent from buyers for any charges. 

“Working closely with the Illinois Attorney General, we are holding these dealerships accountable for unlawfully extracting millions of dollars from consumers through a textbook bait-and-switch scheme, and bolstering their poor reputation with fake reviews,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. 

“This dealership network engaged in bait-and-switch tactics by luring consumers into their dealerships with lower prices only to either require consumers to purchase allegedly pre-installed add-on products or charge consumers for those products without their knowledge or permission,” said Illinois Attorney General Kwame Raoul. 

Junk fees, fake reviews, Canadian cars

The agencies' complaint alleges the defendants have deceived consumers about the price and availability of vehicles, charged them for expensive add-ons without consent, tacked on unwanted junk fees to purchases, posted fake reviews, and failed to disclose that U.S. customers were buying cars imported from Canada, along with other unlawful conduct.

Leader has frequently advertised new and used cars online with low prices designed to entice consumers into their dealerships, but those prices are often false, according to the complaint.

When consumers arrive at a Leader dealership, salespeople often tell them the car has preinstalled add-ons like protective coatings (often under the name Xzilon) and theft protection (under the name LoJack) that cost thousands of dollars, and that these add-ons are required despite not being included in the advertised price of the car.

According to the complaint, the add-ons have been wildly profitable for Leader, with dealerships at one point reporting more than 99% profit on them. Leader salespeople have been paid a commission for these add-on products, in many cases making more from the sale of the add-ons than the commission they are paid for selling the car itself.

A survey of Leader customers showed that nearly 80% of them were charged for at least one add-on without authorization or because they were falsely told the add-on was required. The unwanted add-ons also included items tacked on in the financing process like guaranteed asset protection (GAP) coverage and service contracts.

Add-on charges 

The complaint charges that, even after learning that the FTC was investigating, Leader kept tacking on add-on charges, resulting in consumers paying thousands more than the advertised price. Leader allegedly required the Xzilon add-on for all new and used cars they sold starting in 2021.

According to the complaint, Leader has also regularly failed to actually install or apply the add-on products for which they charged consumers without their consent.

Leader’s low-price advertising was designed to “get [customers] through the door,” according to a message from a company executive cited in the complaint. In many cases, however, Leader has advertised cars that have already been sold.

When consumers arrived at the dealership, they were directed to more expensive cars, often ones with junk fees and surprise “market adjustments” added to the price. The complaint cites another message Douvas sent to employees saying that once consumers get to the store, “they’re not leaving” without buying a car.

Leader has also regularly advertised cars as being “certified pre-owned,” and available at a specific price but then charged consumers hundreds or even thousands of dollars in additional “certification fees.”

In many cases, despite advertising the cars as being certified and charging consumers undisclosed fees for that certification, Leader has failed to actually do the certification work required by the manufacturer of the car, leaving consumers without the extended warranty that makes certified pre-owned cars attractive in the first place.

Even on non-certified used cars, Leader has charged exorbitant “reconditioning” fees, which one former sales manager described as “fake fees,” according to the complaint.

Canadian cars, bogus reviews

Leader also has sold cars in its U.S. dealerships that were manufactured for the Canadian market without disclosing that to consumers, according to the complaint. Even when done legally, importing these cars into the U.S. typically voids their manufacturer’s original warranty. Leader still deceptively advertised many of these cars as being covered by those warranties.

In addition, the complaint alleges that employees were required by management to post fake positive reviews about their dealerships on Google and other review sites.

Managers have threatened to withhold bonuses and other compensation from employees who don’t post fake reviews, and have paid employees bonuses for posting fake reviews, according to the complaint.

One email from a manager encouraging more reviews said: “Those of you with a low review score and low volume of reviews its [sic] an easy fix. If you have 10 employees and they have 5 family members or friends you can have 50 reviews right away.”

The complaint also alleges that dealerships have bullied and pressured consumers into posting five-star reviews, citing one instance in which a dealership refused to give a consumer the keys to a car she purchased until she posted a positive review.

Big Lots, Inc., a discount retailer, has announced a significant shift in its strategic plans as it no longer expects to finalize its previously announced asset purchase agreement with Nexus Capital Management. 

Despite this setback, the company is actively pursuing an alternative plan while also preparing to wind down operations at its remaining stores.

In a bid to safeguard the value of its estate, Big Lots said it will initiate going out of business (GOB) sales at all its remaining store locations in the coming days. This move, while drastic, is seen as a necessary step to protect the company's assets during this transitional period, the company said. The company remains optimistic that these sales will not hinder the possibility of securing a going concern transaction.

Bruce Thorn, CEO of Big Lots, expressed the company's commitment to finding a viable solution. 

"We all have worked extremely hard and have taken every step to complete a going concern sale,” said Bruce Thorn, CEO of Big Lots. “While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process." 

Struggles with inflation

Like many other discounters – other than Walmart – Big Lots has struggled as inflation began to take off in 2021. Its core customer base shifted spending from discretionary items to necessities. The company has been losing money each quarter since 2022.

In a July filing with the Securities and Exchange Commission (SEC), Big Lots showed a loss of $205 million for the 13 weeks that ended May 4. The company also said it expects there will be even more operating losses and it cited "substantial doubt" about its ability to continue as a going concern. It’s already closed more than 100 of its stores.

Despite the looming closures, Big Lots said it is continuing to serve its customers, both in-store and online. 

The U.S. Food and Drug Administration has warned veterinarians that an often-prescribed arthritis medication for dogs may be harmful.

In a cautionary letter, the agency said it had completed an evaluation of adverse events reported in dogs of various ages treated with Librela, an injected drug with the generic name bedinvetmab.

“The adverse events identified and analyzed include: ataxia, seizures, other neurologic signs, including but not limited to, paresis, recumbency, urinary incontinence; polyuria, and polydipsia,” the FDA said in the letter. 

It said that in some cases, death was reported as an outcome of these adverse events. 

The FDA approved Librela, a monoclonal antibody drug used for the control of pain associated with osteoarthritis in dogs, in 2023, and it was introduced to the marketplace later that year. 

Prior to approval, the FDA reviewed available studies and other data on Librela and determined Librela to be safe and effective for its intended use for control of pain associated with osteoarthritis in dogs. Librela is dosed by weight and labeled for subcutaneous injection once a month. 

The FDA advised veterinarians to report any adverse effects of the drug to Zoetis, the drug manufacturer.