Current Events in December 2024

The federal government is banning perchloroethylene (PCE or Perc), a chemical used in dry cleaning, adhesives, and industrial products, due to its link to cancer and other health risks.

While occasional exposure from wearing dry-cleaned clothes poses minimal risk to consumers, spills and leaks from dry cleaners can contaminate drinking water and air, posing greater risks for nearby residents.

“U.S. communities large and small have tap water with potentially harmful levels of TCE, and they may not be aware of this risk,” said Tasha Stoiber, Ph.D., senior scientist with the Environmental Working Group. 

“People can be exposed to this toxic solvent at home not just by drinking TCE-contaminated water but also by inhaling it when bathing and washing dishes. The EPA’s final rule will help to finally end most uses of this dangerous chemical,” added Stoiber.

The ban will phase out Perc in consumer and many commercial uses over the next 10 years. Some states and cities already restrict its use, and many dry cleaners have switched to safer alternatives. Workers in industries using Perc face the highest risks.

The EPA is also banning another harmful chemical, trichloroethylene (TCE), found in some cleaning products and linked to water contamination cases. Experts advise testing well water for such chemicals and using filters if needed.

For most people, occasional exposure to these chemicals is limited, and focusing on healthy habits like eating well and exercising is key to reducing overall health risks.

President-elect Donald Trump has chosen Andrew Ferguson, a Republican FTC commissioner, as the new chair of the Federal Trade Commission, replacing Lina Khan, who on Tuesday won a major victory when a federal judge blocked the Kroger-Albertsons merger.

Kahn took on numerous antitrust cases and, while Ferguson is not expected to be as aggressive, he is expected to continue targeting Big Tech monopolies. Cases against Google, Meta, Apple, and Amazon, initiated during Trump’s first term, are still ongoing.

Ferguson will likely face challenges balancing populist Republicans who support stricter antitrust enforcement with pro-business conservatives.

Trump praised Ferguson’s record of opposing Big Tech censorship and called him the most "America First" FTC chair in history. Ferguson, who joined the FTC in April, previously served as Virginia’s solicitor general.

As a commissioner, he has opposed some of Khan’s policies, such as banning non-compete clauses and simplifying subscription cancellations.

The FTC enforces competition laws and protects consumers, focusing on issues like digital privacy and deceptive practices. Under Biden, the agency took a tough stance on corporate power and Big Tech, which drew praise from progressives but criticism from business groups.

Amazon is a lot of things, from the nation’s largest online retailer to a technology company. Now, it’s also a Hyundai dealer.

The company has announced that people in 48 U.S. cities can go online to browse, order, finance, and schedule pickup of a new Hyundai vehicle from their local participating dealer without ever leaving the Amazon site. 

The new business line is called Amazon Autos, giving customers a simple way to purchase a new Hyundai. And it might not stop with Hyundais.

“We continue to add more Hyundai dealerships, and next year, we will roll out additional manufacturers, brands, cities, and new functionality,” Amazon said in a statement.

Using Amazon Auto, car buyers will be able to browse and search for available vehicles at their local dealer by make, model, trim, color, and features. They will also be able to get an instant valuation and trade in their existing vehicle toward the price of the new car.

Amazon says buyers will get transparent, upfront pricing and even be able to apply for financing, completing the purchase online and scheduling a pick-up time at the local dealer.

Why go through Amazon?

But most large car dealers have their own websites with most or all of those features. Why go through Amazon Autos?

“We’re partnering with dealers and brands to redesign car shopping—making it more transparent, convenient, and customer-friendly," said Fan Jin, global head of Amazon Autos. 

Jin said Amazon Autos, is enhancing simplicity and ease in the car-buying processing. At the same time, the company says it’s connecting dealers with Amazon’s customer base.

“We're excited to have Hyundai as our exclusive launch partner and look forward to welcoming more brands and expanding our selection to customers as the program grows,” Jin said.

Better cardiorespiratory fitness in older adults is linked to stronger cognitive abilities, even in those at higher risk for decline due to age or genetics, according to a study in the British Journal of Sports Medicine.

The research involved 648 healthy adults aged 65-80, measuring their aerobic fitness (VO2max) during treadmill tests and testing their cognitive abilities in areas like memory, processing speed, and executive function. The findings showed:

• Higher fitness levels were associated with better performance across all tested cognitive skills.
• This link held true regardless of age or the presence of the high-risk APOE4 gene.
• Women, those with less education, and participants taking beta-blockers showed stronger benefits in some cognitive areas.

The study suggests aerobic fitness might enhance cognitive health by improving blood flow, reducing stress, and supporting brain structure. Researchers emphasize the importance of aerobic exercise for preserving brain health in older adults.

In a bid to explain the associations found, the researchers suggest that aerobic fitness may improve cerebral blood flow, reduce oxidative stress, forge new synaptic connections, boost the growth of neurons, and enhance neurotransmitter systems, as well as changing the shape and structure of grey and white matter.

Surveys this year have consistently shown that “the cost of living” is a major pain point for consumers. A new report has highlighted the staggering hidden costs associated with bill payments that may be a major contributor to that pain.

According to the report from doxo, those hidden costs amount to $196 billion annually, or an average of $1,495 per household. This financial burden is a significant factor affecting consumer financial health, as U.S. households collectively spend over $4.46 trillion on household bills each year, with $3.35 trillion allocated to the ten most common recurring bills.

The complexity of managing these bills results in billions of dollars in avoidable expenses and substantial customer support costs. Doxo's 2024 Hidden Costs of Bill Pay Report highlights consumer concerns about identity fraud, late fees, overdraft charges, and negative credit impacts, quantifying the financial toll these issues take on the average U.S. household.

The report indicates that the current bill-pay market primarily caters to the needs of billers rather than consumers. Traditional bill payment processes require consumers to navigate each biller's policies, manage multiple logins, share payment information across platforms, and track individual due dates. 

This year's report shows an 18% increase in hidden costs compared to the previous year, which reported a $167 billion market impact and an average household cost of $1,268. Credit impacts saw the most significant increase, with average credit fees rising from $945 last year to $1,186 this year.

Breakdown of hidden costs

• Identity fraud costs: Households incur an average of $76 annually due to identity fraud, totaling $10 billion nationwide, up from $67 per household last year.

• Overdraft Fees: Consumers paid over $8 billion in overdraft fees, averaging $60 per household, a decrease from $75 per household last year.

• Late Fees: Late payments resulted in $23 billion in expenses, or $173 per household, slightly down from $181 per household last year.

• Credit Costs: Households can save $1,186 annually by improving credit scores, as staying current on bills is crucial for financial health.

"In today’s economic climate, it’s critical for American consumers to be aware of the hidden fees associated with their household bills,” said Liz Powell, senior director of INSIGHTS at doxo. 

The report also highlights consumer concerns, with 86% worried about stolen payment information and identity fraud, 85% about credit score impacts, 70% about late fees, and 59% about overdrafts. 

The Federal Trade Commission has stopped a scam that allegedly deceived student loan borrowers out of millions of dollars by pretending to work with the U.S. Department of Education.

The scheme, run by Nevada-based Superior Servicing, targeted consumers with false promises of loan consolidation, reduced payments, and debt forgiveness, the FTC said.

They collected illegal upfront fees of up to $899 and monthly payments, claiming these payments would go toward student loans. However, borrowers received little or no real help and were left deeper in debt.

The operators allegedly impersonated the Department of Education, advising borrowers to stop paying their actual loan servicers. They falsely claimed to take over loan servicing and promised loan forgiveness after years of payments, which never happened.

The FTC has frozen the defendants’ assets and is seeking to permanently stop their deceptive practices. The agency charged the defendants with violating rules against impersonation, deceptive practices, and illegal advance fees.

The Federal Trade Commission has prevailed in one of its biggest antitrust cases, with today's decision by a federal judge to block the Kroger-Albertsons merger.

“The FTC, along with our state partners, scored a major victory for the American people, successfully blocking Kroger’s acquisition of Albertsons," said FTC Bureau of Competition Director Henry Liu 

The $24.6 billion deal would have added nearly 2,000 stores to Kroger's roster and U.S. District Judge Adrienne Nelson agreed with the FTC that it would have removed too much competition from the marketplace. Nelson presided over a trial in Portland, Oregon, this summer.

“Evidence shows that defendants engage in substantial head-to-head competition and the proposed merger would remove that competition,” Nelson wrote in the ruling. 

"This historic win protects millions of Americans across the country from higher prices for essential groceries—from milk, to bread, to eggs—ultimately allowing consumers to keep more money in their pockets," the FTC's Liu said.

"This victory has a direct, tangible impact on the lives of millions of Americans who shop at Kroger or Albertsons-owned grocery stores for their everyday needs, whether that’s a Fry’s in Arizona, a Von’s in Southern California, or a Jewel-Osco in Illinois."

Necessary to compete

Kroger and Albertson had argued that the deal was crucial to their being able to compete effectively against Walmart and Amazon but Nelson bought the FTC's argument that the move was anticompetitive and would be harmful to consumers.

The decision follows a three-week trial in which the FTC argued that Kroger and Albertsons competed vigorously with each other and that they would have no incentive to do so if the merger went through.

The grocers argued that they have many other competitors and would have to be price-competitive with or without the merger.

Kroger is the biggest supermarket chain in the country, with about 9% of the market while Albertsons controls about 5%. They lag retail giant Walmart, and Costco is approaching Kroger's sales volume. 

The companies had agreed to sell off some 579 stores to other operators if the deal went through. If the companies now abandon their effort, as they have said they will, Kroger will have to pay Albertsons a $600 million breakjup fee. 

With many airlines working to make their offerings more attractive to consumers, JetBlue has other ideas. 

The airline announced it will be cutting a number of flight routes in 2025, including in and out of several major cities.  

“As part of our JetForward strategic plan, JetBlue is focused on building a network that best serves our customers and supports our long-term success,” the company said in a statement. 

“Recently, we made some network adjustments in certain markets, removing some underperforming flying from our schedule, allowing us to redeploy resources, including our popular Mint service, toward high-demand markets and new opportunities. In the coming weeks, we will announce how we will redeploy this capacity, including into our European network, providing even more travel options for our customers.” 

What can consumers expect in the new year? 

Here’s a look at the routes that are being cut in 2025: 

• Westchester, New York (HPN) – Charleston, South Carolina (CHS)

• Jacksonville, Florida (JAX) – Fort Lauderdale, Florida (FLL)

• New York (JFK) – Austin, Texas (AUS)

• New York (JFK) – Houston, Texas (IAH)

• New York (JFK) – Miami, Florida (MIA)

• New York (JFK) – Milwaukee, Wisconsin (MKE)

• San Jose, California (SJC) – All flights, to and from 

Some other changes include: 

• Mint Business Class seats will no longer be available on Seattle flights.

• The summer-only flight from JFK to London’s Gatwick airport will be canceled. 

• The second daily flight from JFK to Paris will be canceled. 

• The following flights will be soon only be available in the winter months:  

  • Boston, Massachusetts (BOS) – Phoenix, Arizona (PHX)

  • Boston, Massachusetts (BOS) – Grenada (GND)

  • New York (JFK) – Tulum, Mexico (TQO)

This decision comes as JetBlue is looking to eliminate flight routes that aren’t profitable for the company. The end of these routes will help continue to boost profitability and cut costs. 

These changes are expected to go into effect at the end of April 2025, and consumers are encouraged to explore the JetBlue website for new options for these soon-to-be canceled routes. 

TikTok is asking for a delay in the U.S. law that would force its China-based owner to sell the popular app or see it banned. The delay would give the Supreme Court a chance to review the law.

A pause will pose “no imminent threat to national security” or “material harm on the government,” according to the motion.

The government asked that the court quickly deny TikTok’s request.

The law was enacted by Congress because of fears that TikTok's Chinese ownership constituted a natioanal security threat. In its brief, TikTok argues that a brief delay would have no effect on national security.

Also, the brief notes that the ban is set to take effect on Jan. 19, one day before President-elect Trump is inaugurated, which it argues could “moot both the impending harms and the need for Supreme Court review.” 

Trump's stance on TikTok has evolved over time. In 2020, during his first term, he tried to ban the app due to national security concerns but in his recent campaign, he opposed a ban, noting TikTok's popularity among young voters. 

Trump has suggested that ByteDance could sell TikTok to a U.S. company to address the security concerns. He has also criticized other social media platforms, labeling Facebook as an "enemy of the people."

Appeals court OK'd the ban

A federal appeals court recently upheld a law requiring TikTok's parent company, ByteDance, to divest its U.S. operations by January 19, 2025, or face a nationwide ban. The court said the law does not violate free speech.

With over 170 million U.S. users, TikTok has become a vital platform for news, entertainment, and small businesses. TikTok claims a month-long shutdown could cost U.S. small businesses more than $1 billion and harm free expression on one of the country’s leading platforms.

After seven years of litigation, a federal district court has ordered the makers of dietary supplement Prevagen to stop making claims a lawsuit said were deceptive.

“Following seven years of hard-fought litigation, including a jury trial, we are pleased that the Court has ordered Quincy Bioscience to cease making claims about Prevagen that mislead Americans concerned about memory loss," said Samuel Levine, Director of the Federal Trade Commission’s Bureau of Consumer Protection.

"Companies should take note and remember that health claims need to be backed up by reliable scientific evidence."

The ruling came in a lawsuit filed by the Federal Trade Commission and the New York Attorney General challenging advertisements that claimed Prevagen had been "clinically shown" to improve memory.

The long-fought case is probably not over. Prevagen maker Quincy Bioscience is expected to appeal the issue, which was fought on two fronts and produced seemingly conflicting decisions. 

Some but not all ...

In February 2024, a New York jury ruled that many of Prevagen's claims were not supported by reliable evidence and that some, but not all, of its claims were "materially misleading."

But this week, a U.S. District Court judge in New York affirmed an earlier injunction banning further use of the disputed claims. 

Quincy Products welcomed the jury finding in March. "We are pleased that a federal jury in New York concluded today that the New York Attorney General failed to prove its deceptive advertising and labeling case against Quincy Bioscience's key advertising claims for Prevagen," Quincy said in a statement.

The company has not yet responded to ConsumerAffairs' request for a statement on the latest development. 

Ingredients include jellyfish

Prevagen's main ingredient is apoaequorin, the scientific name for jellyfish, which one scientist said "has no known role in human memory, or that many experts believe supplements like this would most likely be digested in the stomach and never wind up anywhere near the brain.

"If apoaequorin is so great, why aren't jellyfish smarter?" Harvard Health editor Robert H. Shmerling, MD, quipped in a recent post. 

Quincy has conducted an extensive national advertising campaign for Prevagen, including TV spots on national broadcast and cable networks such as CNN, Fox News, and NBC, featured charts depicting rapid and dramatic improvement in memory for users of the product.

In fact, the lawsuit alleged, the marketers relied on a study that failed to show that Prevagen works better than a placebo on any measure of cognitive function.

The federal court complaint alleged that the defendants enticed consumers to spend anywhere from $24 to $68 for bottles of 30 supplement pills by touting the product to improve memory and reduce memory problems associated with aging.

The complaint noted that the supplement is widely available at major retailers such as Amazon, CVS, the Vitamin Shoppe, and Walgreens, and is also sold directly on the defendants’ websites. Defendants’ product sales topped $165 million, according to the complaint.

“The marketing for Prevagen is a clear-cut fraud, from the label on the bottle to the ads airing across the country,” said then-New York Attorney General Eric Schneiderman when the suit was filed in 2017.

“It’s particularly unacceptable that this company has targeted vulnerable citizens like seniors in its advertising for a product that costs more than a week’s groceries, but provides none of the health benefits that it claims,” he said.

Connectivity problems are a big issue for car manufacturer apps used with internal combustion engine (ICE) vehicles, according to the J.D. Power 2024 U.S. OEM ICE App Report.

About 32% of owners reported app connectivity issues, up from 29% in 2023, and 61% said the app connects to their vehicle too slowly.

Quick response times are critical, with 73% of users expecting the app to respond within 10 seconds. Despite these challenges, 77% of owners still use their brand’s app at least occasionally, showing its importance in the car ownership experience.

“That’s why it’s beneficial for manufacturers to continue addressing performance gaps and ensuring competitiveness in the market,” said Violet Allmandinger, mobile apps lead at J.D. Power. “Automakers have made improvements in app features, improved response times and fixed connectivity gaps but, to improve customer satisfaction, they need to deliver core features that perform reliably.”

Key findings from the report include:

• High demand for security features: 83% of users want features like vehicle camera viewing and security alerts.
• Low interest in in-app marketplaces: 72% of users don’t want marketplace features included in apps.
• Vehicle status updates lag: While 92% of owners want timely updates on their car’s locks, windows, and doors, many apps don’t provide this reliably.
• Reasons for disengagement: Owners who stop using the apps cite lack of features (25%) and not needing the app (45%). Lower costs and better functionality could bring them back.
• Room for improvement: Users rated app navigation and speed as very important but were less satisfied with these aspects.

Top-rated apps include MyHyundai with Bluelink for mass market brands and Genesis Intelligent Assistant for premium brands.

The report, based on surveys of over 1,900 ICE vehicle owners, highlights the need for automakers to address app performance gaps and deliver reliable features that meet users’ needs. For more details, visit the J.D. Power website.

Many small business owners – including one-person LLCs – were surprised to learn recently that a newly-passed law, the Corporate Transparency Act, required them to file a report with the U.S. Financial Crimes Enforcement Network by the end of 2024.

Even more shocking were the consequences of not doing so. Under the law, owners could be fined thousands of dollars and face up to two years in prison.

Congress passed the law to give federal authorities the tools to crack down on terrorist activities and money laundering. But last week a federal court in Texas issued a temporary injunction, blocking enforcement of the law which the court said was probably unconstitutional.

In response, the Financial Crimes Enforcement Network said the filing of the form, known as the Beneficial Ownership Information report, is “voluntary” while the case is waiting to be heard.

“The Corporate Transparency Act plays a vital role in protecting the U.S. and international financial systems, as well as people across the country, from illicit finance threats like terrorist financing, drug trafficking, and money laundering,” the agency said on its website.  “The CTA levels the playing field for tens of millions of law-abiding small businesses across the United States and makes it harder for bad actors to exploit loopholes in order to gain an unfair advantage.”

Opposition

But Texas Attorney General Ken Paxton, who challenged the law, says the Constitution does not give Congress the power to unilaterally regulate the approximately 32.6 million organizations that have been granted formal corporate status by the states. 

“The so-called ‘Corporate Transparency Act’ was an unconstitutional attempt by the federal government to undermine States’ authority and crush small businesses under regulations, fines, and threats,” Paxton said after the injunction was granted. 

“I filed an amicus brief supporting Texas small business owners, and it’s a major victory for American entrepreneurs that the nationwide injunction will prevent this law from taking effect.” 

A court will rule on the constitutionality of the law in 2025. In the meantime, business owners who would like to “voluntarily” file the form can do so here.

Parents, family and friends shopping for children this holiday season are reminded that not all toys are the same. World Against Toys Causing Harm, Inc., or WATCH, says some be dangerous.

The group recently released its 52nd annual list of the “10 Worst Toys” for 2024, highlighting what it sees as the hidden dangers lurking in many toys marketed to children. This year's list may serve as a reminder for parents and caregivers to remain vigilant about toy safety, especially during the holiday season when toy purchases peak. 

WATCH said the annual list should serve as a practical tool for raising awareness about potential hazards in toys. It includes items such as the "Transformers Earthspark Cyber-Sleeve," which WATCH says  poses a risk of eye injuries, and the "Kinetic Sand Scents – Ice Cream Treats," which could lead to ingestion injuries. The "Wubble Rumblers Inflatable Furious Fist" is noted for potential blunt force injuries, while the "Click N’ Play Toy Remote Set" presents choking hazards.

Most dangerous toys

Here are the top 10 toys on WATCH’s dangerous toy list:

•   Pinovk: toy Colt 45 pistol: Potential for tragedy from realistic toy weaponry

•     Bristle hedgehog: Potential for ingestion injuries   

•     Transformers earthspark cyber-sleeve: Potential for eye injuries

•     Kinetic sand scents – ice cream treats: Potential for ingestion injuries

•     Wubble rumblers inflatable furious fist: Potential for blunt force and impact injuries

•     Click n’ play toy remote set: Potential for choking injuries

•     Snackles – sandy: Potential for suffocation injuries

•     X-shot     poppy playtime: Potential for eye injuries

•     Playzone-fit tri-flyer: Potential for impact injuries

•     Zoo jamz doggy xylophone: Potential for ingestion and choking injuries

According to the Consumer Product Safety Commission, an estimated 209,500 toy-related injuries occurred in the U.S. in 2022, with 29 reported deaths from toy-related incidents between 2020 and 2022. 

The group says that recalls, while important, are reactive measures that often occur after a toy has already caused harm. WATCH said it advocates for stricter safety standards and proactive measures to prevent injuries and fatalities.