Current Events in January 2025

Food in the U.S. may soon show simpler nutrition labels in the front of packaging in an effort to get Americans to eat healthier food and tackle chronic disease.

The label focuses on three nutrients linked to poor health—saturated fat, sodium and added sugars—that would be immediately visible to shoppers and say if they are in "high, "medium" or "low" amounts, the U.S. Food and Drug Administration said Tuesday.

The label, which the FDA is calling a "Nutrition Info Box," is essentially a downsized version of the nutrition information found at the back of packaging, known as the "Nutrition Facts label."

"While many consumers use and benefit from the Nutrition Facts label, regular use of the label is lower among some segments of the population," the FDA said.

The FDA said it aims for the label to encourage Americans to make healthier eating choices.

It would follow 16 countries, including Germany, France and Spain, that already have front-of-package nutrition labeling.

"Diet-related chronic diseases in the United States are the leading causes of death and disability," the FDA said."Healthy eating patterns, which are, among other things, lower in saturated fat, sodium, and added sugars, are associated with improved health, such as reduced risk of cardiovascular disease, type 2 diabetes, and certain types of cancers."

The label would require companies to have the label within three years after the final rule's effective date, which hasn't been proposed, for businesses with $10 million or more in yearly food sales and four years for companies with less than $10 million in annual sales.

The FDA is now accepting comments on the proposal, which can be sent electronically through http://www.regulations.gov/ by May 16, 2025.

The label is an "an important step to make nutrition information clearer and more accessible," said Nancy Brown, chief executive of the American Heart Association.

"For decades, the Nutrition Facts label has been an essential tool to educate people across the country about the nutritional content of their food and drinks, but high rates of diet-related illnesses continue to show that additional actions are needed to address the confusion and barriers consumers face in evaluating and identifying better options," she said.

Capital One has been sued by the Consumer Financial Protection Bureau (CFPB) for allegedly "cheating" millions of customers out of more than $2 billion of interest payments on savings accounts.

When interest rates rose across the U.S., Capital One allegedly froze interest rates on its flagship "360 Savings" account, which promised one of the nation's "best" and "highest" interest rates, the financial regulator said Tuesday.

Around the same time, Capital One created a new savings account, "360 Performance Savings," that differed from the other account only in that it paid out more interest, including as much as more than 14 times the "360 Savings" account rate at one point in time, the CFPB said.

Capital One allegedly kept "360 Savings" customers in the dark about the better savings account when it waged a marketing campaign for the higher-yielding accounts, saving the bank more than $2 billion in interest rates it could've paid to those customers, the CFPB said.

The CFPB said the lawsuit aims to stop the conduct, which it calls unlawful, and seeks fines and money to pay back victims.

Capital One didn't immediately respond to ConsumerAffair's request for comment.

The Consumer Financial Protection Bureau (CFPB) has been issuing a spate of new regulations in advance of the inauguration of President-elect Trump. Now the American Bankers Association (ABA) has responded, with a letter urging Trump to pause all new regulations affecting banks and extend the deadlines for regulations that have already been finalized.

In the letter, they argue that this pause is needed to give the new administration's teams time to review and understand years of rules, guidance, and policies that they say have limited the ability of banks to respond to market changes.

“A new, commonsense approach to financial regulation is urgently needed, and that process can begin quickly by announcing an immediate regulatory pause and review,” the bankers said.

They also recommend that the Treasury Department conduct a comprehensive review of regulations under the Biden Administration, focusing on their impact on access to credit and capital markets.

CFPB actions have included:

• tougher scrutiny of overdraft and NSF fees;
• a medical debt rule that prohibits including medical debt in credit ratings;
• suing banks for fraud on Zelle;
• cracking down on student loan refinancing, servicing and debt collection; and
• closed a loophole that exempted overdraft loans from lending laws.

The banking associations argue that recent regulatory actions have hurt the ability of banks to provide credit and capital.

They contended that for the past several years, “the federal banking agencies, the Consumer Financial Protection Bureau (CFPB), and the capital markets regulators have pursued an aggressive and misguided regulatory agenda, upending longstanding, tested banking practices with questionable and unnecessary policy actions that undermine our members’ ability to provide capital and credit to Main Street.”

Pet owners now have a new online resource that can help them save money. 

GoodRx, a company known for offering consumers coupons and discounts on prescription drugs, has a new arm of its company specifically for pets – GoodRx for Pets. 

The new platform will allow pet owners to access deep discounts on some of the most popular pet medications, as well as simplify the process of getting prescriptions for your pets. 

"Pet owners have been using GoodRx for years to save on medications for their beloved pets for conditions like anxiety and seizures - to the tune of several million prescriptions per year,” said Aaron Crittenden, SVP of Rx Marketplace at GoodRx. 

“It's a pretty strong signal of value when people use your platform for something you haven't actively pursued. So, we decided to build a focused experience for pet owners with a broader range of medications, more savings, and easy access through both pharmacies and home delivery. We're excited about what GoodRx for Pets can do for American households over time."

Helping pet owners save money

The primary goal of GoodRx for Pets is to help pet owners save money on their pets’ medications. The company is offering significant discounts on medications for some of the most common conditions for dogs, cats, and other pets – allergies, pain, seizures, diabetes, anxiety, and more. 

Pet owners can skip going through their vet’s office and instead have the prescriptions filled at their local pharmacy or have them delivered to their doors. The vet’s office will have to supply its DEA number, which the pharmacy will need to fill the prescription. From there, the orders will be all set. 

If the medication is pet-specific and a traditional pharmacy doesn’t carry it, pet owners can still utilize GoodRx for Pets. With the help of the e-commerce platform Allivet, consumers can search for any medication on GoodRx for Pets and have it delivered. 

The site will also allow pet owners to do a side-by-side comparison of different medication prices to help consumers make the choice that best fits their budgets.  

Additionally, pet owners can find health and wellness resources for their animals through GoodRx for Pets. The collection of expert articles and videos is designed to help pet owners learn more about giving their pets the highest quality of care.

The Consumer Financial Protection Bureau (CFPB) released a new report showing differences in how likely homeowners with mortgages are to have flood insurance, based on location, income and assets.

It founds that homeowners in coastal areas were most likely to have flood insurance and generally had higher incomes and assets, making them better able to recover from floods. However, homeowners near inland rivers and streams were less likely to have flood insurance and had fewer resources to recover from floods.

The report looked at flood risks in the southeast and central southwest U.S., using data from FEMA and the First Street Foundation. It found that FEMA's flood maps mainly focus on coastal areas and may not fully capture flood risks in inland areas. This leaves many homes underinsured, especially in inland flood-prone areas.

Key findings include:

• Current flood maps may not accurately reflect future flood risks.
• Over 400,000 homes in certain U.S. regions may be underinsured for flooding.
• Homeowners in high-risk inland flood areas are more likely to have lower incomes and fewer financial resources to recover from floods.

The CFPB’s report highlights the need for better flood insurance coverage and financial resources for homeowners in flood-prone areas.

With home prices still rising in many areas of the U.S., affordable housing will remain one of the most pressing consumer and economic issues in 2025, especially if mortgage rates remain elevated.

There are fewer homes for sale, which has put upward pressure on prices. In November, the National Association of Realtors reported the median price of an existing home was $406,100, up 4.7% from one year ago.

Industry experts quizzed by ConsumerAffairs don’t expect much improvement for buyers in the months ahead.

“I think the housing situation will likely remain tight in 2025, especially in high-demand urban areas like Miami, New York, and San Francisco,” said Andy Saintilus, the founder of We Buy Doors, a real estate investment company in Miami. “While interest rates may stabilize and new construction efforts increase, the gap between supply and demand is substantial and will take time to resolve.”

Worse before it gets better

Jonathan Klemm, CEO of Chicago-based Quality Builders, thinks the market will get worse before it gets better, although some markets may offer exceptions.

“There are areas that offer more opportunities to buyers but these will not be your Tier 1 cities, Klemm , told ConsumerAffairs. “It will be in the Southeastern/Appalachian region like Huntsville, Ala, Northeast Tennesse, Northwest Arkansas, Louisville, Ky., and so on.”

“For buyers, some areas stand out as great opportunities,” said Michael Severns, of The Severns Group at Keller Williams Main Line in Philadelphia. “Harrisburg, Pa., for example, is fantastic for first-time homebuyers. It’s affordable, with a strong economy and promising growth. Rochester, N.Y., also offers reasonably priced homes and a solid local economy. In the South, places like Villas, Fla., combine affordability with a growing market. These areas have that perfect mix of value and opportunity.”

People will move to find an affordable house

During the pandemic, home prices surged in markets like Austin, Phoenix and Nashville because mortgage rates were low and remote work was common. Today, there is a growing gap between prices in those markets and smaller cities that didn’t see nearly as much price appreciation. 

Melanie French, the CEO of RR Living, a Dallas property management company, said that is likely to entice many people to move to those places, even if they have to look for a new job.

“In fact, it’s no longer just ‘a consideration’—it’s becoming the deciding factor,” French told us. “With rising prices and limited inventory, people are carefully weighing their housing options before making any moves. For many, relocating to areas where they can secure more affordable, spacious, and high-quality housing is a priority.”

Getting older brings with it a number of health risks, including dementia. Now, a new study shows that the risk of developing dementia after age 55 among Americans is significantly higher than previously estimated, with a lifetime risk now pegged at 42%. 

This statistic, more than double the figures reported in older studies, translates to an estimated 500,000 new dementia cases in 2025, potentially rising to one million annually by 2060. The study, published in Nature Medicine, highlights the profound impact of an aging U.S. population on the number of dementia cases.

Dementia, characterized by progressive declines in memory, concentration, and judgment, is increasingly linked not only to aging but also to genetic factors and lifestyle-related health issues such as hypertension, diabetes, obesity, poor diet, lack of exercise, and mental health challenges. The study attributes previous underestimations of dementia risk to unreliable documentation and underreporting, particularly among racial minority groups who are disproportionately affected.

The study was conducted by NYU Langone Health, in collaboration with Johns Hopkins University and other institutions. It draws on data from the Atherosclerosis Risk in Communities Neurocognitive Study (ARIC-NCS). 

Followed 16,000 participants since 1987

This long-term study has monitored the vascular health and cognitive function of nearly 16,000 participants since 1987, making it the longest-followed cohort of African Americans for cognition and heart health.

From 1987 to 2020, 3,252 participants in the ARIC-NCS were documented as having developed dementia, leading to the conclusion that the overall lifetime risk for middle-aged Americans is 42%.

Notably, the risk is higher for women (48%) compared to men (35%), attributed to women's longer life expectancy. The study also found elevated risks among Black adults and individuals carrying the APOE4 gene variant, a significant genetic risk factor for late-onset Alzheimer's disease.

"Our study results forecast a dramatic rise in the burden from dementia in the United States over the coming decades, with one in two Americans expected to experience cognitive difficulties after age 55," said Dr. Josef Coresh, the study's senior investigator and founding director of the Optimal Aging Institute at NYU Langone. 

New policies needed?

Coresh emphasized the need for health policies that address both heart disease prevention and cognitive decline, as well as strategies to manage the anticipated increase in dementia cases.

The study also underscores the importance of addressing racial inequities in healthcare, noting that while dementia rates among White individuals are expected to double, rates among Black individuals could triple over the next four decades. Coresh supports enhanced efforts in Black communities to improve education and nutrition, which have been shown to help prevent cognitive decline.

Additionally, the study highlights the link between hearing loss and dementia risk, with only a third of Americans with hearing loss using hearing aids. Coresh suggests increased monitoring and testing, along with potential government assistance programs to make hearing aids more accessible and affordable.

As the U.S. braces for a surge in dementia cases, the study calls for comprehensive health policies that not only mitigate the severity of dementia but also expand healthcare services for those affected. The researchers say their findings serve as a wake-up call for policymakers to prioritize strategies that support healthy aging and address the growing dementia burden.

Starbucks has taken another step back from its coffee house roots, where anyone could sit for hours in a comfortable chair, use the restroom and access the internet using store wi-fi. You can still do it, as long as you buy something.

The coffee retailer has reversed a 2018 policy that basically made its stores public gathering spaces. Before the end of the month, people will be required to make a purchase before using restrooms or hanging out.

The policy shift comes early in the tenure of new CEO Brian Niccol and is part of the company’s “Back to Starbucks” strategy. The company said requiring a purchase  in order to hang out was pushed by employees, who told management “there is a need to reset expectations for how our spaces should be used."

The change in policy was first reported by Investopedia, which cited a letter from Starbucks North America President Sara Trilling to store managers, telling them the policy change will take effect on Jan. 27.

The letter said the new rules, part of a “Starbucks code of conduct,” will be displayed in stores at that time.

The state of Texas has filed a lawsuit against Allstate and its subsidiary, Arity, accusing the defendants of unlawfully “collecting, using, and selling” data about the location and movement of Texans’ cell phones through secretly embedded software in mobile apps, such as Life360. 

Texas Attorney General Ken Paxton charged the information is being used by Allstate and other insurance companies to charge some customers higher premiums.

According to the lawsuit, Allstate, through its subsidiary data analytics company Arity, would pay app developers to incorporate its software to track consumers’ driving data. The complaint claims Allstate collected trillions of miles worth of location data from over 45 million consumers nationwide and used the data to create the “world’s largest driving behavior database.” 

When a consumer requested a quote or renewed their coverage, the suit claims Allstate and other insurers would use that consumer’s data to justify increasing their car insurance premium if it showed drivers covered more ground.

Paxton claims these actions violated the Texas Data Privacy and Security Act (“TDPSA”), which created heightened protections for Texans’ sensitive data, including but not limited to precise geolocation information. 

Clear notice and informed consent

The law specifically addresses privacy, requiring clear notice and informed consent regarding how a company will use consumers’ sensitive data. Paxton says Allstate never provided notice or obtained Texans’ consent to collect or sell their sensitive data. This is the first enforcement action ever filed by a State Attorney General to enforce a comprehensive data privacy law.

“Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software,” Paxton said. 

“The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law. Texans deserve better and we will hold all these companies accountable.”

This lawsuit follows Paxton’s lawsuit against General Motors and his ongoing investigations into several car manufacturers for secretly collecting and selling drivers’ highly detailed driving data.

It’s that time of year again: tax season. 

The Internal Revenue Service (IRS) announced that it will officially begin accepting 2024 tax returns on January 27, 2025. The deadline for filing taxes will be April 15, 2025. 

“This has been a historic period of improvement for the IRS, and people will see additional tools and features to help them with filing their taxes this tax season,” said IRS Commissioner Danny Werfel. 

“These taxpayer-focused improvements we’ve done so far are important, but they are just the beginning of what the IRS needs to do. More can be done with continued investment in the nation’s tax system.”

Changes to the filing system for this year

The IRS continues to update its filing system to make the process smoother and easier for consumers each year. Here are some updates taxpayers can expect this year: 

• Updated notices: This year, the IRS has plans to update and deploy 84 notices that go out to taxpayers. In addition to the redesign, the agency is planning to upload these notices to taxpayers’ online accounts to have access to both paper and digital versions of these forms. 

• Virtual assistants: The IRS is continuing to update its help features for taxpayers, including the addition of virtual assistants. These assistants will be available both online and on the phone, so any way that consumers want to contact the IRS, they’ll be able to quickly move through the help system. The assistants will be available in both English and Spanish, and the IRS hopes that this will help cut down on hold wait times on the phone, and make it easier and faster for taxpayers to get their questions answered. 

• IRS online accounts: The updated online accounts will allow taxpayers to do just about anything online – view, make, and cancel payments; view your latest tax return; receive and view IRS notices; sign tax forms; get account transcripts; and more. This year will also feature a banner that will highlight some of the most common scams throughout tax season. This tool will educate consumers on tax-related scams to help them avoid falling victim to such scams. 

• Mobile-adaptive tax forms: This update will make it easier for consumers to access tax forms on their mobile devices. Over 65 forms will be adaptive for mobile devices this year. 

• Direct File opens in 25 states: The IRS started rolling out the Direct File feature in 2024, with a limited number of states offering the option to taxpayers. Now, for 2025, there will be 25 states accepting Direct File starting on January 27, including: Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington State, Wisconsin, and Wyoming. The IRS is also expanding the scope of Direct File, allowing taxpayers who claim the following tax credits to utilize the feature: Child and Dependent Care Credit, Premium Tax Credit, Credit for the Elderly and Disabled, and Retirement Savings Contributions Credit. 

• Free File opens early: While the IRS won’t start officially accepting returns until January 27, taxpayers can log into their accounts and begin preparing their returns in IRS Free File. The system will allow users to get their returns ready ahead of time and be prepared to submit them on January 27. Free File is available in English and Spanish.  

The price of eggs is soaring again, mainly due to the latest outbreak of bird flu. The virus has infected flocks in all 50 states, resulting in the deaths of millions of chickens.

Egg prices have spiked to nearly $9 a dozen in California and some other states – a staggering 70% increase from the year before. The situation is so dire in California that some Bay Area grocery stores have imposed purchase limits on eggs. A Whole Foods in Palm Desert was out of eggs this weekend.

Restaurants that serve omelets and baked goods are struggling to survive as as the price for a case of eggs has shot up from $20 to as much as $150 in some areas.

“It’s f—king killing me,” Cara Haltiwanger, owner of Los Angeles-based breakfast sandwich spot Calabama, told SFGATE. “I’m an egg restaurant. I have to buy eggs no matter what, you know?”

According to the most recent Consumer Price Index, The average nationwide retail price of eggs in the U.S. has risen 38% since November 2023. However, much of the price surge has occurred in recent weeks.

However, prices monitored by Datasembly suggest the CPI significantly undercounts the price increase. According to Datasembly, the average price of eggs bottomed on Oct. 20, 2024. It has risen 40% since then. 

The graph below tracks egg prices using Datasembly’s price index. The egg price index was 152.1 on Oct. 20. It has since soared to 213.5.

According to Datasembly, these are the top five states wth the biggest three-month increase in egg prices:

1. California: 58%
2. Nevada: 56.3%
3. Oregon: 51.1%
4. Washington: 47.5%
5. Alaska: 37.8%

Can egg prices go even higher? In an interview with CNBC, Brian Moscogiuri, vice president of Eggs Unlimited, an egg supplier, said it’s possible egg prices could reach record highs before they start to come down.

Egg prices last spiked in the closing days of the COVID-19 pandemic and bird flu was again the main reason. Grade A egg prices reached a high of $4.82 a dozen in January 2023, rising from $1.93 in January 2022.

The U.S. Justice Department has sued Airbnb for housing discrimination after a host refused to rent an apartment to a mother with three school-age children.

The department filed the lawsuit in San Francisco, claiming Airbnb violated the Fair Housing Act. The issue began when a host, Jarrod Blake, told Charisse Ylitalo that the apartment was not suitable for children.

The complaint alleges that Airbnb allows hosts to mark properties as unsuitable for children, which is discriminatory. Airbnb says it does not support discrimination and prohibits such practices, but the government is seeking damages and an order to prevent further discrimination.

Ylitalo said she had been looking for a temporary rental while her family prepared to move to Hawaii, where he husband had a new job. The complaint says that Airbnb advised Yitalo that hosts are not obligated to accept children and advised to look somewhere else. 

She said she wound up renting a property an hour's drive away, which was a significant disruption in her life.

Even before the Santa Ana winds turned the Los Angeles wildfires into a raging inferno, the entire area was struggling with an insurance crisis. Because a number of insurance companies canceled policies or declined to offer coverage, many Los Angeles residents who lost homes were not covered by insurance.

The California Association of Realtors, which has been dealing with the issue for at least two years, expressed hope that policymakers are ready to address the issue.

"As Los Angeles reels from the devastating fires that have resulted in the loss of homes, businesses, schools, and neighborhoods, we are encouraged by the proactive measures taken by policymakers to tackle the homeowners insurance crisis,” the group said in a statement.

Specifically, the Realtors group said it has actively worked with state leaders since the beginning of the insurance crisis and is supporting Assembly Bill 226, authored by Assembly Insurance Committee Chair Lisa Calderon and Assemblymember David Alvarez.

The bill aims to alleviate uncertainty for FAIR Plan policyholders. CAR said it also supports Insurance Commissioner Ricardo Lara's moratorium on homeowner insurance policy cancellations.

"In addition, CAR continues to support the California Department of Insurance's 'Sustainable Insurance Strategy,' key pillars of which are now in place,” said CAR President Heather Ozur, a Palm Springs Realtor.

Removing barrier to access

“This approach aims to remove barriers to insurance access, particularly for those in higher-risk areas. As we now confront the significant aftermath of these fires, we will continue to work with government leaders on solutions to ensure that all homeowners have access to the homeowners insurance they need."

In December, California introduced new insurance regulations aimed at encouraging insurers to offer more policies in wildfire-prone areas.

Under these new rules, insurers will use advanced computer models, which take into account weather, geography, and other data, to set insurance rates, rather than relying solely on past losses.

The change comes in response to the impact of climate change on wildfires, which has made it difficult to find homeowners and renters insurance in some of the state's most populous areas. 

“With our changing climate we can no longer look to the past. We are being innovative and forward-looking to protect Californians’ access to insurance,” Insurance Commissioner Ricardo Lara said in a statement.

As the fires raged last week, Lara took action to protect Southern California homeowners by issuing a mandatory one-year moratorium on insurance non-renewals and cancellations. The Commissioner’s Bulletin shields those within the perimeters or adjoining ZIP Codes of the Palisades and Eaton fires in Los Angeles County for one year from the Governor’s January 7 emergency declaration regardless of whether they suffered a loss.