Consumer News & Alerts   |   June 25, 2007

THE RAW TRUTH ABOUT FOOD
For thousands of years, humankind has eaten just about anything that would stave off starvation. Food was all around us but it often had to be chased down and killed, plucked from a vine or dug out of the ground. No one thought much about whether food was good for them. Rather, they worried they wouldn't have enough of it.

Things have changed. Nature is becoming something we read about and food has become an industrial product, on a par with iPods and Priuses. Rather than worrying about not having enough food, we worry about having too much -- or, at least, too much of the wrong kind.

All kinds of chemicals are added to replace natural nutrients removed by the packaging and preservation process today's food-like substances are subjected to. But not to worry -- there are plenty of dietary supplements out there that claim to be even healthier than anything nature ever dreamed up. Why, the FDA has just announced new rules to ensure that the supplements are safe and effective. What a concept.

Speaking of food ...

• SAMS Food Recalls Beef, Chicken Products Labels were switched on some packages. The company said its beef-based products contain wheat gluten and soy protein and those ingredients are not in its chicken-based products. The Washington Post initially reported the recalled goop was pet food but, no, it's intended for human consumption.

• China Pledges to Improve Food Safety Food safety will be brought up to international standards, China officials vow.

• Omega-3 Eggs Claims for "heart-healthy" eggs not all they're cracked up to be.

SHATTERING NEWS
For years, homeowners have spent summer days picking small bits of glass out of their fingers and toes, the remnants of their Martha Stewart glass-topped patio tables. No one has been willing to do much about it. The feds have looked the other way, Martha has had other things on her mind and Kmart, which sold the tables, has pointed at JRA Furniture, which imported the tables from Taiwan. Few consumers have gotten any kind of satisfaction from JRA, and they're less likely to do so now. The company has declared bankruptcy, just as a consumer class action lawsuit was inching forward in the courts.

Coincidence? “There’s no way to know for sure, but I think the facts speak for themselves,” said Richard Doherty, lead consumer counsel on the case.

PASSPORT SNAFU
Most efforts involving the federal government quickly become so bogged down in paperwork that nothing much ever happens, at least until the program is reorganized, resulting in even more paperwork. Such is the case with the feds' chaotic attempts to beef up the borders by requiring all travelers entering the U.S. to have a passport. This might sound simple but it has so far been about as effective as FEMA's response to Hurricane Katrina. The end result: disrupted vacations, slumping tourism.

Summer Turbulence Summer's off to a bad start for air travelers. Computer glitches, bad weather and plumbing problems have left thousands of travelers stranded, bumped and bothered.

GIVE WAL-MART CREDIT
Wal-Mart didn't get as big as it did by taking "no" for an answer. Blocked from opening its own bank, the retail giant has gone to Plan B. It will begin issuing prepaid Visa debit cards, called the MoneyCard. Customers without credit cards or checking accounts will be able to reload money into their account and use the card like a normal debit card.

Jane Thompson, president of Wal-Mart financial services, said many of Wal-Mart's customers don't qualify for checking accounts. “But they still need to pay their bills, cash their checks and transfer money," she said. "We’re offering them a safe place and a card to help them manage their money.”

The banking industry led the charge to deny Wal-Mart's entry into banking, claiming it would be bad for consumers. Of course, what they really meant was that it would be bad for banks. Everyone in Washington talks this way. If you're lobbying for the arsenic industry, you set up a supposed conservation group called Parents for Safe Water. This is what passes for being clever in the lobbying capital of the universe.

Congress Probes Delays in Enforcing Credit Report Law Getting a law through Congress can take eons. And that's just the beginning. Next thing you have to do is get somebody to pay attention to it. In the case of credit reports, Congress tried to do the right thing back in 2003 but it put so many agencies in charge that not much has happened.

Bankruptcy's Early Warning Signs As gas prices and mortage rates climb the stairway to heaven, consumers are sinking into ... well, never mind. Despite Congress' best attempts to protect the banking industry, bankruptcies are on the rise once again. A group of credit counselors has come up with a list of early warning signs intended to alert you to impending doom. Read it if you dare.

More financial news ...

• Supreme Court Deals Investors Another Setback Court overturns ruling that allowed a fraud suit to proceed against Tellabs, Inc. This is the second recent case in which the high court has told investors they're on their own.

• Cuomo Corrals More Student Lenders All six of the nation's largest student loan funders have agreed to New York's Code of Conduct, intended to root out hidden kickbacks and sweetheart deals between university financial advisors and student lenders.

• More ChoicePoint Identity Theft Victims Identified FTC: More victims may be eligible for reimbursement.

GAS PRICES DIP BELOW $3
Those little numerals spelling out $2.99 look good to many motorists, although the latest national average price for regular unleaded is still 16 cents above this time last year. Ever-optimistic consumers are hoping for an even bigger dip in September, when prices traditionally ease off a bit. Maybe it will happen this year. Time will tell.

Half a Day For all the fuss about hybrids, you'd think they were single-handedly saving the p***t. But a new federal report calculates that hybrids are currently saving about 5.5 million barrels of oil per year in the U.S. That's less than half a day's worth of oil per year. While more consumers are turning to hybrids, it will take a long time to show much progress at the current rate.

Of course, the quickest, cheapest and most effective way to save gas is to drive less. No one wants to hear that, though.

In other automotive developments ...

• Chrysler Dumps Its 2006 Inventory Chrysler, facing a huge inventory of unsold cars and trucks, has told its dealers to go ahead and sell left-over 2006 models as though they were used. It's an unusual tactic, but welcome news for bargain-hunting consumers.

• Mexican Truck Program Skewered A new poll finds that a majority of Americans oppose the program that lets Mexican-domiciled trucks into the U.S. Critics say there've been too many safety shortcuts along the way.

ELDER ABUSE: WHAT TO DO
Elder abuse and neglect isn't confined to nursing homes. Families, friends and caregivers frequently abuse elders. Abuse takes many forms -- physical and financial being the most common. Many of us may suspect abuse but hesitate to do anything. There's no longer an excuse for that: in his weekly report, Fred Cicetti, provides numbers you can call to report suspected abuse in your state.

More health news ...

• Scientists Raise Hopes For Alzheimer's Vaccine Proteins used to destroy bacteria and viruses may hold the key.

• FDA Approves First Drug To Treat Fibromyalgia No treatment until now for disorder characterized by pain, fatigue and sleep problems.

• FDA Approves Computerized Pill Box Electronic medication manager aims to reduce medication errors.

• More Women Than Men Having Mid-Life Stroke Reasons aren't clear but higher cholesterol and increasing waist size may be warning signs.

• More Toxins Found in Smokers' Children Study finds 5.5 times more toxins in their blood.

FINDING A BETTER NAIL-TRIMMER
Any pet owner will tell you it's torture trying to clip your dog or cat's nails. In her weekly column, Gina Spadafori reviews some of the new gadgets that are intended to make the job a little easier.

WHAT'S NEW

• Web Hosting Reviews Looking for someone to host your Website? It can be very difficult to find the right combination of bandwidth, reliability and price. Our new Web hosting reviews, provided by RealMetrics, will help you find the providers that fit your needs and your budget.

• ConsumerAffairs.TV We've added lots of new video reports to our ConsumerAffairs.TV site. Besides our own reporters, we have contributions from TV consumer reporters around the country. We'd like to have yours as well. If you have video clips that illustrate a consumer problems, we'd like to see them. If you'd like to display our videos on your site, that's fine too. Visit the ConsumerAffairs.TV home page to get started.

SCAMS & OUTRAGES

• Iraqi Dinar Scam Investors paid for foreign currency but got nothing, Illinois charges.

• Phony Insurance Checks Consumers pay "processing fee" to cash counterfeit check.

RECALLS

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