Consumer News & Alerts   |   July 16, 2007

NEW WORLD ORDER: SWEATSHOPS R US
Americans are lately up in arms over the safety of imported products, but it cuts both ways -- the workers who produce the toys, clothes and household gear are in much more danger than the consumer who ultimately buys the products. Consumers may be stuck with shoddy goods that pose an occasional risk but workers' lives and health are endangered by inhumane working conditions.

Talking about product safety without considering the conditions under which products are manufactured is a conversation that goes nowhere, as Tom Glaister reports in this week's cover story, New World Order: Sweatshops R Us.

Safety Agency Mulls Tougher Rules for Imports Embarrassed by waves of dangerous toys and household goods from China and elsewhere, the Consumer Product Safety Commission (CPSC) is considering new regulations that may be presented to Congress as early as today. The proposed new regulations could yield broader import inspections and stiffer penalties. Then again, they could yield a lot of talk and not much action. Fact is, ultimate responsibility rests with the importers and distributors. No one is stopping them from ensuring their products are safe before they import them.

Pet Food Suit Gone but not forgotten are the dogs and cats who died from poisoned pet food. A lawsuit filed last week charges that a cat named Chuckles died after eating Menu Foods’ Pet Pride “Turkey and Giblets” and “Mixed Grill” cat food. What sets the suit apart from others is that it charges the pet food was contaminated with the painkiller acetaminophen, rather than the melamine that officials have identified as the cause of the poisonings.

Pet owners have encountered a lot of frustration in filing claims for the deaths of their pets. Jerri L. of Goodyear, Arizona, filed a claim with Nutro Products, hoping to recover the $700 in vet bills she incurred trying to save her 13-year-old Sheltie, Sandyboy. But the company denied the claim. Reason? Sandyboy died in May 2006 — ten months before Menu Foods recalled 60 million containers of melamine-tainted pet food. Jerri is convinced the Nutro pet food was the cause but Nutro and its insurance carrier aren't budging.

Other Pet Problems It's not just tainted food that's killing dogs. Consumers who buy puppies on the Internet are supporting "puppy mills" that sell sick, neglected, mistreated pets. The most humane way to get a pet is to adopt one from a pound or rescue organization.

THE BEAT GOES ON
June 15 was supposed to be "Black Sunday" for Internet radio -- the day that royalty rate increases were scheduled to go into effect, forcing Webcasters to pay sharply higher fees or go out of business. But an eleventh-hour agreement between music labels, traditional radio networks and Webcasters put off the scheduled implementation of the new royalty schedule, buying time for Congress to act.

In other telecommunications news ...

• Verizon Signs Florida Anti-Cramming Agreement The feds have done nothing to put a stop to cramming, the odious practice of putting unauthorized charges on consumers' phone bills. But Florida has staked out agreements with Verizon, AT&T and Embarq that offer protection to millions of consumers. Other states should do the same.

• AOL Pays $3 Million Once again AOL has promised to make it easier for customers to cancel and to straighten out its billing practices for add-on accounts. In a deal with 48 states and the District of Columbia, AOL also agreed to pay $3 million to the states. Reimbursement for consumers? 'Fraid not.

• Congress Questions AT&T/iPhone Pricing Not only must iPhone subscribers pay a stiff price for the phone, they also face a $175 early termination fee if they find the service isn't to their liking. Rep. Ed Markey (D-MA), who has never shown any interest in cleaning up the cramming mess that Congress created, is making hay over the iPhone issue.

• The Apple Spins Could it be? A Nano iPhone? Apple says no and, batting its lashes fetchingly, purports to have no idea how such a silly rumor got started.

• Sprint: Don't Call Us, We'll Call You Sprint has had it with customers who dare to call customer service too often. It has cut off thousands of customers for being a bother. Trouble is, some of those customers were trying to straighten out Sprint's screw-ups. We have a file bulging with more than 2,200 customer complaints. Maybe being canceled by Sprint will be the best thing to happen to those luckless souls.

GAS RISES, MILEAGE SINKS
Gas prices, which had subsided for a little while, are rising once again. Heavy summer driving and refinery problems are being blamed. A gallon of regular is once again over the $3 mark on average and likely to hit $3.07 by August, we're told. Meanwhile, the EPA has released its new mileage estimates for hundreds of vehicles, using a new formula that is supposed to be more realistic. Hybrids are hit hard by the new formula: the Toyota Prius' estimated fuel economy dropped from 60 mpg to 48 mpg for city driving.

There was a lot of gassing about the automotive future as industry executives ran their mouths at various events. Toyota brass said they see an all-hybrid world developing quickly. Ford execs spent part of the week pushing hydrogen power but then switched gears and started talking about plug-in hybrids. GM is planning to bring more of its Euro diesels to these shores, which is probably the best short-term solution to the fuel foolishness.

CONGRESS TARGETS POSTAL SERVICE TOBACCO-PUSHING
Most cigarette smokers become addicted as teens, so a lot of effort has gone into making it hard for teens to buy cigarettes but the U.S. Postal Service has frustrated these efforts for years. There are hundreds of Internet sites that will sell cigarettes to anyone of any age. FedEx, United Parcel Service and DHL long ago stopped delivering tobacco but the United States Postal Service has plodded merrily along, shipping tobacco to anyone who wants it. A New York Congressman introduced a bill that would outlaw the practice. Meanwhile, a study finds convenience stores are still a big part of the teen smoking problem.

In other health news ...

• FDA Approves New LASIK Device It sounds like it would make you dizzy -- the new device treats one eye to see far away objects and the other eye for close-up vision. The idea is that older folks won't have to wear reading glasses after having their orbs shaved, as many now do.

• FDA Approves Alzheimer’s Patch The new Exelon patch is expected to slow the progression of Alzheimer's with fewer side effects than pills.

• Cataract Surgery Is Nothing to Fear Cataracts are a common complication of aging; the surgery is simple and usually effective, the Healthy Geezer informs us.

AMERIQUEST PAYS UP
Forms are in the mail to consumers who were victimized by Ameriquest's unlawful mortgage lending practices. Ameriquest has agreed to pay $325 million. The average restitution payment is expected to be $812.15 but the amount could be larger depending upon how many customers choose to participate in the settlement. The action was filed against Ameriquest by attorneys general from D.C. and every state except Virginia, where Ameriquest did not conduct business. The settlement was agreed to last January.

• Consumers Bilked of $17.5 Billion in Overdraft Loans Consumers are being sliced and diced by high-cost, unsolicited loans to cover overdrafts that big banks and credit unions promote, according to a report by the Center for Responsible Lending (CRL). Fees often amount to more than the actual loan, the report found.

• Wal-Mart's Security Practices Questioned A California woman lost $1,400 in a check-cashing scheme that succeeded only because Wal-Mart didn't bother to check the ID of the person cashing the check.

• FBI Uses Data Brokers, "Risk Scores" To Hunt Terrorists Data mining raises risk that inaccurate information will find its way into individual profiles, privacy advocates warn.

BIG TICKET LUNCH
It's Just Lunch routinely charges its matchmaker clients $1,500 for the first year. But New York law limits dating service charges to $1,000 per year. So IJL came up with the cute idea of signing its New York clients to two six-month contracts of $750 each. New York was not amused and the company has agreed to pay a fine and clean up its act. The It’s Just Lunch contracts also violated state law by prohibiting consumers from filing lawsuits against the company.

In other stirring tales of human ingenuity ...

• Scammers Channeling Publishers Clearing House Our David Wood finds scam artists invoking the Consumer Affairs and PCH names to try to persuade "winners" they should pay $850 to collect their supposed sweepstakes prizes.

• “We Buy Homes” Scheme Supposed foreclosure "solution" actually made things worse, North Carolina charged.

• Locksmith Scam Rip-off artists posing as reputable locksmiths have been victimizing consumers coast-to-coast, says the BBB.

SOUTHWEST BUMPS ITS FARES
Airlines whooped with joy as price-leader Southwest raised its round-trip air fares as much as $20. For years Southwest has benefited from "hedge" deals it transacted years ago, locking in fuel at low prices. But those deals are expiring and the discount carrier now faces many of the same fuel-price problems as its competitors.

More travel notes ...

• Northwest Passengers Face Uncertain Summer The carrier, just out of bankruptcy, has cut its flight schedule in the midst of the busy summer season. A shortage of flight crews has been plaguing Northwest and its captive passengers.

• Feds Propose Changes in Airline Bumping Rule Penalties for bumping passengers could go up.

• No Surprises at B&B Inns, Survey Finds Fewer hidden charges than at hotels, industry study claims. More free goodies too. But some introverts complain of incessant socializing.

• Kennebunkport Recovers From Bush-Putin Summit The seaside town is once again a mecca for summer visitors, our Dan Schlossberg reports.

RECALLS

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