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Consumer News & Alerts

January 23, 2006

FORD'S WAY FORWARD
As Ford announces its "The Way Forward" turnaround program today, maybe it should turn around and take a look over its shoulder at the piles of Ford trucks abandoned at the side of the road, their engines ruined by a defect that causes the spark plug to shoot out of the cylinder head.

Consumers have been complaining about this problem for years but, as it did with the Windstar engines and the exploding Crown Vic fuel tanks, Ford has turned a deaf ear, refusing to help its customers and denying the defect exists. Ford even denies any knowledge of similar complaints, stretching credibility way beyond the breaking point.

Ford might want to consider that it has already lost the sedan market to the Japanese, its SUV business is running out of gas and it has never been a big player in minivans. In other words, pickup trucks are about all Ford has left. Alienating its loyal customers doesn't seem like the way forward, now does it?

There's no question a recall of all the affected engines would be a big investment, but would it pay bigger dividends than the slash-and-burn cost-cutting program Ford sees as the only way out of the dead end it's driven into?

Our Joe Benton details the sorry saga in this week's cover story, Ford Trucks Spit Spark Plugs.

The Real Competitors The battle for automotive dominance these days is between Toyota, Honda and Nissan. In one of the hottest contests, Honda's new Civic Hybrid will challenge Toyota's dominance in the hybrid market in 2006.

Lobbyist Gets Top Auto Safety Job Providing further evidence that it's a bad time to be a satirist, the White House has nominated the U.S. Transportation Department's lobbyist to be the nation's top auto safety regulator. This absurdity came to light just a few days after Ralph Nader said the auto safety agency had wandered so far off course that it was little more than a "consulting agency to Detroit."

HAPPY ENDING AT MOVIELAND?
Yes, Movieland is a wax museum in Southern California. It's also a Website that claims to offer a vast array of movies, music and other goodies, all available for cheap and legal download to your desktop. But is Movieland really Spywareland? Lots of consumers and privacy advocates think so. They charge that Movieland hounds its customers -- and even its non-customers -- with constant, annoying pop-ups demanding money. Movieland vehemently denies it. Who's right? Check out Martin Bosworth's story and write your own ending.

Illinois Sues Call Record Sellers As we reported last week, it's now possible to buy cell phone calling records on the Web. There's some quibbling about the legality of this practice but no debating that it endangers undercover police officers, battered spouses and others to whom privacy is more than a convenience. The practice initially came to light in Chicago and on Friday, Illinois Attorney General Lisa Madigan filed suit against some of the companies engaged in this seamy practice.

"Evil Twins" Haunt Hotspots Like to use your laptop while downing a latte at the local wireless hotspot? Look out! "Evil twins" are haunting public hotspots, putting your identity and security at risk.

LATEX, LATEX
Everywhere you look, and even where you don't look, prople are wearing latex gloves. OK, improves sanitation but it can be a real problem for those allergic to latex. Our Dr. Henry Fishman reports that new studies find even the slightest contact with latex can mean big trouble for those who harbor an allergy to it.

In other health news ...

• Winter Raises SIDS Risk The risk of sudden infant death rises sharply in winter. Babies should sleep on their backs, doctors advise. Oh, and also ... go easy on the blankets.

• SpongeBob Sued A group of parents and activists are suing Viacom and Kellogg, charging that they purposely target children with advertising for junk food.

• Canine Cancer Detectors Everybody knows dogs can sniff out bombs and drugs. Recent studies find they may also be able to detect lung and breast cancer without expensive, invasive tests.

• Head Lice Shampoo Linked To Leukemia French researchers warn parents about their findings.

A TAXING TIME
Tis in the cruel midwinter that the taxman comes to feed. It is a dangerous time for one and all, the rapacious revenue service on one side, tax preparers on the other. For its part, the IRS has learned to hide its fangs and put on a happy face, issuing perky reminders to one and all. This year it's chirping about "Free File," the agency "partnership" with private companies that have pledged to provide free electronic tax-filing service. This has caused no end of problems in past years, but perhaps this year will be different?

For those who mail their returns, the IRS has shuffled its offices and taxpayers in many states will be mailing their pound of flesh to a different address, so be sure to check carefully before dropping your return in the slot.

Then there's the big question: Is the IRS treating everyone equally? Last week, we reported that IRS has been wrongfully withholding returns from thousands of mostly low-income taxpayers suspected of fraud. Now comes news that the IRS has allegedly been easing up on its review of corporate taxpayers and stopped disclosing what is supposed to be public information about its activities.

In the Private Sector ... There's much to beware of when choosing a tax preparer. We have many consumer reviews from last year's tax season and there's a steady stream of prosecutions of shady tax services, including one in Texas most recently.

HOT DAYS IN DETROIT
The auto industry may be ailing but Detroit is riding high as it prepares for the Feb. 5 Super Bowl. Our sports-crazed travel editor, Dan Schlossberg, hosts a quick tour of the new Motown. Can't stand the cold? Palm Beach has a two-for-one promotion underway.

SCAMS & OUTRAGES

• Bogus Flu Products Supposed flu vaccine is phony, FDA warns.

• Inaccurate Credit Reporting Far West allegedly did not adequately verify information provided to mortgage lenders.

• Flood-Damaged Vehicles Flooded cars pouring out of Florida and the Gulf Coast region.

• Tawdry Talent Agency Teens were told they had been "selected" for lucrative modeling, acting roles.

• Phony Health Department Calls offering free medical services are most likely a scam.

• Phony Marines It's the latest variant on the Nigerian prince scam.

• Tooth-Whitener, Weight-Loss Patches Telemarketers violated do-not-call rules, among others.

• Fur Brokers Feds say traders conspired to make fur even pricier than normal.

RECALLS

• Syntace USA Recalls Bicycle Handlebar Stems They can break.
• Mizuno Gamer Baseball Gloves Recalled They may contain a mold that could cause illness in some individuals.
• Fisher-Price Musical Infant Chair A child's head can become trapped between the chair and attached table.

MEAN GIRLS
What happened to all these mean, cliquish high school girls? Our readers say that more than a few of them are working at Victoria's Secret.

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