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Consumer News & Alerts

September 4, 2007

FEAR OF FALLING KEEPS LIFE ALERT FLUSH
Life Alert is a California company that sells home medical alarms to senior citizens, using former U.S. Surgeon General C. Everett Koop as its frontman. Their prices are high, their contract terms tough, their sales tactics often criticized.

In 1993, California's attorney general sued Life Alert, accusing it of overcharging and taking advantage of America’s senior citizens. Fourteen years later, consumers say not much has changed, as Joe Enoch reports.

Our updated Life Alert report includes a list of other companies that offer home medical alarms. As far as we can determine, all are cheaper and our story includes interesting figures on the number of complaints we've received about Life Alert compared to the other companies.

ESCAPE FROM CELL PHONE PURGATORY
If you have to choose between trying to get out of a cellphone contract without paying a heavy termination fee or sitting through a timeshare sales pitch, most people actually have to think about it for a while. Wireless carriers take great care to ensure that you remain stuck in their particular limbo of bad service thanks to "early termination fees" that cost into the hundreds of dollars. Nevertheless, our David Wood bravely journeyed into the cell phone purgatory world and came back with a few tips to escape those contracts that won't break the law--or break your bank.

AT&T RAPPED OVER REBATE SCAMS
Rebates that never come through or are different than what was promised is another source of unending frustration for beleaguered cellphone customers. AT&T is facing a class-action suit in California for promising heavily discounted phones to customers, then sticking them with a heavily restricted Visa gift card once they're locked into the contract.

More Technology News...

• Canon, Casio, Fujifilm, Nikon Top J.D. Power Camera Study Study finds only average brand loyalty in point and shoot sector.

• Taiwan's Acer Buys Gateway, eMachines Deal creates a new No. 3 in the U.S. computer market.

US EXPORTS OF DANGEROUS TOYS ON THE RISE
The defective toys coming from China are making headlines, but the U.S. is hardly in a position to point fingers--American companies have notified the Consumer Product Safety Commission (CPSC) that they have exported dangerous products 97 times in 2006, up from 57 times in 2002. Worse, the CPSC is legally powerless to do anything but notify the destination countries that the products are coming, though noises are being made on Capitol Hill about changing the law.

KIDS HURT BY DEFECTIVE TOYS DOUBLED IN LAST FIVE YEARS
The CPSC's lack of teeth is also contributing to an increase of children injured by defective toy products. A study conducted by Kids In Danger found that burn-related injuries to children from products doubled between 2002 and 2007, more than the previous ten years. Companies as large as Hasbro Inc. are responsible for manufacturing more and more products with unsafe materials and design--and children are paying the price.

Recalls, Cancellations, and Glitches...

• Bagged Spinach Recalled after Salmonella Scare California company finds salmonella on one of its production lines.

• FDA Blocks Nutro Pet Food Shipment from Entering U.S. Products "appeared to contain poisonous substances and unsafe additives."

TOYOTA'S SECOND LOOK
Toyota has taken a careful look at the lithium-ion batteries GM and some other automakers are thinking of using in hybrids, and it does not like what it sees. Like what? Well, like laptops and cell phones exploding into flames, for starters. It's bad enough if you cell phone sets your pocket on fire or your laptop burns its way through the floor, but if your car erupts in flames ... well, ask Ford what that does for customer loyalty.

In other automotive news ...

• Gas Price Decline Slows, Supplies Scarce California enjoys the lowest prices of the summer.

• Subprime Mess Hits Car and Truck Sales As credit dries up, dealers see inventories growing.

• Hyundai Elantra Outpoints Competitors in Small Sedan Tests Mazdaspeed3 wins top sports car ranking in Consumer Reports testing.

More Recalls...

BUSH, BERNANKE PLEDGE TO STABILIZE MORTGAGE MELTDOWN
Both President Bush and Federal Reserve chairman Ben Bernanke promised to do more to stop the cascading mess of the mortgage market--Bush by offering a plan for select homeowners in trouble to refinance with loans from the Federal Housing Administration, and Bernanke hinting that the Fed might act more decisively to stem the bloodletting in the financial industry, while both men rejected calls for a wider bailout. But will these new plans do any real good, or are they too little, too late?

More Finance News...

• Home Prices Drop Sharply; Unsold Homes Increase Prices hit 20-year low; Nine months' worth of inventory sits unsold.

• Existing Home Sales Dip for Fifth Month Sales off in July, with biggest decline in the Midwest.

• Credit Crunch 'Bigger Threat Than Terrorism' Survey of economists finds rising fear of credit market collapse.

• Credit Card Defaults On The Rise
Defaults up 30 percent over last year at this time.

• Consumer Confidence At Lowest Point Since Katrina Stock market blues, eroding home values dampen consumers' optimism.

• Nationwide Cancels 39,000 More Homeowner Policies Insurers dumping policies in hurricane zones.

AMERICANS ARE GETTING FATTER...AND FATTER
Obesity in America continues to get worse, with 31 states experiencing an increase in citizens with increased waistlines, according to a new survey. Mississippi claimed the dubious honor of the "fattest state" for the third year in a row, with 30 percent of its citizens classified as obese. Colorado again claimed the honor of the leanest state, but even its statewide adult obesity rate is on the increase. Also increasing is American concern about the degrading state of our fitness--85 percent of respondents classified the country's obesity problem as an "epidemic."

More Health News...

• Study Finds Viagra Increases Release of 'Love Hormone' Impotence drugs may do more than increase blood flow to sexual organs.

• Zip Codes, Property Value, May Predict Obesity Rates Higher net worth may mean healthier diet, more time to exercise.

• Dunkin’ Donuts to Dump the Trans Fat Fast-food chains at last are getting the trans fats out of their recipes.

• Heavy Drinking Linked To High Blood Pressure In Older Men Moderate drinking may be beneficial but not heavy imbibing.

• Consumers Pay Hefty Price for Lightweight Snacks Premium price for air, packaging in 100-calorie packs.

• Hypnosis Reduces Pain and Costs in Breast Cancer Surgery Researchers found shorter recovery times, fewer side effects in hypnotized patients.

• Smoking Turns On Genes -- Permanently Researchers find permanent genetic effects in former smokers.

• Blurred Vision May Be First Symptom of Macular Degeneration Seniors should check with their eye specialist at first sign of AMD.

• Oral Health a Matter of Life and Death for Seniors Neglecting dental hygiene can have life-threatening consequences.

Still More Recalls ...

• WINDJAMMER BECALMED
Windjammer Barefoot Cruises has left many of its customers high and dry despite assurances it was on course to smoother sailing. In some instances, crews have walked off ships alleging they haven't been paid. Investors are also feeling seasick but that's a yarn for another day.

• TSA Stops ShoeScanner In Its Tracks $200,000 security scanner not yet up to speed.

SCAMS & OUTRAGES

• Florida Sues Internet Promoter over 'Free' Gifts Ads misled consumers into thinking they were getting something for nothing, state charges.

• Minnesota Sues to Shut Down Scam Charity Organization solicited donations of used cars but what happened next is in dispute.

• IRS Warns About New Email Scam Watch out for false claims of being under "investigation."

eBay Ignores Scam Victim Arkansas Attorney General intervenes, prevents loss of $9,500.

Guidant Settles Defibrillator Charges For $16.7 Million Thirty-six states sued company over wiring defects.

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