Consumer News & Alerts

March 3, 2008

By Martin H. Bosworth
ConsumerAffairs.com

FEDS WARN SOME FORD CARS AND TRUCKS CAN ERUPT IN FLAMES
ConsumerAffairs.com's automotive maven Joe Benton has been reporting for years on the phenomenon of Ford cars and trucks that suddenly burst into flames, even if the vehicle has been turned off and is sitting idle. Now the National Highway Traffic Safety Administration (NHTSA) is finally warning Ford, Lincoln, and Mercury owners to disconnect the faulty cruise control systems that cause the fires. Even as Joe reports on the latest cases of sudden car fires endangering drivers and destroying property, Ford continues to deny responsibility for the faulty parts.

More automotive news...

• Prius Ranked No. 1 Green Car, Miata 'Most Fun' Asians win most top rankings from Consumer Reports.

• Tax Credit for Honda Hybrids Dwindles Credit goes away entirely next year.

• Feds Probe Fire Hazard in Chrysler Pacifica More than 50,000 SUVs may be affected.

• Nissan Murano Leads SUV Safety Test Jeeps and Kia Sorento earn lowest ratings.

INFANT CRIB DEATHS ON THE RISE
A new report from the Consumer Product Safety Commission (CPSC) indicates that infant deaths in cribs or the nursery are on the rise, with 66,400 children seriously injured in 2006--the highest total in four years. While the nursery industry's lobbyists claim the blame for infant injury and death lies with the parents, safety advocates want manufacturers to own up to the problem and start designing safer cribs, bassinets, playpens, and toys for babies instead.

More product safety news...

• Tests Find Toxic Chemicals in Furniture Toxins found in most Americans; highest levels in children.

• Congress Hears Warnings about FDA 'Growing crisis' in food and drug safety, consumer and industry groups warn.

Recalls this week...

• Ford Recalls 400,000 Mustangs

• Majestic, Essex, Brighton/Sussex, Captiva Cribs

BLUE HIPPO PAYS $5 MILLION TO SETTLE FTC CHARGES
ConsumerAffairs.com's Joseph Enoch has been regularly chronicling the saga of BlueHippo, the alternative financing company that promised to sell computers to customers in exchange for regular monthly payments, but rarely delivered the merchandise as promised, and often forced consumers into binding arbitration contracts that prevented them from suing to get their money back. Now the Baltimore company has promised to pay up to $5 million to settle charges of violating consumer protection laws brought by the Federal Trade Commission (FTC). As Mark Huffman reports, the settlement may not help consumers in the short term, but in the long run, it could put BlueHippo on the endangered species list.

COMCAST PAYS GOONS TO BLOCK PUBLIC FROM FCC HEARING
In a scenario akin to something you'd see in a tinpot dictatorship, Comcast paid employees and others to fill up seats at an FCC hearing in Cambridge, Massachusetts--ironically convened to discuss the company's practices of blocking Internet content from its subscribers. The move blocked critics of the company from attending, leading net neutrality advocates to charge that if Comcast could not be trusted to play fair with a public hearing, how could they be expected to play fair with the Internet?

More scams and outrages...

• FTC Takes On Mortgage 'Rescue' Operations Agency sues two businesses for fraud, charges others with false claims.

• Big Banks, Telcos Top Identity Theft List Bank of America, Sprint, AT&T biggest source of complaints.

• Hit-Man Scam: Your Money or Your Life A virtual stick-up rattles recipients.

• Report: Feds Still Not Doing Enough To Secure Data Agencies have mixed record of security improvements.

• Doctors Took Kickbacks from Orthopedic-Device Makers Bribery scheme may be difficult to eliminate.

CONSUMER CONFIDENCE SINKS AS PRICES SKYROCKET
Wholesale prices surged a full percentage point in January, the biggest annual gain in more than 26 years, and prompted by rising costs in food and energy. As oil prices continue to rise as well, Mark Huffman reports that the spiking prices are causing a corresponding drop in consumer confidence. Leading economists claim that the price hikes may be good for consumers in the long run, but more pain in the short-term should be expected.

More economic and financial news...

• New Home Sales Sink In January Sales at lowest point since 1995.

• Senate Will Try To Override Veto Of Foreclosure Bill Bush says bill is a bail-out for speculators, lenders.

• Mortgage Applications Drop 20% in a Week Looming rate increases cause concern.

• FDIC Staffs Up to Handle Bank Failures Agency trying to rehire retired staff.

• Survey: Americans Believe Savings Are Adequate Optimism may be unfounded, experts fear.

BURGER KING LOSES ATTEMPT TO DISMISS TRANS FAT LAWSUIT Burger King suffered a "whopper" of a setback this week when it failed to get a lawsuit filed against it over its use of trans fats dismissed. The Center for Science in the Public Interest (CSPI) sued the fast-food chain for not joining its competitors in promising to phase out hydrogenated frying oils from its products. Burger King tried to get the case shifted from the District of Columbia courts to federal court, but the judge rejected their claim and sent the case back to D.C. for prosecution.

More health news...

• More Flu Shots for Kids CDC committee votes to expand age range despite risk of injury.

• FDA Approves Nexium for Children Acid reflux drug OK'd for patients 1-11.

• Study Raises Concerns About Anemia Drugs Increased risk of blood clots in the legs and lungs.

• Robotic Dog a Good Companion For Seniors? Nursing home study finds no difference between robots and real dogs.

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