Consumer News & Alerts

May 11, 2008

By Martin H. Bosworth
ConsumerAffairs.com

GATEWAY DRAGGED INTO BLUEHIPPO CLASS ACTION
The ongoing saga of computer layaway seller BlueHippo has a new wrinkle -- lawyers representing angry consumers who paid thousands of dollars for machines they never received plan to investigate deals BlueHippo made with PC makers such as Gateway. Gateway executives confirmed a past relationship with BlueHippo as a way to make a profit, but claimed that they were no longer in business together. David Marshall, lead counsel in the class action lawsuit against BlueHippo, said he would explore all of BlueHippo's partnerships to try to win back the money consumers lost.

The week's consumer protection news....

• Californians Fight Back Against 'Rescinded' Health Coverage Class actions against Blue Cross of California heat up.

• Phishing Scammers Get More Creative Coulee Dam scammers try to leave no trace of their activities.

• Facebook Agrees to Upgrade Safety Measures States pressure social site to increase protections for minors.

• Protections Increased for Air Travelers with Disabilities But travelers complain existing rules are often ignored.

• Herbal Patch Maker Ends 'Free Trials' Feds say patches weren't free and didn't work.

• Few Are Neutral in Net Neutrality Battles It's content providers vs. ISPs as Congress mulls legislation.

• Texas Charges Nexusmedia Deceived Web Users Screensaver software was bundled with spyware, state charges.

• Canadian Telemarketers Ordered to Pay $5 Million Consumers never received the goods they were promised.

HOW TO FIGHT RISING FOOD COSTS
Spikes in food prices are taking a big bite out of household budgets, leading many families to make serious changes in their lifestyles in order to continue to afford the basics. Lisa Wade McCormick reports that combinations of smart shopping, meal planning, and dollar stretching can help you put food on the table without having to break the bank.

More economic and financial news...

• Little Movement in Mortgage Rates This Week 30-year rate at 6.05%.

• Fed Chief Seeks Greater Effort To Stem Foreclosures Eroding housing market affects overall economy, he warns.

• Sen. Kerry Seeks Increase In Small Business Loans Feds need to do more for small businesses, he argues.

• Seniors Lose 51% of Buying Power Since 2000 Cost-of-living adjustments don't keep up with inflation.

• Confronting a 'Culture Of Debt' Consumers need education, incentives to save more.

GAS PRICES CUT INTO PRODUCTIVITY AT WORK
The ever-spiraling cost of gas isn't just biting into wallets and checkbooks -- it's cutting into workers' ability to do their jobs effectively. A study conducted by University of Florida professor Wayne Hochwarter found that employees at various occupations are so concerned about high gas prices and their financial futures that they were paying less attention to their jobs, with no end to the malaise in sight.

NADER PROTESTS FEDS' ROOF CRUSH PLAN
Consumer advocate and presidential candidate Ralph Nader led a protest last week against new standards for auto roof crushes that he claimed were still too inadequate to offer real protection for drivers. Joseph Enoch reports that Nader blamed President Bush, as well as the cozy relationship between the National Highway Traffic Safety Administration (NHTSA) and automakers, for weak American roof crush standards.

More automotive news...

• Regular Gas Moving Up, 33 Cents Shy of $4 Prices moving up briskly as short respite ends.

• Truckers Bemoan Burden of High Diesel Costs Higher transport costs get passed on to consumers, truckers warn.

• Rising Gas Prices Drive Search for Savings Scams abound, but so do some simple gas-saving measures.

• Ford Truck Suspected in North Texas House Fire Family ignored recall notice on their Ford Expedition.

• Treacherous Treads Still Taking Lives Firestone tires on a Ford Explorer can still be a lethal combination.

• Toyota Raises Prices, Prius Jumps $400 Company hopes to jack up profits in the U.S.

• Chrysler Offers Gas Subsidy to Unload Guzzlers Three years at $2.99 a gallon.

• VW Rabbit Tops Affordable Hatchback Tests Subaru Impreza, Toyota Matrix close behind.

This week's recalls...

• Gourmet Bouquet Recalls Fresh and Frozen Meat Products

• Munchkin Baby Bottle, Food Warmers

• Cardinal Health Alcohol-Free Mouthwash

• Honda TRX500 ATVs

• Fingerhut Master Craft Pressure Washers

• Chrysler Expands Jeep Stalling Recall

• Twister Hammerhead Dune Buggies

• Playworld Swing Sets

• Broil King Gas Grills

AMA WANTS STRONGER OVERSIGHT OF DRUG ADS
You can't turn on the television without being bombarded with flashy commercials hawking treatments for everything from acid reflux to erectile dysfunction. The American Medical Association claims that excessive advertising is driving patients to request drugs without proper understanding of their side effects, and that tighter oversight of drug advertising is needed to ensure consumers get the best benefit and the least harm.

BURSITIS: COMMON BUT TREATABLE
Bursitis, which can lead to soreness and stiffness in the joints, can affect everyone from manual laborers to desk jockeys, but especially the elderly. In this week's edition of the Healthy Geezer, Fred Cicceti takes a look at the all-too-common condition of bursitis, and recommends the best ways to prevent the problem from inhibiting your everyday life.

This week's health news...

• Dementia Linked To Obesity Study finds higher risk of dementia among the obese.

• Ortho-Evra Patch Should Be Withdrawn: Public Citizen Contraceptive patch said to expose women to dangerous estrogen levels.

• Drug Prices Can Vary Widely, Survey Finds Study finds Costco the cheapest, followed by AARP.com, Wal-Mart.

• Study Gives Whole New Meaning To 'Computer Virus' Toilet seats were cleaner than keyboards.

• Wal-Mart Adds More Generic Drugs To Discount Plan $10 for a 90-day supply of popular generic, OTC drugs.

• Gourmet Bouquet Recalls Fresh and Frozen Meat Products Second recall in recent months for the New York company.

• Illinois Wants 'Blow' Energy Drink Pulled High-caffeine drink glorifies drug culture, AG charges.

• Women Less Likely to Spot Heart Attack Warning Signs 'Classic' symptoms often aren't present in women.

• Daily Aspirin May Reduce Risk of Breast Cancer Large study finds reduction applies only to some types of breast cancer.

• FDA Finds Hazardous Levels of Chromium in 'Total Body Formula' Agency reports 200 confirmed cases of adverse reactions.

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