Consumer News & Alerts

November 10, 2008

By Martin H. Bosworth
ConsumerAffairs.Com

A NEW WORLD
The people in their wisdom have spoken and now it's up to Barack Obama to try to get the economy back on track. Reviving the moribund housing market is at the top of his list but as our Broderick Perkins notes, the majority of federal, state, and private rescue efforts have been focused on existing homeowners, rather than removing the barriers to ownership for new buyers -- stimulating sales, in other words. While rescuing homeowners and lenders who are in trouble is important, bringing new buyers into the market is also essential. Read more...

Upper-Income Taxpayers Seeking Shelter Democrats frequently complain that many lower-income Americans often vote against their own economic interest by voting for Republicans who run on a conservative social platform. But this year, pundits note many upper-income individuals did the same -- voted against their economic self-interest by supporting Obama and other Democrats who've pledged to raise taxes on the well-to-do. Now, as the time to pay the piper nears, financial advisors are outlining some tax-saving steps that should be taken quickly. Read more ...

Car Dealers On the Brink Obama has also stated that working with the ailing Big 3 automakers to avoid their financial collapse is one of his highest priorities. But beyond rescuing manufacturers, there's the problem of the car dealerships, which are failing by the hundreds. Truman Lewis takes a look at how tight credit and reduced financing are forcing many dealers out of business and shutting would-be buyers out of the market. Unlike troubled homeowners and the Big 3, car dealers don't automatically arouse sympathetic feelings among most consumers, but they're an essential link in the chain. Read more...

Monthly Job Cuts Hit Five-Year High
The miserable job market had more bad news to put in front of the next president, and the rest of the country, this week. Businesses announced plans to cut nearly 113,000 employees in October, a five-year-high. The announced job cuts came on top of reports that the economy had already shed 240,000 jobs in September, pushing the unemployment rate to 6.5 percent. If that wasn't enough, 100,000 people declared bankruptcy in October, a 40 percent increase from the previous year, indicating that Obama will definitely have his work cut out for him in the months to come. Read more...

More economic news...

• Circuit City Closing 155 Stores Last measure before possible bankruptcy, analysts say.

• For 401(k) Investors, Fewer Choices May Be Better Too many options can lead to overinvestment in stock.

• Business Economists See More Signs of Recession New survey tracks declining demand for goods and services.

GAS PRICES NEAR $2 NATIONWIDE
The silver lining in the generally dark cloud of the auto industry is that gas prices continue to drop at an accelerating rate, reaching levels not seen since before the Iraq War began. Mark Huffman reports that nationwide, a gallon of unleaded gas fell to an average of $2.314 by November 7. Many communities are reporting prices even below $2. Will a potential spike in oil costs push prices back up, or have we seen the last of $4 a gallon gasoline for the foreseeable future? Read more....

More automotive news...

• Time May Be Running Short for U.S. Carmakers GM, Chrysler execs beg for bailout money to avoid bankruptcy.

• Drivers Wanted: MINI Developing Electric Model NY/NJ, California to get first 500 Mini E cars.

• Charlotte Gas Stations Make Refunds to Consumers Attorney General slams stations for overcharging during Ike.

• Oil Snaps Back As Markets Sense Post-Election Bounce Signs of recovery may also lead to spike in gas prices.

• Feds Probe Yamaha Rhino ATV Thirty deaths, hundreds of lawsuits plague popular off-roader.

This week's recalls...

• Schwan's Stuffed Chickens
• Zeigler Wieners Recalled in South
• Claire's Yin Yang Necklaces
• Krylon 'Outdoor Spaces' UV Fabric Protector
• 'Mini-Televisor' Toys
• Xylophone Toys

OBAMA EYES CONSUMER ACTIVISTS TO FILL AGENCY POSTS
Automakers and the economy aren't the only priorities jockeying for attention from the new administration. Rumors are flying fast and furious about what priority Obama will place on neglected issues like food safety while making health care reformation and energy conservation major priorities of his administration. There's also a lot of speculation about who he may name as heads of the Food and Drug Administration (FDA) and Environmental Protection Agency (EPA). With both agencies having been reduced to rubber-stamps for industry over the last few decades, the potential for reformers to lead has tongues wagging. Read more...

More consumer protection news...

• No Magic Cures from Massaging Beds Washington State finds Ceragem's claims lumpy.

• Missouri Says "Do Not Call" Means Do Not Call Texas clothing donor to pay $75,000 for unwanted phone solicits.

• California Busts Foreclosure Scam Ring Fake "mortgage rescuers" wanted upfront fees for nonexistent services.

• Amazon.com Promises to Eliminate "Wrap Rage" Online retailer introduces "frustration-free" packaging.

• How to Tip During the Holidays Find ways to reward workers even in tough times.

• Rewards Programs Snare the Unwary "Free trial" programs can lead to unauthorized charges.

• New Jersey Sues Credit Repair Agencies Restraining order filed over deceptive practices and failed promises.

AIRLINES BEGIN SCUTTLING FEES TO LURE CUSTOMERS BACK
At the height of the gas crisis this year, airlines started slapping fees and surcharges on everything in sight to recoup profits lost from the high cost of fuel. Now, with the credit crisis keeping customers on the ground, the major carriers are slowly rolling back their extra fees in order to drum up business. Delta Airlines announced this week that it would remove the fuel surcharge fee for ticketholders using rewards programs in the U.S. and Canada, as part of its merger with Northwest. The next day, United Airlines announced it would not raise fees for a second checked bag from $25 to $50, and would offer a discount on the first checked bag through January 2009. Read more...

FCC VOTES TO OPEN "WHITE SPACES" FOR USE
The other big vote that took place on Election Day was the unanimous vote by the Federal Communications Commission (FCC) to open up unused television broadcast spectrum--nicknamed "white spaces"--for use by wireless devices. Technology companies and consumer advocates supported the move as a bolster to create competition in the wireless broadband Internet market, shaking up existing cable and telecom incumbents. While some Internet providers think the decision won't matter much without more practical application of technology behind it, Dell announced the next day that it would roll out laptops capable of using the white spaces for Internet access. Read more...

STATES STRONG-ARM CRAIGSLIST TO SQUELCH PROSTITUTES' ADS
A squadron of state Attorneys General and law enforcement agencies have coerced the popular online advertising site Craigslist to crack down on its "adult services" section, including mandating that prostitutes and sex workers pay for ads with a credit card and provide a working phone number, which the site would then turn over to police looking to track them down. Although existing law protects the owners of Web sites from being prosecuted for the content others post on them, state Attorneys General such as Connecticut's Richard Blumenthal said the decision was necessary to stem the tide of sex traffickers using the Internet to ply their wares. Read more...

More technology and Internet news...

• Hackers Using Obama Speech to Commit Fraud Fake email lures readers into downloading keylogger.

• Finding The Best Digital Camera Lower prices, more choices means more selective shopping.

• Yahoo, Google Drop Ad Deal Under Pressure From Feds Threat of lawsuit scuttles bargain between search giants.

• Consumer Watchdog Exposes Google Privacy Problems Nonprofit group finds data collection in Chrome Web browser.

• Researchers Claim Link Between Video Games and Violence Study tests kids in both America and Japan, finds higher aggression.

• Shop Safely When You Shop Online Keep records of everything and read the fine print.

• Ten Tips For Saving Money on Electronics Online retailers score big in new survey.

STUDY LINKS SEXUAL CONTENT ON TV TO TEEN PREGNANCY
Are racier, sexed-up television shows causing teenagers to have more sex--and get pregnant more often? That's the thesis of a new study from the RAND Corporation. According to study author Anita Chandra, television highlights sexual activity without pointing out the associated risks and responsibilities, including pregnancy and sexually transmitted disease. Chandra said the study highlighted the importance of portraying realistic sexual activity in media, and the need for greater parental and pediatric involvement in teaching teenagers about sex. Read more...

More health news...

• What Causes Gallstones? Painful digestive condition affects people across the board.

• Mayo Clinic Cautions On Non-Prescription Diet Pills Over-the-counter remedies are no quick fix for dieters.

• FDA Approves New Overactive Bladder Drug Toviaz to be offered in 4 or 8 mg doses.

• Many Pediatricians Want Better Training New doctors want more instruction in specialized areas of care.

NEW ROGUES

Every day we add hundreds of new consumer complaints and comments to our site. And each day sees a the addition of companies and products that haven't previously appeared in our Rogues Gallery. Here's the latest batch of newcomers:

• College Funding Center
• Credit Diagnosis
• John Casablancas Modeling
• College Network
• Just Military Loans
• Purifier4u
• Smart Lids
• Best American Travel
• Dermitage Anti-Aging System
• DieselSecret.com
• Navy Federal CU
• Spacetoys.com
• Acai Berry Products
• Antivirus 2008
• ATVDiscounters.com
• Greenpoint Mortgage
• Rhapsody.com
• Ambit
• Black & Decker Pest Control
• LG Cell Phones
• Simple.Net
• Simplemente Natural

We want to hear from you. If you've had a problem -- or a pleasant experience -- with a company, product or service, please let us know, using our secure complaint form.

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